Document:

EXHIBIT
        10.31

       

      SHIPBUILDING
        CONTRACT

       

      OF

       

      ONE
        (1)
        176,000 DWT

      BULK
        CARRIER

      (HULL
        NO.
        H1074)

      PRELIMINARY
        NAME: TBN 1

       

      BETWEEN

       

      EPTAPROHI
        SHIPPING CORPORATION.

       

      AS
        BUYER

       

      AND

       

      JIANGSU
        RONGSHENG HEAVY INDUSTRIES GROUP CO., LTD.

       

      AS
        BUILDER

       

      
        
          
          

        

          
          

          

          

        

        
          
          

        

      

       

      
        	
                INDEX

              	 	
                PAGE

              
	 	 	 
	
                PREAMBLE

              	 	
                5

              
	 	 	 
	
                ARTICLE
                  I - DESCRIPTION AND CLASS

              	 	5
	 	 	 
	
                1.

              	
                Description:

              	 	
                5

              
	 	 	 	 
	
                2.

              	
                Class
                  and Rules:

              	 	
                6

              
	 	 	 	 
	
                3.

              	
                Principal
                  Particulars of the VESSEL:

              	 	
                7

              
	 	 	 	 
	
                4.

              	
                Subcontracting
                  Construction outside Builder’s Premise:

              	 	
                8

              
	 	 	 	 
	
                5.
                  

              	
                Registration:

              	 	
                8

              
	 	 	 	 
	
                ARTICLE
                  II - CONTRACT PRICE AND TERMS OF PAYMENT

              	 	
                10

              
	 	 	 
	
                1.

              	
                Contract
                  Price:

              	 	
                10

              
	 	 	 	 
	
                2.

              	
                Adjustment
                  of Contract Price:

              	 	
                10

              
	 	 	 	 
	
                3.

              	
                Currency:

              	 	
                10

              
	 	 	 	 
	
                4.

              	
                Terms
                  of Payment:

              	 	
                10

              
	 	 	 	 
	
                5.

              	
                Method
                  of Payment:

              	 	
                12

              
	 	 	 	 
	
                6.

              	
                Prepayment.

              	 	
                13

              
	 	 	 	 
	
                7.

              	
                Refunds:

              	 	
                13

              
	 	 	 	 
	
                8.

              	
                Security
                  for Payment of Instalments before Delivery:

              	 	
                14

              
	 	 	 	 
	
                ARTICLE
                  III - ADJUSTMENT OF CONTRACT PRICE

              	 	
                15

              
	 	 	 
	
                1.

              	
                Delivery:

              	 	
                15

              
	 	 	 	 
	
                2.

              	
                Speed:

              	 	
                16

              
	 	 	 	 
	
                3.

              	
                Fuel
                  Consumption:

              	 	
                17

              
	 	 	 	 
	
                4.

              	
                Deadweight:

              	 	
                17

              
	 	 	 	 
	
                5.

              	
                Effect
                  of Rescission:

              	 	
                18

              
	 	 	 	 
	
                6.

              	
                Method
                  of Settlement:

              	 	
                18

              
	 	 	 	 
	
                ARTICLE
                  IV - APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING
                  CONSTRUCTION

              	 	
                19

              
	 	 	 
	
                1.

              	
                Approval
                  of Plans and Drawings:

              	 	
                19

              
	 	 	 	 
	
                2.

              	
                Appointment
                  of the BUYER’s REPRESENTATIVE:

              	 	
                20

              
	 	 	 	 
	
                3.

              	
                Inspection
                  by REPRESENTATIVE:

              	 	
                20

              
	 	 	 	 
	
                4.

              	
                Facilities:

              	 	
                21

              
	 	 	 	 
	
                5.

              	
                Liability
                  of the BUILDER:

              	 	
                22

              
	 	 	 	 
	
                6.

              	
                Responsibility
                  of the BUYER:

              	 	
                22

              
	 	 	 	 
	
                7.
                  

              	
                Salaries
                  and Expenses:

              	 	
                23

              
	 	 	 	 
	
                ARTICLE
                  V - MODIFICATION

              	 	
                24

              
	 	 	 
	
                1.
                  

              	
                Modification
                  of Specifications:

              	 	
                24

              
	 	 	 	 
	
                2.

              	
                Change
                  in Class, etc.:

              	 	
                24

              
	 	 	 	 
	
                3.

              	
                Substitution
                  of Materials:

              	 	
                25

              
	 	 	 	 
	
                ARTICLE
                  VI - TRIALS AND ACCEPTANCE

              	 	
                26

              
	 	 	 
	
                1.

              	
                Notice:

              	 	
                26

              
	 	 	 	 
	
                2.

              	
                Weather
                  Condition: 

              	 	
                26

              
	 	 	 	 
	
                3.

              	
                How
                  Conducted: 

              	 	
                27

              
	 	 	 	 
	
                4.

              	
                Method
                  of Acceptance or Rejection:

              	 	
                27

              
	 	 	 	 
	
                5.

              	
                Effect
                  of Acceptance:

              	 	
                28

              

      

       

      
        
          
          

        

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                6.

              	
                Disposition
                  of Surplus Consumable Stores:

              	 	
                28

              
	 	 	 	 
	
                ARTICLE
                  VII - DELIVERY

              	 	
                29

              
	 	 	 
	
                1.
                  

              	
                Time
                  and Place:

              	 	
                29

              
	 	 	 	 
	
                2.

              	
                Notice:

              	 	
                29

              
	 	 	 	 
	
                3.

              	
                When
                  and How Effected:

              	 	
                29

              
	 	 	 	 
	
                4.

              	
                Documents
                  to be Delivered to the BUYER:

              	 	
                29

              
	 	 	 	 
	
                5.

              	
                Tender
                  of the VESSEL:

              	 	
                31

              
	 	 	 	 
	
                6.

              	
                Title
                  and Risk:

              	 	
                31

              
	 	 	 	 
	
                7.

              	
                Removal
                  of the VESSEL:

              	 	
                31

              
	 	 	 	 
	
                ARTICLE
                  VIII - DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE
                  MAJEURE)

              	 	
                32

              
	 	 	 
	
                1.

              	
                Causes
                  of Delay:

              	 	
                32

              
	 	 	 	 
	
                2.

              	
                Notice
                  of Delays:

              	 	
                32

              
	 	 	 	 
	
                3.

              	
                Definition
                  of Permissible Delays:

              	 	
                33

              
	 	 	 	 
	
                4.

              	
                Definition
                  of Non-Permissible Delays:

              	 	
                33

              
	 	 	 	 
	
                5.

              	
                Right
                  to Rescind for Excessive Delay:

              	 	
                33

              
	 	 	 	 
	
                ARTICLE
                  IX - WARRANTY OF QUALITY

              	 	
                34

              
	 	 	 
	
                1.

              	
                Guarantee
                  of Material, Workmanship:

              	 	
                34

              
	 	 	 	 
	
                2.

              	
                Notice
                  of Defects:

              	 	
                34

              
	 	 	 	 
	
                3.

              	
                Remedy
                  of Defects:

              	 	
                34

              
	 	 	 	 
	
                4.

              	
                Extent
                  of BUILDER’s Liability:.

              	 	
                37

              
	 	 	 	 
	
                ARTICLE
                  X - RESCISSION OF THE CONTRACT

              	 	
                39

              
	 	 	 
	
                1.

              	
                Notice:

              	 	
                39

              
	 	 	 	 
	
                2.

              	
                Refund
                  by the BUILDER:

              	 	
                39

              
	 	 	 	 
	
                3.

              	
                Discharge
                  of Obligations:

              	 	
                39

              
	 	 	 	 
	
                4.

              	
                Refundment
                  Guarantee:

              	 	
                40

              
	 	 	 	 
	
                ARTICLE
                  XI - BUYER’S DEFAULT

              	 	
                41

              
	 	 	 
	
                1.

              	
                Definition
                  of Default:

              	 	
                41

              
	 	 	 	 
	
                2.

              	
                Interest
                  and Charge:

              	 	
                41

              
	 	 	 	 
	
                3.

              	
                Effect
                  of Default:

              	 	
                42

              
	 	 	 	 
	
                
                  4.
                    

                

              	
                Sale
                  of the VESSEL:

              	 	
                42

              
	 	 	 	 
	
                ARTICLE
                  XII - INSURANCE

              	 	
                44

              
	 	 	 
	
                1.

              	
                Extent
                  of Insurance Coverage:

              	 	
                44

              
	 	 	 	 
	
                2.

              	
                Application
                  of Recovered Amount:

              	 	
                44

              
	 	 	 	 
	
                3.

              	
                Termination
                  of the BUILDER’s obligation to insure:

              	 	
                45

              
	 	 	 	 
	
                4.

              	
                Insurance
                  Confirmation:

              	 	
                45

              
	 	 	 	 
	
                ARTICLE
                  XIII - DISPUTES AND ARBITRATION

              	 	
                46

              
	 	 	 
	
                1.

              	
                Proceedings:
                  

              	 	
                46

              
	 	 	 	 
	
                2.

              	
                Notice
                  of Award: 

              	 	
                47

              
	 	 	 	 
	
                3.

              	
                Expenses:
                  

              	 	
                47

              
	 	 	 	 
	
                4.

              	
                Entry
                  in Court:

              	 	
                47

              
	 	 	 	 
	
                5.
                  

              	
                Alteration
                  of Delivery Time:

              	 	
                47

              
	 	 	 	 
	
                ARTICLE
                  XIV - RIGHTS OF ASSIGNMENT

              	 	
                48

              
	 	 	 
	
                1.

              	
                Assignment:

              	 	
                48

              
	 	 	 	 
	
                2.

              	
                Assignment
                  of Guarantee Claims:

              	 	
                48

              
	 	 	 	 
	
                ARTICLE
                  XV - TAXES AND DUTIES

              	 	
                49

              

      

       

      
        
          
          

        

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                Taxes
                  and Duties in the People’s Republic of China: 

              	 	
                49

              
	 	 	 
	
                ARTICLE
                  XVI - PATENTS, TRADEMARKS, COPYRIGHTS, ETC.

              	 	
                50

              
	 	 	 
	
                1.

              	
                Patents,
                  Trademarks and Copyrights:

              	 	
                50

              
	 	 	 	 
	
                2.

              	
                General
                  Plans, Specifications and Working Drawings:

              	 	
                50

              
	 	 	 	 
	
                ARTICLE
                  XVII - BUYER’s SUPPLIES

              	 	
                51

              
	 	 	 
	
                1.
                  

              	
                Responsibility
                  of the BUYER:

              	 	
                51

              
	 	 	 	 
	
                2.

              	
                Responsibility
                  of the BUILDER:

              	 	
                52

              
	 	 	 	 
	
                3.

              	
                Joint
                  Responsibility of the Parties hereto:

              	 	
                52

              
	 	 	 	 
	
                ARTICLE
                  XVIII - NOTICE AND CORRESPONDENCE

              	 	
                53

              
	 	 	 
	
                1.

              	
                Address:

              	 	
                53

              
	 	 	 	 
	
                2.

              	
                Language:

              	 	
                53

              
	 	 	 	 
	
                ARTICLE
                  XIX - EFFECTIVE DATE OF CONTRACT

              	 	
                54

              
	 	 	 
	
                ARTICLE
                  XX - INTERPRETATION

              	 	
                55

              
	 	 	 
	
                1.

              	
                Laws
                  Applicable:

              	 	
                55

              
	 	 	 	 
	
                2.

              	
                Discrepancies:
                  

              	 	
                55

              
	 	 	 	 
	
                3.

              	
                Entire
                  Agreement: 

              	 	
                55

              
	 	 	 	 
	
                ARTICLE
                  XXI - CONFIDENTIALITY

              	 	
                56

              
	 	 	 
	
                EXHIBIT
                  A

              	 	
                58

              
	 	 	 
	
                EXHIBIT
                  B

              	 	
                60

              
	 	 	 
	
                EXHIBIT
                  C

              	 	
                63

              

      

       

      END
        OF
        CONTRACT

       

      
        
          
          

        

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            of 63

          

          

        

        
          
          

        

      
       

      SHIPBUILDING
        CONTRACT

       

      FOR

      ONE
        (1) 176,000-DWT

      BULK
        CARRIER

       

      THIS
        CONTRACT, made on this 6th day of December 2006 by and between JIANGSU RONGSHENG
        HEAVY INDUSTRIES GROUP CO., LTD., a corporation organized and existing under
        the
        laws of the People’s Republic of China, having its business office at No. 882,
        Hong Qiao Road , Shanghai 200030, the People’s Republic of China (hereinafter
        called the “BUILDER”), the party of the first part, and EPTAPROHI SHIPPING
        CORPORATION, a corporation organized and existing under the laws of Liberia,
        having its principal office at 80 Broad street, Monrovia, Liberia (hereinafter
        called the “BUYER”), the party of the second part, them also being referred to
        individually as the “Party” or collectively as the “Parties”
hereinafter.

       

      WITNESSETH:

       

      IN
        CONSIDERATION OF the mutual covenants contained herein, the BUILDER agrees
        to
        build, launch, equip and complete at the BUILDER’s SHIPYARD, Rugao Jiangsu
        Province P.R.China(hereinafter called the “SHIPYARD”) and to sell and deliver to
        the BUYER after completion and successful trial one (1) 176,000 DWT Bulk
        Carrier
        (hereinafter called the “VESSEL”) as more fully described in Article I hereof
        and the relevant Exhibits hereto, to be registered under the flag of Malta
        and
        the BUYER agrees to purchase and take delivery of the aforesaid Vessel from
        the
        BUILDER at the SHIPYARD and to pay for the same in accordance with the terms
        and
        conditions hereinafter set forth.

       

      ARTICLE
        I - DESCRIPTION AND CLASS

       

      
        	1.	
                Description:

              

      

       

      The
        VESSEL shall be a 176,000 DWT Bulk Carrier, at scantling draft moulded of
        18.25
        meters of the class described below. The VESSEL shall have the BUILDER’s Hull
        No. H1074 and shall be constructed, equipped and completed in accordance
        with
        the following Specifications and Plans of the date hereof signed by the Parties
        hereto (hereinafter collectively called the “Specifications”), which are hereby
        incorporated into this Contract and made an integral part hereof.

       

      
        	 	
                (1)

              	
                Specification
                  for 176,000 DWT Bulk Carrier (Drawing No. SC4481-010-02SM(0000101B))
                  (For
                  avoidance of any doubt, this VESSEL technically does not comply
                  with IMO
                  Performance Standard for Protective Coatings for dedicated seawater
                  ballast tanks.)

              

      

       

      
        	 	
                (2)

              	
                General
                  Arrangement (Drawing No. 0000001)

              

      

       

      
        	 	
                (3)

              	
                Midship
                  Section (Drawing No. 0000002)

              

      

       

      
        
          
          

        

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            of 63

          

          

        

        
          
          

        

      
       

      
        	 	
                (4)

              	
                Makers
                  List for Equipment (Drawing No.
                  SC4481-010-05MX)

              

      

       

      
        	 	
                (5)
                  

              	
                Memo
                  (Ref. No.:
                  SC4481-010-02SM(0000101B)-M1)

              

      

       

      The
        details of such Specifications (1) thru (4) as set forth above shall be duly
        signed by each of the Parties to this Contract.

       

      
        	2.	
                Class
                  and Rules:

              

      

       

      The
        VESSEL, including its machinery and equipment, shall be designed and constructed
        in accordance with the rules and regulations of Det Norske Veritas (DNV)
        or
        Lloyd’s Register (LR)(hereinafter called the “Classification Society”) issued
        and having become effective up to and on the date of signing this Contract.
        The
        vessel is to be classed and registered according to the following notations
        or
        the equivalent LR notation:

       

      +1A1,
        Bulk carrier ESP, BC-A, Holds 2,4,6 and 8 may be empty, CSR, GRAB(25), ES(S),
        bis, BWM-E(s), E0, TMON, OPP-F.

       

      Upon
        delivery, the Vessel shall also comply with the rules, regulations and
        requirements of other regulatory bodies as specifically described in the
        Specifications, all the foregoing rules, regulations and requirements and
        amendments thereto including those of the Classification Society and other
        regulatory bodies (as specified in the Specifications) applicable to the
        Vessel
        shall be those which entered into force on or before the date of signing
        of this
        Contract. Decisions of the Classification Society as to compliance or
        non-compliance with their rules and regulations shall be final and binding
        upon
        the Parties hereto. Any amendments, variations or modifications to any of
        the
        above standards, rules or regulations in force and compulsively applicable
        to
        the vessel issued and having become effective up to and on the date of signing
        this Contract shall be complied with in addition to the above standards,
        rules
        and regulations.

       

      The
        Contract Price as set forth in Article III entitled Contract Price is based
        on
        the version and amendments of the rules and regulations which are in force
        up to
        and on the date of signing this Contract as fully described in the
        Specifications. It is stated hereto that the Contract Price as set forth
        in
        Article III does not include any cost involved by the upcoming new IMO
        performance standard for protective coatings for dedicated seawater ballast
        tanks in all types of ships, i.e. amendments for SOLAS regulations 11-1/3-2
        and
        XII/6.3.

       

      The
        BUILDER shall arrange with the Classification Society to assign a representative
        or representatives (hereinafter called the “Classification Surveyor”) to the
        BUILDER’s SHIPYARD for supervision of the construction of the
        VESSEL.

       

      All
        fees
        and charges incidental to the Classification Society and to comply with the
        compulsory rules, regulations and requirements of this Contract as described
        

       

      
        
          
          

        

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            of 63

          

          

        

        
          
          

        

      
       

      in
        the
        Specifications issued, in effect and applicable up to the date of signing
        this
        Contract as well as royalties, if any, payable on account of the construction
        of
        the VESSEL shall be for the account of the BUILDER, except as otherwise provided
        and agreed herein.

       

      Any
        change in VESSEL resulting from changes in the rules and regulations other
        than
        set forth above shall be mutually agreed between the Parties whether in respect
        of the Contract Price, delivery date, deadweight adjustments and others,
        in
        accordance with Article V - Modification, Changes and Extras, however, with
        the
        exception of any cost incurred as a result from changes in such rules and
        regulations compulsory to the construction of the VESSEL coming into force
        after
        January 31st, 2010 but before the Newly Planned Delivery Date in case of
        delay
        of the Delivery Date as defined in Article VII hereof, unless
        such
        delay is a Permissible Delay as defined in Paragraph 4 in Article VIII
        hereinafter.

       

      Decision
        of the Classification Society as to the compliance or noncompliance with
        the
        classification rules and regulations including those statutory rules and
        regulations which the Classification Society is authorized to act on behalf
        of
        the relevant authorities shall be final and binding upon the Parties
        hereto.

       

      
        	3.	
                Principal
                  Particulars of the
                  VESSEL:

              

      

       

      
        	
              	
                
                  (a)

                

              	
                Hull:

              

      

       

      
        	
                Length
                  overall

              	
                abt.

              	 	
                291.80
                  m

              
	
                Length
                  between perpendiculars 

              	 	 	
                282.20
                  m

              
	
                Breadth
                  moulded

              	 	 	
                45.00
                  m

              
	
                Depth
                  moulded

              	 	 	
                24.75
                  m

              
	
                Designed
                  draught moulded 

              	 	 	
                16.50
                  m

              
	
                Scantling
                  draught moulded 

              	 	 	
                18.25
                  m

              
	
                Deadweight
                  at scantling draft (summer
                  load line) in sea water of 1.025
                  specific gravity

              	 	 	
                
                  176,000
                    mt

                

              

      

      

      
        	 	
                (b)

              	
                Propelling
                  Machinery and Guaranteed Speed:

              

      

       

      The
        VESSEL shall be equipped, in accordance with the Specifications, with one
        (1)
        set of MAN B&W 6S70MC Mark VI type Main Engine manufactured in Korea under
        license in line with the Makers List for Equipment. The BUILDER guarantees
        that
        the trial speed, after correction, is to be not less than 15.1 knots at design
        draft (16.50m) at continuous output of main engine of 14,331KW at 86.2 rpm
        (85%
        MCR) with 15% sea margin on clean hull in deep sea water and under Beaufort
        wind
        force 4 (hereinafter called the “Guaranteed Speed”). The trial speed shall be
        corrected for the actual wind speeds and directions and shallow water effect
        at
        the time of the speed test runs. The correction method of the speed shall
        be as
        specified in the Specifications.

       

      
        
          
          

        

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            of 63

          

          

        

        
          
          

        

      
       

      
        	 	
                (c)

              	
                Guaranteed
                  Deadweight:

              

      

       

      The
        BUILDER guarantees that the VESSEL is to have a deadweight of not less than
        176,000 metric tons at scantling draft even keel of 18.25 meters in sea water
        of
        1.025 specific gravity.

       

      The
        term,
“Deadweight”, as used in this Contract, shall be as defined in the
        Specifications.

       

      The
        actual deadweight of the VESSEL expressed in metric tons shall be based on
        calculations made by the BUILDER and checked by the BUYER and the Classification
        Society, and all measurements necessary for such calculations shall be performed
        in the presence of the BUYER’s REPRESENTATIVE(s) or the party authorized by the
        BUYER and the Classification Society.

       

      Should
        there be any dispute between the BUILDER and the BUYER in such calculations
        and/or measurements, the decision of the Classification Society shall be
        final
        and binding on the Parties hereto.

       

      
        	 	
                (d)
                  

              	
                Guaranteed
                  Fuel Oil Consumption:

              

      

       

      The
        BUILDER guarantees that the fuel oil consumption of the Main Engine is not
        to
        exceed 169 grams/(kilowatt
        x
        hour) at
        MCR at
        shop trial based on diesel fuel oil having a lower calorific value of 10,200
        kilocalories per kilogram at ISO standard condition (hereinafter called the
        “Guaranteed Fuel Consumption”). The fuel oil consumption shall be calculated
        accordingly based on the conversion formula issued by B&W; all as per
        Specifications which in case of doubt shall prevail.

       

      
        	4.	
                Subcontracting
                  Construction outside Builder’s
                  Premise:

              

      

       

      The
        BUILDER
        may, at its sole responsibility, subcontract any part of the vessel to
        experienced subcontractors within China and may, at the BUILDER’s sole
        discretion, construct and assemble the blocks in such premise provided that
        the
        BUILDER shall remain fully responsible for such subcontracted work or
        construction in other premise, provided the substantial part of the vessel
        shall
        be constructed and completed in the BUILDER’s SHIPYARD.

       

      
        	5.	
                Registration:

              

      

       

      The
        VESSEL shall be
        registered by the BUYER at its own cost and expenses under the laws of Malta
        at
        the time of delivery and acceptance of the VESSEL hereunder.

       

      
        
          
          

        

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            of 63

          

          

        

        
          
          

        

      
       

      If
        any
        certificate is not applicable by Maltese authorities, the BUYER shall assist
        the
        BUILDER to obtain exemption of the said certificates in order to register
        the
        VESSEL under the flag of Malta.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        II - CONTRACT PRICE AND TERMS OF PAYMENT

       

      
        	1.	
                Contract
                  Price:

              

      

       

      The
        purchase price of the VESSEL is United States Dollars Eighty One Million
        only
        (US$81,000,000.-) net receivable by the BUILDER (hereinafter called the
“Contract Price”), which is exclusive of the BUYER’s Supplies as provided in
        Article XVII hereof, and shall be subject to upward or downward adjustment,
        if
        any, as hereinafter set forth in this Contract.

       

      The
        Contract Price also includes all costs and expenses for supplying all necessary
        drawings, certificates and ship’s model as stipulated in the Specifications,
        except those to be furnished by the BUYER in accordance with the
        Specifications.

       

      
        	2.	
                Adjustment
                  of Contract Price:

              

      

       

      Adjustment
        of the Contract Price, if any, in accordance with provisions of this Contract
        shall be made by way of addition to or subtraction from the instalment due
        and
        payable upon delivery of the VESSEL, or if this instalment or others will
        not
        suffice, from the respective instalment prior thereto, in the manner as
        hereinafter provided.

       

      
        	3.	
                Currency:

              

      

       

      Any
        and
        all payments by the BUYER to the BUILDER under this Contract shall be made
        in
        United States Dollars. All lifting charge, if any, incurred in respect of
        the
        payments made at other banks than the BUILDER’s nominated bank in the People’s
        Republic of China specified in Paragraph 5 of this Article shall be for the
        BUYER’s account.

       

      
        	4.	
                Terms
                  of Payment:

              

      

       

      The
        Contract Price including any adjustment thereof shall be paid by the BUYER
        to
        the BUILDER in five (5) instalments as follows:

       

      
        	
              	(a)	
                1st
                  Instalment:

              

      

       

      The
        sum
        of United States Dollars Sixteen Million Two Hundred Thousand Only
        (US$16,200,000.00) representing twenty percent (20%) of the Contract Price
        shall
        be paid by the BUYER within five (5) banking days after the BUYER’s receipt of
        the original Refund Guarantee for 1st instalments in the form set out in
        Exhibit
        A

       

      
        	 	
                (b)
                  

              	
                2nd
                  Instalment

              

      

       

      
        
          
          

        

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      The
        sum
        of United States Dollars Sixteen Million Sixteen Million Two Hundred Thousand
        Only (US$16,200,000.00) representing twenty percent (20%) of the Contract
        Price
        shall be paid by the BUYER within five (5) banking days after receipt by
        the
        BUYER of a Stage Certificate signed by the BUILDER, the BUYER’s REPRESENTATIVE
        and the Classification Society Surveyor in the form set out in Exhibit C
        hereto
        certifying that steel-cutting of the VESSEL has taken place but always provided
        that the 2nd
        Instalment shall not be payable earlier than fifteen (15) months prior to
        the
        Delivery Date and Buyer’s receipt of the original Refund Guarantee covering the
        refund of the second instalment’ in the form of hereto attached as Exhibit A
        whichever is later.

       

      
        	 	
                (c)

              	
                3rd
                  Instalment:

              

      

       

      The
        sum
        of United States Dollars Sixteen Million Sixteen Million Two Hundred Thousand
        Only (US$16,200,000.00) representing twenty percent (20%) of the Contract
        Price
        shall be paid within five (5) banking days after receipt by the BUYER of
        a Stage
        Certificate signed by the BUILDER, the BUYER’s REPRESENTATIVE and the
        Classification Society Surveyor in the form set out in Exhibit C hereto
        certifying that laying of the first block of the keel of the VESSEL has taken
        place always provided that this instalment shall not become due and payable
        earlier than tweleve (12) months before the Delivery Date and and Buyer’s
        receipt of the original Refund Guarantee covering the refund of the third
        instalment’ in the form of hereto attached as Exhibit A whichever is
        later.

       

      
        	 	
                (d)

              	
                4th
                  Instalment:

              

      

       

      The
        sum
        of United States Dollars Sixteen Million Two Hundred Thousand Only
        (US$16,200,000.00) representing twenty percent (20%) of the Contract Price
        shall
        be paid within five (5) banking days after receipt by the BUYER of a Stage
        Certificate signed by the BUILDER, the BUYER’s REPRESENTATIVE and the
        Classification Society Surveyor in the form set out in Exhibit C hereto
        certifying that launching of the VESSEL has taken place and Buyer’s receipt of
        the original Refund Guarantee covering the refund of the 4th
        instalment’ in the form of hereto attached as Exhibit A whichever is
        later.

       

      
        	 	
                (e)

              	
                5th
                  Instalment:

              

      

       

      The
        sum
        of United States Dollars Sixteen Million Sixteen Million Two Hundred Thousand
        Only (US$16,200,000.00) representing twenty percent (20%) of the Contract
        Price
        plus any increase or minus any decrease due to modification and/or adjustment
        of
        the Contract Price hereunder in accordance with the provisions of the relevant
        Articles hereof shall be paid upon delivery of the VESSEL. In accordance
        with
        the Contract and 

       

      
        
          
          

        

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      Specifications
        and acceptance by the BUYER and delivery by the BUILDER to the BUYER of the
        documents set out in Article VII

       

      The
        parties hereto shall use their best endeavours to agree on all adjustments
        of
        the Contract Price, if any, not later than three (3) banking days prior to
        the
        scheduled delivery date of the VESSEL.

       

      The
        date
        on which any of the above instalments falls to be paid under this Contract
        shall
        be referred to as the “Due
        Date”
in
        this
        Contract.

       

      
        	5.	
                Method
                  of Payment:

              

      

       

      
        	 	
                (a)

              	
                1st
                  Instalment:

              

      

       

      On
        or
        before the Due Date for payment of the 1st
        intallment, the BUYER shall remit the amount of this instalment by telegraphic
        transfer to the BANK nominated by the BUILDER at least five (5) banking days
        prior to the Due Date with U.S. Dollar Saving account (hereinafter called
        the
“BANK”)
        for
        the account of the BUILDER quoting the reference “Hull H1074

       

      
        	 	
                (b)

              	
                2nd
                  Instalment:

              

      

       

      The
        BUILDER shall by written notice by facsimile notify the BUYER at least seven
        (7)
        banking days prior to the scheduled steel-cutting date.

       

      On
        or
        before the Due Date for payment of the 2nd
        Instalment, the BUYER shall remit the amount of this instalment by telegraphic
        transfer to the BANK for the account of the BUILDER quoting the reference
“Hull
        H1074”.

       

      
        	 	
                (c)

              	
                3rd
                  Instalment:

              

      

       

      The
        BUILDER shall by written notice by facsimile notify the BUYER at least seven
        (7)
        banking days prior to the scheduled keel-laying date.

       

      On
        or
        before the Due Date for payment of the 3rd
        Instalment, the BUYER shall remit the amount of this instalment by telegraphic
        transfer to the BANK for the account of the BUILDER quoting the reference
“Hull
        H1074”.

       

      
        	 	
                (d)

              	
                4th
                  Instalment:

              

      

       

      The
        BUILDER shall by written notice by facsimile notify the BUYER at least seven
        (7)
        banking days prior to the scheduled launching date.

       

      On
        or
        before the Due Date for payment of the 4th
        Instalment, the BUYER shall remit the amount of this instalment by telegraphic
        transfer to the 

       

      
        
          
          

        

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      BANK
        for
        the account of the BUILDER quoting the reference “Hull H1074”.

       

      
        	 	
                (e)

              	
                5th
                  Instalment:

              

      

       

      The
        BUILDER shall by provide a detailed written notice to the BUYER by facsimile
        setting out any adjustment, of the Contract Price in accordance with the
        Contract not later than fourteen (14) banking days prior to the scheduled
        Delivery Date.

       

      The
        BUILDER shall by written notice by facsimile notify the BUYER seven (7) banking
        days prior to the scheduled delivery date.

       

      The
        BUYER
        shall, at least three (3) banking days prior to the scheduled delivery date
        of
        the VESSEL, remit by bank transfer the amount of the 5th
        Instalment as adjusted to the BANK, to be held for the account of the BUYER
        to
        be released to the BUILDER against presentation by the BUILDER to the BANK
        of a
        copy of the Protocol of Delivery and Acceptance of the VESSEL executed by
        the
        BUILDER and the BUYER as set forth in Paragraph 3 of Article VII hereof together
        with an invoice for the amount due for the 5th
        Instalment.

       

      For
        the
        purpose of this Contract, “banking
        day”
means
        any day excluding Saturday, Sunday and public holidays in New York, Beijing,
        Hong Kong, Piraeus and London.

       

      
        	6.	
                Prepayment:

              

      

       

      Prepayment
        of any instalment due on or before delivery of the VESSEL shall be subject
        to
        mutual agreement between the Parties hereto.

       

      
        	7.	
                Refunds:

              

      

       

      All
        payments made by the BUYER prior to the delivery of the VESSEL shall be in
        the
        nature of advance to the BUILDER, and in the event this Contract is rescinded
        and/or cancelled by the BUYER, all in accordance with the specific terms
        of this
        Contract or the law permitting such cancellation, the BUILDER shall refund
        to
        the BUYER in United States Dollars the full amount of all sums already paid
        by
        the BUYER to the BUILDER under this Contract, together with interest at the
        rate
        of eight per cent (8%) per annum from the respective payment date(s) to the
        date
        of remittance by telegraphic transfer of such refund to the account specified
        by
        the BUYER. If the BUILDER is required to refund to the BUYER the instalments
        paid by the BUYER to the BUILDER as provided in this Article, the BUILDER
        shall
        return to the BUYER all of the BUYER’s supplies as stipulated in Article V which
        were not incorporated in the VESSEL and pay to the BUYER an amount equal
        to the
        cost to the BUYER of those supplies that were incorporated to the
        VESSEL.

       

      
        
          
          

        

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      As
        security to the BUYER for the payment of the 1st,
        2nd,
        3rd
        and
        4th
        instalments paid prior to the delivery of the VESSEL, the BUILDER shall,
        within
        five (5) banking days prior to each installment, respectively provide the
        BUYER’s bank with an individual Refund Guarantee for each of the 1st,
        2nd,
        3rd
        and
        4th
        instalments to be issued by a reputable Chinese and/or international bank
        and/or
        international insurance company at the BUILDERS’s option acceptable to Buyers
        and Buyers bank (the “Refund Guarantor”), in the form and substance of Exhibit A
        with reasonable amendments, if any. All four Refund Guarantees must be
        registered with SAFE,

       

      
        	8.	
                Security
                  for Payment of Instalments before
                  Delivery:

              

      

       

      The
        BUYER
        shall, concurrently with the payment of 1st
        instalment of the Contract Price, deliver to the BUILDER an irrevocable and
        unconditional letter of guarantee (“Payment Guarantee”) issued by a bank to be
        nominated by BUYER (“Payment Guarantor”). Such Payment Guarantee issued by the
        Payment Guarantor in a form annexed hereto as Exhibit B, in favour of the
        BUILDER, shall guarantee the BUYER’s obligation for the payment of the
        2nd
        instalment of the Contract Price. All cost, fees and duties for such Payment
        Guarantee shall be borne by BUILDER. Such Payment Guarantee shall be acceptable
        to BUILDER and BUILDER’s bank.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        III - ADJUSTMENT OF CONTRACT PRICE

       

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

       

      
        	1.	
                Delivery:

              

      

       

      
        	 	
                (a)

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

              

      

       

      
        	 	
                (b)

              	
                If
                  the delivery of the VESSEL is delayed more than thirty (30) days
                  after the
                  Delivery Date, then, in such event, beginning at twelve o’clock midnight
                  of the thirtieth (30th) day after the Delivery Date, the Contract
                  Price
                  shall be reduced by deducting therefrom the sum of United States
                  Dollar
                  fifteen thousand only (US$15,000.-) per day from the thirtieth
                  (30th) day
                  till the date of actual delivery as set forth in Article VII
                  hereof.

              

      

       

      Unless
        the Parties hereto agree otherwise, the total reduction in the Contract Price
        shall be deducted from the Contract Price payable.

       

      
        	 	
                (c)

              	
                But
                  if the delay in delivery of the VESSEL should continue for a period
                  of one
                  hundred eighty (180) days from the thirty-first (31st) day after
                  the
                  Delivery Date, then, in such event, and after such period has expired,
                  the
                  BUYER may at its option rescind or cancel this Contract in accordance
                  with
                  the provisions of Article X hereof. The BUILDER may, at any time
                  after the
                  expiration of the aforementioned one hundred eighty (180) days
                  of delay in
                  delivery, if the BUYER has not served notice of rescission as provided
                  in
                  Article X hereof, demand in writing that the BUYER shall make an
                  election,
                  in which case the BUYER shall, within fifteen (15) days after such
                  demand
                  is received by the BUYER, notify the BUILDER of its intention either
                  to
                  rescind/cancel this Contract or to consent to the acceptance of
                  the VESSEL
                  at agreed reduction price and at agreed future date (the “Newly Planned
                  Delivery Date”); it being understood by the parties hereto that, if the
                  VESSEL is not delivered by such Newly Planned Delivery Date, the
                  BUYER
                  shall have the same right of rescission or cancellation upon the
                  same
                  terms and conditions as hereinabove
                  provided.

              

      

       

      
        	 	
                (d)

              	
                For
                  the purpose of this Article, the delivery of the VESSEL shall be
                  deemed to
                  be delayed when and if the VESSEL, after taking into full account
                  all
                  postponements of the Delivery Date by reason of Permissible Delays
                  as
                  defined in Article VIII, is not delivered by the date upon which
                  delivery
                  is required under the terms of this
                  Contract.

              

      

       

      
        
          
          

        

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                (f)
                  

              	
                In
                  the event that the BUILDER is unable to deliver the Vessel on the
                  Newly
                  Planned Delivery Date as declared, the VESSEL can, nevertheless,
                  be
                  delivered by the BUILDER at a date after such declared Newly Planned
                  Date.

              

      

       

      In
        such
        circumstances, and for the purpose of determining the liquidated damages
        and/or
        penalties to the BUYER (according to the provisions of Paragraph 1(b) of
        this
        Article) and the BUYER’s right to cancel or rescind this Contract (according to
        the provisions of Paragraph 1(c) of this Article), the Newly Planned Delivery
        Date declared by the BUILDER shall not be in any way treated or taken as
        having
        substituted the original Delivery Date as defined in Article VII. The BUYER’s
        aforesaid right for liquidated damages and/or penalties and/or to cancel
        or
        rescind this Contract shall be accrued, operated or exercised only to the
        extent
        as described in Paragraph 1(a), 1(b) and/or 1(c) of Article III. In whatever
        circumstances, the Delivery Date as defined in Article VII (not the Newly
        Planned Delivery Date as declared by the BUILDER) shall be used to regulate,
        as
        so described in Paragraph 1 (a), 1(b) and/or 1(c) of Article III, the BUYER’s
        right for liquidated damages and/or penalties and to rescind this Contract
        and
        the BUILDER’s liability to pay the aforesaid liquidated damages and/or penalties
        resulting from the delay in delivery of the VESSEL.

       

      
        	2.	
                Speed:

              

      

       

      
        	 	
                (a)

              	
                The
                  Contract Price shall not be affected or changed by reason of the
                  actual
                  speed, as determined by trial run, being less than three-tenths
                  (3/10) of
                  one (1) knot below the Guaranteed Speed of the VESSEL specified
                  and
                  required under Paragraph 3(b) of Article I of this Contract (hereinafter
                  called the Guaranteed Speed”).

              

      

       

      
        	 	
                (b)

              	
                However,
                  commencing with and including such deficiency of three-tenths (3/10)
                  of
                  one (1) knot in actual speed below the Guaranteed Speed of the
                  VESSEL, the
                  Contract Price shall be reduced as follows (but disregarding fractions
                  of
                  one-tenth (1/10) of a knot):

              

      

       

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

              	
                -

              	
                a
                  total sum of US$100,000.-

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

              	
                -

              	
                a
                  total sum of US$150,000.-

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

              	
                -

              	
                a
                  total sum of US$260,000.-

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

              	
                -

              	
                a
                  total sum of US$400,000.-

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

              	
                -

              	
                a
                  total sum of US$550,000.-

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

              	
                -

              	
                a
                  total sum of US$700,000.-

              

      

      

      
        	 	
                (c)
                  

              	
                If
                  the deficiency in actual speed of the VESSEL upon trial run is
                  more than
                  nine-tenths (9/10) of a knot below the Guaranteed Speed of the
                  VESSEL,
                  then the BUYER may, at its option, reject the VESSEL and rescind
                  this
                  Contract in accordance with the provisions of Article X
                  

              

      

       

      
        
          
          

        

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      hereof,
        or may accept the VESSEL at a reduction in the Contract Price as above provided,
        that is, at a total reduction of United States Dollars seven hundred thousand
        only (U.S.$700,000.-).

       

      
        	3.	
                Fuel
                  Consumption:

              

      

       

      
        	 	
                (a)

              	
                The
                  Contract Price shall not be affected or changed by reason of the
                  fuel
                  consumption of the Main Engine, as determined by shop trial as
                  per the
                  Specifications, being more than the Guaranteed Fuel Consumption
                  of the
                  Main Engine of 169 grams/(Akilowatt
                  x hour) at
                  MCR specified and required under Paragraph 3(d) of Article I of
                  this
                  Contract, if such excess is not more than five percent (5%) over
                  the
                  Guaranteed Fuel Consumption.

              

      

       

      
        	 	
                (b)

              	
                However,
                  commencing with and including an excess of five percent (5%) in
                  the actual
                  fuel consumption over the Guaranteed Fuel Consumption of the Main
                  Engine,
                  the Contract Price shall be reduced by the sum of United States
                  Dollars
                  (US$100,000.-) for each full one percent (1%) increase in fuel
                  consumption
                  above said five percent (5%) (fractions of one percent (1%) to
                  be
                  prorated), up to a maximum of eight percent (8%) over the Guaranteed
                  Fuel
                  Consumption of the Main Engine.

              

      

       

      
        	 	
                (c)
                  

              	
                If
                  such actual fuel consumption exceeds eight percent (8%) of the
                  Guaranteed
                  Fuel Consumption of the Main Engine, the BUYER may, at its option,
                  reject
                  the VESSEL and rescind this Contract in accordance with the provisions
                  of
                  Article X hereof, or may accept the VESSEL at a reduction in the
                  Contract
                  Price as above specified for eight percent (8%) only, that is,
                  at a total
                  reduction of United States Dollars three hundred thousand
                  (US$300,000.-).

              

      

       

      
        	4.	
                Deadweight:

              

      

       

      
        	 	
                (a)
                  

              	
                The
                  Contract Price shall not be affected or changed by reason of the
                  actual
                  deadweight tonnage determined as provided for in the Specifications
                  being
                  below the deadweight tonnage specified and required under Paragraph
                  3(c)
                  of Article I of this Contract (hereinafter called the “Guaranteed
                  Deadweight”), if such deficiency in the actual deadweight tonnage is not
                  more than one thousand (1,000) metric
                  tons.

              

      

       

      
        	 	
                (b)

              	
                In
                  the event that the actual deadweight of the VESSEL as determined
                  in
                  accordance with the Specifications is less than the guaranteed
                  deadweight
                  of the VESSEL, the Contract Price shall be reduced by the sum of
                  United
                  States Dollars one thousand (US$1,000.-) for each full metric ton
                  of such
                  deficiency being more than one thousand (1,000) metric tons, up
                  to a
                  maximum reduction of United States Dollars one million five hundred
                  (U.S.$1,500,000.-) but disregarding fractions of one (1) metric
                  ton.

              

      

       

      
        	 	
                (c)

              	
                In
                  the event of such deficiency in the actual deadweight of the VESSEL
                  

              

      

       

      
        
          
          

        

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      being
        two
        thousand five hundred (2,500) metric tons or more, then the BUYER may, at
        its
        option, reject the VESSEL and rescind this Contract in accordance with the
        provisions of Article X hereof, or may accept the VESSEL at a reduction in
        the
        Contract Price as above provided for metric tons only, that is, at a total
        reduction of United States Dollars one million five hundred
        (US$1,500,000.-).

       

      
        	5.	
                Effect
                  of Rescission:

              

      

       

      It
        is
        expressly understood and agreed by the Parties hereto that in any case, if
        the
        BUYER rescinds this Contract under this Article, the BUYER, subject to the
        provisions of Article X hereof, shall not be entitled to any liquidated damages,
        other than the refund of the instalments already paid and payment of interest
        accrued thereon as provided in Article X hereof.

       

      
        	6.	
                Method
                  of Settlement:

              

      

       

      Every
        and
        all adjustment of the Contract Price provided in this Article shall be balanced
        at the payment due upon delivery of the VESSEL.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        IV - APPROVAL OF PLANS AND DRAWINGS

      AND
        INSPECTION DURING CONSTRUCTION

       

      
        	1.	
                Approval
                  of Plans and Drawings:

              

      

       

      
        	 	
                (a)

              	
                The
                  BUILDER shall submit to the BUYER four (4) copies each of the plans
                  and
                  drawings to be submitted thereto for its approval at its address
                  as set
                  forth in Article XVIII hereof.

              

      

       

      The
        BUYER
        shall, within three (3) weeks after the date of receipt before keel-laying
        of
        the VESSEL, and/or within two (2) weeks after the date of receipt after
        keel-laying of the VESSEL, return by courier service to the BUILDER two (2)
        copies of such plans and drawings including one (1) copy to be transferred
        to
        the REPRESENTATIVE (as defined hereinafter) with the BUYER’s approval or
        qualified approval with comments written thereon, if any. The BUILDER shall
        give
        reply regarding BUYER’s comments within two (2) weeks from the date of receipt.
        If the BUILDER fails to reply, the BUYER’s approval comments shall be deemed
        accepted by the BUILDER.

       

      In
        case
        the said plans and drawings shall not be returned to the BUILDER from the
        BUYER
        within the time limit as hereinabove provided, the BUILDER shall give the
        BUYER
        notice by telefax and the BUYER shall acknowledge and inform the BUILDER
        of the
        status of approval and if such plans and drawings are not returned to the
        BUILDER within further five (5) days after the BUILDER’s telefax, such plans and
        drawings shall be deemed to have been automatically approved without comments
        unless otherwise agreed.

       

      
        	 	
                (b)

              	
                When
                  and if the REPRESENTATIVE (as defined hereinafter) shall have been
                  sent by
                  the BUYER to the SHIPYARD in accordance with Paragraph 2 of this
                  Article,
                  the BUILDER may, however at the BUYER’s express written consent only,
                  submit the remainder, if any, of the plans and drawings in the
                  agreed
                  list, to the REPRESENTATIVE for his approval. The REPRESENTATIVE
                  shall,
                  within two (2) weeks after receipt thereof, return to the BUILDER
                  one (1)
                  copy of such plans and drawings with his approval or qualified
                  approval
                  with comments written thereon, if
                  any.

              

      

       

      Approval
        by the REPRESENTATIVE of the plans and drawings duly submitted to him shall
        be
        deemed to be the approval by the BUYER for all purposes of this
        Contract.

       

      In
        the
        event that the BUYER or the REPRESENTATIVE shall fail to return the plans
        and
        drawings to the BUILDER within the time limit as hereinabove specified, such
        plans and drawings shall be deemed to have been automatically approved without
        any comment.

       

      
        
          
          

        

          19
            of 63

          

          

        

        
          
          

        

      
       

      The
        approval of plans and drawings by the BUILDER shall not alter or diminish
        the
        responsibility of the BUILDER to design and construct the VESSEL in accordance
        with the Contract, the Specifications and Plans.

       

      
        	 	
                (e)

              	
                All
                  documents, drawings, calculations, instruction manuals, etc. which
                  are
                  submitted to the BUYER, shall be in English
                  only.

              

      

       

      
        	2.	
                Appointment
                  of the BUYER’s
                  REPRESENTATIVE:

              

      

       

      The
        BUYER
        may timely send to and maintain at the SHIPYARD a REPRESENTATIVE who shall
        be
        duly authorized in writing by the BUYER (herein called the “REPRESENTATIVE”) to
        act on behalf of the BUYER in connection with modifications of the
        Specifications, approval of the plans and drawings, attendance to the tests
        and
        inspections relating to the VESSEL, its machinery, equipment and outfitting,
        and
        any other matters for which he is specifically authorized by the
        BUYER.

       

      The
        BUYER
        may also send to and maintain at the SHIPYARD up to seven (7) assistants
        to the
        REPRESENTATIVE. The BUYER may also send to and maintain at the Main Engine
        Manufacturer’s factory, at the BUYER’s own cost and expense, two (2) assistants
        for the period from 3 months prior to the bed assembling up to completion
        of
        shop test.

       

      
        	3.	
                Inspection
                  by
                  REPRESENTATIVE:

              

      

       

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

       

      The
        REPRESENTATIVE and his assistants shall at all times during working hours
        during
        the construction until delivery and acceptance of the VESSEL, have the right
        to
        inspect the VESSEL, and all work in progress, materials utilized and quality
        of
        work in connection with the construction thereof wherever such work is being
        done within the SHIPYARD’s premises or such materials and equipment are stored,
        and the premise of subcontractors of the BUILDER who are doing work or storing
        materials in connection with the VESSEL’s construction, for the purpose of
        determining the VESSEL is being constructed in accordance with the terms
        of this
        CONTRACT and the Specifications and Plans. The REPRESENTATIVE and his assistants
        shall have the unrestricted right to visit the VESSEL and all work in
        progress.

       

      The
        REPRESENTATIVE and his assistants shall also have the right to visit, with
        the
        BUILDER’s attendance or introduction as necessary, all property utilized in
        connection with the construction of the VESSEL, wherever and whenever such
        property is stored. The REPRESENTATIVE and his assistants may, with the

       

      
        
          
          

        

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      BUILDER’s
        permission, visit all property of the BUILDER wherever any work for the VESSEL
        is to be done. Such permission shall not be unreasonably withheld by the
        BUILDER.

       

      The
        BUILDER shall give a notice to the REPRESENTATIVE and his assistant(s) at
        least
        twenty-four (24) hours advance for tests and inspections within the SHIPYARD
        stating particulars of any tests and inspections which may be attended by
        the
        REPRESENTATIVE and his assistants provided that in exceptional circumstances
        the
        manner in which such notice is given may be modified by mutual agreement.
        Also
        BUILDER shall give a notice to the REPRESENTATIVE and his assistants of the
        date
        and place of such tests and inspections including three (3) days prior notice
        of
        auxiliary engines test and seven (7) days prior notice of Main Engine tests.
        For
        tests and inspections outside the SHIPYARD, sufficient advance notice to
        allow
        for the REPRESENTATIVE and his assistants to arrange transportation shall
        be
        given. This advance notice should not be less than three (3) days for tests
        and
        inspections that require air travel for attendance. Any inspection schedule
        must
        be reasonable at all times in order to allow the REPRESENTATIVE and his
        assistants to carry out their duties properly and inspections must be evenly
        spread over a reasonable time. The inspection thus exercised on behalf of
        BUYER
        shall not alter or diminish the responsibility of BUILDER to construct VESSEL
        in
        accordance with the Contract, the Specifications and Plans. Once a test has
        been
        witnessed and approved by the BUYER’s REPRESENTATIVE, the same test should not
        have to be repeated, provided it has been carried out in compliance with
        the
        requirements of the Classification Society and Specifications.

       

      In
        the
        event that the BUYER’s REPRESENTATIVES discovers any construction or material or
        workmanship which does not conform to the requirements of this Contract and/or
        the Specifications, the BUYER’s REPRESENTATIVES shall promptly give the BUILDER
        a notice in writing as to such non-conformity. Upon receipt of such notice
        from
        the BUYER’s REPRESENTATIVES, the BUILDER shall correct such non-conformity or,
        if it does not, shall respond in writing within seven (7) working days of
        receipt of the notice stating the reasons why it does not agree. If there
        is any
        difference of opinion between the parties as to the conformity of the VESSEL
        with the Contract and the Specifications the parties shall try to settle
        the
        dispute by negotiation. Should the dispute not be settled by negotiation
        it may,
        if mutually agreed upon, be referred to the Classification Society or a mutually
        agreed expert whose opinion shall be final and binding upon the parties hereto,
        failing which the dispute shall be referred to arbitration pursuant to Article
        XIII hereof.

       

      
        	4.	
                Facilities:

              

      

       

      The
        BUILDER shall at no cost to the BUYER furnish suitably lighted and
        air-conditioned office space within the SHIPYARD or in the immediate vicinity
        of
        the BUILDER’s SHIPYARD, for a team of up to eight (8) persons including the
        REPRESENTATIVE and his assistant(s), with office furniture, meeting table,
        

       

      
        
          
          

        

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      filling
        cabinets and public toilet and shower space and other reasonable facilities.
        Separate telephone line and facsimile receiver suitable for international
        calls,
        broadband internet connection shall be provided in the REPRESENTATIVE’s office.
        Charges for telecommunications services shall be paid by the BUYER as billed
        by
        the telecommunications authorities.

       

      All
        transportation in the Greater Nantong Area, shall be provided to the
        REPRESENTATIVE by the BUILDER. The travel expenses for the said access to
        the
        BUILDER’s subcontractors outside of the Greater Nantong Area in the People’s
        Republic of China shall be at BUYER’s account.

       

      The
        REPRESENTATIVE shall be on duty during the working time of the BUILDER, which
        is
        or is deemed to be Monday thru Saturday, 7:00 am to 5:00 pm.

       

      During
        last month of the period of construction of VESSEL, office space, washing
        facilities in SHIPYARD shall be provided for VESSEL’s senior officers and
        crew.

       

      The
        BUILDER shall assist the BUYER in arranging necessary visa(s) for the
        REPRESENTATIVE and his assistant(s) to enter China.

       

      
        	5.	
                Liability
                  of the BUILDER:

              

      

       

      The
        REPRESENTATIVE and his assistant(s) shall at all times be deemed to be employees
        of the BUYER and not of the BUILDER. The BUILDER shall be under no liability
        whatsoever to the BUYER, the REPRESENTATIVE or his assistant(s) for personal
        injuries, including death, suffered during the time when he or they are on
        the
        VESSEL, or within the premises of either the BUILDER or its subcontractors,
        or
        are otherwise engaged in and about the construction of the VESSEL, unless,
        however, such personal injuries including death were caused by a negligence
        of
        the BUILDER, or of any of its employees or agents or
        subcontractors.

       

      The
        BUILDER shall be under no liability whatsoever to the BUYER, the REPRESENTATIVE
        or his assistant(s) for damage to, or loss or destruction of property in
        the
        People’s Republic of China of the BUYER or of the REPRESENTATIVE or his
        assistant(s), unless such damage, loss or destruction were caused by negligence
        of the BUILDER, or of any of its employees or agents or
        subcontractors.

       

      
        	6.	
                Responsibility
                  of the BUYER:

              

      

       

      The
        BUYER
        shall undertake and assure that the REPRESENTATIVE and his assistant(s) shall
        carry out his duties hereunder in accordance with the normal shipbuilding
        practice of the BUILDER and in such a way as to avoid any 

       

      
        
          
          

        

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

       

      
        	7.	
                Salaries
                  and Expenses:

              

      

       

      All
        salaries and expenses of the REPRESENTATIVE, his assistant(s) or any other
        employees employed by the BUYER under this Article shall be for the BUYER’s
        account except for those mentioned under the Paragraph 4 in this
        Article.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        V - MODIFICATION

       

      
        	1.	
                Modification
                  of Specifications:

              

      

       

      The
        Specifications and plans in accordance with which the VESSEL shall be
        constructed, may be modified and/or changed at any time hereafter by written
        agreement of the Parties hereto, provided that such modifications and/or
        changes
        or an accumulation thereof will not, in the BUILDER’s reasonable judgement,
        materially affect the BUILDER’s other commitments and provided further that the
        BUYER shall assent to adjustment of the Contract Price, date of delivery
        of the
        VESSEL and other terms of this Contract, if any, as provided herein. Subject
        to
        the above, the BUILDER hereby agrees to accommodate such reasonable requests
        by
        the BUYER so that the said changes and/or modifications may be made at
        reasonable and justified cost, and within the shortest period of time reasonably
        possible.

       

      Any
        such
        agreement in writing for modifications and/or changes shall include an agreement
        as to the increase or decrease, if any, in the Contract Price of the VESSEL
        together with an agreement as to any extension or reduction in the time of
        delivery, or any other alterations in this Contract, or the Specifications
        occasioned by such modifications and/or changes. The aforementioned agreement
        to
        modify and/or to change the Specifications may be effected by an exchange
        of
        duly authenticated letters or telefaxes, manifesting such agreement. The
        letters
        and telefaxes exchanged by the Parties hereto pursuant to the foregoing shall
        constitute an amendment of the Specifications under which the VESSEL shall
        be
        built, and such letters and telefaxes shall be deemed to be incorporated
        into
        this Contract and the Specifications by reference and made a part hereof.
        Upon
        consummation of the agreement to modify and/or to change the Specifications,
        the
        BUILDER shall alter the construction of the VESSEL in accordance therewith,
        including any additions to, or deductions from, the work to be performed
        in
        connection with such construction.

       

      If,
        for
        whatever reasons, the Parties hereto shall fail, within a reasonable period,
        to
        agree on the adjustment of the Contract Price or extension of time of delivery
        or modification of any terms of this Contract which are necessitated by such
        modifications and/or changes, then the BUILDER shall be entitled to refuse to
        make any such modifications or changes requested by the BUYER by a notification
        of the same in writing to the BUYER.

       

      The
        BUILDER may make changes to the Specifications, if found necessary for
        introduction of improved production methods or otherwise, provided that the
        BUILDER shall first obtain the BUYER’s approval.

       

      
        	2.	
                Change
                  in Class, etc.:

              

      

       

      
        
          
          

        

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      In
        the
        event that, after the date of signing this Contract, any requirements as
        to the
        rules and regulations as specified in this Contract to which the construction
        of
        the VESSEL is required to conform, are altered or changed, as per Paragraph
        2 of
        Article I, by the Classification Society or the other regulatory bodies
        authorized to make such alterations or changes, the BUILDER shall transmit
        such
        information in full to the BUYER in writing, whereupon within twenty one
        (21)
        days after receipt of the said notice by the BUYER shall, in its sole discretion
        decide and instruct the BUILDER in writing as to the alterations or changes,
        if
        any, to be made in the VESSEL. The BUILDER shall promptly comply with such
        alterations or changes in the construction of the VESSEL, only provided that
        the
        Parties shall have first agreed:

       

      
        	 	
                (i)

              	
                As
                  to any reasonable increase or decrease in the Contract Price of
                  the VESSEL
                  that is occasioned by the cost for such compliance according to
                  and in
                  compliance with Paragraph 1 of this Article V;
                  and/or

              

      

       

      
        	 	
                (ii)

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

              

      

       

      
        	 	
                (iii)

              	
                As
                  to any decrease in the Guaranteed Deadweight and the Guaranteed
                  Speed of
                  the VESSEL, if such compliance results in reduced deadweight, cargo
                  capacity and speed; and/or

              

      

       

      
        	 	
                (iv)

              	
                As
                  to any other alterations in the terms of this Contract, if such
                  compliance
                  makes such alterations of the terms
                  necessary.

              

      

       

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

       

      
        	3.	
                Substitution
                  of Materials:

              

      

       

      In
        the
        event that any of the materials required by the Specifications or otherwise
        under this Contract for the construction of the VESSEL cannot be procured
        in
        time or are in short supply to maintain the Delivery Date of the VESSEL,
        the
        BUILDER may, provided that the BUYER shall so agree in writing, which shall
        not
        be unreasonably withheld, supply other materials and/or equipment of and
        with
        equivalent quality and capable of meeting the requirements of the Classification
        Society and of the rules, regulations and requirements with which the
        construction of the VESSEL must comply. Any agreement as to such substitution
        of
        materials shall be effected in the manner provided in Paragraph 1 of this
        Article.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        VI — TRIALS AND ACCEPTANCE

       

      
        	1.	
                Notice:

              

      

       

      The
        BUYER
        and the REPRESENTATIVE shall be entitled to receive from the BUILDER at least
        thirty (30) days’ notice in advance, followed by seven (7) days’ definitive
        notice in advance, in writing or by telefax (confirmed in writing), of the
        scheduled time and place of the VESSEL’s sea trial as described in the
        Specifications (hereinafter called the “Trial Run”) and the BUYER and the
        REPRESENTATIVE shall promptly acknowledge receipt of such notice. If the
        time
        and/or place of the trial run of the VESSEL has to be altered, a three (3)
        days
        definite notice shall be sent to the BUYER by telefax.

       

      The
        BUYER
        shall have a representative and/or its REPRESENTATIVE and/or his assistant(s)
        on
        board the VESSEL to witness such Trial Run. Failure in attendance of the
        representative and/or its REPRESENTATIVE and/or his assistant(s) of the BUYER
        at
        the Trial Run of the VESSEL for any reason whatsoever after due notice to
        the
        BUYER as above provided, shall be deemed to be a waiver by the BUYER of its
        right to have its representative and/or its REPRESENTATIVE and/or his
        assistant(s) on board the VESSEL at the Trial Run, and the BUILDER and the
        class
        surveyor may conduct the Trial Run without the representative and/or its
        REPRESENTATIVE and/or his assistant(s) of the BUYER being present, and in
        such
        case the BUYER shall be obliged to accept the VESSEL on the basis of a
        certificate of the BUILDER with an approval from the Classification Society
        certifying that the VESSEL, upon Trial Run, is found to conform to this Contract
        and the Specifications.

       

      
        	2.	
                Weather
                  Condition:

              

      

       

      The
        Trial
        Run shall be carried out under the weather condition which is deemed favourable
        enough by the reasonable judgment of the BUILDER and the BUYER.

       

      In
        the
        event of unfavourable weather on the date specified for the Trial Run, the
        same
        shall take place on the first available day thereafter that the weather
        condition permits. It is agreed that, if during the trial run of the VESSEL,
        the
        weather should suddenly become so unfavourable that orderly conduct of the
        trial
        run can no longer be continued, the trial run shall be discontinued and
        postponed until the first favourable day next following, unless the BUYER
        shall
        assent in writing to acceptance of the VESSEL on the basis of the trial run
        already made before such discontinuance has occurred.

       

      Any
        delay
        of trial run caused by such unfavourable weather condition shall operate
        to
        postpone the Delivery Date by the period of delay involved and such delay
        shall
        be deemed as a Permissible Delay in the delivery of the VESSEL.

       

      
        
          
          

        

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        	3.	
                How
                  Conducted:

              

      

       

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

       

      Notwithstanding
        the foregoing, lubricating and hydraulic oils and greases necessary for the
        period of construction and the trial run of the VESSEL shall be supplied
        by the
        BUYER at the SHIPYARD prior to the time required and fuel oils, water, fresh
        water and stores for the conduct of the Trial Run or Trial Runs shall be
        supplied by the BUILDER for its account. The lubricating and hydraulic oils
        and
        greases supplied by the BUYER shall be in accordance with the Specifications
        and
        instruction of the BUILDER. The fuel oil supplied by the BUILDER, and
        lubricating oil and hydraulic oil supplied by the BUYER shall be in accordance
        with the applicable engine specifications. The BUYER shall communicate to
        the
        BUILDER the intended oil suppliers for the VESSEL and the BUILDER shall comply
        with above requirements.

       

      
        	4.	
                Method
                  of Acceptance or Rejection:

              

      

       

      
        	 	
                (a)

              	
                Upon
                  completion of the trial run, the BUILDER shall give the BUYER a
                  notice of
                  completion of the trial run together with written reports recording
                  off
                  all the trials, as and if the BUILDER considers that the results
                  of the
                  trial run indicate conformity of the VESSEL to this Contract and
                  the
                  Specifications. The BUYER shall, within five (5) banking days after
                  receipt of such notice from the BUILDER notify the BUILDER by telefax
                  of
                  its acceptance or of its rejection of the Trial Run results, together
                  with
                  the reasons therefor.

              

      

       

      
        	 	
                (b)

              	
                However,
                  should the result of the Trial Run indicate that the VESSEL or
                  any part
                  thereof including its equipment does not conform to the requirements
                  of
                  this Contract, the BUILDER shall investigate together with the
                  REPRESENTATIVE the cause of such non-conformance and determine
                  the proper
                  steps to be taken to remedy the same and make whatever corrections
                  and
                  alterations and/or re-Trial Run or Trial Runs as may be necessary
                  without
                  extra cost to the BUYER, and upon notification by the BUILDER of
                  the
                  completion of such alterations or corrections and/or re-Trial or
                  re-Trials
                  the BUYER shall, within five (5) business days, notify the BUILDER
                  by
                  telefax (confirmed in writing) of its acceptance of the VESSEL
                  or of the
                  rejection of the Trial Run results, together with the reason therefore,
                  taking into account the alterations and corrections and/or retrial
                  or
                  retrials by the BUILDER.

              

      

       

      
        	 	
                (c)

              	
                In
                  the event that the BUYER fails to notify the BUILDER by facsimile
                  of the
                  acceptance, or the rejection of the trial run together with the
                  reason
                  

              

      

       

      
        
          
          

        

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      therefor
        within the period as provided in the above Sub-paragraph (a) or (b), the
        BUYER
        shall be deemed to have accepted the VESSEL.

       

      
        	 	
                (d)

              	
                Any
                  dispute arising between the parties hereto as to whether the VESSEL
                  and
                  its equipment and machinery comply with this Contract and/or
                  Specifications, or as to the result of any trial run of the VESSEL,
                  or
                  relating to the BUYER’s rejection to take delivery of the VESSEL, shall be
                  resolved in accordance with Article
                  XIII.

              

      

       

      
        	 	
                (e)
                  

              	
                Nothing
                  herein shall preclude the BUYER from accepting the VESSEL with
                  its
                  qualifications and/or remarks following the Trial Run and/or further
                  tests
                  or trials as aforesaid and the BUILDER shall be obliged to comply
                  with
                  and/or remove such qualifications and/or remarks (if such qualifications
                  and/or remarks are reasonably acceptable to the BUILDER) at the
                  time
                  before effecting delivery of the VESSEL to the BUYER under this
                  Contract.

              

      

       

      
        	5.	
                Effect
                  of Acceptance:

              

      

       

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

       

      
        	6.	
                Disposition
                  of Surplus Consumable
                  Stores:

              

      

       

      Following
        conclusion of the Trial Runs and acceptance of the VESSEL by the BUYER, the
        BUYER shall reimburse the BUILDER at original net purchase price as evidenced
        by
        invoices for fuel oils on board in storage tanks and delivered to the BUYER
        with
        the VESSEL.

       

      The
        BUILDER shall absorb the cost of lubricating and hydraulic oil and greases
        consumed during Trial Runs excluding lubricating oils and greases remaining
        in
        the main engine, other machinery and their pipes, stern tube and the like,
        at
        BUYER’s net purchase prices as evidenced by invoices.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        VII - DELIVERY

       

      
        	1.	
                Time
                  and Place:

              

      

       

      Following
        completion of the Trial Run (or, as the case may be, any re-Trial Run or
        re-Trial Runs), the VESSEL shall be delivered safely afloat by the BUILDER
        to
        the BUYER at the SHIPYARD in accordance with the Specifications and with
        all
        Classification Society notation and statutory certificates specified in
        Paragraph 2 of Article I on or before 31st
        January
        2010 but in any case not during the period between 15TH
        November, 2009 and 5th
        January,
        2010, except that in the event of delays in the construction of the VESSEL
        or
        any performance required under this Contract due to causes which under the
        terms
        of this Contract permit postponement of the date for delivery, the
        aforementioned date for delivery of the VESSEL shall be postponed
        accordingly.

       

      The
        aforementioned date, or such later date to which the requirement of delivery
        is
        postponed pursuant to such terms, is herein called the “Delivery
        Date”.

       

      
        	2.	
                Notice:

              

      

       

      The
        BUILDER shall give an approximate notice to the BUYER of the expected date
        of
        delivery on or before thirty (30) calendar days prior to the scheduled delivery
        date. A preliminary notice shall be given to the BUYER at least two (2) months
        prior to the scheduled delivery date. The BUILDER shall be entitled to deliver
        the VESSEL prior to the Delivery Date with thirty (30) days written notice
        to
        BUYER.

       

      
        	3.	
                When
                  and How Effected:

              

      

       

      Provided
        that the BUILDER and the BUYER shall have fulfilled all of its obligations
        stipulated under this Contract, delivery of the VESSEL shall be effected
        forthwith by the concurrent delivery by each of the Parties hereto to the
        other
        of the PROTOCOL OF DELIVERY AND ACCEPTANCE, acknowledging delivery of the
        VESSEL
        by the BUILDER and acceptance thereof by the BUYER, which protocol shall
        be
        prepared in duplicate and executed by each of the Parties hereto.

       

      
        	4.	
                Documents
                  to be Delivered to the
                  BUYER:

              

      

       

      Acceptance
        of the VESSEL by the BUYER shall be conditioned upon the BUILDER’s delivery and
        receipt thereof by the BUYER of the following documents, subject to Paragraph
        2
        Article V hereof, to the BUYER, which shall accompany the PROTOCOL OF DELIVERY
        AND ACCEPTANCE:

       

      
        	 	
                (a)
                  

              	
                PROTOCOL
                  OF TRIALS OF THE VESSEL made pursuant to the

              

      

       

      
        
          
          

        

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      Specifications.

       

      
        	 	
                (b)
                  

              	
                PROTOCOL
                  OF INVENTORY of the equipment of the VESSEL, including spare parts
                  and the
                  like, all as specified in the
                  Specifications.

              

      

       

      
        	 	
                (c)
                  

              	
                PROTOCOL
                  OF STORES OF CONSUMABLE NATURE referred to under Paragraph 6 of
                  Article VI
                  hereof, including the original purchase price
                  thereof.

              

      

       

      
        	 	
                (d)
                  

              	
                ALL
                  CERTIFICATES including three (3) originals of the BUILDER’s CERTIFICATE
                  (duly attested by notary public if necessary) required to be furnished
                  upon delivery of the VESSEL pursuant to this Contract and the
                  Specifications. All other certificates, except for BUILDER’s CERTIFICATE,
                  shall be delivered in one (1) original to the VESSEL and two (2)
                  copies to
                  the BUYER. It is agreed that if, through no fault on the part of
                  the
                  BUILDER, the classification certificate and/or other certificates
                  are not
                  available at the time of delivery of the VESSEL, provisional certificates
                  shall be accepted by the BUYER, provided that the BUILDER shall
                  furnish
                  the BUYER with the formal certificates within three (3) months
                  after
                  delivery of the VESSEL however in any event before the expiry of
                  such
                  provisional certificates, unless otherwise mutually
                  agreed.

              

      

       

      
        	 	
                (e)
                  

              	
                DECLARATION
                  OF WARRANTY of the BUILDER that the VESSEL is delivered to the
                  BUYER free
                  and clear of any liens, charges, claims, mortgages, or other encumbrances
                  upon the BUYER’s title thereto, and in particular, that the VESSEL is
                  absolutely free of all burdens in the nature of imposts, taxes
                  or charges
                  imposed by the Chinese governmental authorities, as well as of
                  all
                  liabilities of the BUILDER to its subcontractors, employees and
                  crew,
                  and/or of all liabilities arising from the operation of the VESSEL
                  in
                  Trial Runs, or otherwise, prior to
                  delivery.

              

      

       

      
        	 	
                (f)

              	
                FINISHED
                  DRAWINGS AND PLANS pertaining to the VESSEL as stipulated in the
                  Specifications.

              

      

       

      
        	 	
                (g)
                  

              	
                COMMERCIAL
                  INVOICE in triplicate, with main particulars of the
                  VESSEL.

              

      

       

      
        	 	
                (h)
                  

              	
                BILL
                  OF SALE in three (3) originals, duly notarized and legally
                  attested.

              

      

       

      
        	 	
                (i)
                  

              	
                PROTOCOL
                  OF DEADWEIGHT DETERMINATION and inclining
                  experiments.

              

      

       

      
        	 	
                (j)

              	
                NON-REGISTRATION-CERTIFICATE,
                  as a copy, issued by the competent local authority, stating that
                  the
                  VESSEL is not registered at the time of Delivery; the original
                  instrument
                  shall be delivered within thirty (30) business days after delivery
                  of such
                  copy; and

              

      

       

      
        	 	
                (k)

              	
                Any
                  other reasonable document required by flag authority for the
                  

              

      

       

      
        
          
          

        

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      registration
        of the VESSEL;

       

      The
        BUILDER shall provide to the BUYER, at least fourteen (14) days prior to
        the
        Delivery Date, the drafts of the above-mentioned documents.

       

      
        	5.	
                Tender
                  of the VESSEL:

              

      

       

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

       

      
        	6.	
                Title
                  and Risk:

              

      

       

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

       

      The
        BUILDER may mortgage this VESSEL for financing purpose provided that, upon
        delivery, the BUILDER shall provide the BUYER with a declaration of warranty
        in
        accordance with Paragraph 4 (e) of this Article and present to the BUYER
        original documents, if requested, at the SHIPYARD, and provide copies thereof,
        verifying that any such mortgage, lien and/or other encumbrance has been
        done
        away with and is cleared, and the VESSEL is free and clear of such.

       

      
        	7.	
                Removal
                  of the VESSEL:

              

      

       

      The
        BUYER
        shall take possession of the VESSEL immediately upon delivery and acceptance
        thereof, and shall remove the VESSEL from the mooring quay of the SHIPYARD
        as
        soon as possible within three (3) business days after delivery and acceptance
        thereof is effected. If the BUYER shall not remove the VESSEL from the mooring
        quay of the SHIPYARD within the aforesaid three (3) business days, then,
        in such
        event, the BUYER shall pay to the BUILDER the reasonable mooring charges
        of the
        VESSEL.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        VIII - DELAYS AND EXTENSION OF TIME FOR DELIVERY

      (FORCE
        MAJEURE)

       

      
        	1.	
                Causes
                  of Delay:

              

      

       

      If,
        at
        any time before actual delivery, either the construction of the VESSEL, or
        any
        performance required hereunder as a prerequisite of delivery of the VESSEL,
        is
        delayed as a result of Acts of God (including fire, flood, tidal waves,
        earthquake, typhoons, drought or other natural catastrophe), war, invasion,
        act
        of foreign or public enemies, hostilities (whether war is declared or not),
        civil war, rebellion, revolution, insurrection, terrorist activities, blockage,
        freight embargo, labour dispute, strike, lockout, local outside air temperature
        higher than 40 degree centigrade, or disaster similar in nature beyond the
        control of the BUILDER (hereinafter “Force Majeure”) or by destruction of the
        BUILDER or works of the BUILDER, or of the VESSEL or any part thereof, by
        Force
        Majeure or due to the delay caused by Force Majeure in the supply of parts
        essential to the construction of the vessel, then, in the event of delay
        due to
        the happening of any of the aforementioned contingencies, the BUILDER shall
        not
        be liable for such delay and the time for delivery of the VESSEL under this
        Contract shall be extended without any reduction in the Contract Price for
        a
        period of time which shall not exceed the total duration of all such delays,
        subject nevertheless to the BUYER’s right of cancellation under Paragraph 3 of
        this Article VIII, notwithstanding and accounting for all relevant provisions
        of
        this Contract which may additionally constitute extension of the time of
        delivery of the VESSEL. Any Party asserting Force Majeure as an excuse shall
        have the onus to show that reasonable steps were taken under the circumstances
        to prevent and/or minimize delay or damages caused by foreseeable events,
        that
        all non-excused obligations were substantially fulfilled, and that the other
        Party was timely notified of the likelihood or actual occurrence which would
        justify such an assertion, so that other prudent precautions could be
        contemplated.

       

      
        	2.	
                Notice
                  of Delays:

              

      

       

      Within
        five (5) working days from the date of occurrence of any cause of delay,
        on
        account of which the BUILDER claims that it is entitled under this Contract
        to a
        postponement of the Delivery Date, the BUILDER shall notify the BUYER in
        writing
        or by facsimile together with supporting evidence of the date such cause
        of
        delay occurred. Likewise, within five (5) working days after the date of
        ending
        of such cause of delay, the BUILDER shall notify the BUYER in writing or
        by
        facsimile of the date such cause of delay ended. The BUILDER shall also notify
        the BUYER of the period, by which the Delivery Date is postponed by reason
        of
        such cause of delay, with all reasonable despatch after it has been
        determined.

       

      Failure
        of the BUYER to acknowledge receipt of the BUILDER’s written notification of any
        claim for extension of the Delivery Date after receipt by the 

       

      
        
          
          

        

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      BUYER
        of
        such notification shall be deemed to be a waiver by the BUYER of its right
        to
        object to such extension.

       

      
        	3.	
                Definition
                  of Permissible Delays:

              

      

       

      Delays
        on
        account of such causes as specified in Paragraph 1 of this Article and other
        delays of a nature which under the terms of this Contract expressly permits
        postponement of the Delivery Date shall be understood to be Permissible
        Delays.

       

      
        	4.	
                Definition
                  of Non-Permissible
                  Delays:

              

      

       

      All
        other
        delays, exclusive, however, of delays which the Arbitrators (as referred
        to the
        Article XIII hereof) determine to be permissible and result in an extension
        of
        the delivery date and of delays caused by any default in performance by the
        BUYER the nature of which under the terms of this Contract permits extension
        of
        the time of delivery, shall be deemed to be Non-Permissible Delays on account
        of
        which the Contract Price is subject to adjustment as provided in Article
        III
        hereof.

       

      
        	5.	
                Right
                  to Rescind for Excessive
                  Delay:

              

      

       

      If
        the
        total accumulated time of all delays on account of causes specified in Paragraph
        1
        of
        Article III and Paragraph 1 of this Article VIII, amounts to two hundred
        (200)
        days or more, then, in such event, the BUYER may rescind this Contract in
        accordance with the provisions of Article X hereof. The BUILDER may, at any
        time
        after the total accumulated time of the aforementioned delays justifying
        rescission by the BUYER, demand in writing that the BUYER shall make an
        election, in which case the BUYER shall, within thirty (30) days after such
        demand is received by the BUYER, either notify the BUILDER of its intention
        to
        rescind this Contract, or consent to a postponement of the Delivery Date
        to a
        specific future date; it being understood and agreed by the Parties hereto
        that,
        if any further delay occurs on account of causes justifying rescission as
        specified in this Article, the BUYER shall have the same right of rescission
        upon the same terms as hereinabove provided as if the said revised future
        date
        for delivery, New Delivery Date, was the Delivery Date as defined in Article
        VII.

       

      If
        the
        BUYER fails to notify the BUILDER of its rescission of this Contract as
        specified above within such thirty (30) days period, the Buyer shall be deemed
        to have consented to the delivery of the VESSEL at the future date for delivery
        proposed by the BUILDER.

       

      (End
        of
        Article)

      

      
        
          
          

        

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      ARTICLE
        IX - WARRANTY OF QUALITY

       

      
        	1.	
                Guarantee
                  of Material,
                  Workmanship:

              

      

       

      The
        BUILDER, for a period of twelve (12) months from the date of delivery of
        the
        VESSEL to the BUYER, shall guarantee the VESSEL, its hull and machinery and
        all
        parts and equipment thereof including machinery appurtenances that are
        manufactured or furnished or supplied by the BUILDER and/or its subcontractors
        under this Contract against all defects which are due to defective material,
        and/or poor workmanship of the BUILDER and/or its subcontractors (the “Guarantee
        Period”) provided that such defects have not been caused by perils of the sea,
        rivers or navigation, or by normal wear and tear, fire, accident, mismanagement,
        negligence or willful neglect, or by alteration or addition by the
        BUYER.

       

      The
        provisions set forth under this Article as to the Guarantee of the BUILDER
        shall
        not apply to any articles supplied by the BUYER except as to improper
        installation thereof made by the BUILDER.

       

      The
        propeller shall be well designed. Detailed cavitation calculation shall be
        submitted to the BUYER for reference. If any phenomenon of cavitation and
        erosion occurred, the BUILDER has the responsibility to remedy it.

       

      Any
        additional warranty and/or guarantee period in excess of twelve (12) months
        offered by any manufacturer and/or BUILDER’s subcontractors shall be
        automatically passed on to the BUYER and all such rights and claims under
        any
        applicable warranty and guarantee are herewith transferred or deemed to be
        transferred to the BUYER upon delivery of the VESSEL.

       

      
        	2.	
                Notice
                  of Defects:

              

      

       

      The
        BUYER
        shall notify the BUILDER in writing or by facsimile as promptly as possible
        after discovery of the any defects or deviations for which claims is to be
        made
        under this Guarantee. The BUYER’s written notice shall describe the nature of
        the defect and the extent of the damage caused thereby. The BUILDER shall
        be
        under no obligation with respect to this Guarantee to any claim for defects
        discovered after the expiry date of the Guarantee, unless notice of such
        defect
        is given by the BUYER to the BUILDER not later than thirty (30) days after
        such
        expiry date. Telefaxed advices within thirty (30) days after expiry date
        that a
        claim is forthcoming will be sufficient compliance with the requirement as
        to
        time. If the BUILDER becomes aware of defective materials or a serious defect
        in
        the design or construction of the VESSEL or any other vessel built by the
        BUILDER, that endangers the safe operation of the VESSEL, the BUILDER shall
        use
        its best efforts to immediately notify the BUYER by telefax.

       

      
        	3.	
                Remedy
                  of Defects:

              

      

       

      
        
          
          

        

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                (a)

              	
                
                  The
                    BUILDER shall remedy, at its expense, any defect against which
                    the VESSEL
                    or any part of equipment thereof is guaranteed under this Article
                    IX by
                    repairing or replacing the defective parts in the BUILDER’s SHIPYARD. Such
                    repairs or replacing defective parts will be made by the BUILDER
                    free of
                    charge.

                

              

      

       

      
        	 	
                (b)

              	
                Such
                  repairs or replacement will be made at the BUILDER’s SHIPYARD unless the
                  VESSEL cannot be conveniently brought
                  there.

              

      

       

      However,
        if it is inconvenient to bring the VESSEL to the BUILDER’s SHIPYARD and if it is
        likewise not feasible for the BUILDER to forward replacements for the defective
        parts so as to avoid impairment and delay to the VESSEL’s operation or working,
        then, in such event, the BUYER shall cause the necessary repairs or replacements
        to be made elsewhere at the discretion of the BUYER, provided,
        however, that the BUYER shall give the BUILDER notice in writing or facsimile
        confirmed in writing of the time and place such repairs will be made, if
        the
        VESSEL is not thereby delayed or her operation or working is not thereby
        impaired, the BUILDER shall have the right to verify by its own representative
        the nature and extent of the defects complained of. The BUILDER, in such
        cases,
        shall promptly advise the BUYER by facsimile, after such verification has
        been
        completed, of its acceptance or rejection of the defect as one that is subject
        to the Guarantee herein provided. In all minor cases, the Guarantee Engineer,
        if
        applicable, will act for and on behalf of the BUILDER.

       

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

       

      
        	 	
                (aa)
                  

              	
                upon
                  the BUILDER’s acceptance of the defects as justifying remedy under this
                  Article, which shall not be unreasonably withheld;
                  or

              

      

       

      
        	 	
                (bb)
                  

              	
                if
                  the BUILDER neither accepts nor rejects the defects, nor requests
                  arbitration within fifteen (15) days after its receipt of the BUYER’s
                  notice of defects; or

              

      

       

      
        	 	
                (cc)

              	
                upon
                  determination in an arbitration process in accordance with Article
                  XIII
                  that the defect(s) in question fall within the provisions of this
                  Article
                  IX.

              

      

       

      
        	 	
                (c)

              	
                In
                  the event it is necessary to forward the replacement for the defective
                  

              

      

       

      
        
          
          

        

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      parts
        under the BUILDER’s Guarantee, the BUILDER shall forward the same at Cost
        Insurance and Freight by sea. However, if such replacement(s) is/are
        indispensably essential to and urgently required for the seaworthiness of
        the
        VESSEL, the BUILDER shall forward the same at Cost Insurance and Freight
        by
        airfreight. Seafreight and/or airfreight thereby incurred are for account
        of the
        BUILDER.

       

      All
        disputes in this connection, including any disputes arising on the question
        of
        cost or upon the rejection by the BUILDER, upon impartial verification of
        the
        defects as aforesaid and all other disputes connected with or arising upon
        the
        discovery by the BUYER of the defects which cannot be amicably settled between
        the BUYER and the BUILDER shall be referred to the Classification Society.
        However, if the decision of the Classification Society is not acceptable
        to
        either or both parties, such disputes shall be then referred to arbitration
        as
        provided in ARTICLE XIII of this Contract.

       

      
        	 	
                (d)

              	
                If
                  all the defects for which the BUILDER is responsible under this
                  Article
                  are discovered and notified before the expiration of the guarantee
                  period,
                  then these defects shall be agreed in writing between the Parties
                  hereto
                  as being guarantee items by the end of guarantee period and shall
                  be
                  repaired or replaced in the manner provided hereinabove in principle
                  within four (4) months after such expiration of the guarantee period
                  or at
                  a later date to be mutually agreed
                  upon.

              

      

       

      If
        the
        said defects are not repaired or replaced within the said four (4) months
        period, or on or before said later date to be mutually agreed upon, due to
        inconvenience at the BUILDER, the BUYER has the right to cause the repairs
        or
        replacements to be made at the discretion of the BUYER and the BUILDER shall
        pay
        to the BUYER for such repairs or replacements a sum in United States Dollars
        equal to the average of the reasonable cost of making the same repairs or
        replacements including forwarding charges as quoted by a leading SHIPYARD
        in
        each of Japan, South Korea, Singapore, Malta, and China.

       

      At
        the
        expiration of the twelve (12) months from delivery of the VESSEL, all
        liabilities on the part of the BUILDER shall duly cease, except for those
        defects, repairs or replacements of which cannot be carried out on or before
        twelve (12) months after delivery of the VESSEL. The BUILDER’s liabilities on
        such defects shall be extended up to and cease upon completion of their repairs
        and replacements.

       

      
        	 	
                (e)
                  

              	
                The
                  VESSEL shall, at the sole discretion of the BUYER, drydock for
                  guarantee
                  termination survey in China on or before the expiry date of the
                  12-months
                  guarantee period. However, the BUILDER hereby agrees that should
                  the
                  VESSEL not be able to return to China within the stipulated time
                  allowed
                  for the 12-months drydocking, then, either the BUILDER
                  

              

      

       

      
        
          
          

        

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      shall
        agree to the VESSEL’s drydocking arranged by the BUYER which is made available
        near to the VESSEL’s actual position, or the BUILDER shall extend the time to
        enable the VESSEL to return to China to complete the said drydocking for
        guarantee termination survey, provided that such extension of the time shall
        not
        be more than three (3) months after said 12-months Guarantee
        Period.

       

      If
        defect(s) be found on rudder, propeller, bottom, other underwater part(s)
        or
        tail-end shaft and such defect(s) including but not limited to coatings is/are
        to be remedied by the BUILDER under the BUILDER’s guarantee as provided in this
        Article, the BUILDER shall pay the expenses of said drydocking while the
        VESSEL
        is in drydock to the extent as far as the BUILDER’s guarantee work is concerned.
        In all other cases the expenses of the said drydocking shall be borne by
        the
        BUYER.

       

      
        	 	
                (f)
                  

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

              

      

       

      
        	4.	
                Extent
                  of BUILDER’s
                  Liability:

              

      

       

      The
        BUILDER shall be under no obligation with respect to defects discovered after
        the expiration of the Guaranteed Period specified above. The BUILDER shall
        be
        liable to the BUYER for the defects specified in Paragraph 1 of this ARTICLE
        provided that such liability of the BUILDER shall be limited to damage
        occasioned within the Guarantee Period specified in Paragraph 1 above. The
        BUILDER shall however be under no obligation for any remote and/or consequential
        damages occasioned by any defect or for any loss of time in operating or
        repairing the VESSEL, or both, caused by any defect.

       

      The
        BUILDER shall not be obliged to repair, or be liable for, damages to the
        VESSEL,
        or any part or equipment thereof, which after acceptance of the VESSEL by
        the
        BUYER are caused by other than the defects of the nature specified in Paragraph
        1 above, nor shall there be any BUILDER’s liability hereunder for defects in the
        VESSEL, or any part or equipment thereof, caused by fire or accidents at
        sea or
        elsewhere subsequent to acceptance of the VESSEL by the BUYER, or mismanagement,
        accident, negligence, or willful neglect on the part of the BUYER, its employees
        or agents, or of any persons other than employees, agents or subcontractors
        of
        the BUILDER, on or doing work on, the VESSEL, including the VESSEL’s officers,
        crew and passengers, other than the BUILDER, its employees, agents or
        subcontractors.

       

      Likewise,
        the BUILDER shall not be liable for defects in the VESSEL, or any part or
        equipment thereof, that are due to repairs, which were made by others than
        the
        BUILDER and/or its subcontractors or with prior consent of the BUILDER at
        the
        direction of the BUYER, as hereinabove, except in the event of default by
        the
        BUILDER of its obligations under Paragraph 3 of this Article. Should the
        

       

      
        
          
          

        

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      facsimile
        advice of defects in guarantee period be noticed by the BUYER to the BUILDER,
        notwithstanding the nature of such defects being in compliance with the
        Specifications described in Paragraph 1 of the Article as guarantee item
        or not,
        the BUILDER shall take active measures to assist the BUYER to remedy the
        defects
        in the quickest way.

       

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

       

      (End
        of
        Article)

      

      
        
          
          

        

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      ARTICLE
        X - RESCISSION OF THE CONTRACT

       

      
        	1.	
                Notice:

              

      

       

      The
        payments made by the BUYER prior to the delivery of the VESSEL shall be in
        the
        nature of advances to the BUILDER. In the event that the BUYER shall exercise
        its right of rescission and/or cancellation of this Contract under and pursuant
        to any of the provisions of this Contract specifically permitting the BUYER
        to
        do so, then the BUYER shall notify the BUILDER in writing or by facsimile
        and
        such rescission and/or cancellation shall be effective as of the date notice
        thereof is received by the BUILDER.

       

      The
        declaration of default and the notice to cancel and/or rescind this Contract
        may
        be set forth in the same document.

       

      
        	2.	
                Refund
                  by the BUILDER:

              

      

       

      Thereupon
        the BUILDER shall refund to the BUYER the full amount of all sums paid by
        the
        BUYER to the BUILDER on account of the VESSEL within seven (7) days together
        with an amount equal to the original purchase prices of the BUYER’s supplied
        material as evidenced by the invoice issued by the each supplier of the same
        including lubricating oil, grease and fuel oil, if any, which are purchased
        by
        the BUYER to the VESSEL, except those items which are able to return to the
        BUYER, unless the BUILDER proceeds to the arbitration under the provisions
        of
        Article XIII hereof.

       

      In
        such
        event, the BUILDER shall pay the BUYER interest at the rate of eight percent
        (8%) per annum on the amount required herein to be refunded to the BUYER,
        computed from the respective dates on which such sums were paid by the BUYER
        to
        the BUILDER to the date of remittance by telegraphic transfer of such refund
        with interest to the BUYER by the BUILDER, provided, however, that if the
        said
        rescission by the BUYER is made under the provisions of Paragraph 1 of Article
        VIII hereof, then in such event the BUILDER shall pay to the BUYER the interest
        at the rate of four percent (4%) per annum. The bank charges to such refund
        relating to the BUILDER’s Bank to be on account of the BUILDER.

       

      
        	3.	
                Discharge
                  of Obligations:

              

      

       

      Upon
        such
        refund by the BUILDER to the BUYER, all obligations, duties and liabilities
        of
        each of the parties hereto to the other under this Contract shall be forthwith
        completely discharged, and the BUYER shall have no right to claim any further
        damages whatsoever in respect of any breach or alleged breach of this
        Contract.

       

      
        
          
          

        

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        	4.	
                Refundment
                  Guarantee:

              

      

       

      After
        signing this Contract and in accordance with Paragraph 7 of Article II, the
        BUILDER shall furnish the BUYER, for the first, second, third and fourth
        instalments, before the Builder’s receipt of the respective instalment, with a
        Refund Guarantee from a reputable bank in China or an international insurance
        company acceptable to the BUYER and the BUYER’s bank for the advance money, in
        favour of the BUYER, guaranteeing the BUILDER’s refundment to the BUYER, in the
        form Exhibit A attached hereto.

       

      Such
        Refund Guarantee shall cover the advance money as above referred to plus
        interest thereon as described in this Article and shall remain in full force
        and
        effect from the date of receipt by the BUILDER of the said advance money
        from
        the BUYER until (i) receipt by the BUYER of the sum of the advance money
        aggregated hereby together with interest thereon or (ii) upon acceptance
        by the
        BUYER of the delivery of the VESSEL at the BUILDER’s SHIPYARD in accordance with
        the terms of this Contract, whichever comes earlier and in any such case,
        the
        Refundment Guarantee shall be returned to the BUILDER.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        XI - BUYER’S DEFAULT

       

      
        	1.	
                Definition
                  of Default:

              

      

       

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

       

      
        	 	
                (a)

              	
                If
                  the BUYER fails to pay any of the first, second, third and fourth
                  instalments to the BUILDER after such instalment becomes due and
                  payable
                  under the provision of Article II hereof;
                  or

              

      

       

      
        	 	
                (b)

              	
                If
                  the BUYER fails to pay the fifth Instalment to the BUILDER concurrently
                  with the delivery of the VESSEL by the BUILDER to the BUYER as
                  provided in
                  Article II hereof; 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.

              

      

       

      If
        the
        BUYER is in default of payment or in the performance of its obligations
        hereunder, the BUILDER shall notify the BUYER to that effect by telefax after
        the date of occurrence of the default under this Article XI. The BUYER shall
        forthwith acknowledge receipt thereof by telefax, within five (5) banking
        days,
        failing which it shall be deemed to have received such notification by the
        BUYER.

       

      
        	2.	
                Interest
                  and Charge:

              

      

       

      If
        the
        BUYER is in default of payment as to any instalment as provided in Paragraph
        1
        (a) and (b) of this Article, the BUYER shall pay interest on such instalments
        at
        the rate of eight percent (8%) per annum from the due date thereof to the
        date
        of payment to the BUILDER of the full amount including interest; in case
        the
        BUYER shall fail to take delivery of the VESSEL as provided in Paragraph
        1 (c)
        of this Article, the BUYER shall be deemed to be in default of payment of
        the
        fifth instalment and shall pay interest thereon at the same rate as aforesaid
        from and including the day on which the VESSEL is tendered for delivery by
        the
        BUILDER.

       

      In
        any
        event of default by the BUYER, the BUYER shall also pay all direct proven
        charges and expenses incurred by the BUILDER which are caused by such default,
        however, no indirect and/or consequential damages.

       

      The
        payment of interest shall be made simultaneously with the payment of the
        principal by telegraphic transfer in the manner as provided for in Paragraph
        5,
        Article II of this Contract.

       

      
        
          
          

        

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        	3.	
                Effect
                  of Default:

              

      

       

      
        	 	
                (a)

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

              

      

       

      
        	 	
                (b)

              	
                If
                  any such default by the BUYER continues for a period of twenty-five
                  (25)
                  business days, the BUILDER may, at its option, rescind this Contract
                  by
                  giving notice of such effect to the BUYER by facsimile confirmed
                  in
                  writing. Upon receipt by the BUYER of such notice of rescission,
                  this
                  Contract shall forthwith become null and void, and any lien, interest
                  or
                  property right that the BUYER may have in and to the VESSEL or
                  to any part
                  or equipment thereof and to any material or part acquired for construction
                  of the VESSEL but not yet utilized for such purpose, shall forthwith
                  cease, and the VESSEL and all parts and equipment thereof shall
                  become the
                  sole property of the BUILDER.

              

      

       

      In
        the
        event of such rescission of this Contract, the BUILDER shall be entitled
        to
        retain any instalment or instalments theretofore paid by the BUYER to the
        BUILDER on account of this Contract.

       

      
        	4.	
                Sale
                  of the VESSEL:

              

      

       

      
        	 	
                (a)

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

              

      

       

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

       

      
        	 	
                (b)

              	
                In
                  the event of the sale of the VESSEL in its completed state, the
                  proceeds
                  of the sale received by the BUILDER shall be applied firstly to
                  payment of
                  all expenses attending such sale and otherwise incurred by the
                  BUILDER as
                  a result of the BUYER’s default, and then to payment of all unpaid
                  instalments of the Contract Price and interest on such instalments
                  at the
                  rate of eight percent (8%) per annum from the respective due dates
                  thereof
                  to the date of application.

              

      

       

      
        	 	
                (c)
                  

              	
                In
                  the event of sale of the VESSEL in its incomplete state, the proceeds
                  of
                  sale received by the BUILDER shall be applied firstly to all expenses
                  attending such sale and otherwise incurred by the BUILDER as a
                  result of
                  the BUYER’s default, and then to payment of all costs of construction of
                  the VESSEL less the instalments so retained by the
                  BUILDER.

              

      

       

      
        	 	
                (d)

              	
                In
                  either of the above events of sale, if the proceeds of sale exceeds
                  the
                  

              

      

       

      
        
          
          

        

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      total
        amount to which such proceeds are to be applied as aforesaid, the BUILDER
        shall
        promptly pay the excess to the BUYER without interest, provided however,
        that
        the amount of such payment to the BUYER shall in no event exceed the total
        amount of instalments already paid by the BUYER and the cost of the BUYER’s
        Supplies, if any.

       

      
        	 	
                (e)

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

              

      

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        XII - INSURANCE

       

      
        	1.	
                Extent
                  of Insurance Coverage:

              

      

       

      From
        the
        time of keel-laying of the VESSEL until the same is completed, delivered
        to and
        accepted by the BUYER, the BUILDER shall at its own cost and expense, keep
        the
        VESSEL and all machinery, materials, equipment, appurtenances and outfit,
        delivered to the SHIPYARD for the VESSEL or built into, or installed in or
        upon
        the VESSEL, including the BUYER’s Supplies, fully insured for BUILDER’s risk
        with established Chinese prime insurance companies under coverage corresponding
        to “Institute of London Underwriters Clause for Builder’s Risks”.

       

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

       

      The
        policy referred to hereinabove shall be taken out in the name of the BUILDER
        and
        all proceeds under such policy shall be payable to the BUILDER.

       

      One
        photocopy of each of the BUILDER’s risk insurance shall be delivered to the
        BUYER.

       

      Notwithstanding
        anything to the contrary in this Contract, if the BUILDER has made valid
        tender
        of delivery of the VESSEL, the cost of any insurance placed on the VESSEL
        from
        the time of valid tender, as defined in Paragraph 5 of Article VII, until
        the
        time of actual delivery shall be for the account of the BUYER.

       

      
        	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 also to the satisfaction of the REPRESENTATIVE
        without additional expense to the BUYER, and the BUYER shall accept the VESSEL
        under this Contract if completed in accordance with this Contract and the
        Specifications.

       

      
        
          
          

        

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                (b)

              	
                Total
                  Loss:

              

      

       

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

       

      
        	 	
                (i)

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

              

      

       

      
        	 	
                (ii)

              	
                Refund
                  immediately to the BUYER the amount of all instalments paid to
                  the BUILDER
                  under this Contract with the interest at the rate of eight percent
                  (8%)
                  per annum, whereupon this Contract shall be deemed to be rescinded
                  and all
                  rights, duties, liabilities and obligations of each of the parties
                  to the
                  other shall terminate forthwith.

              

      

       

      If
        the
        Parties hereto fail to reach such agreement within two (2) months after the
        VESSEL is determined to be an actual or constructive total loss, the provisions
        of Subparagraph (b) (ii) as above shall be applied.

       

      
        	3.	
                Termination
                  of the BUILDER’s obligation to
                  insure:

              

      

       

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

       

      
        	4.	
                Insurance
                  Confirmation:

              

      

       

      The
        BUILDER shall on demand provide the BUYER with a duplicate or a certified
        copy
        of such insurances and/or entries and shall punctually pay all premiums,
        calls
        or other sums payable and on demand shall produce to the BUYER evidence of
        payment of the last premium and/or call or supplementary call due. The BUILDER
        will do nothing and ensure nothing is done whereby any such insurances or
        entries may be or become void or voidable and will in all respect act in
        conformity with the terms of such insurances or entries.

       

      In
        the
        case that the BUILDER’s insurances under this Article do not cover the original
        purchase prices of the BUYER’s supplies, the BUILDER shall forthwith pay such
        sums to the BUYER provided such supplies have been installed
        onboard.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        XIII - DISPUTES AND ARBITRATION

       

      
        	1.	
                Proceedings:

              

      

       

      
        	 	
                (a)
                  

              	
                Decision
                  by the Classification Society:

              

      

       

      If
        any
        dispute arises between the Parties hereto in regard to the design and/or
        construction of the VESSEL, its machinery and equipment, and/or in respect
        of
        the materials and/or workmanship thereof and/or thereon, and/or in respect
        of
        interpretations of this Contract or the Specifications and Plans, the Parties
        may, by mutual agreement, refer the dispute to the Classification Society
        or to
        such other expert as may be mutually agreed between the Parties
        hereto.

       

      
        	 	
                (b)

              	
                Proceedings
                  of Arbitration:

              

      

       

      In
        the
        event that the Parties hereto do not agree to settle a dispute according
        to
        Paragraph 1 of this Article and/or in the event of any other dispute of any
        kind
        whatsoever between the Parties and relating to this Contract or its rescission
        or any stipulation herein, such dispute shall be submitted to arbitration
        in
        London subject to the rules of the London Maritime Arbitrators Association.
        Each
        Party shall appoint an arbitrator and the two arbitrators so appointed shall
        appoint a third arbitrator (together to “Arbitration Board”).

       

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

       

      Such
        arbitration shall be in accordance with and subject to the provisions of
        the
        English Arbitration Act 1996 or any statutory modification or re-enactment
        thereof for the time being in force.

      

      Either
        Party may demand arbitration of any such dispute by giving notice to the
        other
        Party. Any demand for arbitration by either of the Parties hereto shall state
        the name of the arbitrator appointed by such Party shall also state specifically
        the question or questions as to which such Party is demanding arbitration.
        Within fourteen (14) days after receipt of notice of such demand for
        arbitration, the other Party shall in turn appoint a second arbitrator and
        give
        notice in writing of such appointment to the Party demanding arbitration.
        If a
        Party fails to appoint an arbitrator as aforementioned within fourteen (14)
        days
        following receipt of notice of demand for arbitration by the other Party,
        the
        Party failing to appoint an arbitrator shall be deemed to have accepted and
        appointed, as its own arbitrator, the arbitrator appointed by the Party
        demanding arbitration shall 

       

      
        
          
          

        

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      proceed
        before this sole arbitrator who alone in such event shall constitute the
        Arbitration Board. The award of the Arbitration Board shall be final, conclusive
        and binding upon the Parties hereto.

       

      
        	2.	
                Notice
                  of Award:

              

      

       

      Notice
        of
        any arbitration award shall immediately be given in writing or by telefax
        (confirmed in writing) to the BUILDER and the BUYER.

       

      
        	3.	
                Expenses:

              

      

       

      The
        arbitrator(s) shall determine how the expenses of the arbitration or the
        proportion of such expenses shall be allocated between the parties.

       

      
        	4.	
                Entry
                  in Court:

              

      

       

      Enforcement
        on any award by the Arbitration Board or the arbitrator, as the case may
        be, may
        be entered in a court of competent jurisdiction. Any right of appeal available
        under English law or any other jurisdiction is hereby expressly excluded
        by the
        Parties hereto.

       

      
        
          	5.	
                  Alteration
                    of Delivery
                    Time:

                

        

      

       

      In
        the
        event of the arbitration of any dispute or differences, that affects the
        construction of the VESSEL, arising or occurring prior to delivery to, or
        acceptance by the BUYER of the VESSEL, the award by the arbitrator 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 altered thereby.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        XIV - RIGHTS OF ASSIGNMENT

       

      
        	1.	
                Assignment:

              

      

       

      Neither
        of the Parties hereto shall assign this Contract to a third party unless
        prior
        consent of the other Party is given in writing; such consent not to be
        unreasonably withheld.

       

      
        	2.	
                Assignment
                  of Guarantee Claims:

              

      

       

      If
        the
        BUYER sells or transfers the VESSEL to a third party after the delivery,
        it
        shall have a right to assign the benefits of Article IX - Guarantee to such
        third party.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        XV - TAXES AND DUTIES

       

      Taxes
        and Duties in the People’s Republic of China:

       

      The
        BUILDER shall bear and pay all taxes and duties imposed in the People’s Republic
        of China in connection with execution and/or performance of this Contract,
        excluding any taxes and duties imposed in the People’s Republic of China upon
        the BUYER’s Supplies described in the Specifications.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        XVI - PATENTS, TRADEMARKS, COPYRIGHTS, ETC.

       

      
        	1.	
                Patents,
                  Trademarks and
                  Copyrights:

              

      

       

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

       

      The
        BUILDER shall defend and save harmless the BUYER from patent liability or
        claims
        of patent infringement of any nature or kind, including costs and expenses
        for,
        or on account of any patented or patentable invention made or used in the
        performance of this Contract and also including costs and expenses of
        litigation, if any.

       

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

       

      The
        BUILDER’s warranty herein does not extend to the BUYER’s Supplies.

       

      
        	2.	
                General
                  Plans, Specifications and Working
                  Drawings:

              

      

       

      The
        BUILDER retains all rights with respect to the Specifications, and plans
        and
        working drawings, technical descriptions, calculations, test results and
        other
        data, information and documents concerning the design and construction of
        the
        VESSEL and the BUYER undertakes therefore not to disclose the same or divulge
        any information contained therein to any third parties, without the prior
        written consent of the BUILDER, excepting where it is necessary for usual
        operation, repair and maintenance of the VESSEL or for enforcing its rights
        under this Contract.

       

      (End
        of
        Article)

       

      
        
          
          

        

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      ARTICLE
        XVII - BUYER’s SUPPLIES

       

      
        	1.	
                Responsibility
                  of the BUYER:

              

      

       

      
        	 	
                (a)

              	
                The
                  BUYER shall, at its own risk, cost and expense, supply and deliver
                  to the
                  SHIPYARD all of the items to be furnished by the BUYER as specified
                  in the
                  Specifications (herein called throughout this Contract the “BUYER’s
                  Supplies”) at the warehouse or other storage of the SHIPYARD in the proper
                  condition ready for installation in or on the VESSEL, in accordance
                  with
                  the time schedule designated by the
                  BUILDER.

              

      

       

      
        	 	
                (b)

              	
                In
                  order to facilitate installation by the BUILDER of the BUYER’s Supplies in
                  or on the VESSEL, the BUYER shall furnish the BUILDER with necessary
                  specifications, plans, drawings, instruction books, manuals, test
                  reports
                  and certificates required by the rules and regulations. The BUYER,
                  if so
                  requested by the BUILDER in writing, shall, without any charge
                  to the
                  BUILDER, cause the representatives of the manufacturers of the
                  BUYER’s
                  Supplies to assist the BUILDER in installation thereof in or on
                  the VESSEL
                  and/or to carry out installation thereof by themselves or to make
                  necessary adjustments thereof at the
                  SHIPYARD.

              

      

       

      
        	 	
                (c)

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

              

      

       

      
        	 	
                (d)

              	
                
                  Should
                    the BUYER fail to deliver any of the BUYER’s Supplies within the time
                    designated by the BUILDER, the Delivery Date shall be automatically
                    extended for a period of such delay in delivery, provided that
                    such delay
                    in delivery shall affect delivery of the VESSEL. In such event,
                    the BUYER
                    shall be responsible and pay to the BUILDER for all losses and
                    damages
                    incurred by the BUILDER by reason of such delay in delivery of
                    the BUYER’s
                    Supplies and such payment shall be made upon delivery of the
                    VESSEL.

                

              

      

       

      If
        delay
        in delivery of any of the BUYER’s Supplies exceeds thirty (30) days, then, the
        BUILDER shall be entitled to proceed with construction of the VESSEL without
        installation thereof in or on the VESSEL, without 

       

      
        
          
          

        

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      prejudice
        to the BUILDER’s other rights as hereinabove provided, and the BUYER shall
        accept and take delivery of the VESSEL so constructed.

       

      
        	2.	
                Responsibility
                  of the BUILDER:

              

      

       

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

       

      
        	3.	
                Joint
                  Responsibility of the Parties
                  hereto:

              

      

       

      Upon
        arrival of such shipment of the BUYER’s Supplies, both Parties shall undertake a
        joint unpacking inspection. If any damages are discovered that render any
        such
        item(s) unsuitable for installation, the BUILDER shall be entitled to refuse
        to
        accept such BUYER’s supplied items.

       

      (End
        of
        Article)

      

      
        
          
          

        

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      ARTICLE
        XVIII - NOTICE AND CORRESPONDENCE

       

      
        	1.	
                Address:G53

              

      

       

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

       

      
        	
                To
                  the BUYER:

              	
                EPTAPROHI
                  SHIPPING CORPORATION.

              
	 	
                C/O:
                  SAFETY
                  MANAGEMENT OVERSEAS S.A.

              
	 	
                32
                  Karamanli Avenue

              
	 	
                166
                  73 Voula

              
	 	
                Athens,
                  Greece

              
	
                Telefax
                  No.:

              	
                +30-210-859
                  6900

              
	 	 
	
                To
                  the BUILDER: 

              	
                Jiangsu
                  Rongsheng Heavy

              
	 	
                Industries
                  Group Co., Ltd.

              
	 	
                No.
                  882, Hong Qiao Road,

              
	 	
                SHANGHAI,
                  200030

              
	 	
                The
                  People’s Republic of China

              
	
                Telefax
                  No. :

              	
                +86-21-64484727

              

      

      

      Any
        change of address shall be communicated in writing by registered mail or
        by
        telefax by the Party making such change to the other party and in the event
        of
        failure to give such notice of change, communications addressed to the party
        at
        their last known address shall be deemed sufficient. Day-to-day communication
        by
        e-mail is permitted.

       

      Any
        and
        all notices, requests, demands, instructions, advice and communications in
        connection with this Contract shall be deemed to be given at, and shall become
        effective from, the time when the same is delivered to the address of the
        party
        to be served, provided, however, that registered airmail shall be deemed
        to be
        delivered ten (10) days after the date of dispatch, express courier service
        shall be deemed to be delivered five (5) days after the date of dispatch,
        and
        the SWIFT transmission for Refund Guarantee shall be deemed to be delivered
        to
        the Buyer and/or the Buyer’s bank on the same day of dispatch from BUILDER’s
        bank.

       

      
        	2.	
                Language:

              

      

       

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

       

      (End
        of
        Article)

      

      
        
          
          

        

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      ARTICLE
        XIX - EFFECTIVE DATE OF CONTRACT

       

      This
        Contract and the Annexes shall become effective as from the date of execution
        and signing hereof by the BUYER and the BUILDER.

       

      (End
        of
        Article)

      

      
        
          
          

        

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      ARTICLE
        XX - INTERPRETATION

       

      
        	1.	
                Laws
                  Applicable:

              

      

       

      The
        Parties hereto agree that the validity and interpretation of this Contract
        and
        of each Article and part hereof shall be governed by the laws of
        England.

       

      
        	2.	
                Discrepancies:

              

      

       

      All
        general language or requirements embodied in the Specifications are intended
        to
        amplify, explain and implement the requirements of this Contract. However,
        in
        the event that any language or requirements so embodied permit an interpretation
        inconsistent with any provisions of this Contract, then in each and every
        such
        event, the applicable provisions of this Contract shall prevail and govern.
        The
        Specifications and plan are also intended to explain each other, and anything
        shown on the plan and not stipulated in the Specifications or stipulated
        in the
        Specifications and not shown on the plan shall be deemed and considered as
        if
        embodied in both. In the event of conflict between the Specifications and
        plan,
        the Specifications shall prevail and govern.

       

      
        	3.	
                Entire
                  Agreement:

              

      

       

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

       

      (End
        of
        Article)

      

      
        
          
          

        

          55
            of 63

          

          

        

        
          
          

        

      
       

      ARTICLE
        XXI - CONFIDENTIALITY

       

      Without
        prejudice to Paragraph 2 of Article XVI, this Contract, especially the Contract
        Price, is confidential between the Parties and its terms and conditions may
        not
        be divulged except as necessary in the performance of the Contract to the
        third
        parties in a business relationship such as financial sources, government
        agencies, vendors, and in connection with any arbitration of this Contract
        or to
        otherwise pursue its rights under this Contract.

       

      (End
        of
        Article)

      

      
        
          
          

        

          56
            of 63

          

          

        

        
          
          

        

      
       

      IN
        WITNESS WHEREOF, the Parties hereto have caused this Contract to be executed
        the
        day and year first above written

       

      
        	
                BUYER:

              	 	
                BUILDER:

              
	
                EPTAPROHI
                  SHIPPING

              	 	
                Jiangsu
                  Rongsheng

              
	
                CORPORATION

              	 	
                Heavy
                  Industries Group Co., Ltd.

              
	 	 	 
	
                /s/
                  Ioannis Fotinos 

              	 	
                /s/
                  Chen Qiang

              
	
                Attorney-in-Fact:
                  IOANNIS FOTINOS

              	 	
                Attorney-in-Fact:
                  Chen Qiang

              

      

       

      
        
          
          

        

          57
            of 63

          

          

        

        
          
          

        

      
       

      EXHIBIT
        A

       

      Form
        of Individual Refundment Guarantee for the 1st
        (2nd, 3rd, 4th)
        Instalment

       

      REFUND
        GUARANTEE

      

        
          	 	
                  BANK
                    REF NO: [...]

                
	 	
                  ISSUING
                    DATE: [...]

                

        

      

       

      TO:
        EPTAPROHI SHIPPING CORPORATION.

       

      In
        consideration of your entering into a Shipbuilding Contract dated December
        6th,
        2006 (hereinafter called the “Contract”) with JIANGSU RONGSHENG HEAVY INDUSTRIES
        GROUP CO., LTD., a corporation organized and existing under the laws of the
        People’s Republic of China, with offices at, No. 882, Hong Qiao Road, SHANGHAI,
        the People’s Republic of China (hereinafter called the “Builder”) for the
        construction of one (1) 176,000-DWT Type Motor Bulk Carrier to be known as
        the
        Builder’s HULL NO. H1074 (hereinafter called the “Vessel”) and in consideration
        of your payment for the account of the Builder the sum of United States Dollars
        Sixteen Million Two Hundred Thousand only (US$16,200,000.00) being the first
        instalment of the Contract Price of the Vessel in accordance with the contract,
        we the bank [...], having our registered office at [...], China (hereinafter
        called the “Bank”), the undersigned, hereby absolutely and irrevocably guarantee
        that we will pay to you upon first written demand from you, an amount up
        to
        United States Dollars Sixteen Million Two Hundred Thousand only
        (US$16,200,000.00) without deduction of any nature of the said instalment
        paid
        by you to the Builder, together with interest thereon as provided in the
        said
        Contract, if and when said instalment becomes refundable from the Builder
        under
        and by virtue of the said Contract.

       

      This
        Letter of Guarantee shall be subject to the following terms:

       

      
        	 	
                1.
                  

              	
                This
                  Letter of Guarantee shall come into force when you have effected
                  the
                  payment of this instalment as per the
                  Contract.

              

      

       

      
        	 	
                2.

              	
                The
                  maximum amount that the Bank, the undersigned, in any eventuality
                  may be
                  obliged to pay to your shall be the sum of United States Dollars
                  Sixteen
                  Million Two Hundred Thousand only (US$16,200,000.00) together with
                  interest calculated at the rate stipulated in said Contract for
                  the terms
                  from the date of the payment of the said instalment to the date
                  of
                  remittance of such refund.

              

      

       

      
        	 	
                3.

              	
                This
                  Letter of Guarantee shall become null and void upon receipt by
                  your
                  company of the amount guaranteed hereby together with interest
                  thereon or
                  upon the acceptance by your company of the delivery of the Vessel
                  

              

      

       

      
        
          
          

        

          58
            of 63

          

          

        

        
          
          

        

      
       

      constructed
        in accordance with terms of the said Contract as evidenced by the Protocol
        of
        Delivery and Acceptance of the VESSEL duly signed by the BUILDER and you
        and in
        this case this Letter of Guarantee shall be returned to us.

       

      
        	 	
                4.

              	
                This
                  Letter of Guarantee shall benefit and ensure to the assignee and
                  successor
                  of this Contract.

              

      

       

      
        	 	
                5.
                  

              	
                This
                  Letter of Guarantee shall be governed by and construed in accordance
                  with
                  the laws of the England. In the event that dispute should arise
                  between
                  yourself and your assignee and us, such dispute shall be settled
                  by
                  arbitration in London in accordance with the laws of
                  England.

              

      

       

      All
        documents specified and presented under this Guarantee, including the demand
        for
        payment, will be examined by us with reasonable care to ascertain whether
        or not
        they appear on their face to conform to the terms of the Guarantee. Where
        such
        documents do not appear so to conform or appear on their face to be inconsistent
        with one another, they shall be refused.

       

      
        	
                Yours
                  faithfully,

              
	 
	
                For

              	 

      

       

      [The
        final form of the Refund Guarantee will be as per agreement between
        BUYER,

      BUILDER,
        BUYER’s BANK and REFUND GUARANTOR]

       

      
        
          
          

        

          59
            of 63

          

          

        

        
          
          

        

      
       

      EXHIBIT
        B

       

      (Draft
        only, subject to BUILDER’s and BUYER’s bank approval)

       

      FORM
        OF
        IRREVOCABLE LETTER OF GUARANTEE

      FOR
        THE
        2nd INSTALMENT

       

      (___________________)
        Bank

       

      Date:
        (___________________)

      

      JIANGSU
        RONGSHENG HEAVY

      INDUSTRIES
        GROUP CO., LTD.

      No.
        882,
        Hong Qiao Road,

      SHANGHAI
        200030

      The
        People’s Republic of China

       

      Dear
        Sirs,

       

      
        	
                (1)

              	
                In
                  consideration of your entering into a Ship Sale Contract
                  dated______________ (“the Shipbuilding Contract”) with SAFETY MANAGEMENT
                  OVERSEAS S.A. as the buyer (“the BUYER”) for the construction of one (1)
                  176,000 Metric Tons Deadweight Bulk Carrier bearing Hull No. H1074
                  (the
                  “VESSEL”), we, ______________, hereby IRREVOCABLY, ABSOLUTELY and
                  UNCONDITIONALLY guarantee, as the primary obligor and not merely
                  as the
                  surety, the due and punctual payment by the BUYER of the 2nd installment
                  of the Contract Price amounting to a sum of United States Dollars
                  Sixteen
                  Million Two Hundred Thousand (US$16,200,000.00) as specified in
                  (2)
                  below.

              

      

       

      
        	
                (2)

              	
                The
                  Installments guaranteed hereunder, pursuant to the terms of the
                  Shipbuilding Contract, comprise the 2nd installment in the amount
                  of
                  United States Dollars Sixteen Million Two Hundred Thousand
                  (US$16,200,000.00) payable by the BUYER within five (5) New York
                  banking
                  days after cutting of the first steel plate in your BUILDER’s
                  workshop.

              

      

       

      
        	
                (3)
                  

              	
                We
                  also IRREVOCABLY, ABSOLUTELY and UNCONDITIONALLY guarantee, as
                  primary
                  obligor and not merely as surety, the due and punctual payment
                  by the
                  BUYER of interest on each installment guaranteed hereunder at the
                  rate of
                  four per cent (4%) per annum from and including the first day after
                  the
                  date of installment in default until the date of full payment by
                  us of
                  such amount guaranteed hereunder.

              

      

       

      
        	
                (4)

              	
                In
                  the event that the BUYER fails to punctually pay any Installment
                  guaranteed hereunder or the BUYER fails to pay any interest thereon,
                  and
                  any such default 

              

      

       

      
        
          
          

        

          60
            of 63

          

          

        

        
          
          

        

      
       

      continues
        for a period of fifteen (15) days, then, upon receipt by us of your first
        written demand, we shall immediately pay to you or your assignee all unpaid
        2nd,
        3rd and 4th installments, together with the interest as specified in paragraph
        (3) hereof, without requesting you to take any or further action, procedure
        or
        step against the BUYER or with respect to any other security which you may
        hold.

       

      
        	
                (5)

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

              

      

       

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

              

      

       

      
        	
                (7)

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

              

      

       

      
        	
                (8)

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

              

      

       

      
        	
                (9)
                  

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

              

      

       

      
        	
                (10)
                  

              	
                The
                  maximum amount, however, that we are obliged to pay to you under
                  this
                  Guarantee shall not exceed the aggregate amount of U.S. Dollars
                  _________
                  being an amount equal to the sum
                  of:-

              

      

       

      
        	 	
                (a)

              	
                All
                  the 2nd installment guaranteed hereunder in the total amount of
                  United
                  

              

      

       

      
        
          
          

        

          61
            of 63

          

          

        

        
          
          

        

      
       

      States
        Dollars Sixteen Million Two Hundred Thousand (US$16,200,000.00);
        and

       

      
        	 	
                (b)
                  

              	
                Interest
                  at the rate of four percent (4%) per annum on the installments
                  for a
                  period of sixty (60) days in the amount of United States Dollars
                  Sixteen
                  Million Two Hundred Thousand
                  (US$16,200,000.00)

              

      

       

      
        	
                (11)

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

              

      

       

      
        	
                (12)
                  

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

              

      

       

      
        	
                (13)

              	
                This
                  Letter of Guarantee shall have expired as aforesaid, you will return
                  the
                  same to us without any request or demand from
                  us.

              

      

       

      
        	
                (14)

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

              

      

       

      
        	
                Very
                  Truly Yours

              
	 
	
                By:

              	 

      

       

      [The
        final form of the Payment Guarantee will be as per agreement between
        BUYER,

      BUILDER,
        BUYER’s BANK and REFUND GUARANTOR]

       

      
        
          
          

        

          62
            of 63

          

          

        

        
          
          

        

      
       

      EXHIBIT
        C

       

      STAGE
        CERTIFICATE

       

       

      Hull
        No.                                       (“the
VESSEL”)
        under
        a Shipbuilding Contract dated
        the                        day
        of               2007
        (“the CONTRACT”)
        made
        between [•] (“the BUYER”)
        and
        [•] (“the BUILDER”).

       

      We
        hereby
        certify in connection with the CONTRACT of the VESSEL that [steel cutting
        has
        commenced] [the first block of keel has been laid] [launching has taken
        place].

       

      
        	
                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:

              	 

      

      

      
        
          
          

        

        
          63
            of 63EXHIBIT
      10.32

     

    SHIPBUILDING
      CONTRACT

     

    OF

     

    ONE
      (1)
      176,000 DWT

     

    BULK
      CARRIER

     

    (HULL
      NO.
      H1075 )

     

    PRELIMINARY
      NAME: TBN 1

     

    BETWEEN

     

    MAXPENTE
      SHIPPING CORPORATION

     

    AS
      BUYER

     

    AND

     

    JIANGSU
      RONGSHENG HEAVY INDUSTRIES GROUP CO., LTD.

     

    AS
      BUILDER

     

    
      
        
        

      

        
        

        

        

      

      
        
        

      

    
    

      
        	
                INDEX

              	 	
                PAGE

              
	 	 	 
	
                PREAMBLE

              	
                5

              
	 	 
	
                ARTICLE
                  I - DESCRIPTION AND CLASS

              	
                6

              
	 	 
	
                1.

              	
                Description:

              	
                6

              
	 	 	 
	
                2.

              	
                Class
                  and Rules:

              	
                6

              
	 	 	 
	
                3.

              	
                Principal
                  Particulars of the VESSEL:

              	
                8

              
	 	 	 
	
                4.

              	
                Subcontracting
                  Construction outside Builder’s Premise:

              	
                9

              
	 	 	 
	
                5.

              	
                Registration:

              	
                9

              
	 	 	 
	
                ARTICLE
                  II - CONTRACT PRICE AND TERMS OF PAYMENT

              	
                10

              
	 	 
	
                1.

              	
                Contract
                  Price:

              	
                10

              
	 	 	 
	
                2.

              	
                Adjustment
                  of Contract Price:

              	
                10

              
	 	 	 
	
                3.

              	
                Currency:

              	
                10

              
	 	 	 
	
                4.

              	
                Terms
                  of Payment:

              	
                10

              
	 	 	 
	
                5.

              	
                Method
                  of Payment:

              	
                12

              
	 	 	 
	
                6.

              	
                Prepayment:

              	
                14

              
	 	 	 
	
                7.

              	
                Refunds:

              	
                14

              
	 	 	 
	
                8.

              	
                Security
                  for Payment of Instalments before Delivery:

              	
                14

              
	 	 	 
	
                ARTICLE
                  III - ADJUSTMENT OF CONTRACT PRICE

              	
                16

              
	 	 
	
                1.

              	
                Delivery:

              	
                16

              
	 	 	 
	
                2.

              	
                Speed:

              	
                17

              
	 	 	 
	
                3.

              	
                Fuel
                  Consumption:

              	
                18

              
	 	 	 
	
                4.

              	
                Deadweight:

              	
                18

              
	 	 	 
	
                5.

              	
                Effect
                  of Rescission:

              	
                19

              
	 	 	 
	
                6.

              	
                Method
                  of Settlement:

              	
                19

              
	 	 	 
	
                ARTICLE
                  IV - APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING
                  CONSTRUCTION

              	
                20

              
	 	 
	
                1.

              	
                Approval
                  of Plans and Drawings:

              	
                20

              
	 	 	 
	
                2.

              	
                Appointment
                  of the BUYER’s REPRESENTATIVE:

              	
                21

              
	 	 	 
	
                3.

              	
                Inspection
                  by REPRESENTATIVE:

              	
                21

              
	 	 	 
	
                4.

              	
                Facilities:

              	
                23

              
	 	 	 
	
                5.

              	
                Liability
                  of the BUILDER:

              	
                23

              
	 	 	 
	
                6.

              	
                Responsibility
                  of the BUYER:

              	
                24

              
	 	 	 
	
                7.

              	
                Salaries
                  and Expenses:

              	
                24

              
	 	 	 
	
                ARTICLE
                  V - MODIFICATION

              	
                25

              
	 	 
	
                1.

              	
                Modification
                  of Specifications:

              	
                25

              

      

       

      
        
          
            
            

          

            2
              of
              68

            
    

            

          

          
            
            

          

        

        
           

        

      

      
        	
                2.

              	
                Change
                  in Class, etc.:

              	
                26

              
	 	 	 
	
                3.

              	
                Substitution
                  of Materials:

              	
                26

              
	 	 	 
	
                ARTICLE
                  VI - TRIALS AND ACCEPTANCE

              	
                28

              
	 	 
	
                1.

              	
                Notice:

              	
                28

              
	 	 	 
	
                2.

              	
                Weather
                  Condition:

              	
                28

              
	 	 	 
	
                3.

              	
                How
                  Conducted:

              	
                29

              
	 	 	 
	
                4.

              	
                Method
                  of Acceptance or Rejection:

              	
                29

              
	 	 	 
	
                5.

              	
                Effect
                  of Acceptance:

              	
                30

              
	 	 	 
	
                6.

              	
                Disposition
                  of Surplus Consumable Stores:

              	
                30

              
	 	 	 
	
                ARTICLE
                  VII - DELIVERY

              	
                31

              
	 	 
	
                1.

              	
                Time
                  and Place:

              	
                31

              
	 	 	 
	
                2.

              	
                Notice:

              	
                31

              
	 	 	 
	
                3.

              	
                When
                  and How Effected:

              	
                31

              
	 	 	 
	
                4.

              	
                Documents
                  to be Delivered to the BUYER:

              	
                31

              
	 	 	 
	
                5.

              	
                Tender
                  of the VESSEL:

              	
                33

              
	 	 	 
	
                6.

              	
                Title
                  and Risk:

              	
                33

              
	 	 	 
	
                7.

              	
                Removal
                  of the VESSEL:

              	
                34

              
	 	 	 
	
                ARTICLE
                  VIII - DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE
                  MAJEURE)

              	
                35

              
	 	 
	
                1.

              	
                Causes
                  of Delay:

              	
                35

              
	 	 	 
	
                2.

              	
                Notice
                  of Delays:

              	
                35

              
	 	 	 
	
                3.

              	
                Definition
                  of Permissible Delays:

              	
                36

              
	 	 	 
	
                4.

              	
                Definition
                  of Non-Permissible Delays:

              	
                36

              
	 	 	 
	
                5.

              	
                Right
                  to Rescind for Excessive Delay:

              	
                36

              
	 	 	 
	
                1.

              	
                Guarantee
                  of Material, Workmanship:

              	
                38

              
	 	 	 
	
                2.

              	
                Notice
                  of Defects:

              	
                38

              
	 	 	 
	
                3.

              	
                Remedy
                  of Defects:

              	
                39

              
	 	 	 
	
                4.

              	
                Extent
                  of BUILDER’s Liability:

              	
                41

              
	 	 	 
	
                ARTICLE
                  X - RESCISSION OF THE CONTRACT

              	
                43

              
	 	 
	
                1.

              	
                Notice:

              	
                43

              
	 	 	 
	
                2.

              	
                Refund
                  by the BUILDER:

              	
                43

              
	 	 	 
	
                3.

              	
                Discharge
                  of Obligations:

              	
                43

              
	 	 	 
	
                4.

              	
                Refundment
                  Guarantee:

              	
                44

              
	 	 	 
	
                ARTICLE
                  XI - BUYER’S DEFAULT

              	
                45

              
	 	 
	
                1.

              	
                Definition
                  of Default:

              	
                45

              
	 	 	 
	
                2.

              	
                Interest
                  and Charge:

              	
                45

              
	 	 	 
	
                3.

              	
                Effect
                  of Default:

              	
                46

              

      

       

      
        
          
          

        

          3
            of
            68

          
  

          

        

        
          
          

        

      
       

      
        	
                4.

              	
                Sale
                  of the VESSEL:

              	
                46

              
	 	 	 
	
                ARTICLE
                  XII - INSURANCE

              	
                48

              
	 	 
	
                1.

              	
                Extent
                  of Insurance Coverage:

              	
                48

              
	 	 	 
	
                2.

              	
                Application
                  of Recovered Amount:

              	
                48

              
	 	 	 
	
                3.

              	
                Termination
                  of the BUILDER’s obligation to insure:

              	
                49

              
	 	 	 
	
                4.

              	
                Insurance
                  Confirmation:

              	
                49

              
	 	 	 
	
                ARTICLE
                  XIII - DISPUTES AND ARBITRATION

              	
                51

              
	 	 
	
                1.

              	
                Proceedings:

              	
                51

              
	 	 	 
	
                2.

              	
                Notice
                  of Award:

              	
                52

              
	 	 	 
	
                3.

              	
                Expenses:

              	
                52

              
	 	 	 
	
                4.

              	
                Entry
                  in Court:

              	
                52

              
	 	 	 
	
                5.

              	
                Alteration
                  of Delivery Time:

              	
                52

              
	 	 	 
	
                ARTICLE
                  XIV - RIGHTS OF ASSIGNMENT

              	
                53

              
	 	 
	
                1.

              	
                Assignment:

              	
                53

              
	 	 	 
	
                2.

              	
                Assignment
                  of Guarantee Claims:

              	
                53

              
	 	 	 
	
                ARTICLE
                  XV - TAXES AND DUTIES

              	
                54

              
	 	 
	
                Taxes
                  and Duties in the People’s Republic of China:

              	
                54

              
	 	 
	
                ARTICLE
                  XVI - PATENTS, TRADEMARKS, COPYRIGHTS, ETC.

              	
                55

              
	 	 
	
                1.

              	
                Patents,
                  Trademarks and Copyrights:

              	
                55

              
	 	 	 
	
                2.

              	
                General
                  Plans, Specifications and Working Drawings:

              	
                55

              
	 	 	 
	
                ARTICLE
                  XVII - BUYER’s SUPPLIES

              	
                56

              
	 	 
	
                1.

              	
                Responsibility
                  of the BUYER:

              	
                56

              
	 	 	 
	
                2.

              	
                Responsibility
                  of the BUILDER:

              	
                57

              
	 	 	 
	
                3.

              	
                Joint
                  Responsibility of the Parties hereto:

              	
                57

              
	 	 	 
	
                ARTICLE
                  XVIII - NOTICE AND CORRESPONDENCE

              	
                58

              
	 	 
	
                1.

              	
                Address:

              	
                58

              
	 	 	 
	
                2.

              	
                Language:

              	
                58

              
	 	 	 
	
                ARTICLE
                  XIX - EFFECTIVE DATE OF CONTRACT

              	
                59

              
	 	 
	
                ARTICLE
                  XX - INTERPRETATION

              	
                60

              
	 	 
	
                1.

              	
                Laws
                  Applicable:

              	
                60

              
	 	 	 
	
                2.

              	
                Discrepancies:

              	
                60

              
	 	 	 
	
                3.

              	
                Entire
                  Agreement:

              	
                60

              
	 	 	 
	
                ARTICLE
                  XXI - CONFIDENTIALITY

              	
                61

              
	 	 
	
                EXHIBIT
                  A

              	
                63

              
	 	 
	
                EXHIBIT
                  B

              	
                65

              

      

    
    
       

    

    END
      OF
      CONTRACT

     

    
      
        
        

      

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    SHIPBUILDING
      CONTRACT

     

    FOR

    ONE
      (1) 176,000-DWT

    BULK
      CARRIER

     

    THIS
      CONTRACT, made on this 6th day of December 2006 by and between JIANGSU RONGSHENG
      HEAVY INDUSTRIES GROUP CO., LTD., a corporation organized and existing under
      the
      laws of the People’s Republic of China, having its business office at No. 882,
      Hong Qiao Road, Shanghai 200030, the People’s Republic of China (hereinafter
      called the “BUILDER”), the party of the first part, and MAXPENTE SHIPPING
      CORPORATION, a corporation organized and existing under the laws of Liberia,
      having its principal office at 80 Broad street, Monrovia, Liberia (hereinafter
      called the “BUYER”), the party of the second part, them also being referred to
      individually as the “Party” or collectively as the “Parties”
hereinafter.

     

    W
      I T N E S S E T H
      :

     

    IN
      CONSIDERATION OF the mutual covenants contained herein, the BUILDER agrees
      to
      build, launch, equip and complete at the BUILDER’s SHIPYARD, Rugao Jiangsu
      Province P.R.China(hereinafter called the “SHIPYARD”) and to sell and deliver to
      the BUYER after completion and successful trial one (1) 176,000 DWT Bulk Carrier
      (hereinafter called the “VESSEL”) as more fully described in Article I hereof
      and the relevant Exhibits hereto, to be registered under the flag of Malta
      and
      the BUYER agrees to purchase and take delivery of the aforesaid Vessel from
      the
      BUILDER at the SHIPYARD and to pay for the same in accordance with the terms
      and
      conditions hereinafter set forth.

     

    
      
        
        

      

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    ARTICLE
      I - DESCRIPTION
      AND CLASS

     

    
      	1.	
              Description:

            

    

     

    The
      VESSEL shall be a 176,000 DWT Bulk Carrier, at scantling draft moulded of 18.25
      meters of the class described below. The VESSEL shall have the BUILDER’s Hull
      No. H1075 and shall be constructed, equipped and completed in accordance with
      the following Specifications and Plans of the date hereof signed by the Parties
      hereto (hereinafter collectively called the “Specifications”), which are hereby
      incorporated into this Contract and made an integral part hereof.

     

    
      	
            	(1)	
              Specification
                for 176,000 DWT Bulk Carrier (Drawing No. SC4481-010-02SM(0000101B))
                (For
                avoidance of any doubt, this VESSEL technically does not comply with
                IMO
                Performance Standard for Protective Coatings for dedicated seawater
                ballast tanks.)

            

    

     

    
      	
            	(2)	
              General
                Arrangement (Drawing No. 0000001)

            

    

     

    
      	
            	(3)	
              Midship
                Section (Drawing No. 0000002)

            

    

     

    
      	
            	(4)	
              Makers
                List for Equipment (Drawing No.
                SC4481-010-05MX)

            

    

     

    
      	
            	(5)	
              Memo
                (Ref. No.:
                SC4481-010-02SM(0000101B)-M1)

            

    

     

    The
      vessel to be constructed as identical sistership of Hull no. H1074 in accordance
      with above specifications (1) through (5).

     

    
      	2.	
              Class
                and Rules:

            

    

     

    The
      VESSEL, including its machinery and equipment, shall be designed and constructed
      in accordance with the rules and regulations of Det Norske Veritas (DNV) or
      Lloyd’s Register (LR)(hereinafter called the “Classification Society”) issued
      and having become effective up to and on the date of signing this Contract.
      The
      vessel is to be classed and registered according to the following notations
      or
      the equivalent LR notation:

     

    +1A1,
      Bulk carrier ESP, BC-A, Holds 2,4,6 and 8 may be empty, CSR, GRAB(25), ES(S),
      bis, BWM-E(s), E0, TMON, OPP-F.

     

    Upon
      delivery, the Vessel shall also comply with the rules, regulations and
      requirements of other regulatory bodies as specifically described in
      the

     

    
      
        
        

      

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    Specifications,
      all the foregoing rules, regulations and requirements and amendments thereto
      including those of the Classification Society and other regulatory bodies (as
      specified in the Specifications) applicable to the Vessel shall be those which
      entered into force on or before the date of signing of this Contract. Decisions
      of the Classification Society as to compliance or non-compliance with their
      rules and regulations shall be final and binding upon the Parties hereto. Any
      amendments, variations or modifications to any of the above standards, rules
      or
      regulations in force and compulsively applicable to the vessel issued and having
      become effective up to and on the date of signing this Contract shall be
      complied with in addition to the above standards, rules and
      regulations.

     

    The
      Contract Price as set forth in Article III entitled Contract Price is based
      on
      the version and amendments of the rules and regulations which are in force
      up to
      and on the date of signing this Contract as fully described in the
      Specifications. It is stated hereto that the Contract Price as set forth in
      Article III does not include any cost involved by the upcoming new IMO
      performance standard for protective coatings for dedicated seawater ballast
      tanks in all types of ships, i.e. amendments for SOLAS regulations II-1/3-2
      and
      XII/6.3.

     

    The
      BUILDER shall arrange with the Classification Society to assign a representative
      or representatives (hereinafter called the “Classification Surveyor”) to the
      BUILDER’s SHIPYARD for supervision of the construction of the
      VESSEL.

     

    All
      fees
      and charges incidental to the Classification Society and to comply with the
      compulsory rules, regulations and requirements of this Contract as described
      in
      the Specifications issued, in effect and applicable up to the date of signing
      this Contract as well as royalties, if any, payable on account of the
      construction of the VESSEL shall be for the account of the BUILDER, except
      as
      otherwise provided and agreed herein.

     

    Any
      change in VESSEL resulting from changes in the rules and regulations other
      than
      set forth above shall be mutually agreed between the Parties whether in respect
      of the Contract Price, delivery date, deadweight adjustments and others, in
      accordance with Article V - Modification, Changes and Extras, however, with
      the
      exception of any cost incurred as a result from changes in such rules and
      regulations compulsory to the construction of the VESSEL coming into force
      after
      January 31st, 2010 but before the Newly Planned Delivery Date in case of delay
      of the Delivery Date as defined in Article VII hereof, unless
      such
      delay is a Permissible Delay as defined in Paragraph 4 in Article VIII
      hereinafter.

     

    Decision
      of the Classification Society as to the compliance or noncompliance with the
      classification rules and regulations including those statutory rules and
      regulations which the Classification Society is authorized to act on behalf
      of
      the relevant authorities shall be final and binding upon the Parties
      hereto.

     

    
      
        
        

      

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      	3.	
              Principal
                Particulars of the
                VESSEL:

            

    

     

    
      	
            	(a)	
              Hull:

            

    

     

    
      
        	
                Length
                  overall

              	
                abt.
                  291.80 m

              
	
                Length
                  between perpendiculars

              	
                282.20
                  m

              
	
                Breadth
                  moulded

              	
                45.00
                  m

              
	
                Depth
                  moulded

              	
                24.75
                  m

              
	
                Designed
                  draught moulded

              	
                16.50
                  m

              
	
                Scantling
                  draught moulded

              	
                18.25
                  m

              
	
                Deadweight
                  at scantling draft (summer load line) in sea water of 1.025 specific
                  gravity

              	
                176,000
                  mt

              

      

    

     

    
      	
            	(b)	
              Propelling
                Machinery and Guaranteed Speed:

            

    

     

    The
      VESSEL shall be equipped, in accordance with the Specifications, with one (1)
      set of MAN B&W 6S70MC Mark VI type Main Engine manufactured in Korea under
      license in line with the Makers List for Equipment. The BUILDER guarantees
      that
      the trial speed, after correction, is to be not less than 14.9 knots at design
      draft (16.50m) at continuous output of main engine of 14,331KW at 86.2 rpm
      (85%
      MCR) with 15% sea margin on clean hull in deep sea water and under Beaufort
      wind
      force 4 (hereinafter called the “Guaranteed Speed”). The trial speed shall be
      corrected for the actual wind speeds and directions and shallow water effect
      at
      the time of the speed test runs. The correction method of the speed shall be
      as
      specified in the Specifications.

     

    
      	
            	(c)	
              Guaranteed
                Deadweight:

            

    

     

    The
      BUILDER guarantees that the VESSEL is to have a deadweight of not less than
      176,000 metric tons at scantling draft even keel of 18.25 meters in sea water
      of
      1.025 specific gravity.

     

    The
      term,
“Deadweight”, as used in this Contract, shall be as defined in the
      Specifications.

     

    The
      actual deadweight of the VESSEL expressed in metric tons shall be based on
      calculations made by the BUILDER and checked by the BUYER and the Classification
      Society, and all measurements necessary for such calculations shall be performed
      in the presence of the BUYER’s REPRESENTATIVE(s) or the party authorized by the
      BUYER and the Classification Society.

     

    
      
        
        

      

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    Should
      there be any dispute between the BUILDER and the BUYER in such calculations
      and/or measurements, the decision of the Classification Society shall be final
      and binding on the Parties hereto.

     

    
      	
            	(d)	
              Guaranteed
                Fuel Oil Consumption:

            

    

     

    The
      BUILDER guarantees that the fuel oil consumption of the Main Engine is not
      to
      exceed 169 grams/(kilowatt
      x
hour)
      at MCR
      at shop trial based on diesel fuel oil having a lower calorific value of 10,200
      kilocalories per kilogram at ISO standard condition (hereinafter called the
      “Guaranteed Fuel Consumption”). The fuel oil consumption shall be calculated
      accordingly based on the conversion formula issued by B&W; all as per
      Specifications which in case of doubt shall prevail.

     

    
      	4.	
              Subcontracting
                Construction outside Builder’s
                Premise:

            

    

     

    The
      BUILDER may, at its sole responsibility, subcontract any part of the vessel
      to
      experienced subcontractors within China and may, at the BUILDER’s sole
      discretion, construct and assemble the blocks in such premise provided that
      the
      BUILDER shall remain fully responsible for such subcontracted work or
      construction in other premise, provided the substantial part of the vessel
      shall
      be constructed and completed in the BUILDER’s SHIPYARD.

     

    
      	5.	
              Registration:

            

    

     

    The
      VESSEL shall be registered by the BUYER at its own cost and expenses under
      the
      laws of Malta at the time of delivery and acceptance of the VESSEL
      hereunder.

     

    If
      any
      certificate is not applicable by Maltese authorities, the BUYER shall assist
      the
      BUILDER to obtain exemption of the said certificates in order to register the
      VESSEL under the flag of Malta.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      II - CONTRACT
      PRICE AND TERMS OF PAYMENT

     

    
      	1.	
              Contract
                Price:

            

    

     

    The
      purchase price of the VESSEL is United States Dollars Eighty Million only
      (US$80,000,000.-) net receivable by the BUILDER (hereinafter called the
“Contract Price”), which is exclusive of the BUYER’s Supplies as provided in
      Article XVII hereof, and shall be subject to upward or downward adjustment,
      if
      any, as hereinafter set forth in this Contract.

     

    The
      Contract Price also includes all costs and expenses for supplying all necessary
      drawings, certificates and ship’s model as stipulated in the Specifications,
      except those to be furnished by the BUYER in accordance with the
      Specifications.

     

    
      	2.	
              Adjustment
                of Contract Price:

            

    

     

    Adjustment
      of the Contract Price, if any, in accordance with provisions of this Contract
      shall be made by way of addition to or subtraction from the instalment due
      and
      payable upon delivery of the VESSEL, or if this instalment or others will not
      suffice, from the respective instalment prior thereto, in the manner as
      hereinafter provided.

     

    
      	3.	
              Currency:

            

    

     

    Any
      and
      all payments by the BUYER to the BUILDER under this Contract shall be made
      in
      United States Dollars. All lifting charge, if any, incurred in respect of the
      payments made at other banks than the BUILDER’s nominated bank in the People’s
      Republic of China specified in Paragraph 5 of this Article shall be for the
      BUYER’s account.

     

    
      	4.	
              Terms
                of Payment:

            

    

     

    The
      Contract Price including any adjustment thereof shall be paid by the BUYER
      to
      the BUILDER in five (5) instalments as follows:

     

    
      	
            	(a)	
              1st
                Instalment:

            

    

     

    The
      sum
      of United States Dollars Sixteen Million Only (US$16,000,000.00) representing
      twenty percent (20%) of the Contract Price shall be paid by the BUYER within
      five (5) banking days after the BUYER’s receipt of the original

     

    
      
        
        

      

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    Refund
      Guarantee for 1st instalments in the form set out in Exhibit A

     

    
      	
            	(b)	
              2nd
                Instalment

            

    

     

    The
      sum
      of United States Dollars Sixteen Million Only ( US$16,000,000.00) representing
      twenty percent (20%) of the Contract Price shall be paid by the BUYER within
      five (5) banking days after receipt by the BUYER of a Stage Certificate signed
      by the BUILDER, the BUYER’s REPRESENTATIVE and the Classification Society
      Surveyor in the form set out in Exhibit C hereto certifying that steel-cutting
      of the VESSEL has taken place but always provided that the 2nd
      Instalment shall not be payable earlier than fifteen (15) months prior to the
      Delivery Date and Buyer’s receipt of the original Refund Guarantee covering the
      refund of the second instalment in the form of hereto attached as Exhibit A
      whichever is later.

     

    
      	
            	(c)	
              3rd
                Instalment:

            

    

     

    The
      sum
      of United States Dollars Sixteen Million Only (US$16,000,000.00) representing
      twenty percent (20%) of the Contract Price shall be paid within five (5) banking
      days after receipt by the BUYER of a Stage Certificate signed by the BUILDER,
      the BUYER’s REPRESENTATIVE and the Classification Society Surveyor in the form
      set out in Exhibit C hereto certifying that laying of the first block of the
      keel of the VESSEL has taken place always provided that this instalment shall
      not become due and payable earlier than tweleve (12) months before the Delivery
      Date and and Buyer’s receipt of the original Refund Guarantee covering the
      refund of the third instalment in the form of hereto attached as Exhibit A
      whichever is later.

     

    
      	
            	(d)	
              4th
                Instalment:

            

    

     

    The
      sum
      of United States Dollars Sixteen Million Only (US$16,000,000.00) representing
      twenty percent (20%) of the Contract Price shall be paid within

     

    
      
        
        

      

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    five
      (5)
      banking days after receipt by the BUYER of a Stage Certificate signed by the
      BUILDER, the BUYER’s REPRESENTATIVE and the Classification Society Surveyor in
      the form set out in Exhibit C hereto certifying that launching of the VESSEL
      has
      taken place and Buyer’s receipt of the original Refund Guarantee covering the
      refund of the 4th
      instalment in the form of hereto attached as Exhibit A whichever is
      later.

     

    
      	
            	(e)	
              5th
                Instalment:

            

    

     

    The
      sum
      of United States Dollars Sixteen Million Only (US$16,000,000.00) representing
      twenty percent (20%) of the Contract Price plus any increase or minus any
      decrease due to modification and/or adjustment of the Contract Price hereunder
      in accordance with the provisions of the relevant Articles hereof shall be
      paid
      upon delivery of the VESSEL. In accordance with the Contract and Specifications
      and acceptance by the BUYER and delivery by the BUILDER to the BUYER of the
      documents set out in Article VII

     

    The
      parties hereto shall use their best endeavours to agree on all adjustments
      of
      the Contract Price, if any, not later than three (3) banking days prior to
      the
      scheduled delivery date of the VESSEL.

     

    The
      date
      on which any of the above instalments falls to be paid under this Contract
      shall
      be referred to as the “Due
      Date”
in
      this
      Contract.

     

    
      	5.	
              Method
                of Payment:

            

    

     

    
      	
            	(a)	
              1st
                Instalment:

            

    

     

    On
      or
      before the Due Date for payment of the 1st
      intallment, the BUYER shall remit the amount of this instalment by telegraphic
      transfer to the BANK nominated by the BUILDER at least five (5) banking days
      prior to the Due Date with U.S. Dollar Saving account (hereinafter called the
      “BANK”)
      for
      the account of the BUILDER quoting the reference “Hull H 1075

     

    
      	
            	(b)	
              2nd
                Instalment:

            

    

     

    The
      BUILDER shall by written notice by facsimile notify the BUYER at least seven
      (7)
      banking days prior to the scheduled steel-cutting date.

     

    
      
        
        

      

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    On
      or
      before the Due Date for payment of the 2nd
      Instalment, the BUYER shall remit the amount of this instalment by telegraphic
      transfer to the BANK for the account of the BUILDER quoting the reference “Hull
      H1075”.

     

    
      	
            	(c)	
              3rd
                Instalment:

            

    

     

    The
      BUILDER shall by written notice by facsimile notify the BUYER at least seven
      (7)
      banking days prior to the scheduled keel-laying date.

     

    On
      or
      before the Due Date for payment of the 3rd
      Instalment, the BUYER shall remit the amount of this instalment by telegraphic
      transfer to the BANK for the account of the BUILDER quoting the reference “Hull
      H1075”.

     

    
      	
            	(d)	
              4th
                Instalment:

            

    

     

    The
      BUILDER shall by written notice by facsimile notify the BUYER at least seven
      (7)
      banking days prior to the scheduled launching date.

     

    On
      or
      before the Due Date for payment of the 4th
      Instalment, the BUYER shall remit the amount of this instalment by telegraphic
      transfer to the BANK for the account of the BUILDER quoting the reference “Hull
      H1075”.

     

    
      	
            	(e)	
              5th
                Instalment:

            

    

     

    The
      BUILDER shall by provide a detailed written notice to the BUYER by facsimile
      setting out any adjustment, of the Contract Price in accordance with the
      Contract not later than fourteen (14) banking days prior to the scheduled
      Delivery Date.

     

    The
      BUILDER shall by written notice by facsimile notify the BUYER seven (7) banking
      days prior to the scheduled delivery date.

     

    The
      BUYER
      shall, at least three (3) banking days prior to the scheduled delivery date
      of
      the VESSEL, remit by bank transfer the amount of the 5th
      Instalment as adjusted to the BANK, to be held for the account of the BUYER
      to
      be released to the BUILDER against presentation by the BUILDER to the BANK
      of a
      copy of the Protocol of Delivery and Acceptance of the VESSEL executed by the
      BUILDER and the BUYER as set forth in Paragraph 3 of Article VII hereof together
      with an invoice for the amount due for the 5th 

     

    
      
        
        

      

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    Instalment.

     

    For
      the
      purpose of this Contract, “banking day” means any day excluding Saturday, Sunday
      and public holidays in New York, Beijing, Hong Kong, Piraeus and
      London.

     

    
      	6.	
              Prepayment:

            

    

     

    Prepayment
      of any instalment due on or before delivery of the VESSEL shall be subject
      to
      mutual agreement between the Parties hereto.

     

    
      	7.	
              Refunds:

            

    

     

    All
      payments made by the BUYER prior to the delivery of the VESSEL shall be in
      the
      nature of advance to the BUILDER, and in the event this Contract is rescinded
      and/or cancelled by the BUYER, all in accordance with the specific terms of
      this
      Contract or the law permitting such cancellation, the BUILDER shall refund
      to
      the BUYER in United States Dollars the full amount of all sums already paid
      by
      the BUYER to the BUILDER under this Contract, together with interest at the
      rate
      of eight per cent (8%) per annum from the respective payment date(s) to the
      date
      of remittance by telegraphic transfer of such refund to the account specified
      by
      the BUYER. If the BUILDER is required to refund to the BUYER the instalments
      paid by the BUYER to the BUILDER as provided in this Article, the BUILDER shall
      return to the BUYER all of the BUYER’s supplies as stipulated in Article V which
      were not incorporated in the VESSEL and pay to the BUYER an amount equal to
      the
      cost to the BUYER of those supplies that were incorporated to the
      VESSEL.

     

    As
      security to the BUYER for the payment of the 1st,
      2nd,
      3rd
      and
      4th
      instalments paid prior to the delivery of the VESSEL, the BUILDER shall, within
      five (5) banking days prior to each installment, respectively provide the
      BUYER’s bank with an individual Refund Guarantee for each of the 1st,
      2nd,
      3rd
      and
      4th
      instalments to be issued by a reputable Chinese and/or international bank and/or
      international insurance company at the BUILDERS’s option acceptable to Buyers
      and Buyers bank (the “Refund Guarantor”), in the form and substance of Exhibit A
      with reasonable amendments, if any. All four Refund Guarantees must be
      registered with SAFE,

     

    
      	8.	
              Security
                for Payment of Instalments before
                Delivery:

            

    

     

    
      
        
        

      

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    The
      BUYER
      shall, concurrently with the payment of 1st
      instalment of the Contract Price, deliver to the BUILDER an irrevocable and
      unconditional letter of guarantee (“Payment Guarantee”) issued by a bank to be
      nominated by BUYER (“Payment Guarantor”). Such Payment Guarantee issued by the
      Payment Guarantor in a form annexed hereto as Exhibit B, in favour of the
      BUILDER, shall guarantee the BUYER’s obligation for the payment of the
      2nd
      instalment of the Contract Price. All cost, fees and duties for such Payment
      Guarantee shall be borne by BUILDER. Such Payment Guarantee shall be acceptable
      to BUILDER and BUILDER’s bank.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      III - ADJUSTMENT
      OF CONTRACT PRICE

     

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

     

    
      	1.	
              Delivery:

            

    

     

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

            

    

     

    
      	
            	(b)	
              If
                the delivery of the VESSEL is delayed more than thirty (30) days
                after the
                Delivery Date, then, in such event, beginning at twelve o’clock midnight
                of the thirtieth (30th) day after the Delivery Date, the Contract
                Price
                shall be reduced by deducting therefrom the sum of United States
                Dollar
                fifteen thousand only (US$15,000.-) per day from the thirtieth (30th)
                day
                till the date of actual delivery as set forth in Article VII
                hereof.

            

    

     

    Unless
      the Parties hereto agree otherwise, the total reduction in the Contract Price
      shall be deducted from the Contract Price payable.

     

    
      	
            	(c)	
              But
                if the delay in delivery of the VESSEL should continue for a period
                of one
                hundred eighty (180) days from the thirty-first (31st) day after
                the
                Delivery Date, then, in such event, and after such period has expired,
                the
                BUYER may at its option rescind or cancel this Contract in accordance
                with
                the provisions of Article X hereof. The BUILDER may, at any time
                after the
                expiration of the aforementioned one hundred eighty (180) days of
                delay in
                delivery, if the BUYER has not served notice of rescission as provided
                in
                Article X hereof, demand in writing that the BUYER shall make an
                election,
                in which case the BUYER shall, within fifteen (15) days after such
                demand
                is received by the BUYER, notify the BUILDER of its intention either
                to
                rescind/cancel this Contract or to consent to the acceptance of the
                VESSEL
                at agreed reduction price and at agreed future date (the “Newly Planned
                Delivery Date”); it being understood by the parties hereto that, if the
                VESSEL is not delivered by such Newly Planned Delivery Date, the
                BUYER
                shall have the same right of rescission or cancellation upon the
                same
                terms and conditions as hereinabove
                provided.

            

    

     

    
      	
            	(d)	
              For
                the purpose of this Article, the delivery of the VESSEL shall be
                deemed to
                be delayed when and if the VESSEL, after taking into full account
                all
                postponements of the Delivery Date by reason of Permissible Delays
                as

            

    

     

    
      
        
        

      

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    defined
      in Article VIII, is not delivered by the date upon which delivery is required
      under the terms of this Contract.

     

    
      	
            	(f)	
              In
                the event that the BUILDER is unable to deliver the Vessel on the
                Newly
                Planned Delivery Date as declared, the VESSEL can, nevertheless,
                be
                delivered by the BUILDER at a date after such declared Newly Planned
                Date.

            

    

     

    In
      such
      circumstances, and for the purpose of determining the liquidated damages and/or
      penalties to the BUYER (according to the provisions of Paragraph 1(b) of this
      Article) and the BUYER’s right to cancel or rescind this Contract (according to
      the provisions of Paragraph 1(c) of this Article), the Newly Planned Delivery
      Date declared by the BUILDER shall not be in any way treated or taken as having
      substituted the original Delivery Date as defined in Article VII. The BUYER’s
      aforesaid right for liquidated damages and/or penalties and/or to cancel or
      rescind this Contract shall be accrued, operated or exercised only to the extent
      as described in Paragraph 1(a), 1(b) and/or 1(c) of Article III. In whatever
      circumstances, the Delivery Date as defined in Article VII (not the Newly
      Planned Delivery Date as declared by the BUILDER) shall be used to regulate,
      as
      so described in Paragraph 1 (a), 1(b) and/or 1(c) of Article III, the BUYER’s
      right for liquidated damages and/or penalties and to rescind this Contract
      and
      the BUILDER’s liability to pay the aforesaid liquidated damages and/or penalties
      resulting from the delay in delivery of the VESSEL.

     

    
      	2.	
              Speed:

            

    

     

    
      	
            	(a)	
              The
                Contract Price shall not be affected or changed by reason of the
                actual
                speed, as determined by trial run, being less than three-tenths (3/10)
                of
                one (1) knot below the Guaranteed Speed of the VESSEL specified and
                required under Paragraph 3(b) of Article I of this Contract (hereinafter
                called the Guaranteed Speed”).

            

    

     

    
      	
            	(b)	
              However,
                commencing with and including such deficiency of three-tenths (3/10)
                of
                one (1) knot in actual speed below the Guaranteed Speed of the VESSEL,
                the
                Contract Price shall be reduced as follows (but disregarding fractions
                of
                one-tenth (1/10) of a knot):

            

    

     

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

            	
              -

            	
              a
                total sum of US$100,000.-

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

            	
              -

            	
              a
                total sum of US$150,000.-

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

            	
              -

            	
              a
                total sum of US$260,000.-

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

            	
              -

            	
              a
                total sum of US$400,000.-

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

            	
              -

            	
              a
                total sum of US$550,000.-

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

            	
              -

            	
              a
                total sum of US$700,000.-

            

    

     

    
      
        
        

      

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            	(c)	
              If
                the deficiency in actual speed of the VESSEL upon trial run is more
                than
                nine-tenths (9/10) of a knot below the Guaranteed Speed of the VESSEL,
                then the BUYER may, at its option, reject the VESSEL and rescind
                this
                Contract in accordance with the provisions of Article X hereof, or
                may
                accept the VESSEL at a reduction in the Contract Price as above provided,
                that is, at a total reduction of United States Dollars seven hundred
                thousand only (U.S.$700,000.-).

            

    

     

    
      	3.	
              Fuel
                Consumption:

            

    

     

    
      	
            	(a)	
              The
                Contract Price shall not be affected or changed by reason of the
                fuel
                consumption of the Main Engine, as determined by shop trial as per
                the
                Specifications, being more than the Guaranteed Fuel Consumption of
                the
                Main Engine of 169 grams/(kilowatt
                x
                hour)
                at MCR specified and required under Paragraph 3(d) of Article I of
                this
                Contract, if such excess is not more than five percent (5%) over
                the
                Guaranteed Fuel Consumption.

            

    

     

    
      	
            	(b)	
              However,
                commencing with and including an excess of five percent (5%) in the
                actual
                fuel consumption over the Guaranteed Fuel Consumption of the Main
                Engine,
                the Contract Price shall be reduced by the sum of United States Dollars
                (US$100,000.-) for each full one percent (1%) increase in fuel consumption
                above said five percent (5%) (fractions of one percent (1%) to be
                prorated), up to a maximum of eight percent (8%) over the Guaranteed
                Fuel
                Consumption of the Main Engine.

            

    

     

    
      	
            	(c)	
              If
                such actual fuel consumption exceeds eight percent (8%) of the Guaranteed
                Fuel Consumption of the Main Engine, the BUYER may, at its option,
                reject
                the VESSEL and rescind this Contract in accordance with the provisions
                of
                Article X hereof, or may accept the VESSEL at a reduction in the
                Contract
                Price as above specified for eight percent (8%) only, that is, at
                a total
                reduction of United States Dollars three hundred thousand
                (US$300,000.-).

            

    

     

    
      	4.	
              Deadweight:

            

    

     

    
      	
            	(a)	
              The
                Contract Price shall not be affected or changed by reason of the
                actual
                deadweight tonnage determined as provided for in the Specifications
                being
                below the deadweight tonnage specified and required under Paragraph
                3(c)
                of Article I of this Contract (hereinafter called the “Guaranteed
                Deadweight”), if such deficiency in the actual deadweight tonnage is not
                more than one thousand (1,000) metric
                tons.

            

    

     

    
      
        
        

      

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            	(b)	
              In
                the event that the actual deadweight of the VESSEL as determined
                in
                accordance with the Specifications is less than the guaranteed deadweight
                of the VESSEL, the Contract Price shall be reduced by the sum of
                United
                States Dollars one thousand (US$1,000.-) for each full metric ton
                of such
                deficiency being more than one thousand (1,000) metric tons, up to
                a
                maximum reduction of United States Dollars one million five hundred
                (U.S.$1,500,000.-) but disregarding fractions of one (1) metric
                ton.

            

    

     

    
      	
            	(c)	
              In
                the event of such deficiency in the actual deadweight of the VESSEL
                being
                two thousand five hundred (2,500) metric tons or more, then the BUYER
                may,
                at its option, reject the VESSEL and rescind this Contract in accordance
                with the provisions of Article X hereof, or may accept the VESSEL
                at a
                reduction in the Contract Price as above provided for metric tons
                only,
                that is, at a total reduction of United States Dollars one million
                five
                hundred (US$1,500,000.-).

            

    

     

    
      	5.	
              Effect
                of Rescission:

            

    

     

    It
      is
      expressly understood and agreed by the Parties hereto that in any case, if
      the
      BUYER rescinds this Contract under this Article, the BUYER, subject to the
      provisions of Article X hereof, shall not be entitled to any liquidated damages,
      other than the refund of the instalments already paid and payment of interest
      accrued thereon as provided in Article X hereof.

     

    
      	6.	
              Method
                of Settlement:

            

    

     

    Every
      and
      all adjustment of the Contract Price provided in this Article shall be balanced
      at the payment due upon delivery of the VESSEL.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      IV - APPROVAL
      OF PLANS AND DRAWINGS
AND
      INSPECTION DURING CONSTRUCTION

     

    
      	1.	
              Approval
                of Plans and Drawings:

            

    

     

    
      	
            	(a)	
              The
                BUILDER shall submit to the BUYER four (4) copies each of the plans
                and
                drawings to be submitted thereto for its approval at its address
                as set
                forth in Article XVIII hereof.

            

    

     

    The
      BUYER
      shall, within three (3) weeks after the date of receipt before keel-laying
      of
      the VESSEL, and/or within two (2) weeks after the date of receipt after
      keel-laying of the VESSEL, return by courier service to the BUILDER two (2)
      copies of such plans and drawings including one (1) copy to be transferred
      to
      the REPRESENTATIVE (as defined hereinafter) with the BUYER’s approval or
      qualified approval with comments written thereon, if any. The BUILDER shall
      give
      reply regarding BUYER’s comments within two (2) weeks from the date of receipt.
      If the BUILDER fails to reply, the BUYER’s approval comments shall be deemed
      accepted by the BUILDER.

     

    In
      case
      the said plans and drawings shall not be returned to the BUILDER from the BUYER
      within the time limit as hereinabove provided, the BUILDER shall give the BUYER
      notice by telefax and the BUYER shall acknowledge and inform the BUILDER of
      the
      status of approval and if such plans and drawings are not returned to the
      BUILDER within further five (5) days after the BUILDER’s telefax, such plans and
      drawings shall be deemed to have been automatically approved without comments
      unless otherwise agreed.

     

    
      	
            	(b)	
              When
                and if the REPRESENTATIVE (as defined hereinafter) shall have been
                sent by
                the BUYER to the SHIPYARD in accordance with Paragraph 2 of this
                Article,
                the BUILDER may, however at the BUYER’s express written consent only,
                submit the remainder, if any, of the plans and drawings in the agreed
                list, to the REPRESENTATIVE for his approval. The REPRESENTATIVE
                shall,
                within two (2) weeks after receipt thereof, return to the BUILDER
                one (1)
                copy of such plans and drawings with his approval or qualified approval
                with comments written thereon, if
                any.

            

    

     

    Approval
      by the REPRESENTATIVE of the plans and drawings duly submitted to him shall
      be
      deemed to be the approval by the BUYER for all purposes of this
      Contract.

     

    
      	
            	(c)	
              In
                the event that the BUYER or the REPRESENTATIVE shall fail to return
                the
                plans and drawings to the BUILDER within the time limit as hereinabove
                specified, such plans and drawings shall be deemed to have been
                automatically approved without any
                comment.

            

    

     

    
      
        
        

      

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    The
      approval of plans and drawings by the BUILDER shall not alter or diminish the
      responsibility of the BUILDER to design and construct the VESSEL in accordance
      with the Contract, the Specifications and Plans.

     

    
      	
            	(d)	
              All
                documents, drawings, calculations, instruction manuals, etc. which
                are
                submitted to the BUYER, shall be in English
                only.

            

    

     

    
      	2.	
              Appointment
                of the BUYER’s
                REPRESENTATIVE:

            

    

     

    The
      BUYER
      may timely send to and maintain at the SHIPYARD a REPRESENTATIVE who shall
      be
      duly authorized in writing by the BUYER (herein called the “REPRESENTATIVE”) to
      act on behalf of the BUYER in connection with modifications of the
      Specifications, approval of the plans and drawings, attendance to the tests
      and
      inspections relating to the VESSEL, its machinery, equipment and outfitting,
      and
      any other matters for which he is specifically authorized by the
      BUYER.

     

    The
      BUYER
      may also send to and maintain at the SHIPYARD up to seven (7) assistants to
      the
      REPRESENTATIVE. The BUYER may also send to and maintain at the Main Engine
      Manufacturer’s factory, at the BUYER’s own cost and expense, two (2) assistants
      for the period from 3 months prior to the bed assembling up to completion of
      shop test.

     

    
      	3.	
              Inspection
                by REPRESENTATIVE:

            

    

     

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

     

    The
      REPRESENTATIVE and his assistants shall at all times during working hours during
      the construction until delivery and acceptance of the VESSEL, have the right
      to
      inspect the VESSEL, and all work in progress, materials utilized and quality
      of
      work in connection with the construction thereof wherever such work is being
      done within the SHIPYARD’s premises or such materials and equipment are stored,
      and the premise of subcontractors of the BUILDER who are doing work or storing
      materials in connection with the VESSEL’s construction, for the purpose of
      determining the VESSEL is being constructed in accordance with the terms of
      this
      CONTRACT and the Specifications and Plans. The REPRESENTATIVE and his assistants
      shall have the unrestricted right to visit the VESSEL and all work
      in

     

    
      
        
        

      

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    progress.

     

    The
      REPRESENTATIVE and his assistants shall also have the right to visit, with
      the
      BUILDER’s attendance or introduction as necessary, all property utilized in
      connection with the construction of the VESSEL, wherever and whenever such
      property is stored. The REPRESENTATIVE and his assistants may, with the
      BUILDER’s permission, visit all property of the BUILDER wherever any work for
      the VESSEL is to be done. Such permission shall not be unreasonably withheld
      by
      the BUILDER.

     

    The
      BUILDER shall give a notice to the REPRESENTATIVE and his assistant(s) at least
      twenty-four (24) hours advance for tests and inspections within the SHIPYARD
      stating particulars of any tests and inspections which may be attended by the
      REPRESENTATIVE and his assistants provided that in exceptional circumstances
      the
      manner in which such notice is given may be modified by mutual agreement. Also
      BUILDER shall give a notice to the REPRESENTATIVE and his assistants of the
      date
      and place of such tests and inspections including three (3) days prior notice
      of
      auxiliary engines test and seven (7) days prior notice of Main Engine tests.
      For
      tests and inspections outside the SHIPYARD, sufficient advance notice to allow
      for the REPRESENTATIVE and his assistants to arrange transportation shall be
      given. This advance notice should not be less than three (3) days for tests
      and
      inspections that require air travel for attendance. Any inspection schedule
      must
      be reasonable at all times in order to allow the REPRESENTATIVE and his
      assistants to carry out their duties properly and inspections must be evenly
      spread over a reasonable time. The inspection thus exercised on behalf of BUYER
      shall not alter or diminish the responsibility of BUILDER to construct VESSEL
      in
      accordance with the Contract, the Specifications and Plans. Once a test has
      been
      witnessed and approved by the BUYER’s REPRESENTATIVE, the same test should not
      have to be repeated, provided it has been carried out in compliance with the
      requirements of the Classification Society and Specifications.

     

    In
      the
      event that the BUYER’s REPRESENTATIVES discovers any construction or material or
      workmanship which does not conform to the requirements of this Contract and/or
      the Specifications, the BUYER’s REPRESENTATIVES shall promptly give the BUILDER
      a notice in writing as to such non-conformity. Upon receipt of such notice
      from
      the BUYER’s REPRESENTATIVES, the BUILDER shall correct such non-conformity or,
      if it does not, shall respond in writing within seven (7) working days of
      receipt of the notice stating the reasons why it does not agree. If there is
      any
      difference of opinion between the parties as to the conformity of the VESSEL
      with the Contract and the Specifications the parties shall try to settle the
      dispute by negotiation. Should the dispute not be settled by negotiation it
      may,
      if mutually agreed upon, be referred to the Classification Society or a mutually
      agreed expert whose opinion shall be final and binding upon the parties
      hereto,

     

    
      
        
        

      

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    failing
      which the dispute shall be referred to arbitration pursuant to Article XIII
      hereof.

     

    
      	4.	
              Facilities:

            

    

     

    The
      BUILDER shall at no cost to the BUYER furnish suitably lighted and
      air-conditioned office space within the SHIPYARD or in the immediate vicinity
      of
      the BUILDER’s SHIPYARD, for a team of up to eight (8) persons including the
      REPRESENTATIVE and his assistant(s), with office furniture, meeting table,
      filling cabinets and public toilet and shower space and other reasonable
      facilities. Separate telephone line and facsimile receiver suitable for
      international calls, broadband internet connection shall be provided in the
      REPRESENTATIVE’s office. Charges for telecommunications services shall be paid
      by the BUYER as billed by the telecommunications authorities.

     

    All
      transportation in the Greater Nantong Area, shall be provided to the
      REPRESENTATIVE by the BUILDER. The travel expenses for the said access to the
      BUILDER’s subcontractors outside of the Greater Nantong Area in the People’s
      Republic of China shall be at BUYER’s account.

     

    The
      REPRESENTATIVE shall be on duty during the working time of the BUILDER, which
      is
      or is deemed to be Monday thru Saturday, 7:00 am to 5:00 pm.

     

    During
      last month of the period of construction of VESSEL, office space, washing
      facilities in SHIPYARD shall be provided for VESSEL’s senior officers and
      crew.

     

    The
      BUILDER shall assist the BUYER in arranging necessary visa(s) for the
      REPRESENTATIVE and his assistant(s) to enter China.

     

    
      	5.	
              Liability
                of the BUILDER:

            

    

     

    The
      REPRESENTATIVE and his assistant(s) shall at all times be deemed to be employees
      of the BUYER and not of the BUILDER. The BUILDER shall be under no liability
      whatsoever to the BUYER, the REPRESENTATIVE or his assistant(s) for personal
      injuries, including death, suffered during the time when he or they are on
      the
      VESSEL, or within the premises of either the BUILDER or its subcontractors,
      or
      are otherwise engaged in and about the construction of the VESSEL, unless,
      however, such personal injuries including death were caused by a negligence
      of
      the BUILDER, or of any of its employees or agents or
      subcontractors.

     

    The
      BUILDER shall be under no liability whatsoever to the BUYER, the REPRESENTATIVE
      or his assistant(s) for damage to, or loss or destruction of

     

    
      
        
        

      

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    property
      in the People’s Republic of China of the BUYER or of the REPRESENTATIVE or his
      assistant(s), unless such damage, loss or destruction were caused by negligence
      of the BUILDER, or of any of its employees or agents or
      subcontractors.

     

    
      	6.	
              Responsibility
                of the BUYER:

            

    

     

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

     

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

     

    
      	7.	
              Salaries
                and Expenses:

            

    

     

    All
      salaries and expenses of the REPRESENTATIVE, his assistant(s) or any other
      employees employed by the BUYER under this Article shall be for the BUYER’s
      account except for those mentioned under the Paragraph 4 in this
      Article.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      V - MODIFICATION

     

    
      	1.	
              Modification
                of Specifications:

            

    

     

    The
      Specifications and plans in accordance with which the VESSEL shall be
      constructed, may be modified and/or changed at any time hereafter by written
      agreement of the Parties hereto, provided that such modifications and/or changes
      or an accumulation thereof will not, in the BUILDER’s reasonable judgement,
      materially affect the BUILDER’s other commitments and provided further that the
      BUYER shall assent to adjustment of the Contract Price, date of delivery of
      the
      VESSEL and other terms of this Contract, if any, as provided herein. Subject
      to
      the above, the BUILDER hereby agrees to accommodate such reasonable requests
      by
      the BUYER so that the said changes and/or modifications may be made at
      reasonable and justified cost, and within the shortest period of time reasonably
      possible.

     

    Any
      such
      agreement in writing for modifications and/or changes shall include an agreement
      as to the increase or decrease, if any, in the Contract Price of the VESSEL
      together with an agreement as to any extension or reduction in the time of
      delivery, or any other alterations in this Contract, or the Specifications
      occasioned by such modifications and/or changes. The aforementioned agreement
      to
      modify and/or to change the Specifications may be effected by an exchange of
      duly authenticated letters or telefaxes, manifesting such agreement. The letters
      and telefaxes exchanged by the Parties hereto pursuant to the foregoing shall
      constitute an amendment of the Specifications under which the VESSEL shall
      be
      built, and such letters and telefaxes shall be deemed to be incorporated into
      this Contract and the Specifications by reference and made a part hereof. Upon
      consummation of the agreement to modify and/or to change the Specifications,
      the
      BUILDER shall alter the construction of the VESSEL in accordance therewith,
      including any additions to, or deductions from, the work to be performed in
      connection with such construction.

     

    If,
      for
      whatever reasons, the Parties hereto shall fail, within a reasonable period,
      to
      agree on the adjustment of the Contract Price or extension of time of delivery
      or modification of any terms of this Contract which are necessitated by such
      modifications and/or changes, then the BUILDER shall be entitled to refuse
      to
      make any such modifications or changes requested by the BUYER by a notification
      of the same in writing to the BUYER.

     

    The
      BUILDER may make changes to the Specifications, if found necessary for
      introduction of improved production methods or otherwise, provided that the
      BUILDER shall first obtain the BUYER’s approval.

     

    
      
        
        

      

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      	2.	
              Change
                in Class, etc.:

            

    

     

    In
      the
      event that, after the date of signing this Contract, any requirements as to
      the
      rules and regulations as specified in this Contract to which the construction
      of
      the VESSEL is required to conform, are altered or changed, as per Paragraph
      2 of
      Article I, by the Classification Society or the other regulatory bodies
      authorized to make such alterations or changes, the BUILDER shall transmit
      such
      information in full to the BUYER in writing, whereupon within twenty one (21)
      days after receipt of the said notice by the BUYER shall, in its sole discretion
      decide and instruct the BUILDER in writing as to the alterations or changes,
      if
      any, to be made in the VESSEL. The BUILDER shall promptly comply with such
      alterations or changes in the construction of the VESSEL, only provided that
      the
      Parties shall have first agreed:

     

    
      	
            	(i)	
              As
                to any reasonable increase or decrease in the Contract Price of the
                VESSEL
                that is occasioned by the cost for such compliance according to and
                in
                compliance with Paragraph 1 of this Article V;
                and/or

            

    

     

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

            

    

     

    
      	
            	(iii)	
              As
                to any decrease in the Guaranteed Deadweight and the Guaranteed Speed
                of
                the VESSEL, if such compliance results in reduced deadweight, cargo
                capacity and speed; and/or

            

    

     

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

            

    

     

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

     

    
      	3.	
              Substitution
                of Materials:

            

    

     

    In
      the
      event that any of the materials required by the Specifications or otherwise
      under this Contract for the construction of the VESSEL cannot be procured in
      time or are in short supply to maintain the Delivery Date of the VESSEL, the
      BUILDER may, provided that the BUYER shall so agree in writing, which shall
      not
      be unreasonably withheld, supply other materials and/or equipment of and with
      equivalent quality and capable of meeting the requirements of the Classification
      Society and of the rules, regulations and requirements with which the
      construction

     

    
      
        
        

      

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    of
      the
      VESSEL must comply. Any agreement as to such substitution of materials shall
      be
      effected in the manner provided in Paragraph 1 of this Article.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      VI - TRIALS
      AND ACCEPTANCE

     

    
      	1.	
              Notice:

            

    

     

    The
      BUYER
      and the REPRESENTATIVE shall be entitled to receive from the BUILDER at least
      thirty (30) days’ notice in advance, followed by seven (7) days’ definitive
      notice in advance, in writing or by telefax (confirmed in writing), of the
      scheduled time and place of the VESSEL’s sea trial as described in the
      Specifications (hereinafter called the “Trial Run”) and the BUYER and the
      REPRESENTATIVE shall promptly acknowledge receipt of such notice. If the time
      and/or place of the trial run of the VESSEL has to be altered, a three (3)
      days
      definite notice shall be sent to the BUYER by telefax.

     

    The
      BUYER
      shall have a representative and/or its REPRESENTATIVE and/or his assistant(s)
      on
      board the VESSEL to witness such Trial Run. Failure in attendance of the
      representative and/or its REPRESENTATIVE and/or his assistant(s) of the BUYER
      at
      the Trial Run of the VESSEL for any reason whatsoever after due notice to the
      BUYER as above provided, shall be deemed to be a waiver by the BUYER of its
      right to have its representative and/or its REPRESENTATIVE and/or his
      assistant(s) on board the VESSEL at the Trial Run, and the BUILDER and the
      class
      surveyor may conduct the Trial Run without the representative and/or its
      REPRESENTATIVE and/or his assistant(s) of the BUYER being present, and in such
      case the BUYER shall be obliged to accept the VESSEL on the basis of a
      certificate of the BUILDER with an approval from the Classification Society
      certifying that the VESSEL, upon Trial Run, is found to conform to this Contract
      and the Specifications.

     

    
      	2.	
              Weather
                Condition:

            

    

     

    The
      Trial
      Run shall be carried out under the weather condition which is deemed favourable
      enough by the reasonable judgment of the BUILDER and the BUYER.

     

    In
      the
      event of unfavourable weather on the date specified for the Trial Run, the
      same
      shall take place on the first available day thereafter that the weather
      condition permits. It is agreed that, if during the trial run of the VESSEL,
      the
      weather should suddenly become so unfavourable that orderly conduct of the
      trial
      run can no longer be continued, the trial run shall be discontinued and
      postponed until the first favourable day next following, unless the BUYER shall
      assent in writing to acceptance of the VESSEL on the basis of the trial run
      already made before such discontinuance has occurred.

     

    
      
        
        

      

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    Any
      delay
      of trial run caused by such unfavourable weather condition shall operate to
      postpone the Delivery Date by the period of delay involved and such delay shall
      be deemed as a Permissible Delay in the delivery of the VESSEL.

     

    
      	3.	
              How
                Conducted:

            

    

     

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

     

    Notwithstanding
      the foregoing, lubricating and hydraulic oils and greases necessary for the
      period of construction and the trial run of the VESSEL shall be supplied by
      the
      BUYER at the SHIPYARD prior to the time required and fuel oils, water, fresh
      water and stores for the conduct of the Trial Run or Trial Runs shall be
      supplied by the BUILDER for its account. The lubricating and hydraulic oils
      and
      greases supplied by the BUYER shall be in accordance with the Specifications
      and
      instruction of the BUILDER. The fuel oil supplied by the BUILDER, and
      lubricating oil and hydraulic oil supplied by the BUYER shall be in accordance
      with the applicable engine specifications. The BUYER shall communicate to the
      BUILDER the intended oil suppliers for the VESSEL and the BUILDER shall comply
      with above requirements.

     

    
      	4.	
              Method
                of Acceptance or
                Rejection:

            

    

     

    
      	
            	(a)	
              Upon
                completion of the trial run, the BUILDER shall give the BUYER a notice
                of
                completion of the trial run together with written reports recording
                off
                all the trials, as and if the BUILDER considers that the results
                of the
                trial run indicate conformity of the VESSEL to this Contract and
                the
                Specifications. The BUYER shall, within five (5) banking days after
                receipt of such notice from the BUILDER notify the BUILDER by telefax
                of
                its acceptance or of its rejection of the Trial Run results, together
                with
                the reasons therefor.

            

    

     

    
      	
            	(b)	
              However,
                should the result of the Trial Run indicate that the VESSEL or any
                part
                thereof including its equipment does not conform to the requirements
                of
                this Contract, the BUILDER shall investigate together with the
                REPRESENTATIVE the cause of such non-conformance and determine the
                proper
                steps to be taken to remedy the same and make whatever corrections
                and
                alterations and/or re-Trial Run or Trial Runs as may be necessary
                without
                extra cost to the BUYER, and upon notification by the BUILDER of
                the
                completion of such alterations or corrections and/or re-Trial or
                re-Trials
                the BUYER shall, within five (5) business days, notify the BUILDER
                by
                telefax 

            

    

     

    
      
        
        

      

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    (confirmed
      in writing) of its acceptance of the VESSEL or of the rejection of the Trial
      Run
      results, together with the reason therefore, taking into account the alterations
      and corrections and/or retrial or retrials by the BUILDER.

     

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

            

    

     

    
      	
            	(d)	
              Any
                dispute arising between the parties hereto as to whether the VESSEL
                and
                its equipment and machinery comply with this Contract and/or
                Specifications, or as to the result of any trial run of the VESSEL,
                or
                relating to the BUYER’s rejection to take delivery of the VESSEL, shall be
                resolved in accordance with Article
                XIII.

            

    

     

    
      	
            	(e)	
              Nothing
                herein shall preclude the BUYER from accepting the VESSEL with its
                qualifications and/or remarks following the Trial Run and/or further
                tests
                or trials as aforesaid and the BUILDER shall be obliged to comply
                with
                and/or remove such qualifications and/or remarks (if such qualifications
                and/or remarks are reasonably acceptable to the BUILDER) at the time
                before effecting delivery of the VESSEL to the BUYER under this
                Contract.

            

    

     

    
      	5.	
              Effect
                of Acceptance:

            

    

     

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

     

    
      	6.	
              Disposition
                of Surplus Consumable
                Stores:

            

    

     

    Following
      conclusion of the Trial Runs and acceptance of the VESSEL by the BUYER, the
      BUYER shall reimburse the BUILDER at original net purchase price as evidenced
      by
      invoices for fuel oils on board in storage tanks and delivered to the BUYER
      with
      the VESSEL.

     

    The
      BUILDER shall absorb the cost of lubricating and hydraulic oil and greases
      consumed during Trial Runs excluding lubricating oils and greases remaining
      in
      the main engine, other machinery and their pipes, stem tube and the like, at
      BUYER’s net purchase prices as evidenced by invoices.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      VII - DELIVERY

     

    
      	1.	
              Time
                and Place:

            

    

     

    Following
      completion of the Trial Run (or, as the case may be, any re-Trial Run or
      re-Trial Runs), the VESSEL shall be delivered safely afloat by the BUILDER
      to
      the BUYER at the SHIPYARD in accordance with the Specifications and with all
      Classification Society notation and statutory certificates specified in
      Paragraph 2 of Article I on or before 31st
      March
      2010 but in any case not during the period between 15th
      November, 2009 and 5th
      January,
      2010, except that in the event of delays in the construction of the VESSEL
      or
      any performance required under this Contract due to causes which under the
      terms
      of this Contract permit postponement of the date for delivery, the
      aforementioned date for delivery of the VESSEL shall be postponed
      accordingly.

     

    The
      aforementioned date, or such later date to which the requirement of delivery
      is
      postponed pursuant to such terms, is herein called the “Delivery
      Date”.

     

    
      	2.	
              Notice:

            

    

     

    The
      BUILDER shall give an approximate notice to the BUYER of the expected date
      of
      delivery on or before thirty (30) calendar days prior to the scheduled delivery
      date. A preliminary notice shall be given to the BUYER at least two (2) months
      prior to the scheduled delivery date. The BUILDER shall be entitled to deliver
      the VESSEL prior to the Delivery Date with thirty (30) days written notice
      to
      BUYER.

     

    
      	3.	
              When
                and How Effected:

            

    

     

    Provided
      that the BUILDER and the BUYER shall have fulfilled all of its obligations
      stipulated under this Contract, delivery of the VESSEL shall be effected
      forthwith by the concurrent delivery by each of the Parties hereto to the other
      of the PROTOCOL OF DELIVERY AND ACCEPTANCE, acknowledging delivery of the VESSEL
      by the BUILDER and acceptance thereof by the BUYER, which protocol shall be
      prepared in duplicate and executed by each of the Parties hereto.

     

    
      	4.	
              Documents
                to be Delivered to the
                BUYER:

            

    

     

    Acceptance
      of the VESSEL by the BUYER shall be conditioned upon the BUILDER’s delivery and
      receipt thereof by the BUYER of the following documents, subject to Paragraph
      2
      Article V hereof, to the BUYER, which shall accompany the PROTOCOL OF DELIVERY
      AND ACCEPTANCE:

     

    
      
        
        

      

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            	(a)	
              PROTOCOL
                OF TRIALS OF THE VESSEL made pursuant to the
                Specifications.

            

    

     

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

            

    

     

    
      	
            	(c)	
              PROTOCOL
                OF STORES OF CONSUMABLE NATURE referred to under Paragraph 6 of Article
                VI
                hereof, including the original purchase price
                thereof.

            

    

     

    
      	
            	(d)	
              ALL
                CERTIFICATES including three (3) originals of the BUILDER’s CERTIFICATE
                (duly attested by notary public if necessary) required to be furnished
                upon delivery of the VESSEL pursuant to this Contract and the
                Specifications. All other certificates, except for BUILDER’s CERTIFICATE,
                shall be delivered in one (1) original to the VESSEL and two (2)
                copies to
                the BUYER. It is agreed that if, through no fault on the part of
                the
                BUILDER, the classification certificate and/or other certificates
                are not
                available at the time of delivery of the VESSEL, provisional certificates
                shall be accepted by the BUYER, provided that the BUILDER shall furnish
                the BUYER with the formal certificates within three (3) months after
                delivery of the VESSEL however in any event before the expiry of
                such
                provisional certificates, unless otherwise mutually
                agreed.

            

    

     

    
      	
            	(e)	
              DECLARATION
                OF WARRANTY of the BUILDER that the VESSEL is delivered to the BUYER
                free
                and clear of any liens, charges, claims, mortgages, or other encumbrances
                upon the BUYER’s title thereto, and in particular, that the VESSEL is
                absolutely free of all burdens in the nature of imposts, taxes or
                charges
                imposed by the Chinese governmental authorities, as well as of all
                liabilities of the BUILDER to its subcontractors, employees and crew,
                and/or of all liabilities arising from the operation of the VESSEL
                in
                Trial Runs, or otherwise, prior to
                delivery.

            

    

     

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

            

    

     

    
      	
            	(g)	
              COMMERCIAL
                INVOICE in triplicate, with main particulars of the
                VESSEL.

            

    

     

    
      	
            	(h)	
              BILL
                OF SALE in three (3) originals, duly notarized and legally
                attested.

            

    

     

    
      	
            	(i)	
              PROTOCOL
                OF DEADWEIGHT DETERMINATION and inclining
                experiments.

            

    

     

    
      
        
        

      

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            	(j)	
              NON-REGISTRATION-CERTIFICATE,
                as a copy, issued by the competent local authority, stating that
                the
                VESSEL is not registered at the time of Delivery; the original instrument
                shall be delivered within thirty (30) business days after delivery
                of such
                copy; and

            

    

     

    
      	
            	(k)	
              Any
                other reasonable document required by flag authority for the registration
                of the VESSEL;

            

    

     

    The
      BUILDER shall provide to the BUYER, at least fourteen (14) days prior to the
      Delivery Date, the drafts of the above-mentioned documents.

     

    
      	5.	
              Tender
                of the VESSEL:

            

    

     

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

     

    
      	6.	
              Title
                and Risk:

            

    

     

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

     

    The
      BUILDER may mortgage this VESSEL for financing purpose provided that, upon
      delivery, the BUILDER shall provide the BUYER with a declaration of warranty
      in
      accordance with Paragraph 4 (e) of this Article and present to the BUYER
      original documents, if requested, at the SHIPYARD, and provide copies thereof,
      verifying that any such mortgage, lien and/or other encumbrance has been done
      away with and is cleared, and the VESSEL is free and clear of such.

     

    
      
        
        

      

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      	7.	
              Removal
                of the VESSEL:

            

    

     

    The
      BUYER
      shall take possession of the VESSEL immediately upon delivery and acceptance
      thereof, and shall remove the VESSEL from the mooring quay of the SHIPYARD
      as
      soon as possible within three (3) business days after delivery and acceptance
      thereof is effected. If the BUYER shall not remove the VESSEL from the mooring
      quay of the SHIPYARD within the aforesaid three (3) business days, then, in
      such
      event, the BUYER shall pay to the BUILDER the reasonable mooring charges of
      the
      VESSEL.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      VIII - DELAYS
      AND EXTENSION OF TIME FOR DELIVERY

    (FORCE
      MAJEURE)

     

    
      	1.	
              Causes
                of Delay:

            

    

     

    If,
      at
      any time before actual delivery, either the construction of the VESSEL, or
      any
      performance required hereunder as a prerequisite of delivery of the VESSEL,
      is
      delayed as a result of Acts of God (including fire, flood, tidal waves,
      earthquake, typhoons, drought or other natural catastrophe), war, invasion,
      act
      of foreign or public enemies, hostilities (whether war is declared or not),
      civil war, rebellion, revolution, insurrection, terrorist activities, blockage,
      freight embargo, labour dispute, strike, lockout, local outside air temperature
      higher than 40 degree centigrade, or disaster similar in nature beyond the
      control of the BUILDER (hereinafter “Force Majeure”) or by destruction of the
      BUILDER or works of the BUILDER, or of the VESSEL or any part thereof, by Force
      Majeure or due to the delay caused by Force Majeure in the supply of parts
      essential to the construction of the vessel, then, in the event of delay due
      to
      the happening of any of the aforementioned contingencies, the BUILDER shall
      not
      be liable for such delay and the time for delivery of the VESSEL under this
      Contract shall be extended without any reduction in the Contract Price for
      a
      period of time which shall not exceed the total duration of all such delays,
      subject nevertheless to the BUYER’s right of cancellation under Paragraph 3 of
      this Article VIII, notwithstanding and accounting for all relevant provisions
      of
      this Contract which may additionally constitute extension of the time of
      delivery of the VESSEL. Any Party asserting Force Majeure as an excuse shall
      have the onus to show that reasonable steps were taken under the circumstances
      to prevent and/or minimize delay or damages caused by foreseeable events, that
      all non-excused obligations were substantially fulfilled, and that the other
      Party was timely notified of the likelihood or actual occurrence which would
      justify such an assertion, so that other prudent precautions could be
      contemplated.

     

    
      	2.	
              Notice
                of Delays:

            

    

     

    Within
      five (5) working days from the date of occurrence of any cause of delay, on
      account of which the BUILDER claims that it is entitled under this Contract
      to a
      postponement of the Delivery Date, the BUILDER shall notify the BUYER in writing
      or by facsimile together with supporting evidence of the date such cause of
      delay occurred. Likewise, within five (5) working days after the date of ending
      of such cause of delay, the BUILDER shall notify the BUYER in writing or by
      facsimile of the date such cause of delay ended. The BUILDER shall also notify
      the BUYER of the period, by which the Delivery Date is postponed by reason
      of
      such cause of delay, with all reasonable despatch after it has been
      determined.

     

    
      
        
        

      

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    Failure
      of the BUYER to acknowledge receipt of the BUILDER’s written notification of any
      claim for extension of the Delivery Date after receipt by the BUYER of such
      notification shall be deemed to be a waiver by the BUYER of its right to object
      to such extension.

     

    
      	3.	
              Definition
                of Permissible Delays:

            

    

     

    Delays
      on
      account of such causes as specified in Paragraph 1 of this Article and other
      delays of a nature which under the terms of this Contract expressly permits
      postponement of the Delivery Date shall be understood to be Permissible
      Delays.

     

    
      	4.	
              Definition
                of Non-Permissible
                Delays:

            

    

     

    All
      other
      delays, exclusive, however, of delays which the Arbitrators (as referred to
      the
      Article XIII hereof) determine to be permissible and result in an extension
      of
      the delivery date and of delays caused by any delimit in performance by the
      BUYER the nature of which under the terms of this Contract permits extension
      of
      the time of delivery, shall be deemed to be Non-Permissible Delays on account
      of
      which the Contract Price is subject to adjustment as provided in Article III
      hereof.

     

    
      	5.	
              Right
                to Rescind for Excessive
                Delay:

            

    

     

    If
      the
      total accumulated time of all delays on account of causes specified in Paragraph
      1 of Article III and Paragraph 1 of this Article VIII, amounts to two hundred
      (200) days or more, then, in such event, the BUYER may rescind this Contract
      in
      accordance with the provisions of Article X hereof. The BUILDER may, at any
      time
      after the total accumulated time of the aforementioned delays justifying
      rescission by the BUYER, demand in writing that the BUYER shall make an
      election, in which case the BUYER shall, within thirty (30) days after such
      demand is received by the BUYER, either notify the BUILDER of its intention
      to
      rescind this Contract, or consent to a postponement of the Delivery Date to
      a
      specific future date; it being understood and agreed by the Parties hereto
      that,
      if any further delay occurs on account of causes justifying rescission as
      specified in this Article, the BUYER shall have the same right of rescission
      upon the same terms as hereinabove provided as if the said revised future date
      for delivery, New Delivery Date, was the Delivery Date as defined in Article
      VII.

     

    
      
        
        

      

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    If
      the
      BUYER fails to notify the BUILDER of its rescission of this Contract as
      specified above within such thirty (30) days period, the Buyer shall be deemed
      to have consented to the delivery of the VESSEL at the future date for delivery
      proposed by the BUILDER.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      IX - WARRANTY
      OF QUALITY

     

    
      	1.	
              Guarantee
                of Material,
                Workmanship:

            

    

     

    The
      BUILDER, for a period of twelve (12) months from the date of delivery of the
      VESSEL to the BUYER, shall guarantee the VESSEL, its hull and machinery and
      all
      parts and equipment thereof including machinery appurtenances that are
      manufactured or furnished or supplied by the BUILDER and/or its subcontractors
      under this Contract against all defects which are due to defective material,
      and/or poor workmanship of the BUILDER and/or its subcontractors (the “Guarantee
      Period”) provided that such defects have not been caused by perils of the sea,
      rivers or navigation, or by normal wear and tear, fire, accident, mismanagement,
      negligence or willful neglect, or by alteration or addition by the
      BUYER.

     

    The
      provisions set forth under this Article as to the Guarantee of the BUILDER
      shall
      not apply to any articles supplied by the BUYER except as to improper
      installation thereof made by the BUILDER.

     

    The
      propeller shall be well designed. Detailed cavitation calculation shall be
      submitted to the BUYER for reference. If any phenomenon of cavitation and
      erosion occurred, the BUILDER has the responsibility to remedy it.

     

    Any
      additional warranty and/or guarantee period in excess of twelve (12) months
      offered by any manufacturer and/or BUILDER’s subcontractors shall be
      automatically passed on to the BUYER and all such rights and claims under any
      applicable warranty and guarantee are herewith transferred or deemed to be
      transferred to the BUYER upon delivery of the VESSEL.

     

    
      	2.	
              Notice
                of Defects:

            

    

     

    The
      BUYER
      shall notify the BUILDER in writing or by facsimile as promptly as possible
      after discovery of the any defects or deviations for which claims is to be
      made
      under this Guarantee. The BUYER’s written notice shall describe the nature of
      the defect and the extent of the damage caused thereby. The BUILDER shall be
      under no obligation with respect to this Guarantee to any claim for defects
      discovered after the expiry date of the Guarantee, unless notice of such defect
      is given by the BUYER to the BUILDER not later than thirty (30) days after
      such
      expiry date. Telefaxed advices within thirty (30) days after expiry date that
      a
      claim is forthcoming will be sufficient compliance with the requirement as
      to
      time. If the BUILDER becomes aware of defective materials or a serious defect
      in
      the design or construction of the VESSEL or any other vessel built by the
      BUILDER, that endangers the safe operation of the VESSEL, the BUILDER shall
      use
      its best efforts to immediately notify the BUYER by telefax.

     

    
      
        
        

      

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      	3.	
              Remedy
                of Defects:

            

    

     

    
      	
            	(a)	
              The
                BUILDER shall remedy, at its expense, any defect against which the
                VESSEL
                or any part of equipment thereof is guaranteed under this Article
                IX by
                repairing or replacing the defective parts in the BUILDER’s SHIPYARD. Such
                repairs or replacing defective parts will be made by the BUILDER
                free of
                charge.

            

    

     

    
      	
            	(b)	
              Such
                repairs or replacement will be made at the BUILDER’s SHIPYARD unless the
                VESSEL cannot be conveniently brought
                there.

            

    

     

    However,
      if it is inconvenient to bring the VESSEL to the BUILDER’s SHIPYARD and if it is
      likewise not feasible for the BUILDER to forward replacements for the defective
      parts so as to avoid impairment and delay to the VESSEL’s operation or working,
      then, in such event, the BUYER shall cause the necessary repairs or replacements
      to be made elsewhere at the discretion of the BUYER, provided, however, that
      the
      BUYER shall give the BUILDER notice in writing or facsimile confirmed in writing
      of the time and place such repairs will be made, if the VESSEL is not thereby
      delayed or her operation or working is not thereby impaired, the BUILDER shall
      have the right to verify by its own representative the nature and extent of
      the
      defects complained of. The BUILDER, in such cases, shall promptly advise the
      BUYER by facsimile, after such verification has been completed, of its
      acceptance or rejection of the defect as one that is subject to the Guarantee
      herein provided. In all minor cases, the Guarantee Engineer, if applicable,
      will
      act for and on behalf of the BUILDER.

     

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

     

    
      	
            	(aa)	
              upon
                the BUILDER’s acceptance of the defects as justifying remedy under this
                Article, which shall not be unreasonably withheld;
                or

            

    

     

    
      	
            	(bb)	
              if
                the BUILDER neither accepts nor rejects the defects, nor requests
                arbitration within fifteen (15) days after its receipt of the BUYER’s
                notice of defects; or

            

    

     

    
      	
            	(cc)	
              upon
                determination in an arbitration process in accordance with Article
                XIII
                that the defect(s) in question fall within the provisions of this
                Article
                IX.

            

    

     

    
      
        
        

      

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            	(c)	
              In
                the event it is necessary to forward the replacement for the defective
                parts under the BUILDER’s Guarantee, the BUILDER shall forward the same at
                Cost Insurance and Freight by sea. However, if such replacement(s)
                is/are
                indispensably essential to and urgently required for the seaworthiness
                of
                the VESSEL, the BUILDER shall forward the same at Cost Insurance
                and
                Freight by airfreight. Seafreight and/or airfreight thereby incurred
                are
                for account of the BUILDER.

            

    

     

    All
      disputes in this connection, including any disputes arising on the question
      of
      cost or upon the rejection by the BUILDER, upon impartial verification of the
      defects as aforesaid and all other disputes connected with or arising upon
      the
      discovery by the BUYER of the defects which cannot be amicably settled between
      the BUYER and the BUILDER shall be referred to the Classification Society.
      However, if the decision of the Classification Society is not acceptable to
      either or both parties, such disputes shall be then referred to arbitration
      as
      provided in ARTICLE XIII of this Contract.

     

    
      	
            	(d)	
              If
                all the defects for which the BUILDER is responsible under this Article
                are discovered and notified before the expiration of the guarantee
                period,
                then these defects shall be agreed in writing between the Parties
                hereto
                as being guarantee items by the end of guarantee period and shall
                be
                repaired or replaced in the manner provided hereinabove in principle
                within four (4) months after such expiration of the guarantee period
                or at
                a later date to be mutually agreed
                upon.

            

    

     

    If
      the
      said defects are not repaired or replaced within the said four (4) months
      period, or on or before said later date to be mutually agreed upon, due to
      inconvenience at the BUILDER, the BUYER has the right to cause the repairs
      or
      replacements to be made at the discretion of the BUYER and the BUILDER shall
      pay
      to the BUYER for such repairs or replacements a sum in United States Dollars
      equal to the average of the reasonable cost of making the same repairs or
      replacements including forwarding charges as quoted by a leading SHIPYARD in
      each of Japan, South Korea, Singapore, Malta, and China.

     

    At
      the
      expiration of the twelve (12) months from delivery of the VESSEL, all
      liabilities on the part of the BUILDER shall duly cease, except for those
      defects, repairs or replacements of which cannot be carried out on or before
      twelve (12) months after delivery of the VESSEL. The BUILDER’s liabilities on
      such defects shall be extended up to and cease upon completion of their repairs
      and replacements.

     

    
      	
            	(e)	
              The
                VESSEL shall, at the sole discretion of the BUYER, drydock for guarantee
                termination survey in China on or before the expiry date of the 12-months
                

            

    

     

    
      
        
        

      

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    guarantee
      period. However, the BUILDER hereby agrees that should the VESSEL not be able
      to
      return to China within the stipulated time allowed for the 12-months drydocking,
      then, either the BUILDER shall agree to the VESSEL’s drydocking arranged by the
      BUYER which is made available near to the VESSEL’s actual position, or the
      BUILDER shall extend the time to enable the VESSEL to return to China to
      complete the said drydocking for guarantee termination survey, provided that
      such extension of the time shall not be more than three (3) months after said
      12-months Guarantee Period.

     

    If
      defect(s) be found on rudder, propeller, bottom, other underwater part(s) or
      tail-end shaft and such defect(s) including but not limited to coatings is/are
      to be remedied by the BUILDER under the BUILDER’s guarantee as provided in this
      Article, the BUILDER shall pay the expenses of said drydocking while the VESSEL
      is in drydock to the extent as far as the BUILDER’s guarantee work is concerned.
      In all other cases the expenses of the said drydocking shall be borne by the
      BUYER.

     

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

            

    

     

    
      	4.	
              Extent
                of BUILDER’s
                Liability:

            

    

     

    The
      BUILDER shall be under no obligation with respect to defects discovered after
      the expiration of the Guaranteed Period specified above. The BUILDER shall
      be
      liable to the BUYER for the defects specified in Paragraph 1 of this ARTICLE
      provided that such liability of the BUILDER shall be limited to damage
      occasioned within the Guarantee Period specified in Paragraph 1 above. The
      BUILDER shall however be under no obligation for any remote and/or consequential
      damages occasioned by any defect or for any loss of time in operating or
      repairing the VESSEL, or both, caused by any defect.

     

    The
      BUILDER shall not be obliged to repair, or be liable for, damages to the VESSEL,
      or any part or equipment thereof, which after acceptance of the VESSEL by the
      BUYER are caused by other than the defects of the nature specified in Paragraph
      1 above, nor shall there be any BUILDER’s liability hereunder for defects in the
      VESSEL, or any part or equipment thereof, caused by fire or accidents at sea
      or
      elsewhere subsequent to acceptance of the VESSEL by the BUYER, or mismanagement,
      accident, negligence, or willful neglect on the part of the BUYER, its employees
      or agents, or of any persons other than employees, agents or subcontractors
      of
      the BUILDER, on or doing work on, the VESSEL, including the VESSEL’s officers,
      crew and passengers, other than the BUILDER, its employees, agents or
      subcontractors.

     

    
      
        
        

      

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    Likewise,
      the BUILDER shall not be liable for defects in the VESSEL, or any part or
      equipment thereof, that are due to repairs, which were made by others than
      the
      BUILDER and/or its subcontractors or with prior consent of the BUILDER at the
      direction of the BUYER, as hereinabove, except in the event of default by the
      BUILDER of its obligations under Paragraph 3 of this Article. Should the
      facsimile advice of defects in guarantee period be noticed by the BUYER to
      the
      BUILDER, notwithstanding the nature of such defects being in compliance with
      the
      Specifications described in Paragraph 1 of the Article as guarantee item or
      not,
      the BUILDER shall take active measures to assist the BUYER to remedy the defects
      in the quickest way.

     

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

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      X - RESCISSION
      OF THE CONTRACT

     

    
      	1.	
              Notice:

            

    

     

    The
      payments made by the BUYER prior to the delivery of the VESSEL shall be in
      the
      nature of advances to the BUILDER. In the event that the BUYER shall exercise
      its right of rescission and/or cancellation of this Contract under and pursuant
      to any of the provisions of this Contract specifically permitting the BUYER
      to
      do so, then the BUYER shall notify the BUILDER in writing or by facsimile and
      such rescission and/or cancellation shall be effective as of the date notice
      thereof is received by the BUILDER.

     

    The
      declaration of default and the notice to cancel and/or rescind this Contract
      may
      be set forth in the same document.

     

    
      	2.	
              Refund
                by the BUILDER:

            

    

     

    Thereupon
      the BUILDER shall refund to the BUYER the full amount of all sums paid by the
      BUYER to the BUILDER on account of the VESSEL within seven (7) days together
      with an amount equal to the original purchase prices of the BUYER’s supplied
      material as evidenced by the invoice issued by the each supplier of the same
      including lubricating oil, grease and fuel oil, if any, which are purchased
      by
      the BUYER to the VESSEL, except those items which are able to return to the
      BUYER, unless the BUILDER proceeds to the arbitration under the provisions
      of
      Article XIII hereof.

     

    In
      such
      event, the BUILDER shall pay the BUYER interest at the rate of eight percent
      (8%) per annum on the amount required herein to be refunded to the BUYER,
      computed from the respective dates on which such sums were paid by the BUYER
      to
      the BUILDER to the date of remittance by telegraphic transfer of such refund
      with interest to the BUYER by the BUILDER, provided, however, that if the said
      rescission by the BUYER is made under the provisions of Paragraph 1 of Article
      VIII hereof, then in such event the BUILDER shall pay to the BUYER the interest
      at the rate of four percent (4%) per annum. The bank charges to such refund
      relating to the BUILDER’s Bank to be on account of the BUILDER.

     

    
      	3.	
              Discharge
                of Obligations:

            

    

     

    Upon
      such
      refund by the BUILDER to the BUYER, all obligations, duties and liabilities
      of
      each of the parties hereto to the other under this Contract shall be forthwith
      completely discharged, and the BUYER shall have no right to claim any further
      damages whatsoever in respect of any breach or alleged breach of this
      Contract.

     

    
      
        
        

      

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      	4.	
              Refundment
                Guarantee:

            

    

     

    After
      signing this Contract and in accordance with Paragraph 7 of Article II, the
      BUILDER shall furnish the BUYER, for the first, second, third and fourth
      instalments, before the Builder’s receipt of the respective instalment, with a
      Refund Guarantee from a reputable bank in China or an international insurance
      company acceptable to the BUYER and the BUYER’s bank for the advance money, in
      favour of the BUYER, guaranteeing the BUILDER’s refundment to the BUYER, in the
      form Exhibit A attached hereto.

     

    Such
      Refund Guarantee shall cover the advance money as above referred to plus
      interest thereon as described in this Article and shall remain in full force
      and
      effect from the date of receipt by the BUILDER of the said advance money from
      the BUYER until (i) receipt by the BUYER of the sum of the advance money
      aggregated hereby together with interest thereon or (ii) upon acceptance by
      the
      BUYER of the delivery of the VESSEL at the BUILDER’s SHIPYARD in accordance with
      the terms of this Contract, whichever comes earlier and in any such case, the
      Refundment Guarantee shall be returned to the BUILDER.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XI - BUYER’S
      DEFAULT

     

    
      	1.	
              Definition
                of Default:

            

    

     

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

     

    
      	
            	(a)	
              If
                the BUYER fails to pay any of the first, second, third and fourth
                instalments to the BUILDER after such instalment becomes due and
                payable
                under the provision of Article II hereof;
                or

            

    

     

    
      	
            	(b)	
              If
                the BUYER fails to pay the fifth Instalment to the BUILDER concurrently
                with the delivery of the VESSEL by the BUILDER to the BUYER as provided
                in
                Article II hereof; 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.

            

    

     

    If
      the
      BUYER is in default of payment or in the performance of its obligations
      hereunder, the BUILDER shall notify the BUYER to that effect by telefax after
      the date of occurrence of the default under this Article XI. The BUYER shall
      forthwith acknowledge receipt thereof by telefax, within five (5) banking days,
      failing which it shall be deemed to have received such notification by the
      BUYER.

     

    
      	2.	
              Interest
                and Charge:

            

    

     

    If
      the
      BUYER is in default of payment as to any instalment as provided in
      Paragraph 1 (a) and (b) of this Article, the BUYER shall pay interest on
      such instalments at the rate of eight percent (8%) per annum from the due date
      thereof to the date of payment to the BUILDER of the full amount including
      interest; in case the BUYER shall fail to take delivery of the VESSEL as
      provided in Paragraph 1 (c) of this Article, the BUYER shall be deemed to be
      in
      default of payment of the fifth instalment and shall pay interest thereon at
      the
      same rate as aforesaid from and including the day on which the VESSEL is
      tendered for delivery by the BUILDER.

     

    In
      any
      event of default by the BUYER, the BUYER shall also pay all direct proven
      charges and expenses incurred by the BUILDER which are caused by such default,
      however, no indirect and/or consequential damages.

     

    The
      payment of interest shall be made simultaneously with the payment of the
      principal by telegraphic transfer in the manner as provided for in Paragraph
      5,
      Article II of this Contract.

     

    
      
        
        

      

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      	3.	
              Effect
                of Default:

            

    

     

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

            

    

     

    
      	
            	(b)	
              If
                any such default by the BUYER continues for a period of twenty-five
                (25)
                business days, the BUILDER may, at its option, rescind this Contract
                by
                giving notice of such effect to the BUYER by facsimile confirmed
                in
                writing. Upon receipt by the BUYER of such notice of rescission,
                this
                Contract shall forthwith become null and void, and any lien, interest
                or
                property right that the BUYER may have in and to the VESSEL or to
                any part
                or equipment thereof and to any material or part acquired for construction
                of the VESSEL but not yet utilized for such purpose, shall forthwith
                cease, and the VESSEL and all parts and equipment thereof shall become
                the
                sole property of the BUILDER.

            

    

     

    In
      the
      event of such rescission of this Contract, the BUILDER shall be entitled to
      retain any instalment or instalments theretofore paid by the BUYER to the
      BUILDER on account of this Contract.

     

    
      	4.	
              Sale
                of the VESSEL:

            

    

     

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

            

    

     

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

     

    
      	
            	(b)	
              In
                the event of the sale of the VESSEL in its completed state, the proceeds
                of the sale received by the BUILDER shall be applied firstly to payment
                of
                all expenses attending such sale and otherwise incurred by the BUILDER
                as
                a result of the BUYER’s default, and then to payment of all unpaid
                instalments of the Contract Price and interest on such instalments
                at the
                rate of eight percent (8%) per annum from the respective due dates
                thereof
                to the date of application.

            

    

     

    
      	
            	(c)	
              In
                the event of sale of the VESSEL in its incomplete state, the proceeds
                of
                sale received by the BUILDER shall be applied firstly to all expenses
                attending

            

    

     

    
      
        
        

      

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    such
      sale
      and otherwise incurred by the BUILDER as a result of the BUYER’s default, and
      then to payment of all costs of construction of the VESSEL less the instalments
      so retained by the BUILDER.

     

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

            

    

     

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

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XII - INSURANCE

     

    
      	1.	
              Extent
                of Insurance Coverage:

            

    

     

    From
      the
      time of keel-laying of the VESSEL until the same is completed, delivered to
      and
      accepted by the BUYER, the BUILDER shall at its own cost and expense, keep
      the
      VESSEL and all machinery, materials, equipment, appurtenances and outfit,
      delivered to the SHIPYARD for the VESSEL or built into, or installed in or
      upon
      the VESSEL, including the BUYER’s Supplies, fully insured for BUILDER’s risk
      with established Chinese prime insurance companies under coverage corresponding
      to “Institute of London Underwriters Clause for Builder’s Risks”.

     

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

     

    The
      policy referred to hereinabove shall be taken out in the name of the BUILDER
      and
      all proceeds under such policy shall be payable to the BUILDER.

     

    One
      photocopy of each of the BUILDER’s risk insurance shall be delivered to the
      BUYER.

     

    Notwithstanding
      anything to the contrary in this Contract, if the BUILDER has made valid tender
      of delivery of the VESSEL, the cost of any insurance placed on the VESSEL from
      the time of valid tender, as defined in Paragraph 5 of Article VII, until the
      time of actual delivery shall be for the account of the BUYER.

     

    
      	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 also to the satisfaction of the REPRESENTATIVE
      without additional expense to the BUYER, and the BUYER shall accept the VESSEL
      under this Contract if completed in accordance with this Contract and the
      Specifications.

     

    
      
        
        

      

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            	(b)	
              Total
                Loss:

            

    

     

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

     

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

            

    

     

    
      	
            	(ii)	
              Refluid
                immediately to the BUYER the amount of all instalments paid to the
                BUILDER
                under this Contract with the interest at the rate of eight percent
                (8%)
                per annum, whereupon this Contract shall be deemed to be rescinded
                and all
                rights, duties, liabilities and obligations of each of the parties
                to the
                other shall terminate forthwith.

            

    

     

    If
      the
      Parties hereto fail to reach such agreement within two (2) months after the
      VESSEL is determined to be an actual or constructive total loss, the provisions
      of Subparagraph (b) (ii) as above shall be applied.

     

    
      	3.	
              Termination
                of the BUILDER’s obligation to
                insure:

            

    

     

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

     

    
      	4.	
              Insurance
                Confirmation:

            

    

     

    The
      BUILDER shall on demand provide the BUYER with a duplicate or a certified copy
      of such insurances and/or entries and shall punctually pay all premiums, calls
      or other sums payable and on demand shall produce to the BUYER evidence of
      payment of the last premium and/or call or supplementary call due. The BUILDER
      will do nothing and ensure nothing is done whereby any such insurances or
      entries may be or become void or voidable and will in all respect act in
      conformity with the terms of such insurances or entries.

     

    
      
        
        

      

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    In
      the
      case that the BUILDER’s insurances under this Article do not cover the original
      purchase prices of the BUYER’s supplies, the BUILDER shall forthwith pay such
      sums to the BUYER provided such supplies have been installed
      onboard.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XIII - DISPUTES
      AND ARBITRATION

     

    
      	1.	
              Proceedings:

            

    

     

    
      	
            	(a)	
              Decision
                by the Classification Society:

            

    

     

    If
      any
      dispute arises between the Parties hereto in regard to the design and/or
      construction of the VESSEL, its machinery and equipment, and/or in respect
      of
      the materials and/or workmanship thereof and/or thereon, and/or in respect
      of
      interpretations of this Contract or the Specifications and Plans, the Parties
      may, by mutual agreement, refer the dispute to the Classification Society or
      to
      such other expert as may be mutually agreed between the Parties
      hereto.

     

    
      	
            	(b)	
              Proceedings
                of Arbitration:

            

    

     

    In
      the
      event that the Parties hereto do not agree to settle a dispute according to
      Paragraph 1 of this Article and/or in the event of any other dispute of any
      kind
      whatsoever between the Parties and relating to this Contract or its rescission
      or any stipulation herein, such dispute shall be submitted to arbitration in
      London subject to the rules of the London Maritime Arbitrators Association.
      Each
      Party shall appoint an arbitrator and the two arbitrators so appointed shall
      appoint a third arbitrator (together to “Arbitration Board”).

     

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

     

    Such
      arbitration shall be in accordance with and subject to the provisions of the
      English Arbitration Act 1996 or any statutory modification or re-enactment
      thereof for the time being in force.

     

    Either
      Party may demand arbitration of any such dispute by giving notice to the other
      Party. Any demand for arbitration by either of the Parties hereto shall state
      the name of the arbitrator appointed by such Party shall also state specifically
      the question or questions as to which such Party is demanding arbitration.
      Within fourteen (14) days after receipt of notice of such demand for
      arbitration, the other Party shall in turn appoint a second arbitrator and
      give
      notice in writing of such appointment to the Party demanding arbitration. If
      a
      Party fails to appoint an arbitrator as aforementioned within fourteen (14)
      days
      following receipt of notice of demand for arbitration by the other Party, the
      Party failing to appoint an arbitrator shall be deemed to have accepted and
      appointed, as its own arbitrator, the arbitrator appointed 

     

    
      
        
        

      

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    by
      the
      Party demanding arbitration shall proceed before this sole arbitrator who alone
      in such event shall constitute the Arbitration Board. The award of the
      Arbitration Board shall be final, conclusive and binding upon the Parties
      hereto.

     

    
      	2.	
              Notice
                of Award:

            

    

     

    Notice
      of
      any arbitration award shall immediately be given in writing or by telefax
      (confirmed in writing) to the BUILDER and the BUYER.

     

    
      	3.	
              Expenses:

            

    

     

    The
      arbitrator(s) shall determine how the expenses of the arbitration or the
      proportion of such expenses shall be allocated between the parties.

     

    
      	4.	
              Entry
                in Court:

            

    

     

    Enforcement
      on any award by the Arbitration Board or the arbitrator, as the case may be,
      may
      be entered in a court of competent jurisdiction. Any right of appeal available
      under English law or any other jurisdiction is hereby expressly excluded by
      the
      Parties hereto.

     

    
      	5.	
              Alteration
                of Delivery Time:

            

    

     

    In
      the
      event of the arbitration of any dispute or differences, that affects the
      construction of the VESSEL, arising or occurring prior to delivery to, or
      acceptance by the BUYER of the VESSEL, the award by the arbitrator 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
      altered thereby.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XIV - RIGHTS
      OF ASSIGNMENT

     

    
      	1.	
              Assignment:

            

    

     

    Neither
      of the Parties hereto shall assign this Contract to a third party unless prior
      consent of the other Party is given in writing; such consent not to be
      unreasonably withheld.

     

    
      	2.	
              Assignment
                of Guarantee Claims:

            

    

     

    If
      the
      BUYER sells or transfers the VESSEL to a third party after the delivery, it
      shall have a right to assign the benefits of Article IX - Guarantee to such
      third party.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XV - TAXES
      AND DUTIES

     

    Taxes
      and Duties in the People’s
      Republic of China:

     

    The
      BUILDER shall bear and pay all taxes and duties imposed in the People’s Republic
      of China in connection with execution and/or performance of this Contract,
      excluding any taxes and duties imposed in the People’s Republic of China upon
      the BUYER’s Supplies described in the Specifications.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XVI - PATENTS,
      TRADEMARKS, COPYRIGHTS, ETC.

     

    
      	1.	
              Patents,
                Trademarks and
                Copyrights:

            

    

     

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

     

    The
      BUILDER shall defend and save harmless the BUYER from patent liability or claims
      of patent infringement of any nature or kind, including costs and expenses
      for,
      or on account of any patented or patentable invention made or used in the
      performance of this Contract and also including, costs and expenses of
      litigation, if any.

     

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

     

    The
      BUILDER’s warranty herein does not extend to the BUYER’S Supplies.

     

    
      	2.	
              General
                Plans, Specifications and Working
                Drawings:

            

    

     

    The
      BUILDER retains all rights with respect to the Specifications, and plans and
      working drawings, technical descriptions, calculations, test results and other
      data, information and documents concerning the design and construction of the
      VESSEL and the BUYER undertakes therefore not to disclose the same or divulge
      any information contained therein to any third parties, without the prior
      written consent of the BUILDER, excepting, where it is necessary for usual
      operation, repair and maintenance of the VESSEL or for enforcing its rights
      under this Contract.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XVII - BUYER’s
      SUPPLIES

     

    
      	1.	
              Responsibility
                of the BUYER:

            

    

     

    
      	
            	(a)	
              The
                BUYER shall, at its own risk, cost and expense, supply and deliver
                to the
                SHIPYARD all of the items to be furnished by the BUYER as specified
                in the
                Specifications (herein called throughout this Contract the “BUYER’s
                Supplies”) at the warehouse or other storage of the SHIPYARD in the proper
                condition ready for installation in or on the VESSEL, in accordance
                with
                the time schedule designated by the
                BUILDER.

            

    

     

    
      	
            	(b)	
              In
                order to facilitate installation by the BUILDER of the BUYER’s Supplies in
                or on the VESSEL, the BUYER shall furnish the BUILDER with necessary
                specifications, plans, drawings, instruction books, manuals, test
                reports
                and certificates required by the rules and regulations. The BUYER,
                if so
                requested by the BUILDER in writing, shall, without any charge to
                the
                BUILDER, cause the representatives of the manufacturers of the BUYER’s
                Supplies to assist the BUILDER in installation thereof in or on the
                VESSEL
                and/or to carry out installation thereof by themselves or to make
                necessary adjustments thereof at the
                SHIPYARD.

            

    

     

    
      	
            	(c)	
              Any
                and all of the BUYER’s Supplies shall be subject to the BUILDER’s
                reasonable right of rejection, as and if they are found to be unsuitable
                or in improper condition for installation. However, if so requested
                by the
                BUYER, the BUILDER shall repair or adjust the BUYER’s Supplies without
                prejudice to the BUILDER’s other rights hereunder and without being
                responsible for any consequences therefrom. In such case, the BUYER
                shall
                reimburse the BUILDER for all costs and expenses incurred by the
                BUILDER
                in such repair or adjustment and the Delivery Date shall be postponed
                for
                a period of time necessary for such repair or replacement, if the
                BUILDER
                requests.

            

    

     

    
      	
            	(d)	
              Should
                the BUYER fail to deliver any of the BUYER’s Supplies within the time
                designated by the BUILDER, the Delivery Date shall be automatically
                extended for a period of such delay in delivery, provided that such
                delay
                in delivery shall affect delivery of the VESSEL. In such event, the
                BUYER
                shall be responsible and pay to the BUILDER for all losses and damages
                incurred by the BUILDER by reason of such delay in delivery of the
                BUYER’s
                Supplies and such payment shall be made upon delivery of the
                VESSEL.

            

    

     

    If
      delay
      in delivery of any of the BUYER’s Supplies exceeds thirty (30) days, then, the
      BUILDER shall be entitled to proceed with construction of the VESSEL without
      installation thereof in or on the VESSEL, without prejudice to the BUILDER’s
      other rights as hereinabove provided, and the BUYER shall accept and take
      delivery of the VESSEL so constructed.

     

    
      
        
        

      

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      	2.	
              Responsibility
                of the BUILDER:

            

    

     

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

     

    
      	3.	
              Joint
                Responsibility of the Parties
                hereto:

            

    

     

    Upon
      arrival of such shipment of the BUYER’s Supplies, both Parties shall undertake a
      joint unpacking inspection. If any damages are discovered that render any such
      item(s) unsuitable for installation, the BUILDER shall be entitled to refuse
      to
      accept such BUYER’s supplied items.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XVIII - NOTICE
      AND CORRESPONDENCE

     

    
      	1.	
              Address:

            

    

     

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

     

    
      
        	
                To
                  the BUYER:

              	
                MAXPENTE
                  SHIPPING CORPORATION.

              
	 	
                C/O:
                  SAFETY
                  MANAGEMENT OVERSEAS S.A.

              
	 	
                32
                  Karamanli Avenue

              
	 	
                166
                  73 Voula

              
	 	
                Athens,
                  Greece

              
	 	 
	
                Telefax
                  No.:

              	
                +30-210-859
                  6900

              
	 	 
	
                To
                  the BUILDER:

              	
                Jiangsu
                  Rongsheng Heavy

              
	 	
                Industries
                  Group Co., Ltd.

              
	 	
                No.
                  882, Hong Qiao Road,

              
	 	
                SHANGHAI,
                  200030

              
	 	
                The
                  People’s Republic of China

              
	 	 
	
                Telefax
                  No. :

              	
                +86-21-64484727

              

      

       

    

    Any
      change of address shall be communicated in writing by registered mail or by
      telefax by the Party making such change to the other party and in the event
      of
      failure to give such notice of change, communications addressed to the party
      at
      their last known address shall be deemed sufficient. Day-to-day communication
      by
      e-mail is permitted.

     

    Any
      and
      all notices, requests, demands, instructions, advice and communications in
      connection with this Contract shall be deemed to be given at, and shall become
      effective from, the time when the same is delivered to the address of the party
      to be served, provided, however, that registered airmail shall be deemed to
      be
      delivered ten (10) days after the date of dispatch, express courier service
      shall be deemed to be delivered five (5) days after the date of dispatch, and
      the SWIFT transmission for Refund Guarantee shall be deemed to be delivered
      to
      the Buyer and/or the Buyer’s bank on the same day of dispatch from BUILDER’s
      bank.

     

    
      	2.	
              Language:

            

    

     

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

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XIX - EFFECTIVE
      DATE OF CONTRACT

     

    This
      Contract and the Annexes shall become effective as from the date of execution
      and signing hereof by the BUYER and the BUILDER.

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XX - INTERPRETATION

     

    
      	1.	
              Laws
                Applicable:

            

    

     

    The
      Parties hereto agree that the validity and interpretation of this Contract
      and
      of each Article and part hereof shall be governed by the laws of
      England.

     

    
      	2.	
              Discrepancies:

            

    

     

    All
      general language or requirements embodied in the Specifications are intended
      to
      amplify, explain and implement the requirements of this Contract. However,
      in
      the event that any language or requirements so embodied permit an interpretation
      inconsistent with any provisions of this Contract, then in each and every such
      event, the applicable provisions of this Contract shall prevail and govern.
      The
      Specifications and plan are also intended to explain each other, and anything
      shown on the plan and not stipulated in the Specifications or stipulated in
      the
      Specifications and not shown on the plan shall be deemed and considered as
      if
      embodied in both. In the event of conflict between the Specifications and plan,
      the Specifications shall prevail and govern.

     

    
      	3.	
              Entire
                Agreement:

            

    

     

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

     

    (End
      of
      Article)

     

    
      
        
        

      

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    ARTICLE
      XXI - CONFIDENTIALITY

     

    Without
      prejudice to Paragraph 2 of Article XVI, this Contract, especially the Contract
      Price, is confidential between the Parties and its terms and conditions may
      not
      be divulged except as necessary in the performance of the Contract to the third
      parties in a business relationship such as financial sources, government
      agencies, vendors, and in connection with any arbitration of this Contract
      or to
      otherwise pursue its rights under this Contract.

     

    (End
      of
      Article)

     

    
      
        
        

      

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

     

    
      	
              BUYER:

            	 	
              BUILDER:

            
	
              MAXPENTE
                SHIPPING
CORPORATION.

            	 	
              Jiangsu
                Rongsheng

              Heavy
                Industries Group Co., Ltd.

            
	 	 	 
	
              /s/
                Ioannis Fotinos

            	 	
              /s/
                Chen Qiang

            
	
              Attorney-in-Fact:
                IOANNIS FOTINOS

            	 	
              Attorney-in-Fact:
                Chen Qiang

            

    

    

    
      
        
        

      

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    EXHIBIT
      A

     

    Form
      of Individual Refundment Guarantee for the 1st
      (2nd,
      3rd,
      4th)
      Instalment

     

    REFUND
      GUARANTEE

     

    BANK
      REF
      NO: [...]

    ISSUING
      DATE: [...]

     

    TO:
      MAXPENTE SHIPPING CORPORATION.

     

    In
      consideration of your entering into a Shipbuilding Contract dated December
      6th,
      2006 (hereinafter called the “Contract”) with JIANGSU RONGSHENG HEAVY INDUSTRIES
      GROUP CO., LTD., a corporation organized and existing under the laws of the
      People’s Republic of China, with offices at, No. 882, Hong Qiao Road, SHANGHAI,
      the People’s Republic of China (hereinafter called the “Builder”) for the
      construction of one (1) 176,000-DWT Type Motor Bulk Carrier to be known as
      the
      Builder’s HULL NO. 1-11075 (hereinafter called the “Vessel”) and in
      consideration of your payment for the account of the Builder the sum of United
      States Dollars Sixteen Million only
      (US$16,000,000.00) being the first instalment of the Contract Price of the
      Vessel in accordance with the contract, we the bank [...], having our registered
      office at [...], China (hereinafter called the “Bank”), the undersigned, hereby
      absolutely and irrevocably guarantee that we will pay to you upon first written
      demand from you, an amount up to United States Dollars Sixteen Million
only
      (US$16,000,000.00) without deduction of any nature of the said instalment paid
      by you to the Builder, together with interest thereon as provided in the said
      Contract, if and when said instalment becomes refundable from the Builder under
      and by virtue of the said Contract.

     

    This
      Letter of Guarantee shall be subject to the following terms:

     

    
      	
            	1.	
              This
                Letter of Guarantee shall come into force when you have effected
                the
                payment of this instalment as per the
                Contract.

            

    

     

    
      	
            	2.	
              The
                maximum amount that the Bank, the undersigned, in any eventuality
                may be
                obliged to pay to your shall be the sum of United States Dollars
                Sixteen
                Million 

            

    

     

    
      
        
        

      

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    only
      (US$16,000,000.00) together with interest calculated at the rate stipulated
      in
      said Contract for the terms from the date of the payment of the said instalment
      to the date of remittance of such refund.

     

    
      	
            	3.	
              This
                Letter of Guarantee shall become null and void upon receipt by your
                company of the amount guaranteed hereby together with interest thereon
                or
                upon the acceptance by your company of the delivery of the Vessel
                constructed in accordance with terms of the said Contract as evidenced
                by
                the Protocol of Delivery and Acceptance of the VESSEL duly signed
                by the
                BUILDER and you and in this case this Letter of Guarantee shall be
                returned to us.

            

    

     

    
      	
            	4.	
              This
                Letter of Guarantee shall benefit and ensure to the assignee and
                successor
                of this Contract.

            

    

     

    
      	
            	5.	
              This
                Letter of Guarantee shall be governed by and construed in accordance
                with
                the laws of the England. In the event that dispute should arise between
                yourself and your assignee and us, such dispute shall be settled
                by
                arbitration in London in accordance with the laws of
                England.

            

    

     

    All
      documents specified and presented under this Guarantee, including the demand
      for
      payment, will be examined by us with reasonable care to ascertain whether or
      not
      they appear on their face to conform to the terms of the Guarantee. Where such
      documents do not appear so to conform or appear on their face to be inconsistent
      with one another, they shall be refused.

     

    Yours
      faithfully,

     

    For
      __________________

     

    [The
      final form of the Refund Guarantee will be as per agreement between
      BUYER,
BUILDER,
      BUYER’s BANK and REFUND GUARANTOR]

     

    
      
        
        

      

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    EXHIBIT
      B

     

    (Draft
      only, subject to BUILDER’s and BUYER’s bank approval)

     

    FORM
      OF
      IRREVOCABLE LETTER OF GUARANTEE

    FOR
      THE
      2nd INSTALMENT

     

    (________________)
      Bank

     

    Date:
      (______________)

     

    JIANGSU
      RONGSHENG HEAVY

    INDUSTRIES
      GROUP CO., LTD.

    No.
      882,
      Hong Qiao Road,

    SHANGHAI
      200030

    The
      People’s Republic of China

     

    Dear
      Sirs,

     

    
      	
            	(1)	
              In
                consideration of your entering into a Ship Sale Contract dated
                _____________ (“the Shipbuilding Contract”) with SAFETY MANAGEMENT
                OVERSEAS S.A. as the buyer (“the BUYER”) for the construction of one (1)
                176,000 Metric Tons Deadweight Bulk Carrier bearing Hull No. H1075
                (the
                “VESSEL”), we, _____________________, hereby IRREVOCABLY, ABSOLUTELY and
                UNCONDITIONALLY guarantee, as the primary obligor and not merely
                as the
                surety, the due and punctual payment by the BUYER of the 2nd installment
                of the Contract Price amounting to a sum of United States Dollars
                Sixteen
                Million (US$16,000,000.00)
                as specified in (2) below.

            

    

     

    
      	
            	(2)	
              The
                Installments guaranteed hereunder, pursuant to the terms of the
                Shipbuilding Contract, comprise the 2nd instalment in the amount
                of United
                States Dollars Sixteen Million 
                (US$16,000,000.00) payable by the BUYER within five (5) New York
                banking
                days after cutting of the first steel plate in your BUILDER’s
                workshop.

            

    

     

    
      	
            	(3)	
              We
                also IRREVOCABLY, ABSOLUTELY and
                UNCONDITIONALLY

            

    

     

    
      
        
        

      

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    guarantee,
      as primary obligor and not merely as surety, the due and punctual payment by
      the
      BUYER of interest on each installment guaranteed hereunder at the rate of four
      per cent (4%) per annum from and including the first day after the date of
      installment in default until the date of full payment by us of such amount
      guaranteed hereunder.

     

    
      	
            	(4)	
              In
                the event that the BUYER fails to punctually pay any Installment
                guaranteed hereunder or the BUYER fails to pay any interest thereon,
                and
                any such default continues for a period of fifteen (15) days, then,
                upon
                receipt by us of your first written demand, we shall immediately
                pay to
                you or your assignee all unpaid 2nd, 3rd and 4th installments, together
                with the interest as specified in paragraph (3) hereof, without requesting
                you to take any or further action, procedure or step against the
                BUYER or
                with respect to any other security which you may
                hold.

            

    

     

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

            

    

     

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

            

    

     

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

            

    

     

    
      
        
        

      

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

            

    

     

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

            

    

     

    
      	
            	(10)	
              The
                maximum amount, however, that we are obliged to pay to you under
                this
                Guarantee shall not exceed the aggregate amount of U.S. Dollars
                __________________ being an amount equal to the sum
                of:-

            

    

     

    
      	
            	(a)	
              All
                the 2nd installment guaranteed hereunder in the total amount of United
                States Dollars Sixteen Million (US$16,000,000.00);
                and

            

    

     

    
      	
            	(b)	
              Interest
                at the rate of four percent (4%) per annum on the installments for
                a
                period of sixty (60) days in the amount of United States Dollars
                Sixteen
                Million (US$16,000,000.00)

            

    

     

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

            

    

     

    
      	
            	(12)	
              This
                Letter of Guarantee shall be construed in accordance with and governed
                by
                the Laws of England. We hereby submit to the non-exclusive jurisdiction
                of
                

            

    

     

    
      
        
        

      

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    the
      English courts for the purposes of any legal action or proceedings in connection
      herewith in England.

     

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

            

    

     

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

            

    

     

    Very
      Truly Yours

     

    By:____________________

     

    [The
      final form of the Payment Guarantee will be as per agreement between
      BUYER,

    BUILDER,
      BUYER’s BANK and REFUND GUARANTOR]

     

    
      
        
        

      

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    EXHIBIT
      C

     

    STAGE
      CERTIFICATE

     

    Hull
      No.               
 (“the
      VESSEL”)
      under
      a Shipbuilding Contract dated the
           day of
                          2007
      (“the CONTRACT”)
      made
      between [·]
      (“the
BUYER”)
      and
      [·]
      (“the
BUILDER”).

     

    We
      hereby
      certify in connection with the CONTRACT of the VESSEL that [steel cutting has
      commenced] [the first block of keel has been laid] [launching has taken
      place].

     

    
      	
              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:

    

    
      
        
        

      

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]