Document:

EX-10.7

 Exhibit 10.7 

SHIPSALES CONTRACT 

FOR 
 CONSTRUCTION
AND SALE 
 OF 

One (1) 61,000 M.T. D/W TYPE BULK CARRIER 

(HULL NO.            ) 

BETWEEN 
 [SUBSIDIARY]

 AS BUYER 

AND 
 LAVENDER
MARITIME S.A. 
 AS SELLER 

[DATE] 

 INDEX 
  

					
	 	 	 	  	PAGE
	 PREAMBLE
	  	  5
		
	 ARTICLE I - DESCRIPTION AND CLASS
	  	
			
	 1.
	 	 Description
	  	  6
			
	 2.
	 	 Classification, Rules and Regulations
	  	  6
			
	 3.
	 	 Principal Particulars and Dimensions of VESSEL
	  	  7
			
	 4.
	 	 Guaranteed Trial Speed
	  	  7
			
	 5.
	 	 Guaranteed Fuel Oil Consumption
	  	  7
			
	 6.
	 	 Guaranteed Deadweight
	  	  7
			
	 7.
	 	 Registration
	  	  8
			
	 8.
	 	 Subcontracting
	  	  8
		
	 ARTICLE II - CONTRACT PRICE AND TERMS OF PAYMENT
	  	
			
	 1.
	 	 Contract Price
	  	  9
			
	 2.
	 	 Currency
	  	  9
			
	 3.
	 	 Terms of Payment
	  	  9
			
	 4.
	 	 Method of Payment
	  	  9
			
	 5.
	 	 Payment under Dispute
	  	10
			
	 6.
	 	 Prepayment
	  	10
			
	 7.
	 	 Set-off
	  	10
		
	 ARTICLE III - ADJUSTMENT OF CONTRACT PRICE
	  	
			
	 1.
	 	 Delivery
	  	12
			
	 2.
	 	 Speed
	  	13
			
	 3.
	 	 Fuel Consumption
	  	14
			
	 4.
	 	 Deadweight
	  	14
			
	 5.
	 	 Effect of Rescission
	  	15
		
	 ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS
       AND INSPECTION
DURING CONSTRUCTION
	  	
			
	 1.
	 	 Approval of Plans and Drawings
	  	16
			
	 2.
	 	 Appointment of Supervising Company’s Supervisor
	  	16
			
	 3.
	 	 Inspection by Supervisor
	  	16
			
	 4.
	 	 Undertaking of BUILDER
	  	17

  
 1 

							
			
	 5.
	 	 Representative of BUYER
	  	 	17	  
		
	 ARTICLE V - MODIFICATIONS
	  			
			
	 1.
	 	 Modifications of Specifications
	  	 	18	  
			
	 2.
	 	 Change in Class, etc.
	  	 	18	  
			
	 3.
	 	 Substitution of Materials
	  	 	19	  
		
	 ARTICLE VI - TRIALS
	  			
			
	 1.
	 	 Notice
	  	 	21	  
			
	 2.
	 	 Weather Condition
	  	 	21	  
			
	 3.
	 	 How Conducted
	  	 	21	  
			
	 4.
	 	 Method of Acceptance or Rejection
	  	 	22	  
			
	 5.
	 	 Effect of Acceptance
	  	 	23	  
			
	 6.
	 	 Disposition of Surplus Consumable Stores
	  	 	24	  
			
	 7.
	 	 Familiarization
	  	 	24	  
		
	 ARTICLE VII - DELIVERY
	  			
			
	 1.
	 	 Time and Place
	  	 	25	  
			
	 2.
	 	 When and How Effected
	  	 	25	  
			
	 3.
	 	 Documents to be Delivered to BUYER
	  	 	25	  
			
	 4.
	 	 Tender of VESSEL
	  	 	26	  
			
	 5.
	 	 Title and Risk
	  	 	26	  
			
	 6.
	 	 Removal of VESSEL
	  	 	26	  
		
	 ARTICLE VIII - DELAYS AND EXTENSION OF TIME FOR

                   
                                       DELIVERY (FORCE
MAJEURE)
	  			
			
	 1.
	 	 Causes of Delay
	  	 	28	  
			
	 2.
	 	 Notice of Delay
	  	 	28	  
			
	 3.
	 	 Definition of Permissible Delay
	  	 	29	  
			
	 4.
	 	 Right to Rescind for Excessive Delay
	  	 	29	  
		
	 ARTICLE IX - WARRANTY OF QUALITY
	  			
			
	 1.
	 	 Guarantee
	  	 	30	  
			
	 2.
	 	 Notice of Default
	  	 	30	  
			
	 3.
	 	 Remedy of Defects
	  	 	30	  
			
	 4.
	 	 Extent of BUILDER’s Responsibility
	  	 	31	  

  
 2 

							
		
	 ARTICLE X - RESCISSION BY BUYER
	  			
			
	 1.
	 	 Notice
	  	 	33	  
			
	 2.
	 	 Definition of the SELLER’s Default
	  	 	33	  
			
	 3.
	 	 Effect of the Default and Refund
	  	 	34	  
			
	 4.
	 	 Discharge of Obligations:
	  	 	34	  
		
	 ARTICLE XI - BUYER’S DEFAULT
	  			
			
	 1.
	 	 Definition of Default
	  	 	35	  
			
	 2.
	 	 Interest of Default
	  	 	36	  
			
	 3.
	 	 Effect of Default
	  	 	36	  
			
	 4.
	 	 Sale of VESSEL
	  	 	36	  
		
	 ARTICLE XII - INSURANCE
	  			
			
	 1.
	 	 Extent of Insurance Coverage
	  	 	38	  
			
	 2.
	 	 Application of Recovered Amount
	  	 	38	  
			
	 3.
	 	 Termination of BUILDER’s Obligation to Insure
	  	 	39	  
		
	 ARTICLE XIII - DISPUTES AND ARBITRATION
	  			
			
	 1.
	 	 Proceedings
	  	 	40	  
			
	 2.
	 	 Notice of Award
	  	 	41	  
			
	 3.
	 	 Expenses
	  	 	41	  
			
	 4.
	 	 Entry in Court
	  	 	41	  
			
	 5.
	 	 Alteration of Delivery Date
	  	 	41	  
		
	 ARTICLE XIV - RIGHT OF ASSIGNMENT
	  	 	42	  
		
	 ARTICLE XV - TAXES AND DUTIES
	  			
			
	 1.
	 	 Taxes and Duties in Japan
	  	 	43	  
			
	 2.
	 	 Taxes and Duties outside Japan
	  	 	43	  
		
	 ARTICLE XVI - PATENTS, TRADEMARKS, COPYRIGHTS, ETC.
	  			
			
	 1.
	 	 Patents, Trademarks and Copyrights
	  	 	44	  
			
	 2.
	 	 General Plans, Specifications and Working Drawings
	  	 	44	  

  
 3 

							
		
	 ARTICLE XVII - BUYER’S SUPPLIES
	  			
			
	 1.
	 	 Responsibility of BUYER
	  	 	45	  
			
	 2.
	 	 Responsibility of BUILDER
	  	 	46	  
		
	 ARTICLE XVIII - COMPLIANCE AND ANTI-BRIBERY
	  			
			
	 1.
	 	 Representations of the Parties
	  	 	47	  
			
	 2.
	 	 Indemnification
	  	 	48	  
		
	 ARTICLE XIX - NOTICE
	  			
			
	 1.
	 	 Address
	  	 	49	  
			
	 2.
	 	 Language
	  	 	49	  
		
	 ARTICLE XX - EFFECTIVE DATE OF CONTRACT
	  	 	50	  
		
	 ARTICLE XXI - INTERPRETATION
	  			
			
	 1.
	 	 Laws Applicable
	  	 	51	  
			
	 2.
	 	 Discrepancies
	  	 	51	  
			
	 3.
	 	 Entire Agreement
	  	 	51	  
		
	 END OF CONTRACT
	  	 	52	  

  
 4 

 THIS CONTRACT, made this      day of
                    by and between
                    , a corporation organized and existing under the law of the Republic of the Marshall Islands, having its registered office at
Trust Company complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (hereinafter called the “BUYER”), the party of the first part, and Lavender Maritime S.A., a corporation organized and existing under the laws of
Panama, having its principal office at 53rd Street, Urbanizacion Obarrio, Torre Swiss Bank, 16th Floor, Panama, Republic of Panama (hereinafter
called the “SELLER”), the party of the second part. 
 WITNESSETH: 

In consideration of the mutual covenants herein contained, the SELLER agrees to cause Imabari Shipbuilding Co., Ltd., having
its principal office at 1-chome Koura-cho, Imabari City Ehime Prefecture, Japan (hereinafter called the “BUILDER”) to build, launch, equip and complete at BUILDER’s Imabari Shipyard (hereinafter called the “Shipyard”) but
some blocks to be fabricated in the BUILDER’s Dalian block factory and sell and deliver to the BUYER one (1) 61,000 M.T. D/W Type Bulk Carrier more fully described in Article I hereof (hereinafter called the “VESSEL”), and the
BUYER agrees to purchase and take delivery of the VESSEL from the SELLER and to pay for the same, all upon the terms and conditions hereinafter set forth. 

  
 5 

 ARTICLE I - DESCRIPTION AND CLASS 

 

	1.	 Description: 

The VESSEL shall have the BUILDER’s Hull No.             
and shall be constructed, equipped and completed in accordance with the provisions of this Contract, the Specifications and the General Arrangement Plan (hereinafter collectively called the “Specifications”) signed by each of the parties
hereto for identification and attached hereto and made an integral part hereof. 
 It is agreed and understood that the
BUILDER may at its discretion construct and deliver the VESSEL at one of the BUILDER’s shipyards or at one of the shipyards of the BUILDER’s affiliated companies other than the Shipyard mentioned above (hereinafter collectively called the
“Shipyards”), provided that the provisions of this Contract except the VESSEL’s Hull Number shall not be altered thereby in any other respects. 
  

	2.	 Classification, Rules and Regulations: 

The VESSEL, including its machinery, equipment and out-fittings shall be constructed in accordance with the rules (the edition
and amendments thereto being in force as of the date of this Contract) of and under special survey of                      (herein called the
“Classification Society”) and shall be distinguished in the register by the symbol of: 
  

			
	                     

	 Classification Notation        :
	  	

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

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

  
 6 

	3.	 Principal Particulars and Dimensions of VESSEL: 

The VESSEL shall have the following characteristics and dimensions: 
  

					
	  Length (over all)	 	 :  
	  	              about 199.9 m

	  Length (between perpendiculars)	 	 :
	  	                      195.00
m

	  Breadth, moulded	 	 :
	  	
                       32.24
m

	  Depth, moulded	 	 :
	  	
                       18.60
m

	  Designed loaded draft, moulded	 	 :
	  	
                       11.30
m

	  Scantling draft, moulded	 	 :
	  	
                       13.00
m

	  Deadweight at assigned loaded draft	 	 :
	  	                   60,950 MT

	  Gross Tonnage (by I.C.T.M.1969)	 	 :
	  	                about 35,000

	  Main Engine (Japanese make)	 	 :
	  	         MAN B&W
                        1set

	 Maximum rating
	 	:	  	                     kW x 108 rpm
	 Normal rating
	 	:	  	                     kW x 102 rpm (85% MCR)
	 Flag
	 	 :
	  	         Marshall Islands

	  

4.   Guaranteed Trial Speed:

The SELLERS guarantees for the VESSEL that the mean trial speed shall be 15.15 knots with the VESSEL at the displacement of
not less than 27,300 metric tons at the normal output of              in quiet weather and calm sea with clean bottom of the VESSEL under the conditions set forth in the Specifications
(here in after called the “Guaranteed Trial Speed”).
  

5.   Guaranteed Fuel Oil Consumption:

The SELLERS guarantees that the fuel oil consumption of Main Engine as determined by shop trial as specified in the
Specifications, at normal rating shall not be more than              grams/kW/hour using “A” oil on the basis of lower calorific value of 42,700 kJ/kg (hereinafter called the
“Guaranteed Fuel Oil Consumption.”)
  

6.   Guaranteed Deadweight:

The SELLERS guarantees that the VESSEL, when completed, shall be capable of carrying a total deadweight tonnage of 60,950
metric tons at assigned fully loaded draft (hereinafter called the “Guaranteed Deadweight”). The term

  
 7 

 
“Deadweight” as used in this Contract, shall signify the difference between the displacement at assigned fully loaded draft in sea water of 1.025 specific gravity on the basis of
hydrostatic table and the light weight of the VESSEL. 
 The actual deadweight of the VESSEL shall be determined by
calculations made by the BUILDER and these calculations shall be based on actual measurements of the completed VESSEL taken in the presence of the Classification Surveyor. 
  

	7.	 Registration: 

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

	8.	 Subcontracting: 

The BUILDER may, at its sole discretion and responsibility, subcontract any portion of the construction work of the VESSEL to
any domestic and/ or overseas subcontractors including, but not limited to, the affiliated companies of the BUILDER. For the avoidance of doubt, the SELLER shall, regardless of any subcontracting, remain liable to sell and deliver the VESSEL to the
BUYER in accordance with the terms of this Contract. 
 (End of Article) 

  
 8 

 ARTICLE II - CONTRACT PRICE AND TERM OF PAYMENT 

 

	1.	 Contract Price: 

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

	2.	 Currency: 

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

 

	3.	 Terms of Payment: 

The Contract Price shall be paid by the BUYER to the SELLER in installments as follows: 

	 	(a)	 1st Installment: The sum of United States Dollars
                     shall be paid upon signing of this Contract and receipt by the BUYER of the Corporate Refund Guarantee in the form attached at
Schedule 1. 

	 	(b)	 2nd Installment: The sum of United States Dollars
                     shall be paid on or before
                    . 

	 	(c)	 3rd Installment: The sum of United States Dollars
                     shall be paid upon launching of the VESSEL. 

	 	(d)	 4th Installment: The sum of United States Dollars
                     plus any increase or minus any decrease due to adjustments of the Contract Price hereunder, shall be paid upon delivery of the
VESSEL. 

  

	4.	 Method of Payment: 

	 	(a)	 1st Installment: Within three (3) banking days from and including the signing date of this Contract, the BUYER shall remit the amount of this
Installment by telegraphic transfer to SELLER’s nominated bank (hereinafter called the “SELLER’s Bank”) for the account of the SELLER. 

  
 9 

	 	(b)	 2nd Installment: On or before
                    , the BUYER shall remit the amount of this Installment by telegraphic transfer to the SELLER’s Bank for the account of the
SELLER. 

	 	(c)	 3rd Installment: Within three (3) banking days after receipt of the notice in writing or by facsimile from the SELLER of launching of the
VESSEL having been made, the BUYER shall remit the amount of this Installment by telegraphic transfer to the SELLER’s Bank for the account of the SELLER. 

	 	(d)	 4th Installment: The BUYER shall, at least two (2) banking days prior to the scheduled Delivery Date of the VESSEL, make cash deposit in a
suspense account with the SELLER’s Bank by telegraphic transfer (by using forms MT199/103 or equivalent), covering the amount of this Installment as adjusted in accordance with the provisions of this Contract Price, if any, with an irrevocable
instruction that the amount so remitted shall be released to the SELLER’s bank account against presentation by the SELLER to the SELLER’s Bank of a copy of the Protocol of Delivery and Acceptance duly signed by the BUYER and the SELLER as
set forth in Paragraph 2 of Article VII hereof. 

	 	(e)	 Definition of Banking days: For the purpose of this Paragraph, “banking days” means days excluding Saturday, Sunday and public holidays
in Tokyo, Monaco, The Netherlands and New York. 

  

	5.	 Payment under Dispute 

No payment under this Contract shall be delayed or withheld by the BUYER on account of any dispute or disagreement of
whatsoever nature arising between the parties hereto subject always to the Buyer’s rights to set off in accordance with Article II paragraph 7 hereof. 
  

	6.	 Prepayment: 

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

	7.	 Set-off 

All payment payments by the BUYER to SELLER hereunder shall be made by means of telegraphic transfer. Setoff and counterclaims
by the BUYER shall not be allowed unless the BUYER’s claims for such setoff or counterclaims arise 

  
 10 

 
under or in relation to the Contract. For the avoidance of the doubt, the BUYER’s claims in relation to the other vessels shall not be allowed to be used for setoff or counterclaims
hereunder. 
 (End of Article) 

  
 11 

 ARTICLE III - ADJUSTMENT OF CONTRACT PRICE 

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

	1.	 Delivery 

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

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

 However, the total reduction in the Contract Price shall not be more than as would be the case for a
delay of one hundred and twenty (120) days, counting from midnight of the thirtieth (30th) day after the Delivery Date at the above specified rate of reduction. That is, at a total reduction of
US$            . 

	 	(c)	 But, if the delay in delivery of the VESSEL should continue for period of one hundred and twenty (120) days from the thirty-first
(31st) day after the Delivery Date, then in such event, and after such period has expired, the BUYER may, at its option rescind this Contract in accordance with the provisions of Article X hereof. The SELLER may, at any time after the
expiration of one hundred and fifty (150) days of delay in delivery from the Delivery Date, if the BUYER has not served notice as provided in Article X hereof, demand in writing that the BUYER shall make an election, in which case the BUYER
shall, within fifteen (15) days after such demand is received by the BUYER, notify the SELLER of its intention either to rescind this Contract or to consent to the acceptance of the VESSEL at an agreed future date; it being understood by the
parties hereto that, if the VESSEL is not delivered by such future date, the 

  
 12 

	 	 
BUYER shall have the same right of rescission 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 and/or any other reasons under this Contract, is not delivered by the Delivery Date. 

 

	2.	 Speed: 

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

	 	(b)	 However, exceeding such deficiency of three-tenths (3/10) of one (1) knot in actual speed below the Guaranteed Trial Speed of the VESSEL, the
Contract Price shall be reduced as follows: 

     More than three-tenths
(3/10) and not more than 
     four-tenths (4/10) of a knot a total sum of
US$            .- 
     More than
four-tenths (4/10) and not more than 
     five-tenths (5/10) of a knot a total sum of
US$            .- 
     More than
five-tenths (5/10) and not more than 
     six-tenths (6/10) of a knot a total sum of
US$            .- 
     More than
six-tenths (6/10) and not more than 
     seven-tenths (7/10) of a knot a total sum of
US$            .- 
     More than
seven-tenths (7/10) and not more than 
     eight-tenths (8/10) of a knot a total sum of
US$            .- 
     More than
eight-tenths (8/10) and not more than 
     nine-tenths (9/10) of a knot a total sum of
US$            .- 
     More than
nine-tenths (9/10) and not more than 
     one (1) knot a total sum of
US$            .- 

	 	(c)	 If the deficiency in actual speed of the VESSEL upon trial run is more than one (1) full knot below the Guaranteed Trial Speed of the VESSEL,
then the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the Contract Price as above provided for one (1) full knot only,
that is, at a total reduction of US$            -. 

  
 13 

	3.	 Fuel Oil Consumption: 

	 	(a)	 The Contract Price shall not be affected or changed by reason of the fuel oil consumption of the VESSEL, as determined by shop trial as per the
Specifications, being more than the Guaranteed Fuel Oil Consumption of the VESSEL, if such excess is not more than five percent (5%) over the Guaranteed Fuel Oil Consumption. 

	 	(b)	 However, exceeding an excess of five percent (5%) in the actual fuel consumption over the Guaranteed Fuel Oil Consumption of the VESSEL, the
Contract Price shall be reduced by the sum of US$            .- for each full one percent (1%) increase in fuel consumption above said five percent (5%) (fractions of one percent
(1%) to be disregarded), up to a maximum of twelve percent (12%) over the Guaranteed Fuel Oil Consumption of the VESSEL. 

	 	(c)	 If such actual fuel consumption exceeds twelve percent (12%) of the Guaranteed Fuel Oil Consumption of the VESSEL, the BUYER may, at its
option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the Contract Price as above specified for twelve percent (12%) only, that is, at a total
reduction of 
US$            . 

  

	4.	 Deadweight: 

	 	(a)	 The Contract Price shall not be affected or changed by reason of the actual deadweight of the VESSEL as determined in accordance with the
Specifications, being less than the Guaranteed Deadweight of the VESSEL, if such deficiency is not more than 610 metric tons below the Guaranteed Deadweight of the VESSEL. 

	 	(b)	 In the event of such deficiency is more than 610 metric tons below the Guarantee Deadweight of the VESSEL, the Contract Price shall be reduced by
the sum of US$            .- for each metric ton of such deficiency. 

	 	(c)	 In the event of such deficiency in the actual deadweight of the VESSEL being 1,830 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 accept the VESSEL at a reduction in the Contract Price as above provided for 1,830 metric tons only, that is, at a total reduction of
US$            . 

  
 14 

	5.	 Effect of Rescission: 

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

  
 15 

 ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS 

AND INSPECTION DURING CONSTRUCTION 

The inspection, supervision and approval of plans and drawings during the construction of the VESSEL shall be carried out by a
Japanese supervising company (hereinafter called the “Supervising Company”) which shall be nominated by the BUILDER at the BUILDER’s cost and expense. 

Any decision regarding the approval of plans, drawings and supervising during construction shall be made by the Supervising
Company at its sole discretion and such decision shall not require any prior consultation with the BUYER or approval of the BUYER. 
  

	1.	 Approval of Plans and Drawings: 

The BUILDER shall submit to the Supervising Company the plans and drawings to be submitted thereto for its approval. 

 

	2.	 Appointment of Supervising Company’s Supervisor: 

The Supervising Company shall send to and maintain at the Shipyard one supervisor (herein called the “Supervisor”) to
act in connection with approval of the plans and drawings, attendance to the tests and inspections relating to the VESSEL, its machinery, equipment and out fitting. 
  

	3.	 Inspection by Supervisor: 

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

In the event that the Supervisor discovers any construction or material or workmanship which is not deemed to conform to the
requirements of this Contract and/or the Specifications, the Supervisor shall promptly give the BUILDER a notice in writing as to such non-conformity. Upon receipt of such notice from the Supervisor, the BUILDER shall correct such non-conformity, if
the BUILDER agrees to his view. 

  
 16 

 Performance Standard for Protective Coatings (PSPC) for ballast tanks required by
IMO shall be applied to the VESSEL. Inspections thereto shall be carried out by the qualified inspector(s) of the BUILDER and/or the qualified inspector(s) appointed by the BUILDER, whose determination shall be deemed final so far as the application
of the PSPC to the VESSEL is concerned. 
  

	4.	 Undertaking of BUILDER: 

The BUILDER undertakes that the supervision of and the construction of the VESSEL shall be carried out as if the VESSEL was for
their internal account and management. For the avoidance of doubt, the SELLER shall, regardless of any appointment of any Supervisor by the BUILDER, remain liable to sell and deliver the VESSEL to the BUYER in accordance with the terms of this
Contract. 
  

	5.	 Representative of BUYER: 

The BUYER may appoint one (1) representative as observer (hereinafter called the “Representative”) who can visit the Shipyard
two (2) times for three (3) days each after the erection of the first block on the dock until delivery of the Vessel for observing purpose only at the BUYER’s risk and expense and subject to at least one week prior notice to the
SELLER and the BUILDER. The Representative shall not interfere with or obstruct in any way the BUILDER’s and the Supervisor’s supervision during construction of the VESSEL and/or the building schedule of the BUILDER, but shall be given
free and ready access to the VESSEL, its hull, machinery, equipment and out fittings during construction of the VESSEL only in the Shipyard. 

(End of Article) 

  
 17 

 ARTICLE V - MODIFICATIONS 

 

	1.	 Modifications of Specifications: 

The Specifications may be modified and/or changed by written agreement of the parties hereto, provided that such modifications
and/or changes or an accumulation thereof will not, in the BUILDER’s judgement, adversely affect the BUILDER’s planning or program in relation to the BUILDER’s other commitments, and provided, further, that the BUYER shall first
agree, before such modifications and/or changes are carried out, to alterations in the Contract Price, the Delivery Date and other terms and conditions of this Contract and the Specifications occasioned by or resulting from such modifications and/or
changes. 
 Such agreement may be effected by exchange of letters signed by the authorized representatives of the parties
hereto or by facsimile confirmed by such letters manifesting agreements of the parties hereto which shall constitute amendments to this Contract and/or the Specifications. 

The BUILDER may make minor changes to the Specifications without alterations to the Contract Price, if found necessary for
introduction of improved production methods. 
  

	2.	 Change in Class, etc.: 

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

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

  
 18 

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

	 	(c)	 In case the BUYER demands for change of or alterations to the plans or drawings which have already been approved by the Supervising Company,
provided such alterations or changes are not compulsory for the VESSEL, the SELLER shall have the right to reject such demand if work has already been arranged to start in accordance with the approved plans and drawings. Any alteration to the plans
and drawings which have already been approved by the Supervising Company shall be regarded as modifications as specified in this Article and shall include adjustments of Contract Price, the Delivery Date and other terms and conditions of this
contract and the Specifications. 

 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 SELLER and/or the BUILDER may, provided that the BUYER shall so agree in writing, supply other materials capable of meeting the
requirements of the Classification Society and of the rules, regulations and requirements with which the construction of the VESSEL must comply. Any agreement as to such substitution of materials shall be effected in the manner provided in paragraph
1 of this article, and shall, likewise, include alterations in 

  
 19 

 
the Contract Price and other terms and conditions of this Contract occasioned by or resulting from such substitution. 

(End of Article) 

  
 20 

 ARTICLE VI - TRIAL 

 

	1.	 Notice: 

The BUYER shall receive from the SELLER at least fourteen (14) days prior notice in writing or by facsimile confirmed in
writing of the time and place of the trial run of the VESSEL, and the BUYER shall promptly acknowledge receipt of such notice. The BUYER may send one Master, one Chief Engineer and the Representative (herein collectively called the
“Observers”) on board the VESSEL to witness such trial run for familiarization purpose at the BUYER’s risk and expenses. Failure in attendance of the Observers 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 the Observers on board the VESSEL at the trial run, and the SELLER shall cause the BUILDER may conduct the trial run without the
Observers of the BUYER being present, and in such case the BUYER shall be obligated to accept the VESSEL on the basis of a certificate of the BUILDER that the VESSEL, upon trial run, is found to conform to this Contract and the Specifications. 

 

	2.	 Weather Condition: 

The trial run shall be carried out under the weather condition which is deemed favorable enough by the judgement of the
BUILDER. In the event of unfavorable weather on the date specified for the trial run, the same shall take place on the first available day thereafter that the weather condition permits. It is agreed that, if during the trial run of the VESSEL, the
weather should suddenly become so unfavorable that orderly conduct of the trial run can no longer be continued, the trial run shall be discontinued and postponed until the first favorable day next following, unless the BUYER shall assent in writing
to acceptance of the VESSEL on the trial run already made before such discontinuance has occurred. Any delay of trial run caused by such unfavorable weather condition shall operate to postpone the Delivery Date by the period of delay involved and
such delay shall be deemed as a permissible delay in the delivery of the VESSEL. 
  

	3.	 How conducted: 

	 	(a)	 The SELLER shall procure that all expenses in connection with the trial run are to be for the account of the BUILDER and the BUILDER shall

  
 21 

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

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

  

	 	4.	 Method of Acceptance or Rejection: 

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

	 	(b)	 However, should the results of the trial run indicate that the VESSEL, or any part or equipment thereof, dose not conform to the requirements of
this Contract and/or the Specifications, or if the SELLER and/or the BUILDER is in agreement to non-conformity as specified in the BUYER’s notice of rejection, then, the SELLER shall cause the BUILDER shall take necessary steps to correct such
non-conformity. Upon completion of correction of such non-conformity, the SELLER and/or the BUILDER shall give the BUYER a notice thereof by facsimile confirmed in writing. The BUYER shall, within three (3) Banking days after receipt of such

  
 22 

	 	 
notice from the SELLER and/or the BUILDER, notify the SELLER and/or the BUILDER of its acceptance or rejection of the VESSEL. 

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

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

	 	(e)	 Any dispute between the BUYER and the SELLER as to the conformity or nonconformity of the vessel to the requirement of this contract or these
specifications shall first be referred to the judgment of classification society but if the classification society fails to make a judgment or can’t do so the matter shall be referred to arbitration in accordance with Article XIII hereof.

	 	(f)	 The BUYER shall not be entitled to reject the VESSEL by reason of any minor non-conformities, judged from the point of view of the commonly and
generally acknowledged Japanese standard shipbuilding and shipping practice and provided always that any minor non-conformities do not affect the VESSEL’s normal operation in its intended trade and do not affect Class, but in which case, the
SELLER and/or the BUILDER shall not be released from the obligation to correct and/ or remedy such minor non-conformities at their own cost and expense as soon as practicable after the delivery of the VESSEL. 

 

	5.	 Effect of Acceptance: 

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

  
 23 

	6.	 Disposition of surplus Consumable stores: 

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

 

	7.	 Familiarization: 

	 	(a)	 Prior to the delivery but after the sea trial, the BUYER may send their crew to the Shipyard in preparation for the delivery with the SELLER’s
and/or the BUILDER’s consent. Up to four crews (Master, Chief Engineer, Chief Officer and 1st Engineer) shall be allowed to attend the vessel during sea trials. The above mentioned Observers
and crew of the BUYER shall not interfere with or obstruct in any way the BUILDER’s supervision during the construction of the VESSEL and/or the building schedule of the BUILDER, but shall be given free and ready access to the VESSEL, its hull,
machinery, equipment, coatings and out-fittings in the Shipyard only and in such way not to obstruct smooth construction of the Vessel. 

	 	(b)	 The Observers and the crew shall at all times be deemed to be the employees of the BUYER and not of the SELLER and/or the BUILDER. The SELLER
and/or the BUILDER shall be under no liability whatsoever to the BUYER, the Observers and the crew for personal injuries, including death, suffered during the time when he or they are on the VESSEL, or within the premises of the Shipyard, or are
otherwise engaged in and about the construction of the VESSEL, unless, however, such personal injuries, including death, were caused by a gross negligence of the SELLER and/or the BUILDER, or of any of its employees or agents or subcontractors. Nor
shall the SELLER and/or the BUILDER be under any liability whatsoever to the BUYER, the Observers and the crew for damage to, or loss or destruction of property in Japan of the BUYER or of the Observers and the crew, unless such damage, loss or
destruction were caused by a gross negligence of the SELLER and/or the BUILDER, or of any of its employees or agents or subcontractors. 

(End of Article) 

  
 24 

 ARTICLE VII - DELIVERY 

 

	1.	 Time and Place: 

The VESSEL shall be delivered by the SELLER to the BUYER at the Shipyard or at an affiliated shipyard of the BUILDER or at the
mutually agreed place not earlier than                      and not later than
                     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.	 When and How Effected: 

Provided that the BUYER shall have fulfilled all of its obligations stipulated under this Contract, delivery of the VESSEL
shall be effected forthwith by the concurrent delivery by each of the parties hereto to the other of the PROTOCOL OF DELIVERY AND ACCEPTANCE, acknowledging delivery of the VESSEL by the SELLER and acceptance thereof by the BUYER. 

 

	3.	 Documents to be delivered to BUYER: 

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

	 	(a)	 PROTOCOL OF TRIALS of the VESSEL made 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 Specification.

	 	(c)	 PROTOCOL OF STORES OF CONSUMABLE NATURE referred to under paragraph 3 (b) and paragraph 6 of Article VI hereof, including the original
purchase prices thereof. 

	 	(d)	 ALL CERTIFICATES required to be furnished upon delivery of the VESSEL pursuant to this Contract and the Specifications. It is agreed that if,
through no fault on the part of the SELLER and/or the BUILDER, the classification certificate and/ or other certificates are not available at the 

  
 25 

	 	 
time of delivery of the VESSEL, provisional certificate shall be accepted by the BUYER, provided that the SELLER shall cause the BUILDER shall furnish the BUYER with the formal certificates as
promptly as possible after such formal certificates have been issued. 

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

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

	 	(g)	 COMMERCIAL IN VOICE 

	 	(h)	 BILL OF SALE 

	 	(i)	 BUILDER’S CERTIFICATE issued by the Shipyard 

	 	(j)	 Any other documents concerning the VESSEL reasonably required by the BUYER 

 

	4.	 Tender of VESSEL: 

If the BUYER fails to take delivery of the VESSEL after completion thereof in accordance with the terms and conditions of this
Contract and the Specifications, the SELLER shall have the right to tender delivery of the VESSEL after compliance with all procedural requirements as above provided. 
  

	5.	 Title and Risk: 

Title to and risk of loss of the VESSEL shall pass to the BUYER only upon delivery and acceptance thereof having been completed
as stated above as evidenced by the protocol of delivery and acceptance being duly signed by the Seller and the Buyer; it being expressly understood that, until such delivery is effected, title to and risk of loss of the VESSEL and her equipment
shall remain at all times with the SELLER. 
  

	6.	 Removal of VESSEL: 

The BUYER shall take possession of the VESSEL immediately upon 

  
 26 

 
delivery and acceptance thereof and shall remove the VESSEL from the premises of the Shipyard within three (3) days after delivery and acceptance thereof is effected. If the BUYER shall not
remove the VESSEL from the premises of the Shipyard within the aforesaid three (3) days, then, in such event the BUYER shall pay to the SELLER or the BUILDER the reasonable mooring charges of the VESSEL. But the BUYER shall be obliged to remove
the VESSEL from the Shipyard within ten (10) days after the delivery and acceptance thereof. 
 (End of Article) 

  
 27 

 ARTICLE VIII - DELAYS AND EXTENSION OF 

TIME FOR DELIVERY (FORCE MAJEURE) 
  

	1.	 Causes of Delay: 

If, at any time before the actual delivery, either the construction of the VESSEL or any performance required as a prerequisite
of delivery of the VESSEL is delayed due to Acts of God; acts of princes or rulers; requirements of government authorities; war or other hostilities or preparation therefore; blockade; revolution, insurrections, mobilization, civil war, civil
commotion or riots; vandalism; sabotages, strikes, lockouts or other labor disturbances; labor shortage; plague or other epidemics; quarantines; flood, typhoons, hurricanes, storms or other weather conditions not included in normal planning;
earthquakes; tidal waves; fires, explosions, collisions or stranding; embargoes; delays or failure in transportation; shortage of materials, machinery or equipment only if the BUILDER could not physically secure same despite its diligent efforts;
import restrictions; inability to obtain delivery or delays in delivery of materials, machinery or equipment, provided that at the time of ordering the same could reasonably be expected by the BUILDER to be delivered in time; prolonged failure,
shortage or restriction of electric current, oil or gas; defects in materials, machinery or equipment which could not have been detected by the BUILDER using reasonable care; casting or forging rejects or the like not due to negligence; delays
caused by the Classification Society or other bodies whose documents are required; destruction of or damage to the Shipyard or works of the BUILDER, its subcontractors or suppliers, or of or to the VESSEL or any part thereof, by any cause herein
described; delays in the BUILDER’s other commitments resulting from any causes herein described which in turn delay the construction of the VESSEL or the BUILDER’s performance under this Contract; and other causes or accidents beyond
control of the SELLER and/or the BUILDER, its subcontractors or suppliers of the nature whether or not indicated by the forgoing words; then and in any such case, the Delivery Date shall be postponed for a period of time which shall not exceed total
accumulated time of all such delays. 
  

	2.	 Notice of Delay: 

Within ten (10) days after the date of occurrence of any cause of delay, on account of which the SELLER claims that it is
entitled under this Contract to a 

  
 28 

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

	3.	 Definition of Permissible Delay: 

Delays on account of such causes as specified in Paragraph 1 of this Article and any other delays of a nature which under the
terms of this Contract permits postponement of the Delivery Date shall be understood to be permissible delays and are to be distinguished from unauthorized delays on account which the Contract Price is subject to adjustment as provided for in
Article III hereof. 
  

	4.	 Right to Rescind for Excessive Delay: 

If the total accumulated time of all delays on account of the causes specified in Paragraph 1 of this Article, amounts to One
Hundred and Fifty (150) days or more, then, in such event, the BUYER may rescind this Contract in accordance with the provisions of Article X hereof. The SELLER may, at any time after the accumulated time of the aforementioned delays justifying
rescission by the BUYER, demand in writing that the BUYER shall make an election, in which case the BUYER shall, within twenty (20) days after such demand is received by the BUYER, either notify the SELLER of its intention to rescind this
Contract, or consent to a postponement of the Delivery Date to a specific future date; it being understood and agreed by the parties hereto that, if any further delay occurs on account of causes justifying rescission as specified in this Article,
the BUYER shall have the same right of rescission upon the same terms as hereinabove provided. 
 (End of Article) 

  
 29 

 ARTICLE IX - WARRANTY OF QUALITY 

 

	1.	 Guarantee: 

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

 

	2.	 Notice of Defects: 

The BUYER shall notify the SELLER and the BUILDER in writing, or by facsimile confirmed in writing, of any defects for which
claim is made under this guarantee as promptly as possible after discovery thereof. The BUYER’s written notice shall describe the nature and extent of the defects. The SELLER and the BUILDER shall have no obligation for any defects discovered
prior to the expiry date of the said twelve (12) months period, unless notice of such defects is received by the SELLER and/or the BUILDER not later than twenty (20) days after such expiry date. 

 

	3.	 Remedy of Defects: 

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

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

  
 30 

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

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

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

 

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

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

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

  
 31 

	 	 
other circumstance whatsoever beyond the control of the SELLER and the BUILDER. 

  

	(c)	 

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

  
 32 

 ARTICLE X - RESCISSION BY BUYER 

 

	1.	 Notice: 

The payments made by the BUYER prior to the delivery of the VESSEL shall be in the nature of advances to the SELLER. In the
event that the BUYER shall exercise its right of rescission of this Contract under and pursuant to any of the provisions of this Contract specifically permitting the BUYER to do so, or when the SELLERS is in default as defined in clause 2 of this
Article, then the BUYER shall notify the SELLER in writing or by facsimile confirmed in writing. 
  

	2.	 Definition of the SELLER’s Default: 

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

 

	 	(a)	 If a petition is filed or an order is made or an effective resolution is passed for the winding up or dissolution or liquidation of the SELLER or
its guarantor who shall guarantee the SELLER’s obligation and due performance under this Contract (hereinafter called the “ITOCHU”); or if a Receiver is appointed of the undertaking or property of the SELLER or the ITOCHU; or if the
SELLER, or the ITOCHU shall apply to any Court for protection from its creditors; or if any similar process or proceeding to the aforesaid is initiated under the laws of any relevant jurisdiction; or if the SELLER or the ITOCHU is unable, or admits
its inability, to pay any of its debts as and when they fall due; or if the SELLER or the ITOCHU generally suspends payments; or if the SELLER or the ITOCHU makes any special arrangement or composition with its creditors; or 

 

	 	(b)	 If the SELLER or ITOCHU is in material breach of any terms or conditions of this CONTRACT and the SELLER or ITOCHU has not rectified the same
within twenty (20) days of being notified by the BUYER of such breach; or 

  

	 	(c)	 If the Corporate Guarantee by ITOCHU is not issued and/or is not maintained in accordance with the terms of this CONTRACT; 

 

	 	(d)	 If the SELLER or ITOCHU ceases to carry on its business. 

  
 33 

	3.	 Effect of the Default and Refund: 

In the event that the BUYER shall exercise its right of rescission of this CONTRACT, the BUYER shall notify the SELLER by
facsimile confirmed in writing and such rescission shall be effective as of the date notice thereof is received by the SELLER, unless otherwise specifically agreed or provided. Within fifteen (15) days from the date of receipt by the SELLER of
such notice of rescission of this CONTRACT, the SELLER shall refund to the BUYER the full amount of all sums paid by the BUYER to the SELLER on account of the VESSEL, unless the SELLER disputes the entitlement of the BUYER to rescind this CONTRACT
and proceeds to an arbitration under the provisions of Article XIII hereof, in which case the SELLER’s obligation to refund the BUYER shall be postponed until an arbitration award between the BUYER and the SELLER, which shall be in favour of
the BUYER, declaring the BUYER’s cancellation and/or rescission justified, is issued by the arbitration tribunal. 
 In
such event, the SELLER shall pay to the BUYER the sum as liquidated damages calculated at the rate of six percent (6%) per annum on the amount required herein to be refunded to the BUYER, computed from the respective dates on which such amount
was paid by the BUYER to the SELLER to the date of remittance by telegraphic transfer of such refund together with the aforesaid liquidated damages to the BUYER by the SELLER, provided, however, that if the said rescission by the BUYER is made under
the provisions of paragraph 4 of Article VIII hereof, then in such event the SELLER shall not be liable to pay any sum, either as liquidated damages, interest or in any other nature whatsoever, for the period of permissible delays – 

In such event the SELLER shall also return to the BUYER all of the BUYER’s Supplies which were not incorporated in the
VESSEL and pay to the BUYER as amount equal to the cost to the BUYER of those supplies that were incorporated into the VESSEL. 
  

	4.	 Discharge of Obligations: 

Upon such refund by the SELLER to the BUYER, all obligations, duties and liabilities of each of the parties hereto to the other
under this Contract shall be forthwith completely discharged. 
 (End of Article) 

  
 34 

 ARTICLE XI - BUYER’S DEFAULT 

 

	1.	 Definition of Default: 

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

	 	(a)	 If the BUYER fails to pay any of the First and Third Installments to the SELLER within three (3) banking days after such Installment becomes
due and payable under the provisions of Article II hereof; or 

	 	(b)	 If the BUYER fails to pay the Second installment on or before
                    ; or 

	 	(c)	 If the BUYER fails to, at least two (2) banking day prior to the scheduled Delivery Date of the VESSEL, make cash deposit with the
SELLER’s Bank for the account of the SELLER with remarks of “Hull No.             ” as provided in Article II hereof, by telegraphic transfer (by using forms MT199/103
or equivalent), covering the amount of this Installment as adjusted in accordance with the provisions of this Contract Price; or 

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

	 	(e)	 If a petition is filed or an order is made or an effective resolution is passed for the winding up or dissolution or liquidation of the BUYER or
its guarantor who shall guarantee the BUYER’s obligation and due performance under this Contract (hereinafter called the “GUARANTOR”); or if a Receiver is appointed of the undertaking or property of the BUYER or the GUARANTOR; or if
the BUYER or the GUARANTOR shall apply to any Court for protection from its creditors; or if any similar process or proceeding to the aforesaid is initiated under the laws of any relevant jurisdiction; or if the BUYER or the GUARANTOR is unable, or
admits its inability, to pay any of its debts as and when they fall due; or if the BUYER or the GUARANTOR generally suspends payment; or if the BUYER or the GUARANTOR makes any special arrangement or composition with its creditors; or

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

	 	(g)	 If the BUYER or the GUARANTOR is in material breach of this Contract and fails to remedy same within twenty (20) Business days after the
SELLER’s notice. 

  
 35 

	2.	 Interest and Charge: 

If the BUYER is in default to payment as to any Installment as provided in Paragraph 1 (a), (b) and (c) of this
Article, the BUYER shall pay interest on such Installment at the rate of six percent (6%) per annum from the due date thereof to the date of payment to the SELLER of the full amount including interest; in case the BUYER shall fail take delivery of
the VESSEL as provided in Paragraph 1 (d) of this Article, the BUYER shall be deemed in default of payment of the Fourth Installment and shall pay interest thereon at same rate as aforesaid from and including the day on which the VESSEL is tendered
for delivery by the SELLER. In any event default by the BUYER, the BUYER shall also pay all charges and expenses incurred by the SELLER and the BUILDER in consequence of such default. 

 

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

 

	4.	 Sale of VESSEL: 

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

	 	(b)	 In the event of the sale of the VESSEL in its completed state, the proceeds of the sale received by the SELLER shall be applied firstly to payment
of all expenses attending such sale and otherwise incurred by the SELLER 

  
 36 

	 	 
as a result of the BUYER’s default, and then to payment of all unpaid Installments of the Contract Price and interest on such Installment at the rate of six percent (6%) per annum from
the respective due dates thereof to the date of application. 

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

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

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

 (End of Article) 

  
 37 

 ARTICLE XII - INSURANCE 

 

	1.	 Extent of Insurance Coverage: 

Until the VESSEL is completed, delivered to and accepted by the BUYER, the SELLER shall cause the BUILDER, at its own cost and
expense, to 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, except for the BUYER’s Supplies, fully insured with
Japanese insurance companies under coverage corresponding to the Japanese Builder’s Risks Insurance Clause. 
 The
amount of such insurance coverage shall, up to the date of delivery of the VESSEL, be in an amount at least equal to, but not limited to, the aggregate of the payment made by the BUYER to the SELLER. 

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

	2.	 Application of Recovered Amount: 

	 	(a)	 Partial Loss: 

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

	 	(b)	 Total Loss: 

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

	 	i)	 To 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

  
 38 

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

	 	ii)	 To refund immediately to the BUYER the amount of all Installments paid to the SELLER under this Contract without any interest, whereupon this
Contract shall be deemed to be rescinded and all rights, duties, liabilities and obligations of each of the parties to the other shall terminate forthwith. 

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

	3.	 Termination of the Obligation to Insure: 

The SELLER’s obligation to cause the BUILDER to insure the VESSEL hereunder shall cease and terminate forthwith upon
delivery thereof and acceptance by the BUYER. 
 (End of Article) 

  
 39 

 ARTICLE XIII - DISPUTE AND ARBITRATION 

 

	1.	 Proceedings: 

In the event of any dispute between the parties hereto as to any matter arising out of or relating to this Contract or any
stipulations herein or with respect hereto which cannot be settled by the parties themselves, such dispute shall be submitted to and settled by arbitration held in London, England in accordance with the laws of England and the rules of London
Maritime Arbitration Association (“LMAA”). 
 Either party may demand arbitration of any such dispute by giving
written notice to the other party. Any demand for arbitration by either of the parties hereto shall state the name of the first arbitrator appointed by such party and shall also state specifically the questions as to which such party is demanding
for arbitration. Within twenty (20) days after receipt of notice of such demand for arbitration, the other party shall in turn appoint the second arbitrator. The above two arbitrators thus appointed shall thereupon select the third arbitrator,
and the three arbitrators so named shall constitute the board of arbitration (hereinafter called the “Arbitration Board”) for the settlement of such dispute. In the event, however, that said other party should fail to appoint a second
arbitrator as aforesaid within twenty (20) days following receipt of notice of demand for arbitration, it is agreed that such party shall thereby be deemed to have accepted and appointed as its own arbitrator the one already appointed by the
party demanding arbitration, and the arbitration shall proceed forthwith before this sole arbitrator, who alone, in such event, shall constitute the Arbitration Board. And in the further event that two arbitrators appointed by the parties hereto as
aforesaid should be unable to agree to the third arbitrator within twenty (20) days from the date on which the second arbitrator is appointed, the third arbitrator shall be appointed by the Exchange. 

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

  
 40 

 Notwithstanding the preceding provisions of this Paragraph, it is recognized that
in the event of any dispute or difference of opinion arising in regard to the construction of the VESSEL, her machinery, equipment and outfittings, or concerning the quality of materials or workmanship thereof or thereon or in regard to
interpretation of the Specifications, such dispute may be referred by either party to the Classification Society in Tokyo, Japan, for final resolution which shall be binding upon both parties upon mutual agreement of the parties hereto, so far as
the Classification Society agrees to determine such dispute. The cost and expense or reference of dispute to resolution of such party shall be borne by the party against whom the dispute is resolved. 

 

	2.	 Notice of Award: 

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

 

	3.	 Expenses: 

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

	4.	 Entry in Court: 

Judgement upon the award may be obtained or entered in any court having jurisdiction thereof. 

 

	5.	 Alteration of Delivery Date: 

In the event of reference to arbitration of any dispute arising out of matters occurring prior to delivery of the VESSEL, the
award may include any postponement of the Delivery Date which the Arbitration Board may deem appropriate. 
 (End of Article) 

  
 41 

 ARTICLE XIV - RIGHT OF ASSIGNMENT 

Neither of the parties hereto shall assign this Contract to a third party unless prior consent of the other party is given in
writing. SELLER to provide their consent in the assignment of the contract to the BUYER’s financing bank upon request from the BUYERS. Such consent not to be unreasonably withheld or delayed by the SELLER. 

In case of assignment by the BUYER, the BUYER shall remain liable under this Contract. 

This Contract shall enure to the benefit of and shall be binding upon the lawful successors or the legitimate assigns of either
of parties hereto. 
 (End of Article) 

  
 42 

 ARTICLE XV - TAXES AND DUTIES 

 

	1.	 Taxes and Duties in Japan: 

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

	2.	 Taxes and Duties outside Japan: 

The BUYER shall bear and pay all taxes and duties imposed outside Japan in connection with execution and/or performance of this
Contract, except for taxes and duties imposed upon those items to be procured by the SELLER or the BUILDER for construction of the VESSEL. 

(End of Article) 

  
 43 

 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 manufactures. 

The SELLER and 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 right are hereby expressly reserved to the true and lawful owners thereof. 
 The SELLER’s
and the BUILDER’s warranty hereunder does not extend to the BUYER’s Supplies. 
  

	2.	 General Plans, Specifications and Working Drawing: 

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. 

(End of Article) 

  
 44 

 ARTICLE XVII - BUYER’S SUPPLIES 

 

	1.	 Responsibility of BUYER: 

  

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

  

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

  

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

  

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

  
 45 

	 	 
such delay in delivery of the BUYER’s Supplies and such payment shall be made upon delivery of the VESSEL. 

 

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

  

	2.	 Responsibility of the SELLER and/or the BUILDER: 

The SELLER shall cause the BUILDER to 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 SELLER and/or the BUILDER shall not be
responsible for quality, efficiency and/or performance of any of the BUYER’s Supplies. 
 (End of Article) 

  
 46 

 ARTICLE XVIII - COMPLIANCE AND ANTI-BRIBERY 

 

	1.	 Representations of the Parties: 

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

 

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

  

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

  

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

  

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

 

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

  
 47 

	2.	 Indemnification: 

Each party agrees that it will fully indemnify, defend and hold harmless the other party from any claims, liabilities,
damages, expenses, penalties, judgments and losses (including reasonable attorneys’ fees) assessed or resulting by reason of a breach of the representations and undertakings contained in this Article XVIII to the extent permitted by law. 

(End of Article) 

  
 48 

 ARTICLE XIX - NOTICE 

 

	1.	 Address: 

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

 
  

	    	 To the BUYER: 

To the SELLER: 

c/o ITOCHU Corporation 

  5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo, Japan 

Attn.: Marine Section No. 1 / Marine Department 
  

	2.	 Language: 

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

(End of Article) 

  
 49 

 ARTICLE XX - EFFECTIVE DATE OF CONTRACT 

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

However, in the event that the Construction Permit for the VESSEL shall not have been issued by the Japanese Government before the
installation of the first block of the VESSEL on the drydock, then in such case, the SELLER shall immediately refund all amounts received from the BUYER to date (“Amounts Received”) and this CONTRACT shall thereafter become null and void,
unless otherwise mutually agreed in writing between the parties hereto, and the parties hereto shall be completely discharged from all of their obligations to each other under this CONTRACT 

(End of Article) 

  
 50 

 ARTICLE XXI - INTERPRETATION 

 

	1.	 Laws Applicable: 

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

	2.	 Discrepancies: 

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

  
 51 

 IN WITNESS WHEREOF, the parties hereto have caused this Contract to be
duly executed the day and year first above written in Monaco the Principality of Monaco. 
 Two (2) original
Contract copies are to be made, and possessed by the both parties. 
 BUYER: 
  

			
		
		 	
	  

	 By:
	 	
	 Title:
	 	

 SELLER: Lavender Maritime S.A. 
  

			
		
		 	
	  

	 By:
	 	
	 Title:
	 	

  
 52EX-10.8

 Exhibit 10.8 

SHIPBUILDING CONTRACT 
 FOR

 THE CONSTRUCTION AND SALE 

OF 
 One (1) 180,000 dwt
Drybulk Carrier 
 (HULL NO.:             ) 

BY AND BETWEEN 
 [SUBSIDIARY]

 (as BUYER) 
 AND

 DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD. 

(as BUILDER) 

  

					
		  		  	

 Table of Contents 

 

					
	 ARTICLE I.          DESCRIPTION AND CLASS
	  	 	1	  
		
	 1.         Description:
	  	 	1	  
	 2.         Dimensions and Characteristics:
	  	 	1	  
	 3.         Classification, Rules and Regulations:
	  	 	1	  
	 4.         Subcontracting of Construction Work:
	  	 	2	  
	 5.         Registration:
	  	 	2	  
		
	 ARTICLE II.         CONTRACT PRICE AND TERMS OF PAYMENT
	  	 	3	  
		
	 1.         Contract Price:
	  	 	3	  
	 2.         Currency:
	  	 	3	  
	 3.         Terms of Payment:
	  	 	3	  
	 4.         Method of Payment:
	  	 	4	  
	 5.         Corporate Guarantee:
	  	 	5	  
		
	 ARTICLE III.       ADJUSTMENT OF CONTRACT PRICE
	  	 	5	  
		
	 1.         Delivery:
	  	 	5	  
	 2.         Speed:
	  	 	6	  
	 3.         Fuel Consumption:
	  	 	7	  
	 4.         Deadweight:
	  	 	7	  
	 5.         Conclusive Pecuniary Compensation:
	  	 	8	  
	 6.         Effect of Termination:
	  	 	8	  
		
	 ARTICLE IV.       APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING CONSTRUCTION
	  	 	8	  
		
	 1.         Approval of Plans and Drawings:
	  	 	8	  
	 2.         Appointment of Buyer’s Representative:
	  	 	9	  
	 3.         Inspection:
	  	 	9	  
	 4.         Facilities:
	  	 	10	  
	 5.         Liability of Builder:
	  	 	10	  
	 6.         Responsibility of Buyer:
	  	 	11	  
		
	 ARTICLE V.        MODIFICATIONS
	  	 	11	  
		
	 1.         Modification of Specifications:
	  	 	11	  
	 2.         Change in Class, etc.:
	  	 	12	  
	 3.         Substitution of Materials:
	  	 	12	  
		
	 ARTICLE VI.       TRIALS
	  	 	13	  
		
	 1.         Notices:
	  	 	13	  
	 2.         Weather Conditions:
	  	 	13	  
	 3.         How Conducted:
	  	 	13	  
	 4.         Method of Acceptance or Rejection:
	  	 	14	  
	 5.         Effect of Acceptance:
	  	 	15	  
	 6.         Disposition of Surplus Consumable Stores:
	  	 	15	  
		
	 ARTICLE VII.     DELIVERY DATE AND DELIVERY
	  	 	16	  
		
	 1.         Time and Place:
	  	 	16	  
	 2.         When and How Effected:
	  	 	16	  
	 3.         Documents to be Delivered to Buyer:
	  	 	16	  
	 4.         Tender of Vessel:
	  	 	18	  
	 5.         Title and Risk:
	  	 	18	  
	 6.         Removal of Vessel:
	  	 	18	  
		
	 ARTICLE VIII.    DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE MAJEURE)
	  	 	18	  
		
	 1.         Causes of Delay:
	  	 	18	  
	 2.         Definition of Permissible Delay:
	  	 	19	  
	 3.         Notice of Delay:
	  	 	19	  

  

					
		  	ii	  	

					
	 4.         Right to Terminate Contract for Excessive Delay:
	  	 	19	  
		
	 ARTICLE IX.      WARRANTY OF QUALITY
	  	 	20	  
		
	 1.         Guarantee:
	  	 	20	  
	 2.         Notice of Defects:
	  	 	20	  
	 3.         Extent of Builder’s Responsibility:
	  	 	20	  
	 4.         Remedy of Defects:
	  	 	21	  
		
	 ARTICLE X.        REMEDIES OF BUYER
	  	 	22	  
		
	 1.         Notice:
	  	 	22	  
	 2.         Refund by Builder:
	  	 	22	  
	 3.         Discharge of Obligations:
	  	 	22	  
		
	 ARTICLE XI.      REMEDIES OF BUILDER
	  	 	22	  
		
	 1.         Definition of Default:
	  	 	22	  
	 2.         Interest and Charges:
	  	 	23	  
	 3.         Effect of Default:
	  	 	23	  
	 4.         Sale of Vessel:
	  	 	23	  
	 5.         Remedies Cumulative:
	  	 	24	  
		
	 ARTICLE XII.     INSURANCE
	  	 	25	  
		
	 1.         Extent of Insurance Coverage:
	  	 	25	  
	 2.         Application of Recovered Amount:
	  	 	25	  
	 3.         Redelivery of Buyer’s Supplies:
	  	 	26	  
	 4.         Termination of Builders Obligation to Insure:
	  	 	26	  
		
	 ARTICLE XIII.    DISPUTES AND ARBITRATION
	  	 	26	  
		
	 1.         Proceedings:
	  	 	26	  
	 2.         Alteration of Delivery of the Vessel:
	  	 	27	  
	 3.         Entry in Court:
	  	 	27	  
		
	 ARTICLE XIV.   RIGHT OF ASSIGNMENT
	  	 	27	  
		
	 ARTICLE XV.     TAXES AND DUTIES
	  	 	28	  
		
	 1.         Taxes and Duties in Korea:
	  	 	28	  
	 2.         Taxes and Duties outside Korea:
	  	 	28	  
		
	 ARTICLE XVI.   PATENTS, TRADEMARKS, COPYRIGHTS, ETC.
	  	 	28	  
		
	 1.         Patents, Trademarks and Copyrights:
	  	 	28	  
	 2.         Rights to General Plans, Specifications and Working Drawings:
	  	 	28	  
		
	 ARTICLE XVII.  COMPLIANCE AND ANTI-BRIBERY
	  	 	29	  
		
	 1.         Representations of the Parties:
	  	 	29	  
	 2.         Indemnification:
	  	 	29	  
		
	 ARTICLE XVIII. BUYER’S SUPPLIES
	  	 	30	  
		
	 1.         Responsibility of Buyer:
	  	 	30	  
	 2.         Responsibility of Builder:
	  	 	30	  
	 3.         Return of Buyer’s Supplies:
	  	 	31	  
		
	 ARTICLE XIX.   REPRESENTATIVES
	  	 	31	  
		
	 ARTICLE XX.    NOTICE AND LANGUAGE
	  	 	32	  
		
	 1.         Notice:
	  	 	32	  
	 2.         Language:
	  	 	32	  
	 3.         Writing:
	  	 	32	  
		
	 ARTICLE XXI.   EFFECTIVE DATE OF CONTRACT
	  	 	32	  
		
	 ARTICLE XXII.  INTERPRETATION
	  	 	32	  
		
	 1.         Laws Applicable:
	  	 	32	  
	 2.         Discrepancies:
	  	 	32	  
	 3.         Entire Agreement:
	  	 	32	  
	 4.         Amendment:
	  	 	33	  
	 5.         Headings:
	  	 	33	  
	 6.         Severability:
	  	 	33	  

  

					
		  	iii	  	

					
	 7.         Exclusion of the Contracts (Rights of Third Parties) Act 1999:
	  	 	33	  
		
	 EXHIBIT A.         REFUND GUARANTEE
	  	 	35	  
		
	 EXHIBIT B.         CORPORATE GUARANTEE
	  	 	37	  

  

					
		  	iv	  	

 SHIPBUILDING CONTRACT 

BY THIS CONTRACT made the     day of
                     by and between
                    , a corporation organized and existing under the laws of the Marshall Island having its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands 96960 (the “Buyer”), and DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD., a corporation organized and existing under the laws of the Republic of Korea, having
its principal office at 85, Da-dong, Jung-Gu, Seoul, Korea (the “Builder”). 
 IT IS AGREED AND DECLARED as follows: 

Builder agrees to design, build, launch, equip and complete one (1) 180,000 dwt Drybulk Carrier more fully described in the Specifications
(as defined below) (the “Vessel”) at the Builder’s shipyard located at Okpo, Korea (the “Shipyard”) and to sell and deliver the same to Buyer, and Buyer hereby agrees to purchase and take delivery of the Vessel from Builder,
on the terms and conditions herein set out. 
 ARTICLE I.
                DESCRIPTION AND CLASS 
  

	1.	 Description: 

The Vessel shall have Builder’s Hull No.              and shall be
designed, built, equipped, launched and completed in accordance with the provisions of this Contract, and the specifications (Ref.
N0.                     ) dated
                     and the General Arrangement Plan (Ref. No.
                    ) dated                     
(together the “Specifications”), signed by the parties for identification and incorporated into this Contract. 
  

	2.	 Dimensions and Characteristics: 

Details of the Vessel’s length, breadth, depth, draft, machinery and all other particulars as well as the definitions and methods of
measurement and calculation are as shown in the Specifications. 
  

	3.	 Classification, Rules and Regulations: 

The VESSEL, including its machinery, equipment and out-fittings shall be constructed in accordance with the rules (the edition and amendments
thereto being in force as of the date of this Contract) of and under special survey of                      (herein called the “Classification
Society”) and shall be distinguished in the register by the symbol of: 
 Classification Notation: 

Decisions of the Classification Society as to compliance or non-compliance with the classification rules and regulations shall be final and
binding upon both parties hereto. The VESSEL shall also comply with the rules, regulations and requirements of other regulatory bodies as described in the Specifications in effect as of the date of this Contract. All fees and charges incidental to
the classification and with respect to compliance with the above referred rules, regulations and requirements shall be for account of the SELLER. 

  

					
		  	1	  	

 Builder shall arrange with the Classification Society for the assignment by the Classification
Society of representative(s) to the Vessel during construction. All costs, fees, charges and arrangements incidental to classification of the Vessel in compliance with the rules, regulations and requirements of this Contract, shall be for the
account of Builder. Decisions of the Classification Society as to compliance or non-compliance of the Vessel with the said rules and regulations of the Classification Society shall be final and binding upon the parties. 

The Vessel shall also comply with the applicable rules, regulations and requirements of the other regulatory bodies referred to in the
Specifications as in force at the execution date of this Contract and/or which are published and ratified as of the date of signing the Contract. 
  

	4.	 Subcontracting of Construction Work: 

Builder may at its option and sole responsibility towards Buyer, subcontract whole or any portion of the construction work of the Vessel to any
properly qualified and experienced subcontractor. The Builder shall submit in advance of subcontracting list of intended subcontractors for the Buyer’s reference, however, any work that is carried out by workers at Builder’s yard even if
the relevant workers are not in employment with Builder and/or Builder’s majority owned and controlled affiliates including but not limited to Daewoo Shandong Co., Ltd. (DSSC), Shinhan Machinery Co., Ltd. (SMC) and/or Daehan Shipbuilding Co.,
Ltd. (DHSC) which is under the Builder’s consignment management shall not be regarded as subcontracted work and the Builder remains fully liable for the due and complete performance of any work undertaken by the Shipyard and/or carried out by
subcontractors. 
 It is agreed among the parties that the Vessel shall always remain at the Shipyard unless Buyer and Builder agrees
otherwise. 
 Without prejudice to the generality of the foregoing: 

 

	 	(i)	 Builder shall remain fully liable to the Buyer for the due and complete performance of any work (or part of it) undertaken by any subcontractor as
if undertaken by Builder; 

  

	 	(ii)	 All sub-contractors howsoever employed or engaged are hereby declared and agreed to be sub-contractors employed or engaged by Builder and Builder
agrees that it is and shall remain fully responsible for and liable in respect of any sub-contractors and/or their acts or omissions and, without prejudice to the generality of the foregoing, Builder shall ensure control over supervision and
scheduling of the all work done by sub-contractors; and 

  

	 	(iii)	 No sub-contract shall bind or purport to bind Buyer, and each sub-contract shall be the responsibility of Builder. 

Buyer may request Builder to replace any subcontractor whose level of workmanship has been demonstrated not to meet the requirements of the
Contract and the Specifications which request Builder shall not unreasonably refuse. Engine room, bow and stern blocks shall be fabricated at the Shipyard. 
  

	5.	 Registration: 

The Vessel shall be registered by Buyer at its own cost and expense under the laws of the Marshall Islands at the port of Majuro at the time of
delivery. 

  

					
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 ARTICLE II.
                CONTRACT PRICE AND TERMS OF PAYMENT 
  

	1.	 Contract Price: 

The Contract Price of the Vessel is United States Dollars
                    (the “Contract Price”), net receivable by Builder, which is exclusive of Buyer’s Supplies. The Contract Price
shall be subject to upward or downward adjustment, if any, as set out in this Contract. Any such adjustment shall be determined prior to delivery of the Vessel. 
  

	2.	 Currency: 

All payments required to be made by either party under this Contract shall be made in United States Dollars. 

 

	3.	 Terms of Payment: 

The Contract Price shall be paid by Buyer to Builder in instalments (“Instalment(s)”) as follows: (A “banking day” referred
to in this Contract means a day on which commercial banks are open for domestic and foreign exchange business in New York, Seoul, the Netherlands and Monaco.) 
  

	(a)	 First Instalment: 

Five percent (5%) of the Contract Price, amounting to United States Dollars
                    , shall be paid within five (5) banking days from the date of receipt by Buyer of a notice from Builder confirming that the
Refund Guarantee (as defined in Article X.2) for the Vessel has been issued. The confirmation shall be accompanied by a copy of the Refund Guarantee. 
  

	(b)	 Second Instalment: 

Five percent (5%) of the Contract Price, amounting to United States Dollars
                    , shall be paid on or before ninety days after the execution date of this Contract. 

 

	(c)	 Third Instalment: 

Ten percent (10%) of the Contract Price, amounting to United States Dollars
                    , shall be paid on or before one hundred and eighty days after the execution date of this Contract. 

 

	(d)	 Fourth Instalment: 

Ten percent (10%) of the Contract Price, amounting to United States Dollars
                    , shall be paid within five (5) banking days from the date of receipt by Buyer of a notice from Builder together with a
certificate issued by the Classification Society confirming that the steel cutting for the Vessel has commenced, it being understood that in no eventuality shall this installment become due more than thirteen (13) months prior to the Delivery
Date in Article VII. herein 
  

	(e)	 Fifth Instalment: 

  

					
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 Ten percent (10%) of the Contract Price, amounting to United States Dollars
                    , shall be paid within five (5) banking days from the date of receipt by Buyer of a notice from Builder together with a
certificate issued by the Classification Society confirming that keel laying for the first block of the Vessel has been completed, it being understood that in no eventuality shall this instalment become due more than nine (9) months prior to
the Delivery Date in Article VII. herein. 
  

	(f)	 Sixth Instalment: 

Sixty percent (60%) of the Contract Price, amounting to United States Dollars
                    , plus other sums due to Builder under this Contract and any increase or minus any decrease due to adjustments, if any, to the
Contract Price shall be paid upon delivery of the Vessel. 
  

	4.	 Method of Payment: 

  

	(a)	 Instalments Payable before Delivery: 

At least fourteen (14) days prior to the date of each event provided in Paragraph 3 of this Article on which any payment
shall fall due hereunder, with the exception of the payment of the first instalment, the Builder shall notify the Buyer by facsimile or e-mail of the date such payment shall become due. 

After receipt of a notice from Builder, but in any event on or before the due date of the respective instalment, Buyer shall,
at its own cost and expense, remit each of the respective Instalments payable before delivery of the Vessel as provided in Article II.3 by telegraphic transfer to the Builder’s Account
No.                     with
                    or to the account of a first class Bank (“Builder’s Bank”) in favour of Daewoo Shipbuilding & Marine
Engineering Ltd., as indicated by Builder at the same time as the relevant notice is given, under advice by authenticated SWIFT message to HB or Builder’s Bank by the remitting bank. 

 

	(b)	 Instalment Payable on Delivery: 

Upon receipt of a notice from Builder, Buyer shall, at its own cost and expense, deposit the Fifth Instalment payable upon
delivery of the Vessel (as provided in Article II.3(e)) by telegraphic transfer to the account of the HB with JPMorgan Chase Bank or to the account of the Builder’s Bank, under advice by authenticated SWIFT message to HB or the Builder’s
Bank by the remitting bank, at least two (2) banking days prior to the scheduled delivery date of the Vessel, with irrevocable instruction that the said deposit shall be released to Builder against presentation by Builder to HB or
Builder’s Bank of a duplicate original copy of the Protocol of Delivery and Acceptance of the Vessel signed by Builder and Buyer. 

If the Protocol of Delivery and Acceptance of the Vessel shall not have been signed within ten (10) days of the deposit of
the Fifth Instalment it, together with accrued interest (if any), shall be returned to Buyer unless otherwise agreed. However when the newly scheduled 

  

					
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delivery date is notified to the Buyer by the Builder, the Buyer shall make the cash deposit in accordance with the same terms and conditions as set out above. 

 

	(c)	 Prompt payment: 

No payment due and payable to Builder under this Contract shall be delayed or withheld by Buyer on account of any dispute or
disagreement of whatsoever nature arising between the parties hereto or by the reason of reference of the said dispute or disagreement to arbitration provided for in Article XIII and shall not be subject to any set-off or deduction. 

Time shall be of the essence of this Contract in respect of payment of any of the Instalments and/or interest thereon. 

 

	5.	 Corporate Guarantee: 

Upon execution of this Contract, Buyer shall furnish to Builder an irrevocable and unconditional corporate guarantee (the “Corporate
Guarantee”) duly executed and issued by                     (the “Corporate Guarantor”), covering and guaranteeing the due performance
of Buyer’s obligations under this Contract including, but not limited to, the payment of the Contract Price and taking delivery of the Vessel in accordance with the provisions of this Contract and substantially in the form annexed hereto as
Exhibit “B”. The Corporate Guarantor shall on demand furnish to Builder evidence satisfactory to Builder of its power and authority to enter into the Corporate Guarantee and as to the execution thereof by its duly authorised
representative. The Corporate Guarantee shall continue in full force and effect until the full performance of all of Buyer’s obligations under this Contract. 

ARTICLE III.                 ADJUSTMENT OF CONTRACT PRICE 

The Contract Price shall be subject to adjustment as hereinafter set out in the following circumstances. Any reduction of the Contract Price
pursuant to this Article is by way of liquidated damages and not by way of penalty: 
  

	1.	 Delivery: 

  

	(a)	 No adjustment shall be made and the Contract Price shall remain unchanged for the first thirty (30) days of delay in delivery of the Vessel
beyond the Delivery Date (ending as of twelve o’clock midnight, Korean time of the thirtieth day of delay). 

  

	(b)	 If the delivery of the Vessel, for causes for which Builder is liable, is delayed more than thirty (30) days after the Delivery Date, then, in
such event, beginning at twelve o’clock midnight of the thirty-first (31st) day after the Delivery Date, the Contract Price shall be reduced by deducting therefrom as follows:

 31st - 210th day US Dollars
                    per day 

However, the total reduction in the Contract Price shall not exceed the amount due to cover a delay of one hundred eighty
(180) days counting from midnight of the thirtieth 

  

					
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(30th) day after the Delivery Date at the above specified rate of reduction. 
  

	(c)	 If such delay in delivery of the Vessel continues, due to Builder’s default, for a period of one hundred eighty (180) days or more from
the thirty-first (31st) day after the Delivery Date, in such event, and after such period has expired, Buyer may, at its option, terminate this Contract in accordance with the provisions of Article X, or accept the Vessel with a total reduction
in the Contract Price of United States Dollars                     . 

Builder may, at any time after the expiration of the aforementioned two hundred and ten (210) days of delay in delivery,
if Buyer has not served notice of termination as provided in Article X, notify Buyer of the expected future date for delivery and demand in writing that Buyer shall make an election, in which case Buyer shall, within ten (10) days after such
demand is delivered to Buyer, notify Builder of its termination of this Contract or acceptance of the revised future date for delivery. If the Vessel is not delivered by such revised future date for delivery, Buyer shall have the same right of
termination upon the same terms and conditions as hereinabove provided. If Buyer fails to notify Builder of its termination of this Contract as specified above within such ten (10) days period, Buyer shall be deemed to have consented to the
delivery of the Vessel at the future date for delivery proposed by Builder. 
  

	(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 of
all postponements of the Delivery Date by reason of permissible delays as defined in this Contract, is not delivered by the date upon which the delivery is required under the terms of this Contract. 

 

	2.	 Speed: 

  

	(a)	 The Contract Price shall not be affected or changed by reason of a deficiency in the actual speed of the Vessel, as determined on the basis of trial
run, being less than three-tenths (3/10) of one (1) knot below the guaranteed speed of the Vessel at the designed draft in the conditions as set out in the Specifications. 

 

	(b)	 If the deficiency in actual speed of the Vessel amounts to or exceeds three-tenths (3/10) of one (1) knot below the guaranteed speed of
the Vessel at the design draft, any fractions less than one-tenth (1/10) of one (1) knot of deficiency shall be regarded as a full one-tenth (1/10) of a knot, the Contract Price shall be reduced as follows: 

 

					
	 Deficiency in Actual Speed
	  	 Total Reduction
	  	
			
	 Three-tenths     of a knot
	  	 USD                         
	  	
	 Four-tenths       of a knot
	  	 USD                         
	  	
	 Five-tenths       of a knot
	  	 USD                         
	  	
	 Six-tenths         of a knot
	  	 USD                         
	  	
	 Seven-tenths    of a knot
	  	 USD                         
	  	
	 Eight-tenths      of a knot
	  	 USD                         
	  	

 The above amounts are not cumulative. 

 

	(c)	 If the deficiency in actual speed of the Vessel as determined during the trial run is more than nine-tenth (9/10) of one (1) full knot
below the guaranteed speed of the Vessel at the 

  

					
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designed draft, Buyer may, at its option, reject the Vessel in accordance with Article VI.4 and terminate this Contract in accordance with the provisions of Article X, or accept the Vessel with a
total reduction in the Contract Price of United States Dollars                     . 

 

	3.	 Fuel Consumption: 

  

	(a)	 The Contract Price shall not be affected or changed by reason of the actual specific fuel consumption of the Vessel’s main engine, as
determined by a shop trial of the engine manufacturer according to the Specifications, exceeding the guaranteed specific fuel consumption of the Vessel’s main engine, if such excess is not more than five percent (5%) of the guaranteed
specific fuel consumption in the conditions as set out in the Specifications. 

  

	(b)	 If the actual specific fuel consumption exceeds five percent (5%) over the guaranteed specific fuel consumption of the Vessel’s main
engine, the Contract Price shall be reduced by the sum of United States Dollars                     for each full one percent (1%) increase in
specific fuel consumption above said five percent (5%), fractions of less than 1% shall be regarded as a full one percent (1%), up to a maximum of nine percent (9%) above the guaranteed specific fuel consumption of the Vessel’s main
engine. 

  

	(c)	 If the actual specific fuel consumption exceeds nine percent (9%) above the guaranteed specific fuel consumption of the Vessel’s main
engine, Buyer may, at its option and subject to the Builder’s right to effect alterations or corrections as specified in ARTICLE V of the Contract, reject the Vessel in accordance with Article VI.4 and terminate this Contract in accordance with
the provisions of Article X, or accept the Vessel with a total reduction in the Contract Price of United States Dollars                     .

  

	4.	 Deadweight: 

  

	(a)	 The Contract Price shall not be affected or changed by reason of a deficiency in the actual deadweight of the Vessel, being not more than five
hundred fifty (550) metric tons below the guaranteed deadweight at the design draft in the conditions as set out in the Specifications. 

  

	(b)	 If the deficiency in the actual deadweight of the Vessel exceeds five hundred fifty (550) metric tons below the guaranteed deadweight at the
design draft, the Contract Price shall be reduced by the sum of United States Dollars                     for each full metric ton of such deficiency
in excess of one thousand five hundred fifty (550) metric tons (but disregarding fractions of a ton) up to a maximum deficiency of one thousand five hundred (1,500) metric tons. 

 

	(c)	 If the deficiency in the actual deadweight of Vessel is more than one thousand five hundred (1,500) metric tons below the guaranteed deadweight
at the design draft, then, Buyer may, at its option, reject the Vessel in accordance with Article VI.4 and terminate this Contract in accordance with the provisions of Article X, or accept the Vessel with a total reduction in the Contract Price of
United States Dollars                     . 

  

					
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	5.	 Conclusive Pecuniary Compensation: 

The liquidated damages hereunder shall be the conclusive pecuniary compensation recoverable in connection with each particular event stated
herein and Builder shall not be liable for any additional compensation claimed by Buyer in relation to such particular event and its consequential events. 
  

	6.	 Effect of Termination: 

If Buyer terminates this Contract for any reason whatsoever, Buyer shall not be entitled to any liquidated damages but shall be entitled to the
refund of the purchase price as per Art X.2. 
 ARTICLE IV.
                APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING CONSTRUCTION 
  

	1.	 Approval of Plans and Drawings: 

  

	(a)	 Builder shall submit to Buyer three (3) copies of each of the plans and drawings, the list of which shall be mutually agreed upon between the
parties hereto, for its approval. Buyer shall, within fourteen (14) days after receipt thereof, return to Builder one (1) copy of such plans and drawings with Buyer’s approval or comments (if any) written thereon.

  

	(b)	 If the Representative (as hereinafter defined) shall have been sent by Buyer to the Shipyard as set out in Article IV.2, Builder may submit any
remaining plans and drawings to the Representative for his approval. The Representative shall, within seven (7) days after receipt thereof, return to Builder one (1) copy of such plans and drawings with his approval or comments (if any)
written thereon. Approval by the Representative of the plans and drawings duly submitted to him shall be deemed to be approval by Buyer for all 

  

					
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purposes of this Contract. 

  

	(c)	 If the above comments made by Buyer are not clearly specified or detailed, Builder shall seek clarification and the Buyer shall have further seven
(7) days to reply with such clarifications. In the absence of clarifications from the Buyer within said time, the Builder may place its own interpretation on such comments in implementing the same. In the event the plans and drawings submitted
by the Builder to the Buyer or the Representative in accordance with this Article do not meet with the Buyer’s or the Representative’s approval, the matter may be submitted by either party hereto for determination pursuant to Article XIII
hereof. 

  

	(d)	 If Buyer or the Representative shall fail to return the plans and drawings to Builder within the time limit as above provided, such plans and
drawings shall be deemed to have been approved or confirmed without any comment. 

  

	2.	 Appointment of Buyer’s Representative: 

Buyer shall in due time despatch to and maintain at the Shipyard, at Buyer’s own cost and expense, one or more representative(s) (the
“Representative” or the “Representatives”) who shall be duly authorized in writing by Buyer to act on behalf of Buyer in connection with modifications of the Specifications, adjustment of the Contract Price and the Delivery Date,
confirmation of the Production Schedule, approval of the plans and drawings, to supervise adequately the construction by the Builder of the Vessel, attendance to the tests and inspections relating to the Vessel, its machinery, equipment and outfit
and any other matters for which he is authorized by Buyer. 
  

	3.	 Inspection: 

The necessary tests and inspections of the Vessel, her machinery, equipment and outfit either as required by the Classification Society or by
other applicable regulatory bodies or as agreed by the parties hereto, shall be carried out by the Classification Society, other regulatory bodies and/or an inspection team of 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. During construction of the Vessel the Representative shall have the right to attend such tests and inspections of the Vessel, her
machinery and equipment as mutually agreed between Buyer and Builder. 
 Builder shall give a reasonable advance notice to the Representative
of the date and place of such tests, trials and inspections which may be attended by him. Failure by the Representative to be present at such tests, trials and inspections after due notice to him as aforesaid shall be deemed to be a waiver of the
Representative’s right to be present if such absence could not be avoided by the exercise of the Buyer’s Representative’s due diligence due to an incident of force majeure nature and/or unless the Buyer’s Representative gives
seven (7) days advance notice of such absence. In the event that Builder needs an inspection for coating work to be made during non-working hours for smooth progress of work, the Representative shall exercise his best endeavour to attend such
inspection provided that Builder has given a reasonable advance notice to the Representative 
 At all times when work is being done at the
Shipyard until delivery of the Vessel, the Representative shall, subject to the reasonable requirements of the Shipyard’s work program and safety control, be permitted free and ready access to the Vessel, her machinery and equipment, and to any
other place where work on the Vessel is being done, or materials are being processed or stored in connection with the construction of the Vessel, including the yards, workshops, stores 

  

					
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and offices of Builder, and the premises of subcontractors of Builder, who are doing work or storing materials in connection with the Vessel’s construction. 

If the Representative discovers any construction, material or workmanship which he considered not to conform to the requirements of this
Contract and/or the Specifications, the Representative shall promptly give Builder a notice in writing specifying the alleged non-conformity. Upon receipt of such notice from the Representative, Builder shall correct such non-conformity, if Builder
agrees to his view. Any disagreement shall be resolved in accordance with Article XIII.1. 
 If the Classification Society or an arbitrator
enters a determination in favour of Buyer, then in such case Builder shall correct such non-conformity, or if such corrections cannot be made in time to meet the construction schedule for the Vessel, Builder shall make fair and reasonable adjustment
of the Contract Price in lieu of such corrections subject to the prior written agreement of the parties. If the Classification Society or the arbitrator enters a determination in favour of Builder, then the time for delivery of the Vessel shall be
extended for the period of delay in construction, if any, occasioned by such proceedings, and Buyer shall compensate Builder for the proven direct loss and damages incurred by Builder as a result of the dispute herein referred to. 

 

	4.	 Facilities: 

Builder shall furnish the Representatives with adequate office space equipped with desks, chairs, tables, filing cabinets, book shelves,
internal and external telephone extensions, international line for telefax machine and a set of personal computer, internet access, and printer at, or in the immediate vicinity of the Shipyard and shall make available the use of such other
reasonable facilities as may be necessary to enable them to carry out their duties effectively, according to Builder’s practice. However, Buyer shall pay telephone and telefax charges, and shall reimburse costs and expenses for installation of
telefax or external telephone lines and facilities and office equipment and furniture, if any, provided additionally. 
 The Builder shall
provide the Buyer with any assistance that the Buyer may require in obtaining work permits, visas, resident permits and other necessary documents for the Representative and their staff. 

As far as practical, the Builder shall endeavour not to arrange for inspection of the same type of subcontracting work in two different places
on the same day — including at the Shipyard premises — the distance between which cannot be covered by one man in one day. 
  

	5.	 Liability of Builder: 

The Representative(s) shall at all times be deemed to be the employee(s) of Buyer and not of Builder. 

Builder shall be under no liability whatsoever to Buyer, or the Representative(s) for personal injuries or death, whether or not suffered
during the time when he or they are on the Vessel, or within the premises of either Builder or its subcontractors, or are otherwise engaged in and about the construction of the Vessel, unless such personal injuries or death are caused by gross
negligence of Builder. Without prejudice to the foregoing, in the event that such injury or death is caused by the fault (other than gross negligence) of Builder, its employees, agents or subcontractors, Buyer shall assume the liability (if any)
which Builder, its employees, agents and/or subcontractors may otherwise have had in respect of or for the relevant injury or death (as the case may be). 

  

					
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 Buyer shall keep Builder, its employees, agents and subcontractors indemnified and harmless from
and against all and any proceedings, costs, claims, expenses and liabilities whatsoever brought, caused or incurred by or in respect of personal injuries or death suffered as aforesaid by Buyer or the Representative(s), provided that Buyer shall
have no obligation to keep Builder indemnified and harmless as prescribed above in respect of any such injuries or death caused by the gross negligence of Builder or any of its employees, agents or subcontractors. 

 

	6.	 Responsibility of Buyer: 

Buyer shall advise Builder in advance of the names, experiences and scope of authority of the Representative(s) and of any other information
pertaining to their qualifications. If Builder shall have reasonable cause to disapprove of any of the Representative(s), it shall so advise Buyer and Buyer shall take proper action. 

Buyer shall undertake and assure that Buyer’s Representative(s) shall carry out their duties hereunder in accordance with good shipbuilding
practice and in such a way as to avoid any unnecessary increase in building cost or delay in the production schedules of Builder. The Representative(s) shall abide by the work rules and regulations prevailing at the premises of Builder and its
subcontractors. 
 Builder has the right to request Buyer to replace any Representative(s) if deemed unsuitable and unsatisfactory for the
proper progress of the Vessel’s construction. If Buyer considers that such Builder’s request is justified, Buyer shall effect such replacement as soon as conveniently arrangeable. 

ARTICLE V.                 MODIFICATIONS 

 

	1.	 Modification of Specifications: 

The Specifications may be modified to a minor extent by written agreement of the parties hereto, provided that such modifications will not, in
Builder’s reasonable judgement, adversely affect Builder’s planning or program in relation to Builder’s other commitments, and provided, further, that Buyer shall first agree, before such modifications and/or changes are carried out,
to alterations in the Contract Price, the Delivery Date, deadweight, speed and other terms and conditions of this Contract and Specifications occasioned by or resulting from such modifications and/or changes within seven (7) days from the
receipt by Buyer of Builder’s proposal. Builder has the right to continue construction of the Vessel on the basis of the Specifications until agreement as above has been reached. 

An agreement to modify this Contract or the Specifications shall be effected by an exchange of letters signed by the authorized representatives
of the parties or by an addendum to this Contract and/or the Specifications. 
 Builder may also make minor changes to the Specifications
including, but not limited to, the dimensions and characteristics of the Vessel, if found necessary to suit the Shipyard’s local conditions and facilities, the availability of materials and equipment, introduction of improved methods or
otherwise, provided that Builder shall first agree with the Buyer reasonable alterations of the Contract Price, the Delivery Date and obtain Buyer’s approval, which shall not be 

  

					
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unreasonably withheld or delayed. In the event that Buyer intends not to give such approval, Buyer shall submit the reasons for such rejection to Builder promptly (in any event within seven
(7) days of receiving Builder’s request for such approval), failing which Buyer shall be deemed to have given such approval. 
  

	2.	 Change in Class, etc.: 

If after the date of this Contract, any requirements of the Classification Society, or of other rules and regulations specified in Article I.3
(or the interpretation thereof by the relevant body), to which the construction of the Vessel is required to conform, are changed by the Classification Society or other regulatory bodies authorized to make such changes, the following provisions
shall apply unless a waiver of the changed requirement, rule, regulation or interpretation is obtained pursuant to Buyer’s request: 
  

	(a)	 If the changes are compulsory for the Vessel, any of the parties hereto, upon receipt of information from the Classification Society or such other
regulatory bodies, shall promptly transmit the same to the other in writing, and Builder shall thereupon incorporate such changes into the construction of the Vessel, provided that Buyer shall first have agreed to adjustments required by Builder in
the Contract Price, the Delivery Date, deadweight, speed and other terms and conditions of this Contract and the Specifications occasioned by or resulting from such changes within seven days from the receipt by Buyer of Builder’s proposal.
Builder has the right to continue construction of the Vessel on the basis of the unmodified Specifications unless and until such agreement has been reached between the parties in writing. 

 

	(b)	 if the changes are not compulsory for the Vessel, but Buyer desires to incorporate any of them into the construction of the Vessel, Buyer shall
notify Builder of that intention. Builder may accept such changes, provided that such changes will not in its reasonable judgement adversely affect Builder’s planning or program in relation to Builder’s other commitments, and provided,
further, that Buyer shall first have agreed to adjustments required by Builder in the Contract Price, the Delivery Date, deadweight, speed, cubic capacity and other terms and conditions of this Contract and the Specifications occasioned by or
resulting from such changes within seven (7) days from the receipt by Buyer of Builder’s proposal. 

 Agreements
as to any changes under this Article V.2 shall be made in the same manner as provided in Article V.1 for modifications or changes to the Specifications. 

Any delay in the construction of the Vessel caused by Buyer’s delay in making a decision or agreement as above shall constitute a
permissible delay under this Contract. 
  

	3.	 Substitution of Materials: 

If any of the materials or equipment required by the Specifications or otherwise under this Contract for the construction of the Vessel are in
short supply or cannot be procured in time to maintain the Delivery Date of the Vessel or are unreasonably high in price as compared with prevailing international market rates, Builder may, provided that Buyer shall so agree in writing (which
agreement shall not be unreasonably withheld), supply other materials capable of meeting the requirements of the Classification Society and of the rules, regulations and requirements with which the construction of the Vessel must comply. Any
agreement as to substitution of materials shall be effected in the manner as provided in Article V.1. The Builder shall not be entitled to claim 

  

					
		  	12	  	

 
any extra cost if it elects to use or install substitute materials. 
 ARTICLE VI.
                TRIALS 
  

	1.	 Notices: 

Builder shall notify Buyer tentatively at least fourteen (14) days in advance of the expected time and place of the trial run of the
Vessel, and Buyer shall promptly acknowledge receipt of such notice. Such date shall be confirmed by Builder at least five (5) days in advance. However, if the trial run of the Vessel is postponed or delayed due to unreadiness of the Vessel for
the trial run then a fresh notice under this Article V1.1 shall be required. If the trial run of the Vessel is postponed or delayed due to unfavourable weather conditions then no fresh notice under this Article V1.1 shall be required and the trial
shall take place on the first available day thereafter that weather conditions permit. 
 Buyer shall have the Representative(s) and such
other persons as Buyer may require in writing on board the Vessel to witness the trial run. Failure by the Representative(s) to attend the trial run of the Vessel for any reason whatsoever after due notice to Buyer as above provided shall be deemed
to be a waiver by Buyer of its right to have the Representative(s) on board the Vessel at the trial run, and Builder may conduct the trial run without the Representative(s) being present, provided that a representative of the Classification Society
shall be on board the Vessel for such trial run. In such case Buyer shall be obliged to accept the Vessel on the basis of a certificate of Builder, confirmed by the Classification Society, if applicable, that the Vessel, on the trial run, is found
to conform to this Contract and the Specifications. In any event Builder shall promptly supply to Buyer a copy of all records of tests and trials carried out with regard to the Vessel, her machinery and equipment. 

 

	2.	 Weather Conditions: 

The trial run shall be carried out under weather conditions which are deemed favourable enough in the reasonable judgement of Builder in
accordance with the Specifications. 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 weather conditions permit. 

It is agreed that if during the trial run the weather should suddenly become so unfavourable that the satisfactory conduct of the trial run can
no longer be continued, the trial run shall be discontinued and postponed until the next following favourable day, unless Buyer shall assent in writing to a request from Builder to accept the Vessel on the basis of the trial run already made before
such discontinuance occurred. 
 Any reasonable delay in the trial run caused by unfavourable weather conditions shall be deemed a
permissible delay in the delivery of the Vessel and shall operate to postpone the Delivery Date by the period of delay involved. 
  

	3.	 How Conducted: 

  

	(a)	 All expenses in connection with the trial run are for the account of Builder, and Builder shall provide at its own expense the necessary crew to
comply with the requirements of safe navigation. The trial run shall be conducted in the manner prescribed in the 

  

					
		  	13	  	

	 	 
Specifications, and shall prove fulfilment of the performance requirements for the trial run as set forth in the Specifications. The course of the trial run shall be determined by Builder.
Builder shall have the right to conduct preliminary trials and to repeat any trial whatsoever as it deems necessary. 

  

	(b)	 Notwithstanding Article Vl.3(a), lubricating oils and greases necessary for the trial run shall be supplied by Buyer at the Shipyard prior to the
time advised by Builder for the conduct of tests and trials as stated in the Specifications, and Builder shall pay Buyer upon delivery of the Vessel the cost of the quantities of lubricating oils and greases consumed during the trial run at their
original purchase prices. In measuring such consumed quantities, lubricating oils and greases remaining in the main engine, sump-tanks, other machinery and in pipes, stern tube and the like on the delivery of the Vessel, shall be excluded.

 The quantities of lubricating oils and greases to be supplied by Buyer as aforesaid shall be in
accordance with the instructions of Builder. The fuel oil as well as lubricating oils and greases shall be in accordance with the engine specifications and Buyer shall advise Builder of the suppliers’ names for lubricating oils and greases in
due time, provided always that such suppliers shall be acceptable to Builder and/or the makers of all the machinery. 
  

	4.	 Method of Acceptance or Rejection: 

  

	(a)	 If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be
continued after repairs and be valid in all respects. If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such
interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably
possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. 

 

	(b)	 As soon as practicable after satisfactory completion of the trial run, Builder shall give Buyer a written report thereon and written notice that
Builder considers that the results of the trial run indicate conformity of the Vessel to this Contract and the Specifications. Buyer shall, within three (3) Business Days after receipt of such notice from Builder, notify Builder of its
acceptance or rejection of the Vessel on the basis of its conformity or non-conformity with the requirements of this Contract and the Specifications. 

  

	(c)	 If the results of the trial run indicate that the Vessel, or any part or equipment thereof, does not conform to the requirements of this Contract
and/or the Specifications, then, Builder shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer notice thereof. Buyer shall, within three (3) days after
receipt of such notice from Builder notify Builder of its acceptance or rejection of the Vessel. However, Buyer shall not be entitled to reject the Vessel by reason of any minor or insubstantial defect or non-conformity judged from the viewpoint of
standard shipbuilding practice but in such case, the Builder shall not be released from its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during the Warranty Period. 

  

					
		  	14	  	

	(d)	 If Buyer considers that the results of the trial run indicate that the Vessel or any part or equipment thereof does not conform to this Contract
and/or the Specifications, Buyer shall indicate in detail in a notice of rejection in what respect the Vessel or any part or equipment thereof, does not in its opinion conform to this Contract and/or the Specifications. 

 

	(e)	 If Buyer fails to notify Builder in writing or telefax confirmed in writing of the acceptance or rejection of the Vessel together with the reason
therefor within the period as provided in Article VI.4 (b) or (c), Buyer shall be deemed to have accepted the Vessel. 

  

	(f)	 Builder may dispute the rejection of the Vessel by Buyer under this Article VI.4, in which case the matter shall be submitted for final decision by
arbitration in accordance with Article XIII. 

  

	(g)	 If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its
own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s
crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice. 

  

	5.	 Effect of Acceptance: 

Acceptance of the Vessel as above provided shall be final and binding so far as the conformity of the Vessel to this Contract and the
Specifications is concerned, and shall preclude Buyer from refusing formal delivery of the Vessel as hereinafter provided, if Builder complies with all procedural requirements for delivery of the Vessel as provided in Article VII. 

 

	6.	 Disposition of Surplus Consumable Stores: 

Should any fuel oil, fresh water or consumable stores furnished by Builder for the trial run remain on board the Vessel at the time of delivery
thereof to Buyer, Buyer agrees to buy the same from Builder at the original purchase prices thereof, and payment by Buyer shall be made upon delivery of the Vessel. 

  

					
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 ARTICLE VII.
                DELIVERY DATE AND DELIVERY 
  

	1.	 Time and Place: 

  

	(a)	 Delivery Date and Place: 

The Vessel shall be delivered safely afloat at either a berth at the Shipyard or (where such berth is unsafe or unavailable) at
a suitable place at or near the Shipyard by Builder to Buyer on or before                      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”. 

With sixty (60) days prior written notice to Buyer of its intention to deliver the Vessel early, Builder shall be entitled
to deliver the Vessel to Buyer up to sixty (60) days earlier than the Delivery Date, provided that the Buyer consents to such earlier Delivery Date, with such consent not to be unreasonably withheld or delayed. 

 

	2.	 When and How Effected: 

Provided that Buyer shall have fulfilled all of its obligations under this Contract (including, but not limited to, full payment of the
Contract Price and settlement of any indebtedness to Builder), delivery of the Vessel shall be duly made hereunder by Builder, and such delivery shall be evidenced by a Protocol of Delivery and Acceptance signed by the parties hereto, acknowledging
delivery of the Vessel by Builder and acceptance thereof by Buyer. 
  

	3.	 Documents to be Delivered to Buyer: 

Upon delivery and acceptance of the Vessel, Builder shall deliver to Buyer the following documents which shall accompany the Protocol of
Delivery and Acceptance: 
  

	(a)	 Protocol of Trials of the Vessel made pursuant to the Specifications. 

 

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

  

	(c)	 Protocol of Stores of Consumable Nature referred to under Article VI.3(b), including the original purchase price thereof. 

 

	(d)	 Certificates including Builder’s Certificate required to be furnished upon delivery of the Vessel pursuant to this Contract and the
Specifications, including: 

  
 16 

	 	(1)	 Classification Certificate for Hull and Machinery 

	 	(2)	 Cargo Ship Safety Construction Certificate 

	 	(3)	 Cargo Ship Safety Equipment Certificate 

	 	(4)	 Cargo Ship Safety Radio Certificate 

	 	(5)	 International Load Line Certificate 

	 	(6)	 International Tonnage Certificate 

	 	(7)	 Suez Canal Tonnage Certificate 

	 	(8)	 Panama Canal Tonnage Certificate 

	 	 	 (The Builder shall provide the documents and drawings for the vessel’s canal transit in accordance with the Panama Canal Universal Measurement
System (PC/UMS) instead of tonnage certificate, as required by the Panama Canal Authority) 

	 	(9)	 Deadweight Certificate 

	 	(10)	 Builder’s Certificate 

	 	(11)	 Ship Sanitation Control Exemption Certificate 

	 	(12)	 Certificates for Anchors, Chains, Machinery and Equipment 

	 	(13)	 Certificate for mooring ropes 

	 	(14)	 Certificate for Lifeboat and Life Saving Equipment 

	 	(15)	 Certificate of mooring ropes 

	 	(16)	 Certificate for Navigation Lights and Special Signal Lights 

	 	(17)	 International Oil Pollution Prevention Certificate 

	 	(18)	 International Sewage Pollution Prevention Certificate 

	 	(19)	 International Air Pollution Prevention Certificate 

	 	(20)	 Certificate of Compass Adjustment 

	 	(21)	 Certificate for Provision Crane, Hose Handling Crane, and Engine Room Crane 

	 	(22)	 Certificate for international convention on the control of Harmful Anti-fouling Systems on Ships 

	 	(23)	 Crew Accommodation certificate 

	 	(24)	 Non Registration Certificate 

	 	(25)	 Certificate of Keel To Mast Head (KTMH) 

Any other certificate required by the CLASSIFICATION SOCIETY and/or other relevant regulatory bodies as specified in the
SPECIFICATION and/or the PLANS. It is agreed that if, through no fault on the part of 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 Buyer, provided that Builder shall furnish to Buyer the formal certificates as promptly as possible after such formal certificates have been issued. 
  

	(e)	 Declaration of Warranty of Builder that the Vessel is delivered to Buyer free and clear of any liens, debt, charges, claims, mortgages, or other
encumbrances and in particular, that the Vessel is absolutely free of all burdens in the nature of imposts, taxes or charges imposed by the Korean governmental authorities, as well as of all liabilities of Builder to its subcontractors, employees
and crew, and of all liabilities arising from the operation of the Vessel in trial runs, or otherwise, prior to delivery except as otherwise provided under this Contract. 

 

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

 

	(g)	 Commercial Invoice 

  

	(h)	 Bill of Sale notarised by Builder and legalised by Builder 

  
 17 

	(i)	 any other documents reasonably required by Buyer. 

The Buyer may require the Builder by giving reasonable notice, prior to delivery, to arrange for any documents listed above to be duly
notarized, where practically possible. 
  

	4.	 Tender of Vessel: 

If Buyer fails to take delivery of the Vessel after completion thereof according to this Contract and the Specifications, Builder shall have
the right to tender the delivery of the Vessel to Buyer. Such tender shall be made by Builder by a notice to Buyer stating that the Vessel is tendered for delivery pursuant to Article VII.4 of the Contract. 

 

	5.	 Title and Risk: 

Subject to Article VII.4 of the Contract, the title to and risk of the Vessel shall pass to Buyer only upon delivery and acceptance thereof
having been completed as stated above, and the title to and risk of the Vessel and her equipment shall remain with Builder until such delivery is effected. 
  

	6.	 Removal of Vessel: 

Buyer shall take possession of the Vessel immediately upon delivery and acceptance thereof and shall remove the Vessel from the premises of the
Shipyard within three (3) days after delivery and acceptance thereof is effected. If Buyer shall not remove the Vessel from the premises of the Shipyard within the aforesaid three (3) days. then, in such event Buyer shall pay to Builder
reasonable mooring charges for the Vessel. 
 ARTICLE VIII.
                DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE MAJEURE) 
  

	1.	 Causes of Delay: 

If at any time before the delivery of the Vessel, either the construction of the Vessel or any performance required hereunder is delayed due to
Acts of God; acts of princes or rulers; requirements of government authorities; war or other hostilities or preparations therefor; blockade, revolution, insurrections, mobilization, civil war, civil commotion or riots; vandalism; sabotage; strikes,
lockouts or other labour disturbances outside of the control of the Builder; plague or other epidemics; quarantines; flood, typhoons, hurricanes, storms or other abnormal weather conditions not included in normal planning; earthquakes; tidal waves;
landslides; fires, lightning, explosions, collisions or strandings; embargoes; import restrictions; shortage of materials or equipment, or delay in delivery or inability to take delivery thereof (provided that such materials and equipment at the
time of ordering could reasonably be expected by Builder to be delivered in time); prolonged failure, shortage or restriction of electric current, oil or gas supplies; defects in materials, machinery or equipment which could not have been detected
by Builder using reasonable care (provided same did not result from Builder’s failure to take the reasonable and necessary measures to avoid any such delay); delays caused by the Classification Society or other bodies whose documents are
required; destruction of or damage to the Shipyard or works of Builder, suppliers, or of or to the Vessel or any part thereof, by any causes herein described; delays in Builder’s other commitments resulting from any causes herein described
which in turn delay the 

  
 18 

 
construction of the Vessel or Builder’s performance under this Contract; delays caused by any faulty action or omission on the part of Buyer (but without prejudice to any other rights of
Builder under this Contract); any causes or accidents whatsoever beyond the control of Builder whether or not of the nature indicated by the foregoing words; then and in any such case, the Delivery Date shall be postponed for such period as the
delivery of the Vessel is delayed thereby. 
  

	2.	 Definition of Permissible Delay: 

Delays on account of such causes as specified in Article VIII.1 and any other delays of a nature which under the terms of this Contract permit
postponement of the Delivery Date shall be understood to be permissible delays and are to be distinguished from unauthorized delays on account of which the Contract Price is subject to adjustment as provided in Article III. 

 

	3.	 Notice of Delay: 

  

	(a)	 As soon as practically possible, but not later than ten (10) days after the commencement of any cause of delay, on account of which Builder
claims that it is entitled under this Contract to a postponement of the Delivery Date, Builder shall (if practically possible) notify Buyer of the dates, the cause of delay which has occurred and its expected duration. 

 

	(b)	 Within ten (10) days after the ending of such cause of delay the Builder shall notify Buyer in writing of the date such cause of delay ended.

  

	(c)	 Builder shall also notify 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 by Buyer to object to Builder’s claim for postponement of the Delivery Date within fourteen (14) days after receipt by Buyer of such notice of claim shall be deemed to be a waiver by Buyer of its right
to object to such postponement of the Delivery Date. 

  

	(d)	 Failure of the Builder to notify the Buyer of any causes of delay as specified in Article VIII.1 and any other causes of delays which, under the
terms of this Contract, are to be considered as permissible delays, shall preclude the Builder from claiming Force Majeure for such event. 

  

	4.	 Right to Terminate Contract for Excessive Delay: 

If the total accumulated time of all permissible delays on account of the causes specified in Article VIII.1 (but excluding delays caused by
any error or omission on the part of Buyer and any other delays which under the terms of this Contract permit postponement of the Delivery Date), amounts to two hundred and ten (210) days or more, then, in such event, Buyer may terminate this
Contract in accordance with the provisions of Article X. If Buyer has not served notice of termination as provided in Article X, Builder may, at any time after the said accumulated time justifying termination by Buyer has occurred, notify Buyer of
the expected future date for delivery and demand in writing that Buyer shall make an election, in which case Buyer shall, within ten (10) days after such demand is delivered to Buyer, notify Builder of either its termination of this Contract or
its acceptance of the revised future date for delivery specified by Builder. If the Vessel is not delivered by such revised future date, Buyer shall have the same right of termination upon the same terms and conditions as above provided. If Buyer
fails to notify Builder of its termination of this Contract as specified above within such ten (10) days period, Buyer shall be deemed to have consented to the delivery of the Vessel at the revised future date for delivery. 

  
 19 

 ARTICLE IX.
                WARRANTY OF QUALITY 
  

	1.	 Guarantee: 

Subject to the provisions hereinafter set out, Builder undertakes (by way of post-delivery guarantee against defects in the Vessel) to remedy
or replace, free of charge to Buyer, any defects in the Vessel which are due to defective design, material and/or improper workmanship on the part of Builder and/or its subcontractors, provided that the defects shall appear or be discovered during a
period of                      months after the Delivery Date (the “Warranty Period”) and a written notice thereof is duly given to
Builder as prescribed below. For the purpose of this Article IX, the Vessel includes her hull, machinery, equipment and gear and all other parts and equipment that are designed, manufactured, installed or furnished by the Builder and its
subcontractors, but excludes material, machinery and equipment which have been supplied by or on behalf of Buyer. 
 Notwithstanding the
above, in the event that within the guarantee period of                      months any remedies are carried out or replacements are provided by
the BUILDER and/or its subcontractors, the guarantee period in respect to such repairs or replacements shall be extended for the period of
                     months from the date upon which the same are carried out, provided that the total accumulated period of guarantee shall not
exceed                      months from the date of delivery of the VESSEL. 

 

	2.	 Notice of Defects: 

Buyer shall notify Builder in writing of any defects for or in respect of which claim is made under the aforesaid guarantee as promptly as
possible after the discovery thereof. Buyer’s notice shall describe the nature and extent of each of the defects and contain photos of each of those defects, if possible. Builder shall in any event have no obligation whatsoever for or in
respect of any defect if such notice of defect is not received by Builder in relation to that defect within ten (10) days after the first discovery thereof. Builder shall also have no obligation whatsoever for or in respect of any defect if
such notice of defect is not received by Builder in relation to that effect within fifteen (15) days after expiry of the Warranty Period. 
  

	3.	 Extent of Builder’s Responsibility: 

  

	(a)	 Builder shall have no responsibility or liability whatsoever for or in relation to any defects in the Vessel other than the defects specified and
guaranteed against in Article IX.1, and Builder shall not be liable in any circumstances whatsoever for any liability or loss other than the relevant cost of remedying the defect or any other consequential or special losses, damages or expenses
including, but not limited to, loss of time, loss of profit or earnings or demurrage directly or indirectly occasioned to Buyer by reason of the defects specified in Article IX.1 or owing to repairs or other works done to the Vessel to remedy such
defects. 

  

	(b)	 Builder shall not be responsible for any defects in any part of the Vessel which may subsequent to delivery of the Vessel have been replaced or in
any way repaired by any other contractors (except those approved by Builder), nor for any defect which has been caused by omission or improper use and maintenance of the Vessel on the part of Buyer, its servants or agents or by ordinary wear and
tear or by perils of the sea, rivers or navigations or by accidents or fire or by any other circumstances whatsoever beyond the 

  
 20 

	 	 
control of Builder. 

  

	(c)	 The undertakings contained in this Article replace and exclude any other liability, guarantee, warranty and/or condition imposed or implied by the
law, customary, statutory or otherwise, by reason of the construction and/or sale of the Vessel by Builder for and to Buyer. 

	4.	 Remedy of Defects: 

  

	(a)	 Builder shall remedy at its expense any defects, against which the Vessel is guaranteed under this Article by making all necessary repairs or
replacements at the Builder’s nominated yard. 

  

	(b)	 However, if it is impractical to bring the Vessel to the Shipyard, Buyer may cause the necessary repairs or replacements to be made at another place
which is deemed by the Buyer with the consent of the Builder, such consent not to be unreasonably withheld, to be suitable for the purpose, provided that, in such event, Builder may forward or supply replacement parts or materials to the Vessel on
CIF terms unless such forwarding or supply thereof to the Vessel would impair or delay the operation or working schedule of the Vessel. 

If Buyer proposes to cause the necessary repairs or replacements to be made to Vessel at any yard or works other than the
Shipyard, Buyer shall before doing so, and in any event as soon as possible, give Builder notice of the time and place where such repairs will be made. If the Vessel is not thereby delayed, nor her operation or working schedule thereby materially
impaired, Builder shall have the right to verify by its own or appointed representative(s) the nature and extent of the defects complained of. Builder shall, in such case, promptly advise Buyer after such examination has been completed, of its
acceptance or rejection of defects as being covered by the undertakings hereby provided. 
 Upon Builder’s acceptance of
defects as justifying remedy under this Article IX.3.(b), or upon the final award of an arbitration so determining, Builder shall reimburse Buyer the documented expenses incurred by Buyer, but such reimbursement shall not exceed the average cost of
making the same repairs or replacements at a reputable European repair yard, a reputable Singapore repair yard and a reputable Chinese repair yard. The repair yards for the reference of Builder’s compensation shall be chosen by the Buyer
subject to the Builder’s prior written consent which shall not be unreasonably withheld. 
  

	(c)	 In any case, the Vessel shall at Buyer’s risk and expense be taken to the place chosen and be kept ready in all respects for such repairs or
replacements at that place and Builder shall not be responsible for towage, dockage, wharfage, port charges, and anything else incurred in Buyer’s getting and keeping the Vessel ready for such repairs and replacements. 

 

	(d)	 Builder shall have the option to retrieve at its own cost any of the replaced equipment and parts where the defects are remedied in accordance with
the provisions of this Article IX. 

  

	(e)	 Any dispute under this Article shall be referred to arbitration in accordance with the provisions of Article XIII.1.(b). 

  
 21 

 ARTICLE X.
                REMEDIES OF BUYER 
  

	1.	 Notice: 

 The
payments made by Buyer prior to the delivery of the Vessel shall be in the nature of advances to Builder. If Buyer shall exercise its right of termination in accordance with the terms of this Contract then the Buyer shall notify the Builder of its
termination under the terms of this Contract and such termination shall be effective as of the date when the notice is received by Builder. 
  

	2.	 Refund by Builder: 

Unless Builder duly contests any termination by Buyer by commencing arbitration within ten (10) working days (as defined below) of
receiving a relevant notice of termination pursuant to this Contract, the Builder shall forthwith refund to Buyer the full amount of all sums paid by Buyer to Builder on account of the Vessel, provided that for this purpose the date of commencing
arbitration shall be the date on which the Builder appoints an arbitrator and that the term “working day” shall mean a day which is not a public holiday (including a Saturday and a Sunday) in Seoul or London. 

In such event, Builder shall pay Buyer interest at the rate of six percent (6%) per annum on the amount required herein to be refunded to
Buyer, computed from the respective date following the date of receipt by Builder of each instalment or advance payment to the date of remittance of such refund to Buyer by Builder, provided, however, that if the said termination by Buyer is made
under the provisions of Article VIII.4, then in such event the Builder shall not be required to pay any interest. 
 As security for the due
performance of its obligations under this Article X, as a condition precedent to the payment of the first instalment, the Builder shall provide Buyer with a transferable irrevocable stand by letter of credit issued by Builder’s Bank,
substantially in form and substance as annexed hereto, as Exhibit A, which cover the full amount of all sums paid by Buyer to Builder on account of the Vessel and any interest payable thereon, if a termination will become effective pursuant to this
Article (the “Refund Guarantee”). 
  

	3.	 Discharge of Obligations: 

Upon such refundment by Builder to Buyer, all obligations, duties and liabilities of Builder under this Contract shall be forthwith completely
discharged. 
 ARTICLE XI.                 REMEDIES OF BUILDER

  

	1.	 Definition of Default: 

Buyer shall be deemed to be in default under this Contract in any of the following events: 

 

	(a)	 if Buyer fails to pay the first, second, third or fourth Instalment to Builder on the due date for payment thereof under this Contract; or

  

	(b)	 if the fifth instalment is not paid in accordance with Article II.4.(b) hereof; or 

 

	(c)	 if Buyer fails to deliver the Corporate Guarantee to Builder on the due date in accordance

  
 22 

	 	 
with the provisions of Article II.5; or 

  

	(d)	 if Buyer fails to take delivery of the Vessel when the Vessel is duly tendered for delivery by Builder under the provisions of Article VII; or

  

	(e)	 if Buyer or the Corporate Guarantor (without the prior written consent of the Builder) stops payment of its debts, or ceases to carry on its
business, or is unable to pay its debts as they fall due, or enters into any arrangements with its creditors generally, or becomes insolvent, or is in liquidation or administration or subject to any other insolvency procedure in any jurisdiction, or
if a receiver, manager, trustee, custodian or analogous officer is appointed in respect of all or any part of its property, undertaking or assets. 

  

	2.	 Interest and Charges: 

If Buyer shall be in default of payment of any Instalment as provided in Article XI.1 (a) and (b), Buyer shall pay interest on such
Instalment at the rate of six percent (6%) per annum from the due date thereof to the date of payment of the full amount including interest to Builder. In case Buyer shall fail to take delivery of the Vessel as provided in Article XI.1(d),
Buyer shall be deemed to be in default and the Builder shall notify in writing the Buyer to that effect, and the Buyer shall, upon receipt of such notification, forthwith acknowledge in writing to the Builder that such notification has been
received. 
 In addition, Buyer shall be liable for any reasonable and documented cost and expenses incurred by Builder by reason of the
occurrence of any default of Buyer or by reason of the exercise by Builder of any remedy hereunder. 
  

	3.	 Effect of Default: 

  

	(a)	 If any default by Buyer occurs as defined in Article XI.1(a), (b), (c), or (d) the Delivery Date shall be automatically postponed for the
period of continuance of such default by Buyer and (for the avoidance of doubt) Builder shall not be obliged to pay any liquidated damages for the delay in delivery of the Vessel caused thereby. 

 

	(b)	 If any default by Buyer as defined in Article XI.1 (a), (b), (c), or (d) continues for a period of ten (10) days, or if any default by
Buyer as defined in Article XI.1(e) occurs, Builder may, at its option, terminate this Contract by giving written notice to such effect to Buyer. Upon receipt by Buyer of such written notice of termination, this Contract shall forthwith stand
terminated and any of Buyer’s Supplies delivered to the Shipyard shall become part or parts of the Vessel. 

In the event of such termination of this Contract, Builder shall be entitled to retain and apply any Instalment(s) paid by
Buyer to Builder on account of this Contract to the recovery of Builders loss and damage including, but not limited to, reasonably estimated profit which Builder would have been entitled to receive if the Vessel had been completed and delivered to
Buyer. 
 Buyer shall ensure that Buyer’s Representatives leave Builders yard upon the termination of the Contract. 

 

	4.	 Sale of Vessel: 

  
 23 

	(a)	 If Builder terminates this Contract as provided in this Article XI, Builder shall have the full right and power either to construct/complete or not
to construct/complete the Vessel and the full right and power either to sell or not to sell the Vessel (in its completed or uncompleted state, as the case may be) at any stage. 

Builder shall be entitled to construct the Vessel without engaging any independent construction supervisors or inspectors. If
Builder engages such supervisors or inspectors, the reasonable costs of such engagement shall form part of the costs of sale which Builder is entitled to recover from Buyer. 

In the event that the Builder decides to sell the Vessel in its uncompleted state or to construct/complete and sell it under a
shipbuilding contract with a new purchaser, Builder shall be entitled to engage newbuilding brokers to find a suitable purchaser and/or to achieve such sale (whether by way of a new shipbuilding contract or otherwise). All and any money payable to
such brokers under or in relation to such engagement and/or such sale shall constitute part of the costs of sale which Builder is entitled to recover from Buyer. 

In the event that Builder sells the Vessel as described above, that part of the contract price for sale of the Vessel which
corresponds to the changes (if any) made to the Specifications after the termination of the Contract shall be excluded from calculating the proceeds of the sale of the Vessel which are to be applied as prescribed below. 

 

	(b)	 In the event of the sale of the Vessel in its completed state, the proceeds of sale received by Builder shall be applied firstly to payment of all
costs and expenses attending such sale and otherwise incurred by Builder as a result of Buyer’s default, and secondly to payment of: (i) all unpaid Instalments and interest on such Instalments at the rate of six percent (6%) per annum
from the respective due dates thereof to the date of application; and (ii) all and any other payment of money which Builder would have been entitled to receive from Buyer had the Contract been performed in full without being terminated.

  

	(c)	 In the event of the sale of the Vessel in its incomplete state, the proceeds of sale received by Builder shall be applied firstly to payment of all
costs and expenses attending such sale and otherwise incurred by Builder as a result of Buyer’s default, and secondly to payment of: (i) all costs of construction of the Vessel less the Instalment(s) retained by Builder; and (ii) all
and any other payment of money which Builder would have been entitled to receive from Buyer had the Contract been performed in full without being terminated. 

 

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

  

	(e)	 If the proceeds of sale are insufficient to pay such total amount payable as set out in Article XI.4(b) or (c), Buyer shall promptly pay the
deficiency to Builder upon demand. 

  

	5.	 Remedies Cumulative: 

No remedy referred to in this Article XI is intended to be exclusive, but each shall be cumulative and is in addition to, and may be exercised
concurrently with, any other remedy which is referred 

  
 24 

 
to in this Article XI, or which may otherwise be available to Builder including, without limitation, the right to terminate this Contract. 

ARTICLE XII.                 INSURANCE 

 

	1.	 Extent of Insurance Coverage: 

From the time of launching of the Vessel until the Vessel is completed, delivered to and accepted by Buyer, 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 Buyer’s Supplies, fully insured with first class
Korean insurance companies under insurance coverage corresponding to the latest Institute of London Underwriters Clauses for Builders’ 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 payments made by Buyer to Builder plus the value of Buyer’s Supplies in custody of the Shipyard, if any. The insurance referred to hereinabove shall be taken out in the name of Builder and all losses under the insurance
shall be payable to Builder. 
 If Buyer so requests, Builder shall at Buyer’s cost procure insurance on the Vessel and all parts,
materials, machinery and equipment intended therefore against other risks not provided in this Article XII.1 and shall make all arrangements to that end. The cost of such insurance shall be reimbursed to Builder by Buyer upon delivery of the Vessel.

 Notwithstanding the above, Buyer shall compensate Builder for any increased cost and expense with evidence under or pursuant to any
provision of this Article XII, incurred by Builder due to any Buyer’s default as specified in Article XI. 
  

	2.	 Application of Recovered Amount: 

  

	(a)	 Partial Loss 

If the Vessel shall be damaged by any insured cause whatsoever prior to acceptance thereof by Buyer and in the further event
that such damage shall not constitute an actual, constructive, arranged or compromised total loss of the Vessel, Builder shall apply the amount recovered under the insurance referred to in Article XII.1 to the repair of such damage to the
Classification Society’s satisfaction and in accordance with the Specifications, and Buyer shall accept the Vessel under this Contract when completed in accordance with this Contract and the Specifications. 

 

	(b)	 Total Loss 

If the Vessel is determined to be an actual, constructive, arranged or compromised total loss, Builder shall by 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 shall be applied to the
reconstruction of the Vessel’s damage, provided the parties hereto shall have further agreed in writing as to such 

  
 25 

	 	 
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 Buyer the amount of all Instalments paid to Builder under this Contract plus an amount equal to the value of any Buyer’s
Supplies which shall have become a total loss as aforesaid without any interest, whereupon this Contract shall be deemed to be terminated and all rights, duties, liabilities and obligations of each of the parties towards the other shall terminate
forthwith. 

 If the parties fail to reach all necessary agreements within two (2) months after the
Vessel is determined to be an actual, constructive, arranged or compromised total loss, the provisions of Article XII.2(b) (ii) shall apply. 
  

	3.	 Redelivery of Buyer’s Supplies: 

If the Vessel shall be determined to be an actual, constructive, arranged or compromised total loss and it shall not be agreed between the
parties that the Vessel be reconstructed as aforesaid, Builder shall redeliver to Buyer at the Shipyard any Buyer’s Supplies which shall not have become a total loss. 
  

	4.	 Termination of Builder’s Obligation to Insure: 

Builder’s obligations to insure the Vessel hereunder shall cease and terminate forthwith upon delivery thereof to Buyer. 

ARTICLE XIII.                 DISPUTES AND ARBITRATION 

 

	1.	 Proceedings: 

If any dispute, controversy or difference shall arise between the parties hereto out of or in relation to or in connection with this Contract
which cannot be settled by the parties themselves, it shall be resolved as follows: 
  

	(a)	 Any dispute relating solely to technical matters concerning the construction, material or quality of work under this Contract or the Specifications
may, subject to mutual agreement between the parties hereto, be referred to a suitably qualified expert who (if the parties cannot agree on his identity) shall be appointed by the President for the time being of the Royal Institution of Naval
Architects, London. The said expert shall act as assessor and not an arbitrator. He shall publish his determination of the dispute in writing. Such determination shall include findings as to any required extension of the Delivery Date by reason of
the dispute and may also include a finding as to payment of costs incurred in relation to or in connection with such dispute. 

His determination thus published shall be final and binding on the parties. 

 

	(b)	 All other disputes arising out of or in connection with this Contract shall be referred to arbitration in London, England before a tribunal of three
arbitrators, unless the parties shall agree upon the appointment of a sole arbitrator. One arbitrator shall be appointed by 

  
 26 

 Builder and another by Buyer, and the two arbitrators shall choose and appoint the
third arbitrator by agreement. If the two arbitrators fail to choose and appoint the third arbitrator by agreement, either of the said two arbitrators may apply to the President for the time being of The London Maritime Arbitrators’ Association
to choose and appoint the third arbitrator on behalf of the two arbitrators. 
 Such arbitration shall be conducted in
accordance with the Arbitration Act 1996 of United Kingdom or any re-enactment or statutory modification thereof for the time being in force and with the rules of The London Maritime Arbitrators’ Association for the time being in force. 

The final award (interim or otherwise) of the arbitration tribunal shall be final and binding on the parties save that the
parties shall have the same rights of appeal as they would be allowed to under the Arbitration Act 1996 of the United Kingdom or any re-enactment or statutory modification thereof for the time being in force. 

 

	2.	 Alteration of Delivery of the Vessel: 

In the event of reference to arbitration of any dispute or disputes arising out of matters occurring prior to delivery of the Vessel, the award
by the arbitration tribunal shall include a declaration as to any postponement of the Delivery Date which the arbitration tribunal may in his/their absolute discretion deem appropriate. 

 

	3.	 Entry in Court: 

Judgement on an award by arbitrators may be entered in any court of competent jurisdiction for enforcement thereof. 

ARTICLE XIV.                 RIGHT OF ASSIGNMENT 

Neither party shall assign or transfer all or any part of its rights or obligations under this Contract to any third party without the prior
written consent thereto of the other party, such consent not to be unreasonably withheld. No assignment that has been done in breach of the foregoing provisions shall be effective. Builder shall not refuse to give such consent if Buyer wishes to
assign all of its rights under this Contract to a single assignee (acting as trustee or otherwise) by way of security for any loan provided to Buyer by any one or more banks or other financial institutions to finance its purchase of the Vessel
hereunder. Without prejudice to the foregoing, no assignment of Buyer’s rights under this Contract shall be binding upon Builder unless notice thereof is given to Builder. 

In the event of any such assignment by either party, all costs including legal and other costs incurred in relation thereto shall be borne and
paid for by the assignor, and the assignor shall remain liable under this Contract to the other party to the same extent as it was prior to the making of the assignment and shall cause the assignee to observe and respect the terms thereof. 

This Contract shall be binding upon the respective successors of the parties and effective for the benefit their respective assigns. 

  
 27 

 ARTICLE XV.
                TAXES AND DUTIES 
  

	1.	 Taxes and Duties in Korea: 

Builder shall bear and pay all taxes and duties levied or imposed in Korea in connection with the execution and/or performance of this
Contract, except any taxes and duties imposed in Korea upon Buyer’s Supplies or upon the activities or personal incomes of Buyer’s employees and agents (including the Representatives and representatives of the manufacturers of Buyer’s
Supplies). 
  

	2.	 Taxes and Duties outside Korea: 

Buyer shall bear and pay all taxes and duties levied or imposed outside Korea in connection with execution and/or performance of this Contract
except for any taxes and duties imposed upon those items or services to be procured by Builder or its subcontractors for construction of the Vessel. 

ARTICLE XVI.                 PATENTS, TRADEMARKS, COPYRIGHTS, ETC.

  

	1.	 Patents, Trademarks and Copyrights: 

  

	(a)	 Builder shall indemnify and hold harmless the Buyer against all actual claims, losses, damages and liabilities (excluding any indirect or
consequential losses) for infringement of patent rights, copyrights, design rights, service marks or trademarks arising directly from the construction of the Vessel by Builder at the Shipyard and against all costs and expenses of litigation, if any
(excluding Buyer’s internal costs and expenses), but such indemnity shall not extend to any claims, losses, damages and liabilities involving Buyer’s Supplies. 

 

	(b)	 Buyer shall indemnify Builder and its subcontractors against all actual claims, losses, damages and liabilities (excluding any indirect or
consequential losses) for infringement of patent rights, copyrights, design rights, service marks or trademarks arising directly from the performance by Builder of its obligations to take delivery, store, install, test and commission the
Buyer’s Supplies under this Contract and against all costs and expenses of litigation, if any (excluding Builder’s internal costs and expenses). 

  

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

  

	2.	 Rights to General Plans, Specifications and Working Drawings: 

 

	(a)	 Builder retains all rights with respect to the Specifications, plans, working drawings, technical descriptions, calculations, test results and other
data, information and all other materials and documents relating to the design and construction of the Vessel (“Design Documents”). 

  

	(b)	 Buyer shall not use the Design Documents other than for the purposes of construction, operation, repair and maintenance of the Vessel.

  

	(c)	 Buyer undertakes to keep the Design Documents confidential and not to disclose the

  
 28 

	 	 
same or divulge any information contained therein directly or indirectly to any third parties, without the prior written consent of Builder, except where it is necessary for the usual operation,
repair and maintenance of the Vessel. Where Buyer discloses the Design Documents to such third parties, it shall ensure that it imposes identical restrictions on such third parties as to confidentiality, use and disclosure as are imposed on Buyer
herein and strictly enforce such restrictions. 

  

	(d)	 Buyer shall indemnify Builder against all actual claims, losses, damages and liabilities (excluding any indirect or consequential losses) arising
from breach by Buyer of its obligations under this Article or any failure by third parties to which it has disclosed the Design Documents to comply with their parallel obligations in accordance with the terms of confidentiality, use and disclosure
set forth herein. 

 ARTICLE XVII.
                COMPLIANCE AND ANTI-BRIBERY 
  

	1.	 Representations of the Parties: 

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

 

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

  

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

  

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

  

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

 

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

 

	2.	 Indemnification: 

Each party agrees that it will fully indemnify, defend and hold harmless the other party from any

  
 29 

 claims, liabilities, damages, expenses, penalties, judgments and losses (including reasonable
attorneys’ fees) assessed or resulting by reason of a breach of the representations and undertakings contained in this Article XVII to the extent permitted by law. 

ARTICLE XVIII.             BUYER’S SUPPLIES 

 

	1.	 Responsibility of Buyer: 

  

	(a)	 Buyer shall, at its own risk, cost and expense, supply and deliver to Builder all of the items (including funnel mark, ship name and other
information necessary for the timely construction of the Vessel) to be furnished by Buyer as set out in the specifications (“Buyer’s Supplies”) at warehouse or other storage of the Shipyard in good condition ready for installation or
use in or on the Vessel, in accordance with the time schedule designated by Builder to meet the building schedule of the Vessel. 

  

	(b)	 In order to facilitate installation or use by Builder of Buyer’s Supplies in or on the Vessel, Buyer shall furnish Builder with necessary
specifications, plans, drawings, instruction books, manuals, test reports and certificates required by Builder. Buyer, if so requested by Builder, shall, without any charge to Builder, cause representatives of the manufacturers of Buyer’s
Supplies to assist Builder in installation thereof in or on the Vessel and/or to carry out installation thereof by themselves or to make necessary adjustments, tests and inspection thereof at the Shipyard. 

 

	(c)	 Any and all of Buyer’s Supplies shall be subject to Builder’s reasonable right of rejection, if they are found to be unsuitable or in
improper condition for installation or use. However, if so requested by Buyer, Builder may repair or adjust Buyer’s Supplies without prejudice to Builder’s other rights hereunder and without being responsible for any consequences arising
therefrom. In such case, Buyer shall reimburse Builder for all costs and expenses incurred by Builder in such repair or adjustment and the Delivery Date shall be postponed for any period of delay in the construction of the Vessel caused by the
making of such repair or adjustment. 

  

	(d)	 Should Buyer fail to deliver any of Buyer’s Supplies within the time designated by Builder, the Delivery Date shall be extended for the period
of such delay in delivery of Buyer’s Supplies if such delay in delivery shall affect the Vessel’s construction or the Delivery Date of the Vessel. In such event, Buyer shall be responsible for all direct losses and direct damages incurred
by Builder related to the Vessel by the reason of such delay in delivery of Buyer’s Supplies and such payment shall be made upon delivery of the Vessel. 

 

	(e)	 If delay in delivery of any of Buyer’s Supplies exceeds fifteen (15) days, then Builder shall be entitled to proceed with construction of
the Vessel without installation thereof in or on the Vessel, without prejudice to Builder’s other rights as hereinabove provided, and Buyer shall accept and take delivery of the Vessel as so constructed. 

 

	2.	 Responsibility of Builder: 

Builder shall be responsible for the storing and handling with reasonable care of Buyer’s Supplies after delivery thereof to 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 Builder shall not be responsible for quality, efficiency and/or performance of any of
Buyer’s 

  
 30 

 
Supplies and for the loss of or damage to Buyer’s Supplies caused without Builder’s wilful misconduct or gross negligence. 

 

	3.	 Return of Buyer’s Supplies 

Where under any provision of this Contract Builder shall be required either to refund the value of or to return Buyer’s Supplies to Buyer,
then Builder shall lawfully discharge any such obligation by returning the Buyer’s Supplies in question FOB Okpo or, in Builder’s option by paying to Buyer the invoiced cost to Buyer of such supplies CIF Okpo. 

ARTICLE XIX.               REPRESENTATIVES 

Buyer’s representative and address designated for the purpose of notices and other communications under this Contract shall be: 

 

	Address :	  

  

	Attention:	  

  

	Telephone:	  

  

	Telefax:	  

  

	Mobile:	  

  

	Email:	  

 unless and until
Buyer notifies Builder otherwise in writing. 
 Builder’s representative and address designated for the purpose of notices and other
communications under this Contract shall be: 
  

	 	 Daewoo Shipbuilding & Marine Engineering Co., Ltd. 

 

	Address :	 85, Da-dong, Jung-Gu, 

	 	 Seoul, Republic of Korea, 

  

	Attention:	  

  

	Telephone:	 +82 2 2129 0982 

  

	Telefax:	 +82 2 2129 0086 

  

	Email:	  

 unless and until
Builder notifies Buyer otherwise in writing. 

  
 31 

 ARTICLE XX.
                NOTICE AND LANGUAGE 
  

	1.	 Notice: 

Except as may be more specifically set out in any particular provision of this Contract, any and all notices, requests, demands, instructions,
advices and communications in connection with this Contract shall be in writing and shall be conveyed by registered airmail, by express courier service, personally, by telefax or by email, and shall be deemed to be given at, and become effective
from, the time when the same is delivered to (or in the case of a telefax or email, received at) the address of the party to be served. 
  

	2.	 Language: 

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

 

	3.	 Writing: 

 A
telefax or email message shall be deemed to be a notice “in writing” for purposes of this Contract. 
 ARTICLE XXI.
                EFFECTIVE DATE OF CONTRACT 
 This
Contract shall become effective from the date of its execution by both Buyer and Builder. However, if Builder fails to provide Buyer with Refund Guarantee referred to in Article X.2 within fourteen (14) days after the date of the Contract,
then, the Contract shall automatically become null and void, unless otherwise mutually agreed in writing between the parties hereto, and the parties shall be immediately and completely discharged from all of their obligations to the other party
under this Contract as though this Contract had never been entered into at all. 
 ARTICLE XXII.
                INTERPRETATION 
  

	1.	 Laws Applicable: 

This Contract shall be governed by and construed in accordance with the laws of England. 

 

	2.	 Discrepancies: 

In the event of any conflict between this Contract and the Specifications, the provisions of this Contract shall prevail. In the event of any
conflict between the specifications and General Arrangement Plan, the provisions of the specifications shall prevail. 
  

	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. 

  
 32 

	4.	 Amendment: 

No provision of this Contract may be amended, modified, waived or terminated except by an instrument in writing executed by each of the parties
hereto. 
  

	5.	 Headings: 

The descriptive headings of Articles and Clauses herein are for convenience of reference only and are not to be used in construing or
interpreting this Contract. 
  

	6.	 Severability: 

Any provision of this Contract which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provisions in any other
jurisdiction. 
  

	7.	 Exclusion of the Contracts (Rights of Third Parties) Act 1999: 

No provision of this Contract shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to
this Contract. 

  
 33 

 IN WITNESS WHEREOF, the parties hereto have caused this Contract to be signed by their duly
authorized signatories the day and year first above written. 
  

									
	 For and on behalf of :
	 		 	 For and on behalf of :
 DAEWOO
SHIPBUILDING &
 MARINE ENGINEERING CO., LTD.

					
	By:	 	 	 		 	By:	 	 
	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	

  
 34 

 EXHIBIT A.
                    REFUND GUARANTEE 
  

			
	To:	  	Date: [                        ]

 IRREVOCABLE STAND BY LETTER OF CREDIT 

Gentlemen: 
 We hereby open our
irrevocable Letter of Credit No.     ........... in favour of ........................................ (herein called “Buyer”) for account of Daewoo Shipbuilding & Marine Engineering Co., Ltd., Seoul, Korea
(herein called “Builder”) as follows in connection with the Shipbuilding Contract dated ..... ....................... (hereinafter called the “Contract”) made by and between Buyer and the Builder for the construction and sale of
one (1) 180,000 dwt Drybulk Carrier having Builder’s Hull No.              (hereinafter called the “Vessel”). 

If in connection with the terms and conditions of the Contract, whether so supplemented, amended, changed or modified, the Buyer shall become
entitled to a refund of the advance payments made to Builder prior to the delivery of the Vessel, we hereby irrevocably guarantee to make the repayment of the same to Buyer within ten (10) days after demand by the Buyer together with interest
thereon at the rate of six percent (6%) per annum from the date following the date of receipt by Builder of each advance payment to the date of remittance by telegraphic transfer of such refund. 

This Letter of Credit shall be in force and effect from the date of Builder’s actual receipt of the first instalment or advance payment in
the amount of United States Dollars ......... ............................................ .............................. 
 The amount of
this Credit will be automatically increased upon Builder’s receipt of each successive advance payment, not more than four (4) times, each time by the amount of the advance payment plus interest thereon as provided in the Contract, but in
any eventuality the amount of this Credit shall not exceed the total sum of United States Dollars ........................... ........................(USD .............) plus interest thereon at the rate of six percent (6%) per annum from the
date following the date of Builder’s receipt of each advance payment to the date of remittance by telegraphic transfer of the refund. If any termination of the Contract is based on delays due to Force Majeure or other causes beyond the control
of Builder as specified in Article VIII of the Contract, no interest shall be payable. 
 This Letter of Credit is available against
Buyer’s written statement stating that Buyer’s demand for refund has been made in conformity with the Contract and Builder has failed to make the refund within twenty (20) days after the Buyer’s demand. Refund shall be made to
the Buyer by telegraphic transfer in United States Dollars. 
 This Letter of Credit shall expire and become null and void upon receipt by
Buyer of the sum guaranteed hereby together with interest thereon as aforesaid or upon the execution by Buyer and Builder of the Protocol of Delivery and Acceptance of the Vessel or if the Contract is terminated due to Buyer’s default in
accordance with the provisions of Article XI of the Contract, unless such default has been disputed by Buyer within ten (10) working days of Buyer’s receipt of Builder’s written notice of termination. In any such case, this Letter of
Credit shall be returned to us. 

  
 35 

 This Letter of Credit is transferable and valid until
                    , which date shall be adjusted and fixed in accordance with Article VIl.1(a) of the Contract, or, in the event of delayed
delivery, the expiration date of this Letter of Credit shall be extended to such time as the Vessel is delivered by Builder to Buyer in accordance with the provisions of the Contract. 

Notwithstanding the provisions hereinabove, in case we receive notification from you or Builder confirmed by an arbitrator stating that your
claim to cancel or terminate the Contract or your claim for refundment thereunder has been disputed and referred to Arbitration in accordance with the provisions of the Contract, this Letter of Credit shall be valid, until thirty (30) days
after the final award shall be rendered in the Arbitration and a copy thereof acknowledged by the Arbitrators. In such case, this Letter of Credit shall not be available unless and until such acknowledged copy of the final award in the Arbitration
justifying your claim is presented to us. 
 Except as otherwise expressly stated herein, this Letter of Credit is subject to the Uniform
Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 ( hereinafter called the “UCPDC”) and to the extent not contrary to the UCPDC this Letter of Credit shall be governed
by the laws of England. And any dispute arising out of or in relation to this Letter of Credit shall be determined by the High Court of England to whose non-exclusive jurisdiction we hereby agree to submit. For the purposes of any legal proceedings
hereunder we hereby irrevocably appoint
[                                         ] at
present of [                             ] as our agents for the service of process. 

Yours very truly, 
  

			
	For and or behalf of	 	
	   
	 	  

	 Name:
 Title:
	 	

  
 36 

 EXHIBIT B.
                    CORPORATE GUARANTEE 

(CORPORATE GUARANTEE) 
 Daewoo
Shipbuilding & 
 Marine Engineering Co., Ltd. 
 85,
Da-dong, Jung-gu, 
 Seoul, Republic of Korea 

Date:
[                                         
                               ] 

Dear Sirs, 
 Hull No.
[                            ] 

 

			
	 1.      We refer to the shipbuilding contract dated
[                                        ] (as
may be and may have been from time to time amended, varied and/or supplemented the “Contract”) made between (1)
[                                    ] (the “Buyer”) and
(2) yourselves (the “Builder”) for the construction and sale of a
[                                        ] having
your hull number [                    ] (the “Vessel”).

  

	2.	 In consideration of your entering into the Contract with the Buyer and the payment to us of five United States Dollars (USD 5) and other good and
valuable consideration (the receipt and sufficiency of which we hereby acknowledge), we, the undersigned, as a primary obligor and not merely as a surety, hereby irrevocably and unconditionally:- 

 

	 	(A)	 guarantee to you the due and full performance by the Buyer of all of its obligations under the Contract including, without limitation, the taking of
delivery of the Vessel and the payment by the Buyer of all amounts of whatever nature payable by it under the Contract; and 

  

	 	(B)	 undertake within thirty (30) days upon your first written demand, including a substantiated statement that the Buyer is in default of its
obligations under the Contract, to pay and/or perform our obligations under paragraph (A) above, without requesting you to take any further procedure or step against the Buyer. 

 

	3.	 We hereby expressly waive notice of any supplement, amendment, change or modification to or of the Contract that may be agreed between you and the
Buyer. 

  

	4.	 This Corporate Guarantee shall remain in full force and effect from the date hereof until the delivery of the Vessel in accordance with the
provisions of the Contract. 

  

	5.	 This Corporate Guarantee shall be a continuing guarantee. Our liability of under this guarantee shall not be discharged or affected by any
intermediate performance of obligation or payment or settlement of account by the Buyer, any security or other indemnity now or hereafter held by you in respect thereof or of the Buyer’s obligations under the Contract, any invalidity,
illegality or unenforceability of the Contract, any alteration, amendment or variation of the terms of the 

  
 37

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