Document:

EX-10.11

 Exhibit 10.11 

SHIPBUILDING CONTRACT 

OF 
 ONE (1) 61,000-DWT
TYPE 
 MOTOR BULK CARRIER 

UNDER NACKS HULL NO.              

BETWEEN 
 [SUBSIDIARY] 

AS BUYER 
 AND 

NANTONG COSCO KHI SHIP ENGINEERING CO., LTD. 

AS BUILDER 

							
	 ARTICLE I - DESCRIPTION AND CLASS
	  	 	2	  
			
	         1.
	  	Description	  	 	2	  
			
	         2.
	  	Class and Rules	  	 	3	  
			
	         3.
	  	Principal Particulars of the VESSEL	  	 	4	  
			
	         4.
	  	Subcontracting	  	 	5	  
			
	         5.
	  	Registration	  	 	5	  
		
	 ARTICLE II - CONTRACT PRICE AND TERMS OF PAYMENT
	  	 	6	  
			
	         1.
	  	Contract Price	  	 	6	  
			
	         2.
	  	Adjustment of Contract Price	  	 	6	  
			
	         3.
	  	Currency	  	 	6	  
			
	         4.
	  	Terms of Payment	  	 	6	  
			
	         5.
	  	Method of Payment	  	 	8	  
			
	         6.
	  	Prepayment	  	 	10	  
			
	         7.
	  	Special Conditions	  	 	10	  
		
	 ARTICLE III - ADJUSTMENT OF CONTRACT PRICE
	  	 	11	  
			
	         1.
	  	Delivery	  	 	11	  
			
	         2.
	  	Speed	  	 	12	  
			
	         3.
	  	Fuel Consumption	  	 	13	  
			
	         4.
	  	Deadweight	  	 	14	  
			
	         5.
	  	Effect of Rescission	  	 	15	  
			
	         6.
	  	Method of Settlement	  	 	15	  
		
	ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING CONSTRUCTION	  	 	16	  
			
	         1.
	  	Approval of Plans and Drawings	  	 	16	  
			
	         2.
	  	Appointment of the BUYER’s Representative	  	 	17	  
			
	         3.
	  	Inspection by Representative	  	 	17	  
			
	         4.
	  	Facilities	  	 	19	  
			
	         5.
	  	Liability of the BUILDER	  	 	19	  
			
	         6.
	  	Responsibility of the BUYER	  	 	20	  
			
	         7.
	  	Salaries and Expenses	  	 	20	  
		
	 ARTICLE V - MODIFICATION
	  	 	21	  
			
	         1.
	  	Modification of Specifications	  	 	21	  
			
	         2.
	  	Change in Class, etc.	  	 	21	  
			
	         3.
	  	Substitution of Materials	  	 	22	  
		
	 ARTICLE VI - TRIALS
	  	 	24	  
			
	         1.
	  	Notice	  	 	24	  
			
	         2.
	  	Weather Condition	  	 	24	  
			
	         3.
	  	How Conducted	  	 	25	  

  

					
		  	1	  	

							
	         4.
	  	Trial Condition	  	 	25	  
			
	         5.
	  	Method of Acceptance or Rejection	  	 	25	  
			
	         6.
	  	Effect of Acceptance	  	 	27	  
			
	         7.
	  	Effect of Rejection	  	 	27	  
			
	         8.
	  	Disposition of Surplus Consumable Stores	  	 	28	  
		
	 ARTICLE VII - DELIVERY
	  	 	29	  
			
	         1.
	  	Time and Place	  	 	29	  
			
	         2.
	  	Notice	  	 	29	  
			
	         3.
	  	When and How Effected	  	 	29	  
			
	         4.
	  	Documents to be Delivered to the BUYER	  	 	30	  
			
	         5.
	  	Tender of the VESSEL	  	 	31	  
			
	         6.
	  	Title and Risk	  	 	31	  
			
	         7.
	  	Removal of the VESSEL	  	 	31	  
		
	 ARTICLE VIII - DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE MAJEURE)
	  	 	32	  
			
	         1.
	  	Causes of Delay	  	 	32	  
			
	         2.
	  	Notice of Delays	  	 	33	  
			
	         3.
	  	Definition of Permissible Delays	  	 	33	  
			
	         4.
	  	Right to Rescind for Excessive Delay	  	 	33	  
		
	 ARTICLE IX - WARRANTY OF QUALITY
	  	 	35	  
			
	         1.
	  	Guarantee of Material, Workmanship	  	 	35	  
			
	         2.
	  	Notice of Defects	  	 	35	  
			
	         3.
	  	Remedy of Defects	  	 	35	  
			
	         4.
	  	Extent of BUILDER’s Liability	  	 	37	  
		
	 ARTICLE X - RESCISSION OF THE CONTRACT
	  	 	39	  
			
	         1.
	  	Notice	  	 	39	  
			
	         2.
	  	Refund by the BUILDER	  	 	39	  
			
	         3.
	  	Discharge of Obligations	  	 	40	  
			
	         4.
	  	Refundment Guarantee	  	 	40	  
		
	 ARTICLE XI - BUYER AND BUILDER’S DEFAULT
	  	 	41	  
			
	         1.
	  	Definition of the BUYER’s Default	  	 	41	  
			
	         2.
	  	Interest and Charge	  	 	41	  
			
	         3.
	  	Effect of Default	  	 	42	  
			
	         4.
	  	Sale of the VESSEL	  	 	43	  
			
	         5.
	  	Definition of the BUILDER’s Default	  	 	44	  
		
	 ARTICLE XII - INSURANCE
	  	 	46	  
			
	         1.
	  	Extent of Insurance Coverage	  	 	46	  
			
	         2.
	  	Application of Recovered Amount	  	 	47	  

  

					
		  	2	  	

							
	         3.
	  	Termination of the BUILDER’s obligation to insure	  	 	48	  
		
	 ARTICLE XIII - DISPUTES AND ARBITRATION
	  	 	49	  
			
	         1.
	  	Proceedings	  	 	49	  
			
	         2.
	  	Notice of Award	  	 	50	  
			
	         3.
	  	Expenses	  	 	50	  
			
	         4.
	  	Entry in Court	  	 	50	  
			
	         5.
	  	Alteration of Delivery of the VESSEL	  	 	50	  
		
	 ARTICLE XIV - RIGHTS OF ASSIGNMENT
	  	 	51	  
		
	 ARTICLE XV - TAXES AND DUTIES
	  	 	52	  
		
	 ARTICLE XVI - PATENTS, TRADEMARKS, COPYRIGHTS, ETC.
	  	 	53	  
			
	         1.
	  	Patents, Trademarks and Copyrights	  	 	53	  
			
	         2.
	  	General Plans, Specifications and Working Drawings	  	 	53	  
		
	 ARTICLE XVII - BUYER’s SUPPLIES
	  	 	54	  
			
	         1.
	  	Responsibility of the BUYER	  	 	54	  
			
	         2.
	  	Responsibility of the BUILDER	  	 	55	  
		
	 ARTICLE XVIII - NOTICE AND CORRESPONDENCE
	  	 	56	  
			
	         1.
	  	Address	  	 	56	  
			
	         2.
	  	Language	  	 	56	  
		
	 ARTICLE XIX - EFFECTIVE DATE OF CONTRACT
	  	 	57	  
		
	 ARTICLE XX - INTERPRETATION
	  	 	58	  
			
	         1.
	  	Laws Applicable	  	 	58	  
			
	         2.
	  	Discrepancies	  	 	58	  
			
	         3.
	  	Entire Agreement	  	 	58	  
			
	         4.
	  	Other	  	 	58	  
		
	 ARTICLE XXI - CONFIDENTIALITY
	  	 	59	  
		
	 EXHIBIT A
	  	 	61	  
		
	         REFUNDMENT GUARANTEE
	  	 	61	  
		
	 EXHIBIT B
	  	 	65	  
		
	         PERFORMANCE GUARANTEE
	  	 	65	  

  

					
		  	3	  	

 SHIPBUILDING CONTRACT 

FOR 
 ONE
(1) 61,000-DWT TYPE 
 MOTOR BULK CARRIER 

THIS CONTRACT, made on this      day of
                     by and between NANTONG COSCO KHI SHIP ENGINEERING CO., LTD., a corporation organized and existing under the laws of the
People’s Republic of China, having its principal office at No. 117 Linjiang Road, Nantong, Jiangsu, the People’s Republic of China (hereinafter called the “BUILDER”), the party of the first part, and
                    , a corporation organized and existing under the laws of the Republic of the Marshall Islands, having its principal office at The
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands (hereinafter called the “BUYER”), the party of the second part. 

W I T N E S S E T H: 

In consideration of the mutual covenants contained herein, the BUILDER agrees to, build, launch, equip and complete one (1) 61,000-DWT
type motor bulk carrier (hereinafter called the “VESSEL”) more fully described in ARTICLE I hereof at the BUILDER’s shipyard in No. 117 Linjiang Road, Nantong, Jiangsu, China (hereinafter called the “SHIPYARD”) and to
sell and deliver the VESSEL to the BUYER, and the BUYER agrees to purchase and take delivery of the VESSEL from the BUILDER and to pay for the same, all upon the terms and conditions hereinafter set forth. 

  

					
		  	1	  	

 ARTICLE I - DESCRIPTION AND CLASS 

 

	1.	 Description 

The VESSEL shall be a 61,000-DWT type motor bulk carrier of the class described below. The VESSEL shall have the
BUILDER’s Hull No.             and shall be constructed, equipped and completed in accordance with the following Specifications and Plans of the date hereof signed by the parties
hereto (hereinafter collectively called the “Specifications”), making an integral part hereof. 
 The
Specifications: 
  

			
	Part I & II (General and Hull Part)	 	 Dwg.No.

	Part III (Machinery Part)	 	 Dwg.No.

	Part IV (Electric and Automation Part)	 	 Dwg.No.

 The Plans: 
  

			
	Preliminary General Arrangement (1/2)	 	 Dwg.No.

	Preliminary General Arrangement (2/2) (Accommodation)	 	 Dwg.No.

		
	Makers List:	 	 Dwg. No.

		
	Discussion Memorandum:	 	 Dwg. No.

 Addendum To Discussion Memorandum: Dwg. No. 

Extra and Credit Agreement:
                     

  

					
		  	2	  	

	2.	 Class and Rules 

The VESSEL, including its machinery, equipment and outfittings, shall be constructed in accordance with the rules and
regulations as described in the Specifications and under special survey of                      (hereinafter called the “Classification
Society”) under the following Class Notations. 
 Which is equivalent to 

                    
Descriptive Note: Strengthened for heavy cargo loading where holds nos. 2 & 4 may be empty 
 The BUILDER shall arrange
with the Classification Society for the assignment by the Classification Society of a representative or representatives (hereinafter called the “Classification Surveyor”) to the VESSEL during the construction. 

All fees and charges incidental to classification and to compliance with the above specified rules, regulations and
requirements of this Contract payable on account of the construction of the VESSEL shall be for the account of the BUILDER. 

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

  

					
		  	3	  	

	3.	 Principal Particulars of the VESSEL 

  

					
	 (a)   Hull:
	  		  	
			
	  Length overall
	  	abt. 199.90 m	  	
			
	  Length between perpendiculars
	  	197.00 m	  	
			
	  Breadth moulded
	  	32.24 m	  	
			
	  Depth moulded
	  	18.60 m	  	
			
	  Designed draught moulded
	  	11.30 m	  	
			
	  Summer draught moulded
	  	13.00 m	  	

  

	 	(b)	 Propelling machinery and Guaranteed speed: 

The propelling machinery shall consist of one (1) MAN B&W
                    , two-stroke cycle, crosshead, reversible, marine diesel engine with exhaust gas turbocharger having a maximum continuous output
of              Kilowatts (bhp) with 108 rpm, in accordance with the Specifications, giving the VESSEL a trial speed of 15.8 knots on a trial ballast condition (Displacement of abt.26,500t)
at the maximum continuous output with clean bottom, on calm and deep open sea, under no wind, no wave and no current condition. 
  

	 	(c)	 Deadweight (guaranteed): 

The VESSEL, when completed and ready for sea, shall be capable of carrying the deadweight tonnage of not less than 61,143
metric tons on the summer draught moulded of 13.00 m, in accordance with the definition described in Specifications General Part para. 6 “Deadweight calculation”. 
  

	 	(d)	 Fuel oil consumption (guaranteed): 

The fuel oil consumption of the VESSEL’s main engine as determined on the shop trial as more fully specified in the
Specifications, at the normal output 

  

					
		  	4	  	

 
shall be          grams/kW/hour using fuel oil having low calorific value of 42,700 kJ/kg. 

If the fuel used on such trials has a greater or lesser calorific value than 42,700 kJ/kg (low calorific value), the actual
fuel oil consumption of main engine shall be adjusted in inverse proportion to that which would have been achieved with fuel oil of the said calorific value. 
  

	4.	 Subcontracting 

The BUILDER may, at its sole discretion and responsibility towards the Buyer, subcontract portions of the construction work
of the VESSEL to any qualified and experienced subcontractor in the vicinity of the Shipyard under the BUILDER’s liability for the performance of the Shipbuilding Contract, provided always that the BUILDER shall have first given notice in
writing to the Buyer for any major sub-contract award (for the purpose of this Contract an award involving consideration in excess of US$2 million or its equivalent in any other currency shall be deemed a major sub-contract, but shall exclude all
supply contract with suppliers in relation to appurtenances and materials) and received the Buyer’s written approval thereof which shall not be unreasonably withheld. 

The delivery and final assembly into the VESSEL of any subcontracted work shall be at the BUILDER’s Shipyard. 

Without prejudice to the generality of foregoing, the BUILDER shall remain fully liable for the due and complete performance
of any work (or part of it) undertaken by any subcontractor as if undertaken by BUILDER. 
  

	5.	 Registration 

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

  

					
		  	5	  	

 ARTICLE II - CONTRACT PRICE AND TERMS OF PAYMENT 

 

	1.	 Contract Price 

The purchase price of the VESSEL is United States Dollars
                     net receivable by the BUILDER (hereinafter called the “Contract Price”), which is inclusive of 1% brokerage commission
and 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.	 Adjustment of Contract Price 

Adjustment of the Contract Price, if any, in accordance with provisions of this Contract shall be made by way of addition to
or subtraction from the Contract Price upon payment of the fifth instalment in the manner as hereinafter provided. 
  

	3.	 Currency 

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

 

	4.	 Terms of Payment 

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

  

	 	(a)	 1st Instalment: 

The sum of United States Dollars
                     shall be paid within five (5) banking days from the date 

  

					
		  	6	  	

 
of receipt by BUYER’s bank of a SWIFT notice from BUILDER’s bank confirming that the Refundment Guarantee in the form exhibit “A” attached for the VESSEL has been issued. The
confirmation shall be accompanied by a copy of the Refundment Guarantee. 
  

	 	(b)	 2nd Instalment: 

The sum of United States Dollars
                     shall be paid within five (5) banking days from the date of receipt by the BUYER of a notice from the BUILDER together with
a statement issued by the Classification Society confirming that the steel cutting of the VESSEL has been made, it being understood that in no eventuality shall this instalment become due before
                    . 
  

	 	(c)	 3rd Instalment: 

The sum of United States Dollars
                     shall be paid within five (5) banking days from the date of receipt by the BUYER of a notice from the BUILDER together with
a statement issued by the Classification Society confirming that the keel laying of the VESSEL has been made. 
  

	 	(d)	 4th Instalment: 

The sum of United States Dollars
                     shall be paid within five (5) banking days from the date of receipt by the BUYER of a notice from the BUILDER together with
a statement issued by the Classification Society confirming that the launching of the VESSEL has been made. 
  

	 	(e)	 5th Instalment: 

The sum of United States Dollars
                     plus any increase or minus any decrease due to adjustment of the Contract Price hereunder shall be paid upon delivery of the
VESSEL. 

  

					
		  	7	  	

	5.	 Method of Payment 

Each of the instalments due and payable of the VESSEL shall be remitted, as the net receivable sum to the BUILDER, by the
due date by telegraphic transfer to the bank nominated by the BUILDER with U.S. Dollar Saving Account (hereinafter called the “BANK”) for the account of the BUILDER with remarks of “Hull
            ”. 
  

	 	(a)	 1st Instalment: 

Within five (5) banking days after BUYER’s receipt of the notice of Refundment Guarantee, the BUYER shall remit the
amount of this instalment by telegraphic transfer to BANK for the account of the BUILDER with remarks of “Hull             ”. 

 

	 	(b)	 2nd Instalment: 

The BUILDER shall give a notice to the BUYER about expected date of steel cutting of the VESSEL at least seven
(7) banking days prior to the scheduled steel cutting date. 
 Upon receipt of telefax or e-mail notice for the
BUILDER together with the statement from the Classification Society confirming that “Steel Cutting” for the VESSEL has been made, the BUYER shall remit within Five (5) banking days the amount of this instalment by telegraphic transfer
to the BANK for the account of the BUILDER with remarks of “Hull             ”. 
  

	 	(c)	 3rd Instalment: 

The BUILDER shall give a notice to the BUYER about expected date of keel laying of the VESSEL at least seven (7) banking
days prior to the scheduled keel laying date. 
 Upon receipt of telefax or e-mail notice for the BUILDER together with
the statement from the Classification Society confirming that “Keel Laying” for the VESSEL has been made, the BUYER shall remit within Five (5) banking days the amount of this instalment by telegraphic transfer to the BANK for the

  

					
		  	8	  	

 
account of the BUILDER with remarks of “Hull             ”. 

 

	 	(d)	 4th Instalment: 

The BUILDER shall give a notice to the BUYER about expected date of launching of the VESSEL at least seven (7) banking days
prior to the scheduled launching date. 
 Upon receipt of telefax or e-mail notice for the BUILDER together with the
statement from the Classification Society confirming that “Launching” for the VESSEL has been made, the BUYER shall remit within Five (5) banking days the amount of this instalment by telegraphic transfer to the BANK for the account
of the BUILDER with remarks of “Hull             ”. 
  

	 	(e)	 5th Instalment: 

The BUILDER shall give a detail notice to the BUYER regarding expected date of delivery of the VESSEL and any price
adjustment, credit or extra, of the Contract Price ten (10) banking days prior to the scheduled delivery date. 
 The
BUYER shall, at least two (2) banking days prior to the scheduled delivery date of the VESSEL notified by the BUILDER, make irrevocable deposit of funds for a period of Ten (10) days and covering the amount of this instalment as adjusted
(the deposit interest to be for the account of the BUYER) at the account of the BANK, in favour of the BUILDER, with the instructions that the said instalment is releasable and payable to the BUILDER against a copy of Protocol of Delivery and
Acceptance of the VESSEL signed by the BUILDER and the BUYER as set forth in Paragraph 3 of Article VII hereof. 
 If the
delivery of the VESSEL is not effected on or before the expiry of the aforesaid Ten (10) days deposit period, the BUYER shall have the right to withdraw the said deposit plus accrued interest upon the expiry date. However when the newly
scheduled delivery date is notified to the BUYER by the BUILDER, the BUYER shall make the cash deposit in accordance with the same terms and conditions as set out above. 

  

					
		  	9	  	

	6.	 Prepayment 

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

	7.	 Special Conditions 

  

	 	(a)	 For the purpose of this Contract, “banking days” means days excluding Saturday, Sunday and public holiday in New York, Beijing,
Netherlands and Monaco. 

  

	 	(b)	 The BUYER shall give the BUILDER prior notice of each remittance and shall ensure that the BUILDERS account is credited without any delays on
each due date. 

 (End of Article) 

  

					
		  	10	  	

 ARTICLE III - ADJUSTMENT OF CONTRACT PRICE 

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

	1.	 Delivery  

  

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

 

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

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

	 	(c)	 But if the delay in delivery of the VESSEL should continue for a period of one hundred twenty (120) days from the thirty-first
(31st) day after the Delivery Date, then, in such event, and after such period has expired, the BUYER may at its option rescind this Contract in accordance with the provisions of Article X hereof or may consent to delivery of the VESSEL at the
total reduction provided for in above Subparagraph (b) at an agreed future date for delivery, by serving upon the BUILDER a written notice. 

The BUILDER may, at any time after the expiration of the aforementioned one

  

					
		  	11	  	

 
hundred and twenty (120) days of delay in delivery, if the BUYER has not served notice of rescission as provided in Article X hereof, demand in writing that the BUYER shall make an election,
in which case the BUYER shall, within fifteen (15) days after such demand is received by the BUYER, notify the BUILDER of its intention either to rescind this Contract or to consent to the acceptance of the VESSEL at agreed reduction price and
at agreed future date; it being understood by the parties hereto that, if the VESSEL is not delivered by such future date, the BUYER shall have the same right of rescission upon the same terms and conditions as hereinabove provided. 

If the BUYER fails to notify the BUILDER of its intention to rescind this Contract as above specified within the
aforementioned fifteen (15) days, the BUYER shall deemed to have consented to delivery of the VESSEL at the later date proposed by the 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
all postponements of the Delivery Date by reason of permissible delays as defined in Article VIII and/or any other reasons under this Contract, is not delivered by the date upon which delivery is required under the terms of this Contract.

  

	2.	 Speed 

  

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

  

	 	(b)	 In the event, however, that the deficiency in the actual speed exceeds three-tenths (3/10) of one (1) knot below the Guaranteed Speed
of the VESSEL, the Contract Price shall be reduced by United States Dollars                      only for deficiency of each further complete
one-tenth (1/10) 

  

					
		  	12	  	

	 	 
of a knot in excess up to a maximum of deficiency of nine-tenths (9/10) of one (1) knot below the Guaranteed Speed (but fractions less each complete 1/10 of a knot to be disregarded).

  

	 	(c)	 If the deficiency in actual speed of the VESSEL upon trial run is more than nine-tenths (9/10) of one (1) knot below the Guaranteed
Speed of the VESSEL, then the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the Contract Price as above provided for
nine-tenths (9/10) of one (1) knot only, that is, at a total reduction of United States Dollars                     .

  

	3.	 Fuel Consumption 

  

	 	(a)	 The Contract Price shall not be affected or changed by reason of the fuel consumption of the VESSEL’s main engine, as determined by shop
trial as per the Specifications, being more than the Guaranteed Fuel Consumption of the VESSEL’s main engine specified and required under Paragraph 3(d) of Article I of this Contract (hereinafter called the “Guaranteed Fuel
Consumption”), if such excess is not more than five percent (5%) over the Guaranteed Fuel Consumption. 

  

	 	(b)	 However, if such fuel consumption of the VESSEL’s main engine as determined by the shop trial as specified in the Specifications exceeds
five percent (5%) over the Guaranteed Fuel Consumption of the main engine, the Contract Price shall be reduced by the sum of United States Dollars
                     only 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 ten percent (10%) over the Guaranteed Fuel Consumption of the main engine. 

  

	 	(c)	 If such actual fuel consumption of the VESSEL’s main engine as determined by the shop trial as specified in the Specifications exceeds ten
percent (10%) of 

  

					
		  	13	  	

	 	 
the Guaranteed Fuel Consumption, the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a
reduction in the Contract Price as above specified for ten percent (10%) only, that is, at a total reduction of United States Dollars
                    . 

  

	4.	 Deadweight 

  

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

  

	 	(b)	 In the event that the actual deadweight of the VESSEL as determined in accordance with the Specifications is less than the Guaranteed Deadweight
of the VESSEL, the Contract Price shall be reduced by the sum of United States Dollars                      only for each full metric ton (but
disregarding fractions of one (1) metric tons) more than Five Hundred (500) metric tons deficiency, up to a maximum of One Thousand and Two Hundred (1200) metric tons below the Guaranteed Deadweight. 

 

	 	(c)	 In the event of such deficiency in the actual deadweight of the VESSEL exceeds One Thousand and Two Hundred (1200) metric tons, then the
BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the Contract Price as above provided for metric tons only, that is, at a total
reduction of United States Dollars                     . 

  

					
		  	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. 
  

	6.	 Method of Settlement 

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

 (End of Article) 

  

					
		  	15	  	

 ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS AND INSPECTION 

DURING CONSTRUCTION 
  

	1.	 Approval of Plans and Drawings 

  

	 	(a)	 The BUILDER shall submit to the BUYER two (2) copies each of the plans and drawings to be submitted thereto for its approval at its address as
set forth in Article XVIII hereof. 

 The BUYER shall, within three (3) weeks after the date of
receipt before keel-laying of the VESSEL and within two (2) weeks after the date of receipt after keel-laying of the VESSEL inform the BUILDER of the BUYER’s approval or approval with comments, if any. 

A list of the plans and drawings to be submitted to the BUYER shall be subject to BUILDER’s standard. 

 

	 	(b)	 When and if the Representative (as defined hereinafter) shall have been sent by the BUYER to the SHIPYARD in accordance with Paragraph 2 of this
Article, the BUILDER may, at the BUYER’s consent, submit the remainder, if any, of the plans and drawings in the list, to the Representative for his approval, unless otherwise agreed upon between the parties hereto. The Representative shall,
within two (2) weeks after receipt thereof, inform the BUILDER of his approval or approval with comments, if any. 

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

	 	(c)	 In the event that the BUYER or the Representative shall fail to inform the BUILDER of the BUYER’s approval or approval with comments if any
within the time limit as hereinabove specified, such plans and drawings shall be deemed to have been automatically approved without any comment. 

  

					
		  	16	  	

 The plans and drawings so approved by the BUYER or the Representative shall be
final and any alteration thereof shall be regarded as modifications specified in Article V hereof. 
  

	2.	 Appointment of the BUYER’s Representative 

The BUYER may send to and maintain at the SHIPYARD, at the BUYER’s own cost and expense, no more than five
(5) representatives who shall be duly authorized in writing by the BUYER (hereinafter called the “Representative”) to act on behalf of the BUYER in connection with modifications of the Specifications, approval of the plans and
drawings, attendance to the tests and inspections relating to the VESSEL, its machinery, equipment and outfitting, and any other matters for which he is specifically authorized by the BUYER. 

 

	3.	 Inspection by Representative 

The necessary inspection of the VESSEL, its machinery, equipment and outfitting as more particularly detailed in the
Specifications shall be carried out by the Classification Society, other regulatory bodies and/or an inspection team of the BUILDER throughout the entire period of construction, in order to ensure that the construction of the VESSEL is duly
performed in accordance with this Contract and the Specifications. 
 The Representative shall during the construction until
delivery and acceptance of the VESSEL, have the right to attend such tests and inspections of the VESSEL, its machinery and equipment as are mutually agreed between the BUYER and the BUILDER, however the BUILDER consent to such attendance not to be
unreasonably withheld. 
 The BUILDER shall give a notice to the Representative reasonably in advance for tests, trials and
inspections within the SHIPYARD stating particulars of any tests, trials and inspections which may be attended by the Representative provided that in 

  

					
		  	17	  	

 
exceptional circumstances the manner in which such notice is given may be modified by mutual agreement. Also the BUILDER shall give a notice to the Representative of the date and place of such
tests, trials and inspections including three (3) days prior notice of auxiliary engines test and seven (7) days prior notice of main engine tests. 

For tests, trials and inspections outside the SHIPYARD sufficient advance notice to allow for the Representative to arrange
transportation shall be given. This advance notice should not be less than ten (10) days for tests and inspections that require air travel for attendance. 

Failure of the Representative to be present at such tests, trials and inspections after due notice to him as above provided
shall be deemed to be a waiver of his right to be present. In such case, the Representative shall be obligated to accept the results of such test, on the basis of the BUILDER’s report(s) that the said results have conformed to the requirements
of this Contract and the Specifications, and the BUILDER shall be entitled to proceed with the construction schedule without further awaiting the particular inspection in question. 

In the event that the Representative discovers any construction or material or workmanship which is not deemed to conform to
the requirements of this Contract and/or the Specifications, the Representative shall promptly give the BUILDER a notice in writing as to such non-conformity. 

Upon receipt of such notice from the Representative, and provided there is no disagreement or argument between the BUILDER and
the Representative, the BUILDER shall correct such non-conformity. In all working hours during the construction of the VESSEL until delivery thereof, the Representative shall be given free and ready access to the VESSEL, its engines and accessories,
and to any other place where work is being done, or materials are being processed or stored, in connection with the construction of the VESSEL, including the yards, workshops, stores and offices of the BUILDER, and the premises of subcontractors of
the BUILDER, who are doing work or storing materials in connection with the 

  

					
		  	18	  	

 
VESSEL’s construction. 
 If the Representative fail to notify
the BUILDER promptly within one (1) business days of any such demand for correction with respect to the construction, arrangement or outfit of the VESSEL, its engines or accessories, or any other items or matters in connection therewith, which
the Representative have examined or inspected or attended at the test of under this Contract and the Specifications, the Representative shall be deemed to have approved the same test and/or inspection and the BUILDER shall be entitled to proceed
with the construction of the VESSEL without further awaiting the notice after the said test and/or inspection, only with the attendance and/or approval of the Classification Surveyor as far as required by Classification Society and the BUYER shall
be obliged to accept the results of such test and inspections. 
 In the event any disputes arise between the Representative
and the BUILDER, the BUYER and the BUILDER shall try to settle the dispute by negotiations. Should the dispute not be settled by negotiation either the BUYER or the BUILDER may, with the agreement of the other party refer the matter for resolution
by the Senior Principal Surveyor of the Classification Society as provided in Article I, or failing such agreement refer such dispute to arbitration as per Article XIII. 
  

	4.	 Facilities 

The BUILDER shall furnish the Representative with adequate office space equipped with desks, chairs, tables, cabinets, book
shelves, internal and external telephone extensions, International line for telefax machine, or in the immediate vicinity of the Shipyard and shall make available the use of such other reasonable facilities according to the BUILDER’s practice
as may be necessary to enable them to effectively carry out their duties. The usage cost of external telephone extensions, international line shall be on the BUYER’s account. 

 

	5.	 Liability of the BUILDER 

The Representative shall at all times be deemed to be employees of the BUYER and

  

					
		  	19	  	

 
not of the BUILDER. The BUILDER shall be under no liability whatsoever to the BUYER, or the Representative(s) for personal injuries, including death, suffered during the time when he or they are
on the VESSEL, or within the premises of either the BUILDER or its subcontractors, or are otherwise engaged in and about the construction of the VESSEL, unless, however, such personal injuries including death were caused by a gross negligence of the
BUILDER, or of any of its employees or agents or subcontractors. 
 The BUILDER shall be under no liability whatsoever to
the BUYER, the Representative for damage to, or loss or destruction of property in the People’s Republic of China of the BUYER or of the Representative, unless such damage, loss or destruction were caused by a gross negligence of the BUILDER,
or of any of its employees or agents or subcontractors. 
  

	6.	 Responsibility of the BUYER 

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

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

	7.	 Salaries and Expenses 

All salaries and expenses of the Representative shall be for the BUYER’s account except those mentioned under the
Paragraph 4 in this Article. 
 (End of Article) 

  

					
		  	20	  	

 ARTICLE V - MODIFICATION 

 

	1.	 Modification of Specifications 

It is not the intention of the parties hereto to make alteration or modifications to the Specifications and basically no
modifications shall be applied as the VESSEL is to be built pursuant to the specification mutually agreed by the BUYER and the BUILDER, but 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 reasonable 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, the guaranteed figures 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 changes to the Specifications, if found necessary for introduction of improved production methods or
otherwise, provided that the BUILDER shall first obtain the BUYER’s approval which shall not be unreasonably withheld. 
  

	2.	 Change in Class, etc. 

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

  

					
		  	21	  	

 
shall apply: 
  

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

 

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

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

	3.	 Substitution of Materials 

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

  

					
		  	22	  	

 
regulations and requirements with which the construction of the VESSEL must comply. Any agreement as to such substitution of materials shall be effected in the manner provided in Paragraph 1 of
this Article, and shall likewise, include alterations in the Contract Price and other terms and conditions of this Contract occasioned by or resulting from such substitution. 

(End of Article) 

  

					
		  	23	  	

 ARTICLE VI - TRIALS 

 

	1.	 Notice 

The BUYER shall receive from the BUILDER at least fourteen (14) days prior notice in writing or by facsimile of the
time and place of the trial run of the VESSEL, and the BUYER shall promptly acknowledge receipt of such notice. Such date shall be confirmed by BUILDER at least five (5) days in advance. The BUYER shall have its Representative on board the
VESSEL to witness such trial run. Failure in attendance of the Representative of the BUYER at the trial run of the VESSEL for any reason whatsoever after due notice to the BUYER as above provided, shall be deemed to be a waiver by the BUYER of its
right to have its representative on board the VESSEL at the trial run, and the BUILDER and the class surveyor may conduct the trial run without the representative of the BUYER being present, and in such case the BUYER shall be obliged to accept the
VESSEL on the basis of a certificate of the BUILDER with an approval from the Classification Society certifying that the VESSEL, upon trial run, is found to conform to this Contract and the Specifications. 

 

	2.	 Weather Condition 

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

  

					
		  	24	  	

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

	3.	 How Conducted 

All expenses in connection with the trial run are to be for the account of the BUILDER and the BUILDER shall provide at its
own expense the necessary crew to comply with conditions of safe navigation. The trial run shall be conducted in the manner prescribed in the Specifications, and shall prove fulfilment of the performance requirements for the trial run as set forth
in the Specifications. The course of trial run shall be determined by the BUILDER. 
 Notwithstanding the foregoing,
lubricating oils and greases necessary for the period of construction and the trial run of the VESSEL shall be supplied by the BUYER at the SHIPYARD prior to the time required and fuel oils shall be supplied by the BUILDER. The lubricating oils and
greases supplied by the BUYER shall be in accordance with the Specifications and instruction of the BUILDER. 
  

	4.	 Trial Condition 

  

	 	(a)	 In addition to the supplies provided by the BUYER in accordance with Paragraph 3 of this Article, the BUILDER shall provide the VESSEL with the
required quantity of sea and fresh water and others to bring the VESSEL to the trial condition for the BUILDER’s account. 

  

	 	(b)	 The dry-docking prior to the trial run is not applied. However, the BUILDER may place the VESSEL in drydock prior to the trial run.

  

	5.	 Method of Acceptance or Rejection  

  

	 	(a)	 Upon completion of the trial run, the BUILDER shall give the BUYER a notice by facsimile confirmed in writing of completion of the trial run, as
and if 

  

					
		  	25	  	

	 	 
the BUILDER considers that the results of the trial run indicate conformity of the VESSEL to this Contract and the Specifications. The BUYER shall, within three (3) banking days after
receipt of such notice from the BUILDER, notify the BUILDER by facsimile of its acceptance or rejection of the VESSEL. 

  

	 	(b)	 However, should the results of the trial run indicate that the VESSEL, or any part or equipment thereof, does not conform to the requirements of
this Contract and/or the Specifications, and if there is no disagreement or argument among the BUILDER and the BUYER as to the non-conformity specified in the BUYER’s notice of rejection, then, the BUILDER shall take the necessary steps to
correct such non-conformity. Upon completion of correction of such non-conformity, the BUILDER shall give the BUYER a notice thereof by facsimile confirmed in writing. The BUYER shall, within three (3) banking days after its receipt of such
notice from the BUILDER, notify the BUILDER, of its acceptance or rejection of the VESSEL. 

Notwithstanding the above, if the non-conformities are of minor importance and do not affect Class or, in the reasonable
judgment of the BUYER, the operation of the VESSEL in its intended trade but the BUILDER is unable to rectify the matter within a reasonable time, the BUILDER shall nevertheless have the right to require the BUYER to take delivery of the Vessel, on
condition that the BUILDER shall undertake to remedy the non-conformities for its own cost and expenses as soon as possible, whereupon the BUYER shall accept delivery 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 does not conform to this Contract and/or the Specifications. 

  

	 	(d)	 In the event that the BUYER fails to notify the BUILDER by facsimile confirmed in writing of the acceptance, 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 

  

					
		  	26	  	

	 	 
VESSEL. 

  

	 	(e)	 Any dispute arising between the parties hereto as to the result of any trial run of the VESSEL, or relating to the BUYER’s rejection to take
delivery of the VESSEL, shall be resolved in accordance with Article XIII. The decision of the arbitration shall be final and binding upon the both parties. 

  

	6.	 Effect of Acceptance 

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

  

	7.	 Effect of Rejection 

If the BUYER shall give a notice of rejection of the VESSEL in accordance with the Paragraph 5 of this Article VI, the
BUILDER may within ten (10) days after receipt of such notice of rejection dispute the rejection in whole or in part. In the event the BUILDER gives such a written notice of dispute then: 

 

	 	(a)	 The BUILDER and the BUYER shall negotiate in good faith to settle or adjust the matters so in dispute and, if within ten (10) days the
matter cannot be resolved, then; 

  

	 	(b)	 The BUILDER may elect to submit the matters for arbitration in accordance with the provisions of Article XIII hereof when all proper steps shall
be taken by all concerned with a view to obtaining an award within sixty (60) days after the reference to arbitration. 

  

					
		  	27	  	

	8.	 Disposition of Surplus Consumable Stores 

Lubricating oil and grease, in accordance with the applicable engine specifications, necessary for the operation of the
VESSEL shall be supplied by the BUYER prior to the time of trial run and the BUILDER shall pay the cost of the quantity of lubricating oil and grease consumed during the trial runs and the contaminated lubricating oils, upon delivery of the VESSEL
at the price as evidenced by the invoice issued by each supplier of the same. The consumption of lubricating oil and grease for the trial runs shall be calculated on the basis of the difference between the supplied amount and remaining amount
including the same in pipe lines and in the systems. The contamination of the lubricating oils remained in various working systems for generators, Main Engine and stern tube after the BUILDER’s use shall be determined by the laboratory test of
the oil samples taken from the respective systems. If the laboratory test would prove that the oils can not be further used, the oils shall be deemed as contaminated oils. 

The BUILDER shall supply fuel oil for use during the trials. Any fuel oil, fresh water and other consumable stores purchased
by the BUILDER for the trials and remaining on board the VESSEL after its acceptance by the BUYER shall be taken over by the BUYER at the original purchase price including value added tax if any, if paid by the BUILDER, provided the remained fuel
oil is suitable for further use. Any payment by the BUYER shall be effected upon delivery of the VESSEL. 
 (End of Article) 

  

					
		  	28	  	

 ARTICLE VII - DELIVERY 

 

	1.	 Time and Place 

The VESSEL shall be delivered by the BUILDER to the BUYER at the SHIPYARD or another place mutually agreed on by the BUYER
and the BUILDER which shall not be unreasonably withheld 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”. 
  

	2.	 Notice 

The BUILDER shall give an approximate notice to the BUYER of the expected date of delivery on or before thirty
(30) days and twenty (20) days prior to the scheduled delivery date. A preliminary notice shall be given to the BUYER at least two (2) months prior to the scheduled delivery date. 

 

	3.	 When and How Effected 

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

  

					
		  	29	  	

	4.	 Documents to be Delivered to the BUYER 

Acceptance of the VESSEL by the BUYER shall be conditioned upon the BUILDER’s delivery of the following documents to
the BUYER, which shall accompany the PROTOCOL OF DELIVERY AND ACCEPTANCE: 

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

 

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

  

	 	(c)	 PROTOCOL OF STORES OF CONSUMABLE NATURE referred to under Paragraph 7 of Article VI hereof, including the original purchase price thereof.

  

	 	(d)	 ALL CERTIFICATES including three (3) originals of the BUILDER’s CERTIFICATE (duly notarially attested if necessary) required to be
furnished upon delivery of the VESSEL pursuant to this Contract and the Specifications. It is agreed that if, through no fault on the part of the BUILDER, the classification certificate and/or other certificates are not available at the time of
delivery of the VESSEL, provisional certificates shall be accepted by the BUYER, provided that the BUILDER shall furnish the BUYER with the formal certificates as promptly as possible after such formal certificates have been issued.

  

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

  

					
		  	30	  	

	 	 
Specifications. 

  

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

 

	 	(h)	 BILL OF SALE in three (3) originals, notarised by the BUILDER and legalised by the BUILDER and the Buyer’s cost, if required for the
registration of the Vessel. 

  

	5.	 Tender of the VESSEL 

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

	6.	 Title and Risk 

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

 

	7.	 Removal of the VESSEL 

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

(End of Article) 

  

					
		  	31	  	

 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, other hostilities or preparations thereof; blockade; revolution, insurrections, mobilization, civil war,
civil commotion or riots; sabotages, strikes, lockout or other labour disturbances labour shortage; plague or other epidemics; quarantines; flood, typhoons, hurricanes, storms or other weather conditions not included in normal planning; earthquakes;
tidal waves; landslides; fires, explosions, collisions or strandings; embargoes; delays or failure in transportation; shortage of materials, machinery or equipment; 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 arc required;
destruction of or damage to the SHIPYARD or works of the BUILDER, its subcontractors or suppliers, or of or to the VESSEL or any part thereof, by any causes herein described; delays in the BUILDER’s other commitments resulting from any causes
herein described which in turn delay the construction of the VESSEL or the BUILDER’s performance under this Contract; other causes or accidents beyond control of the BUILDER, its subcontractors or supplies of the nature whether or not indicated
by the foregoing words; all the foregoing irrespective of whether or not these events could be foreseen at the day of signing this Contract; then and in any such case, the Delivery Date shall be postponed for a period of time which shall not exceed
the total accumulated time of all such delays. 

  

					
		  	32	  	

	2.	 Notice of Delays 

As soon as practically possible, but not later than within ten (10) days from the date of occurrence of any cause of
Delay, on account of which the BUILDER claims that it is entitled under this Contract to a postponement of the Delivery Date, the BUILDER shall notify the BUYER in writing or by facsimile together with supporting evidence of the date such cause of
delay occurred. Likewise, within ten (10) days after the date of ending of such cause of Delay, the BUILDER shall notify the BUYER in writing or by facsimile of the date such cause of delay ended. The BUILDER shall also notify the BUYER of the
period, by which the Delivery Date is postponed by reason of such cause of delay, with all reasonable despatch after it has been determined. Failure of the BUYER to object to the BUILDER’s claim for postponement of the Delivery Date within ten
(10) days after receipt by the BUYER of such notice of claim shall be deemed to be a waiver by the BUYER of its right to object such postponement of the Delivery Date. 
  

	3.	 Definition of Permissible Delays 

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

	4.	 Right to Rescind for Excessive Delay 

If the total accumulated time of all delays on account of causes specified in Paragraph 1 of this Article, excluding delays
of a nature 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, the BUYER may rescind this Contract in accordance with the provisions of
Article X hereof. The BUILDER 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 

  

					
		  	33	  	

 election, in which case the BUYER shall, within twenty (20) days after
such demand is received by the BUYER, either notify the BUILDER of its intention to rescind this Contract, or consent to a postponement of the Delivery Date to a specific future date; it being understood and agreed by the parties hereto that, if any
further delay occurs on account of causes justifying rescission as specified in this Article, the BUYER shall have the same right of rescission upon the same terms as hereinabove provided 

(End of Article) 

  

					
		  	34	  	

 ARTICLE IX - WARRANTY OF QUALITY 

 

	1.	 Guarantee of Material, Workmanship 

The BUILDER, for a period of
                     months from the date of delivery of the VESSEL to the BUYER, shall guarantee the VESSEL, its hull and machinery and all
parts and equipment thereof including machinery appurtenances that are manufactured or furnished or supplied by the BUILDER and/or its sub-contractors under this Contract against all defects which are due to defective material, and/or poor
workmanship of the BUILDER and/or its sub-contractors provided that such defects have not been caused by perils of the sea, rivers or navigation, or by normal wear and tear, fire, accident, incompetence, mismanagement, negligence or wilful neglect,
or by alteration or addition by the BUYER. 
 The provisions set forth under this Article as to the Guarantee of the
BUILDER shall not apply to any articles supplied by the BUYER. 
  

	2.	 Notice of Defects 

The BUYER shall notify 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 of the defect and the extent of the damage caused thereby. The BUILDER shall have no obligation for any defects
discovered prior to the expiry date of the said                      months period, unless notice of such defects is received by the BUILDER not
later than seven (7) days after such expiry date. 
  

	3.	 Remedy of Defects 

  

	 	(a)	 The BUILDER shall remedy, at its expense, any defect against which the VESSEL or any part of equipment thereof is guaranteed under this Article
by repairing or replacing the defective parts in the SHIPYARD. 

  

					
		  	35	  	

	 	(b)	 Such repairs or replacement will be made at the SHIPYARD unless the VESSEL cannot be practically brought there. However, if it is impractical for
the BUYER to bring the VESSEL to the SHIPYARD and if it is likewise impractical for the BUILDER to forward replacements for the defective parts so as to avoid impairment and delay to the VESSEL’s operation or working, then, in such event, the
BUYER may cause the necessary repairs or replacements to be made at any shipyard or works other than the SHIPYARD at the discretion of the BUYER, provided, however, that the BUYER shall give the BUILDER notice in writing or facsimile confirmed in
writing of the time and place such repairs will be made, if the VESSEL is not thereby delayed or her operation or working is not thereby impaired, the BUILDER shall have the right to verify by its own representative the nature and extent of the
defects complained of. The BUILDER, in such cases, shall promptly advise the BUYER by facsimile, after such impartial verification has been completed, of its acceptance or rejection of the defect as one that is subject to the Guarantee herein
provided. Upon receipt by the BUYER of the BUILDER’s facsimile acceptance of the defect as one justifying remedy under this Article, the BUYER may cause necessary repairs or replacements to be made and the BUILDER shall pay to the BUYER for
such repairs or replacements a sum equal to the same cost of making such repairs and/or replacements in the SHIPYARD in United States Dollars within thirty (30) days after receipt by the BUILDER from the BUYER of repair invoices.

  

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

  

					
		  	36	  	

	 	(d)	 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. 

  

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

 

	4.	 Extent of BUILDER’s Liability 

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

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

  

					
		  	37	  	

 Likewise, the BUILDER shall not be liable for defects in the VESSEL, or any
part or equipment thereof, which are due to repairs, which were made by others than the BUILDER at the direction of the BUYER. Should the facsimile advice of defects in guarantee period be noticed by the BUYER to the BUILDER, notwithstanding the
nature of such defects being in compliance with the Specifications described in Paragraph 1 of the Article as guarantee item or not, the BUILDER shall take active measures to assist the BUYER to remedy the defects. 

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

(End of Article) 

  

					
		  	38	  	

 ARTICLE X - RESCISSION OF THE CONTRACT 

 

	1.	 Notice 

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

	2.	 Refund by the BUILDER 

In case the BUILDER receives the notice stipulated in Paragraph 1 of this Article, the BUILDER shall refund to the BUYER the
full amount of all sums paid by the BUYER to the BUILDER on account of the VESSEL within Seven (7) days after the date of the notice as provided in paragraph 1 of this Article hereof together with interest if any and with, if appropriate, an
amount equal to the original purchase prices of the BUYER’s supplied material as evidenced by the invoice issued by the each supplier of the same including lubricating oil, grease and fuel oil, if any, which are purchased by the BUYER to the
VESSEL, except those items which are able to return to the BUYER as they are, unless the BUILDER proceeds to the arbitration under the provisions of Article XIII hereof. 

In such event, the BUILDER shall pay the BUYER interest at the rate of six percent (6%) per annum on the amount
required herein to be refunded to the BUYER, computed from the respective dates on which such sums were paid by the BUYER to the BUILDER to the date of remittance by telegraphic transfer of such refund with interest to the BUYER by the BUILDER,
provided, however, that if the said rescission by the BUYER is made under the provisions of Paragraph 4 of Article VIII hereof, then in such event the BUILDER shall not be required to pay the BUYER any interest. 

  

					
		  	39	  	

	3.	 Discharge of Obligations 

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

 

	4.	 Refundment Guarantee 

As a condition precedent to the payment of the first instalment and as a security for refund of instalments paid prior to
delivery of the VESSEL, the BUILDER shall provide the BUYER before the receipt by the BUILDER of the first instalment with a Refundment Guarantee issued in the form as per Annex A and furnished by the bank nominated by the BUILDER and accepted by
the BUYER prior to signing this Contract, in favour of the BUYER. 
 If the BUILDER is required to provide a substitute
Refundment Guarantee as stipulated in Sub-clause (3) of Clause 5 of Article XI, the BUYER is entitled to withhold the instalment which become due during this period until the BUILDER provide the substitute Refundment Guarantee. 

All the expenses in issuing and maintaining the letter of guarantee described in this Paragraph shall be borne by the
BUILDER. 
 (End of Article) 

  

					
		  	40	  	

 ARTICLE XI – BUYER AND BUILDER’S DEFAULT 

 

	1.	 Definition of the BUYER’s Default  

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

  

	 	(a)	 If the BUYER fails to pay any of the First, Second, Third and Forth Instalments to the BUILDER after such Instalment becomes due and payable
under the provision of Article II hereof; or 

  

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

  

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

  

	 	(d)	 If BUYER or guarantee company who issue Performance Guarantee in the form as per Annex B (hereinafter called “Guarantor”) becomes
bankrupt or insolvent under any applicable laws, or if an administrator, receiver or similar officer is appointed for or in relation to BUYER or Guarantor or all or any of its assets, or if BUYER or Guarantor enters into any special arrangement or
composition with its creditors with a view to restructuring its debts or liabilities, or if any moratorium is applied for or declared in respect of BUYER or Guarantor, or if BUYER or Guarantor seeks protection from any of its creditors; or if the
BUYER or the Guarantor is dissolved, liquidated, rehabilitated or ceases to be registered as a company. 

  

	2.	 Interest and Charge 

If the BUYER is in default of payment as to any Instalment as provided in Paragraph 1 (a) and (b) of this Article,
the BUYER shall pay interest on such 

  

					
		  	41	  	

 Instalments at the rate of six percent (6%) per annum from the due date
thereof to the date of payment to the BUILDER of the full amount including interest; in case the BUYER shall fail to take delivery of the VESSEL as provided in Paragraph 1 (c) of this Article, the BUYER shall be deemed to be in default of
payment of the Fourth Instalment and shall pay interest thereon at the same rate as aforesaid from and including the day on which the VESSEL is tendered for delivery by the BUILDER. 

In any event of default by the BUYER, the BUYER shall also pay all charges and expenses incurred by the BUILDER which are
caused by such default. 
 The payment of interest shall be made simultaneously with the payment of the principal by
telegraphic transfer in the manner as provided for in Paragraph 5, Article II of this Contract. 
  

	3.	 Effect of Default 

  

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

  

	 	(b)	 If any such default by the BUYER continues for a period of fifteen (15) banking days, the BUILDER may, at its option, rescind this Contract
by giving notice of such effect to the BUYER by facsimile confirmed in writing. Upon receipt by the BUYER of such notice of rescission, this Contract shall forthwith become null and void, and any lien, interest or property right that the BUYER may
have in and to the VESSEL or to any part or equipment thereof and to any material or part acquired for construction of the VESSEL but not yet utilized for such purpose, shall forthwith cease, and the VESSEL and all parts and equipment thereof shall
become the sole property of the BUILDER. 

 In the event of such rescission of this Contract, the
BUILDER shall be entitled to retain any Instalment or Instalments theretofore paid by the BUYER to the 

  

					
		  	42	  	

 
BUILDER on account of this Contract. 
  

	4.	 Sale of the VESSEL 

  

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

 

	 	(b)	 In the event of the sale of the VESSEL in its completed state, the proceeds of the sale received by the BUILDER shall be applied firstly to
payment of all expenses attending such sale and otherwise incurred by the BUILDER as a result of the BUYER’s default, and then to payment of all unpaid Instalments of the Contract Price 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. 

  

	 	(c)	 In the event of sale of the VESSEL in its incompleted state, the proceeds of sale received by the BUILDER shall be applied firstly to all
expenses attending such sale and otherwise incurred by the BUILDER as a result of the BUYER’s default, and then to payment of all costs of construction of the VESSEL less the Instalments so retained by the BUILDER and compensation to the
BUILDER for 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 amount to which such proceeds are to be applied as aforesaid,
the BUILDER shall promptly pay the excess to the BUYER without interest, provided, however, that the amount of such payment to the BUYER shall in no event exceed the total amount of Instalments already paid by the BUYER and the cost of the
BUYER’s Supplies, if any. 

 If the proceeds of sale are insufficient to pay such total amounts
payable as 

  

					
		  	43	  	

 
aforesaid, the BUYER shall promptly pay the deficiency to the BUILDER upon request. 
  

	5.	 Definition of the BUILDER’s Default 

The BUILDER shall be deemed to be in default under this Contract in the following cases: 

 

	 	(1)	 If BUILDER becomes bankrupt or insolvent under any applicable laws, or if an administrator, receiver or similar officer is appointed for or in
relation to BUILDER or all or any of its assets, or if BUILDER enters into any special arrangement or composition with its creditors with a view to restructuring its debts or liabilities, or if any moratorium is applied for or declared in respect of
BUILDER, or if BUILDER seeks protection from any of its creditors; or if the BUILDER is dissolved, liquidated, rehabilitated or ceases to be registered as a company in the People’s Republic of China. 

 

	 	(2)	 If the Refundment Guarantee is not issued within forty (40) days from the later of which (a) the date of this CONTRACT and
(b) receipt the necessary information for issue Refundment Guarantee from the BUYER. 

  

	 	(3)	 If the BUILDER fails to provide a substitute Refundment Guarantee issued by a first class Chinese bank within forty (40) days upon request
by the BUYER in writing, in case the bank who issue Refundment Guarantee in the form as per Annex A (hereinafter called “RG BANK”) is in the following conditions: if becomes bankrupt or insolvent under any applicable laws, or if an
administrator, receiver or similar officer is appointed for or in relation to RG BANK or all or any of its assets, or if RG BANK enters into any special arrangement or composition with its creditors with a view to restructuring its debts or
liabilities, or if any moratorium is applied for or declared in respect of RG BANK, or if RG BANK seeks protection from any of its creditors; or if the RG BANK is dissolved, liquidated, rehabilitated or ceases to be registered as a company in the
People’s Republic of China. 

  

					
		  	44	  	

 In such event, the BUYER may rescind this Contract at any time thereafter and
the provisions of Article X shall apply. 
 (End of Article) 

  

					
		  	45	  	

 ARTICLE XII - INSURANCE 

 

	1.	 Extent of Insurance Coverage 

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

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

The policy referred to hereinabove shall be taken out in the name of the BUILDER and all proceeds under such policy shall be
payable to the BUILDER. 
 One copy of the BUILDER’s risk insurance shall be delivered to the BUYER, if required by
the BUYER. 
 Notwithstanding anything to the contrary in this Contract, if the BUILDER has made valid tender of delivery
of the VESSEL, the cost of any insurance placed on the VESSEL from the time of valid tender, as defined in Paragraph 5 Article VII, until the time of actual delivery thereof shall be for the account of the BUYER. 

  

					
		  	46	  	

	2.	 Application of Recovered Amount 

  

	 	(a)	 Partial Loss: 

In the event the VESSEL shall be damaged by any insured cause whatsoever prior to acceptance thereof by the BUYER and in
the further event that such damage shall not constitute an actual or a constructive total loss of the VESSEL, the BUILDER shall apply the amount recovered under the insurance policy referred to in Paragraph 1 of this Article to the repair of such
damage satisfactory to the Classification Society and also to the satisfaction of the Representative without additional expense to the BUYER, and the BUYER shall accept the VESSEL under this Contract if completed in accordance with this Contract and
the Specifications. 
  

	 	(b)	 Total Loss: 

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

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

  

	 	ii)	 Refund immediately to the BUYER the amount of all instalments paid to the BUILDER under this Contract 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 

  

					
		  	47	  	

 
provisions of Sub-paragraph b) ii) as above shall be applied. 
  

	3.	 Termination of the BUILDER’s obligation to insure 

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

  

					
		  	48	  	

 ARTICLE XIII - DISPUTES AND ARBITRATION 

 

	1.	 Proceedings 

Any dispute arising under or by virtue of this Contract shall be referred to arbitration in London and such arbitration
shall take place according to English Law. The award of the arbitrator shall be final and binding upon parties hereto. 

The arbitration shall be referred to a single arbitrator to be appointed by the parties hereto. 

If the parties cannot agree upon the appointment of the single arbitrator within four (4) weeks after one of the
parties has given notice to the other party notifying that the other party to refer the dispute to arbitration, the dispute shall be settled by three arbitrators, each party appointing one arbitrator, the third being appointed by the London Maritime
Arbitrators Association. If either of the appointed arbitrators refuses or is incapable of acting, the party who appointed him shall appoint a new arbitrator in his place. 

If one party fails to appoint an arbitrator – either originally or by way of substitution – for two (2) weeks
after the other party having appointed its arbitrator, has served the party making default with notice to make the appointment, the London Maritime Arbitrators Association shall, after application from the party having appointed its arbitrator, also
appoint an arbitrator on behalf of the party making default. The award of the arbitration made by the sole arbitrator or by the majority of the three arbitrators as the case may be shall be final, conclusive and binding upon the parties hereto. 

Notwithstanding the preceding provisions of this Paragraph, it is agreed that in the event of any dispute or difference of
opinion arising in regard to the construction of the VESSEL, its machinery or equipment, or concerning the quality of materials or workmanship thereof or thereon during the construction and the warranty period, such dispute will be referred to the
Classification 

  

					
		  	49	  	

 
Society upon mutual agreement of the parties hereto as far as the Classification Society agrees to determine such dispute. The decision of the Classification Society shall be final and binding
upon the parties hereto. 
  

	2.	 Notice of Award 

The award shall immediately be given to the parties hereto in writing or by facsimile. 

 

	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 

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

 

	5.	 Alteration of Delivery of the VESSEL 

In the event of the arbitration of any dispute or differences arising or occurring prior to delivery to, or acceptance by
the BUYER of the VESSEL, the award by the arbitrator shall include a finding as to whether or not the contractual delivery date of the VESSEL should, as a result of such dispute, be in any altered thereby. 

(End of Article) 

  

					
		  	50	  	

 ARTICLE XIV - RIGHTS 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, such
consent not to be unreasonably withheld. The 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 case of an assignment, the assignor 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) 

  

					
		  	51	  	

 ARTICLE XV - TAXES AND DUTIES 

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

(End of Article) 

  

					
		  	52	  	

 ARTICLE XVI - PATENTS, TRADEMARKS, COPYRIGHTS, ETC. 

 

	1.	 Patents, Trademarks and Copyrights 

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

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

Nothing contained herein shall be construed as transferring any patent or trademark rights or copyright in equipment covered
by this Contract, and all such rights are hereby expressly reserved to the true and lawful owners thereof. 
 The
BUILDER’s warranty herein does not extend to the BUYER’s Supplies. 
  

	2.	 General Plans, Specifications and Working Drawings 

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

(End of Article) 

  

					
		  	53	  	

 ARTICLE XVII - BUYER’s SUPPLIES 

 

	1.	 Responsibility of the BUYER 

  

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

  

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

  

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

  

	 	(d)	 Should the BUYER fail to deliver any of the BUYER’s Supplies within the time designated by the BUILDER, the Delivery Date shall be
automatically 

  

					
		  	54	  	

	 	 
extended for a period of such delay in delivery, provided that such delay in delivery shall affect delivery of the VESSEL. In such event, the BUYER shall be responsible and pay to the BUILDER for
all losses and damages incurred by the BUILDER by reason of such delay in delivery of the BUYER’s Supplies and such payment shall be made upon delivery of the VESSEL. 

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

  

	2.	 Responsibility of the BUILDER 

The BUILDER shall be responsible for storing and handling with reasonable care of the BUYER’s Supplies after delivery
thereof at the SHIPYARD, and shall at its own cost and expense, install them in or on the VESSEL, unless otherwise provided herein or agreed by the parties hereto, provided, always, that the BUILDER shall not be responsible for quality, efficiency
and/or performance of any of the BUYER’s Supplies and is under no obligation with respect to guarantee of such equipment against any defects caused by poor quality, performance and /or efficiency of the BUYER’s supplies. 

(End of Article) 

  

					
		  	55	  	

 ARTICLE XVIII - NOTICE AND CORRESPONDENCE 

 

	1.	 Address 

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

 

					
		 	To the BUYER:	  	

  

					
			
		 	To the BUILDER:	  	 NANTONG COSCO KHI SHIP ENGINEERING CO., LTD.

 
 117 Linjiang Road, Nantong, Jiangsu

 
 The People’s Republic of China

  

	2.	 Language 

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

(End of Article) 

  

					
		  	56	  	

 ARTICLE XIX - EFFECTIVE DATE OF CONTRACT 

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

(End of Article) 

  

					
		  	57	  	

 ARTICLE XX - INTERPRETATION 

 

	1.	 Laws Applicable 

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

	2.	 Discrepancies 

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

	3.	 Entire Agreement 

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

	4.	 Other 

All the dates and times shown in this Contract shall be construed as based on the China Standard time. 

(End of Article) 

  

					
		  	58	  	

 ARTICLE XXI - CONFIDENTIALITY 

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

 (End of Article) 

  

					
		  	59	  	

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

					
	BUYER:	 		 	BUILDER:
			
		 		 	NANTONG COSCO KHI SHIP
			
		 		 	 ENGINEERING CO., LTD.

			
	   
	 		 	   

			
	 Name     : 
	 		 	 Name     : 

			
	 Title       : 
	 		 	 Title       : 

  

					
		  	60	  	

 EXHIBIT A 

REFUNDMENT GUARANTEE 
 To: 

Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands 

Date: (Date) 
 Re: Our irrevocable Refundment Guarantee No.
XXXXX 
 At the request of NANTONG COSCO KHI SHIP ENGINEERING CO., LTD., a company having its registered office at No. 117 Linjiang
Road, Nantong, Jiangsu, the People’s Republic of China (hereinafter called the “Builder”) and in consideration of your agreement to pay to the Builder the instalments before delivery of the vessel under and in accordance with the
shipbuilding contract (hereinafter as amended, supplemented or novated called the “Contract”) concluded by and between you and the Builder dated
                     for the construction of one a 61,000 DWT Type Motor Bulk Carrier having Builder’s Hull No.
             (hereinafter called the “Vessel”), we, The Export-Import Bank of China, Jiangsu Branch, hereby issue our irrevocable Letter of Guarantee number XXXXXX in favour of
                    , at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands (hereinafter called the “Buyer”),
and we hereby irrevocably guarantee, as primary obligor and not merely as surety the repayment, to you by the Builder of an amount of up to but not exceeding but not exceeding United States Dollars
                    , representing the first instalment of the contract price for United States Dollars
                    , the second instalment of the contract price for United States Dollars
                    , the third instalment of the contract price for United States Dollars
                     and the forth instalment of the contract price for United States Dollars
                     to be paid to the Builder under the Contract prior to the delivery of the Vessel, if and when the same or any part thereof
becomes repayable to you from the 

  

					
		  	61	  	

 
Builder in accordance with the terms (including but not limited to Article X or Article XII2(b)) of the Contract. Should the Builder fail to make such repayment, we shall pay to you forthwith,
upon your first demand in United States Dollars by telegraphic transfer, without any withholding taxes or deductions, within seven (7) banking days after our receipt of the Buyer’s first written demand through authenticated SWIFT message,
together with interest at the rate of zero percent (0%) in the case of the Contract being cancelled by reason of permissible delays or total loss, and at six percent (6%) per annum pro rata in other cases, calculated from the date following the
date of receipt of the said instalment by the Builder to the date of remittance by telegraphic transfer of such refund to the Buyer. Should any withholding tax or deduction be applicable we hereby undertake to gross up the amount payable under this
Letter of Guarantee so that you will receive the amount you would have received had it not been for such withholding tax or deduction. 

It is a condition for any claim and the payment of an Instalment under this Letter of Guarantee that the said Instalment must have first
been paid by you to the account number                     . 

In case any refund is made to you by the Builder or by us under this Letter of Guarantee, our liability hereunder shall be automatically
reduced by the amount of such refund. 
 This Letter of Guarantee is a continuing obligation and shall remain valid notwithstanding any
supplement, amendment, changes or modification of the Contract, specifications or plans including without limitation the delivery date or any instalment date. Furthermore our liability under this Letter of Guarantee shall be unaffected by any
obligation of the Builder becoming or being void or unenforceable by defect in or want of its powers or by the fact that the Builder applies for or consents to the appointment of a receiver, trustee or liquidator, is adjudicated insolvent, applies
to the courts for protection from its creditors, whether as part of a rehabilitation procedure or otherwise, file a voluntary petition in bankruptcy or take advantage of any procedures of similar effect. 

Notwithstanding the provisions hereinabove, in the event that before or within seven (7) banking days of the date of your demand to us
referred to above we receive notification from you or the Builder stating that there is any dispute between you and the Builder in relation to: (1) whether the Builder shall be liable to repay the instalment or instalments

  

					
		  	62	  	

 
paid by you and (2) consequently whether you shall have the right to demand payment from us, and such dispute is submitted either by the Builder or by you for arbitration in accordance with
Article XIII of the Contract, we shall be entitled to withhold and defer payment until the arbitration award is published. We shall not be obligated to make any payment to you unless the arbitration award orders the Builder to make repayment. We
shall immediately upon receipt of your demand for payment of the sum and a copy of the final award in the Arbitration refund to you to the extent the arbitration award orders but not exceeding the aggregate amount of this Letter of Guarantee plus
the interest described above. 
 This Letter of Guarantee shall become effective from the date of its issuance. The amount under this
Letter of Guarantee shall in no event exceed the total amount actually paid by you to the Builder, together with interest calculated, as described above at zero percent (0%) or six percent (6%) per annum pro rata, as the case may be for the
period commencing with the date of receipt by the Builder of the instalments to the date of repayment thereof. 
 The expiry date of this Letter of
Guarantee shall be the earliest of: 
 (i) The date on which the Vessel has been delivered to and accepted by the Buyer in accordance with
the terms of the Contract, evidenced by a protocol of delivery and acceptance delivered to us, or 
 (ii) The date on which refund has
been made by the Builder or ourselves and received by the Buyer or the assignee entitled to receive it; or 
  

	
	 (iii)                     ;
         
  

however, in the event that we have been notified of an arbitration between you and Builder as set out above before the expiry date, then the
validity of this Letter of Guarantee shall be automatically further extended until payment is made either by the Builder or us under this Letter of Guarantee in accordance with the published final and non-appealable arbitration award, which orders
the Builder to make a payment. Should the published final and non-appealable arbitration award state that no payment whatsoever is due to the Buyer then this Letter of Guarantee shall expire within thirtieth (30th) calendar day after the
publication of the award. Upon expiry date, this Letter of Guarantee shall become null and void whether it will actually be returned to our counter or not. 

  

					
		  	63	  	

 The benefit of this Letter of Guarantee is assignable to the bank of the Buyer or financial
institution providing finance to assist in the construction of the vessel or any other company in the same group as you. Written notice by the Buyer of any such assignment should be given to us via SWIFT and we agree to acknowledge such notice via
SWIFT. However, the right to make a claim under this Letter of Guarantee shall remain with the Buyer and cannot be assigned. 
 We hereby
represent and warrant that we have the corporate power and authority to issue and perform this Letter of Guarantee and we also shall take all steps necessary to maintain the validity and enforceability of this Letter of Guarantee including but not
limited to the completion of registration of this Letter of Guarantee with State Administration of Foreign Exchange (‘SAFE’) as required under the laws of the People’s Republic of China. We undertake to confirm to you of such
registration by SWIFT within sixty (60) days from the date of this Letter of Guarantee. We further confirm that we have obtained the necessary authorization and approval from the SAFE and from all other relevant governmental agencies of the
People’s Republic of China to issue this Letter of Guarantee and to transfer funds out of the People’s Republic of China to you and we will take all necessary steps to maintain all above authorizations throughout the validity period of
this Letter of Guarantee. 
 This Letter of Guarantee shall be governed by and construed in accordance with the laws of England and any
dispute arising out of or in connection with this Letter of Guarantee shall be referred to arbitration in London. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when
the arbitration proceedings are commenced. 
 Very truly yours, 

For and on behalf of 
  

 

                          
  (Name of the Signer) 

  

					
		  	64	  	

 EXHIBIT B 

PERFORMANCE GUARANTEE 
 To: NANTONG
COSCO KHI SHIP ENGINEERING CO., LTD. 
 No. 117 Linjiang Road, Nantong, Jiangsu, the People’s Republic of China 

In consideration of your entering into a Shipbuilding Contract for a 61,000-DWT type motor bulk carrier identified as your Hull No.
             dated      day of                     , the undersigned
corporation (hereinafter called the “GUARANTOR”), hereby as primary obligor and not merely as a surety, unconditionally and irrevocably guarantee the due and punctual performance by
                     (hereinafter called the “Buyer”) of all its obligations to you under the aforesaid Shipbuilding Contract and any
supplement, amendment, change or modification hereafter made thereto (hereinafter referred to as “the Shipbuilding Contract”). 

If and whenever the BUYER shall be in default in the payment of any amount due and payable under the terms of the Shipbuilding Contract, the
GUARANTOR shall, forthwith upon receipt of notice to that effect from you which notice shall be conclusive evidence of the amount due from the GUARANTOR for all purpose of this Guarantee, immediately pay to you in the manner prescribed in the
Shipbuilding Contract the money in regard to which such default has been made. If and whenever the BUYER shall be otherwise in default, the GUARANTOR shall, forthwith upon receipt of notice to that effect from you which notice shall be also
conclusive evidence of the BUYER’s default as such, perform the BUYER’s obligation in its place in the manner prescribed in this Shipbuilding Contract. 

This Guarantee is subject to the non-exclusive jurisdiction of the English courts. The construction and interpretation of this Guarantee
shall be governed by English law. 
 For and on behalf of 
  

 
  

Name: 
 Title: 

  

					
		  	65EX-10.12

 Exhibit 10.12 

Shipbuilding Contract For Construction of One 82,000 MT DWT Kamsarmax Bulk Carrier (Hull No.
            ) 
 SHIPBUILDING CONTRACT 

(CONTRACT NO.:             ) 

FOR CONSTRUCTION OF 
 ONE 82,000 MT DWT
KAMSARMAX BULK CARRIER 
 (HULL NO.             ) 

BETWEEN 
 [SUBSIDIARY] 

AS BUYER 
 AND 

JIANGSU TIANYUAN MARINE IMPORT & EXPORT CO., LTD. 

and 
 JIANGSU NEW YANGZI SHIPBUILDING
CO., LTD. 
 and 
 JIANGSU YANGZIJIANG
SHIPBUILDING CO., LTD. 
 JOINTLY AND SEVERALLY AS SELLER 

DATE:                      

 

 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

 CONTENTS 
  

			
	 SHIPBUILDING CONTRACT
	  	4
		
	 ARTICLE I - DESCRIPTION AND CLASS
	  	5
		
	 1.      DESCRIPTION
	  	5
	 2.      CLASS AND RULES
	  	5
	 3.      PRINCIPAL PARTICULARS AND DIMENSIONS OF THE VESSEL
	  	5
	 4.      GUARANTEED SPEED
	  	6
	 5.      GUARANTEED FUEL CONSUMPTION
	  	6
	 6.      GUARANTEED DEADWEIGHT
	  	6
	 7.      STANDARD OF CONSTRUCTION
	  	6
	 8.      SUBCONTRACTING
	  	7
	 9.      REGISTRATION
	  	7
	 10.    DRYDOCKING
	  	7
		
	 ARTICLE II - CONTRACT PRICE & TERMS OF PAYMENT 
	  	8
		
	 1.      CONTRACT PRICE
	  	8
	 2.      CURRENCY
	  	8
	 3.      TERMS OF PAYMENT
	  	8
	 4.      METHOD OF PAYMENT
	  	8
	 5.      PREPAYMENT
	  	9
	 6.      SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY
	  	9
	 7.      REFUNDS
	  	9
		
	 ARTICLE Ill - ADJUSTMENT OF THE CONTRACT PRICE
	  	11
		
	 1.      DELIVERY
	  	11
	 2.      INSUFFICIENT SPEED
	  	12
	 3.      EXCESSIVE FUEL CONSUMPTION
	  	12
	 4.      DEADWEIGHT
	  	13
	 5.      EFFECT OF RESCISSION
	  	13
	 6.      REFUND GUARANTEE
	  	13
		
	 ARTICLE IV - SUPERVISION AND INSPECTION
	  	15
		
	 1.      APPOINTMENT OF THE BUYER’S SUPERVISORS
	  	15
	 2.      APPOINTMENT OF BUILDER’S PROJECT TEAM
	  	15
	 3.      APPROVAL OF PLANS AND DRAWINGS
	  	15
	 4.      SUPERVISION AND INSPECTION BY THE SUPERVISORS
	  	16
	 5.      LIABILITY OF THE SELLER
	  	17
	 6.      SALARIES AND EXPENSES
	  	18
	 7.      REPORT OF PROGRESS
	  	18
	 8.      REPLACEMENT OF SUPERVISORS
	  	18
	 9.      RESPONSIBILITY OF THE SELLER
	  	18
		
	 ARTICLE V - MODIFICATION, CHANGES AND EXTRAS
	  	19
		
	 1.      HOW EFFECTED
	  	19
	 2.      CHANGES IN RULES AND REGULATIONS, ETC.
	  	19
	 3.      SUBSTITUTION OF MATERIALS AND/OR EQUIPMENT
	  	20
	 4.      BUYER’S SUPPLIED ITEMS
	  	21
		
	 ARTICLE VI - TRIALS
	  	22
		
	 1.      NOTICE
	  	22
	 2.      HOW CONDUCTED
	  	22
	 3.      TRIAL LOAD DRAFT
	  	23
	 4.      METHOD OF ACCEPTANCE OR REJECTION
	  	23
	 5.      DISPOSITION OF SURPLUS CONSUMABLE STORES
	  	24
	 6.      EFFECT OF ACCEPTANCE
	  	24

  

					
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

					
		
	 ARTICLE VII - DELIVERY
	  	 	25	  
		
	 1.      TIME AND PLACE
	  	 	25	  
	 2.      WHEN AND HOW EFFECTED
	  	 	25	  
	 3.      DOCUMENTS TO BE DELIVERED TO THE BUYER
	  	 	25	  
	 4.      TITLE AND RISK
	  	 	26	  
	 5.      REMOVAL OF VESSEL
	  	 	27	  
	 6.      TENDER OF THE VESSEL
	  	 	27	  
	 7.      SHIP’S MODEL
	  	 	27	  
		
	 ARTICLE VIII - DELAYS & EXTENSION OF TIME FOR DELIVERY
	  	 	28	  
		
	 1.      CAUSE OF DELAY
	  	 	28	  
	 2.      NOTICE OF DELAY
	  	 	28	  
	 3.      RIGHT TO CANCEL FOR EXCESSIVE DELAY
	  	 	28	  
	 4.      DEFINITION OF PERMISSIBLE DELAY
	  	 	29	  
		
	 ARTICLE IX - WARRANTY OF QUALITY
	  	 	30	  
		
	 1.      GUARANTEE OF MATERIAL AND WORKMANSHIP
	  	 	30	  
	 2.      NOTICE OF DEFECTS
	  	 	30	  
	 3.      REMEDY OF DEFECTS
	  	 	30	  
	 4.      EXTENT OF THE SELLER’S LIABILITY
	  	 	31	  
	 5.      GUARANTEE ENGINEER
	  	 	32	  
		
	 ARTICLE X - CANCELLATION, REJECTION AND RESCISSION BY THE BUYER
	  	 	34	  
		
	 ARTICLE XI - BUYER’S DEFAULT
	  	 	36	  
		
	 1.      DEFINITION OF DEFAULT
	  	 	36	  
	 2.      NOTICE OF DEFAULT
	  	 	36	  
	 3.      INTEREST AND CHARGE
	  	 	36	  
	 4.      DEFAULT BEFORE DELIVERY OF THE VESSEL
	  	 	36	  
	 5.      SALE OF THE VESSEL
	  	 	37	  
		
	 ARTICLE XII - INSURANCE
	  	 	39	  
		
	 1.      EXTENT OF INSURANCE COVERAGE
	  	 	39	  
	 2.      APPLICATION OF RECOVERED AMOUNT
	  	 	39	  
	 3.      TERMINATION OF THE SELLER’S OBLIGATION TO INSURE
	  	 	40	  
		
	 ARTICLE XIII - DISPUTES AND ARBITRATION
	  	 	41	  
		
	 1.      PROCEEDINGS
	  	 	41	  
	 2.      ALTERNATIVE ARBITRATION BY AGREEMENT
	  	 	42	  
	 3.      ALTERATION OF DELIVERY TIME
	  	 	42	  
		
	 ARTICLE XIV - RIGHT OF ASSIGNMENT
	  	 	43	  
		
	 1.      SELLER’S ASSIGNMENT
	  	 	43	  
		
	 ARTICLE XV - TAXES AND DUTIES
	  	 	45	  
		
	 1.      TAXES
	  	 	45	  
	 2.      INDEMNITY
	  	 	45	  
		
	 ARTICLE XVI - PATENTS, TRADEMARKS AND COPYRIGHTS
	  	 	46	  
		
	 ARTICLE XVII - NOTICE
	  	 	47	  
		
	 ARTICLE XVIII - EFFECTIVE DATE OF CONTRACT
	  	 	49	  
		
	 ARTICLE XIX - INTERPRETATION
	  	 	50	  
		
	 1.      LAW APPLICABLE
	  	 	50	  
	 2.      DISCREPANCIES
	  	 	50	  
	 3.      DEFINITION
	  	 	50	  
		
	 ARTICLE XX - EXHIBIT “A” : REFUND GUARANTEE
	  	 	53	  
		
	 ARTICLE XXI - EXHIBIT “B” : IRREVOCABLE LETTER OF GUARANTEE
	  	 	59	  

  

					
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

 SHIPBUILDING CONTRACT 

(CONTRACT NO.: 2013NYZ293UK) 

FOR 
 CONSTRUCTION OF ONE
82,000 MT DWT KAMSARMAX BULK CARRIER 
 (HULL NO.             ) 

This CONTRACT, entered into this      day of                 
by and between 

                     (hereinafter
called the “BUYER”) on the one part; 
 And 

Jiangsu Tianyuan Marine Import & Export Co., Ltd., a company organized and existing under the Laws of P.R.China, having its
registered office at Room 1309, No. 217, North Zhongshan Road, Nanjing City, Jiangsu Province, P. R. China (hereinafter called the “TRADING HOUSE”), and Jiangsu New Yangzi Shipbuilding Co., Ltd. (hereinafter called “JNYS”
), a company organized and existing under the Laws of P.R.China, having its registered office at 1# Lianyi Road, Jiangyin-Jingjiang Industry Zone, Jingjiang City, Jiangsu Province, P.R.China, and Jiangsu Yangzijiang Shipbuilding Co.,
Ltd.(hereinafter called “JYS” ), a company organized and existing under the Laws of China, have its registered office at 38# Shiyugang Road, Jiangyin City, Jiangsu Province, P.R.China (JNYS and JYS jointly and severally the
“BUILDER”) on the other part and the TRADING HOUSE and the BUILDER are hereinafter together called the “SELLER” and shall be jointly and severally responsible for the performance of the SELLER’s obligations. 

WITNESSETH 
 In consideration of the mutual
covenants contained herein, the SELLER agrees to design, build, launch, equip and complete at the BUILDER’s Shipyard (Jiangsu New Yangzi Shipbuilding Co., Ltd. or Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd.) and to sell and deliver to the BUYER
after completion and successful trial one (1) 82,000 Metric Tons Deadweight Kamsarmax bulk carrier as more fully described in Article I hereof, to be registered under the flag of Bahamas or Marshall Islands (Flag of Convenience) (however, the
BUYER has the option to declare an alternative flag within 30 days from the date of signing this Shipbuilding Contract, but Buyer will bear any extra costs incurred as a result of such change) and the BUYER agrees to purchase and take delivery of
the aforesaid VESSEL from the SELLER and to pay for the same in accordance with the terms and conditions hereinafter set forth. 

  

					
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

 ARTICLE I - DESCRIPTION AND CLASS 

 

	1.	 DESCRIPTION 

 The
VESSEL is a 82,000 metric tons deadweight KAMSARMAX bulk carrier at scantling draft of approximately 14.45 meters of the class described below. The VESSEL shall have the BUILDER’s Hull No.
             (hereinafter called the “Vessel”) and shall be designed, constructed, equipped and completed in accordance with the following: 

(1) Specification (Drawing No.:             ) 

(2) General Arrangement (Drawing No.:             ) 

(3) Midship Section (Drawing No.:             ) 

(4) Makers listed dated                     

 all attached hereto and signed by each of the parties to this Contract, 

(hereinafter collectively called the “Specifications”). 
  

	2.	 CLASS AND RULES 

The VESSEL, including its machinery and equipment, shall be constructed in accordance with the rules and regulations of
                     (hereinafter referred to as “            ” or
“Classification Society”) as fully described in the Specifications. 
 The requirements of the authorities as fully described in the
Specifications including that of the Classification Society are to include any additional rules or circulars thereof issued and becoming effective as at the date of signing this Contract. And any compulsory changes to class rules and regulations and
Bahamas or Marshall Islands or alternative flag rules and regulations, which may come into effect prior to the delivery of the vessel is to be always in accordance with Article V, Paragraph 2. 

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

	3.	 PRINCIPAL PARTICULARS AND DIMENSIONS OF THE VESSEL 

  (a)  Hull: 

  

					
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

  

									
	 Length overall
	  	 	approx.	  	    	 	229.00m	  
	 Length between perpendiculars
	  	 	approx.	  	    	 	225.30m	  
	 Breadth moulded at design
	  				    	 	32.26m  	  
	 Depth moulded to upper deck at side
	  	 	approx.	  	    	 	20.00m  	  
	 Scantling draught
	  				    	 	14.45m  	  

 (b)   Propelling Machinery: 

The VESSEL shall be equipped with a low speed type main engine, in accordance with the Specifications. 

 

	4.	 GUARANTEED SPEED 

The SELLER guarantees that the service speed of the VESSEL after correction before delivery is not less than 14.3 knots (“Contract
Speed”), in laden condition of mean draft of 12.20 m at main engine output of              at 82.4 RPM (NCR) with 15% sea margin, with new and clean hull and propeller, newly painted
hull, smooth and deep water, no wind and no wave. 
  

	5.	 GUARANTEED FUEL CONSUMPTION 

The SELLER guarantees that the fuel oil consumption of the main engine is not to exceed the chosen main engine supplier’s guaranteed
specific fuel consumption of              g/kWh grams/kilowatt/hour (the “Guaranteed Fuel Consumption”) at NCR output of
             at shop trial based on manufacturers reference conditions and diesel oil having a lower calorific value of 42,707 kj/kg. 

 

	6.	 GUARANTEED DEADWEIGHT 

The SELLER guarantees that the VESSEL is to have a deadweight of not less than 81,800 metric tons at the scantling draft of 14.45 meters in sea
water of 1.025 t/m specific gravity. 
 The term “deadweight”, as used in this Contract, shall be as defined in the Specifications.

 The actual deadweight of the VESSEL expressed in metric tons shall be based on calculations made by the BUILDER and checked by the BUYER,
and all measurements necessary for such calculations shall be performed in the presence of the Supervisors and Classification Society surveyors. 

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

	7.	 STANDARD OF CONSTRUCTION 

The VESSEL’s construction, equipment and materials will be in accordance with first-class standards set out in the Specifications, and in
accordance with the BUILDER’s standard practice always subject to approval of Classification Society where necessary. 

  

					
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

	8.	 SUBCONTRACTING 

The BUILDER may, at its sole discretion and responsibility, subcontract any portions of the construction work of the VESSEL to experienced
subcontractors, but delivery and final assembly into the VESSEL of any such work subcontracted shall be at the BUILDER’s Shipyard. The BUILDER shall remain responsible for such subcontracted works. The BUILDER shall obtain BUYER’s prior
written consent, which shall not be unreasonably withheld. 
  

	9.	 REGISTRATION 

 The
VESSEL shall be registered by the BUYER at its own cost and expenses at the time of delivery and acceptance thereof. 
 Following certificate
to be delivered by the SELLER to the BUYER eight (8) days before the Delivery Date: 
 - Builder’s Certificate 

Delivery of above mentioned certificate to the BUYER eight (8) days before the Delivery Date of the VESSEL shall not mean or imply the
transfer to the BUYER of the title and risk of the VESSEL. 
  

	10.	 DRYDOCKING 

 If
the VESSEL stays in fresh water after launching until delivery to the BUYER for a period of not more than 150 days, it shall be exempted from drydocking, provided however that the final antifouling paint has been applied by the SELLER in strict
accordance with the paint suppliers’ recommendations (such recommendations to be submitted to the BUYER for information) before the launching of the VESSEL. 

In the event that the VESSEL stays in fresh water for a period of more than 150 days, the SELLER shall carry out at SELLER’s account a
divers’ inspection to determine together with the BUYER the necessity of re-docking the VESSEL. All costs in connection with such divers’ inspection and with the re-docking of the VESSEL shall be for SELLER’s account. 

  

					
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

 ARTICLE II - CONTRACT PRICE & TERMS OF PAYMENT 

 

	1.	 CONTRACT PRICE 

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

	2.	 CURRENCY 

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

	3.	 TERMS OF PAYMENT 

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

 

	(a)	 1st Instalment: 

The sum of United States Dollars
                    , representing Twenty percent (20%) of the Contract Price, shall become due and payable on the Effective Date of this
Contract (see Article XVIII). 
  

	(b)	 2nd Instalment: 

The sum of United States Dollars
                    , representing Ten percent (10%) of the Contract Price, shall become due and payable and be paid within five
(5) New York business days after the Keel Laying of the VESSEL according to the Classification Society’s rules has taken place at the BUILDER’s shipyard, but in any event payment of the instalment shall not be made earlier than 360
days prior to the Scheduled Delivery Date (see Article VII). Seven (7) days prior notice of the Keel Laying shall be given by the SELLER to the BUYER. 
  

	(c)	 Final Instalment (Payment upon Delivery of the VESSEL): 

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

	4.	 METHOD OF PAYMENT 

  

					
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	(a)	 1st Instalment: 

The BUYER shall remit the amount of this instalment in accordance with Article II paragraph 3 (a) by telegraphic transfer to
the SELLER’s account with the SELLER’s bank as notified by the SELLER to the BUYER and such nomination shall be notified to the BUYER at least 5 days prior to the due date for payment. 

 

	(b)	 2nd Instalment: 

The BUYER shall remit the amount of this instalment in accordance with Article II paragraph 3 (b) by telegraphic transfer to
the SELLER’S account with the SELLER’s bank as notified by the SELLER to the BUYER and such nomination shall be notified to the BUYER at least 5 days prior to the due date for payment. 

 

	(c)	 Final Instalment: 

The BUYER shall, at least three (3) New York business days prior to the intended date of delivery of the VESSEL, make an
irrevocable cash deposit in the name of the BUYER with the SELLER’s bank, for a period of thirty (30) days covering the amount of this instalment (as adjusted in accordance with the provisions of this Contact), with an irrevocable
instruction that the said amount shall be released to the SELLER against presentation by the SELLER to the SELLER’s bank of a copy of the Protocol of Delivery and Acceptance signed by the BUYER’s authorized representative and the
SELLER’s authorized representative. Interest, if any, accrued from such deposit, shall be for the benefit of the BUYER. 

If the delivery of the VESSEL is not effected on or before the expiry of the aforesaid thirty (30) days deposit period, the
BUYER shall have the right to withdraw the said deposit plus accrued interest upon the expiry date. However, when the new date of delivery is notified to the BUYER by the SELLER, the BUYER shall make the cash deposit in accordance with the same
terms and conditions as set out above. 
  

	5.	 PREPAYMENT 

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

 

	6.	 SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY 

The BUYER and the SELLER have agreed there is no requirement for security. 

 

	7.	 REFUNDS 

 All
payments made by the BUYER prior to delivery of the VESSEL shall be in the nature of advance to the SELLER, and in the event this Contract is rescinded or cancelled by the BUYER in accordance with any terms of this Contract which permit such
rescission or cancellation, the SELLER shall refund to the BUYER in United 

  

					
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 States Dollars the full amount of all sums already paid by the BUYER to the SELLER under this
Contract, together with interest at the rate of Six percent (6.0 %) per annum from the respective payment date(s) to the date of remittance by telegraphic transfer of such refund to the account specified by the BUYER. 

As security to the BUYER, the SELLER shall deliver to the BUYER, within Thirty (30) days following the approval of Buyer’s BOD, a
Refund Guarantee through the SWIFT issued by the SELLER’s bank in the form as per Exhibit “A” annexed hereto, such bank to be acceptable to the BUYER’s bank and the BUYER. 

However, in the event of any dispute between the SELLER and the BUYER with regard to the SELLER’s obligation to pay the instalment or
instalments paid by the BUYER and to the BUYER’s right to demand payment from SELLER’s bank, under its guarantee, and such dispute is submitted either by the SELLER or by the BUYER for arbitration in accordance with Article XIII hereof or
for appeal or appeals in accordance with the English laws, SELLER’s bank shall withhold and defer payment until the arbitration award between the SELLER and the BUYER is published. SELLER’s bank shall not be obligated to make any payment
unless the arbitration award (or any court order on appeal therefrom) orders the SELLER to make payment and any right of appeal available to the SELLER under English laws is waived or is not exercised by the SELLER in accordance with English law. If
the SELLER fails to honour the award or judgment, then SELLER’s bank shall refund to the extent the arbitration award (or any court judgment) orders. 

In the event that such dispute is submitted to arbitration in the manner specified above, the SELLER shall be deemed to have agreed to the
extension(s) of any Refund Guarantee that may have been issued in accordance with this Article until 30 days after the award (or any court order on appeal therefrom) is final. Production to the SELLER’s bank or any correspondent bank of notice
of appointment of an arbitrator shall be good evidence of the SELLER’s agreement to such extension. 

  

					
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 ARTICLE Ill - ADJUSTMENT OF THE CONTRACT PRICE 

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

	1.	 DELIVERY 

  

	(a)	 No adjustment shall be made, and the Contract Price shall remain unchanged for the first forty five (45) 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 in China of the forty fifth (45th) day of delay. 

 

	(b)	 If the delivery of the VESSEL is delayed more than forty five (45) days after the date as defined in Article VII hereof, then, in such event,
beginning at twelve o’clock midnight of the forty fifth (45th) day after the Delivery Date, the Contract Price of the VESSEL shall be reduced by deducting therefrom the sum of United States
Dollars                      per day for the period from 45th day after the Delivery Date to
         day. 

Unless the parties hereto agree otherwise, the total reduction in the Contract Price shall be deducted from the Final Instalment
of the Contract Price and in any event (including the event that the BUYER consents to take delivery of the VESSEL at a date after the expiration of Two Hundred and Ten (210) calendar days delay as described in Paragraph 1(c) of this Article)
shall not be more than One Hundred and Sixty Five (165) days at the above specified rate of reduction after the Forty Five (45) days allowance, that is United States Dollars
                     being the maximum. 
  

	(c)	 If the delay in the delivery of the VESSEL continues for a period of Two Hundred and Ten (210) days (ending at midnight in China) after the
Delivery Date as defined in Article VII, the 211th day shall be the cancelling date (“the Cancelling Date”), upon or after which the BUYER may, at its option, rescind or cancel this Contract by serving the BUILDER a notice of cancellation
in writing or by email or telefax. 

 Such rescission or cancellation shall be effective as of the date of
the notice thereof is received by the BUILDER, and the BUILDER, upon receipt of such notice, shall in accordance with Article X.3 refund telegraphically to the BUYER in U.S. Dollars with interest as hereinafter provided in Article X.3. all the
instalments paid by the BUYER to the BUILDER and the cost of the BUYER’s supplied items. The Transfer and other bank charges of such refunds shall be for the SELLER’s account. 

Without Prejudice to the foregoing the SELLER may at any time after the Cancelling Date, if the BUYER has not served notice of
cancellation as above provided notify the BUYER of the date upon which the SELLER estimates the VESSEL will be ready for delivery and demand in writing that the BUYER make an election in which case the BUYER shall, within twenty (20) days after
such demand is received by the BUYER, either notify the BUILDER) of its decision to cancel this Contract, or consent to take delivery of the VESSEL on or before an agreed future date. 

  

					
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 In such circumstances and for the purpose of determining liquidated damages to
the BUYER (according to Article III.1(a) and Article III.1 (b)) and the BUYER’s right to cancel or rescind the Contract (according to the provisions of this Article lll.1(c)), the newly planned delivery date declared by the BUILDER shall not be
in any way treated or taken as having substituted the original Delivery Date as defined in Article Vll.1. The BUYER’s aforesaid right to liquidated damages and to cancel or rescind this Contract shall be accrued, operated or exercised only to
the extent described in Articles lll.1(a), lll.1(b) and lll.1(c). In all events the Delivery Date as defined in Article VII.1 (not the newly planned delivery date declared by the BUILDER) shall be used to regulate, as described in Articles III.1
(a), III.1(b) and III.1(c), the BUYER’s right to liquidated damages and to rescind or cancel this Contract and the BUILDER’s liability to pay the aforesaid liquidated damages resulting from delay in delivery of the Vessel (in any event,
such liquidated damages shall not exceed the maximum amount specified in Article Ill. 1(b), i.e. United States Dollars                     . 

 

	(d)	 For the purpose of paragraph 1 (b) of this Article, the Contract Price shall not be reduced when and if the delivery of the VESSEL is postponed
by reason of Permissible Delays as defined in Article VIII hereof. 

  

	2.	 INSUFFICIENT SPEED 

  

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

 

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

 

							
	 In case of deficiency of less than 0.30 knot
	  	US$ 	  		  	
	 In case of deficiency
	  		  		  	
	 at or above 0.30 but below 0.40 knot
	  	US$ 	  		  	
	 at or above 0.40 but below 0.50 knot
	  	US$ 	  		  	
	 at or above 0.50 but below 0.60 knot
	  	US$ 	  		  	
	 at or above 0.60 but below 0.70 knot
	  	US$ 	  		  	
	 at or above 0.70 but below 0.80 knot
	  	US$ 	  		  	
	 at or above 0.80 but below 0.90 knot
	  	US$ 	  		  	

  

	(c)	 If the deficiency in actual speed (as determined by the Trial Run after correction according to the Specifications) of the VESSEL upon the Trial Run,
is more than 0.90 knot below the guaranteed speed, as per Article I. 4, then the BUYER may at its option reject the VESSEL and rescind this Contract in accordance with provisions of Article X of this Contract, or may accept the VESSEL at a reduction
in the Contract Price as above provided, by United States Dollars                      being the maximum. 

 

	3.	 EXCESSIVE FUEL CONSUMPTION 

  

					
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	(a)	 The Contract Price of the VESSEL shall not be affected nor changed if the actual fuel consumption of the main engine, as determined by shop trial in
the manufacturer’s works as per the Specifications, is greater than the Guaranteed Fuel Consumption as specified and required under the provisions of this Contract and the Specifications but such excess is equal to or less than six percent
(6%). 

  

	(b)	 However, if the actual fuel consumption as determined by the shop trial is greater than six percent (6%) above the Guaranteed Fuel Consumption
then, the Contract Price shall be reduced by the sum of United States Dollars Fifty Thousand (US$                ) for each full one percent (1%) increase in fuel
consumption in excess of the above said six percent (6%) (fractions of one percent to be prorated). 

  

	(c)	 If as determined by the shop trial such actual fuel consumption of the main engine is more than ten percent (10%) in excess of the Guaranteed
Fuel Consumption, the BUYER may, at its option, reject the VESSEL and rescind this Contract, in accordance with the provisions of Article X of this Contract or may accept the VESSEL at a reduction in the Contract Price by United States Dollars
                    being the maximum. 

  

	4.	 DEADWEIGHT 

  

	(a)	 In the event that there is a deficiency in the actual deadweight of the VESSEL determined as provided in the Specifications, the Contract Price shall
not be reduced if such deficiency is seven hundred (700) metric tons or less below the guaranteed deadweight of 81,800 metric tons at assigned scantling draft. 

 

	(b)	 However, the Contract Price shall be reduced by the sum of United States Dollars
                    for each full metric ton of such deficiency being more than seven hundred (700) metric tons. 

 

	(c)	 In the event that there should be a deficiency in the VESSEL’s actual deadweight which exceeds one thousand four hundred (1,400) metric tons
below the guaranteed deadweight, the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X of this Contract, or may accept the VESSEL with a reduction in the Contract Price in the
maximum amount of United States Dollars                     . 

 

	5.	 EFFECT OF RESCISSION 

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

 

	6.	 REFUND GUARANTEE 

  

					
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 Upon receipt by the BUYER of a Refund Guarantee in the form and terms as per Exhibit
“A” annexed hereto, the Contract Price of the VESSEL shall be increased by the sum of United States Dollars                     . For the
avoidance of any doubt, payment of the increased Contract Price under this Article 111.6 shall be paid by way of an adjustment to the Contract Price pursuant to Article ll.3(c) (Final Instalment (Payment upon Delivery of the VESSEL). 

  

					
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 ARTICLE IV - SUPERVISION AND INSPECTION 

 

	1.	 APPOINTMENT OF THE BUYER’S SUPERVISORS 

The BUYER shall timely send to and maintain at the BUILDER’s Shipyard, at the BUYER’s own cost and expense, one or more
representative(s) who shall be duly authorized in writing by the BUYER (such representative(s) being hereinafter collectively and individually called the “Supervisors”) to supervise and survey the construction by the BUILDER of the VESSEL,
her engines and accessories. The BUYER and SELLER shall, latest 30 calendar days after the Effective Date (see Article XVIII), agree upon a schedule of arrival to the yard of the representative(s). 

The BUYER shall nominate one of the Supervisors as the BUYER’s Project Manager (“the Project Manager”) who shall co-ordinate the
communication between the Supervisors and the SELLER. 
 The BUYER shall endeavour to ensure that the Supervisors (s) shall be appointed
for the duration of the Contract. In the event of change of representative the BUYER will give the SELLER reasonable notice in advance. 

Unless advised by the BUYER in writing, the Supervisors(s) shall have no general authority to change the Contract except for approval of plans
and drawings. 
  

	2.	 APPOINTMENT OF BUILDER’S PROJECT TEAM 

The BUILDER shall, prior to commencement of construction, nominate a team of qualified representatives to act as the BUILDER’s project team
for the duration of the project. This project team shall act as the liaison between the Supervisors and the BUILDER. 
  

	3.	 APPROVAL OF PLANS AND DRAWINGS 

The SELLER and the BUYER agree that the Supervisor has authority to approve the plans and drawings on behalf of the BUYER. 

Prior to starting work, the SELLER shall submit plans and drawings to the Supervisor and/or the Classification Society for approval in due time of
design and construction schedules. 
 The list of plans and drawings for approval shall be submitted to the Supervisors in early stage of
designing. 
 Two (2) copies of plans and drawings for the Supervisor’s approval shall be submitted to the Supervisors not less than
30 running days before any construction work is commenced and one (1) copy with the Supervisor’s approved signature shall be returned to the SELLER. 

The SELLER’s standard plans and drawings and subcontractor’s or manufacturer’s plans and drawings may be used as working plans or
plans for approval. 
 Upon receipt of plans and drawings for approval the Supervisors shall re-submit the plans with comments in writing to
the Builder within fourteen (14) calendar days counting from date of receipt by the Supervisor. 

  

					
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 The plans and drawings submitted for approval shall be deemed to have been approved without any
comment if and when the Supervisors does not dispatch the approved plans and drawings within fourteen (14) calendar days counting from the date of receipt by the Supervisors unless the Supervisors on behalf of the BUYER has requested in writing
an ex-tension of the deadline to submit his comments and in such instance the Supervisors shall have a further seven (7) days from the date of such request to submit his comments. 

If the Supervisor’s comments on the plans and drawings are unclear or unspecified, the SELLER may, by e-mail or fax, request clarification,
and failure by the Supervisors or their representative to respond to this request within five (5) calendar days of receipt of such notice shall entitle the SELLER to place its own reasonable interpretation on such remarks, comments, amendments
when implementing same. 
 If any comments are made or modifications requested by the Classification Society or by another regulatory agency or
entity the Supervisors and the SELLER will consult, and agreement as to how to modify the plans and drawings shall be reached in accordance with the terms of Article V of this Contract. 

The plans and drawings approved by the Supervisor shall be final and any alteration thereof shall be regarded as a modification specified in
Article V of this Contract 
 The Supervisors shall have the right to take photographs of the Vessel, its materials, equipment and components
for recording purposes throughout the construction period of the Vessel. 
 the Supervisor’s approval of the plans as set out above shall
in no way diminish, affect or impair the obligations, guarantees or undertakings of the SELLER in relation to the design, materials and construction of the Vessel or otherwise in any way whatsoever under the Shipbuilding Contract. 

 

	4.	 SUPERVISION AND INSPECTION BY THE SUPERVISORS 

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

The Supervisors shall have, at all times until delivery of the VESSEL, the right to attend tests according to the mutually agreed test list and
inspect the VESSEL, her engines, accessories and materials at the BUILDER’s Shipyard, its subcontractors or any other place where work is done or materials stored in connection with the VESSEL. In the event that the Supervisors discover any
construction or material or workmanship which does not or will not conform to the requirements of this Contract and the Specifications, the Supervisors shall promptly give the BUILDER a notice in writing as to such nonconformity, upon receipt of
which the BUILDER shall correct such nonconformity if the BUILDER agrees with the BUYER. In case of dispute between the SELLER and the BUYER in respect of the notified nonconformity either party may submit the issue to the Classification Society or
to arbitration in accordance with Article XIII hereof. In any circumstances, the SELLER may at his 

  

					
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 own risk proceed with the construction of the VESSEL even if there exists discrepancy in the
opinion between the BUYER and the SELLER, without however prejudice to the BUYER’s right to demand correction of the nonconformity if the Classification Society or the arbitration tribunal finds that the construction and/or material and/or
workmanship do not comply with the Contract or Specifications. Any delay caused by the correction of the nonconformity will be the responsibility of the SELLER and will not be regarded as Permissible Delay and the SELLER shall not be entitled to
extend the Scheduled Delivery Date of the VESSEL. Likewise, any costs and expenses arising out of or in connection with the correction of the nonconformity will be solely for SELLER’s account. However the BUYER undertakes and assures the SELLER
that the Supervisors shall carry out his inspections in accordance with the Specifications, mutually agreed inspection procedure and schedule and shipbuilding practice and in a way as to minimize any increase in building costs and delays in the
construction of the VESSEL. 
 The BUILDER shall provide the Supervisors with at least one (1) day advance notice in writing of tests and
inspections which the Supervisors shall attend within the BUILDER’s yard and at least three (3) days advance notice with respect to any other locations within China and at least fifteen (15) days outside China. If the Supervisors do
not attend any such tests having been given due notice to attend, the BUYER shall be obliged to accept the results of such tests on the basis of acceptance of such tests by the Classification Society as case may be. 

The BUILDER agrees to furnish free of charge the Supervisors with office space, and other reasonable facilities according to BUILDER’s
practice at, or in the immediate vicinity of the BUILDER’s Shipyard. The office communication fee shall be charged to and paid by the BUYER on a monthly basis. At all times, during the construction of the VESSEL until delivery thereof, the
Supervisors shall be given free and ready access to the VESSEL, her engines, accessories and materials, and to any other place where the work is being done, or the materials are being processed or stored, in connection with the construction of the
VESSEL, including the yards, workshops, stores of the BUILDER, and the premises of subcontractors of the BUILDER who are doing work, or storing materials in connection with the VESSEL’s construction. The travel expenses for access to
SELLER’s subcontractors outside of Jiangsu Area shall be at BUYER’s account. The transportation within Jiangsu Area shall be provided to the Supervisors by the BUILDER. 

 

	5.	 LIABILITY OF THE SELLER 

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

  

					
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 gross negligence of the SELLER, or of any of the employees, or agents or subcontractors of the
SELLER. 
  

	6.	 SALARIES AND EXPENSES 

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

	7.	 REPORT OF PROGRESS 

The BUYER is entitled to require the BUILDER to report monthly the condition of progress as to the construction of the VESSEL during the
construction of the VESSEL. 
  

	8.	 REPLACEMENT OF SUPERVISORS 

The BUYER shall ensure that the Supervisors shall carry out their duties hereunder in accordance with good international shipbuilding and marine
engineering practice and in such a way as to avoid any unnecessary and unreasonable increase in building cost, delay in the construction of the VESSEL, and /or any disturbance in the construction schedule of the BUILDER. The Builder has the right to
request the BUYER by written notice to replace the Supervisors, who is deemed unsuitable and unsatisfactory for the proper progress of the VESSEL’s construction. The BUYER shall investigate the situation by sending its representative(s) to the
Builder’s yard, if necessary, and if the BUYER considers that such SELLER’s request is justified, the BUYER shall effect the replacement as soon as conveniently arrangeable. The supervision thus exercised on behalf of the BUYER by the
Supervisors shall not alter or diminish the responsibility of the BUILDER with regard to the time of delivery and quality of the VESSEL, her engines and accessories as elsewhere in this Contract or in the Specifications, provided, however, that such
supervision shall be carried out in such a way to avoid any unjustifiable and unreasonable increase in the building cost and delays in the construction of the VESSEL. 

The BUYER will not replace the Supervisors without the BUILDER’s prior written approval. 

 

	9.	 RESPONSIBILITY OF THE SELLER 

Neither the approval of drawings by the BUYER nor the inspection of the VESSEL during construction by the Supervisors shall in any way diminish,
affect or impair the obligations, guarantees or undertakings of the BUILDER in relation to the design, materials and construction of the VESSEL. 

  

					
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 ARTICLE V - MODIFICATION, CHANGES AND EXTRAS 

 

	1.	 HOW EFFECTED 

 The
Specification, (including the plans and drawings) in accordance with which the VESSEL is constructed, may be modified and/or changed at any time hereafter by written agreement of the parties hereto, provided that such modifications and/or changes or
an accumulation thereof will not, in the BUILDER’s reasonable judgment, adversely affect the BUILDER’s other commitments and provided further that the BUYER shall assent to adjustment of the Contract Price, time of delivery of the VESSEL
and other terms of this Contract, if any, as hereinafter provided. 
 Subject to the above, the SELLER hereby agree to exert their best efforts
to accommodate such reasonable requests by the BUYER so that the said changes and/or modifications may be made at a reasonable cost and within the shortest period of time which is reasonable and possible. Any such agreement for modifications and/or
changes shall include an agreement as to the increase or decrease, if any, in the Contract Price of the VESSEL together with an agreement as to any extension or reduction in the time of delivery, providing additional securities satisfactory to the
SELLER, or any other alterations in this Contract, or the Specifications occasioned by such modifications and/or changes. 
 The aforementioned
agreement to modify and/or to change the Specifications may be effected by an exchange of duly authenticated letters or telefax or email, manifesting such agreement. The letters, telefaxes and emails exchanged by the parties pursuant to this Article
shall constitute an amendment of the Specifications under which the VESSEL shall be built, and such letters, telefaxes and emails shall be deemed to be incorporated into this Contract and the Specifications by reference and made a part hereof. Upon
agreement to modify and/or to change the Specifications, the SELLER shall alter the construction of the VESSEL accordingly, including any additions to, or deductions from, the work to be performed in connection with such construction. 

If due to whatever reasons, the parties hereto shall fail to agree on the adjustment of the Contract Price or extension of time of delivery or
providing additional security to the SELLER or modification of any terms of this Contract which are necessitated by such modifications and/or changes, then the SELLER shall have no obligation to comply with the BUYER’s request for any
modification and/or changes. 
  

	2.	 CHANGES IN RULES AND REGULATIONS, ETC. 

  

	(1)	 If, after the date of signing this Contract, any requirements as to the rules and regulations as specified in this Contract and the Specifications to
which the construction of the VESSEL is required to conform, are altered or changed by the Classification Society or the other regulatory bodies authorized to make such alterations or changes, the SELLER and/or the BUYER, upon receipt of the notice
thereof, shall transmit such information in full to each other in writing, whereupon within twentyone (21) days after receipt of the said notice by the BUYER from the SELLER or vice versa, the BUYER shall instruct the SELLER in writing as to
the alterations or changes, if any, to be made to the VESSEL which the BUYER, in its sole discretion, shall decide. The SELLER shall 

  

					
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	    	 promptly comply with such alterations or changes, if any, in the construction of the VESSEL, provided that the BUYER shall first agree:

  

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

 

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

 

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

  

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

  

	(e)	 if the price is to be increased, to provide to the SELLER additional securities, as per Article 11. 

 

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

  

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

 

	3.	 SUBSTITUTION OF MATERIALS AND/OR EQUIPMENT 

In the event that any of the materials and/or equipment required by the Specifications or otherwise under this Contract for the construction of
the VESSEL cannot be procured in time to effect delivery of the VESSEL, the SELLER may, provided the SELLER shall provide adequate evidence and the BUYER so agrees in writing, supply other materials and/or equipment of the equivalent quality,
capable of meeting the requirements of the Classification Society, and national and/or international regulatory bodies, as per the Specifications and any other rules, regulations, requirements and recommendations with which the construction of the
VESSEL must comply. Any agreement as to such substitution of materials shall be effected at no extra cost to the BUYER or delayed delivery of the VESSEL, unless the BUYER specifically agrees thereto in writing. Any savings made by the SELLER shall
be credited to the BUYER. 

  

					
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	4.	 BUYER’S SUPPLIED ITEMS 

The BUYER shall deliver to the SELLER at its shipyard the items as specified in the Specifications which the BUYER shall supply on its account
(the “BUYER’s Supplied Items”) by the time designated by the SELLER. 
 Should the BUYER fail to deliver to the BUILDER such
items within the time specified, the Delivery Date shall automatically be extended for the period by which such delay in delivery of the BUYER’s Supplied Items causes delay to the delivery of the VESSEL. In such event, the BUYER shall pay to
the SELLER all losses and damages sustained by the SELLER due to such delay and such payment shall be made upon delivery of the VESSEL. 

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

The BUILDER shall be responsible for storing and handling of the BUYER’s Supplied Items after delivery to the BUILDER and shall install them
on board the VESSEL at the BUILDER’s expenses. 
 Upon arrival of such shipment of the BUYER’s Supplied Items, both parties shall
undertake a joint unpacking inspection. If any damages are found to be not suitable for installation, the BUILDER shall be entitled to refuse to accept the BUYER’s Supplied Items. 

The SELLER shall arrange the customs formalities for the BUYER’s Supplied Items at the BUYER’s cost, however, the BUYER shall send the
list of the BUYER’s Supplied Items with description, quantities, unit price and country of origin to the SELLER at least 20 days before shipment. The shipping documents shall be made in a form acceptable to the SELLER and sent to the SELLER in
due course so that the SELLER can arrange the customs formalities in time. 

  

					
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 ARTICLE VI - TRIALS 

 

	1.	 NOTICE 

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

	2.	 HOW CONDUCTED 

  

	(a)	 All expenses in connection with Trial Run are to be for the account of the BUILDER, who, during the Trial Run and when subjecting the VESSEL to the
Trial Run, is to provide, at its own expense, the necessary crew to comply with conditions of safe navigation. The Trial Run shall be conducted in the manner prescribed in the Specifications and shall prove fulfillment of the performance required
for the Trial Run as set out in the Specifications. 

  

	(b)	 The course of Trial Run shall be determined by the BUILDER and shall be conducted within the trial basin equipped with speed measuring facilities.

  

					
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	(c)	 The BUILDER shall provide the VESSEL with the required quantities of water, fuel oil and greases with exception of lubrication oil and hydraulic oil
which shall be supplied by the BUYER for the conduct of the Trial Run or Trial Runs as prescribed in the Specifications. The fuel oil and greases supplied by the SELLER, and lubricating oil and hydraulic oil supplied by the BUYER shall be in
accordance with the applicable engine Specifications, and the cost of the quantities of water, fuel oil, lubricating oil, hydraulic oil and greases consumed during the Trial Run or Trial Runs shall be for the account of the BUILDER.

  

	3.	 TRIAL LOAD DRAFT 

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

	4.	 METHOD OF ACCEPTANCE OR REJECTION 

  

	(a)	 Upon notification of the BUILDER of the completion of the Trial Run of the VESSEL, the BUYER or the BUYER’s Supervisors shall within four
(4) business days in the Country of Construction thereafter, notify the BUILDER by telefax or email confirmed in writing of its acceptance of the VESSEL or of its rejection of the VESSEL together with the reasons therefor.

  

	(b)	 However, should the result of the Trial Run indicate that the VESSEL or any part thereof including its equipment does not conform to the requirements
of this Contract and Specifications, then the BUILDER shall investigate with the Supervisors the cause of failure and the proper steps shall be taken to remedy the same and shall make whatever corrections and alterations and/or reTrial Run or Trial
Runs as may be necessary without extra cost to the BUYER, and upon notification by the BUILDER of completion of such alterations or corrections and/or retrial or retrials, the BUYER shall, within four (4) business days in the Country of
Construction thereafter, notify the SELLER by telefax or email confirmed in writing of its acceptance of its VESSEL or of the rejection of the VESSEL together with the reason therefor on the basis of the alterations and corrections and/or retrial or
retrials by the BUILDER. 

  

	(c)	 In the event that the BUYER fails to notify the SELLER by telefax or email confirmed in writing of its acceptance or rejection of the VESSEL together
with the reason thereof within four (4) business days period as provided for in sub paragraphs (a) and (b) above, the BUYER shall be deemed to have accepted the VESSEL. 

 

	(d)	 Any dispute arising among the parties hereto as to the result of any Trial Run or further tests or trials, as the case may be, of the VESSEL shall be
solved by reference to arbitration as provided in Article XIII hereof. 

  

	(e)	 Nothing herein shall preclude the BUYER from accepting the VESSEL with its qualifications and/or remarks following the Trial Run and/or further tests
or trials 

  

					
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as aforesaid and the SELLER shall be obliged to comply with and/or remove such qualifications and/or remarks (if such qualifications and/or remarks are acceptable to the SELLER) at the time
before effecting delivery of the VESSEL to the BUYER under this Contract. 

  

	5.	 DISPOSITION OF SURPLUS CONSUMABLE STORES 

Should any amount of fuel oil, fresh water, or other unbroached consumable stores furnished by the BUILDER for the Trial Run or Trial Runs remain
on board the VESSEL at the time of acceptance thereof by the BUYER, the BUYER agrees to buy the same from the SELLER at the current market price at the port of delivery thereof, and payment by the BUYER shall be effected as provided in Article II
3(c) and 4(c) of this Contract. 
 The BUYER shall supply lubricating oil and hydraulic oil for the purpose of Trial Runs at its own
expenses and the SELLER will reimburse for the amount of lubricating oil and hydraulic oil actually consumed for the said Trial Run or Trial Runs at the original price incurred by the BUYER and payment by the SELLER shall be effected as provided in
Article II 3(c) and 4(c) of this Contract. 
  

	6.	 EFFECT OF ACCEPTANCE 

The BUYER’s acceptance of the VESSEL by written or telefax or email notification sent to the SELLER, in accordance with the provisions set
out above, shall be final and binding so far as conformity of the VESSEL to this Contract and the Specifications is concerned, and shall preclude the BUYER from refusing formal delivery by the SELLER of the VESSEL, as hereinafter provided, if the
SELLER complies with all other procedural requirements for delivery as hereinafter set forth. 
 If, at the time of delivery of the VESSEL,
there are deficiencies in the VESSEL, such deficiencies should be resolved in such way that if the deficiencies do not affect the, seaworthiness, Class or safety of the Vessel, and do not in any way affect the safety or the operation of the Vessel,
its crew, passengers or cargo, the SELLER shall be nevertheless entitled to tender the Vessel for delivery and the Buyer shall be nevertheless obliged to take delivery of the Vessel, provided that: 

The SELLER shall for its own account remedy the deficiencies and fulfill the requirements as soon as possible before delivery; or

 if elimination of such deficiencies will affect timely delivery of the VESSEL, then the SELLER shall indemnify the BUYER for
any direct cost reimbursement in association with remedying these minor non-conformities elsewhere as a consequence thereof, excluding, however, loss of time and/or loss of profit. 

  

					
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 ARTICLE VII - DELIVERY 

 

	1.	 TIME AND PLACE 

The VESSEL shall be delivered safely afloat by the SELLER to the BUYER at the BUILDER’s Shipyard, or Shanghai area or Nanjing area, or other
place to be agreed, in accordance with the Specifications and with all Classification and Statutory Certificates and after completion of Trial Run (or, as the case may be, retrial or retrials) and acceptance by the BUYER in accordance with the
provisions of Article VI hereof on or before                      (“the Scheduled Delivery Date”), provided this Contract will be effective
as per Article XVIII. 
 Provided 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 the Contract permit extension of the time for delivery, the aforementioned time for delivery of the VESSEL shall be extended accordingly. 

In this Contract, the phrase “Delivery Date” shall refer to the Scheduled Delivery Date, or such later date to which delivery is
extended pursuant to the terms of this Contract. 
 Notwithstanding the above, in the event that the Delivery Date is due to fall between
     and             in any year, the BUYER shall have the right, in its sole discretion, to defer delivery until a date not later than 10th January in the following year, with all related costs of keeping the VESSEL at the BUILDER’s shipyard and/or at a safe mooring quay, in
Seller’s option, being for BUYER’s account. Such delay shall not be taken into account for the purposes of calculating any liquidated damages that may be payable under Article Ill 1 (b), nor the period of delay under Article Ill 1
(c) (Cancellation). 
  

	2.	 WHEN AND HOW EFFECTED 

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

	3.	 DOCUMENTS TO BE DELIVERED TO THE BUYER 

Upon acceptance of the VESSEL by the BUYER, the SELLER shall deliver to the BUYER the following documents (subject to the provision contained in
Article V 2 hereof) which shall accompany the aforementioned Protocol of Delivery and Acceptance: 
  

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

 

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

  

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

 

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

 

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

 

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

Certificates shall be issued by relevant Authorities or the Classification Society. The VESSEL shall comply with the above rules
and regulations which are in force at the time of signing the Contract and any modifications if implemented under Article V. All the certificates shall be delivered in one (1) original to the vessel and two (2) copies to the BUYER. 

If the full term certificate or certificates are unable to be issued at the time of delivery by the Classification Society or any
third party other than the BUILDER, then the provisional certificate or certificates as issued by The Classification Society or the third party other than the BUILDER with the full term certificates to be furnished by the BUILDER after delivery of
the VESSEL and in any event before the expiry of the provisional certificates shall be acceptable to the BUYER. 
  

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

 

	(h)	 COMMERCIAL INVOICE made by the SELLER. 

  

	(i)	 BILL OF SALE made by the SELLER duly notarized. 

  

	(j)	 A VALIDLY EXECUTED ASSIGNMENT IN ACCORDANCE WITH ARTICLE IX 6 if and to the extent that the BUYER has exercised its option under that clause before
delivery. 

 The Builders Certificate and Bill of Sale shall all be notarized. 

 

	4.	 TITLE AND RISK 

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

  

					
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	5.	 REMOVAL OF VESSEL 

The BUYER shall take possession of the VESSEL immediately upon delivery and acceptance thereof, and shall remove the VESSEL from the premises of
the BUILDER within five (5) days after delivery and acceptance thereof is effected. If the BUYER shall not remove the VESSEL from the premises of the BUILDER within the aforesaid five (5) days, then, in such event, without prejudice to the
SELLER’s right to require the BUYER to remove the VESSEL immediately at any time thereafter, the BUYER shall pay to the SELLER the reasonable mooring charge of the VESSEL. 

 

	6.	 TENDER OF THE VESSEL 

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

	7.	 SHIP’S MODEL 

At or shortly following the delivery of the VESSEL, the SELLER will provide to the buyer, at no additional cost, a builder’s model of the
VESSEL at scale of 1:150. 

  

					
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 ARTICLE VIII - DELAYS & EXTENSION OF TIME FOR 

DELIVERY 
  

	1.	 CAUSE OF DELAY 

If, at any time before actual delivery, either the construction of the VESSEL, or any performance required hereunder as a prerequisite of
delivery of the VESSEL, is delayed due to Princes or Rulers, war, blockade, revolution, insurrection, mobilization, civil commotions, riots, strikes, sabotage, lockouts, local temperature higher than 35 degree centigrade, Acts of God or the public
enemy, plague or other epidemics, quarantines, prolonged failure or restriction of electric current from an outside source, short supply of oil and/or gas due to general shortage, freight embargoes, if any, earthquakes, tidal waves, typhoons,
hurricanes, storms, or other causes beyond the control of the BUILDER or of its subcontractors, as the case may be, or by destruction of the BUILDER or works of the BUILDER or its subcontractors, or of the VESSEL or any part thereof, by fire, flood,
or other causes beyond the control of the SELLER or its subcontractors as the case may be, or due to the bankruptcy of the equipment and/or material supplier or suppliers, or due to the delay caused by acts of God in the supply of parts essential to
the construction of the vessel, then, in the event of delay due to the happening of any of the aforementioned contingencies, the SELLER shall not be liable for such delay and delivery date shall be extended without any reduction in the Contract
Price for a period of time which shall not exceed the total accumulated time of all such delays, subject nevertheless to the BUYER’s right of cancellation under Paragraph 3 of this Article and subject however to all relevant provisions of this
Contract which authorize and permit extension of the time of delivery of the VESSEL. 
  

	2.	 NOTICE OF DELAY 

Within seven (7) days from the date of commencement of any delay on account of which the SELLER claims that it is entitled under this
Contract to postponement of the Delivery Date, the SELLER shall advise the BUYER by telefax or email confirmed in writing, of the date such delay commenced, and the reasons therefor. 

Likewise within seven (7) days after such delay ends, the SELLER shall advise the BUYER in writing or by telefax or email confirmed in
writing, of the date such delay ended, and the period by which the Delivery Date is to be postponed by reason of such delay failing which the SELLER shall be deemed to have waived any right to make such a postponement. Failure of the BUYER to
acknowledge the SELLER’s notification of any claim for extension of the Delivery Date within thirty (30) days after receipt by the BUYER of such notification, shall be deemed to be a waiver by the BUYER of its right to object to such
extension. 
  

	3.	 RIGHT TO CANCEL FOR EXCESSIVE DELAY 

If either: 
 a) the total accumulated
time of all delays on account of the causes specified in Paragraph 1 of the Article aggregate to Two Hundred and Ten (210) days or more, or 

b) if the total accumulated time of all Permissible Delays and non-Permissible 

  

					
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 Delays aggregate to Two Hundred and Thirty (230) days or more, excluding
(i) delays due to arbitration as provided for in Article XIII hereof (ii) delays due to default in performance by the BUYER, (iii) delays due to delays in delivery of the BUYER’s supplied items, (iv) delays due to modifications
and changes arising pursuant to Article V and (v) delays arising pursuant to Article XII hereof, which in each case under the Contract permit extension or postponement of the time for delivery of the VESSEL, 

then in the case of either a) or b) of this Article Vlll.3, the BUYER may cancel this Contract by serving upon the BUILDER telefaxed or telexed
notice of cancellation (such cancellation shall be effective as of the date the notice thereof is received by the BUILDER) which shall be confirmed in writing and upon receipt of such demand the SELLER shall make a full refund to the BUYER in
accordance with Article X.3 of this Contract. The SELLER may, at any time, after the accumulated time of the aforementioned delays justifying cancellation by the BUYER as above provided for, demand in writing that the BUYER shall make an election,
in which case the BUYER shall, within Thirty (30) days after such demand is received by the BUYER either notify the SELLER of its intention to cancel, or consent to an extension of the time for delivery to an agreed future date, it being
understood and agreed by the parties hereto that, if the BUYER elects to consent to the delivery of the Vessel at such agreed future date: 

  i) such agreed future date shall be the contractual Delivery Date for the purposes of this Contract and shall be
subject to extension by reason of Permissible Delay as herein provided; and 
   ii) if the Vessel is not delivered
by such revised contractual Delivery Date (as extended by reason of Permissible Delays) the BUYER shall have the same right of cancellation upon the same terms as herein above provided. 

 

	4.	 DEFINITION OF PERMISSIBLE DELAY 

Delays on account of such causes as provided for in Paragraph 1 of this Article 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 (and are herein referred to as) “Permissible Delays”, and are to be distinguished from nonpermissible delays on account of which the Contract Price of the VESSEL
is subject to adjustment as provided for in Article III hereof. 

  

					
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 ARTICLE IX - WARRANTY OF QUALITY 

 

	1.	 GUARANTEE OF MATERIAL AND WORKMANSHIP 

  

	(a)	 The SELLER guarantees the VESSEL, her hull and machinery and all accessories, parts and equipment thereof that are manufactured or furnished or
supplied by the BUILDER’s shipyard and/or subcontractors under this Contract, against all defects which are due to defective materials, and/or poor workmanship and/or inadequate or faulty design and/or constructional miscalculation on the part
of the BUILDER’s shipyard and/or its subcontractors and which are discovered within a period of twelve (12) months following delivery to and acceptance by the BUYER of the VESSEL. This warranty includes any defects notified in writing by
the BUYER on the VESSEL’s delivery due to such causes but excludes faults in design and construction where the BUILDER has altered the design and construction of the VESSEL as a result of calculations and plans provided by the BUYER.

  

	(b)	 Replacement and repairs carried out by the SELLER under the guarantee shall be subject to guarantee in accordance with this Article IX, provided that
the guarantee period in respect of such replacements and repairs shall start at the date of completion thereof and provided that the total guarantee period shall never exceed a period of Eighteen (18) months after delivery to and acceptance by
the BUYER of the VESSEL. 

  

	2.	 NOTICE OF DEFECTS 

The BUYER shall notify the SELLER in writing, or by telefax or email confirmed in writing, as promptly as possible, no later than fifteen
(15) days after discovery of any defect or deviations for which a claim is made under this guarantee. The BUYER’s written notice shall describe the nature of the defect and the extent of the damage caused thereby. The SELLER shall have no
obligation under this guarantee for any defects discovered prior to the expiry date of the guarantee, unless notice of such defects, is received by the SELLER not later than fifteen (15) days after such expiry date. Telefaxed or emailed advice
with brief details explaining the nature of such defect and extent of damage within fifteen (15) days after such expiry date and that a claim is forthcoming will be sufficient compliance with the requirements as to time. 

 

	3.	 REMEDY OF DEFECTS 

The SELLER shall remedy at its expense any defects, against which the VESSEL or any part of the equipment thereof is guaranteed under this
Article by making all necessary repairs and/or replacement. Such repairs and/or replacement will be made by the SELLER. 
 However, if it is
impractical for the repair to be carried out by the SELLER, or if the SELLER cannot forward replacement parts and materials without impairing or delaying the operation or working of the VESSEL, then the BUYER shall arrange for the necessary repairs
or replacements to be carried out elsewhere at the discretion of the BUYER provided that the BUYER shall first and as soon as possible, give the SELLER notice in writing, or by telefax or email confirmed in writing of the time and place when and
where such repairs will be made and, if the VESSEL is not thereby delayed, or her operation or working is not thereby delayed, or her operation or 

  

					
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 working is not thereby impaired, the SELLER shall have the right to verify by its own
representative(s) or that of Classification Society the nature and extent of the defects complained of. The SELLER shall, in such cases, promptly advise the BUYER, by telefax or email confirmed in writing, after such examination has been completed,
of its acceptance or rejection of the defects as being covered by the guarantee herein provided. In all minor cases, the Guarantee Engineer, as hereinafter provided for, will act for and on behalf of the SELLER. 

In any circumstances as set out below, the SELLER shall pay to the BUYER in United States Dollars by telegraphic transfer whichever is the lower
of (i) the actual cost for such repairs or replacements including forwarding charges, and (ii) the average cost for making similar repairs or replacements including forwarding charges, such average costs shall be the average of a quotation
obtained by the BUYER from a leading shipyard each in China, Singapore or Hong Kong, and a quotation obtained by the SELLER from a leading shipyard in China, Singapore or Hong Kong. The quotations shall be obtained within Fifteen (15 ) days from the
date of the relevant notice of defect under Article IX.2. Should either of the BUYER or the SELLER fail to obtain such quotation within the stipulated time, then the quotation duly obtained by the other by such time shall be the sole basis for the
average cost for making such repairs: 
  

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

 

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

 In any case, the Vessel shall be taken at the BUYER’s cost and responsibility to
the place selected ready in all respects for such repairs or replacements and in any event, the BUILDER shall not be responsible for towage, dockage, wharfage, port charges and anything else incurred for the BUYER’s getting and keeping the
Vessel for such repairing or replacing. 
 If the guarantee works are carried out by the BUYER’s personnel the work will be paid for by
the SELLER against presentation of the damage report and a statement of the hours worked, unless however the BUYER’s personnel’s repair concern minor deficiencies, in which case the SELLER shall not pay for the repair work. The hourly
remuneration shall be                     ). 

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

 

	4.	 EXTENT OF THE SELLER’S LIABILITY 

The SELLER shall have no obligation and/or liabilities with respect to defects discovered after the expiration of the period of guarantee
specified above. 
 The SELLER shall be liable to the BUYER for defects and damages caused by any of the defects specified in Paragraph 1 of
this Article provided that such liability of 

  

					
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 the SELLER shall be limited to damage occasioned within the guarantee period specified in
Paragraph 1 above. The SELLER shall not be obliged to repair, or to be liable for, damages to the VESSEL, or to any part of the equipment thereof, due to ordinary wear and tear or caused by the defects other than those specified in Paragraph 1
above, nor shall there be any SELLER’s liability hereunder for defects in the VESSEL, or any part of the equipment thereof, caused by fire or accidents at sea or elsewhere, or mismanagement, over loading, improper loading, improper towage,
accidents, negligence, or willful neglect, on the part of the BUYER, its employees or agents including the VESSEL’s officers, crew and passengers, or any persons on or doing work on the VESSEL other than the SELLER, its employees, agents or
subcontractors. Likewise, the SELLER shall not be liable for defects in the VESSEL, or the equipment or any part thereof, due to repairs or replacement which were made by those other than the SELLER and/or their subcontractors. 

Upon delivery of the VESSEL to the BUYER, in accordance with the terms of the Contract, the SELLER shall thereby and thereupon be released from
all responsibility and liability whatsoever and howsoever arising under or by virtue of this Contract (save in respect of those obligations to the BUYER expressly provided for in this Article IX) including without limitation, any responsibility or
liability for defective workmanship, materials or equipment, design or in respect of any other defects whatsoever and any loss or damage resulting from any act, omission or default of the SELLER. The BUILDER shall, in no circumstances, be liable for
any consequential loss or special loss, or expenses arising from any cause whatsoever including, without limitation, loss of time, loss of profit or earnings or demurrage directly from any commitments of the BUYER in connection with the VESSEL. 

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

This Guarantee shall also benefit the BUYER’s successors and assigns by whom it shall be directly enforceable. 

 

	5.	 GUARANTEE ENGINEER 

The BUILDER may appoint subject to BUYER’s agreement, one Guarantee Engineer to serve the VESSEL as the BUILDER’s representative for a
period of three (3) months from the delivery of the VESSEL. The BUYER, and its employees, shall give such Guarantee Engineer full cooperation in carrying out his duties as the representative of the BUILDER on board the VESSEL. The BUYER shall
accord the Guarantee Engineer the treatment comparable to the VESSEL’s Chief Engineer, and shall provide him with accommodation and subsistence at no cost to the BUILDER and/or the Guarantee Engineer. 

The BUYER shall pay to the Guarantee Engineer the sum of United States Dollars
                    per month to cover his/their miscellaneous expenses including wages and also the BUYER shall pay the expense of 

  

					
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 repatriation to the Country of Construction by air upon termination of his service, the expense
of his communications with the BUILDER when made in performance of his duties as the Guarantee Engineer. The Guarantee Engineer shall at all times remain the employee of the BUILDER and the SELLER shall indemnify the BUYER for all claims for his
death or personal injury, or loss of or damage of his property whilst on board the VESSEL unless such death, injury, loss or damage has resulted from the willful misconduct of the BUYER, his crew or employees. 

The BUYER has the option in its absolute discretion to require the SELLER to assign to it the SELLER’s rights against one or more of the
SELLER’s sub­contractors at any time before or during the SELLER’s warranty period. If the option is exercised before delivery of the VESSEL, the SELLER shall deliver a validly executed assignment of such rights to the BUYER in
accordance with the provisions of Article VII 3. If this option is exercised after delivery of the VESSEL, the SELLER shall deliver such an assignment within 21 days of receiving the BUYER’s written request to do so. 

  

					
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 ARTICLE X - CANCELLATION, REJECTION AND 

RESCISSION BY THE BUYER 
  

	1.	 The BUYER shall, in addition to its other rights of cancellation and/or rescission hereunder, be entitled to rescind this Contract should any of the
following events occur: 

 The filing of a petition or the making of an order or the passing of an effective
resolution for the winding up of the BUILDER (other than for the purpose of reconstruction or amalgamation which has been previously approved in writing by the BUYER), or the appointment of a receiver of the undertaking or property of the BUILDER,
or the insolvency of, or the suspension of payments by, the BUILDER, or the cessation of the carrying on of business, or the cessation of the construction of the VESSEL, by the BUILDER, or the making by the BUILDER of any special arrangement or
composition with the creditors of the BUILDER. 
 The Buyer shall additionally have no obligation to make payment of any unpaid
instalment of the Contract Price during the continuance of any of the events referred to above. 
  

	2.	 All payments made by the BUYER prior to the delivery of the VESSEL shall be in the nature of advance to the SELLER. In the event the BUYER shall
exercise its right of cancellation and/or rescission of this Contract under and pursuant to any of the provisions of this Contract specifically permitting the BUYER to do so, then the BUYER shall notify the SELLER in writing or by telefax or email
confirmed in writing, and such cancellation and/or rescission shall be effective as of the date the notice thereof is received by the SELLER. 

  

	3.	 Thereupon the SELLER shall immediately refund to the BUYER in United States dollars the full amount of all sums paid by the BUYER to the SELLER on
account of the VESSEL and the cost of the BUYER’s Supplied Items, if any, or return such supplies where possible, unless the SELLER disputes the BUYER’s cancellation or rescission by instituting arbitration in accordance with Article XIII.
If the BUYER’s cancellation or rescission of this Contract is disputed by the SELLER by instituting arbitration as aforesaid, then no refund shall be made by the SELLER, and the BUYER shall not be entitled to demand repayment from SELLER’s
bank under its guarantee, until the arbitration award between the BUYER and the SELLER or, in case of appeal or appeals by the SELLER against the arbitration award or any court order, by the final court order, which shall be in favour of the BUYER,
is made by the arbitration tribunal or final competent London Court having jurisdiction over the dispute. The SELLER shall pay interest in United States Dollars at the rate of six percent (6%) per annum on the amount required to be refunded
(computed from the date(s) the relevant sums were received in the SELLER’s bank account from the BUYER in accordance with the provisions of this Contract to the date of remittance by telegraphic transfer of such refund to the BUYER by the
SELLER) if the Contract is cancelled or rescinded for any reason except in the event of total loss as described in Article XII, in which case no interest will be paid. 

  

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

  

					
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 ARTICLE XI - BUYER’S DEFAULT 

 

	1.	 DEFINITION OF DEFAULT 

Subject to Article XI paragraph 2 below the BUYER shall be deemed in default of its obligations under the Contract if any of the following events
occurs: 
  

	(a)	 The BUYER fails to pay the First or Second instalment to the SELLER within Five (5) New York banking days after such instalment becomes due and
payable under the provisions of Article II hereof; or 

  

	(b)	 The BUYER fails to pay the final instalment to the SELLER concurrently with the delivery of the Vessel by the SELLER to the BUYER as provided in
Article II hereof; or 

  

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

  

	(d)	 The filing of a petition or the making of an order or the passing of an effective resolution for the winding up of the BUYER (other than for the
purpose of reconstruction or amalgamation which has been previously approved in writing by the SELLER), or the appointment of a receiver of the undertaking or property of the BUYER, or the insolvency of, or the suspension of payments by, the BUYER,
or the cessation of the carrying on of business, or the making by the BUYER of any special arrangement or composition with the creditors of the BUYER. 

  

	2.	 NOTICE OF DEFAULT 

If the BUYER is in default of payment or in performance of its obligations as provided hereinabove, the SELLER shall notify the BUYER to that
effect by telefax or email and the BUYER shall forthwith acknowledge by telefax or email to the SELLER that such notification has been received. If the BUYER does not so acknowledge within two (2) days such notification shall be deemed to have
been duly received by the BUYER. 
  

	3.	 INTEREST AND CHARGE 

  

	(a)	 If the BUYER is in default of payment as to any instalment as provided in Paragraph 1 (a) and/or 1 (b) of this Article, the BUYER shall pay
interest on such instalment the rate of six percent (6.0%) per annum until the date of the payment of the full amount, including interest. In case the BUYER shall fail to take delivery of the VESSEL as provided in Paragraph 1 (c) of this
Article, the BUYER shall be deemed to be in default of payment of the Final instalment and shall pay interest thereon at the same rate as aforesaid from and including the day on which the VESSEL is tendered for delivery by the SELLER.

  

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

  

	4.	 DEFAULT BEFORE DELIVERY OF THE VESSEL 

  

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

  

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

  

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

 

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

  

	 	(iii.)	 In the case the BUYER fails to dispute the SELLER’s right of cancellation or rescission of this Contract within twenty (20) days after
receipt of the notice as above from the SELLER, it shall be deemed that the BUYER has accepted such cancellation or rescission. 

  

	5.	 SALE OF THE VESSEL 

  

	(a)	 In the event of cancellation or rescission of this Contract as above provided, the SELLER shall have full right and power either to complete or not to
complete the VESSEL as it deems fit, and to sell the VESSEL at the best price reasonably obtainable at a public or private sale on reasonable terms and conditions. 

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

 

	(b)	 In the event of the sale of the VESSEL in its completed state, the proceeds of sale received by the SELLER shall be applied firstly to payment of all
expenses attending such sale and otherwise incurred by the SELLER as a result of the BUYER’s default, and then to payment of all unpaid instalments and/or unpaid balance of the Contract Price and interest on such instalment at the interest rate
as specified in the relevant provisions set out above from the respective due dates thereof to the date of application. 

  

	(c)	 In the event of the sale of the VESSEL in its incomplete state, the proceeds of sale received by the SELLER shall be applied firstly to all expenses
attending such sale and otherwise incurred by the SELLER as a result of the BUYER’s default, and then to payment of all costs of construction of the VESSEL (such costs of construction shall include but are not limited to all costs of labour
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 design and/or materials purchased or to be purchased, installed and/or to be
installed on the VESSEL) and/or any fees, charges, expenses and/or royalties incurred and/or to be incurred for the VESSEL less the instalments so retained by the SELLER, and compensation to the SELLER for a reasonable sum of loss of profit due to
the cancellation or rescission of this Contract. 
  

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

  

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

  

					
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 ARTICLE XII - INSURANCE 

 

	1.	 EXTENT OF INSURANCE COVERAGE 

The SELLER shall, at its own cost and expense keep the VESSEL and all machinery, materials, equipment, appurtenances and outfit, delivered to the
SELLER’s shipyard for the VESSEL or built into, or installed in or upon the VESSEL, including items of equipment furnished by the BUYER, fully insured with a first class insurance company, to be mutually agreed, from the date of laying the keel
of the VESSEL, until same is completed, delivered to and accepted by the BUYER, under coverage equivalent to the Institute Clauses for Builders Risks but including earthquakes and volcanic eruptions, the Institute War Clauses for Builders Risks and
Institute Strikes Clauses for Builders’ Risks. A copy of the SELLER’s insurance policy in general and in particular for the VESSEL shall be sent to the BUYER. 

The amount of such insurance coverage shall up to the date of delivery of the VESSEL be in an amount at least equal to the Contract Price plus
the value of the BUYER’s Supplies. The policy referred to hereinabove shall be taken out in the name of the SELLER and all losses under such policy shall be payable to the SELLER. 

 

	2.	 APPLICATION OF RECOVERED AMOUNT 

  

	(a)	 Partial Loss: 

In the event the VESSEL shall be damaged by any insured cause whatsoever prior to acceptance and delivery thereof by the BUYER
and in the further event that such damage shall not constitute an actual or a constructive total loss of the VESSEL, the SELLER shall apply the amount recovered under the insurance policy referred to in Paragraph 1 of this Article to the repair of
such damage to the satisfaction of the Classification Society and other institutions or authorities as described in the Specifications without additional expenses to the BUYER, and the BUYER shall accept the VESSEL under this Contract if completed
in accordance with this Contract and Specifications. 
  

	(b)	 Total Loss: 

However, in the event that the VESSEL is determined to be an actual or constructive total loss, the SELLER shall either: 

 

	 	(i.)	 by the mutual agreement between the parties hereto, proceed in accordance with terms of this Contract, in which case the amount recovered under said
insurance policy shall be applied to the reconstruction and/or repair of the VESSEL’s damages and/or reinstallation of BUYER’s supplies without additional expenses to the BUYER, provided the parties hereto shall have first agreed in
writing to such reasonable extension of the Delivery Date and adjustment of other terms of this Contract including the Contract Price as may be necessary for the completion of such reconstruction; or 

 

	 	(ii.)	 if for whatever reason the parties fail to agree on the above, then refund immediately to the BUYER the amount of all instalments paid to the SELLER
under this Contract together with recovered amount for BUYER’s supplies 

  

					
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 onboard, whereupon this Contract shall be deemed to be cancelled and all rights,
duties, liabilities and obligations of each of the parties to the other shall terminate forthwith. 
 Within thirty (30) days after
receiving telefax or email, confirmed in writing, notice of any damage to the VESSEL constituting an actual or a constructive total loss, the BUYER shall notify the SELLER in writing or by telefax or email, confirmed in writing, of its agreement or
disagreement under this subparagraph. In the event the BUYER fails to so notify the SELLER, then such failure shall be construed as a disagreement on the part of the BUYER. This Contract shall be deemed as rescinded and cancelled and the BUYER
receive the refund as hereinabove provided and the provisions hereof shall apply. 
 Once all payments have been made by the Seller to the
Buyer in accordance with sub-paragraph 2(b) above the Contract shall be deemed terminated and all future rights and obligations of each of the parties to the other shall cease, whereupon the guarantees provided under this Contract shall be returned.

  

	3.	 TERMINATION OF THE SELLER’S OBLIGATION TO INSURE 

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

  

					
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 ARTICLE XIII - DISPUTES AND ARBITRATION 

 

	1.	 PROCEEDINGS 

  

	(a)	 

  

	 	(i.)	 Any dispute arising out of or in connection with this Contract shall be referred to arbitration in London in accordance with the Arbitration Act 1996
or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Article. 

  

	 	(ii.)	 The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the
arbitration proceedings are commenced. 

  

	 	(iii.)	 The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such
appointment in writing to the other party requiring the other party to appoint its own arbitrator within 20 calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own
arbitrator and gives notice that it has done so within the 20 days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the 20 days specified, the party referring a dispute to arbitration may,
without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if he had been
appointed by agreement. 

  

	 	(iv.)	 Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator.

  

	(b)	 Notwithstanding the above, the parties may agree at any time to refer to mediation any difference and/or dispute arising out of or in connection with
this Contract. 

  

	(c)	 In the case of a dispute in respect of which arbitration has been commenced under the above, the following shall apply: 

 

	 	(i.)	 Either party may at any time and from time to time elect to refer the dispute or part of the dispute to mediation by service on the other party of a
written notice (the “Mediation Notice”) calling on the other party to agree to mediation. 

  

	 	(ii.)	 The other party shall thereupon within 14 calendar days of receipt of the Mediation Notice confirm that they agree to mediation, in which case the
parties shall thereafter agree a mediator within a further 14 calendar days, failing which on the application of either party a mediator will be appointed promptly by the Arbitration Tribunal (“the Tribunal”) or such person as the Tribunal
may designate for that purpose. The mediation shall be conducted in such place and in accordance with such procedure and on such terms as the parties may agree or, in the event of disagreement, as may be set by the mediator. 

  

					
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	 	(iii.)	 If the other party does not agree to mediate, that fact may be brought to the attention of the Tribunal and may be taken into account by the Tribunal
when allocating the costs of the arbitration as between the parties. 

  

	 	(iv.)	 The mediation shall not affect the right of either party to seek such relief or take such steps as it considers necessary to protect its interest.

  

	 	(v.)	 Either party may advise the Tribunal that they have agreed to mediation. The arbitration procedure shall continue during the conduct of the mediation
but the Tribunal may take the mediation timetable into account when setting the timetable for steps in the arbitration. 

  

	 	(vi.)	 Unless otherwise agreed or specified in the mediation terms, each party shall bear its own costs incurred in the mediation and the parties shall share
equally the mediator’s costs and expenses. 

  

	 	(vii.)	 The mediation process shall be without prejudice and confidential and no information or documents disclosed during it shall be revealed to the
Tribunal except to the extent that they are disclosable under the law and procedure governing the arbitration. 

  

	2.	 ALTERNATIVE ARBITRATION BY AGREEMENT 

Any dispute which may arise between the BUILDER and the BUYER during the construction of the VESSEL in relation to any workmanship or materials
or nonconformity with the Specifications, which is alleged by or on behalf of the BUYER, but which is not accepted by the BUILDER, shall be referred to the Classification Society, who shall act as an expert and not as an arbitrator and the decision
of the Classification Society shall be conclusive of any matters in dispute so referred to it and shall be final and binding upon the BUILDER and BUYER. 
  

	3.	 ALTERATION OF DELIVERY TIME 

In the event of reference to arbitration of any dispute arising out of matters occurring prior to delivery of the VESSEL, the SELLER shall not be
entitled to postpone the Delivery Date unless the construction of the VESSEL is affected by any arbitration or court proceeding, in which case the SELLER shall be permitted to postpone the Delivery Date and the decision or the award shall include a
finding as to what extent the SELLER shall be permitted so to do. 

  

					
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 ARTICLE XIV - RIGHT OF ASSIGNMENT 

 

	1.	 SELLER’S ASSIGNMENT 

  

	1.	 The SELLER shall not assign this Contract unless prior consent of the BUYER is given in writing. Such consent shall not be unreasonably withheld.

 BUYER’S ASSIGNMENT OR NOVATION BEFORE DELIVERY 

 

	2.	 The BUYER and his successors (which word shall include transferees by way of assignment, novation or otherwise) shall have the right, by assignment,
novation or otherwise, to transfer the Contract (in respect of all its rights and obligations hereunder) before delivery of the vessel provided only that: 

The BUYER shall, prior to the date of transfer, procure and deliver to the SELLER a written undertaking signed by the authorized
representative of the successor (to whom all rights, benefits, obligations and liabilities and this Contract including this right to assign, novate or otherwise transfer are transferred pursuant to the terms hereof) which carries such effect that
the successor shall become liable to the SELLER and perform all its obligations in place of the transferor under the Contract which include but is not limited to taking delivery of the VESSEL; and 

The transferor shall cease to have any right and benefit under this Contract; and 

The BUYER and his successors at all times shall have the right to transfer, by way of assignment or otherwise, the Contract to
their financiers for the purpose of securing the BUYER’s financing; and 
 The SELLER shall not, by virtue of any
transfer, have additional obligations, risks and costs other than those existing prior to the date of transfer; and 
 The
BUYER shall make best endeavour to retain the technical management of the Contract and the supervision at the BUILDER’S shipyard for the duration of the building period, irrespective of the transfer of the Contract. In any event, should there
be a change of the supervision team, it shall be agreed by the SELLER provided the construction of the VESSEL will not be affected or delayed due such change of the supervision; and 

The SELLER has given his consent to let the BUYER transfer the Shipbuilding Contract at any such time it may fit into the
BUYER’s plans, provided always the BUYER will (1) appoint the supervision team during the construction period and (2) remain responsible for the BUYER’s contractual obligations till the time of delivery. 

The option to transfer this contract gives, inter alia, the BUYER the right to appoint an transferee/nominee prior to the actual
delivery and if so done, the SELLER will deliver the VESSEL in favour of the transferee/nominee and issue all relevant delivery documents and certificates accordingly. 

The “Warranty of Quality” clause in the Shipbuilding Contracts (Article IX) shall apply in favour of the BUYER’s
transferee or nominee, also if such transferee/nominee will be appointed after delivery of the respective vessels, 

  

					
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and the transferee/nominee step into the shoes of the BUYER and shall handle claims, if any, under Article IX. 

It is understood and agreed by the BUYER and the SELLER that such transfer of the Contract between the BUYER and his successors
shall only be performed with the Seller’s prior written consent and such consent shall not be unreasonably withheld. 

  

					
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 ARTICLE XV - TAXES AND DUTIES 

 

	1.	 TAXES 

 All taxes
including stamp duties, if any, incurred in connection with this Contract in Country of Construction shall be borne by the SELLER. Any taxes and/or duties wheresoever imposed upon those items or services procured by the SELLER in the Country of
Construction or elsewhere for the construction of the VESSEL shall be borne by the SELLER. 
  

	2.	 INDEMNITY 

 The
SELLER shall indemnify the BUYER for, and hold it harmless against, any taxes or duties imposed in the Country of Construction upon materials and equipment which under the terms of this Contract and/or the Specifications will, or may be, supplied by
the BUYER from the abroad for installation in the VESSEL as well as any duties imposed in the Country of Construction upon running stores, provisions and supplies furnished by the BUYER from abroad to be stocked on board the VESSEL including
BUYER’s Supplied Items and also from the payment of export duties, if any, to be imposed upon the VESSEL as a whole or upon any of its parts or equipment. 

Any tax or duty other than those described above shall be borne by the BUYER. 

  

					
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 ARTICLE XVI - PATENTS, TRADEMARKS AND 

COPYRIGHTS 
 The machinery and
equipment of the VESSEL may bear the patent number, trademarks or trade names of the manufacturers. The SELLER shall defend and hold harmless the BUYER from patent liability or claims of patent infringement of any nature or kind, including costs and
expenses for, or on account of any patented or patentable invention made or used in the performance of this Contract and also including cost and expense of litigation, if any. 

Nothing contained herein shall be construed as transferring any patent or trademark rights or copyright in equipment covered by this Contract,
and all such rights are hereby expressly reserved to the true and lawful owners thereof. Notwithstanding any provisions contained herein to the contrary, the SELLER’S obligation under this Article shall not be terminated by the passage of any
specified period of time. 
 The SELLER’s indemnity hereunder does not extend to equipment or parts supplied by the BUYER to the BUILDER
if any. 

  

					
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 ARTICLE XVII - NOTICE 

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

 

					
	To the BUYER	  	 :
	  	
			
	Address	  	 :
	  	
			
	Attn	  	 :
	  	
	Tel No.	  	 :
	  	
	Telefax No.	  	 :
	  	
	E-mail	  	 :
	  	
			
	To the Trading Co.:	  		  	
	
	Jiangsu Tianyuan Marine Import And Export Co., Ltd.
	Address:	  	 Room 1309, No.217, North Zhongshan Road, Nanjing City,

Jiangsu Province, People’s Republic of China

			
	Attn.	  	 :
	  	
	Tel No.	  	 :
	  	
	Telefax No.	  	 :
	  	
	E-mail	  	 :
	  	
			
	To the BUILDER:	  		  	
	
	Jiangsu New Yangzi Shipbuilding Co., Ltd.
	Address	  	 :
	  	 1# Lianyi Road, Jiangyin-jingjiang Industry Zone, Jingjiang

City, Jiangsu Province, People’s Republic of China

			
	Attn.	  	 :
	  	
	Tel No.	  	 :
	  	
	Telefax No.	  	 :
	  	
	E-mail	  	 :
	  	
	
	Jiangsu Yangzijiang Shipbuilding Co., Ltd.
	Address	  	 :
	  	 38# Shiyugang Road, Jiangyin City, Jiangsu Province,

People’s Republic of China

			
	Attn.	  	 :
	  	
	Tel No.	  	 :
	  	
	Telefax No.	  	 :
	  	
	E-mail	  	 :
	  	

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

Any and all notices, requests, demands, instructions, advice and communications in connection with this Contract shall be deemed to be received
at, and shall become 

  

					
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effective from, the time when the same is delivered to the address of the party to be served, provided, however, that registered airmail shall be deemed to be delivered ten (10) days after
the date of dispatch, express courier service shall be deemed to be delivered five (5) days after the date of dispatch, and telefax acknowledged by the answerbacks shall be deemed to be delivered upon dispatch. 

Any and all notices, communications, Specifications and drawings in connection with this Contract shall be written in the English language and
each party hereto shall have no obligation to translate them into any other language. 
 Any and all provisions in the Contract for notices,
requests, demands, instructions, advice and communication to be done by telefax or email, followed by written confirmation. 

  

					
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            ) 
  

 ARTICLE XVIII - EFFECTIVE DATE OF CONTRACT 

This Contract shall become effective upon fulfillment of all the following conditions: 
  

	1.	 Signing of this Contract and the Specifications; and 

  

	2.	 Approval of board of directors of the Buyer which will be declared by the Buyer to the Seller latest on 21 days from date of this Contract; and

  

	3.	 Receipt by the BUYER of a Refund Guarantee in the form annexed hereto as Exhibit A issued by the SELLER’s Bank (such bank to be acceptable to the
BUYER’s bank and the BUYER) in accordance with Article II paragraph 7 hereof. 

 If any one or more of the above
conditions fail to be fulfilled on or before latest                      from the date of this CONTRACT, unless otherwise mutually agreed, then this
Contract shall automatically become null and void. 

  

					
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 ARTICLE XIX - INTERPRETATION 

 

	1.	 LAW APPLICABLE 

The parties hereto agree that the validity and interpretation of this Contract and of each Article and part hereof be governed by and interpreted
in accordance with the Laws of England. If, notwithstanding the provisions of this clause, either party commences legal proceedings, either by way of court action or arbitration or otherwise, in any jurisdiction other than England and Wales, the
party who has commenced such proceedings shall indemnify the other party and hold them harmless in respect of any loss or damage the other party may suffer as a result. 
  

	2.	 DISCREPANCIES 

All general language or requirements embodied in the Specifications are intended to amplify, explain and implement the requirements of this
Contract. However, in the event that any language or requirements so embodied in the Specifications permit an interpretation inconsistent with any provision of this Contract, then in each and every such event the applicable provisions of this
Contract shall govern. The Specifications and plans are also intended to explain each other, and anything shown on the plans and not stipulated in the Specifications or stipulated in the Specifications and not shown on the plans, shall be deemed and
considered as if embodied in both. In the event of conflict between the Specifications and plans, the Specifications shall govern. 
 However,
with regard to such inconsistency or contradiction between this Contract and the Specifications as may later occur by any change or changes in the Specifications agreed upon by and among the parties hereto after execution of this Contract, then such
change or changes shall govern. 
  

	3.	 DEFINITION 

  

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

  

	(b)	 Reference to times, days, banking days and business days shall all be construed as meaning London times, days, banking days and business days.

  

	(c)	 “Country of Construction” shall mean the country in which the BUILDER’s shipyard is located. 

 

	(d)	 “Effective Date” shall mean the date on which this Contract becomes effective in accordance with the provisions of Article XVIII.

  

	(e)	 “Specifications” shall have the meaning ascribed to it in Article I. 

 

	(f)	 “Classification Surveyor” shall have the meaning ascribed to it in Article I. 

 

	(g)	 “VESSEL” shall have the meaning ascribed to it in Article I. 

 

	(h)	 “Classification Society’’ shall mean              or such other society as
the parties may agree. 

  

					
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            ) 
  

	(i)	 “Maker’s List” shall mean an agreed list of suppliers approved for provision of equipment, machinery and services, as included in the
Specifications (see Article I). 

  

	(j)	 “Delivery Date” and “Scheduled Delivery Date” shall have the meanings ascribed to them in Article VII .1. 

 

	(k)	 “Contract Price” shall have the meaning ascribed to it in Article II.1. 

 

	(I)	 “BUYER’s Supplied Items” shall have the meaning ascribed to it in Article V.4. 

 

	(m)	 “Guarantor” shall mean the bank which provides the Buyer’s Letter of Guarantee as required by Article II.6 and XVlll.8.

  

	(n)	 “Supervisors” shall mean the BUYER’s Supervisors as defined in Article IV.1(a). 

 

	(o)	 “Trial Run” shall have the meaning ascribed to it in Article VI. 

 

	(p)	 “Plans” and “Drawings” shall mean the plans and drawings set out in the LIST (as defined in Article IV.2) 

 

	(q)	 “Keel laying” shall mean when two or more new sections (abt 100t steel each) of the VESSEL have been constructed. 

 

	(r)	 “Permissible Delay” shall have the meaning ascribed to it in Article VIII 4. 

 

	(s)	 “Cancelling Date” shall have the meaning ascribed to it in Article Ill 1 (c). 

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

FOR AND ON BEHALF OF THE BUYER: 
  

			
	By :	 	
	 Name : 
 Title : 

	
	  
 FOR AND ON BEHALF OF THE SELLER:

	
	The Trading House:
	Jiangsu Tianyuan Marine Import And Export Co., Ltd.

			
		
	By :	 	
	 Name : 
 Title : 

  
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
  

			
	 The BUILDER:

		
	By :	 	
	Name :                     
	Title :                     

  

			
	Jiangsu Yangzijiang Shipbuilding co., Ltd.
		
	By :	 	
	Name :                     
	Title :                     
	
	Witness :

  
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 Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.
            ) 
 ARTICLE XX - Exhibit “A” : REFUND GUARANTEE 

TO:
[                              ] 

ADD.:
[                                    ] 

OUR REF. NO.:
[                    ] 

ISSUING DATE: [                    ]

 WE, [        bank
name                    ], WHOSE REGISTERED OFFICE IS AT
[                    ] REFER TO THE SHIPBUILDING CONTRACT NO.:
                     DATED                     
BETWEEN JIANGSU TIANYUAN MARINE IMPORT AND EXPORT CO., LTD WITH ITS REGISTERED OFFICE AT ROOM 1309, N0.217, NORTH ZHONGSHAN ROAD, NANJING CITY, JIANGSU PROVINCE, P. R. CHINA AND JIANGSU NEW YANGZI SHIPBUILDING CO.,LTD. WITH ITS REGISTERED OFFICE AT
NO. 1 LIANYI ROAD, JIANGYIN-JINGJIANG INDUSTRY ZONE, JINGJIANG CITY, JIANGSU PROVINCE, P.R.CHINA AND JIANGSU YANGZIJIANG SHIPBUILDING CO. LTD. WITH ITS REGISTERED OFFICE AT NO. 38 SHIYUGANG ROAD, JIANGYIN CITY, JIANGSU PROVINCE, P.R.CHINA
(HEREINAFTER COLLECTIVELY CALLED THE ‘SELLER’) AND                      (HEREINAFTER CALLED THE ‘ORIGINAL BUYER’), HEREINAFTER
CALLED THE ‘ORIGINAL CONTRACT’) FOR THE CONSTRUCTION AND DELIVERY OF 1 (ONE) 82,000 DWT KAMSARMAX BULK CARRIER WITH YARD’S HULL NO.
                     (HEREINAFTER CALLED THE ‘VESSEL’). THE ORIGINAL CONTRACT WAS NOVATED BY THE ORIGINAL BUYER TO
[             novatee                ], WITH ITS REGISTERED OFFICE AT
[                    ] (HEREINAFTER CALLED THE ‘BUYER’) PURSUANT TO A NOVATION AGREEMENT BY AND AMONGST THE SELLER, THE ORIGINAL
BUYER AND THE BUYER WHICH WAS DATED ON [                    ], 2013 (THE ‘ORIGINAL CONTRACT’ AS NOVATED BY THE ORIGINAL BUYER TO THE
BUYER, HEREINAFTER COLLECTIVELY CALLED THE ‘CONTRACT’). 
 ACCORDING TO THE PROVISIONS OF THE CONTRACT, THE BUYER IS OBLIGED TO
EFFECT THE ADVANCE PAYMENT TO THE SELLER, BEING THE FIRST, AND SECOND, (1ST AND 2ND) INSTALMENTS AS FOLLOWS: 
 1. ON SIGNING OF THE CONTRACT
AND AFTER THE RECEIPT BY BUYER OF THIS REFUND GUARANTEE: UNITED STATES DOLLARS                     , 

2. KEEL-LAYING: UNITED STATES DOLLARS
                    . 
 WE HEREBY
ESTABLISH OUR UNCONDITIONAL, ABSOLUTE AND IRREVOCABLE LETTER OF GUARANTEE IN FAVOUR OF THE BUYER AS SECURITY FOR THE REFUND OF THE ADVANCE PAYMENT DESIGNATED AS THE FIRST AND SECOND INSTALMENT UNDER ANY CIRCUMSTANCES WHERE UNDER THE CONTRACT THE
BUYER IS ENTITLED TO A REFUND. 
 WE HEREBY UNDERTAKE, AS PRIMARY OBLIGOR AND NOT MERELY AS SURETY ONLY, TO REFUND TO THE BUYER EACH OF THE TWO
ADVANCE 

  

					
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 INSTALMENT PAYMENTS WITHIN 20 DAYS OF RECEIPT OF THE BUYER’S FIRST WRITTEN DEMAND
(‘FIRST DEMAND’), IN AN AMOUNT UP TO BUT NOT EXCEEDING UNITED STATES DOLLARS                     , REPRESENTING THE AGGREGATE OF THE FIRST
INSTALMENT OF UNITED STATES DOLLARS                     , THE SECOND INSTALMENT OF UNITED STATES DOLLARS
                    , TOGETHER WITH THE INTEREST CALCULATED AT THE RATE OF SIX (6) PERCENT PER ANNUM IF THE CONTRACT IS CANCELLED OR RESCINDED
FOR ANY REASON (EXCEPT IN THE EVENT OF TOTAL LOSS AS DESCRIBED IN ARTICLE XII, IN WHICH CASE NO INTEREST WILL BE PAID) FROM THE DATE OF THE SELLER’S RECEIPT THROUGH JIANGSU TIANYUAN MARINE IMPORT AND EXPORT CO., LTD’S ACCOUNT NO.
[                    ] WITH US (SWIFT CODE:
[                    ]), OF EACH INSTALMENT TO THE DATES OF OUR PAYMENT HEREUNDER. 

SUCH FIRST DEMAND MADE BY THE BUYER SHOULD BE RECEIVED BY US WITHIN THE VALIDITY OF THIS REFUND GUARANTEE AND MUST STATE: 

I. THAT THE CANCELLATION OF THE CONTRACT HAS BEEN EXERCISED BY THE BUYER UNDER AND PURSUANT TO ANY OF THE PROVISIONS OF THE CONTRACT PERMITIING
THE BUYER TO DO SO, AND 
 II. THAT THE SELLER HAS FAILED TO COMPLY WITH ITS OBLIGATIONS TO REFUND THE ADVANCE PAYMENT WITH RESPECT TO THE
AMOUNT CLAIMED HEREUNDER, AND 
 Ill. THE AMOUNT DEMANDED BY YOU UNDER THIS REFUND GUARANTEE. 

THIS LETTER OF GUARANTEE SHALL BECOME EFFECTIVE FROM THE DATE OF THE ACTUAL RECEIPT OF THE FIRST INSTALMENT OF
USD                     UNDER THE CONTRACT BY THE SELLER INTO JIANGSU TIANYUAN MARINE IMPORT AND EXPORT CO., LTD.‘S ACCOUNT NO.
[            ] HELD WITH US FROM YOU. 
 THE AVAILABLE AMOUNT UNDER THIS LETTER OF
GUARANTEE SHALL NEVERTHELESS ON NO ACCOUNT EXCEED THE AMOUNT ACTUALLY PAID TO THE SELLER, PLUS THE INTEREST CALCULATED AND DESCRIBED AT SIX (6) PERCENT OR ZERO PERCENT PER ANNUM (AS ABOVE) FROM THE DATE OF THE SELLER’S RECEIPT VIA US, OF EACH
INSTALMENT TO THE DATE OF OUR PAYMENT HEREUNDER. 
 IF WITHIN TWENTY (20) DAYS OF OUR RECEIPT OF A FIRST DEMAND UNDER THIS LETTER OF
GUARANTEE THE SELLER INFORMS US THAT ARBITRATI ON PROCEEDINGS HAVE BEEN COMMENCED IN RELATION TO WHETHER THE SELLER SHALL BE LIABLE TO REPAY THE INSTALMENT OR INSTALMENTS PAID BY YOU, OR CONSEQUENTLY WHETHER YOU SHALL HAVE THE RIGHT TO DEMAND
REPAYMENT FROM US AND THE SELLER PROVIDES US WITH A COPY OF THE SELLER’S NOTICE TO YOU STATING THE NAME OF THE ARBITRATOR APPOINTED BY THE SELLER AND THE QUESTION OR QUESTIONS AS TO WHICH THE SELLER IS DEMANDING 

  

					
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 ARBITRATION AS REQUIRED PURSUANT TO ARTICLE XIII OF THE CONTRACT, WE SHALL BE ENTITLED TO
WITHHOLD PAYMENT UNDER THIS LETTER OF GUARANTEE UNTIL THE FINAL ARBITRATION AWARD OR THE FINAL COURT JUDGMENT IS PUBLISHED OR AN AMICABLE SETTLEMENT HAS BEEN REACHED BETWEEN YOU AND THE SELLER WE SHALL NOT BE OBLIGATED TO MAKE ANY PAYMENT TO YOU
UNLESS THE FINAL ARBITRATION AWARD OR FINAL COURT JUDGEMENT OR AMICABLE SETTLEMENT AGREEMENT AGREED AND SIGNED BETWEEN THE BUYER AND THE SELLER (HEREINAFTER CALLED THE AWARD OR THE JUDGMENT OR SETTLEMENT) ORDERS THE SELLER TO MAKE REPAYMENT. IF THE
SELLER FAILS TO HONOUR THE AWARD, JUDGEMENT OR SETTLEMENT WITHIN THIRTY (30) DAYS AFTER PUBLICATION OF SUCH AWARD OR JUDGMENT OR EXECUTION OF SUCH SETTLEMENT, THEN WE SHALL IMMEDIATELY REFUND TO YOU SUCH AMOUNT AS THE AWARD, JUDGEMENT OR
SETTLEMENT ORDERS, HOWEVER, NOT EXCEEDING UNITED STATES DOLLARS                      PLUS THE INTEREST DESCRIBED ABOVE UPON PRESENTATION TO US OF THE
FURTHER WRITTEN DEMAND OF THE BUYER (‘FURTHER DEMAND’) AND PROVISION EITHER BY YOU OR THE SELLER OF A COPY OF AWARD, JUDGEMENT OR SETTLEMENT. 

SUCH FURTHER DEMAND MUST STATE: 
 1).
THE AWARD OR JUDGMENT OR SETTLEMENT HAS BEEN AWARDED, GIVEN OR CONCLUDED (AS THE CASE MAY BE), AND 
 2). THE AMOUNT THE SELLER IS OBLIGED TO
PAY YOU PURSUANT TO SUCH AWARD OR JUDGMENT OR SETTLEMENT, AND 
 3). THAT YOU HAVE NOT RECEIVED FROM THE SELLER THE AMOUNT PAYABLE BY THE
SELLER TO YOU IN SATISFACTION OF SUCH AWARD OR JUDGMENT OR SETTLEMENT, AND ACCORDINGLY, 
 4). THE AMOUNT DEMANDED BY YOU UNDER THIS REFUND
GUARANTEE. 
 ANY DEMAND (THE FIRST DEMAND AND/OR ANY FURTHER DEMAND) FOR PAYMENT UNDER THIS LETTER OF GUARANTEE MUST BE RECEIVED BY US VIA
SWIFT (SWIFT CODE: [                    ]) OR POST AT THIS
OFFICE[                    ]. CHINA, POST CODE:
[                    ] 
 WE CONFIRM
THAT ANY DEMAND UNDER THIS LETTER OF GUARANTEE IS MADE IN GOOD TIME IF MADE ON OR BEFORE THE EXPIRY DATE (AS AUTOMATICALLY EXTENDED AS BELOW) NOTWITHSTANDING OUR RIGHT TO WITHHOLD PAYMENT WITH REGARD TO POSSIBLE ARBITRATION PROCEEDINGS AS MENTIONED
ABOVE. 
 THE SAID PAYMENTS UNDER THIS LETTER OF GUARANTEE SHALL BE MADE BY US IN FREELY AVAILABLE UNITED STATES DOLLARS. 

THE BUYER HAS THE RIGHT TO ASSIGN ALL ITS RIGHTS, TITLE AND INTEREST UNDER THIS LETTER OF GUARANTEE BY WAY OF SECURITY, 

  

					
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 PROVIDED ONLY THAT NOTICE OF ANY SUCH ASSIGNMENT SHALL BE GIVEN TO US IN WRITING, AND WE AGREE
TO ACKNOWLEDGE SUCH ASSIGNMENT IN WRITING PROMPTLY FOLLOWING RECEIPT OF SUCH NOTICE 
 OUR OBLIGATION RESULTING FROM THIS GUARANTEE SHALL
EXPIRE ON THE EXPIRY DATE, WHICH SHALL BE THE EARLIEST OCCURRENCE OF: 
 I) THE PRESENTATION TO US OF THE COPY OF THE PROTOCOL OF DELIVERY AND
ACCEPTANCE, DULY AND JOINTLY SIGNED BY THE BUYER AND THE SELLER, FOR THE VESSEL, OR 
 II) A REFUND OF ALL SUMS SECURED BY THIS LETIER OF
GUARANTEE HAS BEEN MADE BY THE SELLER UNDER THE CONTRACT OR BY US UNDER THIS LETIER OF GUARANTEE, OR 
 Ill)
                     
 HOWEVER, IN THE
EVENT OF OUR RECEIPT OF A NOTICE MADE BY YOU OR THE SELLER INDICATING THERE IS STILL AN OUTSTANDING ARBITRATION (OR APPEAL RELATING TO AN ARBITRATION) BETWEEN YOU AND THE SELLER REGARDING TO THE DISPUTES AS PROVIDED ABOVE, THE EXPIRY DATE SHALL
AUTOMATICALLY BE EXTENDED TO THE DATE FALLING FORTY FIVE (45) DAYS AFTER DELIVERY OF A FINAL AWARD IN ARBITRATION PROCEEDINGS IN THE EVENT THAT ARBITRATION PROCEEDINGS ARE COMMENCED PURSUANT TO THE TERMS OF ARTICLE XIII OF THE CONTRACT BY
EITHER PARTY AND IN THE EVENT THAT THE FINAL AWARD IN ARBITRATION PROCEEDINGS IS APPEALED THIS DATE SHALL AUTOMATICALLY BE EXTENDED TO THE DATE FOLLOWING FORTY FIVE (45) DAYS AFTER DELIVERY OF THE FINAL UNAPPEALABLE JUDGMENT THERE FROM, OR TO
THE DATE FALLING FORTY FIVE (45) DAYS AFTER THE DELIVERY OF AN AGREED SETILEMENT. 
 UPON ITS EXPIRATION, THIS LETIER OF GUARANTEE SHALL
AUTOMATICALLY BECOME NULL AND VOID, NO MATIER WHETHER IT IS RETURNED TO US OR NOT. 
 ANY PAYMENT BY US UNDER THIS GUARANTEE SHALL BE MADE
WITHOUT ANY SETOFF, COUNTERCLAIM, DEDUCTION OR WITHHOLDING FOR OR ON ACCOUNT OF ANY TAXES, DUTIES, OR CHARGES WHATSOEVER UNLESS WE ARE COMPELLED BY LAW TO DEDUCT OR WITHHOLD THE SAME. IN THE LATIER EVENT WE SHALL MAKE THE MINIMUM DEDUCTION OR
WITHHOLDING PERMITIED AND SHALL PAY SUCH ADDITIONAL AMOUNTS AS MAY BE NECESSARY IN ORDER THAT THE NET AMOUNT RECEIVED BY YOU AFTER SUCH DEDUCTIONS OR WITHHOLDINGS SHALL BE EQUAL TO THE AMOUNT WHICH WOULD HAVE BEEN RECEIVED HAD SUCH DEDUCTION OR
WITHHOLDING NOT BEEN REQUIRED TO BE MADE. 
 WE HEREBY CONFIRM THAT WE WILL NOT BE RELEASED FROM OUR OBLIGATIONS ANY TIME BY REASON OF
FORBEARANCE, WAIVER OR OTHER INDULGENCE GRANTED TO OR AGREED WITH THE SELLER OR ANY AMENDMENT OR VARIATION OF THE CONTRACT, ANY LEGAL LIMITATIONS, INVALIDITY, UNENFORCEABILITY OR OTHERWISE OF THE CONTRACT, OR 

  

					
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 THE LIQUIDATION, BANKRUPTCY OR SIMILAR OF EITHER THE BUYER OR THE SELLER OR ANY INTERMEDIATE
PERFORMANCE OR OBLIGATION ON ACCOUNT BY THE SELLER OR ANY ACT, OMISSION, DEFENCE OR COUNTERCLAIM WHICH MIGHT OTHERWISE IMPAIR OR DISCHARGE OUR LIABILITY, UNDER THIS LETTER OF GUARANTEE. 

OUR OBLIGATIONS UNDER THIS LETTER OF GUARANTEE SHALL NOT BE DISCHARGED OR IMPAIRED BY ANY AMENDMENT OF OR SUPPLEMENT TO THE CONTRACT MUTUALLY
AGREED BY THE SELLER AND THE BUYER. 
 WE HEREBY CONFIRM THAT OUR APPLICATION FOR REGISTRATION OF THIS LETTER OF GUARANTEE WILL BE FILED WITH
THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (‘SAFE’) AND THAT WE ARE DULY AUTHORISED TO ISSUE THIS LETTER OF GUARANTEE AND EFFECT PAYMENT HEREUNDER IN FOREIGN CURRENCY IN CASE OF UTILISATION. WE HEREBY IRREVOCABLY UNDERTAKE TO: 

(1) PROMPTLY REGISTER THIS LETTER OF GUARANTEE WITH SAFE, 

(2) KEEP THIS LETTER OF GUARANTEE DULY REGISTERED AT ALL RELEVANT TIMES WITH SAFE. 

WE CONFIRM HEREWITH THAT WE ARE PERMITTED BY THE LAWS OF THE PEOPLE’S REPUBLIC OF CHINA TO: 

(1) ISSUE GUARANTEES IN THE FORM OF THIS LETTER OF GUARANTEE, 

(2) DESIGNATE ENGLISH LAW AS THE GOVERNING LAW OF THIS LETTER OF GUARANTEE AND LONDON AS PLACE FOR ARBITRATION TO TAKE PLACE, 

(3) EFFECT PAYMENT HEREUNDER IN UNITED STATES DOLLARS, AND 

(4) [        bank
name                    , HEAD OFFICE IN
..                                     HAS APPROVED ISSUANCE OF
THIS LETTER OF GUARANTEE. 
 THIS LETTER OF GUARANTEE SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAW OF ENGLAND. THE COURTS OF
ENGLAND SHALL HAVE EXCLUSIVE JURISDICTION IN RELATION TO ALL MATTERS WHICH MAY ARISE OUT OF OR IN CONNECTION WITH THIS LETTER OF GUARANTEE. 

ANY DISPUTE BETWEEN US AND YOU ARISING OUT OF OR IN CONNECTION WITH THIS LETTER OF GUARANTEE MAY BE REFERRED BY YOU TO AND FINALLY RESOLVED BY
ARBITRATION UNDER THE LONDON MARITIME ARBITRATORS ASSOCIATION (LMAA) TERMS CURRENT AT THE TIME WHEN THE ARBITRATION PROCEEDINGS ARE COMMENCED. THE ARBITRATION SHALL TAKE PLACE IN LONDON, ENGLAND AND BE CONDUCTED IN ENGLISH. 

WE IRREVOCABLY APPOINT [        bank
name                    ., LONDON BRANCH TO ACT AS OUR AGENT TO RECEIVE AND ACCEPT ON OUR BEHALF ANY SERVICE OF DOCUMENT RELATING TO ANY
PROCEEDINGS IN THE ENGLISH COURTS, OR ANY NOTICE OR OTHER COMMUNICATION IN 

  

					
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 CONNECTION WITH ANY ARBITRATION, UNDER OR IN RELATION TO THIS LETTER OF GUARANTEE. 

 

			
	YOURS FAITHFULLY
	
	FOR AND ON BEHALF OF
	 [        bank
name                ]

  

					
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 ARTICLE XXI - Exhibit “B” : IRREVOCABLE LETTER OF 

GUARANTEE 
 Delete as the Buyer
and the Seller agree there is no requirement for a Payment Guarantee. 

  

					
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