Document:

EX-10.5

 Exhibit 10.5 

SHIPBUILDING CONTRACT 

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

UNDER DACKS HULL NO.              

BETWEEN 
 [SUBSIDIARY] 

AS BUYER 
 AND 

DALIAN 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
	  	 	60	  
		
	         REFUNDMENT GUARANTEE
	  	 	60	  
		
	 EXHIBIT B
	  	 	64	  
		
	         PERFORMANCE GUARANTEE
	  	 	64	  

  

					
		  	3	  	

 SHIPBUILDING CONTRACT 

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

THIS CONTRACT, made on this [DATE] by and between DALIAN 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.1 Shunda Road, Lushun Economic Development Zone, Dalian, Liaoning Province, 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 (I) 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. 20 Haiyun Road, Lushun Economic Development Zone, Dalian, Liaoning, 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 

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              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$             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 July 1st, 2014. 

 

	 	(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                      only (U.S.$
            ). 

  

	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 (U.S.$            ) 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
                    only. 

  

	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                     only
                    . 

  

					
		  	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
             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 are compulsory for the VESSEL, either of the parties hereto, upon receipt of such information from the Classification
Society or such other regulatory bodies, shall promptly transmit the same to the other in writing, and the 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 are required;
destruction of or damage to the SHIPYARD or works of the BUILDER, its subcontractors or suppliers, or of or to the VESSEL or any part thereof, by any 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                      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
                     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                      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 arc 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
                    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
                    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:	  	 DALIAN COSCO KHI SHIP ENGINEERING CO., LTD.
  

No. 20 Haiyun Road, Lushun Economic Development Zone,
  

Dalian, Liaoning, 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	  	

 EXHIBIT A 

REFUNDMENT GUARANTEE 
 To: 

Date: (Date) 
 Re: Our irrevocable Refundment Guarantee No.XXXXX

 At the request of DALIAN COSCO KHI SHIP ENGINEERING CO., LTD., a company having its registered office at No. 1 Shunda Road, Lushun
Economic Development Zone, Dalian, Liaoning, 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,                     ,
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

  

					
		  	60	  	

 
the same or any part thereof becomes repayable to you from the 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                      at
                    . 
 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

  

					
		  	61	  	

 
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. 

  

					
		  	62	  	

 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) 
 (Title) of The Export-Import Bank of China Dalian Branch 

  

					
		  	63	  	

 EXHIBIT B 

PERFORMANCE GUARANTEE 
 To: DALIAN COSCO
KHI SHIP ENGINEERING CO., LTD. 
 No.1 Shunda Road, Lushun Economic Development Zone, Dalian, Liaoning Province, 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                     , 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: 

  

					
		  	64	  	

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

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

			
	   
	 		 	   

	 Name        : 
	 		 	 Name         :

	 Title          : 
	 		 	 Title           : 

  

					
		  	65EX-10.6

 Exhibit 10.6 
  

			
	 Shipbuilding Contract
	  	Hull No.                   

 SHIPBUILDING CONTRACT 

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

BETWEEN 
 [SUBSIDIARY]

 AND 
 CHINA
SHIPBUILDING TRADING COMPANY, LIMITED 
 AND 

HUDONG-ZHONGHUA SHIPBUILDING (GROUP) CO., LTD. 

AND 
 SHANGHAI SHIPYARD
CO., LTD. 
 COLLECTIVELY AS SELLER 
  

					
	  
 Date:
                    
	  	
 1
/63	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 CONTENTS 
  

							
	ARTICLE:	  	PAGE NO.:	 
		
	ARTICLE I - DESCRIPTION AND CLASS	  	 	5	  
	 1.
	 	 DESCRIPTION
	  	 	5	  
	 2.
	 	 CLASS AND RULES
	  	 	6	  
	 3.
	 	 PRINCIPAL PARTICULARS AND DIMENSIONS OF THE VESSEL
	  	 	7	  
	 4.
	 	 STANDARD OF CONSTRUCTION
	  	 	9	  
	 5.
	 	 SUBCONTRACTING
	  	 	9	  
	 6.
	 	 FLAG AND REGISTRATION
	  	 	9	  
	ARTICLE II - CONTRACT PRICE & TERMS OF PAYMENT	  	 	10	  
	 1.
	 	 CONTRACT PRICE
	  	 	10	  
	 2.
	 	 CURRENCY
	  	 	10	  
	 3.
	 	 TERMS OF PAYMENT
	  	 	10	  
	 4.
	 	 METHOD OF PAYMENT
	  	 	11	  
	 5.
	 	 PREPAYMENT
	  	 	13	  
	 6.
	 	 SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY
	  	 	13	  
	 7.
	 	 REFUNDS
	  	 	13	  
	 8.
	 	 DEFINITION
	  	 	14	  
	ARTICLE III - ADJUSTMENT OF THE CONTRACT PRICE	  	 	15	  
	 1.
	 	 DELIVERY
	  	 	15	  
	 2.
	 	 INSUFFICIENT SPEED
	  	 	16	  
	 3.
	 	 EXCESSIVE FUEL CONSUMPTION
	  	 	17	  
	 4.
	 	 DEADWEIGHT
	  	 	17	  
	 5.
	 	 EFFECT OF RESCISSION
	  	 	18	  
	ARTICLE IV - SUPERVISION AND INSPECTION	  	 	19	  
	 1.
	 	 APPOINTMENT OF THE BUYER’S SUPERVISOR
	  	 	19	  
	 2.
	 	 APPROVAL OF PLANS AND DRAWINGS
	  	 	19	  
	 3.
	 	 SUPERVISION AND INSPECTION BY THE SUPERVISOR
	  	 	19	  
	 4.
	 	 LIABILITY OF THE SELLER
	  	 	20	  
	 5.
	 	 SALARIES AND EXPENSES
	  	 	21	  
	 6.
	 	 REPLACEMENT OF SUPERVISOR
	  	 	21	  
	ARTICLE V - MODIFICATION, CHANGES AND EXTRAS	  	 	22	  
	 1.
	 	 HOW EFFECTED
	  	 	22	  
	 2.
	 	 CHANGES IN RULES AND REGULATIONS, ETC.
	  	 	22	  
	 3.
	 	 SUBSTITUTION OF MATERIALS AND/OR EQUIPMENT
	  	 	24	  
	 4.
	 	 BUYER’S SUPPLIED ITEMS
	  	 	24	  
	ARTICLE VI - TRIALS	  	 	26	  
	 1.
	 	 NOTICE
	  	 	26	  
	 2.
	 	 HOW CONDUCTED
	  	 	27	  
	 3.
	 	 TRIAL LOAD DRAFT
	  	 	27	  
	 4.
	 	 METHOD OF ACCEPTANCE OR REJECTION
	  	 	28	  
	 5.
	 	 DISPOSITION OF SURPLUS CONSUMABLE STORES
	  	 	29	  
	 6.
	 	 EFFECT OF ACCEPTANCE
	  	 	29	  
	ARTICLE VII - DELIVERY	  	 	31	  
	 1.
	 	 TIME AND PLACE
	  	 	31	  
	 2.
	 	 WHEN AND HOW EFFECTED
	  	 	31	  
	 3.
	 	 DOCUMENTS TO BE DELIVERED TO THE BUYER
	  	 	31	  
	 4.
	 	 TITLE AND RISK
	  	 	33	  
	 5.
	 	 REMOVAL OF VESSEL
	  	 	33	  
	 6.
	 	 TENDER OF THE VESSEL
	  	 	33	  
	ARTICLE VIII - DELAYS & EXTENSION OF TIME FOR DELIVERY	  	 	34	  
	 1.
	 	 CAUSE OF DELAY
	  	 	34	  
	 2.
	 	 NOTICE OF DELAY
	  	 	34	  

  

					
	  
 Date:
                    
	  	  
 2/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

							
	 3.
	    	 RIGHT TO CANCEL FOR EXCESSIVE DELAY
	  	 	35	  
	 4.
	    	 DEFINITION OF PERMISSIBLE DELAY
	  	 	35	  
	ARTICLE IX - WARRANTY OF QUALITY	  	 	36	  
	 1.
	    	 GUARANTEE OF MATERIAL AND WORKMANSHIP
	  	 	36	  
	 2.
	    	 NOTICE OF DEFECTS
	  	 	36	  
	 3.
	    	 REMEDY OF DEFECTS
	  	 	36	  
	 4.
	    	 EXTENT OF THE SELLER’S LIABILITY
	  	 	37	  
	 5.
	    	 GUARANTEE ENGINEER
	  	 	39	  
	ARTICLE X - CANCELLATION, REJECTION AND RESCISSION BY THE BUYER	  	 	40	  
	ARTICLE XI - BUYER’S DEFAULT	  	 	42	  
	 1.
	    	 DEFINITION OF DEFAULT
	  	 	42	  
	 2.
	    	 NOTICE OF DEFAULT
	  	 	42	  
	 3.
	    	 INTEREST AND CHARGE
	  	 	43	  
	 4.
	    	 DEFAULT BEFORE DELIVERY OF THE VESSEL
	  	 	43	  
	 5.
	    	 SALE OF THE VESSEL
	  	 	44	  
	ARTICLE XII - INSURANCE	  	 	46	  
	 1.
	    	 EXTENT OF INSURANCE COVERAGE
	  	 	46	  
	 2.
	    	 APPLICATION OF RECOVERED AMOUNT
	  	 	46	  
	 3.
	    	 TERMINATION OF THE SELLER’S OBLIGATION TO INSURE
	  	 	47	  
	ARTICLE XIII - DISPUTES AND ARBITRATION	  	 	48	  
	 1.
	    	 PROCEEDINGS
	  	 	48	  
	 2.
	    	 ALTERNATIVE DISPUTE RESOLUTION BY AGREEMENT
	  	 	48	  
	 3.
	    	 NOTICE OF AWARD
	  	 	49	  
	 4.
	    	 EXPENSES
	  	 	49	  
	 5.
	    	 AWARD OF ARBITRATION
	  	 	49	  
	 6.
	    	 ALTERATION OF DELIVERY TIME
	  	 	49	  
	ARTICLE XIV - RIGHT OF ASSIGNMENT	  	 	50	  
	ARTICLE XV - TAXES AND DUTIES	  	 	51	  
	 1.
	    	 TAXES
	  	 	51	  
	 2.
	    	 DUTIES
	  	 	51	  
	ARTICLE XVI - PATENTS, TRADEMARKS AND COPYRIGHTS	  	 	52	  
	ARTICLE XVII - NOTICE	  	 	53	  
	ARTICLE XVIII - EFFECTIVE DATE OF CONTRACT	  	 	55	  
	ARTICLE XIX - INTERPRETATION	  	 	56	  
	 1.
	    	 LAW APPLICABLE
	  	 	56	  
	 2.
	    	 DISCREPANCIES
	  	 	56	  
	 3.
	    	 DEFINITION
	  	 	56	  
	IRREVOCABLE LETTER OF GUARANTEE	  	 	58	  
	Exhibit “B” IRREVOCABLE LETTER OF GUARANTEE	  	 	61	  
	FOR THE 2ND AND 3RD INSTALLMENTS	  	 	61	  

  

					
	  
 Date:
                    
	  	  
 3/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 SHIPBUILDING CONTRACT 

FOR 
 CONSTRUCTION OF ONE
82,000 METRIC TONS DEADWEIGHT 
 BULK CARRIER 

(HULL NO.             ) 

This CONTRACT, entered into this      day of
                 by and between                     , a corporation
organised and existing under the Laws of Marshall Islands, having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960 (hereinafter called the “BUYER”) on one part; and CHINA
SHIPBUILDING TRADING COMPANY, LIMITED, a corporation organised and existing under the Laws of the People’s Republic of China, having its registered office at 56, (Yi) Zhongguancun Nandajie, Beijing 100044, the People’s Republic of China
(hereinafter called “CSTC”), and HUDONG-ZHONGHUA SHIPBUILDING (GROUP) CO., LTD., a corporation organised and existing under the Laws of the People’s Republic of China, having its registered office at 2851 PUDONG DA DAO, Shanghai
200129, the People’s Republic of China (hereinafter called “HZ”), and SHANGHAI SHIPYARD CO., LTD., a corporation organized and existing under the Laws of the people’s Republic of China, having its registered office at 1 Ji Mo
Road, Pudong, Shanghai 200120, the People’s Republic of China (hereinafter called the “SSC”) on the other part. HZ and SSC are hereinafter collectively called the “BUILDERS”, and CSTC and the BUILDERS are hereinafter
collectively called the “SELLER” 
 WITNESSETH 

In consideration of the mutual covenants contained herein, the SELLER agrees to design, build, launch, equip and complete at SSC’s
shipyard under HZ management’s control and to sell and deliver to the BUYER after completion and successful trial one (1) 82,000 Metric Tons Deadweight Bulk Carrier as more fully described in Article I hereof (hereinafter called the
“VESSEL”), 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. 

  

					
	  
 Date:
                
	  	  
 4/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 ARTICLE I - DESCRIPTION AND CLASS 

 

	1.	 DESCRIPTION 

The VESSEL is a 82,000 metric tons deadweight Bulk Carrier, at scantling draft moulded of 14.45 meters (hereinafter called the
“VESSEL”) of the class described below. 
 The VESSEL shall have the SSC’s Hull No.
             and shall be constructed, equipped and completed with the provisions of this Contract in accordance with the following “Specifications” making them an integral part
hereof, all identical to those of HZ’s Hull No.              without plans or drawings for re-approval by the Buyer and the Class. 

 

	 	(1)	 Specification (Drawing No.
                    ) 

	 	(2)	 General Arrangement (Drawing No.
                    ) 

	 	(3)	 Midship Section (Drawing No.
                    ) 

	 	(4)	 Makers list (Drawing No.             ) (the makers selected for the vessel with
HZ’s Hull No.              shall be fully followed and applied for the VESSEL together with extra cost, if any, and the Notes as indicated in the Makers List shall be subject to this
principle.) 

 It is understood that any Technical Memorandums mutually agreed for the vessel with
HZ’s Hull No.              subsequent to the above documents after              contract signing shall also be part of the
agreed Specifications and shall be part of this Contract. Any adjustment and/or modification to              contract and/or Specification after
             contract signing shall also be automatically accepted by BUYER and applied to this VESSEL. The above documents including the ones agreed after contract signing shall be signed
by the BUYER and by the BUILDERS on behalf of the SELLER. 
 Should there be any inconsistencies or contradictions between
the SPECIFICATIONS and any of the other documents at (2) to (4) above, the SPECIFICATIONS shall prevail. Should there be any inconsistencies and contradictions between this CONTRACT and the SPECIFICATIONS,

  

					
	  
 Date:
                    
	  	  
 5/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
this CONTRACT shall prevail. 
  

	2.	 CLASS AND RULES 

(a) Classification 

The VESSEL including its machinery, equipment and outfittings shall be constructed to the requirements in effect at the date of
signing this Contract of                      (hereinafter called the “Classification Society”): bulk carrier
                    . 

(b) Rules and Regulations 

The VESSEL shall be constructed in accordance with the applicable current rules, regulations and requirements of the
authorities and regulatory bodies, which are ratified at the date of signing this CONTRACT and will enter into force upon the delivery of the VESSEL, as fully described in the Specifications including that of the Classification Society in effect at
the date of signing this Contract together with all applicable IACS unified requirements in their latest revisions, in effect at the date of signing this Contract. 

The SELLER shall arrange with the Classification Society for assignment by the said Society of a representative or
representatives (hereinafter called the “Classification Surveyor”) to SSC’s Shipyard for supervision of the construction of the VESSEL. 

All fees and charges incidental to Classification and to comply with the above specified rules, regulations and requirements
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. The key plans, materials and workmanship entering into the construction of the VESSEL shall at all times be
subject to BUYER’s inspections and tests in accordance with the rules and regulations of the said Classification Society. 

  

					
	  
 Date:
                    
	  	  
 6/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 The facilities, labour and materials necessary for the safe and convenient
conduct of such inspections and tests, shall be furnished by the BUILDERS without charge. 
 Decisions of the Classification
Society as to compliance or non-compliance with their rules and regulations shall be final and binding upon the parties hereto. 
  

	3.	 PRINCIPAL PARTICULARS AND DIMENSIONS OF THE VESSEL 

The following are the Principal Particulars and Dimension of the VESSEL for Hull and Machinery as excerpted from the
Specifications attached hereto: 
  

			
	 (a) Hull
	  	
	 Length Overall
	  	abt.229.0M
	 Length between perpendiculars
	  	225.50M
	 Breadth, moulded
	  	32.26M
	 Depth, moulded
	  	20.05M
	 Designed draft, moulded
	  	12.20M
	 Scantling draft, moulded
	  	14.45M

 (b) Propelling Machinery 

The VESSEL shall be equipped, in accordance with the Specifications, with one set of MAN
                     (Low load EGB) type engine with SMCR of              at 91.5 rpm.

 All necessary auxiliary machinery in the engine room, steering gear, deck machinery, etc., shall be supplied and
installed according to the Specifications. 
 (c) Guaranteed Deadweight 

The SELLER guarantees that the VESSEL when completed, shall be capable of carrying a total deadweight tonnage of not less than
81,600 metric tons in sea water of 1.025 specific gravity at scantling draft 

  

					
	  
 Date:
                    
	  	  
 7/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
moulded of 14.45 meters. 
 The term, “Deadweight”, as used
in this Contract shall be defined in the Specifications. 
 The actual deadweight of the VESSEL expressed in metric tons
shall be based on calculations made by the BUILDERS, and all measurements necessary for such calculations shall be performed in the presence of the BUYER’S Supervisor or the representative(s) authorised by the BUYER as well as the
Classification’s Society Surveyor. 
 Should there be any dispute between the BUILDERS and the BUYER in such
calculations and/or measurements, the decision of the Classification Society shall be final and binding upon parties hereto. 

(d) Guaranteed Speed. 

The SELLER guarantees that the service speed is to be not less than 14.3 nautical miles per hour at design draft
(12.2m) at CSR of main engine with 15% sea margin with energy saving devices (Mewis Duct) with clean bottom on calm and deep open sea (no wind, no current and no wave) stipulated in the Specification. 

The trial speed shall be corrected for wind speed and shallow water effect and wave correction. The correction method of the
speed shall be as specified in the Specifications. 
 (e) Guaranteed Fuel Oil Consumption 

The SELLER guarantees that the fuel oil consumption of the Main Engine is not to exceed
             grams/kW/hour + 6% at normal continuous output of 7250 KW at shop trial based on diesel fuel oil having a lower calorific value of 42,700KJ/Kg at I.S.O standard reference
condition. 

  

					
	  
 Date:
                    
	  	  
 8/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

	4.	 STANDARD OF CONSTRUCTION 

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

	5.	 SUBCONTRACTING 

The SELLER may, at its sole discretion and responsibility, subcontract any portion of the construction work of the VESSEL to
the experienced subcontractors within the China State Shipbuilding Corporation (“CSSC”) group, but delivery and final assembly into the VESSEL of any such work subcontracted shall be at SSC’s shipyard. The SELLER shall in all
circumstances remain responsible for such subcontracted work. 
 The SELLER is, however, authorized to sub-contract part of
the work to experienced third party sub-contractors not within CSSC group, provided that the SELLER shall have first given notice in writing to the BUYER and received the BUYER’s written approval thereof which shall not be unreasonably
withheld, but delivery and final assembly into the VESSEL of any such work subcontracted shall be at the BUILDERS’ shipyards. The SELLER shall remain responsible for such subcontracted work. 

 

	6.	 FLAG AND REGISTRATION 

  

	 	(a)	 It is agreed that the VESSEL shall be designed, constructed and ready to fly the flag of the Marshall Islands with its home port at the time of its
delivery and acceptance hereunder. 

  

	 	(b)	 The VESSEL shall be registered by the BUYER at his own cost and expense at the time of VESSEL’s delivery and acceptance hereunder.

  

					
	  
 Date:
                    
	  	  
 9/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 ARTICLE II - CONTRACT PRICE & TERMS OF PAYMENT 

 

	1.	 CONTRACT PRICE 

The purchase price of the VESSEL is United States Dollars
                     net receivable by the SELLER (hereinafter called the “Contract Price”), which is exclusive of the cost for the
BUYER’s Supplies as provided in Article 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 made 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 Ten percent (10%) of the Contract Price, shall become due and payable and be paid by
the BUYER within Five (5) Business Days after the BUYER’s receipt of the Refund Guarantee of this instalment. 
 (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 by the BUYER within Five
(5) Business Days after the BUYER’s receipt of the notification by the SELLER of cutting the first steel plate of the VESSEL. 

The steel-cutting shall be notified by the SELLER with a telefax or email notice to the BUYER stating that the first steel has been cut, said
notification shall be accompanied by a certificate issued by the CLASSIFICATION SOCIETY confirming that steel-cutting has been carried out. The SELLER 

  

					
	  
 Date:
                    
	  	  
 10/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
shall send to the BUYER a telefax or email demand for payment of this instalment, such notice to specify the number of the account to which such payment is to be made. 

(c) 3rd Instalment 
 The sum of
United States Dollars                     , representing Ten percent (10%) of the Contract Price, shall become due and payable and be paid by
the BUYER within Five (5) Business Days after the BUYER’s receipt of the notification by the SELLER of keel-laying of the first two blocks forming part of the VESSEL. 

The keel-laying shall be notified by the SELLER with a telefax or email notice to the BUYER stating that the said keel-laying has been carried
out, said notification shall be accompanied by a certificate issued by the CLASSIFICATION SOCIETY confirming that keel-laying has been carried out. The SELLER shall send to the BUYER a telefax or email demand for payment of this instalment, such
notice to specify the number of the account to which such payment is to be made. 
 (d) 4th 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. Any extra cost mutually agreed
between the buyer and the seller of the shipbuilding contract dated                      for the
vessel with HZ’s Hull No.              shall be deemed to have been automatically accepted by the BUYER and shall be paid together with the 4th Instalment to the SELLER. The SELLER shall send to the BUYER a telefax or email demand for this instalment fourteen (14) days prior to the scheduled date of delivery of the VESSEL. 

 

	4.	 METHOD OF PAYMENT 

(a) 1st Instalment 
 Against
proforma invoice addressed to the BUYER sent from the SELLER by fax and/or email, The BUYER shall remit the amount of this instalment in accordance with Article II, Paragraph 3 (a) by telegraphic transfer to
                    . 

  

					
	  
 Date:
                    
	  	  
 11/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
as receiving bank nominated by the SELLER, for credit to Account                      or
through other receiving bank to be nominated by the SELLER from time to time and such nomination shall be notified to the BUYER at least fourteen (14) days prior to the due date for payment. 

(b) 2nd Instalment 
 Against
proforma invoice addressed to the BUYER sent from the SELLER by fax and/or email, the BUYER shall remit the amount of this instalment in accordance with Article II, Paragraph 3(b) by telegraphic transfer to
                     as receiving bank nominated by the SELLER, for credit to Account
                     or through other receiving bank to be nominated by the SELLER from time to time and such nomination shall be notified to the
BUYER at least fourteen (14) days prior to the due date for payment. 
 (c) 3rd Instalment 

Against proforma invoice addressed to the BUYER sent from the SELLER by fax and/or email, The BUYER shall remit the amount of this instalment
in accordance with Article II, Paragraph 3(c) by telegraphic transfer to                      as receiving bank nominated by the SELLER, for credit
to Account                      with SWIFT advice from
                     or through other receiving bank to be nominated by the SELLER from time to time and such nomination shall be notified to the
BUYER at least fourteen (14) days prior to the due date for payment. 
 (d) 4th Instalment (Payable upon delivery of the VESSEL) 

Against proforma invoice addressed to the BUYER sent from the SELLER by fax, The BUYER shall, at least two (2) Business Days prior to the
scheduled date of delivery of the VESSEL, make a cash deposit in the name of the BUYER with                     

  

					
	  
 Date:
                    
	  	  
 12/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
People’s Republic of China, for a period of fifteen (15) days and covering the amount of this instalment (as adjusted in accordance with the provisions of this Contract), with an
irrevocable instruction that (A) the said amount shall be released to the SELLER against presentation by the SELLER to the said Bank of China, Head Office, Banking Department, Beijing, the People’s Republic of China, of a copy of the
Protocol of Delivery and Acceptance signed by the BUYER’s authorised representative and the SELLER and (B) that the said amount (if not already paid to the SELLER pursuant to (A) above) shall not be withdrawn by the BUYER within
fifteen (15) days from the deposit date but may be withdrawn in part or in full thereafter. 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 15 days deposit period, the BUYER shall have the right
to withdraw the said deposit plus accrued interest. However when the newly scheduled delivery date is notified to the BUYER by the SELLER, the BUYER shall make the cash deposit in accordance with the same terms and conditions as set out above. 

 

	5.	 PREPAYMENT 

The BUYER shall have the right to make prepayment of any and all 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 shall, concurrently with this Contract becoming effective, deliver to the SELLER an irrevocable and unconditional Letter of
Guarantee (“Payment Guarantee”) in favour of the SELLER issued by                      (hereinafter called the “Payment
Guarantor”). The Payment Guarantee shall secure the BUYER’s obligation for the payment of the 2nd and 3rd instalments of the Contract Price. Such Payment Guarantee shall be substantially in the form of annexed hereto as Exhibit
“B”. 
  

	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 the specific terms of 

  

					
	  
 Date:
                    
	  	  
 13/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
this Contract permitting such rescission or cancellation, the SELLER shall refund to the BUYER in United States Dollars the full amount of all sums already paid by the BUYER to the SELLER under
this Contract, together with interest (at the rate set out in respective provision hereof) 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 a condition precedent to the payment of the first instalment and as security to the BUYER, the SELLER shall deliver to the BUYER, within
twenty (20) Business Days after the signing of this Contract, a Refund Guarantee covering the SELLER’s obligation for repayment of the 1st and 2nd and 3rd instalments plus interest if any as aforesaid to be issued by the
                     (“Refund Guarantor”) in substantially similar form and tenor to the form as per Exhibit “A” annexed hereto.
All expenses in issuing the letter of guarantee described in this paragraph shall be borne by the SELLER. 
 However, in the event of any
dispute between the SELLER and the BUYER with regard to the SELLER’s obligation to repay the instalment or instalments paid by the BUYER and to the BUYER’S right to demand payment from the Refund Guarantor, under the Refund Guarantee, and
such dispute is submitted either by the SELLER or by the BUYER for arbitration in accordance with Article XIII hereof, the Refund Guarantor shall withhold and defer payment until such arbitration between the SELLER and the BUYER is finally
determined. The Refund Guarantor shall not be obligated to make any payment under the Refund Guarantee unless the arbitration award orders the SELLER to make repayment of all or any part of the instalments hereunder. If the SELLER fails to honour
any award or judgement relating to a dispute of the nature referred to above within Eight (8) Business Days of such final award or judgement, then the Refund Guarantor shall refund the relevant instalment or instalments (or part thereof) to the
extent the arbitration award orders. 
  

	8.	 DEFINITION 

In this Article, “Business Day” means a day upon which banks in New York, Beijing, the Netherlands and Monaco are open for business.

  

					
	  
 Date:
                    
	  	  
 14/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 ARTICLE III - 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 Thirty (30) days of delay in delivery of the VESSEL beyond
the Delivery Date as defined in Article VII hereof ending as of twelve o’clock midnight of the Thirtieth (30th) day of delay. 

  

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

Unless the parties hereto agree otherwise, the total reduction in the Contract Price shall be deducted from the third
instalment of the Contract Price and in any event (including the event that the BUYER consents to take the VESSEL at the later delivery date after the expiration of Two Hundred and Ten (210) days delay of delivery as described in Paragraph 1(c)
of this Article) shall not be more than One Hundred and Eighty (180) days at the above specified rate of reduction after the Thirty (30) days allowance, that is United States Dollars
                     being the maximum. 
  

	(c)	 If the delay in the delivery of the VESSEL continues for a period of Two Hundred and Ten (210) days after the Delivery Date as defined in
Article VII, then in such event, the BUYER may, at its option, rescind or cancel this Contract in accordance with the provisions of Article X of this Contract. The SELLER may at any time after the expiration of the aforementioned Two Hundred and Ten
(210) days, if the BUYER has not served notice of cancellation pursuant to Article X, 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 Thirty (30) days after such demand 

  

					
	  
 Date:
                    
	  	  
 15/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

	 	 
is received by the BUYER, either notify the SELLER of its decision to cancel this Contract, or consent to take delivery of the VESSEL at an agreed future date, it being understood and agreed by
the parties hereto that the acceptance of a new delivery date shall be without prejudice to any reductions in the purchase price as hereinabove provided. If the VESSEL is not delivered by such future date then, unless the parties mutually agree new
terms of delivery of the VESSEL, the BUYER shall have the same right of cancellation upon the same terms, as hereinabove provided. 

  

	(d)	 For the purpose of this Article, the delivery of the VESSEL shall not be deemed delayed and the Contract Price shall not be reduced when and if the
Delivery Date of the VESSEL is extended by reason of causes and provisions of Articles V, VI 1, XI, XII, and XIII hereof. The Contract Price shall not be adjusted or reduced if the delivery of the VESSEL is delayed by reason of permissible delays as
defined in Article 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 four point five tenths (0.45) 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 four point five tenths (0.45) 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 0.45 knot
	 	US$    
	In case of deficiency	 	
	 at or above 0.45 but below 0.55 knot
	 	 US$                    

	 at or above 0.55 but below 0.65 knot
	 	 US$                    

	 at or above 0.65 but below 0.75knot
	 	 US$                    

	 at or above 0.75 but below 0.85 knot
	 	 US$                    

	 at or above 0.85 but below 0.95 knot
	 	 US$                    

	 at or above 0.95 but below 1.05 knot
	 	 US$                    

	 at or above 1.05 but below 1.15 knot
	 	 US$                    

  

	(c)	 If the deficiency in actual speed (as determined by the Trial Run after 

  

					
	  
 Date:
                    
	  	  
 16/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

	 	 
correction according to the Specifications) of the VESSEL upon the Trial Run, is more than 1.15 knot below the guaranteed speed of 14.3 knots, then the BUYER may at its option reject the VESSEL
and rescind or cancel 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 

  

	(a)	 The Contract Price of the VESSEL shall not be affected nor changed if the actual fuel consumption of the Main Engine, as determined by shop trial
in manufacturer’s works, as per the Specifications, is greater than the guaranteed fuel consumption as specified and required under the provisions of this Contract and the Specifications if such actual excess is equal to or less than six
percent (6%) with engine complying with the IMO speed dependent NOx limit. 

  

	(b)	 However, if the actual fuel consumption as determined by 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                      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 shop trial such actual fuel consumption of the Main Engine is more than eleven percent (11%) in excess of the guaranteed
fuel consumption, i.e. the fuel consumption exceeds              grams/kW/hour, the BUYER may, at its option, reject the VESSEL and rescind or cancel 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 decreased if such deficiency is Four Hundred and Fifty (450) metric tons or less below the guaranteed deadweight of 81,600 metric tons at the scantling draft moulded of 14.45 meters in sea water of 1.025 specific gravity.

  

					
	  
 Date:
                    
	  	  
 17/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

	(b)	 However, the Contract Price shall be decreased by the sum of United States Dollars
                     for each full metric ton of such deficiency being more than Four Hundred and Fifty (450) metric tons.

  

	(c)	 In the event that there should be a deficiency in the VESSEL’s actual deadweight which exceeds One Thousand and One Hundred
(1,100) metric tons below the guaranteed deadweight, the BUYER may, at its option, reject the VESSEL and rescind or cancel this Contract in accordance with the provisions of Article X of this Contract, or may accept the VESSEL with 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 or cancels 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 arising out of this Article III or compensation whether described above. 

  

					
	  
 Date:
                    
	  	  
 18/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 ARTICLE IV - SUPERVISION AND INSPECTION 

 

	1.	 APPOINTMENT OF THE BUYER’S SUPERVISOR 

The BUYER shall send in good time to and maintain at SSC’s Shipyard, at the BUYER’s own cost and expense, one or more
representative(s) who shall be duly accredited in writing by the BUYER (such representative(s) being hereinafter collectively and individually called the “Supervisor”) to supervise and survey the construction by the BUILDERS of the VESSEL,
her engines and accessories. The SELLER hereby assists at SELLER’s best effort that, the necessary visa, work permits, resident permits, and other necessary documents, for the Supervisor and their staff to enter China will be issued in order on
demand and without delay provided that the Supervisor and their staff meets with the rules, regulations and laws of the People’s Republic of China. The BUYER undertakes to give the SELLER adequate notice for the application of visa. 

 

	2.	 APPROVAL OF PLANS AND DRAWINGS 

Both parties agree that the vessel is a repeat one of             . Therefore the
same plans, drawings and technical documents as those used for construction of              shall be used for construction of the VESSEL without re-approval by the CLASS or the BUYER. 

 

	3.	 SUPERVISION AND INSPECTION BY THE SUPERVISOR 

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

The Supervisor shall have, at all times until delivery of the VESSEL, the right to attend tests and inspections according to the mutually
agreed test list and inspect the VESSEL, her engines, accessories and materials at SSC’s Shipyard, its subcontractors or any other place where work is done or materials stored in connection with the VESSEL. The BUILDERS shall, at the
BUILDERS’ practice, give reasonable notice in advance of all tests and/or inspections on the agreed test list to enable the Supervisor to attend. In the event that the Supervisor discovers any construction or material or workmanship which does

  

					
	  
 Date:
                    
	  	  
 19/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
not or will not conform to the requirements of this Contract and the Specifications, the Supervisor shall promptly give the BUILDERS a notice in writing as to such nonconformity, upon receipt of
which the BUILDERS shall correct such nonconformity if such nonconformity is not in line with the Specifications. In any circumstances, the SELLER shall be entitled to 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 for submitting the issue for determination by the Classification Society or arbitration in accordance with the provisions hereof. However the BUYER
undertakes and assures the SELLER that the Supervisor shall carry out his inspections in accordance with the agreed inspection procedure and schedule and usual shipbuilding practice and in a way as to minimize any increase in building costs and
delays in the construction of the VESSEL. Once a test has been witnessed and approved by the BUYER’s Representatives, the same test should not have to be repeated, provided it has been carried out in compliance with the requirements of the
classification society and specifications. 
 The BUILDERS agree to furnish free of charge the Supervisor with office space, and other
reasonable facilities including a direct international telephone and facsimile line and internet access according to SSC’s practice at, or in the immediate vicinity of the SSC’s Shipyard. The communication cost on such telephone and
facsimile line shall be for the account of the BUYER. At all times, during the construction of the VESSEL until delivery thereof, the Supervisor shall be given free and ready access to the VESSEL, her engines and accessories, and to any other place
where the work is being done, or the materials are being processed or stored, in connection with the construction of the VESSEL, including the yards, workshops, stores of the SSC, and the premises of subcontractors of the BUILDERS, who are doing
work, or storing materials in connection with the VESSEL’s construction. The travel expenses for the said access to the SELLER’s subcontractors within Shanghai shall be at SELLER’s account. The transportation within Shanghai shall be
provided to the Supervisor by the SELLER for the purpose of carrying on the Supervisor’s duties. 
  

	4.	 LIABILITY OF THE SELLER 

The Supervisor 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 Supervisor or the BUYER’s employees or agents for personal injuries, including death, during the time when they, or any of them, are on the VESSEL, or within the premises of either the
SELLER or its subcontractors, or are otherwise engaged in and about the 

  

					
	  
 Date:
                    
	  	  
 20/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 
construction of the VESSEL, unless, however, such personal injuries, including death, were caused by proved gross negligence of the SELLER, or of any of the SELLER’s employees or agents or
subcontractors of the SELLER. Nor shall the SELLER be under any liability whatsoever to the BUYER for damage to, or loss or destruction of property in China of the BUYER or of the Supervisor, or of the BUYER’s employees or agents, unless such
damage, loss or destruction was caused by proved gross negligence of the SELLER, or of any of the employees, or agents or subcontractors of the SELLER. 
  

	5.	 SALARIES AND EXPENSES 

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

	6.	 REPLACEMENT OF SUPERVISOR 

The SELLER has the right to request the BUYER in writing to replace any of the Supervisor who is deemed unsuitable and unsatisfactory for the
proper progress of the VESSEL’s construction together with reasons provided in writing. The BUYER shall investigate the situation by sending its representative to the BUILDERS’ yards, 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. 

  

					
	  
 Date:
                    
	  	  
 21/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 ARTICLE V - MODIFICATION, CHANGES AND EXTRAS 

 

	1.	 HOW EFFECTED 

The Specifications and Plans in accordance with which the VESSEL is constructed, may be modified and/or changed at any time hereafter by
written agreement of the parties hereto, provided that such modifications and/or changes or an accumulation thereof will not, in the BUILDERS’ reasonable judgement, adversely affect the BUILDERS’ 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, 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, manifesting such agreement. The letters and
telefaxes exchanged by the parties hereto pursuant to the foregoing shall constitute an amendment of the Specifications under which the VESSEL shall be built, and such letters and telefaxes shall be deemed to be incorporated into this Contract and
the Specifications by reference and made a part hereof. Upon consummation of the agreement to modify and/or to change the Specifications, the SELLER shall alter the construction of the VESSEL in accordance therewith, including any additions to, or
deductions from, the work to be performed in connection with such construction. If due to whatever reasons, the parties hereto shall fail to agree on the adjustment of the Contract Price or extension of time of delivery or providing additional
security to the SELLER or modification of any 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 

  

					
	  
 Date:
                    
	  	  
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	 Shipbuilding Contract
	  	Hull No.                   

 

	 	 
or changed by the Classification Society or the other regulatory bodies authorised to make such alterations or changes, the SELLER and/or the BUYER, upon receipt of the notice thereof, shall
transmit such information in full to each other in writing, whereupon within twenty-one (21) days after receipt of the said notice by the BUYER from the SELLER or vice versa, the BUYER shall instruct the SELLER in writing as to the alterations
or changes, if any, to be made in the VESSEL which the BUYER, in its sole discretion, shall decide. The SELLER shall promptly comply with such alterations or changes, if any in the construction of the VESSEL, provided that the BUYER shall first
agree: 

  

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

  

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

 

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

  

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

  

	 	(e)	 If the price is to be increased, then, in addition, as to providing to the SELLER additional securities satisfactory to the SELLER.

 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 any alteration of the terms of this Contract, if any, then the SELLER shall be entitled to proceed with the construction of the VESSEL in accordance with, and the BUYER shall continue to
be bound by, the terms of this Contract and Specifications without making any such alterations or changes. However, if the requirements stated in Paragraph 2 above are compulsory to ensure classification of the VESSEL, then the BUILDERS

  

					
	  
 Date:
                    
	  	  
 23/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

	 	 
shall comply with those requirements. In such event, if the parties herein are unable to reach an agreement 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 any alteration of the terms of this Contract, if any, then such dispute shall be referred to Arbitration proceedings in accordance with Article XIII hereof but without delay the
construction of the VESSEL. 

  

	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 of the rules, regulations, requirements and recommendations with which the construction of the VESSEL must comply. Any additional cost of supplying alternative materials shall be
for BUYERS’s account if same has been previously approved by the BUYER. 
  

	4.	 BUYER’S SUPPLIED ITEMS 

The BUYER shall deliver to the SELLER at its shipyard the items as specified in the Specifications which the BUYER shall supply on its account
by the time designated by the SELLER. 
 Should the BUYER fail to deliver to the BUILDERS such items within the time specified, the delivery
of the VESSEL shall automatically be extended for a period of such delay, provided such delay in delivery of the BUYER’s supplied items shall affect the construction and/or 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 in the delivery of the BUYER’s supplied items and such payment shall be made upon delivery of the VESSEL. 

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

The BUILDERS shall be responsible for storing and handling of the BUYER’s supplies as 

  

					
	  
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specified in the Specifications after delivery to the SSC’s shipyard and shall install them on board the VESSEL at the BUILDERS’ 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 BUILDERS shall be entitled to refuse to accept the BUYER’s supplied items. 

  

					
	  
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 ARTICLE VI - TRIALS 

 

	1.	 NOTICE 

 The
BUYER and the Supervisor shall receive from the SELLER at least thirty (30) days notice in advance and seven (7) Business Days definite notice in advance in writing or by telefax and/or email, 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 Supervisor shall promptly acknowledge receipt of such notice. The BUYER’s representatives and/or the Supervisor shall be on
board the VESSEL to witness such Trial Run, and to check upon the performance of the VESSEL during the same. Failure of the BUYER’s representatives to be present at the Trial Run of the VESSEL, after due notice to the BUYER and the Supervisor
as provided above, shall have the effect to extend the date for delivery of the VESSEL by the period of delay caused by such failure to be present. However, if the Trial Run is delayed more than 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 BUILDERS
may conduct such Trial Run without the BUYER’s representatives being present but only with representative from the Classification Society, and in such case the BUYER shall be obliged to accept the VESSEL in relation to the Trial Run on the
basis of a certificate jointly signed by the BUILDERS and the Classification Society certifying that the VESSEL, after Trial Run subject to minor alterations and corrections as provided in this Article, if any, is found to conform to the Contract
and Specifications. The SELLER hereby warrants that the necessary visa for the BUYER’s representatives to enter China will be issued in order on demand and without delay otherwise the Trial Run shall be postponed until after the BUYER’s
representatives have arrived at the SSC’s Shipyard and any delays as a result thereof shall not count as a permissible delay under Article VIII thereof. However, should the nationalities and other personal particulars of the BUYER’s
representatives not be acceptable to the SELLER in accordance with its best understanding of the relevant rules, regulations and/or Laws of the People’s Republic of China then prevailing, then the BUYER shall, on the SELLER’s telefax
demand, effect replacement of all or any of them promptly. Otherwise the Delivery Date as stipulated in Article VII hereof shall be extended by the delays so caused by the BUYER. In the event of unfavourable weather on the date specified for the
Trial Run, the same shall take place on the first available day thereafter that the weather conditions permit. The parties hereto recognise that the weather conditions in Chinese waters in which the 

  

					
	  
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Trial Run is to take place are such that great changes in weather may arise momentarily and without warning and, therefore, it is agreed that if during the Trial Run of the VESSEL, the weather
should suddenly become unfavourable, as would have precluded the continuance of the Trial Run, the Trial Run of the VESSEL shall be discontinued and postponed until the first favourable day next following, unless the BUYER shall assent by telefax
and/or email of its acceptance of the VESSEL on the basis of the Trial Run made prior to such sudden change in weather conditions. In the event that the Trial Run is postponed because of unfavourable 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 of the VESSEL are to be for the account of the BUILDERS, who, during the Trial Run and when subjecting
the VESSEL to Trial Run, is to provide, at its own expense, the necessary crew to comply with conditions of safe navigation. The Trial Run shall be conducted in the manner prescribed in the Specifications and shall prove fulfilment of the
performance required for the Trial Run as set forth in the Specifications. 

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

	(b)	 The BUILDERS 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 BUILDERS. The Supervisor
shall receive, at least Thirty (30) days notice in advance of the Trial Run, the quantity of lubricating oil and hydraulic oil which the BUYER is obliged to supply for the conduct of the Trial Run. 

 

	3.	 TRIAL LOAD DRAFT 

In addition to the supplies provided by the BUYER in accordance with sub-paragraph (b) of the preceding Paragraph 2 hereof, the BUILDERS
shall 

  

					
	  
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 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 Specification, shall be for the BUILDERS’ account. 

 

	4.	 METHOD OF ACCEPTANCE OR REJECTION 

  

	(a)	 Upon notification of the BUILDERS of the completion of the Trial Run of the VESSEL, the BUYER or the BUYER’s Supervisor shall within six
(6) Business Days thereafter, notify the BUILDERS by telefax and/or email of its acceptance of the VESSEL or of its rejection of the VESSEL together with the reasons therefore. 

 

	(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 BUILDERS shall investigate with the Supervisor the cause of failure and the proper steps shall be taken to remedy the same and shall make whatever corrections and alterations and/or re-Trial
Run or Runs as may be necessary without extra cost to the BUYER, and upon notification by the BUILDERS of completion of such alterations or corrections and/or re-trial or re-trials, the BUYER shall, within six (6) Business Days thereafter,
notify the SELLER by telefax and/or email of its acceptance of its VESSEL or of the rejection of the VESSEL together with the reason therefore on the basis of the alterations and corrections and/or re-trial or re-trials by the BUILDERS.

  

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

 

	(d)	 Any dispute arising among the parties hereto as to the result of any Trial Run or 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 as aforesaid and the SELLER shall be obliged to 

  

					
	  
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comply with and/or remove such qualifications and/or remarks (if such qualifications and/or remarks are not in line with the Specifications) 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 BUILDERS 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 SELLER’s actual purchase price for such supply, and payment by the BUYER shall be effected as provided in Article
II 3 (d) and 4 (d) 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 (d) and 4 (d) of this Contract against invoices provided by the BUYER. 
  

	6.	 EFFECT OF ACCEPTANCE 

The BUYER’s acceptance of the VESSEL by written or telefax notification sent to the SELLER, in accordance with the provisions set out
above, shall be final and binding so far as conformity of the VESSEL to this Contract and the Specifications is concerned, and shall preclude the BUYER from refusing formal delivery 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 are of minor importance, and do not in any way affect the safety or the operation of the VESSEL, its crew, passengers or cargo and provided the
Classification Society has issued all certificates in accordance with the provisions as specified in Article VII, paragraph 3(f) 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: 
  

	(i)	 the Seller shall for its own account remedy the deficiency and fulfill the requirements as soon as possible, or 

  

					
	  
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	ii)	 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 from China 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 SSC’s shipyard, in accordance with the Specifications and with
all Classification and Statutory Certificates and after completion of Trial Run (or, as the case may be, re-Trial or re-Trials) and acceptance by the BUYER in accordance with the provisions of Article VI hereof on or before
                     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. 

The aforementioned date or such later date to which delivery is extended pursuant to the terms of this Contract is hereinafter called the
“Delivery Date”. 
  

	2.	 WHEN AND HOW EFFECTED 

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

  

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

 

	(d)	 FINISHED DRAWINGS, PLANS AND INSTRUCTION BOOKS pertaining to the VESSEL as stipulated in the Specifications, made by the BUILDERS and if any, where
relevant, its Sub-contractors. 

  

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

 

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

Certificates shall be issued by relevant authorities or Classification Society. The VESSEL shall comply with the above rules
and regulations which are in effect at the time of signing this Contract. 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 BUILDERS, then the provisional certificate or certificates as issued by the Classification Society or the third party other than the BUILDERS with the full term certificates to be furnished by the BUILDERS 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 sub-contractors, employees and crews and/or all liabilities arising from the operation of the VESSEL in Trial Run or Trial Runs, or otherwise, prior to delivery. 

 

	(h)	 COMMERCIAL INVOICE made by the SELLER. 

  

	(i)	 BILL OF SALE made by the SELLER duly notarized and if required for the VESSEL’s registration, legalised, provided the BUYER shall inform

  

					
	  
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the SELLER 2 months prior to the delivery of the VESSEL. 

  

	(j)	 BUILDERS’ CERTIFICATE (to be jointly signed by the BUILDERS) made by the SELLER duly notarized and if required for the VESSEL’s
registration, legalised, provided the BUYER shall inform the SELLER 2 months prior to the delivery of the VESSEL. 

  

	(k)	 Prior delivery a complete list of certificates is to be furnished. However SELLER and BUILDERS will provide necessary assistance to the BUYER for
documents requested for the VESSEL’s registration and/or by the BUYER’s financing bank. 

  

	4.	 TITLE AND RISK 

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

 

	5.	 REMOVAL OF VESSEL 

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

 

	6.	 TENDER OF THE VESSEL 

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

  

					
	  
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 ARTICLE VIII - DELAYS & EXTENSION OF TIME FOR DELIVERY 

 

	1.	 CAUSE OF DELAY 

If, at any time either the construction or delivery of the VESSEL, or any performance required hereunder as a prerequisite of delivery of the
VESSEL, is delayed due to war, blockade, revolution, insurrection, mobilisation, civil commotions, riots, strikes, sabotage, lockouts, local temperature higher than 35 degree centigrade (provided that the first five (5) days such aggregate but
not necessarily continuous days shall not be counted as a permissible delay under this Contract and further provided that the SELLER shall immediately notify the BUYER of such delay), Acts of God or the public enemy, plague or other epidemics,
quarantines, prolonged failure or restriction of electric current from an outside source, freight embargoes, if any, earthquakes, tidal waves, typhoons, hurricanes, storms or other causes beyond the control of the BUILDERS or of its sub-contractors,
as the case may be, or by force majeure of any description, whether of the nature indicated by the forgoing or not, or by destruction of the BUILDERS or works of the BUILDERS or its sub-contractors, or of the VESSEL or any part thereof, by fire,
flood, or other causes beyond the control of the SELLER or its sub-contractors as the case may be, provided that such causes could not be foreseen at the time of signing this CONTRACT, or due to the bankruptcy of the equipment and/or material
supplier or suppliers provided the SELLER has exercised due diligence in its selection of supplier(s), or due to the delay caused by acts of God in the supply of parts essential to the construction of the VESSEL, then, in the event of delay due to
the happening of any of the aforementioned contingencies, the Seller shall not be liable for such delay and the time for delivery of the VESSEL under this Contract shall be extended without any reduction in the Contract Price for a period of time
which shall not exceed the total accumulated time of all such delays, subject nevertheless to the BUYER’s right of cancellation under Paragraph 3 of this Article and subject however to all relevant provisions of this Contract which authorise
and permit extension of the time of delivery of the VESSEL. 
  

	2.	 NOTICE OF DELAY 

Within twenty (20) days from the date of commencement of any delay on account of which the SELLER claims that it is entitled under this
Contract to an extension of the time for delivery of the VESSEL, the SELLER shall advise the BUYER by telefax and/or email, of the date such delay commenced, and the reasons therefor. 

  

					
	  
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 Likewise within twenty (20) days after such delay ends, the SELLER shall advise the
BUYER in writing or by telefax and/or email, of the date such delay ended, and also shall specify the maximum period of the time by which the date for delivery of the VESSEL is extended by reason of such delay. Failure of the BUYER to acknowledge
the SELLER’S notification of any claim for extension of the Delivery Date within 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. 

Failure of the BUILDERS to notify the BUYER of any Force Majeure event in accordance with the above shall preclude the BUILDERS from claiming
Force Majeure for such event. 
  

	3.	 RIGHT TO CANCEL FOR EXCESSIVE DELAY 

If the total accumulated time of all delays on account of the causes specified in Paragraph 1 of the Article aggregate to One Hundred and
Eighty (180) days or more, excluding delays due to arbitration as provided for in Article XIII hereof or due to default in performance by the BUYER, or due to delays in delivery of the BUYER’s supplied items, and excluding delays due to
causes which, under Article V, VI, XI and XII hereof, permit extension or postponement of the time for delivery of the VESSEL, then in such event, the BUYER may in accordance with the provisions set out herein cancel this Contract by serving upon
the SELLER telefaxed notice of cancellation which shall be confirmed in writing and/or email and the provisions of Article X of this Contract shall apply. 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 any further delay occurs on account of causes justifying cancellation as specified
in this Contract, the BUYER shall have the same right of cancellation upon the same terms as hereinabove provided. 
  

	4.	 DEFINITION OF PERMISSIBLE DELAY 

Delays on account of such causes as provided for in Paragraph 1 and 3 of this Article shall be understood to be (and are herein referred to
as) permissible delays, and are to be distinguished from non-permissible 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 

The SELLER, for a period of
                     months following delivery to the BUYER of the VESSEL, guarantees the VESSEL, her hull and machinery and all parts and
equipment thereof that are manufactured or furnished or supplied by the SELLER and/or its sub-contractors (and, for the avoidance of doubt, its employees and/or agents) under this Contract including material, equipment (however excluding any parts
for the VESSEL which have been supplied by or on behalf of the BUYER) against all defects which are due to defective materials, faulty design and/or poor workmanship. 

Notwithstanding the above, in the event that within the guarantee period of
                     months any remedies are carried out or replacements are provided by the BUILDERS and/or its subcontractors, the guarantee
period in respect to such repairs or replacements shall be extended for the period of                      months from the date upon which the
same are carried out, provided that the total accumulated period of guarantee shall not exceed                      months from the date of
delivery of the VESSEL. 
  

	2.	 NOTICE OF DEFECTS 

The BUYER shall notify the SELLER in writing, or by telefax and/or email, as promptly as possible, 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 thirty (30) days after such expiry date. Telefaxed advice with brief details explaining the nature of such defect and extent of
damage within thirty (30) days after such expiry date and that a claim is forthcoming will be sufficient compliance with the requirements as to time. 
  

	3.	 REMEDY OF DEFECTS 

The SELLER shall remedy at its expense any defects, against which the VESSEL or any part of the equipment thereof is guaranteed under this
Article by making all necessary repairs and/or replacement. Such repairs and/or replacement will be made by the SELLER including the cost of dry-dock 

  

					
	  
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should the same be necessary for repairing such defects of the VESSEL. However, the necessity for repairing the effects in Dry Dock shall be evaluated and confirmed by the BUILDERS. 

However, if it is impractical to make the repair by the SELLER, and if forwarding by the SELLER of replacement parts, and materials can not be
accomplished without impairing or delaying the operation or working of the VESSEL, then, in any such event, the BUYER shall, cause the necessary repairs or replacements to be made elsewhere at the discretion of the BUYER provided that the BUYER
shall first and in all events, will, as soon as possible, give the SELLER notice in writing, or by telefax and/or email of the time and place such repairs will be made and, if the VESSEL is not thereby delayed, or her operation or working is not
thereby delayed, or her operation or working is not thereby impaired, the SELLER shall have the right to verify by its own representative(s) or that of Classification Society at the SELLER’s expense the nature and extent of the defects
complained of. The SELLER shall, in such cases, promptly advise the BUYER, by telefax and/or email, after such examination has been completed, of its acceptance or rejection of the defects as ones that are subject to the guarantee herein provided.
In all minor cases, the Guarantee Engineer, as hereinafter provided for, will act for and on behalf of the SELLER. 
 In any circumstances
as set out below, the SELLER shall immediately pay to the BUYER in United States Dollars by telegraphic transfer the actual cost for such repairs or replacements including forwarding charges, or at the average cost for making similar repairs or
replacements including forwarding charges as quoted by a leading shipyard each in P.R.China, Dubai, Portugal and Singapore, whichever is lower: 
  

	(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. 

 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 regards to defects 

  

					
	  
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discovered after the expiration of the period of guarantee specified above. 
 The
SELLER shall be liable to the BUYER for defects and damages caused by any of the defects specified in Paragraph 1 of this Article provided that such liability of the SELLER shall be limited to damage occasioned within the guarantee period specified
in Paragraph 1 above. The SELLER shall not be obligated to repair, or to be liable for, damages to the VESSEL, or to any part of the equipment thereof, due to ordinary wear and tear or caused by the defects other than those specified in Paragraph 1
above, nor shall there be any SELLER’s liability hereunder for defects in the VESSEL, or any part of the equipment thereof, caused by fire or accidents at sea or elsewhere, or mismanagement, accidents, negligence, or wilful neglect, on the part
of the BUYER, its employees or agents including the VESSEL’s officers, crew and passengers, or any persons on or doing work on the VESSEL other than the SELLER, its employees, agents or sub-contractors. 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 sub-contractors. 

Upon delivery of the VESSEL to the BUYER, in accordance with the terms of the Contract, the SELLER shall thereby and thereupon be released of
all responsibility and liability whatsoever and howsoever arising under or by virtue of this Contract (save in respect of those obligations to the BUYER expressly provided for in this Article 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. Neither CSTC nor the BUILDERS shall, in any
circumstances, be liable for any consequential loss or special loss, or expenses arising from any cause whatsoever including, without limitation, loss of time, loss of profit or earnings or demurrage directly from any commitments of the BUYER in
connection with the VESSEL. 
 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 authorised representatives of the
SELLER, and the BUYER. In case parts are being repaired or replaced by the SELLER or their subcontractors, whether the guarantee period to be extended 

  

					
	  
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or not shall be agreed upon by the BUYER and the SELLER. 
  

	5.	 GUARANTEE ENGINEER 

The BUILDERS shall appoint one or two Guarantee Engineer(s) to serve the VESSEL as the BUILDERS’ representative(s) for a period up to
twelve (12) months from the delivery of the VESSEL as the SELLER may decide the period of his staying on the VESSEL. The BUYER, and its employees, shall give such Guarantee Engineer(s) full co-operation in carrying out his/their duties as the
representative(s) of the BUILDERS on board the VESSEL. The BUYER shall accord the Guarantee Engineer(s) the treatment comparable to the VESSEL’s Chief Engineer, and shall provide him with accommodation and subsistence at no cost to the BUILDERS
and/or the Guarantee Engineer(s). 
 The BUYER shall pay to the Guarantee Engineer(s) 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 repatriation to
Beijing, the People’s Republic of China by air upon termination of his/their service, the expense of his/their communications with the BUILDERS when made in performance of his/their duties as the Guarantee Engineer(s) and the expenses, if any,
of his/their medical and hospital care. The BUYER, its successor(s) and/or assign(s), shall be liable to and indemnify the BUILDERS and/or the Guarantee Engineer(s) and/or the SELLER for personal injuries, including death and damages to, or loss or
destruction of property of the Guarantee Engineer(s), if such death, injuries, damages, loss and/or destruction were caused by gross negligence or wilful misconduct of the BUYER, its successor(s) and/or assign(s) or its employees and/or agents. 

Pertaining to the detailed particulars of this Paragraph, an agreement will be made according to this effect between the parties hereto upon
delivery of the VESSEL. 

  

					
	  
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 ARTICLE X - CANCELLATION, REJECTION AND RESCISSION BY 

THE BUYER 
 1. All payments
made by the BUYER prior to the delivery of the VESSEL shall be in the nature of 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 or there is any event specifically permitting the BUYER to do so pursuant to paragraph 2 below, then the BUYER shall notify the SELLER in writing or by telefax and/or email, and such
cancellation and/or rescission shall be effective as of the date the notice thereof is received by the SELLER. 
 2. The occurrences of the
following events, permit specifically the BUYER to rescind or cancel the Contract:- 
  

	 	(a)	 there occurs a making of an order by the competent court in the PRC having jurisdiction on all the entities of the BUILDERS ordering all the
entities of the BUILDERS into compulsory bankruptcy; or 

  

	 	(b)	 the passing of an effective resolution by the Board of Directors of all the entities of the BUILDERS for ceasing completely the building activity
and winding up of the business; or 

  

	 	(c)	 the making of any special arrangement or composition with the creditors of either or any analogous proceedings in the People’s Republic of
China, with a clear consequence admitted by all the entities of the BUILDERS that all the entities of the BUILDERS shall be henseforward totally and completely unable to perform its obligations hereunder. 

3. Thereupon the SELLER shall refund in United States dollars immediately to the BUYER the full amount of all sums paid by the BUYER to the
SELLER on account of the VESSEL, unless the SELLER disputes the BUYER’s cancellation and/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 the Refund Guarantor under the Refund Guarantee, until the arbitration award between the
BUYER and the SELLER which shall be in favour of the BUYER, declaring the BUYER’s cancellation and/or rescission justified and/or that the BUYER is entitled to the refundment of any payment made by the BUYER to the SELLER, is issued and
delivered to the SELLER by the arbitration tribunal having jurisdiction on the dispute. In the event that 

  

					
	  
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the SELLER is obligated to make refundment, the SELLER shall pay the BUYER interest in United States Dollars at the rate of five percent (5%) per annum, if the cancellation or rescission of
the Contract is exercised by the BUYER in accordance with the provision of this Article X 2 or Article III 1(c), 2(c), 3(c) or 4(c) hereof, on the amount required herein to be refunded to the BUYER computed from the respective dates when such sums
were received by the                      or any such other bank account as nominated by the SELLER pursuant to Article II 4(a) 4(b) or 4(c) from the
BUYER to the date of remittance by telegraphic transfer of such refund to the BUYER by the SELLER, provided, however, that if the said rescission by the BUYER is made under the provisions of Paragraph 3 of Article VIII, then in such event the SELLER
shall not be required to pay any interest. 
 4. 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 

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

 

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

  

	(b)	 The BUYER fails to pay the fourth instalment to the SELLER in accordance with Paragraph 3(d) and 4(d) of Article II hereof provided the BUYER shall
have received the SELLER’s demand for payment in accordance with Article II hereof and provided that the VESSEL is completed in accordance with the terms and conditions of the Contract and Specifications; 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 after the VESSEL is completed in accordance with the terms and conditions of this Contract and Specifications. 

Provided that where the BUYER fails to make a payment in accordance with the terms of Article II hereof due to any banking system disruption
beyond the control of the BUYER, then the time for the payment of any such instalment due under the provisions of Article II hereof shall be extended for a period of two (2) Business Days. 

 

	2.	 NOTICE OF DEFAULT 

If the BUYER is in default of payment or in performance of its obligations as provided hereinabove, the SELLER shall notify the BUYER to that
effect by telefax after the date of occurrence of the default as per Paragraph 1 of this Article and the BUYER shall forthwith acknowledge by telefax to the SELLER that such notification has been received. In case the BUYER does not give the
aforesaid telefax acknowledgement to the SELLER within five (5) calendar days, it shall be deemed that such notification has been duly received by the BUYER. 

  

					
	  
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	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 at the rate of five percent (5%) per annum from the due date thereof until the date of the payment of the full amount, including all aforesaid interest. In case the BUYER shall fail to take delivery of the VESSEL when
required to as provided in Paragraph 1(c) of this Article, the BUYER shall be deemed in default of payment of the fourth 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, as provided in Article VII Paragraph 6 hereof. 

  

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

  

	4.	 DEFAULT BEFORE DELIVERY OF THE VESSEL 

  

	(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 Thirty
(30) days, then, the SELLER shall have all following rights and remedies: 

  

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

  

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

  

					
	  
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	 	(iii)	 (Applicable to any BUYER’s default defined in 1(a) of this Article) The SELLER shall, without prejudice to the SELLER’s right to recover
from the BUYER the 4th instalment, interest, reasonable costs and/or expenses by applying the proceeds to be obtained by sale of the VESSEL in accordance with the provisions set out in this Contract, have the right to declare all unpaid 1st, 2nd and
3rd instalments to be forthwith due and payable. 

  

	5.	 SALE OF THE VESSEL 

  

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

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

 

	(b)	 In the event of the sale of the VESSEL in its completed state, the proceeds of sale received by the SELLER shall be applied firstly to payment of
all expenses attending such sale and otherwise incurred by the SELLER as a result of the BUYER’s default, and then to payment of all unpaid 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, as herein mentioned, shall include but are not
limited to all costs of labour and/or prices paid or to be paid by CSTC and/or the BUILDERS for the equipment and/or technical design and/or materials purchased or to be purchased, installed and/or to be installed on the VESSEL) and/or any fees,
charges, expenses and/or royalties incurred and/or to be incurred for the VESSEL less the instalments so retained by the SELLER, and compensation to the SELLER for a reasonable sum of loss of profit due

  

					
	  
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to the cancellation or rescission of this Contract. 

  

	(d)	 In either of the above events of sale, if the proceeds of sale exceeds the total of the amounts to which such proceeds are to be applied as
aforesaid, the SELLER shall promptly pay the excesses to the BUYER without interest, provided, however that the amount of 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 proceeds of sale are insufficient to pay such total amounts payable as aforesaid, the BUYER shall promptly pay the deficiency to the SELLER
upon request. 

  

					
	  
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 ARTICLE XII - INSURANCE 

 

	1.	 EXTENT OF INSURANCE COVERAGE 

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

The amount of such insurance coverage shall, up to the date of delivery of the VESSEL, be in an amount at least equal to, but not limited to,
the aggregate of the payments made by the BUYER to the SELLER including the value of the BUYER’s Supplies. The policy referred to hereinabove shall be taken out in the name of the SELLER and all losses under such policy shall be payable to the
SELLER. The SELLER shall provide the BUYER with a copy of the insurance policy/policies at the BUYER’s request. 
  

	2.	 APPLICATION OF RECOVERED AMOUNT 

(a) Partial Loss: 

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

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

 

	 	(i)	 By the mutual agreement between the parties hereto, proceed in 

  

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

  

	 	(ii)	 If due to whatever reasons the parties fail to agree on the above, then refund immediately to the BUYER the amount of all instalments paid to the
SELLER under this Contract with interest at the rate of two percent (2%) per annum, whereupon this Contract shall be deemed to be cancelled and all rights, duties, liabilities and obligations of each of the parties to the other shall terminate
forthwith. 

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

 

	3.	 TERMINATION OF THE SELLER’S OBLIGATION TO INSURE 

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

  

					
	  
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 ARTICLE XIII - DISPUTES AND ARBITRATION 

 

	1.	 PROCEEDINGS 

In the event of any dispute between the parties hereto as to any matter arising out of or relating to this Contract or any stipulation herein
or with respect thereto which cannot be settled by the parties themselves or in accordance with Paragraph 2 hereof, such dispute shall be resolved by arbitration in London, England in accordance with the Laws of England and conducted under the
latest LMAA rules available. Either party may demand arbitration of any such disputes by giving written notice to the other party. Any demand for arbitration by either party hereto shall state the name of the arbitrator appointed by such party and
shall also state specifically the question or questions as to which such party is demanding arbitration. Within twenty (20) days after receipt of notice of such demand for arbitration, the other party shall in turn appoint a second arbitrator.
The two arbitrators thus appointed who shall be full members of the LMAA will thereupon select a third arbitrator, and the three arbitrators so named shall constitute the board of arbitration (hereinafter called the “Arbitration Board”)
for the settlement of such dispute. 
 In the event however, that said other party should fail to appoint a second arbitrator as aforesaid
within twenty (20) days following receipt of notice of demand of arbitration, it is agreed that such party shall thereby be deemed to have accepted and appointed as its own arbitrator the one already appointed by the party demanding
arbitration, and the arbitration shall proceed forthwith before this sole arbitrator, who alone, in such event, shall constitute the Arbitration Board. And in the further event that the two arbitrators appointed respectively by the parties hereto as
aforesaid should be unable to reach agreement on the appointment of the third arbitrator within twenty (20) days from the date on which the second arbitrator is appointed, either party of the said two arbitrators may apply to LMAA (the London
Maritime Arbitrators Association) in England having jurisdiction in such matter to appoint the third arbitrator. The award of the arbitration, made by the sole arbitrator or by the majority of the three arbitrators as the case may be shall, subject
to the terms of the Arbitration Act 1996 applying to arbitrations in London, be final, conclusive and binding upon the parties hereto. 
  

	2.	 ALTERNATIVE DISPUTE RESOLUTION BY AGREEMENT 

Notwithstanding the preceding provisions of this Article, it is recognised that in the event of any dispute or difference of opinion arising
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construction of the VESSEL, her machinery and equipment, or concerning the quality of materials or workmanship thereof or thereon, such dispute may be referred to the Classification Society upon
mutual agreement of the parties hereto. In such case, the opinion of the Classification Society shall be final and binding on the parties hereto. 
  

	3	 NOTICE OF AWARD 

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

 

	4.	 EXPENSES 

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

	5.	 AWARD OF ARBITRATION 

Award of arbitration shall be final and binding upon the parties concerned, who also agree to waive to appeal to court. 

 

	6.	 ALTERATION OF DELIVERY TIME 

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

  

					
	  
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 ARTICLE XIV - RIGHT OF ASSIGNMENT 

Neither of the parties hereto shall assign this Contract to any other individual, firm, company or corporation unless prior consent of the
other party is given in writing, provided that the BUYER may assign its rights (but not its obligations) under this Contract to their financier or its guaranteed subsidiary in connection with the financing of the BUYER’s payment obligations
under this Contract with the prior consent of the SELLER (such consent not to be unreasonably withheld or delayed). 

  

					
	  
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 ARTICLE XV - TAXES AND DUTIES 

 

	1.	 TAXES 

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

	2.	 DUTIES 

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

  

					
	  
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 ARTICLE 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 should not be terminated by the passage of any specified period of time. All royalty, licence fees and other similar charges payable to third parties on account of parts or equipment for the VESSEL furnished by the
SELLER, shall be for the account of the SELLER. 
 The SELLER’s indemnity hereunder does not extend to equipment or parts supplied by
the BUYER to the BUILDERS 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:	  	
		  	
		  	
	Attention:	  	
	Tel	  	
	Fax	  	
	Mob	  	
	Email	  	
		
	To CSTC:	  	
	Address:	  	
		  	
	Telefax No.:	  	
	Email:	  	
		  	
		
	To the BUILDERS:	  	Hudong-Zhonghua Shipbuilding (Group) Co., Ltd.
	Address:	  	 2851 Pudong Da Dao, Shanghai 200129,
 The
People’s Republic of China

		
		  	Shanghai Shipyard Co., Ltd.
	Address:	  	 No. 1 Jianghai Road, Shuxin Town,
 Chongming,
Shanghai 202164

 Any notices and communications sent by CSTC or the BUILDERS alone to the BUYER shall be deemed as having being
sent by both CSTC and the BUILDERS. 
 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 

  

					
	  
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give such notice of change, communications addressed to the party at their last known address shall be deemed sufficient. 

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

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

  

					
	  
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 ARTICLE XVIII - EFFECTIVE DATE OF CONTRACT 

This Contract shall become effective upon execution and signing of this Contract. 

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

 

	(1)	 The SELLER shall deliver to the BUYER, within twenty (20) Business Days after the signing of this Contract, a Refund Guarantee covering the
SELLER’s obligation for repayment of the 1st, 2nd and 3rd instalments to be issued by the Refund Guarantor in accordance with the terms of Article II paragraph 7 hereto. 

 

	(2)	 Following receipt by the BUYER of the Refund Guarantee, the BUYER shall effect the payment of the first instalment in accordance with the terms of
Article II paragraph 3(a) and 4(a) hereto. 

  

					
	  
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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 English Law. 
  

	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 

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”. 

  

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

									
	THE BUYER:                    
			
	 By:
	 	 	 	
	 Name:
	 	
	 Title:
	 	
	
	 THE SELLER
  

CSTC:                    

			
	 By:
	 	 	 	
	Name:	 	
	Title:	 	
	
	 THE BUILDERS:
  

HUDONG-ZHONGHUA SHIPBUILDING (GROUP) CO., LTD.

			
	 By:
	 	 	 	
	Name:	 	
	Title:	 	
	
	SHANGHAI SHIPYARD CO., LTD.
			
	 By:
	 	 	 	
	Name:	 	
	Title:	 	

  

					
	  
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 Exhibit “A” (REFUND GUARANTEE) 

IRREVOCABLE LETTER OF GUARANTEE 
 To: 

Date: 
 Dear Sirs, 

Irrevocable Letter of Guarantee
No.                                         
                                         
               
 At the request of China Shipbuilding Trading
Company, Limited and in consideration of your entering into a Shipbuilding Contract with China Shipbuilding Trading Company, Limited and Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. and Shanghai Shipyard Co., Ltd. (hereafter collectively called
“the SELLER”) dated for the construction of one (1) 82,000 Metric Tons Deadweight Bulk Carrier to be designed as Hull No.              (hereafter called “the
Contract”), we,                     , do hereby irrevocably guarantee repayment to you by the SELLER of an amount up to but not exceeding a
total amount of United States Dollars                      representing the first instalment of the contract price of the VESSEL, United States
Dollars                      and the second instalment of the contract price of the VESSEL, United States Dollars
                    , the third instalment of the contract price of the vessel, United States Dollars
                    , as you may have paid to the SELLER under the Contract prior to the delivery of the VESSEL, if and when the same or any part
thereof becomes repayable to you from the SELLER in accordance with the terms of the Contract. Should the SELLER fail to make such repayment, we shall pay you against your written demand, which shall be made through registered mail or authenticated
SWIFT message. The amount of such repayment together with interest in the rate of five percent (5%) per annum on such amount in accordance with the terms Article III 1(c), 2(c), 3(c) or 4(c) or Article X 2 of the Contract or two percent
(2%) in accordance with the terms Article XII 2 (b) of the Contract, calculated from the date of receipt by the SELLER of the respective instalment to the date of repayment thereof, as notified to us in your written demand as the case may
be in accordance with the terms of the Contract. 

  

					
	  
 Date:
                    
	  	  
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	 Shipbuilding Contract
	  	Hull No.                   

 

 Against your written demand as mentioned above and the Buyer’s written 

simple statement certifying that the Buyer’s demand for refund has been made pursuant to the Contract and the SELLER has failed to make
the refund, refund shall be made by us to the Buyer by telegraphic transfer in United States Dollars. 
 However, in the event of any
dispute between you and the SELLER in relation to 
 (1) Whether the SELLER shall be liable to repay the above mentioned instalment or
instalments paid by you and 
 (2) Consequently whether you shall have the right to demand payment from us 

If such dispute is submitted either by the SELLER or by you for arbitration in accordance with Article XIII of the Contract, we shall be
entitled to withhold and defer payment until such arbitration award is published. We shall not be obligated to make any payment to you unless the arbitration award orders the SELLER to make repayment of all or any part of above mentioned
instalments. If the SELLER fails to honour the award within thirty (30) business days from the date of issue of such award then we shall refund to you to the extent the arbitration award orders but not exceeding the aggregate amount of this
guarantee plus the interest described above. 
 The said repayment shall be made by us in United States Dollars to such account as notified
by you to us. 
 This Letter of Guarantee shall become effective from the actual receipt of the first instalment by the SELLER from you in
accordance with the terms of the Contract. The amounts effective under this Letter of Guarantee shall correspond to the total payment actually made by you from time to time under the Contract prior to the delivery of the VESSEL. However, the amount
guaranteed under this Letter of Guarantee shall in no event exceed the aggregate of the above-mentioned instalments paid to the SELLER, together with interest calculated, as described above. 

You may not assign your rights under this Letter of Guarantee without our prior written consent which shall not be unreasonable withheld. 

This Letter of Guarantee shall remain in force until the earlier to occur of (A) the VESSEL has been delivered under the Shipbuilding
Contract as duly evidenced by a protocol of delivery and acceptance signed by BUYER and 

  

					
	  
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	 Shipbuilding Contract
	  	Hull No.                   

 

 
SELLER or (B) refund of all amounts paid by the BUYER under the Contract and secured by this Refund Guarantee have been made by the SELLER or ourselves in accordance with the terms of the
Contract or this Letter of Guarantee (as the case may be) or (C) until                      (but this date shall be extended to 30 days after
delivery of a final unappealable award or judgement if arbitration therefrom are pending at that time) or (D) such arbitration as is referred to above have been determined with an award that the SELLER is not obligated to repay all or any part
of the above mentioned instalments, after which you are to return to us by airmail for cancellation. 
 This Letter of Guarantee shall be
governed and construed in accordance with English Law and the undersigned hereby submits to the exclusive jurisdiction of the courts of England. 

  

					
	  
 Date:
                    
	  	  
 60/63
	  	

			
	 Shipbuilding Contract
	  	Hull No.                   

 

 Exhibit “B” IRREVOCABLE LETTER OF GUARANTEE 

                        FOR THE 2ND
AND 3RD INSTALLMENTS 
 To: China Shipbuilding Trading Co., Ltd. Date:
                             

56(B) Zhongguancun Nandajie, Beijing 

100044 China 
 Dear Sirs, 

(1) In consideration of your entering into a Ship Sale Contract dated        (“the Shipbuilding
Contract”) with                     as the buyer (“the BUYER”) for the construction of one (1) 82,000 Metric Tons Deadweight Bulk
Carrier known as Shanghai Shipyard Co., Ltd.’s Hull No.            (the “VESSEL”), we,
                                        , hereby
IRREVOCABLY, ABSOLUTELY and UNCONDITIONALLY guarantee, as the primary obligor and not merely as the surety, the due and punctual payment by the BUYER of all of the 2nd and 3rd installments of the Contract Price amounting to a total sum of United
States Dollars                      as specified in (2) below. 
  

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

  

	(3)	 We also IRREVOCABLY, ABSOLUTELY and UNCONDITIONALLY guarantee, as primary obligor and not merely as surety, the due and punctual payment by the
BUYER of interest on the 2nd and 3rd Instalments guaranteed hereunder at the rate of Five percent (5%) per annum (calculated on a 360 day basis) from and including the first day after the date of instalment in default until the date of full
payment by the BUYER or us of such amount guaranteed hereunder. 

  

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

  

					
	  
 Date:
                    
	  	  
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	 Shipbuilding Contract
	  	Hull No.                   

 

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

  

	(6)	 Any payment by us under this Guarantee shall be made in the Unites States Dollars by telegraphic transfer to Bank of China, New York Branch, 410
Madison Avenue, New York, N.Y. 10017 U.S.A., as receiving bank nominated by you for credit to the account of Export-Import Bank of China, Beijing, the People’s Republic of China (A/C
No.                     ) and further to CSTC Account (A/C
No.                     ) maintained with Export-Import Bank of China, Banking Department, Beijing, the People’s Republic of China with
telex advice from the BUYER’s Bank to The Export-Import Bank of China, Banking Department (SWIFT Code:                     ) or through other
receiving bank to be nominated by you from time to time, in favour of you or your assignee. 

  

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

  

	(8)	 Any claim or demand shall be in writing signed by one of your officers and may be served on us either by hand or by post and if sent by post to
                                         
                            (or such other address as we may notify to you in writing), or by telefax or
e-mail. 

  

	(9)	 This Letter of Guarantee shall come into full force and effect upon delivery to you of this Guarantee and shall continue in force and effect until
the earlier of: (i) the VESSEL is delivered under the Shipbuilding Contract as duly evidenced by a protocol of delivery and acceptance signed by BUYER and SELLER and the BUYER shall have performed all its obligations for taking delivery thereof
or (ii) until the full payment of all 2nd and 3rd Instalments together with the aforesaid interest, if any, by the BUYER or us. 

  

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

  

					
	  
 Date:
                    
	  	  
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	 Shipbuilding Contract
	  	Hull No.                   

 

	 	 
                     being an amount equal to the sum of:- 

 

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

  

	 	(b)	 Interest at the rate of Five percent (5%) per annum on the Instalment for a period of sixty (60) days in the amount of United States
Dollars                     . 

  

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

 

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

  

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

 

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

  

			
	 Very Truly Yours

		
	 By:
	 	 
		 	

  

					
	  
 Date:
                    
	  	  
 63/63

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