Common use of Acceptance or Rejection Clause in Contracts

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, if during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle does not conform to the BUYER to rescind requirements of this CONTRACT, the SPECIFICATIONS and the PLAN, the BUILDER shall notify the BUYER promptly in writing by e-mail or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. to correct such non-conformity. The BUYER shall, within five(5two (2) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3two (2) days after completion of the trial run, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s 's determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT CONTRACT, the SPECIFICATIONS and the SPECIFICATIONS PLAN by such tests or trials as may be necessary. The BUYER shall, within three two (32) days after completion of such tests and/or trials, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONSCONTRACT, butthe SPECIFICATIONS and the PLAN, and which do not effect the issuance of the required certificates from the CLASSIFICATION SOCIETY and regulatory bodies, but that in that such case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5two (2) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, SPECIFICATIONS and the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3two (2) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS and the PLAN or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three two (32) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any Upon completion of sea trial, any breakdown occurs entailing interruption the BUILDER shall give the BUYER a notice in writing or irregular performance which can be repaired on boardby e-mail or telefax of the result of the sea trial, as and if the BUILDER considers that the result of sea trial shall be continued after such repairs indicates conformity of the VESSEL to this CONTRACT and be valid in all respectsthe SPECIFICATIONS and PLAN. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, shall within five(5four (4) working days of after receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notice notify the BUILDER in writing or by facsimile confirmed in writing e-mail or telefax of its acceptance, qualified acceptance or rejection of the VESSEL, all provided that in accordance with case of rejecting the SPECIFICATIONSVESSEL, the PLAN BUYER shall set out in its notice of rejection a detailed, clear explanation of all and any aspects of the VESSEL which it considers do not comply with this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such timeSPECIFICAITONS and/or the PLAN. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment fulfillment of this the CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify If the BUILDER is not in writing or by facsimile confirmed in writing of its acceptance or rejection of agreement with the VESSELBUYER’s determination as to non-conformity, each party shall be entitled to refer the disagreement for determination as per Article XIII. (d) However, the The BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items which do not in any way affect the safety or the operation of the Vessel judged from the point of view of standard the BUILDER’s shipbuilding practice for Crude Oil Carrier, as the BUILDER has been performing for its other clients and shipping practice HSQS (Hyundai Samho Shipbuilding Quality Standard) as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy for its own account such minor or insubstantial items as soon as practicable after the delivery of the VESSEL. If inconvenient for the VESSEL to have such items corrected and/or remedied at the SHIPYARD, the BUILDER shall arrange to have such corrections or remedies carried out elsewhere, and may, if practicable, do such work while the VESSEL is sailing. The BUYER may in its absolute discretion accept a payment in lieu of such items being corrected and/or remedied. Any payment in lieu shall be agreed in writing between the BUILDER and the BUYER. (e) If during any sea trial any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the sea trial shall be continued after such repairs and be valid in all respects. However, if during the sea trial it becomes apparent that the VESSEL or any part of her equipment requires alterations or correction, the BUILDER shall notify the BUYER promptly in writing or by e-mail or telefax to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five (5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by e-mail or telefax of its acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, PLAN and the CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by e-mail or facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5three (3) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by e-mail or facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3three (3) days after completion of the trial run, notify the BUILDER in writing or by e-mail or facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s 's determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment fulfillment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by e-mail or facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, if during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle does not conform to the BUYER to rescind requirements of this CONTRACT, the SPECIFICATIONS and the PLAN, the BUILDER shall notify the BUYER promptly in writing by e-mail or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. to correct such non-conformity. The BUYER shall, within five(5two (2) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3two (2) days after completion of the trial run, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s 's determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT CONTRACT, the SPECIFICATIONS and the SPECIFICATIONS PLAN by such tests or trials as may be necessary. The BUYER shall, within three two (32) days after completion of such tests and/or trials, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL▇▇▇▇▇▇. (d▇) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONSCONTRACT, butthe SPECIFICATIONS and the PLAN, and which do not effect the issuance of the required certificates from the CLASSIFICATION SOCIETY and regulatory bodies, but that in that such case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. Subject to full, faithful and punctual performance and discharge by the Company of all of its duties, obligations and responsibilities as set forth in this Agreement and any other agreement entered into between the Subscriber and the Company relating to this subscription (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on boardcollectively, the trial “Transaction Documents”), the Subscriber shall be continued after such repairs legally bound to purchase the Units pursuant to the terms and be valid conditions set forth in all respects. this Agreement. For the avoidance of doubt, upon the occurrence of the failure by the Company to fully, faithfully and punctually perform and discharge any of its duties, obligations and responsibilities as set forth in any of the Transaction Documents, which shall have been performed or otherwise discharged prior to the Closing, the Subscriber may, on or prior to the Closing (b) Howeveras defined below), ifat its sole and absolute discretion, during or after elect not to purchase the trial run, it becomes apparent Units and provide instructions to the Company to receive the full and immediate refund of the Aggregate Purchase Price. The Subscriber understands and agrees that the VESSEL Company reserves the right to reject this subscription for Units in whole or part in any part of her equipment requires alterations order at any time prior to the Closing for any reason or corrections which but for this provision would or might entitle no reason, notwithstanding the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of Subscriber’s prior receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of Subscriber’s subscription. In the details in respect of which event the VESSEL Closing does not conform take place because of (i) the rejection of subscription for Units by the Company; or (ii) the election not to purchase the Units by the Subscriber; or (iii) a Tranche expires prior to any closings taking place under such Tranche (provided, that, the Company may in its sole discretion continue the offering and include any subsequent Subscribers in a subsequent Tranche, subject to the SPECIFICATIONS maximum amount of $4,000,000 in Units offered) for any reason or no reason, this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformityAgreement and any other Transaction Documents shall thereafter be terminated and have no force or effect, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests parties shall take all steps, to ensure that the Aggregate Purchase Price shall promptly be returned or trials as may caused to be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify returned to the BUILDER in writing Subscriber without interest thereon or by facsimile confirmed in writing of its acceptance or rejection of the VESSELdeduction therefrom. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. Subject to full, faithful and punctual performance and discharge by the Offeror of all of its duties, obligations and responsibilities as set forth in this Agreement and any other agreement entered into between the Purchaser and the Offeror relating to this subscription (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on boardcollectively, the trial “Transaction Documents”), the Purchaser shall be continued after such repairs legally bound to purchase the Units pursuant to the terms and be valid conditions set forth in all respects. this Agreement. For the avoidance of doubt, upon the occurrence of the failure by the Offeror to fully, faithfully and punctually perform and discharge any of its duties, obligations and responsibilities as set forth in any of the Transaction Documents, which shall have been performed or otherwise discharged prior to the Closing, the Purchaser may, on or prior to the Closing (b) Howeveras defined below), ifat its sole and absolute discretion, during or after elect not to purchase the trial run, it becomes apparent Units and provide instructions to the Offeror to receive the full and immediate refund of the Aggregate Purchase Price. The Purchaser understands and agrees that the VESSEL Offeror reserves the right to reject this subscription for Units in whole or part in any part of her equipment requires alterations order at any time prior to the Closing for any reason or corrections which but for this provision would or might entitle no reason, notwithstanding the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of Purchaser’s prior receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL Purchaser’s subscription. In the event the Closing does not take place for any reason or of no reason (including, without limitation, because the details in respect of Offeror has terminated the Offering, which the VESSEL does not conform Offeror may do at any time in its discretion), this Agreement and any other Transaction Documents shall thereafter be terminated and have no force or effect, and the parties shall take all steps, to ensure that the Aggregate Purchase Price shall promptly be returned or caused to be returned to the SPECIFICATIONS Purchaser without interest thereon or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSELdeduction therefrom. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after Upon completion of the trial run, notify the BUILDER in writing or shall give the BUYER a notice by facsimile confirmed or in writing of its acceptance completion of the trial run and provide the BUYER with all records of tests and trials as soon as available, as and if the BUILDER considers that the results of the trial run prove conformity of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessarySPECIFICATIONS. The BUYER shall, within three (3) working days after completion receipt of such aforementioned records of tests and/or trialsand trials from the BUILDER, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL’s conformity to this CONTRACT and the SPECIFICATIONS. Should the records of tests and trials indicate that the VESSEL does not conform to the requirements of this CONTRACT or the SPECIFICATIONS and if the BUILDER agrees with the BUYER’s notice of non-conformity, then the BUILDER shall promptly take the necessary steps to correct such non-conformity and notify the BUYER promptly in writing or by facsimile advising the BUYER of the estimated additional time required for the necessary alterations to correct material non-conformity. Upon completion of correction of such non-conformity, new trial run or runs as necessary will be made to prove conformity of the VESSEL to this CONTRACT and SPECIFICATIONS if so found necessary by the BUILDER, the CLASSIFICATION SOCIETY and the BUYER’S REPRESENTATIVE. The BUILDER shall notify the BUYER of the time and place of any new trial run no less than three (3) working days beforehand, unless otherwise mutually agreed to. All provisions of the trial run shall apply to such new trial run. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS. The BUYER may accept the VESSEL qualifying its acceptance by reservations regarding works or parts which have not been completed or properly installed prior to such acceptance. In the event that BUYER makes such qualified acceptance the parties will reach an agreement in writing, but, in that case, the BUILDER shall not be released from the obligation prior to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL, as to how and when to remedy the items being the subject of the qualified acceptance, at the BUILDER’s cost and expense, either before or after the delivery, as quickly as possible, without delaying the date of delivery and without causing the BUYER inconvenience in the operation of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and have been made. Any important spare parts for the VESSEL's operation used in connection with such repairs are to be valid in all respectsreplaced with new parts at the BUILDER's cost prior to delivery. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by cable, telex or facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUILDER shall take proper steps to remedy the same and carry out further re-trial runs as may be necessary without extra cost to the BUYER so as to insure full conformity with the requirements of this CONTRACT and the SPECIFICATIONS. The BUYER shall, within five(5three (3) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by cable, telex or facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3three (3) days after completion of the trial run, notify the BUILDER in writing or by cable, telex or facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s 's determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment fulfillment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. Upon completion of correction of such non-conformity, if the CLASSIFICATION SOCIETY request a second trial run to prove that such non-conformity has been corrected, the BUILDER shall give the BUYER three (3) days' notice of the second trial. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by cable, telex or facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) Any dispute between the BUILDER and the BUYER as to the conformity or non-conformity of the VESSEL to the requirements of this Contract and/or the Specifications shall be submitted for final decision by the CLASSIFICATION SOCIETY. (e) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any Upon completion of sea trial, any breakdown occurs entailing interruption the BUILDER shall give the BUYER a notice in writing or irregular performance which can be repaired on boardby e-mail or telefax of the result of the sea trial, as and if the BUILDER considers that the result of sea trial shall be continued after such repairs indicates conformity of the VESSEL to this CONTRACT and be valid in all respectsthe SPECIFICATIONS and PLAN. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, shall within five(5four (4) working days of after receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notice notify the BUILDER in writing or by facsimile confirmed in writing e-mail or telefax of its acceptance, qualified acceptance or rejection of the VESSEL, all provided that in accordance with case of rejecting the SPECIFICATIONSVESSEL, the PLAN BUYER shall set out in its notice of rejection a detailed, clear explanation of all and any aspects of the VESSEL which it considers do not comply with this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such timeSPECIFICAITONS and/or the PLAN. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment fulfillment of this the CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify If the BUILDER is not in writing or by facsimile confirmed in writing of its acceptance or rejection of agreement with the VESSELBUYER’s determination as to non-conformity, each party shall be entitled to refer the disagreement for determination as per Article XIII. (d) However, the The BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items which do not in any way affect the safety or the operation of the Vessel judged from the point of view of standard the BUILDER’s shipbuilding practice for Crude Oil Carrier, as the BUILDER has been performing for its other clients and shipping practice HSQM (Hyundai Shipbuilding Quality Manual) as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy for its own account such minor or insubstantial items as soon as practicable after the delivery of the VESSEL. If inconvenient for the VESSEL to have such items corrected and/or remedied at the SHIPYARD, the BUILDER shall arrange to have such corrections or remedies carried out elsewhere, and may, if practicable, do such work while the VESSEL is sailing. The BUYER may in its absolute discretion accept a payment in lieu of such items being corrected and/or remedied. Any payment in lieu shall be agreed in writing between the BUILDER and the BUYER. (e) If during any sea trial any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the sea trial shall be continued after such repairs and be valid in all respects. However, if during the sea trial it becomes apparent that the VESSEL or any part of her equipment requires alterations or correction, the BUILDER shall notify the BUYER promptly in writing or by e-mail or telefax to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five (5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by e-mail or telefax of its acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, PLAN and the CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time.

Acceptance or Rejection. (ai) If, during any Upon completion of sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on boardthe Builder shall submit to the Buyer a jointly signed copy of all tests and trials carried out with regard to her machinery and equipment, hereinafter referred to as the trial shall be continued after such repairs Sea Trial Report as and be valid in all respects. (b) However, if, during or after if the trial run, it becomes apparent Builder considers that the VESSEL or any part result of her equipment requires alterations or corrections which but for sea trial indicates conformity of the Vessel to this provision would or might entitle Contract and the BUYER to rescind this CONTRACT, the BUILDER Specifications and Plans. The Buyer shall within five (5) working days after receipt of such Sea Trial Report notify the BUYER promptly Builder in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations e-mail or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing telefax of its acceptance, qualified acceptance or rejection of the VESSELSea Trial Report, all provided that in accordance with case of rejecting the SPECIFICATIONSSea Trial Report, the PLAN Buyer shall set out in its notice of rejection a detailed, clear explanation of all and any aspects of the Sea Trial Report which it considers do not comply with this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above providedContract, the BUYER shall, within three(3) days after completion of Specifications and/or the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACTPlans. If the BUILDER Builder is in agreement with the BUYERBuyer’s determinations as to non-conformity, the BUILDER Builder shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT the Contract and the SPECIFICATIONS Specifications by such tests or trials as may be necessarynecessary and as witnessed by the Buyer’s Representative(s). If the Builder is not in agreement with the Buyer’s determination as to non-conformity, each party shall be entitled to refer the disagreement to the Classification Society and/or Arbitration as per Article 13. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER Buyer shall not be entitled to reject the VESSEL Vessel by reason of any minor or insubstantial items judged from the point of view of international standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONSSpecifications and insofar as the same do not affect the conditions of class of the Vessel, other statutory regulations in respect of the Vessel and/or its normal operation, but, in that case, the BUILDER Builder shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSELVessel. If inconvenient for the Vessel to have such items corrected and/or remedied at the Builder’s yard, the Builder shall arrange to have such corrections or remedies carried out elsewhere, and may, if practicable, do such work while the Vessel is sailing. The Buyer may, if proposed by the Builder in its absolute discretion decide to agree to receive a payment in lieu of such items being corrected and/or remedied. Any payment in lieu shall be agreed between the Builder and the Buyer. (ii) If during any sea trial any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the sea trial shall be continued after such repairs and be valid in all respects. However, if during or after the sea trial it becomes apparent that the Vessel or any part of her equipment requires alterations or correction which but for this provision would or might entitle the Buyer to cancel this Contract, the Builder shall have the right to attempt to carry out such alterations or corrections and shall notify the Buyer promptly in writing or by e-mail or telefax to such effect and shall simultaneously advise the Buyer of the estimated additional time required for the necessary alterations or corrections to be made. The Buyer shall, within three (3) working days of receipt from the Builder of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the Builder in writing or by e-mail or telefax of its acceptance, qualified acceptance or rejection of the Vessel, all in accordance with the Specification, Plans and the Contract, and shall not be entitled to reject the Vessel on such grounds until such time. (iii) The notice periods allowed and additional time required for such alterations and corrections shall not be permissible delays extending the delivery date of the Vessel under this Contract.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, if during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5two (2) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessarynecessary (such trials or tests may be attended by the BUYER’S REPRESENTATIVE), notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, CONTRACT and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3three (3) days after completion of the trial runrun and receipt of the official sea trials report, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s ’S determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment fulfillment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. Such tests may be attended by the BUYER’S REPRESENTATIVE. The BUYER shall, within three two (32) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. Subject to full, faithful and punctual performance and discharge by the Company of all of its duties, obligations and responsibilities as set forth in this Agreement and any other agreement entered into between the Subscriber and the Company relating to this subscription (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on boardcollectively, the trial “Transaction Documents”), the Subscriber shall be continued after such repairs legally bound to purchase the Units pursuant to the terms and be valid conditions set forth in all respects. this Agreement. For the avoidance of doubt, upon the occurrence of the failure by the Company to fully, faithfully and punctually perform and discharge any of its duties, obligations and responsibilities as set forth in any of the Transaction Documents, which shall have been performed or otherwise discharged prior to the Closing, the Subscriber may, on or prior to the Closing (b) Howeveras defined below), ifat its sole and absolute discretion, during or after elect not to purchase the trial run, it becomes apparent Units and provide instructions to the Company to receive the full and immediate refund of the Aggregate Purchase Price. The Subscriber understands and agrees that the VESSEL Company reserves the right to reject this subscription for Units in whole or part in any part of her equipment requires alterations order at any time prior to the Closing for any reason or corrections which but for this provision would or might entitle no reason, notwithstanding the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of Subscriber’s prior receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL Subscriber’s subscription. In the event the Closing does not take place because of (i) the rejection of subscription for Units by the Company; or (ii) the election not to purchase the Units by the Subscriber; or (iii) a Tranche expires prior to any closings taking place under such Tranche (provided, that, the Company may in its sole discretion continue the offering and include any subsequent Subscribers in a subsequent Tranche, subject to the maximum amount of $2,000,000 in Units offered) for any reason or no reason (including, without limitation, because the details in respect of Company has terminated the Offering, which the VESSEL does not conform Company may do at any time in its discretion), this Agreement and any other Transaction Documents shall thereafter be terminated and have no force or effect, and the parties shall take all steps, to ensure that the Aggregate Purchase Price shall promptly be returned or caused to be returned to the SPECIFICATIONS Subscriber without interest thereon or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSELdeduction therefrom. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (ai) If, during any Upon completion of sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on boardthe Builder shall submit to the Buyer a jointly signed copy of all tests and trials carried out with regard to her machinery and equipment, hereinafter referred to as the trial shall be continued after such repairs Sea Trial Report as and be valid in all respects. (b) However, if, during or after if the trial run, it becomes apparent Builder considers that the VESSEL or any part result of her equipment requires alterations or corrections which but for sea trial indicates conformity of the Vessel to this provision would or might entitle Contract and the BUYER to rescind this CONTRACT, the BUILDER Specifications and Plans. The Buyer shall within five (5) working days after receipt of such Sea Trial Report notify the BUYER promptly Builder in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations e-mail or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing telefax of its acceptance, qualified acceptance or rejection of the VESSELSea Trial Report, all provided that in accordance with case of rejecting the SPECIFICATIONSSea Trial Report, the PLAN Buyer shall set out in its notice of rejection a detailed, clear explanation of all and any aspects of the Sea Trial Report which it considers do not comply with this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above providedContract, the BUYER shall, within three(3) days after completion of Specifications and/or the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACTPlans. If the BUILDER Builder is in agreement with the BUYERBuyer’s determinations as to non-conformity, the BUILDER Builder shall make such alterations or changes as may be necessary to correct such non-conformity nonconformity and shall prove the fulfilment of this CONTRACT the Contract and the SPECIFICATIONS Specifications by such tests or trials as may be necessarynecessary and as witnessed by the Buyer’s Representative(s). If the Builder is not in agreement with the Buyer’s determination as to non-conformity, each party shall be entitled to refer the disagreement to the Classification Society and/or Arbitration as per Article 13. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER Buyer shall not be entitled to reject the VESSEL Vessel by reason of any minor or insubstantial items judged from the point of view of international standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONSSpecifications and insofar as the same do not affect the conditions of class of the Vessel, other statutory regulations in respect of the Vessel and/or its normal operation, but, in that case, the BUILDER Builder shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSELVessel. If inconvenient for the Vessel to have such items corrected and/or remedied at the Builder’s yard, the Builder shall arrange to have such corrections or remedies carried out elsewhere, and may, if practicable, do such work while the Vessel is sailing. The Buyer may, if proposed by the Builder in its absolute discretion decide to agree to receive a payment in lieu of such items being corrected and/or remedied. Any payment in lieu shall be agreed between the Builder and the Buyer. (ii) If during any sea trial any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the sea trial shall be continued after such repairs and be valid in all respects. However, if during or after the sea trial it becomes apparent that the Vessel or any part of her equipment requires alterations or correction which but for this provision would or might entitle the Buyer to cancel this Contract, the Builder shall have the right to attempt to carry out such alterations or corrections and shall notify the Buyer promptly in writing or by e-mail or telefax to such effect and shall simultaneously advise the Buyer of the estimated additional time required for the necessary alterations or corrections to be made. The Buyer shall, within three (3) working days of receipt from the Builder of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the Builder in writing or by e-mail or telefax of its acceptance, qualified acceptance or rejection of the Vessel, all in accordance with the Specification, Plans and the Contract, and shall not be entitled to reject the Vessel on such grounds until such time. (iii) The notice periods allowed and additional time required for such alterations and corrections shall not be permissible delays extending the delivery date of the Vessel under this Contract.

Acceptance or Rejection. Subject to full, faithful and punctual performance and discharge by the Company of all of its duties, obligations and responsibilities as set forth in this Agreement and any other agreement entered into between the Subscriber and the Company relating to this subscription (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on boardcollectively, the trial "Transaction Documents"), the Subscriber shall be continued after such repairs legally bound to purchase the Units pursuant to the terms and be valid conditions set forth in all respects. this Agreement. For the avoidance of doubt, upon the occurrence of the failure by the Company to fully, faithfully and punctually perform and discharge any of its duties, obligations and responsibilities as set forth in any of the Transaction Documents, which shall have been performed or otherwise discharged prior to the Closing, the Subscriber may, on or prior to the Closing (b) Howeveras defined below), ifat its sole and absolute discretion, during or after elect not to purchase the trial run, it becomes apparent Units and provide instructions to the escrow agent under the Escrow Agreement to receive the full and immediate refund of the Aggregate Purchase Price. The Subscriber understands and agrees that the VESSEL Company reserves the right to reject this subscription for Units in whole or part in any part of her equipment requires alterations or corrections which but order at any time prior to the Closing for this provision would or might entitle any reason, notwithstanding the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of Subscriber’s prior receipt from the BUILDER of notice of completion acceptance of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing Subscriber’s subscription. In the event the Closing does not take place because of its acceptance, qualified acceptance or (i) the rejection of subscription for Units by the VESSELCompany; or (ii) the election not to purchase the Shares by the Subscriber; or (iii) failure to effectuate the Initial Closing on or prior to June 24, 2011 (unless extended in the discretion of the Board of Directors) (the “Initial Closing Date”) for any reason or no reason, this Agreement and any other Transaction Documents shall thereafter be terminated and have no force or effect, and the parties shall take all steps, including the execution of instructions to the escrow agent, to ensure that the Aggregate Purchase Price held in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and Escrow Agreement shall not promptly be entitled returned or caused to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform be returned to the SPECIFICATIONS Subscriber without interest thereon or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSELdeduction therefrom. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. Subject to full, faithful and punctual performance and discharge by the Company of all of its duties, obligations and responsibilities as set forth in this Agreement and any other agreement entered into between the Subscriber and the Company relating to this subscription (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on boardcollectively, the trial "Transaction Documents"), the Subscriber shall be continued after such repairs legally bound to purchase the Units pursuant to the terms and be valid conditions set forth in all respects. this Agreement. For the avoidance of doubt, upon the occurrence of the failure by the Company to fully, faithfully and punctually perform and discharge any of its duties, obligations and responsibilities as set forth in any of the Transaction Documents, which shall have been performed or otherwise discharged prior to the Closing, the Subscriber may, on or prior to the Closing (b) Howeveras defined below), ifat its sole and absolute discretion, during or after elect not to purchase the trial run, it becomes apparent Units and provide instructions to the escrow agent under the Escrow Agreement to receive the full and immediate refund of the Aggregate Purchase Price. The Subscriber understands and agrees that the VESSEL Company reserves the right to reject this subscription for Units in whole or part in any part of her equipment requires alterations or corrections which but order at any time prior to the Closing for this provision would or might entitle any reason, notwithstanding the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of Subscriber’s prior receipt from the BUILDER of notice of completion acceptance of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing Subscriber’s subscription. In the event the Closing does not take place because of its acceptance, qualified acceptance or (i) the rejection of subscription for Units by the VESSELCompany; or (ii) the election not to purchase the Shares by the Subscriber; or (iii) failure to effectuate the Initial Closing on or prior to August 31, 2011 (unless extended in the discretion of the Board of Directors) (the “Initial Closing Date”) for any reason or no reason, this Agreement and any other Transaction Documents shall thereafter be terminated and have no force or effect, and the parties shall take all steps, including the execution of instructions to the escrow agent, to ensure that the Aggregate Purchase Price held in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and Escrow Agreement shall not promptly be entitled returned or caused to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform be returned to the SPECIFICATIONS Subscriber without interest thereon or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSELdeduction therefrom. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5three (3) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3two (2) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three two (32) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL▇▇▇▇▇▇.

Acceptance or Rejection. (a) IfRespecting any Deliverable for Milestone #1 or Milestone #2, during any sea trialas set forth below, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent if Stryker determines that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all a Deliverable operates in accordance with and otherwise conforms to the SPECIFICATIONSapplicable Acceptance Criteria pursuant to the R&D Work Plan, then Stryker will notify Conformis in writing that Stryker Accepts such Deliverable. If Stryker reasonably determines that a Deliverable does not operate in accordance with or otherwise conform to the PLAN applicable Acceptance Criteria, then Stryker will provide Conformis with a written notice of rejection within the Acceptance Notification Period describing the defect in view of the relevant Acceptance Criteria and this CONTRACTincluding sufficient detail with respect to such Stryker testing and testing results as Conformis reasonably requests (“Failure Notice”). Conformis shall have [**] (or such longer period of time as may be agreed between the parties in good faith should the scope and complexity of the applicable Deliverable warrant some longer period of time) (“Redelivery Period”) following the date it receives the Failure Notice to correct and redeliver the Deliverable. If Conformis timely delivers a corrected version of the Deliverable within the Redelivery Period, and shall not then Stryker will be entitled to reject repeat its acceptance analysis and testing process for the VESSEL on such grounds purposes of determining Acceptance as set forth in the R&D Work Plan until such time. (c) Save as above Deliverable operates in accordance with or otherwise conforms to the applicable Acceptance Criteria; provided, the BUYER shallhowever, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within that if Stryker properly rejects a particular Deliverable three (3) days after completion or more times in accordance with this Article III, or if Conformis fails to deliver a version or corrected version, as the case may be, of the Deliverable within any respective [**] period, Stryker may, terminate this Agreement in accordance with Section 8.2(c) (in the event of such tests and/or trialsthree (3) rejections, notify Stryker “Finally Rejects” the BUILDER Deliverable). Such termination, together with the provisions of Section 5.2 of the License Agreement, constitutes as Stryker’s sole remedy and Conformis’ exclusive liability in writing the event of any such rejection or failure by facsimile confirmed Conformis to deliver materially conforming Deliverables hereunder so long as such rejection or failure does not arise from Conformis’ fraud, willful misconduct, gross negligence or bad faith. Stryker shall be deemed to have accepted a Deliverable timely furnished to it unless (a) the Deliverable fails to operate in writing of its accordance with and otherwise conform the applicable Acceptance Criteria, and (b) Stryker provides Conformis a written Failure Notice within the Acceptance Notification Period in accordance with this Section 3.4 (any acceptance or rejection deemed acceptance, described in this Section 3.4, “Acceptance” or “Accept”). Acceptance of the VESSEL. (d) However, the BUYER a Deliverable shall not be entitled to reject the VESSEL by reason constitute a waiver of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being rights Stryker may have based on Conformis’ warranties set forth in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSELthis Agreement.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after Upon completion of the trial run, notify the BUILDER in writing or shall give the BUYER a notice by facsimile confirmed or in writing of its acceptance completion of the trial run and provide the BUYER with all records of tests and trials as soon as available, as and if the BUILDER considers that the results of the trial run prove conformity of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessarySPECIFICATIONS. The BUYER shall, within three (3) working days after completion receipt of such aforementioned records of tests and/or trialsand trials from the BUILDER, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL’s conformity to this CONTRACT and the SPECIFICATIONS. Should the records of tests and trials indicate that the VESSEL does not conform to the requirements of this CONTRACT or the SPECIFICATIONS and if the BUILDER agrees with the BUYER’s notice of non-conformity, then the BUILDER shall promptly take the necessary steps to correct such non-conformity and notify the BUYER promptly in writing or by facsimile advising the BUYER of the estimated additional time required for the necessary alterations to correct material non-conformity. Upon completion of correction of such non-conformity, new trial run or runs as necessary will be made to prove conformity of the VESSEL to this CONTRACT and SPECIFICATIONS if so found necessary by the BUILDER, the CLASSIFICATION SOCIETY and the BUYER’s REPRESENTATIVE. The BUILDER shall notify the BUYER of the time and place of any new trial run no less than three (3) working days beforehand, unless otherwise mutually agreed to. All provisions of the trial run shall apply to such new trial run. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS. The BUYER may accept the VESSEL qualifying its acceptance by reservations regarding works or parts which have not been completed or properly installed prior to such acceptance. In the event that BUYER makes such qualified acceptance the parties will reach an agreement in writing, but, in that case, the BUILDER shall not be released from the obligation prior to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL, as to how and when to remedy the items being the subject of the qualified acceptance, at the BUILDER’s cost and expense, either before or after the delivery, as quickly as possible, without delaying the date of delivery and without causing the BUYER inconvenience in the operation of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, if during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle does not conform to the BUYER to rescind requirements of this CONTRACT, the SPECIFICATIONS and the PLAN, the BUILDER shall notify the BUYER promptly in writing by e-mail or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. to correct such non-conformity. The BUYER shall, within five(5two (2) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3two (2) days after completion of the trial run, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT CONTRACT, the SPECIFICATIONS and the SPECIFICATIONS PLAN by such tests or trials as may be necessary. The BUYER shall, within three two (32) days after completion of such tests and/or trials, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONSCONTRACT, butthe SPECIFICATIONS and the PLAN, and which do not effect the issuance of the required certificates from the CLASSIFICATION SOCIETY and regulatory bodies, but that in that such case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) IfA holder of Notes may accept a Required Offer by causing an irrevocable written notice of such acceptance to be delivered to the Company, at the address provided by the Company pursuant to paragraph 11J, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after period commencing with the date of such repairs Required Offer and be valid in all respects. ending two (b2) However, if, during or after Business Days prior to the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER date of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection closing of the VESSEL, all transaction in accordance with the SPECIFICATIONS, the PLAN case of a Required Offer Event arising from a Small Asset Sale and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. ending ten (c) Save as above provided, the BUYER shall, within three(310) days after completion the receipt of such Required Offer by such holder in all other cases. Two (2) Business Days prior to the Delivery Date the Company shall deliver to the holder of each Note a certificate of an Authorized Officer of the trial runCompany specifying: (i) the Delivery Date; (ii) the amount of principal that is to be prepaid, notify or the BUILDER in writing or by facsimile confirmed in writing of its acceptance Secured Amount of the VESSEL or Letter of Credit that is to be delivered, to such holder on the Delivery Date; (iii) the interest due on such principal amount (if any) that is to be prepaid, accrued to the Delivery Date; (iv) the Credit Fees due on such principal amount (if any) that is to be prepaid, accrued to the Delivery Date; (v) any applicable Yield-Maintenance Amount due on such principal amount (if any) that is to be prepaid, calculated as of the details Delivery Date (to the extent Yield-Maintenance Amount is required by paragraph 4E(4)(iii)); (vi) that the conditions of paragraphs 4E(1) and 4E(2) have been fulfilled; and (vii) in reasonable detail, the respective types of transactions, closing dates, Gross Proceeds Amounts and Net Proceeds Amounts in respect of which the VESSEL does not conform Required Offer Event giving rise to the SPECIFICATIONS Required Offer and, if applicable, the Required Reoffer. On the Business Day next preceding the Delivery Date, the Company shall transmit by facsimile and by overnight courier to the holder of each Note to be prepaid the calculation of the Yield-Maintenance Amount, if any, to be due on such Delivery Date. In the event that the holder of a Note shall reject a Required Offer or this CONTRACTa Required Reoffer, such Note shall continue to bear interest at the rate and to be subject to the Credit Fees and Yield - Maintenance Amount to which outstanding principal in respect of the Notes for all purposes is otherwise subject. If A failure by any holder of Notes to respond to any Required Offer shall be deemed to constitute an acceptance of such Required Offer by such holder. A failure by any holder of Notes to respond to any Required Reoffer shall be deemed to constitute a rejection of such Required Reoffer by such holder. In case of the BUILDER is Required Offers and Required Reoffers deemed to have been made in agreement connection with the BUYER’s determinations as to non-conformity, sale of the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment stock of this CONTRACT WGRS and the SPECIFICATIONS by ▇▇▇▇▇▇▇▇ Facility (i) the Variable Annuity Life Insurance Company, American General Life Insurance Company and American General Life and Accident Insurance Company shall be deemed to have accepted such tests or trials as may Required Offers and to have rejected such Required Reoffers and (ii) First Allmerica Financial Life Insurance Company and Allmerica Financial Life Insurance and Annuity Company shall be necessary. The BUYER shall, within three (3) days after completion of deemed to have rejected such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSELRequired Offers and such Required Reoffers. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial Supernus shall be continued after such repairs and be valid responsible for final release to the market. Within thirty-five (35) days following delivery of Product samples to Supernus or its designee for final release testing, Supernus shall have the right to give Supplier notice of rejection (a “Rejection Notice”) of any shipment that, in whole or part, fails to meet Specifications or to comply with cGMP or Applicable Laws, or which otherwise breaches Supplier’s warranties set forth in Section 16.5 of this Agreement (“Defective Product”). Supernus shall at all respects. (b) times supply Supplier with any evidence it has that relates to whether any Product delivered to Supernus by Supplier is nonconforming as contemplated hereunder. Failure by Supernus to give timely notice of rejection shall mean acceptance by it of the shipment to which the notice of rejection would have otherwise applied. However, if, during or after the trial run, it becomes apparent that the VESSEL Supernus’ acceptance of a shipment shall not preclude a subsequent rejection of such shipment or any part portion thereof following discovery of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind this CONTRACT, the BUILDER shall any Latent Defect in such shipment. Supernus must notify the BUYER promptly Supplier in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5thirty-five (35) days of the date upon which Supernus discovered or should have reasonably known of or discovered such Latent Defect but in no event later than the later of **. The term “Rejection Notice” as defined above shall include such notice concerning discovery of a Latent Defect. Upon timely receipt of a Rejection Notice from Supernus Supplier shall conduct an appropriate investigation in its discretion to determine whether or not it agrees with Supernus that Product is Defective Product and to determine the BUILDER cause of notice any nonconformity. If Supplier agrees that Product is Defective Product and determines that the cause of completion nonconformity is attributable to ** (“Supplier Defective Manufacturing”), then Section 6.5 shall apply. For avoidance of such alterations doubt, where the cause of a non-conformity cannot be determined or corrections and after such further trials or tests as necessaryassigned, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and it shall not be entitled to reject the VESSEL on such grounds until such timedeemed Supplier Defective Manufacturing. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessary. The BUYER shall, within three (3) days after completion of such tests and/or trials, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, if during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle does not conform to the BUYER to rescind requirements of this CONTRACT, the SPECIFICATIONS and the PLAN, the BUILDER shall notify the BUYER promptly in writing by e-mail or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. to correct such non-conformity. The BUYER shall, within five(5two (2) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3two (2) days after completion of the trial run, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s 's determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT CONTRACT, the SPECIFICATIONS and the SPECIFICATIONS PLAN by such tests or trials as may be necessary. The BUYER shall, within three two (32) days after completion of such tests and/or trials, notify the BUILDER in writing by email or by facsimile confirmed in writing of its acceptance or rejection of the VESSELV▇▇▇▇▇. (d▇) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONSCONTRACT, butthe SPECIFICATIONS and the PLAN, and which do not effect the issuance of the required certificates from the CLASSIFICATION SOCIETY and regulatory bodies, but that in that such case, the BUILDER shall not be released from the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL.

Acceptance or Rejection. (a) If, during any sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind cancel this CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by facsimile to such effect and shall simultaneously advise the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after Upon completion of the trial run, notify the BUILDER in writing or shall give the BUYER a notice by facsimile confirmed or in writing of its acceptance completion of the trial run and provide the BUYER with all records of tests and trials as soon as available, as and if the BUILDER considers that the results of the trial run prove conformity of the VESSEL or of the details in respect of which the VESSEL does not conform to the SPECIFICATIONS or this CONTRACT. If the BUILDER is in agreement with the BUYER’s determinations as to non-conformity, the BUILDER shall make such alterations or changes as may be necessary to correct such non-conformity and shall prove the fulfilment of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be necessarySPECIFICATIONS. The BUYER shall, within three (3) working days after completion receipt of such aforementioned records of tests and/or trialsand trials from the BUILDER, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance or rejection of the VESSEL’S conformity to this CONTRACT and the SPECIFICATIONS. Should the records of tests and trials indicate that the VESSEL does not conform to the requirements of this CONTRACT or the SPECIFICATIONS and if the BUILDER agrees with the BUYER’s notice of non-conformity, then the BUILDER shall promptly take the necessary steps to correct such non-conformity and notify the BUYER promptly in writing or by facsimile advising the BUYER of the estimated additional time required for the necessary alterations to correct material non-conformity. Upon completion of correction of such non-conformity, new trial run or runs as necessary will be made to prove conformity of the VESSEL to this CONTRACT and SPECIFICATIONS if so found necessary by the BUILDER, the CLASSIFICATION SOCIETY and the BUYER’S REPRESENTATIVE. The BUILDER shall notify the BUYER of the time and place of any new trial run no less than three (3) working days beforehand, unless otherwise mutually agreed to. All provisions of the trial run shall apply to such new trial run. (d) However, the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS. The BUYER may accept the VESSEL qualifying its acceptance by reservations regarding works or parts which have not been completed or properly installed prior to such acceptance. In the event that BUYER makes such qualified acceptance the parties will reach an agreement in writing, but, in that case, the BUILDER shall not be released from the obligation prior to correct and/or remedy such minor or insubstantial items as soon as practicable after the delivery of the VESSEL, as to how and when to remedy the items being the subject of the qualified acceptance, at the BUILDER’s cost and expense, either before or after the delivery, as quickly as possible, without delaying the date of delivery and without causing the BUYER inconvenience in the operation of the VESSEL.

Acceptance or Rejection. (a) If, during any Upon completion of sea trial, any breakdown occurs entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after such repairs and be valid in all respects. (b) However, if, during or after the trial run, it becomes apparent that the VESSEL or any part of her equipment requires alterations or corrections which but for this provision would or might entitle the BUYER to rescind this CONTRACTtrials, the BUILDER shall notify analyze the results of the sea trials, and if found to be in accordance with this CONTRACT and the SPECIFICATIONS, give the BUYER promptly notice in writing or by facsimile to telefax (a) of successful completion of the sea trials run accompanied by copies of the results and records of all tests carried out and (b) of conformity of the VESSEL with the requirements of this CONTRACT and the SPECIFICATIONS. Within three (3) days after receipt of such effect and shall simultaneously advise notice, the BUYER of the estimated additional time required for the necessary alterations or corrections to be made. The BUYER shall, within five(5) days of receipt from the BUILDER of notice of completion of such alterations or corrections and after such further trials or tests as necessary, shall notify the BUILDER in writing or by facsimile confirmed in writing telefax, of its acceptance, qualified acceptance or rejection of the VESSEL, all in accordance VESSEL on the basis of its conformity with the requirements of this CONTRACT and the SPECIFICATIONS. Should it develop, on or before the PLAN and this CONTRACTsea trials, and shall not be entitled to reject the VESSEL on such grounds until such time. (c) Save as above provided, the BUYER shall, within three(3) days after completion of the trial run, notify the BUILDER in writing or by facsimile confirmed in writing of its acceptance of that the VESSEL or of the details in respect of which the VESSEL any part or equipment thereof does not conform to the SPECIFICATIONS or requirements of this CONTRACT. If CONTRACT and/or the SPECIFICATIONS, the BUILDER is in agreement with the BUYER’s determinations as shall promptly take necessary steps to correct such non-conformity. Upon completing of correction of such non-conformity, the BUILDER shall make promptly perform such alterations further trials, or changes other test of the VESSEL, or the part or equipment thereof concerned, as may be deemed necessary to correct such non-conformity and shall prove the fulfilment VESSEL’s compliance with the requirements of this CONTRACT and the SPECIFICATIONS SPECIFICATIONS, and if found to be satisfactory, give to the BUYER notice by telefax of such tests or trials correction, and, as may be necessary. The appropriate, successful completion accompanied by copies of such results and tests, and the BUYER shall, within three (3) days after completion receipt of such tests and/or trialsnotice, notify advise the BUILDER in writing or by facsimile confirmed in writing telefax, of its acceptance or rejection of the VESSEL. (d) However. Any notice of rejection of the VESSEL shall state the reasons why the VESSEL fails to conform with the requirements of this CONTRACT and the SPECIFICATIONS. If the BUILDER agrees to the BUYER’S reasons why the VESSEL fails to conform with the requirements of this CONTRACT and the SPECIFICATIONS, the BUYER shall not be entitled to reject process of performing necessary corrections by the BUILDER and advising of the acceptance or rejection of the VESSEL by reason the BUYER as aforesaid may be repeated, subject to the provision of the Article III.1(c) hereof. If the BUILDER does not agree to the rejection by the BUYER of the VESSEL or any minor part or insubstantial items judged from the point of view of standard shipbuilding and shipping practice as not being in conformity with the SPECIFICATIONS, but, in that caseequipment thereof, the BUILDER shall so advise the BUYER promptly, in which case either the BUYER or the BUILDER may submit any dispute as to the conformity thereof with the requirements of this CONTRACT and the SPECIFICATIONS to arbitration under Article XIV hereof. The BUYER shall not unreasonably reject the VESSEL because of minor noaconformities or defects not affecting the class or seaworthiness of the VESSEL, and which do not adversely affect the trading of the VESSEL, provided that such non-conformities or defects will be released from corrected by the obligation to correct and/or remedy such minor or insubstantial items as soon as practicable after the BUILDER following delivery of the VESSEL.