Common use of DEFAULT BEFORE DELIVERY OF THE VESSEL Clause in Contracts

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or (c) of this Article, the Delivery Date shall, at the SELLER’s option, he postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 of this Article committed by the BUYER continues for a period of fifteen (15) days after receiving the notice provided in Paragraph 2 of this Article, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, cancel or rescind this Contract, by giving notice of such effect to the BUYER by letter or telefax or telex. Upon receipt by the BUYER of such notice of cancellation or rescission, all or the BUYER’s supplies and all its equipment and machinery shall be kept as a security for the SELLER’s claim; and (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment or installments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claim; and (iii) In addition to the above and in the event of such rescission or cancellation, the SELLER shall be entitled (but not hound) to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to the sale of the VESSEL and application of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunder.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) or 1 (d) of this Article, the Delivery Date shall, at the SELLER’s option, he be postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) or 1 (d) of this Article committed by the BUYER continues for a period of fifteen Twenty (1520) days after receiving the date of the SELLER’s notice of default as provided for in Paragraph 2 of this Articleabove, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, rescind and/or cancel or rescind this Contract, provided that the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by letter or sent by telefax or telexemail. Upon receipt by the BUYER of such telefax or email notice of cancellation or rescissionrescission and/or cancellation, all or of the BUYER’s supplies Supplies shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; and (ii) In the event of such rescission and/or cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claimon account of this Contract; andand Shipbuilding Contract Hull No. 0120833 (iii) In addition (Applicable to any BUYER’s default defined in 1(a) of this Article) the SELLER shall, without prejudice to the above SELLER’S right to recover from the BUYER the 5th instalment, interest, costs and/or expenses by applying the proceeds to be obtained by sale of the VESSEL in accordance with the provisions set out in this Contract, have the right to declare all unpaid 2nd, 3rd and in the event of 4th instalments to be forthwith due and payable, and upon such rescission or cancellationdeclaration, the SELLER shall be entitled (but not hound) have the right to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to immediately demand the sale payment of the VESSEL aggregate amount of all unpaid 2nd, 3rd and application 4th instalments from the Corporate Guarantor in accordance with the terms and conditions of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of guarantee issued by the securities provided to the SELLER by way of security for the BUYER’s obligations hereunderCorporate Guarantor.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article, the Delivery Date shall, at the SELLER’s option, he be postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 of this Article committed by the BUYER continues for a period of fifteen (15) days after receiving the notice provided in Paragraph 2 of this Article, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, cancel or rescind this Contract, by giving notice of such effect to the BUYER by letter or telefax or telex. Upon receipt by the BUYER of such notice of cancellation or rescission, all or of the BUYER’s supplies and all its equipment and machinery shall be kept as a security for the SELLER’s claim; and (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claim; and (iii) In addition to the above and in the event of such rescission or cancellation, the SELLER shall be entitled (but not houndbound) to exercise and enforce any or all of its rights, powers and remedies under this contract Contract (including but not limited to the sale of the VESSEL and application of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunder.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article, and provided the SELLER has given notice to the BUYER as required by Paragraph 2 above by letter sent by telefax or email the Delivery Date shall, at the SELLER’s option, he be postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article committed by the BUYER continues for a period of fifteen Thirty (1530) days after receiving the notice provided in Paragraph 2 of this Articledays, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, rescind or cancel or rescind this Contract, provided that the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by letter or sent by telefax or telexemail. Upon receipt by the BUYER of such telefax or email notice of cancellation rescission or rescissioncancellation, all or of the BUYER’s supplies supplied items shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; and (ii) In the event of such rescission or cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claimon account of this Contract; and (iii) In addition the case of the BUYER’s default defined in 1(a) of this Article only, the SELLER shall, without prejudice to the above SELLER’s right to recover from the BUYER the 4th instalment, interest, costs and/or expenses by applying the Date: 37/58 Shipbuilding Contract Hull No. proceeds to be obtained by sale of the VESSEL in accordance with the provisions set out in this Contract, have the right to declare all unpaid 2nd and in the event of 3rd instalments to be forthwith due and payable, and upon such rescission or cancellationdeclaration, the SELLER shall be entitled (but not hound) have the right to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to immediately demand the sale payment of the VESSEL aggregate amount of all unpaid 2nd and application 3rd instalments from the Payment Guarantor in accordance with the terms and conditions of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of guarantee issued by the securities provided to the SELLER by way of security for the BUYER’s obligations hereunderPayment Guarantor.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) or 1 (d) of this Article, the Delivery Date shall, at the SELLER’s 's option, he be postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) or 1 (d) of this Article committed by the BUYER continues for a period of fifteen (15) days after receiving the notice provided in Paragraph 2 of this Articlecalendar days, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, cancel or rescind this Contract, provided the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by letter or telefax or telexe-mail. Upon receipt by the BUYER of such e-mail notice of cancellation or rescission, all or of the BUYER’s supplies 's Supplies shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; and (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claimon account of this Contract; and and Shipbuilding Contract Hull No.H1596 (iii) In addition (Applicable to any BUYER's default defined in 1(a) of this Article) The SELLER shall, without prejudice to the above SELLER's right to recover from the BUYER the 5th instalment, interest, costs and/or expenses by applying the proceeds to be obtained by sale of the VESSEL in accordance with the provisions set out in this Contract, have the right to declare all unpaid 1st, 2nd, 3rd and in the event of 4th instalments to be forthwith due and payable, and upon such rescission or cancellationdeclaration, the SELLER shall be entitled (but not hound) have the right to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to immediately demand the sale payment of the VESSEL aggregate amount of all unpaid but due 1st, 2nd, 3rd and application 4th instalments, as the case may be, from the Payment Guarantor in accordance with the terms and conditions of this Contract and of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of Payment Guarantee issued by the securities provided to the SELLER by way of security for the BUYER’s obligations hereunderPayment Guarantor.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or (c) of this Article, the Delivery Date shall, at the SELLER’s option, he shall be automatically postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 of this Article committed by the BUYER continues for a period of fifteen Fifteen (15) days after receiving the notice provided in Paragraph 2 of this Articledays, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, cancel or rescind this ContractCONTRACT, by giving notice of such effect to the BUYER by letter or telefax or telexemail. Upon receipt by the BUYER of such email notice of cancellation or rescission, all or of the BUYER’s supplies BUYER Supplied Items shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; andand Shipbuilding Contract Hull No. H2855 (ii) In the event of such cancellation or rescission of this ContractCONTRACT, the SELLER shall also be entitled to retain any installment or installments instalment(s) of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claim; andon account of this CONTRACT. (iii) In addition (Applicable to any BUYER’s default defined in Paragraph 1(a) to 1(g) of this Article) The SELLER shall, without prejudice to the above SELLER’s right to recover from the BUYER the 6th instalment, interest, costs and/or expenses by applying the proceeds to be obtained by the disposal of the VESSEL in accordance with the provisions set out in this Contract, have the right to declare any and in all unpaid instalments / the event balance of the Contract Price to be forthwith due and payable and upon such rescission or cancellationdeclaration, the SELLER shall be entitled (but not hound) have the right to exercise and enforce any or all immediately demand the payment of its rights, powers and remedies under this contract (including but not limited to such amount of unpaid instalments / the sale balance of the VESSEL and application of Contract Price from the proceeds thereof pursuant to Paragraph 5 herebelow) BUYER and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunderPayment Guarantor.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article, the Delivery Date shall, at provided the SELLER’s optionSELLER services notices in accordance with Article VIII Paragraph 3, he be automatically postponed for a period of continuance of such default by the BUYER and/or at the BUILDER’s option, the BUILDER is further entitled to suspend the performance of the Contract (including work and construction hereof) until the rectification of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article committed by the BUYER continues for a period of fifteen (15) days after receiving the notice provided in Paragraph 2 of this Articledays, then, the SELLER shall have all the following rights and remedies, subject to the SELLER having exhausted all of its rights and not having received the amounts due within the aforesaid fifteen (15) days whatever from the BUYER: (i) The SELLER may, at its option, cancel or rescind this Contract, provided the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by letter or telefax or telexemail confirmed in writing. Upon receipt by the BUYER of such telefax or email notice of cancellation or rescission, all or of the BUYER’s supplies Supplied Items shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; andand Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.YZJ2013-1144) (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claim; and (iii) In addition to the above and in the event on account of such rescission or cancellation, the SELLER shall be entitled (but not hound) to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to the sale of the VESSEL and application of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunder.Contract;

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article, the Delivery Date shall, at provided the SELLER’s optionSELLER services notices in accordance with Article VIII Paragraph 3, he be automatically postponed for a period of continuance of such default by the BUYER and/or at the BUILDER’s option, the BUILDER is further entitled to suspend the performance of the Contract (including work and construction hereof) until the rectification of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article committed by the BUYER continues for a period of fifteen (15) days after receiving the notice provided in Paragraph 2 of this Articledays, then, the SELLER shall have all the following rights and remedies, subject to the SELLER having exhausted all of its rights and not having received the amounts due within the aforesaid fifteen (15) days whatever from the BUYER: (i) The SELLER may, at its option, cancel or rescind this Contract, provided the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by letter or telefax or telexemail confirmed in writing. Upon receipt by the BUYER of such telefax or email notice of cancellation or rescission, all or of the BUYER’s supplies Supplied Items shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; andand Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.YZJ2013-1142) (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claim; and (iii) In addition to the above and in the event on account of such rescission or cancellation, the SELLER shall be entitled (but not hound) to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to the sale of the VESSEL and application of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunder.Contract;

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article, the Delivery Date shall, at provided the SELLER’s optionSELLER services notices in accordance with Article VIII Paragraph 3, he be automatically postponed for a period of continuance of such default by the BUYER and/or at the BUILDER’s option, the BUILDER is further entitled to suspend the performance of the Contract (including work and construction hereof) until the rectification of such default by the BUYER. (b) If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article committed by the BUYER continues for a period of fifteen (15) days after receiving the notice provided in Paragraph 2 of this Articledays, then, the SELLER shall have all the following rights and remedies, subject to the SELLER having exhausted all of its rights and not having received the amounts due within the aforesaid fifteen (15) days whatever from the BUYER: (i) The SELLER may, at its option, cancel or rescind this Contract, provided the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by letter or telefax or telexemail confirmed in writing. Upon receipt by the BUYER of such telefax or email notice of cancellation or rescission, all or of the BUYER’s supplies Supplied Items shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; andand Shipbuilding Contract For Construction of One 82,000 DWT Bulk Carrier (Hull No.YZJ2013-1145) (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claim; and (iii) In addition to the above and in the event on account of such rescission or cancellation, the SELLER shall be entitled (but not hound) to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to the sale of the VESSEL and application of the proceeds thereof pursuant to Paragraph 5 herebelow) and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunder.Contract;

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a) or 1 (b) or (c) of this Article, the Delivery Date shall, at the SELLER’s option, he shall be automatically postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 of this Article committed by the BUYER continues for a period of fifteen Fifteen (15) days after receiving the notice provided in Paragraph 2 of this Articledays, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, cancel or rescind this ContractCONTRACT, by giving notice of such effect to the BUYER by letter or telefax or telexemail. Upon receipt by the BUYER of such email notice of cancellation or rescission, all or of the BUYER’s supplies BUYER Supplied Items shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; andand 50 / 82 Shipbuilding Contract Hull No. H2854 (ii) In the event of such cancellation or rescission of this ContractCONTRACT, the SELLER shall also be entitled to retain any installment or installments instalment(s) of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claim; andon account of this CONTRACT. (iii) In addition (Applicable to any BUYER’s default defined in Paragraph l(a) to l(g) of this Article) The SELLER shall, without prejudice to the above SELLER’s right to recover from the BUYER the 6th instalment, interest, costs and/or expenses by applying the proceeds to be obtained by the disposal of the VESSEL in accordance with the provisions set out in this Contract, have the right to declare any and in all unpaid instalments / the event balance of the Contract Price to be forthwith due and payable and upon such rescission or cancellationdeclaration, the SELLER shall be entitled (but not hound) have the right to exercise and enforce any or all immediately demand the payment of its rights, powers and remedies under this contract (including but not limited to such amount of unpaid instalments / the sale balance of the VESSEL and application of Contract Price from the proceeds thereof pursuant to Paragraph 5 herebelow) BUYER and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunderPayment Guarantor.

DEFAULT BEFORE DELIVERY OF THE VESSEL. (a) If any default by the BUYER occurs as defined in Paragraph 1 (a1(a) or 1 (b1(b) or (c1(c) of this Article, the Delivery Date shall, at the SELLER’s option, he be postponed for a period of continuance of such default by the BUYER. (b) If any such default as defined in Paragraph 1 1(a) or 1(b) or 1(c) of this Article committed by the BUYER continues for a period of fifteen Thirty (1530) days after receiving the notice provided in Paragraph 2 of this Articledays, then, the SELLER shall have all following rights and remedies: (i) The SELLER may, at its option, cancel or rescind this Contract, provided the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER by letter or telefax or telexand/or email. Upon receipt by the BUYER of such telefax notice of cancellation or rescission, rescission all or of the BUYER’s supplies Supplies shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be kept as a security at the sole disposal of the SELLER for the SELLER’s claimsale or otherwise; and (ii) In the event of such cancellation or rescission of this Contract, the SELLER shall also be entitled to retain any installment instalment or installments instalments of the Contract Price paid by the BUYER to the SELLER as a security for SELLER’s claimon account of this Contract.; andand Date: 43/63 Shipbuilding Contract Hull No. (iii) In addition (Applicable to any BUYER’s default defined in 1(a) of this Article) The SELLER shall, without prejudice to the above and in SELLER’s right to recover from the event of such rescission or cancellationBUYER the 4th instalment, interest, reasonable costs and/or expenses by applying the SELLER shall proceeds to be entitled (but not hound) to exercise and enforce any or all of its rights, powers and remedies under this contract (including but not limited to the obtained by sale of the VESSEL in accordance with the provisions set out in this Contract, have the right to declare all unpaid 1st, 2nd and application of the proceeds thereof pursuant 3rd instalments to Paragraph 5 herebelow) and/or under any or all of the securities provided to the SELLER by way of security for the BUYER’s obligations hereunderbe forthwith due and payable.