Common use of EXCESSIVE FUEL CONSUMPTION Clause in Contracts

EXCESSIVE FUEL CONSUMPTION. (a) The Contract Price of the VESSEL shall not be affected nor changed if the actual fuel consumption of the Main Engine, as determined by shop trial in manufacturer’s works, as per the Specifications, is greater than the guaranteed fuel consumption as specified and required under the provisions of this Contract and the Specifications if such actual excess is equal to or less than Five percent (5%). (b) However, if the actual fuel consumption as determined by shop trial is greater than Five percent (5%) above the guaranteed fuel consumption then, the Contract Price shall be reduced by the sum of United States Dollars for each full one percent (1%) increase in fuel consumption in excess of the above said Five percent (5%) (fractions of one percent to be prorated). (c) If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds , the BUYER may, subject to the SELLER’s right to effect replacement of a substitute engine or alterations of corrections as specified in the following sub-paragraph of Article III 3 (c) hereof, at its option, rescind or cancel this Contract by giving notice, in accordance with the provisions of Article X of this Contract and the terms of Article X Paragraph 2 and Paragraph 3 shall apply, or may accept the VESSEL at a reduction in the Contract Price by United States Dollars being the maximum. If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds , the SELLER shall notify the same to the BUYER and may investigate the cause of the non-conformity and the proper steps may promptly be taken to remedy the same and to make whatever corrections and alterations and / or re-shop trial test or tests as may be necessary to correct such non-conformity without extra cost to the BUYER. Upon completion of such alterations or corrections of such nonconformity, the SELLER shall promptly perform such further shop trial or trials or any other tests, as may be deemed necessary to prove the fuel consumption of the Main Engine’s conformity with the requirement of this Contract and the Specifications and if found to be satisfactory, give the BUYER notice by telefax confirmed in writing of such correction and as appropriate, successful completion accompanied by copies of such results, and the BUYER shall, within Six (6) business days after receipt of such notice, notify the SELLER by telefax and / or telex confirmed in writing of its acceptance or reject Date: 12/58 Shipbuilding Contract Hull No. the re-shop trial together with the reasons therefor. If the BUYER fails to notify the SELLER by telefax and / or telex confirmed in writing of its acceptance or rejection of the re-shop trial together with the reasons therefor within Six (6) business days period as provided herein, the BUYER shall be deemed to have accepted the shop trial.

EXCESSIVE FUEL CONSUMPTION. (a) The Contract Price of the VESSEL shall not be affected nor changed if the actual fuel consumption of the Main Engine, as determined by shop trial in manufacturer’s 's works, as per the Specifications, is greater than the guaranteed fuel consumption as specified and required under the provisions of this Contract and the Specifications if such actual excess is equal to or less than Five six percent (56%). (b) However, if the actual fuel consumption as determined by shop trial is greater than Five six percent (56%) above the guaranteed fuel consumption then, the Contract Price shall be reduced by the sum of United States Dollars Sixty Thousand Only (US$60,000) for each full one percent (1%) increase in fuel consumption in excess of the above said Five six percent (56%) (fractions of one percent to be prorated). Shipbuilding Contract Hull No.H1597 (c) If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds 170.28gram/KW/hour, the BUYER may, subject to the SELLERBUILDER’s right to effect replacement of a substitute engine or alterations of corrections as specified in the following sub-paragraph of Article III 3 (c) hereof, at its option, rescind or cancel this Contract by giving noticeContract, in accordance with the provisions of Article X of this Contract and the terms of Article X Paragraph 2 and Paragraph 3 shall apply, or may accept the VESSEL at a reduction in the Contract Price by United States Dollars Two Hundred and Forty Thousand (US$240,000) being the maximum. If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds 170.28gram/KW/hour, the SELLER shall notify the same to the BUYER and BUILDER may investigate the cause of the non-conformity and the proper steps may promptly be taken to remedy the same and to make whatever corrections and alterations and / or and/or re-shop trial test or tests as may be necessary to correct such non-conformity without extra cost to the BUYER. Upon completion of such alterations or corrections of such nonconformity, the SELLER BUILDER shall promptly perform such further shop trial or trials or any other tests, as may be deemed necessary to prove the fuel consumption of the Main Engine’s conformity with the requirement of this Contract and the Specifications and if found to be satisfactory, give the BUYER notice by telefax confirmed in writing e-mail of such correction and as appropriate, successful completion accompanied by copies of such results, and the BUYER shall, within Six six (6) business days Banking Days after receipt of such notice, notify the SELLER BUILDER by telefax and / or telex confirmed in writing e-mail of its acceptance or reject Date: 12/58 Shipbuilding Contract Hull No. the re-shop trial together with the reasons therefor. If the BUYER fails to notify the SELLER BUILDER by telefax and / or telex confirmed in writing e-mail of its acceptance or rejection of the re-shop trial together with the reasons therefor within Six six (6) business days Banking Days period as provided herein, the BUYER shall be deemed to have accepted the shop trial.

EXCESSIVE FUEL CONSUMPTION. (a) The Contract Price of the VESSEL shall not be affected nor changed if the actual fuel consumption of the Main Engine, as determined by shop trial in manufacturer’s 's works, as per the Specifications, is greater than the guaranteed fuel consumption as specified and required under the provisions of this Contract and the Specifications if such actual excess is equal to or less than Five six percent (56%). (b) However, if the actual fuel consumption as determined by shop trial is greater than Five six percent (56%) above the guaranteed fuel consumption then, the Contract Price shall be reduced by the sum of United States Dollars Sixty Thousand Only (US$60,000) for each full one percent (1%) increase in fuel consumption in excess of the above said Five six percent (56%) (fractions of one percent to be prorated). Shipbuilding Contract Hull No.H1596 (c) If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds 170.28gram/KW/hour, the BUYER may, subject to the SELLERBUILDER’s right to effect replacement of a substitute engine or alterations of corrections as specified in the following sub-paragraph of Article III 3 (c) hereof, at its option, rescind or cancel this Contract by giving noticeContract, in accordance with the provisions of Article X of this Contract and the terms of Article X Paragraph 2 and Paragraph 3 shall apply, or may accept the VESSEL at a reduction in the Contract Price by United States Dollars Two Hundred and Forty Thousand (US$240,000) being the maximum. If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds 170.28gram/KW/hour, the SELLER shall notify the same to the BUYER and BUILDER may investigate the cause of the non-conformity and the proper steps may promptly be taken to remedy the same and to make whatever corrections and alterations and / or and/or re-shop trial test or tests as may be necessary to correct such non-conformity without extra cost to the BUYER. Upon completion of such alterations or corrections of such nonconformity, the SELLER BUILDER shall promptly perform such further shop trial or trials or any other tests, as may be deemed necessary to prove the fuel consumption of the Main Engine’s conformity with the requirement of this Contract and the Specifications and if found to be satisfactory, give the BUYER notice by telefax confirmed in writing e-mail of such correction and as appropriate, successful completion accompanied by copies of such results, and the BUYER shall, within Six six (6) business days Banking Days after receipt of such notice, notify the SELLER BUILDER by telefax and / or telex confirmed in writing e-mail of its acceptance or reject Date: 12/58 Shipbuilding Contract Hull No. the re-shop trial together with the reasons therefor. If the BUYER fails to notify the SELLER BUILDER by telefax and / or telex confirmed in writing e-mail of its acceptance or rejection of the re-shop trial together with the reasons therefor within Six six (6) business days Banking Days period as provided herein, the BUYER shall be deemed to have accepted the shop trial.

EXCESSIVE FUEL CONSUMPTION. (a) The Contract Price of the VESSEL shall not be affected nor changed if the actual fuel consumption of the Main Engine, as determined by shop trial in manufacturer’s 's works, as per the Specifications, is greater than the guaranteed fuel consumption as specified and required under the provisions of this Contract and the Specifications if such actual excess is equal to or less than Five six percent (56%). (b) However, if the actual fuel consumption as determined by shop trial is greater than Five six percent (56%) above the guaranteed fuel consumption then, the Contract Price shall be reduced by the sum of United States Dollars Sixty Thousand Only (US$60,000) for each full one percent (1%) increase in fuel consumption in excess of the above said Five six percent (56%) (fractions of one percent to be prorated). (c) If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds 170.28gram/KW/hour, the BUYER may, subject to the SELLERBUILDER’s right to effect replacement of a substitute engine or alterations of corrections as specified in the following sub-paragraph of Article III 3 (c) hereof, at its option, rescind or cancel this Contract by giving noticeContract, in accordance with the provisions of Article X of this Contract and the terms of Article X Paragraph 2 and Paragraph 3 shall apply, or may accept the VESSEL at a reduction in the Contract Price by United States Dollars Two Hundred and Forty Thousand (US$240,000) being the maximum. If as determined by shop trial such actual fuel consumption of the Main Engine is more than Ten ten percent (10%) in excess of the guaranteed fuel consumption, i.e. the fuel consumption exceeds 170.28gram/KW/hour, the SELLER shall notify the same to the BUYER and BUILDER may investigate the cause of the non-conformity and the proper steps may promptly be taken to remedy the same and to make whatever corrections and alterations and / or and/or re-shop trial test or tests as may be necessary to correct such non-conformity without extra cost to the BUYER. Upon completion of such alterations or corrections of such nonconformity, the SELLER BUILDER shall promptly perform such further shop trial or trials or any other tests, as may be deemed necessary to prove the fuel consumption of the Main Engine’s conformity with the requirement of this Contract and the Specifications and if found to be satisfactory, give the BUYER notice by telefax confirmed in writing e-mail of such correction and as appropriate, successful completion accompanied by copies of such results, and the BUYER shall, within Six six (6) business days Banking Days after receipt of such notice, notify the SELLER BUILDER by telefax and / or telex confirmed in writing e-mail of its acceptance or reject Date: 12/58 Shipbuilding Contract Hull No. the re-shop trial together with the reasons therefor. If the BUYER fails to notify the SELLER BUILDER by telefax and / or telex confirmed in writing e-mail of its acceptance or rejection of the re-shop trial together with the reasons therefor within Six six (6) business days Banking Days period as provided herein, the BUYER shall be deemed to have accepted the shop trial.