PERFORMANCE GUARANTEE SAMPLE I

Date: xx, xx, 20xx
To: [the SELLER]

In consideration of your executing the Shipbuilding Contract for Construction and Sale of One (1) [82,000] Metric Tons Deadweight Bulk Carrier bearing Hull No. [Hxxxx] to be built by [the Builder] (hereinafter called the “VESSEL”) dated [xx,xx,20xx] (hereinafter called the “CONTRACT”) with [the Buyer] (hereinafter called the “BUYER”), we, the undersigned, a corporation organized, registered and existing under the laws of [register country] with register address [address], do hereby, jointly and severally with the BUYER, guarantee the due and faithful performance by the BUYER of all its liabilities, obligations and responsibilities under the Contract and any supplement, amendment, changes or modifications hereafter made thereto.

This Guarantee shall be governed by and interpreted in accordance with the laws of England.

Yours faithfully
[the Guarantor]

Signed by

Title:

PERFORMANCE GUARANTEE SAMPLE II

Date: xx, xx, 20xx
To: [the SELLER]

In consideration of your executing a Shipbuilding Contract dated [xx, xx, 20xx] with [the Buyer], [register country] (hereinafter called the “Buyer”) for one (1) [82,000] MTDW type single screw motor driven bulk carrier bearing the builder’s Hull No. [Hxxxx] (hereinafter called the “Vessel”), we, the undersigned, do hereby, absolutely, unconditionally and irrevocably guarantee to you, your successors and assigns, the due and faithful performance by the Buyer of all of its liabilities and responsibilities under the said Shipbuilding Contract and any agreements related thereto and any supplements, amendments, changes or modifications to be hereafter made thereto (hereinafter collectively called the “Contract”), including but not limited to, due and punctual payment of the Contract Price by the Buyer to you under the Contract.

In the event of failure by the Buyer to perform and/or to observe its obligations under the Contract, then, we shall promptly perform, upon receipt of notice from you, the obligations of the Buyer under the Contract according to the terms thereof, without requesting you to take further step or other action against the Buyer.

The undersigned hereby unconditionally affirm and consent to any and all amendments, changes and modifications to be hereafter made to the Contract without requesting any further notice.

Yours faithfully
[the Guarantor]

Signed by

Title: