Announcement of Qinfeng3 Public Transference(First Time)

Entrusted by the China Huarong Financial Leasing Co., Ltd., we decide to transfer Qinfeng3 publicly on the www.shipbid.net during 9 a.m. to 16 p.m. on July 21, 2016 (except for the delay).

1. Auction Object: Qinfeng3 Bulk Carrier

Main Dimension: 157.5X22X11.8m; Gross Tonnages: 11553; Nett Tonnages: 6469; Reference Deadweight: 17954t; Model of Main Engine: GDF 8G32; Power: 3552KW; Completion: October, 2010. Yueqing, Zhejiang. ; Port of Registry: Hangzhou. Good ship condition and complete certifications. Viewing location: Jintang anchor station.

Viewing and consulting is accepted from now on.

2. Registration: Interested bidder can register on www.shipbid.net and charge the deposit to Ningbo Ship Exchange Market (more details in the notice). The deadline is 4p.m. on July 20, 2016.

Account name: Ningbo Ship Exchange Market Co.Ltd

Bank Name: China Merchants Bank, Ningbo, Zhongshan branch

Account number: 574905074310401

3. Auction Parameter:

Reference starting price: 18 million yuan, deposit: 1 million yuan; bid increments: a multiple of 0.1 million yuan

4. Transfer method: When the application reaches two (including two) or more then it will transfer as required.

5. Contact Method:

No. 40-41, 1F, Ningbo international shipping service center, Zhejiang

Contact number: 0574-86815581 Mr. Cheng 27966278 Mr. Wang

Ningbo Ship Exchange Market  Co.Ltd

June 22, 2016

Article 1 Bidding Rules is made by relevant laws, regulations and policies of our Country and with Shipbid practical situations, to standardize the bidding behaviors, maintain an open, fair and equal transaction order, and protect legitimate rights and interests for all the parties involved.

Article 2 The Transaction Rules of the ship bidding (hereafter to be referred as bidding) is suitable for standardizing all the online bidding behaviors. All the parties involved should abide by the Rules and bear legal responsibilities for their own behaviors.

Article 3 All legal personalities, natural persons and other organizations in and abroad PRC can participate in the bidding only if they have the qualifications of the auction announcement except those provided by laws and regulations.

Article 4 The auction announcement and other documents are formulated by the auctioneer.

Article 5 The auction information including videos, pictures and written introductions offered by the Seller will be uploaded through the Shipbid system after verified by the auctioneer.

Article 6 The Seller shall take all the legal responsibilities and economic losses if he provides with fake information.

Article 7 The bidders couldn’t participate in the bidding activities until they register as the buyers through the Shipbid system.   

The passwords should be kept safely. If forgotten, bidders could retrieve through the Shipbid system. And if divulged, bidders should login in time to change the passwords.

Article 8 Before submitting the application for the bidding, the bidders should carefully read the auction announcement, ship’s information, transaction rules and other relevant documents, then login the Shipbid system to fill in true and effective information as required.

Article 9 The bidders should submit the applications in accordance with the auction announcement before the Shipbid starts.

If legal personalities, natural persons and other organizations need joint-bidding, they should fill in related information and the proportion of capital contribution of each party as required and sign the Joint Bidding Statement.

Article 10 The bidders apply on the Shipbid system by themselves, and pay the deposit either on line or offline. Foreign bidders could also apply for bidding with the Guarantee Letter of bank as the auctioneer required. One deposit is only for one lot. And if the bidders want to bid several ships at the same time, corresponding deposits are required.

The bidders are entitled to bid only if the deposit fully paid to the nominated account (based on the arrival time of the deposit) or the original Letter of Guarantee delivered to the auctioneer (based on the arrival time of the Letter of Guarantee to persons in charge) within the required time. The bidders shall not be eligible for bidding if the deposit is delayed or not fully paid or the Letter of Guarantee is not received on time.

Article 11 The bidding shall be conducted with time limit. Qualified bidders can participate in the bidding. The initial offer shall not be lower than the starting price and each offer shall be no less than the specified bid increment.

If it is an auction with reserve price, “YES” will be revealed in the system. Otherwise it will display “NULL”.

Article 12 The bidder shall make a cautious bid, and the offer will be irrevocable once submitted.

Article 13 The last limited time of the Shipbid is FIVE (5) minutes. If there is a new bid within 5 minutes countdown, another 5 minutes will be set.

No new offers would be accepted after the final countdown, and the bidding history will be revealed.

Article 14 Once there is/are (a) bidder offer(s) in the Shipbid, the target bidder (hereinafter called the Buyer) shall be confirmed in accordance with the following rules

(1) Where there is no reserve price, the highest bidder would be the Buyer.

(2)Where there is a reserve price, the bidder with the highest offer and not lower than the reserve price would be the Buyer; If the highest offer is lower than the reserve price, the bidding will be pass.

When the time for the bidding is over, the bidding system will be automatically closed.

Article 15 The Buyer should confirm his qualification with the enterprise or individual valid certification to the auctioneer within 3 working days after the bidding. After verification and confirmation, the Buyer should sign the Purchase Confirmation.

If the Buyer's qualification is not approved, the bidding result will be invalid, the deposit would be confiscated, and the lot should be bid again. The Buyer should pay the commissions for both parties due to his breach of the contract; Also, the previous Buyer should pay the balance of price if the final purchase price is lower than the first purchase one.

Article 16 The payment of balance shall be remitted to the nominated account in time according to the Purchase Confirmation.

Article 17 The Buyer should sign the Sale and Purchase Agreement by the Purchase Confirmation with the seller within the required time and make relevant transaction procedures.

Article 18 The auctioneer should publicize the bidding results through the Shipbid system after the bidding.

Article 19 After paying the balance, the Buyer himself should handover the lot and manage the transaction procedures in time. If the Buyer fails to manage within required time, he himself should pay the costs caused by the delay and afford the consequences of possible damage or losses.

Article 20 The Buyer himself should register the lot and bear all relevant expenses occurred according to the regulations and policies during the transaction procedures.

Article 21 The bidding currency is RMB. Both the starting price and purchase price do not include the expenses and taxes occurred during transaction procedures.

Article 22 If the bidder obstruct others to bid, manipulate or monopoly the bidding price, or make malicious collusion, the auction will be cancelled once above behaviors are found, and relevant legal responsibility will be borne by the bidder.

Article 23 If the bidder cannot normally login the Shipbid system to apply, offer or bid because of following reasons such as virus invasion, hardware failure, network congestion or passwords forgotten and divulge, etc., he himself should bear the consequences and the bidding will not be suspended.

Article 24 The auctioneer reserves the right to suspend or withdraw the bidding before it starts according to the laws and regulations.

Article 25 The auctioneer reserves the right to suspend or withdraw the bidding if force majeure or accident has caused the online auction to fail.

The time concerned in the bidding all depends on Shipbid system service time, except the deposit arriving time which depending on the bank recording time. All the time of information arriving is subject to the time when the information received by Shipbid.

Zhejiang Shipping Exchange Co Ltd is responsible for the interpretation of the Rules.