CONTRATTO D'APPALTO E STRUTTURA COMMERCIALE DEFINITIVA

WORKS CONTRACT AND FINAL COMMERCIAL STRUCTURE

PROGETTO: "CANTIERE NAVALE DI POSORJA" / PROJECT: "POSORJA SHIPYARDS" - ECUADOR

VALORE CONTRATTUALE / CONTRACT VALUE: USD 607.499.200,00 (LUMP SUM / A CORPO)

1. PARTI CONTRAENTI / CONTRACTING PARTIES

Il presente accordo programmatico e commerciale viene stabilito e concordato tra:

1. Hydrocarbon Industry of Ecuador, S.A. (INHIDREC), con sede in Quito, Repubblica dell'Ecuador, assistita per gli aspetti di coordinamento marittimo da Autmar Ship Management Corp. (AUTMAR), di seguito denominata il "Committente".

2. SOUTH RISE Consortium, con sede operativa in Via Lariana n. 7, Roma, Italia, legalmente rappresentato dall'Ing. Dott. Enrico Migliardi, di seguito denominato "Appaltatore" assistita dallo Studio Cancrini e dall'impresa di Mediazioni Marittime Fasulo Marco (Italia)

This programmatic and commercial agreement is established and agreed between:

1. Hydrocarbon Industry of Ecuador, S.A. (INHIDREC), based in Quito, Republic of Ecuador, assisted for maritime coordination aspects by Autmar Ship Management Corp. (AUTMAR), hereinafter referred to as the "Client".

2. SOUTH RISE Consortium, with operational headquarters at Via Lariana n. 7, Rome, Italy, legally represented by Dr. Eng. Enrico Migliardi, hereinafter referred to as the "Contractor".

2. QUADRO ECONOMICO DELLE OPERE / WORKS ECONOMIC BREAKDOWN (+10% ALLOCATED)

Di seguito si riporta la scomposizione dei costi (WBS) aggiornata con l'incremento lineare del 10% a favore dell'Appaltatore, strutturata su un livello di definizione ingegneristica Classe 3.

The following table shows the Work Breakdown Structure (WBS) updated with the 10% linear increase in favor of the Contractor, structured on a Class 3 engineering definition level.

WBS CODE

MACRO-COMPONENTE / WORK ITEM

ORIGINAL (USD)

UPDATED (+10%) (USD)

WBS 1.0

Ingegneria, Studi e Permessi / Engineering, Site Studies & Permits

$33,800,000.00

$37,180,000.00

WBS 1.1

Detailed Engineering (FEED), Geotechnical Testing & Bathymetry

$11,050,000.00

$12,155,000.00

WBS 1.2

Environmental Licensing Management (MAATE) & Port Concessions

$4,550,000.00

$5,005,000.00

WBS 1.3

General Mobilization of Pilot Fleet, Camps & Base Earthworks

$18,200,000.00

$20,020,000.00

WBS 2.0

Infrastruttura Marittima Pesante / Heavy Maritime Infrastructure

$275,600,000.00

$303,160,000.00

WBS 2.1

Dry Dock Pit (360 x 55 m), Walls, Cofferdams & Floating Gate (235k DWT)

$149,500,000.00

$164,450,000.00

WBS 2.2

Syncrolift System (150 x 30 m), Friction Piling & Winches (25k DWT)

$67,600,000.00

$74,360,000.00

WBS 2.3

Transfer Yard and Rails (53,000 m²) for 8 independent slipways

$32,500,000.00

$35,750,000.00

WBS 2.4

Equipment Docks, Sheet Pile Walls, Fenders & Gantry Crane Rails

$26,000,000.00

$28,600,000.00

WBS 3.0

Impianti a Terra e Servizi / Ground Facilities & Industrial Services

$98,000,000.00

$107,800,000.00

WBS 3.1

Mechanical Workshops, Automated Warehouses & Pre-fab Areas

$42,000,000.00

$46,200,000.00

WBS 3.2

Main Electrical Substation & Diesel/Gas Backup Power Generators

$24,000,000.00

$26,400,000.00

WBS 3.3

MARPOL Effluent Treatment Plant & Internal Water Reservoirs

$18,000,000.00

$19,800,000.00

WBS 3.4

Administrative Complex, Logistics Access Gate & Internal Roads

$14,000,000.00

$15,400,000.00

WBS 4.0

Infrastruttura Stradale ed Opere Idrauliche / Connectivity & Ecology

$63,050,000.00

$69,355,000.00

WBS 4.1

Access Road (3.87 km / 30m wide), Gravel Columns & Rigid Pavement

$37,050,000.00

$40,755,000.00

WBS 4.2

Hydraulic Works in Mangrove (92 Ha), Box Culverts & Viaducts

$18,200,000.00

$20,020,000.00

WBS 4.3

Environmental Compensation Plan, Mangrove Reforestation & Curtains

$7,800,000.00

$8,580,000.00

WBS 5.0

Management e Contingenza / PMO, Coordination & Contingency

$81,822,000.00

$90,004,200.00

WBS 5.1

Integrated Project Management (PMO), Quality Assurance & HSE

$19,500,000.00

$21,450,000.00

WBS 5.5

Maritime Management & Coordination (AUTMAR SHIP)

$20,774,000.00

$22,851,400.00

WBS 5.3

Contingency Fund for Geotechnical Unforeseen Events (South Rise)

$41,548,000.00

$45,702,800.00

TOTALE CAPEX CONTRATTUALE / TOTAL CONTRACT CAPEX

$552,272,000.00

$607,499.200,00

3. CONDIZIONI LEGALI E GARANZIE / LEGAL CONDITIONS AND GUARANTEES

3.1. Adeguamento Prezzi e Imprevisti (A favore di South Rise) / Price Adjustments (In favor of South Rise)

IT: In deroga parziale all'Articolo 1664 del Codice Civile Italiano, le parti concordano che qualora i prezzi dei materiali da costruzione (acciaio, cemento, componenti meccanici) aumentino di oltre il 5% rispetto ai prezzi di riferimento della proposta commerciale di riferimento, l'Appaltatore (South Rise) avrà il diritto immediato all'adeguamento dei prezzi. Qualsiasi imprevisto geologico riscontrato durante lo scavo del bacino o la posa delle fondazioni speciali sarà coperto prioritariamente dal Fondo di Contingenza (WBS 5.3) o mediante ordini di variazione emessi dal Committente.

EN: In partial derogation of Article 1664 of the Italian Civil Code, the parties agree that should the prices of construction materials (steel, cement, mechanical components) increase by more than 5% compared to the reference prices of the commercial proposal, the Contractor (South Rise) shall have the immediate right to price adjustment. Any geological unforeseen events encountered during the excavation of the dry dock or the installation of special foundations will be covered as a priority by the Contingency Fund (WBS 5.3) or through variation orders issued by the Client.

3.2. Limitazione di Responsabilità e Penali / Limitation of Liability and Penalties

IT: Le penali applicabili per ritardi nell'esecuzione dei lavori saranno soggette a un periodo di tolleranza di 30 giorni (*Grace Period*) per ciascuna delle scadenze prefissate. L'importo massimo cumulativo di tutte le penali applicabili all'Appaltatore è fissato al 5% del valore totale del contratto (USD 30.374.960,00), con esclusione espressa del diritto al risarcimento di danni ulteriori da parte del Committente.

EN: Penalties applicable for delays in the execution of works shall be subject to a grace period of 30 days for each of the pre-established deadlines. The cumulative maximum amount of all penalties applicable to the Contractor is set at 5% of the total contract value (USD 30,374,960.00), with the express exclusion of any right to claim additional damages by the Client.

3.3. Giurisdizione e Risoluzione Controversie / Jurisdiction and Dispute Resolution

IT: Il presente contratto d'appalto è regolato e interpretato in conformità alle leggi della Repubblica Italiana. Qualsiasi controversia tecnica o economica derivante dall'esecuzione delle opere sarà risolta in via definitiva mediante Arbitrato Internazionale presso la Camera di Commercio Internazionale (ICC) di Roma, con l'utilizzo della lingua spagnola o inglese.

EN: This works contract is governed by and construed in accordance with the laws of the Republic of Italy. Any technical or economic dispute arising from the execution of the works shall be definitively resolved by International Arbitration under the rules of the International Chamber of Commerce (ICC) in Rome, using Spanish or English language.

______________________________________

INHIDREC S.A.

Eng. José Alexander Caballero Guerrero

Representative

______________________________________

SOUTH RISE Consortium

Ing. Dott. Enrico Migliardi

CEO & Legal Representative