Correction of Confidence Navigation Ltd., a subsidiary of the company’s subsidiary Norley Corporation, of its gain of disposal in sold asset Ting-Tso VLCC, weighted 305,178 DWT

Correction of Confidence Navigation Ltd., a subsidiary of the company’s subsidiary Norley Corporation, of its gain of disposal in sold asset Ting-Tso VLCC, weighted 305,178 DWT
  1. Name and nature of the subject: One very large crude carrier, 300,000 DWT
  2. Facts occurrence date: May 16, 2014
  3. Trading unit and number, price per unit and total amount: One very large crude carrier for US$ 41,000,000
  4. The name of buyer and its relationship with the Company: Kimolos Shipping Corporation, not related parties
  5. If the buyer is related party, the reason of choosing him as the buyer, the name of previous owner and relationship between previous owner and the buyer, and previous transaction date and amount shall be announced: NA
  6. If the owner of the subject within last five years is the related party with the Company, the date of acquisition and disposal of subject by the related party, the trading price, and the relation with the Company shall be announced: NA
  7. The expected profit (or loss) (acquisition of assets is not applicable): US$1,800,000
  8. Condition of delivery or payment (including payment period and amount), contractual restrictions and other important stipulations: 10% of full payment when contract signed, 90% of the full payment when VLCC delivered
  9. The way of deciding this transaction (e.g. bidding, parity or bargaining), the reference of the price determination, and decision-making unit: Bargaining by the Board of Directors of the subsidiary
  10. The name of professional valuation firm and the amount:
    Arrow valuations , US$ 40,500,000.
    Clarkson valuations Limited, US$ 40,000,000.
  11. The name of professional appraisers: NA
  12. Certificate number of professional appraiser: NA
  13. Is valuation report using specific market value, specified market value or special value: No
  14. Have not obtained the valuation report: No
  15. The reason of having not obtained the valuation report: NA
  16. The reason of big difference from transaction amount and the account comment: NA
  17. Broker and brokerage fee: Arrow Shipping (UK) Ltd,2% of the price
  18. Specific purpose of acquisition or disposition: Disposal of ships
  19. Objection opinions of directors to this transaction: None
  20. Transactions among related parties: No
  21. The Board of Directors’ approval date: NA
  22. The Supervisors’ acknowledgement date or the audio committee’s approval date: NA
  23. Is this transaction obtained the real estate from the related party: No
  24. In accordance with Article 15 of Regulations Governing the Acquisition and Disposal of Assets by Public Companies to valuation: NA
  25. When the results of the Company’s appraisal conducted in accordance with the preceding Article are uniformly lower than the transaction price, the price shall be handled in compliance with Article 16 of the same regulation: NA
  26. Other necessary statements: none