LEASE OF DREDGING MACHINE AGREEMENT

BETWEEN

KADOSH HOUSE NIG LTD & GAS LIMITED

(LESSOR)

AND

EDDYSOL INTEGRATED SERVICES

(LESSEE)

IN RESPECT OF A 22/20 CUTTER SUCTION

DREDGER LEADER DREDGER

LEASE OF DREDGING EQUIPMENT AGREEMENT

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THIS AGREEMENT is made this 1th day of January, 2025
BETWEEN
KADOSH HOUSE NIG, LIMITED, a company incorporated under the laws of the Federal
Republic of Nigeria with RC number: 1509638 and having its registered office at No. 30
First Avenue opposite Happy Food, Ada George Road, G.R.A, Port Harcourt, Rivers State,
Nigeria (Hereinafter referred to as the “LESSOR” DREDGE OWNER; which expression
shall where the context so admit includes his heirs, Successors–in–Title, Administrators,
Executors, Legal and or personal Representatives and Assigns) of the one part.
AND
EDDYSOL INTEGRATED SERVICES, a company incorporated under the laws of the
Federal Republic of Nigeria, and having its office address at 51 Transformer road Eneka
Port Harcourt Rivers State, Nigeria. (Hereinafter called the “LESSEE” HIRER, which
expression shall where the context so admits includes his/her Successors–in–Title,
Administrators, Trustees, Executors, Legal and or Personal Representatives and Assigns) of
the other part.
NOW THE AGREEMENT WITNESS AS FOLLOWS

DEFINITION
In the agreement the following expression shall have the following respective.
Meanings:
Equipment, means except otherwise expressly stated, the 22/20 Inch Leader Dredger,
Cutter Suction; hereby leased by the Lessor (Dredge Owner) to the Lessee (Hirer).
Equipment shall be deemed to include all replacements and renewals thereof and all
accessories and additions thereto whether made before or after this agreement.

Rental means the rental as agreed by the Lessor (Dredge Owner) and the Lessee (Hirer) at
their full-face value without any deduction, set-off or counter- claim whatsoever.

TERMS OF LEASE

(a) The Lessor (Dredge Owner) hereby leases to the Lessee (Hirer); who then takes on
lease from the Lessor the equipment for dredging of water sharp sand for a period of
Eight (8) hours per day for two (3) months. The Site location is Eket, Akwa Ibom
States, commencement of dredging activities for this contract shall be on ….. st of
January 2025.

(b) The Lease operation time shall be jointly determined and agreed by both parties
using a common record that will be signed-off on daily basis by representatives of
both parties.

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 (c) If the Lessee (Hirer) is desirous of taking a new lease of the leased equipment after
the expiration of the term hereby agreed, the Lessee (Hirer) shall give to the Lessor
(Dredge Owner) notice in writing not less than one week (7 days) before the
expiration of the said contract term. This will then be determined by the Lessor
(Dredge Owner) if to extend lease or not.

(d) That the parties to this agreement agreed and understood that the leased equipment
during the tenor of this agreement and after termination thereof remains the property
of the Lessor (Dredge Owner)

THE LESSEE (HIRER) HEREBY COVENANTS

1. To bear the cost of fueling (NNPC Approved Diesel) the leased equipment daily
throughout the duration of Lease.

2. Provide 200 litres of diesel daily for each 1hours of operations.

3. Provide suitable accommodation for the dredge crew.

4. Pay a daily allowance to all dredge crew members working on site. Note daily
allowanced is only set for 8hrs work. Any extra hour requested for should be done
through the Manager
5. Pay the Dredge Lease amount of N3,1000.00 daily with Minimum Rental upfront
Payment of (60 days) 2 months.
6. Shall provide Gun boat for both mobilization and demobilization of the Dredger. This
activity will be calculated and handled by the lessee (Hirer).
7. Shall provide all the required dry plants such as, Excavator, Swamp Buggy, Tug boat,
Dozer and/or any other equipment needed during the dredging operations.
8. To bear and discharge every kind of taxes, government levies, permit licenses and
community settlements within the operational period on the hirer site.
9. To provide security for equipment. Day and Night security personnels, tools and
manpower should always be on-board the equipment, throughout the duration of this
agreement.

10.To indemnify the Dredger against damage and loss whilst on the lessee working site.

11. Not to sell or offer for sale, assign, mortgage, pledge, sublet or lend out the equipment
or in any way part with the equipment or any interest therein, and to prevent the
creation of any charge or lien thereon.

THE LESSOR (Dredge Owner) HEREBY CONVENANTS

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 1. That the Lessee (Hirer) shall enjoy quiet possession of the equipment subject to
paying the prescribed rental, complying with the terms and conditions of this
agreement.

2. Provide crew for the smooth operation of the leased equipment.

3. Shall be in charge of maintenance of dredger.

4. The Lessor shall be responsible for her dredger management.

5. The Lessor shall pay all her workers’ salaries.

PAYMENTS

1. The Lease Agreement shall be for a period of two months day dredging operation
which the Lessee shall pay a daily rent of N3,000,000.00 (One Hundred and
Eighty six Million Naira only) for a period of (60 days) two months. This payment
is broken down as follows:

2. Upfront (initial) payment of N186,000,000.00 shall be made to the lessor before

the commencement of this said contract.
a. Failure to make due said payment, dredging operation will be terminated within 24
hrs.

3. Upon the expiration of the initial upfront payment, subsequent payments shall be
made, every first week of the new month for two months till the final duration of
this leased agreement.

4. Payment for mob and demob of Nxxx,xxx,xxx will be paid upfront.

b. The Lessee (Hirer) shall pay a none refundable mobilization and demobilizing fee
as calculated and agreed by parties based on location of the Site.
c. No refund of payment.

d. That nothing in this Deed precludes the Lessor from seeking any appropriate legal
or equitable remedy to enforce the performance of the terms of this agreement and
from recovering the full consideration furnished herein together with interest at the
prevailing bank rate and other expenses accrued by the Lessor in respect of the
Dredging Machine hereby hired; if there is any loss or damage to the Dredger.

OPERATIONS AND HIRING INSTRUCTIONS

1. Once the Dredger arrives site, the number of days paid for starts counting a day
after arrival.
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 2. Day and Night dredging in site is observed as an eight (8) hr. operation. This also
includes sand dredging, swinging, suction clearing within 8hrs. so equipment
needed for these operations should be made available daily.

3 If a shortage of working hrs. occurs due to dredger breakdown/maintenance,

Lessor will complete the lost hrs. for the Lessee.

4 In a situation where there are no dredging operations, no maintenance or

breakdown and the equipment is in good working conditions but the stoppage of
operations results solely from the Lessee, day rental fee shall count.

5 Security of the equipment, floaters and her pipes are under the care of the Lessee.
Any damage or theft will be billed to the Lessee.

6 The Lessor is entitled to demobilized from site once the dredging days paid for is
completed.

ADOPTION

The parties to this agreement hereby adopt the contents of this agreement.

FORCE MAJEURE

1. None of the parties shall be judge to be in default of its obligations under this
agreement, if presented or delayed from the performance thereof by force majeure that
is, act of God, public disorder, extra ordinary fire, national strike or war.
2. Where a party is affected, he shall promptly give notice in writing, including reasons
to the other party.

ALTERATION

No alteration shall be made to the terms of this agreement unless as expressly agreed by both
parties.

DISPUTE RESOLUTION

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Any dispute or differences arising between parties to this agreement shall in the failure of
amiable settlement between the parties be resolved using any of the Alternative Dispute
Resolution (ADR) methods available as convenience to the party seeking redress before
resort is made to the court of the litigation.

The language of the arbitration or any other method of ADR shall be English and each party
shall bear its cost of the ADR.

TERMINATION

Either party to this agreement shall give to the other 7 days’ notice in writing in advance to
terminate this agreement except in situations earlier stated in this agreement. Termination
shall be without liability to obligations/benefits due or outstanding.

APPLICATION LAW

This agreement shall be constructed and governed by the law of the Federal Republic of
Nigeria.

IN WITNESS WHEREOF the parties hereto have hereunto set their respective hands
and seal the day and Year first above written.
SIGNED, SEALED AND DELIVERED BY WITHIN-NAMED “LESSOR”

THE COMMON SEAL OF THE COMPANY IS HEREBY AFFIXED

IN THE PRESENCE OF:

DIRECTOR SECRETARY

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………………… ………………..
In the presence of:
NAME…………………..…………………………………………..
ADDRESS……………………………..…………………………..
OCUPATION…………………………….………………………..
SIGNATURE AND DATE…………………………………

SIGNED, SEALED AND DELIVERED BY WITHIN-NAMED

“LESSEE”

DIRECTOR SECRETARY

………………… ………………..
In the presence of:
NAME…………………..…………………………………………..
ADDRESS……………………………...…………………………..
OCUPATION…………………………….……………
SIGNATURE AND
DATE………………………………………….

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