ln" napoli Letter Refi KRO2-NP-JV-L-0003 Reply to:- KRO2-AF-NP-L-0002 & KRO2-AF-NP-LOOO7 Date:- 22-2-2022 Dear Nadeem, ‘Trust this Letter finds you well, please note that with regards to your letter KRO2-AF-NP-LO0O7 we would like to mention that we have already finalized and handed over Lines 80 with pump room 81, Line 70 with pump room 71 and line 40 is currently ongoing, we have had material issues only with regards to the cathodic protection clamps and their carbon coated steel casing and this is due to the fact that the clamps are not found in KSA but they are fabricated and delivered from abroad with a substantial lead time (Cathodic Protection is a different contract butt | directly related to our contract), albite that, the material will be delivered within 2 days and the works have not stopped nor slowed down in line 40. Line 20 is not yet handed over by the JV to Napoli to start with. It is unfortunate and unjust to send us an NOD (Notice of Default) in accordance with clause 2.3 Contractor's instructions, 4.2 Subcontractors representative, 7 Time of completion and its subclauses from 7.1 to 7.5 under the subcontract agreement SA0SC1-32AZ-388-00 without taking into consideration all the delays that are due to leakage from dam boards (not in Napoli Scope) and unforeseen damages to the pumps in other lines causing the backflow of sea water to our tanks in lines 80, 70 and 40, malfunction of overhead crane, the interference of other subcontractors, asking for our technicians to do other works in other areas well out of our scope due to Acciona/ RTCC Necessity, live electrical cables and water leaks, performing works that are out of scope prior of sending any variation in order to not stop, delay or damage RTCC Acciona JV main schedule with SWC. (Refer to email examples dated, 11/Dec/22, 10/JAN/23, 7R/hug/79, 21/B1ig/?7, 24/B1g/72, R/ln)99, 1/B00g/99, 18/0/79) Non the less Napoli has adjusted with all the site issues and done works that are well out of our scope such as but not limited to Grouting of Suction Bell mouths, Grouting behind mechanical fixation of railings, Grouting underneath all mechanical equipment (twice due to design changes), pouring of basis underneath the elbow pumps, closing of gates between pump rooms, injection of water leaks outside of ‘the tanks, removal of parts of the old mechanical equipment, Painting and repairing of pump inlet walls, demolition of old elbow pipe basis, Painting of all Site offices and main office bullding, refurbishment of the site offices, et.. +966 13 802 2550 - ita = ign = pat Sea Ay ta 2060098513 Six 300854996700005 ya. 2 4] ~ ye {R# 2060035513 - Kingdom of Sau Arabi - Dammam -Saitat, napoli = Tel: +966 13 802 2550 - VAT: 300854996700003.ln" napoli Not to mention the most important aspect that is payment issues and due amounts that are paid well after the due date (if paid at all) and in portions that are inappropriate to the requirements. We at Napoli do agree that there are “communication issues” within the past few days and we request a Meeting that end up with defined requirements for both Parties (Acciona RTC JV and Napoli) that incl jes minuites of meeting signed by hath parties, of which hoth pat Napoli reserve all our rights to reply, but action will be taken to remedy the supposed breach prior to the expiry of the notice period in the contract, we will also take all the necessary steps in order to fulfil all the requirements of the JV within the next days including a revised schedule as per clause 7. (This will require coordination with your planner in order to know the date of release forall the tanks (Tank 30 is remaining) and this has been asked through emails and verbally by our engineers none the less the dates given for handing over the tanks was not respected due to issues not within your grasp) will adhere to, mareqver we at In light of the above, itis kindly requested that you have a second thought about the Notice of default taking into account that we at Napoli will take actions to remedy the issues after the aforementioned meeting. We further reserve our right to issue any additional response or further amend the contents of this response or any other subsequent notice, email, correspondence, etc. issued by us to you, at an appropriate juncture. Best of Regards, Majed Al Ghamidi +966 13 802-2550 - in «ign pa = yea yl Sa 2060098513 Sie 300854996700005 ya. 2 yf ~ ye {R# 2060035513 - Kingdom of Sau Arabi - Dammam -Saitat, napoli = Tel: +966 13 802 2550 - VAT: 300854996700003.