YACHTBUILDAGREEMENT.doc

YACHTBUILDAGREEMENT dated： between syachtpanylimitedhongkong.（hereinafterreferredtoas“thebuilder”） and bbbccvietnam（hereinafterreferredtoas“thebuyer”） whereas： 1）thebuyerwishestoacquireaaaascape65trawleryacht（theyacht）designedbythanoscondylisandbuilttothebuyersstatedrequirementsandspecificationandthebuilderhasthecapabilityknowledgeandskillstobuildandsupplythesame. 2）thebuilderhasagreedtoconstructequipfitouttestanddelivertheyachttothebuyersstatedrequirementsandspecificationwhichthebuyerhasagreedtoacceptuponthetermsandconditionshereinafterspecified： nowthereforethepartiesheretohaveagreedanddoherebyagreeasfollows： articleiinterpretation 1）inthiscontractthefollowingwordsandexpressionsshallhavethemeaningherebyascribedtothemexceptwherethecontextotherwiseadmitsorrequires： “bankingdays”shallmeandaysuponwhichhongkongclearingbanksarecustomarilyopenforbusiness. “thebuildersclarifications”shallmeanthedocumentssoentitledformingpartofthiscontractandsetoutasannexeshereto；（seealsoitem（2）ofthisarticle.） “buyersrepresentative（s）”shallmeansuchpersonsnotifiedfromtimetotimebythebuyerashavingauthoritytoactforthebuyertheextentofsuchauthoritybeingsetoutinthenotice； “itemsofbuyerssupply”shallmeananyitemofequipmentandstoresfortheyachtorderedbythebuyerdirectfromthemanufacturerorthesupplierforincorporationintheyachtbythebuilder； “itemsofbuilderssupply”shallmeananyitemofequipmentandstoresfortheyachtorderedbythebuilderdirectfromthemanufacturerorthesupplierforincorporationintheyacht； “thecertifying/surveybody”shallmeanthebodyresponsibleforthesurveyandcertificationoftheyachttotherequirementsofthebuyer. “thecontract”shallmean（a）thiscontractand（b）theattachedannexesandschedulemoreparticularlydescribedbelow. “thecontractdeliverydate”shallmeannolaterthan； “thecontractmasterprogramme”shallmeantheprogrammeforconstructionoftheyachtsetoutinannexd； “thecontractprice”shallmeanthepricestipulatedinarticlevfortheyachtyardnumber005； “theyacht”shallmeantheyachtthesubjectofthiscontractandgenerallyasdescribedinarticleiiwithallthemachineryapparatusoutfitmaterialsandequipmentappurtenanttheretobutexcludingtheitemsofbuyerssupply.“theboatyard”shallmeanaaasyachtpanyxinhuichina. “thedesignspecifications”shallmeanthespecificationsdesignsplansanddrawingssetoutinscheduleapreparedandsignedbythebuyeridentifiedasformingpartofthiscontractandincludingsuchrevisedorsupplementalspecificationsplansanddrawingsasmaysubsequentlybeagreedbetweenthebuyerandthebuilderprovidedthat（i）inthecaseofanyinconsistencybetweenanyarticleorparagraphofthiscontractandthedesignspecificationsthiscontractshallprevail（ii）inthecaseofanyinconsistencybetweenthedesignspecificationsandaplanordrawingthedesignspecificationshallprevailand（iii）inthecaseofanyinconsistencybetweenoneplanordrawingandanotherplanordrawingthelaterindateshallprevail； scheduleashallmeantheagreedscheduleofdrawings “annexa”shallmeanthelistofmaterialsponentsandequipmentdefiningapletedyacht； annexbshallmeantheagreedweldqualityprocedures “annexc”shallmeantheagreedshotblastingfairingpaintingandfoamingspecifications annexd“shallmeantheagreedproductionschedulemasterprogram. “specified”shallmeanstipulatedinthespecificationsandannexa； “supplier”shallmeananypersonfirmorpanywhichhasenteredintoacontractwiththebuilderforthesupplyofmaterialsmachineryservicesorequipment（otherthanitemsofbuyerssupply）fortheyacht； theindexarticleandparagraphheadingsareinsertedforconvenienceonlyandshallnotaffecttheconstructionofthiscontract. wordsimportingthesingularshallincludethepluralandviceversa. 2）listofbuildersclarificationsnotcoveredinannexadocument： “cradlesfortransport”thesupplyofacradleforshipmentisexcludedfromthiscontract. “dressing/steppingthemast”thedressingandsteppingofmastfortheyachtisincludedinthebuilderssupply. “storage”thebuilderwillarrangesecurestorageashorefortheyachtattheboatyardbetweenpletionofbuildandhandoveratdelivery. “fabrication”thebuilderwillsupplysteelinprecutformwithatestcertificateinaccordancewiththebuildersproductionandqualityplan. “welding”thecontractisbasedonndt（nondestructivetesting）beingconductedtothestandardsrequiredbydetnorskeveritasclassrulesforyachtandsmallcraftincluding100%visualexamination.radiographywillbepletedwhereappropriateatthebuilderscost. allweldingwillbecarriedoutinaccordancewiththequalityplanandisoweldproceduresapprovedbythebuyersrepresentativeandwillbeingeneralaccordancewithdetnorskeveritasrequirements. “shotblasting”shotblastingoftheyachtwillbeinaccordancewiththeagreedspecificationattachedinannexc. “insulation”theinsulationoftheyachtwillbeinaccordancewiththeagreedspecificationattachedinannexc. “fairingandpainting”thefairingandpaintingoftheyachtwillbeinaccordancewiththecoatingsspecificationattachedinannexc. “equipment”theresponsibilityforthesupplyofmaterialsandequipmentwillbeasdefinedandagreedintheponentslist（annexa）fortheyacht. “qualityplandocumentation”anagreedqualityplanwillbeissuedcoveringallaspectsoftheyachtsconstructionwhichwillinclude： a）hulldeckfabrication b）blastandprime c）fairandpaint d）electricalandmechanicalengineering e）fitout articleiidescription 1）theyachttobeconstructedunderthiscontractisamotoryachtofapproximately20.00metreslengthoveralldesignedbythanoscondylisasdescribedinthespecificationswiththefollowingmainparticulars： approximatedimensions lengthoverallabout20.00metres lengthonthewaterlineabout18.03metres beam（max）about5.75metres draftabout1.77metres 2）adistinctiveyardnumbershallbeplaceduponeachyachtandhermaterialsandoutfitduringconstruction.theyardnumberoftheyachtshallbekyc005. articleiiiconstructionmaterialsandinspection 1）theyachtandhermachineryoutfitequipmentmaterialsandworkmanshipshallbeinaccordancewiththiscontractandthedesignspecifications. 2）inprinciplethebuilderwillsupplyallmaterialponentsandequipmentfortheyachtassetoutinannexea.anyadditionalmaterialponentsorequipmentprocuredbythebuilderwillbebilledtothebuyeratdeliveredcostplus15%.howeverthebuildermustnotifythebuyerinwritingpriortoprocurementofthecostandquantityofanyitemsforwhichthebuilderintendstobebilledtothebuyersaccount. 3）videdalwaysthatthebuilderwillusehisbestendeavourstominimisethedelaysocausedbyreschedulingworktoutilisethematerialponentsandequipmentthathavealreadybeendeliveredtothebuilder. 4）ifanyspecifiedmaterialsarenotavailablewhenrequiredforincorporationontheyachtthebuildershallbeatlibertytouseothersuitablematerialsinsubstitutionthereforesubjecttotheapprovalofthebuyerwhichapprovalshallnotbeunreasonablywithheld.anyadjustmenttothecontractdeliverydateordesignspecificationresultingfromsuchsubstitutionshallbemadeinaccordancewiththeprovisionsofarticleiv. 5）duringconstructionoftheyachtthebuilderwillpermitthebuyersrepresentativetoattendthetestsspecifiedinarticleviiiandtohaveaccesstotheboatyardduringordinaryworkinghourswhileworkisproceedingontheyacht.thebuildermustgivereasonablenoticeofsuchteststothebuyersrepresentativeinwriting.thebuilderwilluseitsreasonableendeavourstoarrangeforthebuyersrepresentativetohaveaccesstothepremisesofthebuilderssubcontractorsforthepurposeofinspectingmaterialsandworkmanship.ifduringconstructionthebuyerorhisrepresentativeallegesanydefectoromissionintheyachttheyshallifrequiredbythebuilderimmediatelyspecifythesameinwriting.ifthebuilderagreesthattherehasbeenadefectthebuilderwillatitsowncostbeforedeliveryrectifythesame. 6）thebuildwillbesubjecttoregularinspectionsbythebuyer.acmodationmealsandentertainmentinchinaforthebuyersstaffthatarepaidforbythebuilderwillbeinvoicedtothebuyeratcost.thebuyerwillcoverhisowntravelcoststoandfromtheboatyard. 7）thebuilderundertakestoprovideasuitablyqualified（englishspeaking）marineengineertoactasaliaisonpersonwiththebuyerthroughoutthedurationofthiscontract. 8）wherepracticalthebuildershalltakeandmakeavailabletothebuyerdigitalphotographicevidenceofallconstructionpaintingandfitoutstagesduringtheyachtsbuild.suchdigitalinformationwillbesenttothebuyerorthebuyersrepresentativebyelectronicmeansandatsuchfrequencytoallowthebuyerorthebuyersrepresentativetomonitorthecourseoftheyachtsbuild. 9）thematerialsponentsandequipmentfortheyacht（asdetailedandagreedontheponentsupplylistinannexa）thatarethebuilderssupplywillbeshippedtotheboatyardbythebuilderathisexpense.shippingcostsofitemsofbuyerssupplywillbeatthebuyerscosttogetherwithassociatedexportandimportproceduresdutiesandinsurance. 10）thebuilderspremisesshallhavethenecessaryfacilitiesandequipmenttoconstructtheyachttotheagreedstandardsandspecifications.thefacilitiesandequipmentwillincludeshotblastingequipmentairlesssprayequipmentboltweldingcapacitorheavydutypulsemigweldingequipmentandenvironmentalmonitoringequipmentcapableofprovidingarecordoftemperaturehumidityanddewpoint. articleivmodifications 1）atanytimepriortodeliveryoftheyachtthebuyerthroughthebuyersrepresentativemayrequestinwritingmodificationsoradditionstoordeletionsfromthedesignspecificationsandschedulea. thebuildershallnotbeobligedtoaccedetoanyrequestunderthisparagraph（1）unless： i）itisreasonableandpracticableforthebuildertodosohavingregardtothestageofconstructionwhichtheyachthasreachedandtothebuildersboatyardprogramme； ii）thepartiesshallfirstagreeinwritinginrelationtosuchmodificationsadditionsordeletions： （1）anyincreaseordecreaseinthecontractpriceandvariationofthepaymenttermsfortheyacht； （2）anyextensionofthecontractdeliverydate； （3）anyalterationofthetermsofthiscontractorthedesignspecificationorannexa. providedthatthebuildershallbeentitledtocontinueproductioninaccordancewiththedesignspecificationsandscheduleauntilagreementhasbeenreachedasprovidedinthissubparagraphii） 2）thebuildershallnotmakechangesinconstructionaldetailsormaterialsoftheyachtwithouttheagreementofthebuyerinwriting. articlevpriceandtermsofpayment thebuilderhasagreedtopletetheconstructionoutfitanddeliveryoftheyachtforthebuyeronthefollowingterms. 1.thecontractpricefortheyachtwillbeus$850000（eighthundredandfiftythousandusdollars） 2.paymentofthefirmpricefortheyachtshallsubjecttoparagraph3）hereofbemadeininstalmentsfromthebuyertothebuilderasfollows： instalmentevent a）initialdepositofus$127500（onehundredandtwentyseventhousandfivehundred）payableonthesigninghereof. b）uponarrivalofallstructuralbuildingmaterialsintheboatyardus$127500（onehundredandtwentyseventhousandfivehundred） c）onsatisfactorypletionoftheyachtsstructuralsteelworkus$127500（onehundredandtwentyseventhousandfivehundred） d）onsatisfactorypletionoftheyachtsinteriorpaintingandinsulationstagessubstantialpletionoftheyachtsinteriorfurniturebuiltofftheyachtandatthestartoffitoutus$127500（onehundredandtwentyseventhousandfivehundred） e）onsatisfactorypletionoftheyachtsexteriorpaintingstagesus$127500（onehundredandtwentyseventhousandfivehundred） f）onsatisfactoryinstallationoftheyachtsenginesgeneratorsandmainengineroomsystemstogetherwithinstallationoftheflybridgestructureus$127500（onehundredandtwentyseventhousandfivehundred） g）ondeliveryandfinalacceptanceoftheyachtbythebuyerus$85000（eightyfivethousand） 2）thebuildershallbynotlessthanfourteendaysnoticeinwritingadvisethebuyerofthedateuponwhicheachinstalmentofthecontractpriceshallbeepayable. （i）subjecttothebuilderspliancewiththenoticeprovisionsoftheforegoingparagrapheachofthesaidinstalmentsshallbeedueandpayableupontheappropriateinstalmenteventsubjecttoreceiptbythebuyerofthebuildersinvoicethereofacpaniedbya“stagecertificate”issuedbythebuildercertifyingthattheappropriateinstalmenteventhastakenplace. （ii）priortoeachinstalmenteventthebuildershallnotifythebuyerinwritingoftheamountofanyreductioninoradditiontothecontractpriceinaccordancewiththetermsofthiscontract.theinstalmentdueontheforthinginstalmenteventshallbeadjustedtotakeaccountofanysuchamendmenttothecontractprice. 4）theamountofeachinstalmentofthecontractpriceshallbepaiddirecttoaaasyachtpanylimiteda/cnumber08425094atcitibankhongkong（routedviacitibanknyaba021000089a/ccitibankhkchipsuid030339swiftcodecitihkhx）fortheaccountofthebuilderwithinfourteenbankingdaysoftheduedateforpaymentandifnotsopaidshall（withoutprejudicetoanyotherrightsofthebuilderinrespectofnonpayment）bearinterestfromtheduedateuntilpaymentathkbaserateplus4%. 5）intheeventofthebuilderissuingastagecertificateunder（3）（i）andthebuyerconsideringthatthebuildershouldnothaveissuedthesamebecausetheinstalmenteventshallnothavebeenreachedorifreachedthattheworkormaterialsexecutedorincorporatedbythebuilderintheyachtwasnotinaccordancewiththerequirementsofthiscontractorinaccordancewithgoodengineeringpracticethenthebuyermaygiveacounternoticespecifyingthemattersbyreasonwhereofthebuyercontendsthatthestagecertificateshouldnothavebeenissuedandthereuponifthepartiesdonotagreethenthemattershallbereferredforresolutiontoanarbitratortobeagreedbytheparties. articleviproperty 1）theyachtassheisconstructedandallmachineryandequipmentandmaterialswhetherwhollyorpartiallyfinishedorunfinishedfromtimetotimeappropriatedorintendedfortheyachtintheboatyardorelsewhereshallbeandremaintheabsolutepropertyofthebuyer（andshallbeattheriskofthebuilder）andshallbewithintheownershipanddispositionofthebuyer.thebuildershallhoweverhavealienuponthecraftmachineryandequipmentandmaterialsforrecoveryofallsumsdueunderthetermsofthisagreementoranyvariationormodificationthereof. 2）thebuilderwillcooperatewithandgiveallreasonableassistancetothebuyerinrelationtothemeasurementandregistrationoftheyacht. articleviiinsurance 1）duringtheperiodofconstructionunderthiscontractanduntildeliveryoftheyachtinaccordancewitharticleixtheyachtandallmaterialsmachineryandequipmentallocatedfortheconstructionthereofandallitemsofbuyerssupplyactuallydeliveredtothebuildershallbeattheriskofthebuilderwhoshallatitsownexpensekeepthesameinsuredforasumnotlessthan110%oftheaggregatesumofthecontractpriceplusthevalueoftheitemsofbuyerssupplywithanapprovedinsurerorinsurersandinrespectofandagainstallordinaryyachtbuildingrisksbeingfirestormtheftfloodlighteningexplosiondockingundockinglaunchingsalvageremovalofwreckstrikescivilmotionmaliciousdamagesabotageandvandalism. 2）buyerssupplyitemswillbedeliveredtothebuilderatxinhuiportatwhichpointtheriskfortheitemswillpasstothebuilder. 3）acertificateofinsuranceshowingthatthenecessarycoverisinplaceshallbedeliveredtothebuyerifsorequired. 4）intheeventofanactualconstructivepromisedorarrangedtotallossoftheyachtpriortodeliveryofthesametothebuyereitherthebuyerorthebuildershallbeentitledtoterminatethiscontractbyservinguponthebuilderorthebuyerasthecasemaybewrittennoticeofterminationsuchnoticetobedispatchedwithinfourteendaysofthedateuponwhichtheinsurersacceptthattheyachthasbeeanactualconstructivepromisedorarrangedtotalloss. 5）intheeventofanylossordamagebeingsustainedbytheyachtpriortodeliverywhichdoesnotconstituteanactualconstructivepromisedorarrangedtotallossthebuildershallrepairandmakegoodthatlossordamage（hereinafterreferredtoasapartialloss）atthecostofthebuilderandwhetherornotsufficientinsurancefundsmaybeavailable. 6）theproceedsoftheinsurancereferredtoinparagraph（1）ofthisarticleshallbedealtwithasfollows： iftheinsuranceproceedsareinrespectofanactualorconstructiveorpromisedorarrangedtotallossthentheyshallbeappliedfirstlyinreimbursementtothebuyeroftheamountofallpaymentsifanymadebythebuyertothebuilderunderthiscontractandinreimbursementofthevalueofanyitemsofbuyerssupplyandsecondlyinpaymentofanybalancetothebuilder. 7）followingdeliveryoftheyachtthebuyershallacceptallriskintheyachtincludingallmaterialsmachineryandequipmentthereofandthebuyershallatitsownexpenseberesponsibleforallinsurancerisksthereafter. articleviiitests 1）priortodeliveryoftheyachttothebuyerthebuildershallcarryoutthetestsprovidedforinthequalitydocumentationincludingbutnotlimitedto：a）noiseandvibration b）hoseandpressuretests c）motoringtrialswithintheconfinesofthewestriver. 2）thebuildershallgivethebuyerreasonablewrittennoticeofthetimeandplaceatwhicheachofthetestsistobecarriedout. articleixdelivery 1）theyachtshallbedeliveredtothebuyerbythebuilderatamutuallyagreedplaceinhongkongharbouronorbeforethecontractdeliverydateorasthesaidcontractdeliverydatesmayhavebeenextendedinaccordancewiththeprovisionsofarticlesiiioriv. 2）providedthatallinstalmentsandothersumsassetoutandcontainedinarticlevarefullypaidthenthedeliveryoftheyachtshallbeeffectedforthwithbytheconcurrentsignaturebythebuyerandthebuilderofacertificateofdeliveryandacceptanceacknowledgingdeliveryoftheyachtbythebuilderandacceptancethereofbythebuyerprovidedthatthesignaturethereofbythebuyershallnotoperateasawaiverofanyrightswhichthebuyermightotherwisehaveinrespectoftheyacht.3）upondeliverytheriskintheyachtdeliveredshallpasstothebuyeritbeingexpresslyunderstoodthatuntildeliveryiseffectedtheyachtandtheirequipmentareattheentireriskofthebuilder. 4）thebuyershalltakepossessionoftheyachtimmediatelyupondelivery. 5）ifthebuilderisunabletotendertheyachtfordeliverywithinsixtydays（theperiodofgrace）ofthecontractdeliverydatethebuildershallpaytothebuyerasagreedandliquidateddamagesthesumofus$100foreachdaytheyachtisnotsotenderedforthefirstthirtydayperiodofdelayaftertheperiodofgracethenus$250foreachsubsequentdaytheyachtisnotsotenderedanduntilsatisfactorydeliveryismade. 6）ifanyitemsontheyachtareinpletewhenthatyachtisotherwisereadyfordeli