YACHT BUILD AGREEMENT

1、YACHT BUILD AGREEMENT DATED：_ between _sYachtCompanyLimited，HongKong.(Hereinafterreferredtoas“theBuilder”) and BBBCC，Vietnam，(Hereinafterreferredtoas“theBuyer”) WHEREAS： 1)TheBuyerwishestoacquireaAAAsCape65TrawlerYacht(theyacht)designedbyThanosCondylis，andbuilttotheBuyersstatedrequirementsandspecifi

2、cation，andtheBuilderhasthecapability，knowledgeandskillstobuildandsupplythesame. 2)TheBuilderhasagreedtoconstruct，equip，fit-out，testanddelivertheYachttotheBuyersstatedrequirementsandspecification，whichtheBuyerhasagreedtoacceptuponthetermsandconditionshereinafterspecified： NowthereforethePartieshereto

3、haveagreedanddoherebyagreeasfollows： ARTICLEI-INTERPRETATION 1)InthisContractthefollowingwordsandexpressionsshallhavethemeaningherebyascribedtothem，exceptwherethecontextotherwiseadmitsorrequires： “BankingDays”ShallmeandaysuponwhichHongKongclearingbanksarecustomarilyopenforbusiness. “theBuildersClari

4、fications”ShallmeanthedocumentssoentitledformingpartofthisContractandsetoutasAnnexeshereto;(SeealsoItem(2)ofthisArticle.) “BuyersRepresentative(s)”ShallmeansuchpersonsnotifiedfromtimetotimebytheBuyerashavingauthoritytoactfortheBuyer，theextentofsuchauthoritybeingsetoutinthenotice; “ItemsofBuyerssuppl

5、y”ShallmeananyitemofequipmentandstoresfortheYachtorderedbytheBuyerdirectfromthemanufacturerorthesupplier，forincorporationintheYachtbytheBuilder; “ItemsofBuilderssupply”ShallmeananyitemofequipmentandstoresfortheYachtorderedbytheBuilderdirectfromthemanufacturerorthesupplier，forincorporationintheYacht;

6、 “theCertifying/SurveyBody”Shallmeanthebodyresponsibleforthesurveyandcertificationoftheyachttotherequirementsofthebuyer. “theContract”Shallmean(a)thisContract，and(b)theattachedAnnexesandschedulemoreparticularlydescribedbelow. “theContractDeliveryDate”Shallmeannolaterthan_; “theContractMasterProgramm

7、e”ShallmeantheprogrammeforconstructionoftheYacht，setoutinAnnexD; “theContractPrice”ShallmeanthepricestipulatedinArticleVfortheYacht，YardNumber005; “theYacht”ShallmeantheyachtthesubjectofthisContractandgenerallyasdescribedinArticleII，withallthemachinery，apparatus，outfit，materials，andequipmentappurten

8、antthereto，butexcludingtheitemsofBuyerssupply.“theBoatyard”ShallmeanAAAsYachtCompany，Xinhui，China. “theDesignSpecifications”Shallmeanthespecifications，designs，plansanddrawings，setoutinScheduleA，preparedandsignedbytheBuyer，identifiedasformingpartofthisContract，andincludingsuchrevisedorsupplementalspe

9、cifications，plansanddrawingsasmaysubsequentlybeagreedbetweentheBuyerandtheBuilderPROVIDEDthat(i)inthecaseofanyinconsistencybetweenanyArticleorparagraphofthisContractandtheDesignSpecifications，thisContractshallprevail，(ii)inthecaseofanyinconsistencybetweentheDesignSpecificationsandaplanordrawing，theD

10、esignSpecificationshallprevail，and(iii)inthecaseofanyinconsistencybetweenoneplanordrawingandanotherplanordrawing，thelaterindateshallprevail; ScheduleAShallmeantheagreedscheduleofdrawings “AnnexA”Shallmeanthelistofmaterials，componentsandequipmentdefiningacompletedyacht; AnnexBShallmeantheagreedweldqu

11、alityprocedures “AnnexC”ShallmeantheagreedShotBlasting，Fairing，PaintingandfoamingSpecifications AnnexD“Shallmeantheagreedproductionschedulemasterprogram. “Specified”ShallmeanstipulatedinthespecificationsandAnnexA; “Supplier”Shallmeananyperson，firmorcompany，whichhasenteredintoacontractwiththeBuilderf

12、orthesupplyofmaterials，machinery，servicesorequipment(otherthanitemsofBuyerssupply)fortheyacht; TheIndex，Articleandparagraphheadings，areinsertedforconvenienceonlyandshallnotaffecttheconstructionofthisContract. Wordsimportingthesingularshallincludethepluralandviceversa. 2)ListofBuildersclarifications，

13、notcoveredinAnnexAdocument： “CradlesforTransport”ThesupplyofaCradleforshipmentisexcludedfromthisContract. “Dressing/SteppingtheMast”ThedressingandsteppingofmastfortheYachtisincludedintheBuilderssupply. “Storage”TheBuilderwillarrangesecurestorageashorefortheYachtattheBoatyardbetweencompletionofbuilda

14、ndhandoveratdelivery. “Fabrication”TheBuilderwillsupplysteelinpre-cutformwithatestcertificateinaccordancewiththebuildersproductionandqualityplan. “Welding”TheContractisbasedonNDT(nondestructivetesting)beingconductedtothestandardsrequiredbyDetNorskeVeritasclassRulesforyachtandSmallCraft，including100%

15、visualexamination.Radiographywillbecompletedwhereappropriate，attheBuilderscost. AllweldingwillbecarriedoutinaccordancewiththequalityplanandISOweldproceduresapprovedbythebuyersrepresentativeandwillbeingeneralaccordancewithDetNorskeVeritasrequirements. “ShotBlasting”ShotBlastingoftheYachtwillbeinaccor

16、dancewiththeagreedspecificationattachedinAnnexC. “Insulation”TheinsulationoftheYachtwillbeinaccordancewiththeagreedspecificationattachedinAnnexC. “FairingandPainting”ThefairingandpaintingoftheYachtwillbeinaccordancewiththeCoatingsSpecificationattachedinAnnexC. “Equipment”Theresponsibilityforthesuppl

17、yofmaterialsandequipmentwillbeasdefinedandagreedintheComponentsList(AnnexA)fortheYacht. “QualityPlanDocumentation”AnagreedqualityplanwillbeissuedcoveringallaspectsoftheYachtsconstruction，whichwillinclude： a)HullDeckFabrication b)BlastandPrime c)FairandPaint d)ElectricalandmechanicalEngineering e)Fit

18、-Out ARTICLEIIDESCRIPTION 1)TheYachttobeconstructedunderthisContractisaMotorYachtofapproximately20.00metreslengthoveralldesignedbyThanosCondylis，asdescribedinthespecifications，withthefollowingmainparticulars： ApproximateDimensions Lengthoverallabout20.00metres Lengthonthewaterlineabout18.03metres Be

19、am(max)about5.75metres Draftabout1.77metres 2)AdistinctiveyardNumbershallbeplaceduponeachYachtandhermaterialsandoutfit，duringconstruction.TheYardNumberoftheYachtshallbeKYC-005. ARTICLEIIICONSTRUCTION，MATERIALSANDINSPECTION 1)TheYachtandhermachinery，outfit，equipment，materialsandworkmanshipshallbeinac

20、cordancewiththisContractandtheDesignSpecifications. 2)Inprinciplethebuilderwillsupplyallmaterial，componentsandequipmentfortheyachtassetoutinAnnexeA.Anyadditionalmaterial，componentsorequipmentprocuredbythebuilderwillbebilledtothebuyeratdeliveredcostplus15%.Howeverthebuildermustnotifythebuyerinwriting

21、priortoprocurementofthecostandquantityofanyitemsforwhichthebuilderintendstobebilledtothebuyersaccount. 3)Intheeventofanydelayofdeliveryofmaterial，componentsandequipmentwhichareitemsofBuyerssupply，bythebuyerresultingindelaystotheproductionschedulesetoutinAnnexeE，thecontractdeliveryperiodmaybeextended

22、bytheamountofthedelay.Providedalwaysthatthebuilderwillusehisbestendeavourstominimisethedelaysocausedbyre-schedulingworktoutilisethematerial，componentsandequipmentthathavealreadybeendeliveredtothebuilder. 4)IfanyspecifiedmaterialsarenotavailablewhenrequiredforincorporationontheYacht，theBuildershallbe

23、atlibertytouseothersuitablematerialsinsubstitutiontherefore，subjecttotheapprovaloftheBuyer，whichapprovalshallnotbeunreasonablywithheld.AnyadjustmenttotheContract，DeliveryDateorDesignSpecificationresultingfromsuchsubstitutionshallbemadeinaccordancewiththeprovisionsofArticleIV. 5)Duringconstructionoft

24、heYacht，theBuilderwillpermittheBuyersRepresentativetoattendthetestsspecifiedinArticleVIIIandtohaveaccesstotheBoatyardduringordinaryworkinghourswhileworkisproceedingontheYacht.ThebuildermustgivereasonablenoticeofsuchteststotheBuyersRepresentativeinwriting.TheBuilderwilluseitsreasonableendeavourstoarr

25、angefortheBuyersRepresentativetohaveaccesstothepremisesoftheBuilderssubcontractorsforthepurposeofinspectingmaterialsandworkmanship.If，duringconstruction，theBuyerorhisRepresentativeallegesanydefectoromissionintheYachttheyshall，ifrequiredbytheBuilder，immediatelyspecifythesameinwriting.IftheBuilderagre

26、esthattherehasbeenadefecttheBuilderwillatitsowncost，beforedelivery，rectifythesame. 6)ThebuildwillbesubjecttoregularinspectionsbytheBuyer.Accommodation，mealsandentertainmentinChinafortheBuyersstaffthatarepaidforbythebuilder，willbeinvoicedtothebuyeratcost.Thebuyerwillcoverhisowntravelcoststoandfromthe

27、boatyard. 7)TheBuilderundertakestoprovideasuitablyqualified(Englishspeaking)MarineEngineertoactasaliaisonpersonwiththeBuyerthroughoutthedurationofthiscontract. 8)WherepracticaltheBuildershalltakeandmakeavailabletotheBuyer，digitalphotographicevidenceofallconstruction，paintingandfitoutstagesduringtheY

28、achtsbuild.SuchdigitalinformationwillbesenttotheBuyerortheBuyersRepresentativebyelectronicmeansandatsuchfrequencytoallowtheBuyerortheBuyersrepresentativetomonitorthecourseoftheYachtsbuild. 9)Thematerials，componentsandequipmentfortheYacht(asdetailedandagreedontheComponentSupplyListinAnnexA)thatarethe

29、BuilderssupplywillbeshippedtotheBoatyardbythebuilderathisexpense.ShippingcostsofItemsofBuyerssupplywillbeattheBuyerscosttogetherwithassociatedexportandimportprocedures，dutiesandinsurance. 10)TheBuilderspremisesshallhavethenecessaryfacilitiesandequipmenttoconstructtheYachttotheagreedstandardsandspeci

30、fications.Thefacilitiesandequipmentwillincludeshotblastingequipment，airlesssprayequipment，boltweldingcapacitor，heavydutypulseMIGweldingequipmentandenvironmentalmonitoringequipmentcapableofprovidingarecordoftemperature，humidityanddewpoint. ARTICLEIVMODIFICATIONS 1)AtanytimepriortoDeliveryoftheYachtth

31、eBuyerthroughtheBuyersRepresentativemayrequest，inwriting，modificationsoradditionstoordeletionsfromtheDesignSpecificationsandScheduleA. TheBuildershallnotbeobligedtoaccedetoanyrequestunderthisparagraph(1)unless： i)ItisreasonableandpracticablefortheBuildertodosohavingregardtothestageofconstructionwhic

32、htheYachthasreachedandtotheBuildersBoatyardprogramme; ii)ThePartiesshallfirstagreeinwritinginrelationtosuchmodifications，additions，ordeletions： (1)AnyincreaseordecreaseintheContractPriceandvariationofthepaymenttermsfortheYacht; (2)AnyextensionoftheContractDeliveryDate; (3)Anyalterationofthetermsofth

33、isContractortheDesignSpecificationorAnnexA. ProvidedthattheBuildershallbeentitledtocontinueproductioninaccordancewiththeDesignSpecificationsandScheduleAuntilagreementhasbeenreachedasprovidedinthissub-paragraphii)。 2)TheBuildershallnotmakechangesinconstructionaldetailsormaterialsoftheYachtwithoutthea

34、greementoftheBuyerinwriting. ARTICLEVPRICEANDTERMSOFPAYMENT TheBuilderhasagreedtocompletetheconstruction，outfitanddeliveryoftheYachtfortheBuyeronthefollowingterms. 1.ThecontractpricefortheyachtwillbeUS$850，000(EighthundredandfiftythousandUSdollars) 2.PaymentofthefirmpricefortheYacht，shall，subjecttop

35、aragraph3)hereofbemadeininstalmentsfromtheBuyertotheBuilderasfollows： InstalmentEvent a)InitialdepositofUS$127，500(onehundredandtwentyseventhousandfivehundred)payableonthesigninghereof. b)UponarrivalofallstructuralbuildingmaterialsintheBoatyard，US$127，500(onehundredandtwentyseventhousandfivehundred)

36、 c)OnsatisfactorycompletionoftheYachtsstructuralsteelworkUS$127，500(onehundredandtwentyseventhousandfivehundred) d)OnsatisfactorycompletionoftheYachtsinteriorpaintingandinsulationstages，substantialcompletionoftheYachtsinteriorfurniturebuiltofftheYacht，andatthestartoffitout，US$127，500(onehundredandtw

37、entyseventhousandfivehundred) e)OnsatisfactorycompletionoftheYachtsexteriorpaintingstages，US$127，500(onehundredandtwentyseventhousandfivehundred)。 f)OnsatisfactoryinstallationoftheYachtsengines，generatorsandmainengineroomsystems，togetherwithinstallationoftheflybridgestructure，US$127，500(onehundredan

38、dtwentyseventhousandfivehundred)。 g)OndeliveryandfinalacceptanceoftheYachtbytheBuyerUS$85，000(Eightyfivethousand)。 2)TheBuildershall，bynotlessthanfourteendaysnoticeinwriting，advisetheBuyerofthedateuponwhicheachinstalmentoftheContractPriceshallbecomepayable. (i)SubjecttotheBuilderscompliancewiththeno

39、ticeprovisionsoftheforegoingparagraph，eachofthesaidinstalmentsshallbecomedueandpayableupontheappropriateInstalmentEvent，subjecttoreceiptbytheBuyeroftheBuildersinvoicethereof，accompaniedbya“StageCertificate”IssuedbytheBuildercertifyingthattheappropriateInstalmentEventhastakenplace. (ii)PriortoeachIns

40、talmentEvent，theBuildershallnotifytheBuyer，inwriting，oftheamountofanyreductionin，oradditionto，theContractPrice，inaccordancewiththetermsofthisContract.TheinstalmentdueontheforthcomingInstalmentEventshallbeadjustedtotakeaccountofanysuchamendmenttotheContractPrice. 4)TheamountofeachinstalmentoftheContr

41、actPriceshallbepaiddirecttoAAAsYachtCompanyLimited，A/Cnumber0842-5094atCitibankHongKong，(RoutedviaCitibankNY，ABA#021000089，A/CCitibankHK，CHIPSUID030339，SwiftCodeCITIHKHX)fortheaccountoftheBuilderwithinfourteenBankingdaysoftheduedateforpaymentandifnotsopaidshall(withoutprejudicetoanyotherrightsoftheB

42、uilderinrespectofnon-payment)bearinterestfromtheduedateuntilpaymentatHKBaseRateplus4%. 5)IntheeventoftheBuilderissuingaStageCertificateunder(3)(i)andtheBuyerconsideringthattheBuildershouldnothaveissuedthesamebecausetheInstalmentEventshallnothavebeenreached，or，ifreached，thattheworkormaterialsexecuted

43、orincorporatedbytheBuilderintheYachtwasnotinaccordancewiththerequirementsofthisContractorinaccordancewithgoodengineeringpracticethentheBuyermaygiveaCounterNoticespecifyingthemattersbyreasonwhereoftheBuyercontendsthattheStageCertificateshouldnothavebeenissued，andthereuponifthePartiesdonotagreethenthe

44、mattershallbereferredforresolutiontoanarbitratortobeagreedbytheParties. ARTICLEVIPROPERTY 1)TheYachtassheisconstructed，andallmachineryandequipmentandmaterials，whetherwhollyorpartiallyfinishedorunfinished，fromtimetotimeappropriatedorintendedfortheYachtintheBoatyardorelsewhere，shallbeandremaintheabsol

45、utepropertyoftheBuyer(andshallbeattheriskoftheBuilder)andshallbewithintheownershipanddispositionoftheBuyer.Thebuildershall，however，havealienuponthecraft，machineryandequipmentandmaterialsforrecoveryofallsumsdueunderthetermsofthisagreementoranyvariationormodificationthereof. 2)Thebuilderwillco-operate

46、withandgiveallreasonableassistancetothebuyerinrelationtothemeasurementandregistrationoftheyacht. ARTICLEVIIINSURANCE 1)DuringtheperiodofconstructionunderthisContractanduntildeliveryoftheYachtinaccordancewithArticleIX，theYachtandallmaterials，machineryandequipmentallocatedfortheconstructionthereofanda

47、llitemsofBuyerssupplyactuallydeliveredtotheBuildershallbeattheriskoftheBuilder，whoshallatitsownexpensekeepthesameinsuredforasumnotlessthan110%oftheaggregatesumofthecontractpriceplusthevalueoftheitemsofBuyersSupplywithanapprovedinsurerorinsurersandinrespectofandagainstallordinaryyachtbuildingrisks，be

48、ingfire，storm，theft，flood，lightening，explosion，docking，undocking，launching，salvage，removalofwreck，strikes，civilcommotion，maliciousdamage，sabotageandvandalism. 2)BuyerssupplyitemswillbedeliveredtotheBuilderatXinhuiport，atwhichpointtheriskfortheitemswillpasstotheBuilder. 3)Acertificateofinsuranceshowi

49、ngthatthenecessarycoverisinplaceshallbedeliveredtotheBuyerifsorequired. 4)Intheeventofanactual，constructive，compromisedorarrangedtotallossoftheYachtpriortoDeliveryofthesametotheBuyer，eithertheBuyerortheBuildershallbeentitledtoterminatethisContractbyservingupontheBuilderortheBuyer，asthecasemaybe，writ

50、tennoticeoftermination，suchnoticetobedispatchedwithinfourteendaysofthedateuponwhichtheinsurersacceptthattheYachthasbecomeanactualconstructive，compromisedorarrangedtotalloss. 5)IntheeventofanylossordamagebeingsustainedbytheYachtpriortodeliverywhichdoesnotconstituteanactual，constructive，compromisedora

51、rrangedtotalloss，theBuildershallrepairandmakegoodthatlossordamage(hereinafterreferredtoasapartialloss)atthecostoftheBuilderandwhetherornotsufficientinsurancefundsmaybeavailable. 6)Theproceedsoftheinsurancereferredtoinparagraph(1)ofthisArticleshallbedealtwithasfollows： Iftheinsuranceproceedsareinresp

52、ectofanactualorconstructiveorcompromisedorarrangedtotallossthentheyshallbeappliedfirstlyinreimbursementtotheBuyeroftheamountofallpayments，ifany，madebytheBuyertotheBuilderunderthisContractandinreimbursementofthevalueofanyitemsofBuyersSupplyand，secondly，inpaymentofanybalancetotheBuilder. 7)FollowingDe

53、liveryoftheYacht，theBuyershallacceptallriskintheYachtincludingallmaterials，machineryandequipmentthereof，andtheBuyershallatitsownexpenseberesponsibleforallinsurancerisksthereafter. ARTICLEVIIITESTS 1)PriortodeliveryoftheYachttotheBuyer，theBuildershallcarryoutthetestsprovidedforintheQualityDocumentati

54、on，includingbutnotlimitedto：a)Noiseandvibration b)Hoseandpressuretests c)MotoringtrialswithintheconfinesoftheWestRiver. 2)TheBuildershallgivetheBuyerreasonablewrittennoticeofthetimeandplaceatwhicheachofthetestsistobecarriedout. ARTICLEIXDELIVERY 1)TheYachtshallbedeliveredtotheBuyerbytheBuilderatamut

55、uallyagreedplaceinHongKongHarbouronorbeforetheContractDeliveryDate，orasthesaidContractDeliveryDatesmayhavebeenextendedinaccordancewiththeprovisionsofArticlesIIIorIV. 2)ProvidedthatallinstalmentsandothersumsassetoutandcontainedinArticleVarefullypaidthentheDeliveryoftheYachtshallbeeffectedforthwithbyt

56、heconcurrentsignaturebytheBuyerandtheBuilderofaCertificateofDeliveryandAcceptanceacknowledgingDeliveryoftheYachtbytheBuilderandacceptancethereofbytheBuyerprovidedthatthesignaturethereofbytheBuyershallnotoperateasawaiverofanyrightswhichtheBuyermightotherwisehaveinrespectoftheYacht.3)Upondelivery，ther

57、iskintheYachtdeliveredshallpasstotheBuyer，itbeingexpresslyunderstoodthat，untilDeliveryiseffected，theYachtandtheirequipmentareattheentireriskoftheBuilder. 4)TheBuyershalltakepossessionoftheYachtimmediatelyuponDelivery. 5)IftheBuilderisunabletotendertheYachtforDeliverywithinsixtydays(thePeriodofGrace)

58、oftheContractDeliveryDate，theBuildershallpaytotheBuyerasagreedandliquidateddamagesthesumofUS$100foreachdaytheYachtisnotsotenderedforthefirstthirtydayperiodofdelayaftertheperiodofgrace，thenUS$250foreachsubsequentdaytheYachtisnotsotenderedanduntilsatisfactorydeliveryismade. 6)IfanyitemsontheYachtareincompletewhenthatYachtisotherwisereadyfordeliveryandth