YACHT BUILD AGREEMENT游艇建造协议

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YACHTBUILDAGREEMENT游艇建造协议

DATED：______________________

between

______‘sYachtCompanyLimited，HongKong.（Hereinafterreferredtoas“theBuilder”）

and

BBBCC，Vietnam，（Hereinafterreferredtoas“theBuyer”）

WHEREAS：

1）TheBuyerwishestoacquireaAAA‘sCape65TrawlerYacht（theyacht）designedbyThanosCondylis，andbuilttotheBuyer’sstatedrequirementsandspecification，andtheBuilderhasthecapability，knowledgeandskillstobuildandsupplythesame.

2）TheBuilderhasagreedtoconstruct，equip，fit-out，testanddelivertheYachttotheBuyer‘sstatedrequirementsandspecification，whichtheBuyerhasagreedtoacceptuponthetermsandconditionshereinafterspecified：

NowthereforethePartiesheretohaveagreedanddoherebyagreeasfollows：

ARTICLEI-INTERPRETATION

1）InthisContractthefollowingwordsandexpressionsshallhavethemeaningherebyascribedtothem，exceptwherethecontextotherwiseadmitsorrequires：

“BankingDays”ShallmeandaysuponwhichHongKongclearingbanksarecustomarilyopenforbusiness.

“theBuilder‘sClarifications”ShallmeanthedocumentssoentitledformingpartofthisContractandsetoutasAnnexeshereto；（SeealsoItem（2）ofthisArticle.）

“Buyer‘sRepresentative（s）”ShallmeansuchpersonsnotifiedfromtimetotimebytheBuyerashavingauthoritytoactfortheBuyer，theextentofsuchauthoritybeingsetoutinthenotice；

“ItemsofBuyer‘ssupply”ShallmeananyitemofequipmentandstoresfortheYachtorderedbytheBuyerdirectfromthemanufacturerorthesupplier，forincorporationintheYachtbytheBuilder；

“ItemsofBuilder‘ssupply”ShallmeananyitemofequipmentandstoresfortheYachtorderedbytheBuilderdirectfromthemanufacturerorthesupplier，forincorporationintheYacht；

“theCertifying/SurveyBody”Shallmeanthebodyresponsibleforthesurveyandcertificationoftheyachttotherequirementsofthebuyer.

“theContract”Shallmean（a）thisContract，and（b）theattachedAnnexesandschedulemoreparticularlydescribedbelow.

“theContractDeliveryDate”Shallmeannolaterthan________；

“theContractMasterProgramme”ShallmeantheprogrammeforconstructionoftheYacht，setoutinAnnexD；

“theContractPrice”ShallmeanthepricestipulatedinArticleVfortheYacht，YardNumber005；

“theYacht”ShallmeantheyachtthesubjectofthisContractandgenerallyasdescribedinArticleII，withallthemachinery，apparatus，outfit，materials，andequipmentappurtenantthereto，butexcludingtheitemsofBuyer‘ssupply.“theBoatyard”ShallmeanAAA‘sYachtCompany，Xinhui，China.

“theDesignSpecifications”Shallmeanthespecifications，designs，plansanddrawings，setoutinScheduleA，preparedandsignedbytheBuyer，identifiedasformingpartofthisContract，andincludingsuchrevisedorsupplementalspecifications，plansanddrawingsasmaysubsequentlybeagreedbetweentheBuyerandtheBuilderPROVIDEDthat（i）inthecaseofanyinconsistencybetweenanyArticleorparagraphofthisContractandtheDesignSpecifications，thisContractshallprevail，（ii）inthecaseofanyinconsistencybetweentheDesignSpecificationsandaplanordrawing，theDesignSpecificationshallprevail，and（iii）inthecaseofanyinconsistencybetweenoneplanordrawingandanotherplanordrawing，thelaterindateshallprevail；

ScheduleAShallmeantheagreedscheduleofdrawings

“AnnexA”Shallmeanthelistofmaterials，componentsandequipmentdefiningacompletedyacht；

AnnexBShallmeantheagreedweldqualityprocedures

“AnnexC”ShallmeantheagreedShotBlasting，Fairing，PaintingandfoamingSpecifications

AnnexD“Shallmeantheagreedproductionschedulemasterprogram.

“Specified”ShallmeanstipulatedinthespecificationsandAnnexA；

“Supplier”Shallmeananyperson，firmorcompany，whichhasenteredintoacontractwiththeBuilderforthesupplyofmaterials，machinery，servicesorequipment（otherthanitemsofBuyer‘ssupply）fortheyacht；

TheIndex，Articleandparagraphheadings，areinsertedforconvenienceonlyandshallnotaffecttheconstructionofthisContract.

Wordsimportingthesingularshallincludethepluralandviceversa.

2）ListofBuilder‘sclarifications，notcoveredinAnnexAdocument：

“CradlesforTransport”ThesupplyofaCradleforshipmentisexcludedfromthisContract.

“Dressing/SteppingtheMast”ThedressingandsteppingofmastfortheYachtisincludedintheBuilder‘ssupply.

“Storage”TheBuilderwillarrangesecurestorageashorefortheYachtattheBoatyardbetweencompletionofbuildandhandoveratdelivery.

“Fabrication”TheBuilderwillsupplysteelinpre-cutformwithatestcertificateinaccordancewiththebuilder‘sproductionandqualityplan.

“Welding”TheContractisbasedonNDT（nondestructivetesting）beingconductedtothestandardsrequiredbyDetNorskeVeritasclassRulesforyachtandSmallCraft，including100%visualexamination.Radiographywillbecompletedwhereappropriate，attheBuilder‘scost.

AllweldingwillbecarriedoutinaccordancewiththequalityplanandISOweldproceduresapprovedbythebuyer‘srepresentativeandwillbeingeneralaccordancewithDetNorskeVeritasrequirements.

“ShotBlasting”ShotBlastingoftheYachtwillbeinaccordancewiththeagreedspecificationattachedinAnnexC.

“Insulation”TheinsulationoftheYachtwillbeinaccordancewiththeagreedspecificationattachedinAnnexC.

“FairingandPainting”ThefairingandpaintingoftheYachtwillbeinaccordancewiththeCoatingsSpecificationattachedinAnnexC.

“Equipment”TheresponsibilityforthesupplyofmaterialsandequipmentwillbeasdefinedandagreedintheComponentsList（AnnexA）fortheYacht.

“QualityPlanDocumentation”AnagreedqualityplanwillbeissuedcoveringallaspectsoftheYacht‘sconstruction，whichwillinclude：

a）HullDeckFabrication

b）BlastandPrime

c）FairandPaint

d）ElectricalandmechanicalEngineering

e）Fit-Out

ARTICLEII–DESCRIPTION

1）TheYachttobeconstructedunderthisContractisaMotorYachtofapproximately20.00metreslengthoveralldesignedbyThanosCondylis，asdescribedinthespecifications，withthefollowingmainparticulars：

ApproximateDimensions

Lengthoverallabout20.00metres

Lengthonthewaterlineabout18.03metres

Beam（max）about5.75metres

Draftabout1.77metres

2）AdistinctiveyardNumbershallbeplaceduponeachYachtandhermaterialsandoutfit，duringconstruction.TheYardNumberoftheYachtshallbeKYC-005.

ARTICLEIII–CONSTRUCTION，MATERIALSANDINSPECTION

1）TheYachtandhermachinery，outfit，equipment，materialsandworkmanshipshallbeinaccordancewiththisContractandtheDesignSpecifications.

2）Inprinciplethebuilderwillsupplyallmaterial，componentsandequipmentfortheyachtassetoutinAnnexeA.Anyadditionalmaterial，componentsorequipmentprocuredbythebuilderwillbebilledtothebuyeratdeliveredcostplus15%.Howeverthebuildermustnotifythebuyerinwritingpriortoprocurementofthecostandquantityofanyitemsforwhichthebuilderintendstobebilledtothebuyersaccount.

3）Intheeventofanydelayofdeliveryofmaterial，componentsandequipmentwhichareitemsofBuyer‘ssupply，bythebuyerresultingindelaystotheproductionschedulesetoutinAnnexeE，thecontractdeliveryperiodmaybeextendedbytheamountofthedelay.Providedalwaysthatthebuilderwillusehisbestendeavourstominimisethedelaysocausedbyre-schedulingworktoutilisethematerial，componentsandequipmentthathavealreadybeendeliveredtothebuilder.

4）IfanyspecifiedmaterialsarenotavailablewhenrequiredforincorporationontheYacht，theBuildershallbeatlibertytouseothersuitablematerialsinsubstitutiontherefore，subjecttotheapprovaloftheBuyer，whichapprovalshallnotbeunreasonablywithheld.AnyadjustmenttotheContract，DeliveryDateorDesignSpecificationresultingfromsuchsubstitutionshallbemadeinaccordancewiththeprovisionsofArticleIV.

5）DuringconstructionoftheYacht，theBuilderwillpermittheBuyer‘sRepresentativetoattendthetestsspecifiedinArticleVIIIandtohaveaccesstotheBoatyardduringordinaryworkinghourswhileworkisproceedingontheYacht.ThebuildermustgivereasonablenoticeofsuchteststotheBuyer’sRepresentativeinwriting.TheBuilderwilluseitsreasonableendeavourstoarrangefortheBuyer‘sRepresentativetohaveaccesstothepremisesoftheBuilderssubcontractorsforthepurposeofinspectingmaterialsandworkmanship.If，duringconstruction，theBuyerorhisRepresentativeallegesanydefectoromissionintheYachttheyshall，ifrequiredbytheBuilder，immediatelyspecifythesameinwriting.IftheBuilderagreesthattherehasbeenadefecttheBuilderwillatitsowncost，beforedelivery，rectifythesame.

6）ThebuildwillbesubjecttoregularinspectionsbytheBuyer.Accommodation，mealsandentertainmentinChinafortheBuyer‘sstaffthatarepaidforbythebuilder，willbeinvoicedtothebuyeratcost.Thebuyerwillcoverhisowntravelcoststoandfromtheboatyard.

7）TheBuilderundertakestoprovideasuitablyqualified（Englishspeaking）MarineEngineertoactasaliaisonpersonwiththeBuyerthroughoutthedurationofthiscontract.

8）WherepracticaltheBuildershalltakeandmakeavailabletotheBuyer，digitalphotographicevidenceofallconstruction，paintingandfitoutstagesduringtheYacht‘sbuild.SuchdigitalinformationwillbesenttotheBuyerortheBuyer’sRepresentativebyelectronicmeansandatsuchfrequencytoallowtheBuyerortheBuyer‘srepresentativetomonitorthecourseoftheYacht’sbuild.

9）Thematerials，componentsandequipmentfortheYacht（asdetailedandagreedontheComponentSupplyListinAnnexA）thataretheBuilder‘ssupplywillbeshippedtotheBoatyardbythebuilderathisexpense.ShippingcostsofItemsofBuyer’ssupplywillbeattheBuyer‘scosttogetherwithassociatedexportandimportprocedures，dutiesandinsurance.

10）TheBuilder‘spremisesshallhavethenecessaryfacilitiesandequipmenttoconstructtheYachttotheagreedstandardsandspecifications.Thefacilitiesandequipmentwillincludeshotblastingequipment，airlesssprayequipment，boltweldingcapacitor，heavydutypulseMIGweldingequipmentandenvironmentalmonitoringequipmentcapableofprovidingarecordoftemperature，humidityanddewpoint.

ARTICLEIV–MODIFICATIONS

1）AtanytimepriortoDeliveryoftheYachttheBuyerthroughtheBuyersRepresentativemayrequest，inwriting，modificationsoradditionstoordeletionsfromtheDesignSpecificationsandScheduleA.

TheBuildershallnotbeobligedtoaccedetoanyrequestunderthisparagraph（1）unless：

i）ItisreasonableandpracticablefortheBuildertodosohavingregardtothestageofconstructionwhichtheYachthasreachedandtotheBuilder‘sBoatyardprogramme；

ii）ThePartiesshallfirstagreeinwritinginrelationtosuchmodifications，additions，ordeletions：

（1）AnyincreaseordecreaseintheContractPriceandvariationofthepaymenttermsfortheYacht；

（2）AnyextensionoftheContractDeliveryDate；

（3）AnyalterationofthetermsofthisContractortheDesignSpecificationorAnnexA.

ProvidedthattheBuildershallbeentitledtocontinueproductioninaccordancewiththeDesignSpecificationsandScheduleAuntilagreementhasbeenreachedasprovidedinthissub-paragraphii）。

2）TheBuildershallnotmakechangesinconstructionaldetailsormaterialsoftheYachtwithouttheagreementoftheBuyerinwriting.

ARTICLEV–PRICEANDTERMSOFPAYMENT

TheBuilderhasagreedtocompletetheconstruction，outfitanddeliveryoftheYachtfortheBuyeronthefollowingterms.

1.ThecontractpricefortheyachtwillbeUS$850，000（EighthundredandfiftythousandUSdollars）

2.PaymentofthefirmpricefortheYacht，shall，subjecttoparagraph3）hereofbemadeininstalmentsfromtheBuyertotheBuilderasfollows：

InstalmentEvent

a）InitialdepositofUS$127，500（onehundredandtwentyseventhousandfivehundred）payableonthesigninghereof.

b）UponarrivalofallstructuralbuildingmaterialsintheBoatyard，US$127，500（onehundredandtwentyseventhousandfivehundred）

c）OnsatisfactorycompletionoftheYacht‘sstructuralsteelworkUS$127，500（onehundredandtwentyseventhousandfivehundred）

d）OnsatisfactorycompletionoftheYacht‘sinteriorpaintingandinsulationstages，substantialcompletionoftheYacht’sinteriorfurniturebuiltofftheYacht，andatthestartoffitout，US$127，500（onehundredandtwentyseventhousandfivehundred）

e）OnsatisfactorycompletionoftheYacht‘sexteriorpaintingstages，US$127，500（onehundredandtwentyseventhousandfivehundred）。

f）OnsatisfactoryinstallationoftheYacht‘sengines，generatorsandmainengineroomsystems，togetherwithinstallationoftheflybridgestructure，US$127，500（onehundredandtwentyseventhousandfivehundred）。

g）OndeliveryandfinalacceptanceoftheYachtbytheBuyerUS$85，000（Eightyfivethousand）。

2）TheBuildershall，bynotlessthanfourteendaysnoticeinwriting，advisetheBuyerofthedateuponwhicheachinstalmentoftheContractPriceshallbecomepayable.

（i）SubjecttotheBuilder‘scompliancewiththenoticeprovisionsoftheforegoingparagraph，eachofthesaidinstalmentsshallbecomedueandpayableupontheappropriateInstalmentEvent，subjecttoreceiptbytheBuyeroftheBuilder’sinvoicethereof，accompaniedbya“StageCertificate”IssuedbytheBuildercertifyingthattheappropriateInstalmentEventhastakenplace.

（ii）PriortoeachInstalmentEvent，theBuildershallnotifytheBuyer，inwriting，oftheamountofanyreductionin，oradditionto，theContractPrice，inaccordancewiththetermsofthisContract.TheinstalmentdueontheforthcomingInstalmentEventshallbeadjustedtotakeaccountofanysuchamendmenttotheContractPrice.

4）TheamountofeachinstalmentoftheContractPriceshallbepaiddirecttoAAA‘sYachtCompanyLimited，A/Cnumber0842-5094atCitibankHongKong，（RoutedviaCitibankNY，ABA#021000089，A/CCitibankHK，CHIPSUID030339，SwiftCodeCITIHKHX）fortheaccountoftheBuilderwithinfourteenBankingdaysoftheduedateforpaymentandifnotsopaidshall（withoutprejudicetoanyotherrightsoftheBuilderinrespectofnon-payment）bearinterestfromtheduedateuntilpaymentatHKBaseRateplus4%.

5）IntheeventoftheBuilderissuingaStageCertificateunder（3）（i）andtheBuyerconsideringthattheBuildershouldnothaveissuedthesamebecausetheInstalmentEventshallnothavebeenreached，or，ifreached，thattheworkormaterialsexecutedorincorporatedbytheBuilderintheYachtwasnotinaccordancewiththerequirementsofthisContractorinaccordancewithgoodengineeringpracticethentheBuyermaygiveaCounterNoticespecifyingthemattersbyreasonwhereoftheBuyercontendsthattheStageCertificateshouldnothavebeenissued，andthereuponifthePartiesdonotagreethenthemattershallbereferredforresolutiontoanarbitratortobeagreedbytheParties.

ARTICLEVI–PROPERTY

1）TheYachtassheisconstructed，andallmachineryandequipmentandmaterials，whetherwhollyorpartiallyfinishedorunfinished，fromtimetotimeappropriatedorintendedfortheYachtintheBoatyardorelsewhere，shallbeandremaintheabsolutepropertyoftheBuyer（andshallbeattheriskoftheBuilder）andshallbewithintheownershipanddispositionoftheBuyer.Thebuildershall，however，havealienuponthecraft，machineryandequipmentandmaterialsforrecoveryofallsumsdueunderthetermsofthisagreementoranyvariationormodificationthereof.

2）Thebuilderwillco-operatewithandgiveallreasonableassistancetothebuyerinrelationtothemeasurementandregistrationoftheyacht.

ARTICLEVII–INSURANCE

1）DuringtheperiodofconstructionunderthisContractanduntildeliveryoftheYachtinaccordancewithArticleIX，theYachtandallmaterials，machineryandequipmentallocatedfortheconstructionthereofandallitemsofBuyer‘ssupplyactuallydeliveredtotheBuildershallbeattheriskoftheBuilder，whoshallatitsownexpensekeepthesameinsuredforasumnotlessthan110%oftheaggregatesumofthecontractpriceplusthevalueoftheitemsofBuyer’sSupplywithanapprovedinsurerorinsurersandinrespectofandagainstallordinaryyachtbuildingrisks，beingfire，storm，theft，flood，lightening，explosion，docking，undocking，launching，salvage，removalofwreck，strikes，civilcommotion，maliciousdamage，sabotageandvandalism.

2）BuyerssupplyitemswillbedeliveredtotheBuilderatXinhuiport，atwhichpointtheriskfortheitemswillpasstotheBuilder.

3）AcertificateofinsuranceshowingthatthenecessarycoverisinplaceshallbedeliveredtotheBuyerifsorequired.

4）Intheeventofanactual，constructive，compromisedorarrangedtotallossoftheYachtpriortoDeliveryofthesametotheBuyer，eithertheBuyerortheBuildershallbeentitledtoterminatethisContractbyservingupontheBuilderortheBuyer，asthecasemaybe，writtennoticeoftermination，suchnoticetobedispatchedwithinfourteendaysofthedateuponwhichtheinsurersacceptthattheYachthasbecomeanactualconstructive，compromisedorarrangedtotalloss.

5）IntheeventofanylossordamagebeingsustainedbytheYachtpriortodeliverywhichdoesnotconstituteanactual，constructive，compromisedorarrangedtotalloss，theBuildershallrepairandmakegoodthatlossordamage（hereinafterreferredtoasa‘partialloss’）atthecostoftheBuilderandwhetherornotsufficientinsurancefundsmaybeavailable.

6）Theproceedsoftheinsurancereferredtoinparagraph（1）ofthisArticleshallbedealtwithasfollows：

IftheinsuranceproceedsareinrespectofanactualorconstructiveorcompromisedorarrangedtotallossthentheyshallbeappliedfirstlyinreimbursementtotheBuyeroftheamountofallpayments，ifany，madebytheBuyertotheBuilderunderthisContractandinreimbursementofthevalueofanyitemsofBuyer‘sSupplyand，secondly，inpaymentofanybalancetotheBuilder.

7）FollowingDeliveryoftheYacht，theBuyershallacceptallriskintheYachtincludingallmaterials，machineryandequipmentthereof，andtheBuyershallatitsownexpenseberesponsibleforallinsurancerisksthereafter.

ARTICLEVIII–TESTS

1）PriortodeliveryoftheYachttotheBuyer，theBuildershallcarryoutthetestsprovidedforintheQualityDocumentation，includingbutnotlimitedto：a）Noiseandvibration

b）Hoseandpressuretests

c）MotoringtrialswithintheconfinesoftheWestRiver.

2）TheBuildershallgivetheBuyerreasonablewrittennoticeofthetimeandplaceatwhicheachofthetestsistobecarriedout.

ARTICLEIX–DELIVERY

1）TheYachtshallbedeliveredtotheBuyerbytheBuilderatamutuallyagreedplaceinHongKongHarbouronorbeforetheContractDeliveryDate，orasthesaidContractDeliveryDatesmayhavebeenextendedinaccordancewiththeprovisionsofArticlesIIIorIV.

2）ProvidedthatallinstalmentsandothersumsassetoutandcontainedinArticleVarefullypaidthentheDeliveryoftheYachtshallbeeffectedforthwithbytheconcurrentsignaturebytheBuyerandtheBuilderofaCertificateofDeliveryandAcceptanceacknowledgingDeliveryoftheYachtbytheBuilderandacceptancethereofbytheBuyerprovidedthatthesignaturethereofbytheBuyershallnotoperateasawaiverofanyrightswhichtheBuyermightotherwisehaveinrespectoftheYacht.3）Upondelivery，theriskintheYachtdeliveredshallpasstotheBuyer，itbeingexpresslyunderstoodthat，untilDeliveryiseffected，theYachtandtheirequipmentareattheentireriskoftheBuilder.

4）TheBuyershalltakepossessionoftheYachtimmediatelyuponDelivery.

5）IftheBuilderisunabletotendertheYachtforDeliverywithinsixtydays（‘thePeriodofGrace’）oftheContractDeliveryDate，theBuildershallpaytotheBuyerasagreedandliquidateddamagesthesumofUS$100foreachdaytheYachtisnotsotenderedforthefirstthirtydayperiodofdelayaftertheperiodofgrace，thenUS$250foreachsubsequentdaytheYachtisnotsotenderedanduntilsatisfactorydeliveryismade.

6）IfanyitemsontheYachtareincompletewhenthatYachtisotherwisereadyfordeliveryandtheBuyerandtheBuilderagreethatsuchitemsdonotmateriallyaffecttheoperationoftheYachtnorarelikelytocausedamageordeterioration，thentheBuyerwillnotunreasonablywithholditsconsenttotakeDeliveryoftheYachtsubjecttotherightoftheBuyertohavesuchitemscompletedinamannertobemutuallyagreeduponinwritingbetweentheBuilderandtheBuyerandatthecostoftheBuilder.

ARTICLEX–DEFAULTOFTHEBUILDER

1）TheBuildershallbeindefaultandthisContractmaybeterminatedbytheBuyerbynoticeinwritingtotheBuilderifatanytimebeforeDeliveryofeitherYacht：a）TheBuilderwithoutjustcauserefusestoproceedwiththeconstructionoftheYacht；

b）AnorderismadeoraneffectiveresolutionispassedforthewindingupoftheBuilderorareceiveroradministratorisappointedofthewholeoranypartoftheundertakingoftheBuilderor；

c）TheBuyerisentitledtorejecttheyachtunderArticleIIISubPara5andifthebuilderdoesnotrectifythedefectoromissioninareasonabletime.

d）ItshallbecomeapparentduringtheperiodallowedforconstructionoftheYachtthattheBuildershallbetwomonthsinarrearsinrelationtotheCriticalBuildChart（sucharrearsnotbeinginrespectofForceMajeure）inrespectoftheYacht.

2）IntheeventoftheBuyerterminatingthisContractinaccordancewithparagraph（1）ofthisArticle，theBuyershallbeentitledtotakepossessionoftheYachtinitsunfinishedstateandcompletethesame，orhavethesamecompleted，elsewhereatamutuallyagreedcost.ThecostsincurredbytheBuyerincompletingtheYachtincludingallcostsoftransportationandinsuranceshallbedeductedfromtheremaininginstalmentsoftheContractPrice.IfthesaidcostsshallexceedtheamountoftheremaininginstalmentsoftheContractPrice，theBuildershallpaythedifferencetotheBuyer.

3）UpontheBuyertakingpossessionoftheYacht，intermsoftheforegoingparagraph（a）thepropertyandriskintheYachtandallitsmaterials，machinery，apparatus，outfitandequipmentshallpasstotheBuyer，and（b）saveasprovidedinparagraph（2）alltheobligations，dutiesandliabilitiesofeachofthepartiestotheother，underthisContract，shallforthwithbecompletelydischarged.

4）WhenanysumispayablebytheBuildertotheBuyerbywayofliquidateddamagespursuanttotheprovisionsofthisContract，paymentshallbemadewithinfourteendaysofDelivery（andnotdeductedfromsumsduetotheBuilderonDelivery）andshallbeinfullandfinalsatisfactionofallclaimsonbehalfoftheBuyerinrespectofthematterswhichgaverisetothepayment，withoutprejudice，however，toanyotherclaimoftheBuyerinrespectofmattersotherthandelay.

5）NoticeofterminationbytheBuyershallbegiveninwritingandshallbeeffectivefourteendaysafterreceiptbytheBuilderunlesstheBuildershallhavethenremediedthedefault.

ARTICLEXII–DEFAULTOFTHEBUYER

（1）TheBuyershallbeindefaultandthisContractmay，atthediscretionoftheBuilder，besuspendedinwholeorinpart，orterminated，bytheBuilder，bynoticeinwritingtotheBuyer，if：

（a）TheBuyerfailstopayanyinstalmentoftheContractPricewithinsevenbankingdaysofitsbecomingdueandpayableinaccordancewithArticleV；or

（b）TheBuyer，withoutduecause，failstoaccepttheYachtandpayallsumsdueonDeliverywithinsevendaysoftheYachtbeingtenderedforDeliveryinaccordancewiththisContract.

（c）Thebuyerfailstosupplythematerials，componentsandequipmentinaccordancewiththiscontractthebuyerhavingbeennotifiedinwritingbythebuilderofthematerial，componentsorequipmentwhichthebuyerhasfailedtosupplytothebuilderand

B）Thebuyerhavingfailedtomakesuchsupplywithinseven（7）daysofreceiptofsuchnoticeand

Suchfailuretosupplyordelaycausesthebuilderactualdirectdelayoradditionalcost.

（2）IftheBuildersuspendstheContract，theperiodofsuspensionshallendureuntil：

（a）TheBuyerhasremediedthedefault；or

（b）NoticeofterminationoftheContractisgivenbytheBuildertotheBuyer；or

（c）TheBuilderotherwiseintimatestotheBuyerthatworkundertheContractistoberesumed.

3）NoticeofterminationbytheBuilderunderthisArticleshallbegivenbyfaxandconfirmedinwritingandshallbeeffectivesevendaysafterreceiptthereofbytheBuyer，whereupontheBuildershall（unlesstheBuyershallhavethenremediedthedefault）beentitledtoexercisetherightsprovidedforinparagraph（5）。4）TheBuildershallbeentitledtoterminatethisContractforthwith，bynoticegivenbyfaxandconfirmedinwriting，uponanorderbeingmadeoraneffectiveresolutionbeingpassedforthewindingupoftheBuyer（otherthanamembers‘voluntarywindingupforthepurposeofamalgamationorreconstruction）orareceiveroradministratorbeingappointedofthewholeorpartoftheundertakingoftheBuyer.

5）IftheBuildershallterminatethisContractunderthisArticletheBuildershallbeentitled（inadditiontointerestasprovidedinArticleV（4））totheprovedlossresultingfromtheBuyer‘sdefault.TheBuildershallselltheYachtbypublicauction，ortender，orprivatesale，atitsdiscretion，andshallapplytheproceedsofsale（afterdeductingtheexpensesofsalein