yacht build agreement

dated： 22nd december 2002

between

aaa‘s yacht company limited， hong kong. （hereinafter referred to as “the builder”）

and

bbb cc， vietnam， （hereinafter referred to as “the buyer”）

whereas：

1） the buyer wishes to acquire a aaa‘s cape 65 trawler yacht （the yacht） designed by thanos condylis， and built to the buyer’s stated requirements and specification， and the builder has the capability， knowledge and skills to build and supply the same.

2） the builder has agreed to construct， equip， fit-out， test and deliver the yacht to the buyer‘s stated requirements and specification， which the buyer has agreed to accept upon the terms and conditions here in after specified：

now therefore the parties hereto have agreed and do hereby agree as follows：

article i - interpretation

1） in this contract the following words and expressions shall have the meaning hereby ascribed to them， except where the context otherwise admits or requires：

“banking days” shall mean days upon which hong kong clearing banks are customarily open for business.

“the builder‘s clarifications” shall mean the documents so entitled forming part of this contract and set out as annexes hereto； （see also item （2） of this article.）

“buyer‘s representative（s）” shall mean such persons notified from time to time by the buyer as having authority to act for the buyer， the extent of such authority being set out in the notice；

“items of buyer‘s supply” shall mean any item of equipment and stores for the yacht ordered by the buyer direct from the manufacturer or the supplier， for incorporation in the yacht by the builder；

“items of builder‘s supply” shall mean any item of equipment and stores for the yacht ordered by the builder direct from the manufacturer or the supplier， for incorporation in the yacht；

“the certifying / survey body” shall mean the body responsible for the survey and certification of the yacht to the requirements of the buyer.

“the contract” shall mean （a） this contract， and （b） the attached annexes and schedule more particularly described below.

“the contract delivery date” shall mean no later than 30 june 2002；

“the contract master programme” shall mean the programme for construction of the yacht， set out in annex d；

“the contract price” shall mean the price stipulated in article v for the yacht， yard number 005；

“the yacht” shall mean the yacht the subject of this contract and generally as described in article ii， with all the machinery， apparatus， outfit， materials， and equipment appurtenant thereto， but excluding the items of buyer‘s supply.

“the boatyard” shall mean aaa‘s yacht company， xinhui， china.

“the design specifications” shall mean the specifications， designs， plans and drawings， set out in schedule a， prepared and signed by the buyer， identified as forming part of this contract， and including such revised or supplemental specifications， plans and drawings as may subsequently be agreed between the buyer and the builder provided that （i） in the case of any inconsistency between any article or paragraph of this contract and the design specifications， this contract shall prevail， （ii） in the case of any inconsistency between the design specifications and a plan or drawing， the design specification shall prevail， and （iii） in the case of any inconsistency between one plan or drawing and another plan or drawing， the later in date shall prevail；

\"schedule a\" shall mean the agreed schedule of drawings

“annex a” shall mean the list of materials， components and equipment defining a completed yacht；

\"annex b\" shall mean the agreed weld quality procedures

“annex c” shall mean the agreed shot blasting， fairing， painting and foaming specifications

\"annex d“ shall mean the agreed production schedule master program.

“specified” shall mean stipulated in the specifications and annex a；

“supplier” shall mean any person， firm or company， which has entered into a contract with the builder for the supply of materials， machinery， services or equipment （other than items of buyer‘s supply） for the yacht；

the index， article and paragraph headings， are inserted for convenience only and shall not affect the construction of this contract.

words importing the singular shall include the plural and vice versa.

2） list of builder‘s clarifications， not covered in annex a document：

“cradles for transport” the supply of a cradle for shipment is excluded from this contract.

“dressing/stepping the mast” the dressing and stepping of mast for the yacht is included in the builder‘s supply.

“storage” the builder will arrange secure storage ashore for the yacht at the boatyard between completion of build and handover at delivery.

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