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1、 THE CONTRACT FOR SHIPREPARING CONTRACT NO： PLACE： Qingdao Lingshan Ship Engineering Co., Ltd DATE： Co.,LTD. (hereinafter referred to as the owner) on the one part, QINGDAO LINGSHAN SHIP ENGINEERING CO., LTD (hereinafter referred to as the contractor) on t

2、he other part，the owner has placed and the contractor accepts an order for the repair of m/v (hereinafter referred to as the vessel). Both parts have concluded the following contract. 1. The scope of repair work 1.1 The contractor work out the Quotation List of the vessel’s repair work a

3、ccording to the Drydocking Specification which provided by the owner, it shall be the scope of the vessel’s repair work after both parts signed . 2. Price 2.1 The price for carrying out repairing work of the vessel shall be United States Dollars, the estimate amount is USD，said: United

4、States Dollars (being precise price with final settlement account) 3. Contract duration 3.1 The duration for completion of the repair to the vessel is fixed at days, it’s begin from including days in , with the exception of the national /public holidays in China. 4. Condition

5、 of payment 4.1 Payment under the terms of the contract will be paid to contractor by the Owner in U.S. dollars (USD) as follows: 4.1.1 The owner will pay 50% of the contract’s price to contractor’s account when signed the contract, the amount is USD. 4.1.2 The owner will pay 30% of the con

6、tract price to contractor’s account when the repairing work is carry out about 50%. 4.1.3 The remains sum of price (including the cost of additional works and items quoted as unit price and/or actual cost) to be paid before the vessel’s departure from the contractor’s shipyard.

7、 4.2 In the event of the owner payment over due, it should be managed according to the rules of Chinese People’s Bank. 4.3 The contractor encash the vessel’s repairing price from the owner’s established bank by way of the contractor’s established bank according to the protocol of delivery and acc

8、eptance for shiprepairing. The owner should not refuse to pay the vessel’s repairing price because of any reason. 5. Additional /Decreased Work 5.1 In the event of the owner requires additional work not provided for the Drydocking Specification, the cost of such additional work shall be mutual

9、ly agreed and shall be made the subject of an appropriate supplement to the contract before commencement of the repair. The contractor will be entitled to claim additional time for completion of the repair if the cost of the additional work exceeds 10 (ten) percent of the original price or the owner

10、 submit additional works after contract duration has passed four per cent.. 5.2 The owner has the right to cancel some items of the specification also to decrease the extend of work during the repair of the vessel. If the contractor has cost on the owner’s cancellation /decrease of items, the owner

11、 should undertake the cost. If the cancellation /decrease of items exceed 20(twenty) percent in amount compared to the contract price, the contractor has the right to raise the unit price for repair the vessel. 5.3 All additional /decreased work should be submitted by the owner’s representative in

12、written form. 6. Supervision of work 6.1 In order to deal promptly with any technical problems, to observe and monitor the progress and quality of the work and also to participate in testing procedures, the owner has the right and obligation to send representative to the contractor’s repair yard.

13、 6.2 The representative shall have the right to check the quality of work to be carried out or already completed at the contractor’s premised or those of his subcontractor as well as the quality of materials, components. 6.3 Should any differences of opinion arise between the owner’s and contracto

14、r’s representatives in technical matters a dispute protocol signed by both parties shall be drawn up for each individual case which shall be submitted for appraisal by the classification society, whose decision shall be binding to both parties. 6.4 In the event of owner’s representative to be injur

15、ed and died on the vessel because of the accident that was not to lead by contractor’s reason, the owner will accept the full responsibility. 7. Guarantee 7.1 After the completion of the vessel’s repair work the guarantee period of fixed components that repaired by contractor is six months, the

16、moving components that repaired by contractor is three months. During the guarantee period, if there is defect which is leaded by contractor’s repair quality problem, the contractor shall repair it in time and free in charge. But the owner should not take it as the reason to refuse to pay the contra

17、ctor price of shiprepairing. 7.2 If there is defect which is leaded by quality problem of components, parts and equipments that supplied by owner or wrong operation, the owner shall accept the full responsibility. 8. Vessel insurance 8.1 Insurance throughout the repair period will be arranged a

18、nd paid for by owner. The vessel shall be at the risk of the owner during the period of repair. However, the contractor shall be responsible for the security of the vessel through the period of repair. 8.2 In the event of contractor’s worker to be injured and died on the vessel because of the accid

19、ent that leaded by contractor’s reason, the contractor will accept the full responsibility. 9. Old materials and equipment 9.1 All old equipment, apparatus, materials, (excluding the propellers and tail shafts) removed from the vessel during the repair shall own by the contractor. 10. Force m

20、ajeure 10.1 Unforeseen circumstances involving force majeure, such as fire, flood, earthquake, explosion, strike, lookout, or severe weather conditions, other calamities, or any other events which are beyond the contractor’s control will be eligible for an equivalent extensions of the repair period

21、 of the vessel only provided that such circumstances have a significant effect on the contract completion, and provided that the owner or the owner’s representative is immediately informed in writing by the contractor but not later than 7 (seven) days after the onset of such circumstances. 10.2 The

22、 contractor shall also undertake to inform the owner in writing within 7 (seven) days of the termination of the force majeure condition. 11. Arbitration 11.1 All dispute or difference opinion which may arise out of or in connection with the present contract are to be settled through negotiation,

23、 if negotiation failed, it will be settled by jurisdiction of ordinary courts being exclude by the Qingdao Maritime Court at Qingdao, China in accordance with the rules and procedure of the said Arbitration court. 11.2 The award of the Arbitrations is final and binding upon both parties. 12. Ot

24、hers 12.1 This contract is made in 2 (two) copies in English and Chinese, 1(one) copy for each party, and both have actual validity. In case of any divergence, the interpretation shall be made in accordance with the Chinese text. 12.2 This contract shall become effective as soon as being signed by

25、 both parties. 13. The owner: The contractor: Qingdao Lingshan Ship Engineering Co., Ltd. Address: Address:Lingshanwei Town Jiaonan City QINGDAO CHINA Phone: Phone: (86) 0

26、532—3181033 Legal representative: Legal representative: Representative: Representative: Bank name: Bank name:The Industrial and Commercial of China Jiaonan Sub-branch Account number: Account number: 5