Common use of Early Delivery Clause in Contracts

Early Delivery. In the event that the BUILDER believes that the VESSEL can be completed and ready for Delivery on a date earlier than the Contractual Delivery Date, then the BUILDER may give a written notice to the BUYER, no later than six (6) months before the revised date (the “Early Delivery Date”) informing the approximate date on which the VESSEL can be ready for the Delivery. The BUYER shall have the option, but not the obligation, to accept Delivery of the VESSEL on the Early Delivery Date and upon the BUYER’s acceptance thereof, the parties shall discuss the specific amount of the additional payment due to the BUILDER for the accelerated Delivery of the VESSEL on the Early Delivery Date at the delivery stage of the VESSEL and the compensation payment of the acceleration bonus shall be settled and paid in full with the final delivery instalment concurrently uponwith the actual Delivery and acceptance of the VESSEL by the BUYER. If the Parties fail to reach a mutual agreement on the amount of the Early Delivery bonus, the BUILDER shall be free to deliver the VESSEL on the original Contractual Delivery Date or earlier at its option. The Parties hereto acknowledge that there will be no liquidated damages or other penalty to be imposed on the BUILDER in the event the VESSEL happens to be delivered on any date later than the Early Delivery Date but earlier than the original Contractual Delivery Date.