INSUFFICIENT SPEED. (a) The CONTRACT PRICE of the VESSEL shall not be affected or changed, if the actual speed, as determined by trial runs more fully described in Article VI hereof, is less than the speed required under the terms of this CONTRACT and the SPECIFICATIONS provided such deficiency in actual speed is not more than three tenths (3/10) of a knot below the guaranteed speed.
(b) However, as for the deficiency of more than three-tenths (3/10) of a knot in actual speed below the speed guaranteed under this CONTRACT, the CONTRACT PRICE shall be reduced by U.S. Dollars Seventy Nine Thousand (U.S.$ 79,000) for each full one-tenth (1/10) of a knot in excess of the said three tenths (3/10) of a knot of deficiency in speed, with fractions of less than one-tenth (1/10) of a knot being regarded as a full one-tenth (1/10) of a knot of deficiency. However, unless the parties agree otherwise, the total amount of reduction from the CONTRACT PRICE shall not exceed the amount due to cover the deficiency of nine tenths (9/10) of a knot below the guaranteed speed at the rate of reduction as specified above.
(c) If the deficiency in actual speed of the VESSEL is more than nine tenths (9/10) of a knot below the speed guaranteed under this CONTRACT, then the BUYER, at its option, may, subject to the BUILDER's right to effect alterations or corrections as provided in Article VI.5. hereof, reject the VESSEL and cancel this CONTRACT or may accept the VESSEL at a reduction in the CONTRACT PRICE as above provided for nine tenths (9/10) of a knot of deficiency only.
INSUFFICIENT SPEED. (a) The Original Contract Price of the VESSEL shall not be affected nor changed by reason of the actual speed (as determined by the Trial Run after correction according to the Specifications) being less than three tenths (3/10) of one knot below the Guaranteed Speed at xxxxxxxxx draft as specified in Paragraph 4 of ARTICLE I of this Contract.
(b) However, commencing with and including a deficiency of three tenths (3/10) of one knot in actual speed (as determined by the Trial Run(s) after correction according to the Specifications) below the Guaranteed Speed as specified in Paragraph 4, ARTICLE I of this Contract, the Original Contract Price shall be reduced as follows: In case of deficiency Above 0.30 but below 0.40 knot US$50,000 Above 0.40 but below 0.50 knot US$100,000 Above 0.50 but below 0.60 knot US$ 150,000
(c) If the deficiency in actual speed (as determined by the Trial Run after correction according to the Specifications) of the VESSEL upon the Trial Run, is 0.6 knot or more below the Guaranteed Speed, then the BUYER may at its option reject the VESSEL and rescind this Contract in accordance with provisions of ARTICLE X of this Contract, or may accept the VESSEL at a reduction in the Original Contract Price in the maximum amount of United States Dollars One Hundred Fifty Thousand Only (USD150,000.00).
INSUFFICIENT SPEED. (i) The Contract Price of the Vessel shall not be affected or changed, if the actual speed, as determined by trial runs more fully described in Article 6 hereof, is less than the speed required under the terms of this Contract and the Specifications provided such deficiency in actual speed is less than three-tenths (3/10) of one knot below the guaranteed speed.
(ii) However, commencing with and including a deficiency of three tenths (3/10) of one (1) knot, the Contract Price shall be reduced for each full one-tenth (1/10) of one knot of deficiency in speed and up to nine-tenths (9/10) of one (1) knot (but fractions of less than one-tenth (1/10) of one knot shall be disregarded) as follows; For three tenth (0.3) of a knot by a total of: US$60,000.- for four-tenth (0.4) of a knot by a total of: US$120,000.- for five-tenth (0.5) of a knot by a total of: US$180,000.- for six-tenth (0.6) of a knot by a total of: US$240,000.- for seven-tenth (0.7) of a knot by a total of: US$300,000.- for eight-tenth (0.8) of a knot by a total of: US$360,000.- for nine-tenth (0.9) of a knot by a total of: US$420,000.-
(iii) If the deficiency in actual speed of the Vessel is more than nine tenths (9/10) of a full knot below the speed guaranteed under this Contract, then the Buyer, at its option, may, subject to the Builder’s right to effect alterations or corrections as provided in Article 6 (e) hereof, cancel this Contract or may accept the Vessel with a maximum reduction in the Contract Price as specified above for nine-tenths (9/10) of a knot.
INSUFFICIENT SPEED. (a) The CONTRACT PRICE of the VESSEL shall not be affected or changed, if the actual speed, as determined by trial runs more fully described in Article VI hereof, is less than the speed required under the terms of this CONTRACT and the SPECIFICATIONS provided such deficiency in actual speed is not more than three-tenths (3/10) of a knot below the guaranteed speed.
(c) If the deficiency in actual speed of the VESSEL is more than one (1) full knot below the speed guaranteed under this CONTRACT, then the BUYER, at its option, may, subject to the BUILDER's right to effect alterations or corrections as provided in Article VI.5. hereof, cancel this CONTRACT or may accept the VESSEL at a reduction in the CONTRACT PRICE as above provided for one (1) full knot of deficiency only.
(d) If the actual speed of the VESSEL exceeds the speed guaranteed under this CONTRACT, then the CONTRACT PRICE shall be increased for each full one-tenth (1/10) of a knot by adding U.S. Dollars Twenty Thousand (US$ 20,000) [fractions of less than one-tenth (1/10) of a knot shall be regarded as a full one-tenth (1/10) of a knot].
INSUFFICIENT SPEED. The Contract Price of the Vessel shall not be affected or changed if the speed of the Vessel on trials, as determined in accordance with the Specifications, is less than the guaranteed speed of the Vessel, provided such deficiency is not more than one-fifth (1/5) of one (I) knot below the guaranteed speed. In the event, however, that the deficiency in the speed exceeds one-fifth (1/5) of one (I) knot below the guaranteed speed, the Contract Price shall be reduced, as liquidated damages, by ****** for such deficiency of each 0.1 knots (any fractions to be pro-rated but disregarding fractions of one-hundredth (11100) of one (I) knot). If the deficiency of the Vessel's speed on trials exceeds one (1) full knot below the guaranteed speed, the Buyer at its option may accept the Vessel at a reduction in the Contract Price as above specified for an insufficient speed of one (1) full knot, that is at a total reduction of ******, or, subject to the provisions of Paragraph 4) of Article VII, may reject the Vessel and rescind this {N1783113.1.2} Contract, in which case the provisions in Paragraph 1) of this Article regarding the Buyer's rescission of the Contract shall be applied.
INSUFFICIENT SPEED. (a) The Contract Price shall not be affected or changed by reason of the trial speed, as determined in accordance with the Specifications, being less than the Guaranteed Speed, if such deficiency is not more than three-tenths (3/10) of a knot.
(b) However, if such deficiency is more than three-tenths (3/10) of a knot, then, the Contract Price shall be reduced by deducting therefrom the amount of Seven Million One Hundred Thousand Japanese Yen (JPY7,100,000) per one-tenth (1/10) of a knot or deficiency over the aforesaid grace of three-tenths (3/10) of a knot (fractions of one-tenth (1/10) of a knot to be prorated). However, the maximum reduction in the Contract Price shall in no event be more than the amount in the case of a deficiency of seven-tenths (7/10) of a knot below the Guaranteed Speed.
(c) If deficiency in the trial speed of the Vessel (as so determined) is more than seven-tenths (7/10) of a knot below the Guaranteed Speed, then, the Buyer shall have the option either to accept the Vessel at a maximum reduction in the Contract Price as above provided or to reject the Vessel and to rescind this Contract in accordance with provisions of Article X hereof as alternative to receiving the aforesaid liquidated damages.
INSUFFICIENT SPEED. (i) The Vessel has been designed for a speed over ground of __ knots in the design draft condition in calm seas and winds. The design draft condition is a draft of 12'0" as defined in Group 0 of the Specifications. Shipyard's engineering subcontractor, Guidx Xxxxx & Associates, Inc., shall verify the effective horsepower "EHP" requirements of the hull through a model testing program. The model testing program will be performed as soon as reasonably possible after Contract execution in order to predict the speed of the Vessels based upon the design set forth in the Guidance Drawings and Specifications. Owner may participate in the model testing program if so desired and the results of the model testing program will be reported to Owner. Any hull form modifications necessary to enhance flow and reduce EHP shall be reviewed and approved by Owner. Shipyard is responsible to construct the hull meeting the tested EHP requirements.
(ii) Shipyard will be responsible for the speed of the Vessels up to the predicted speed from the model test or ___ knots, whichever is lower (the "Target Speed"). If Owner determines that the speed predicted by the model test is not acceptable to Owner, then it is the responsibility of Owner to initiate a Change in accordance with Section 11.3 of this Contract in an attempt to increase the speed. If a Change is made in order to increase the speed and if Owner desires a second model test, the second model test will be at the sole cost and expense of Owner.
(iii) If, following final trials, there exists a deficiency of greater than one fourth of one knot in actual speed below the Target Speed, and if Shipyard is not able within a reasonable period, to correct such deficiency the Contract Price shall be reduced __________ for a speed deficiency of more than one quarter knot to one-half knot, and an additional _________ penalty for a speed deficiency from one-half to three quarter knot, and an additional ___________ penalty for a speed deficiency from three quarters of a knot to one knot; provided, however, in no event shall the total amount payable by Shipyard under this sub-paragraph (iii) exceed in the aggregate ___________.
(iv) If the deficiency in the actual speed of the Vessel upon trial run is more than one (1) full knot below the Target Speed, then Shipyard shall be required to correct the deficiency in order that the actual speed of the Vessel is within one (1) knot of the Target Speed.
INSUFFICIENT SPEED. (a) The Contract Price shall not be affected or changed by reason of a deficiency in the actual speed of the Vessel, as determined on the basis of trial run, being less than Three-tenths (3/10) of One (1) knot below the guaranteed peed of the Vessel at the designed draft in the conditions as set out in the Specifications.
(b) If the deficiency in actual speed of the Vessel amounts to or exceeds Three-tenths (3/10) of One (1) knot below the guaranteed speed of the Vessel at the design draft (fractions less than One-tenth (1/10) of One (1) knot of deficiency to be taken into account pro rata), the Contract Price shall be reduced as follows: Deficiency in Actual Speed Total Reduction Three-tenths of a knot USD Four-tenths of a knot USD Five-tenths of a knot USD Six-tenths of a knot USD Seven-tenths of a knot USD Eight-tenths of a knot USD Nine-tenths of a knot USD One knot USD The above amounts in this sub-paragraph (b) are not cumulative.
(c) If the deficiency in actual speed of the Vessel as determined during the trial run is more than One (1) full knot below the guaranteed speed of the Vessel at the designed draft, Buyer may, at its option, reject the Vessel in accordance with Article VI.4 and terminate this Contract in accordance with the provisions of Article X, or accept the Vessel with a total reduction in the Contract Price of United States Dollars (USD .-).
INSUFFICIENT SPEED. The Purchase Price shall not be reduced by reason of the trial speed, as determined by the trial run, being not more than three-tenths (3/10ths) of one (1) knot below the guaranteed speed of the Vessel of 16.25 knots at normal output of main engine in the condition as specified in the Specifications (the “Guaranteed Speed”). However, in the event that the deficiency in trial speed of the Vessel is by more than three-tenths (3/10ths) of one (1) knot below the Guaranteed Speed, the Sellers shall pay to the Buyers as liquidated damages, by means of a corresponding reduction of the Purchase Price, the sum of Sixty Five Thousand Dollars ($65,000.-) for each one-tenth (1/10th) of a knot deficiency over and above the deficiency of three-tenths (3/10ths) of one (1) knot, by which the trial speed of the Vessel falls below the Guaranteed Speed (fractions of one tenth (1/10th) to be pro-rated). In the event of such deficiency being more than one (1) knot, then the Buyers shall have the option to cancel this Agreement whereupon the provisions of Clause 18 hereof shall apply. However, the maximum reduction in the Purchase Price shall in no event be more than the amount in the case of a deficiency of one (1) knot below the Guaranteed Speed, that is at a total reduction of Four Hundred Fifty Five Thousand Dollars ($455,000.-).
INSUFFICIENT SPEED. If the Vessel on sea trials at her design draft and even keel and under the sea and weather conditions as stipulated in this Contract and Specification does not attain a speed of 24 knots at 87% of maximum continuous output of the electric propulsion motor shafts, then, as sole compensation, the Contract Price shall be reduced according to the following: For the first [*] of a knot [*] For each further complete [*] of a [*] of the Contract Price, knot up to [*] of a knot For each further complete [*] of a [*] of the Contract Price knot However, if the Vessel shall not achieve a speed of [*] knots, then the Buyer may, at its option, as an alternative to receiving the above mentioned liquidated damages by way of Contract Price reduction, rescind this Contract.
