Common use of SUB-CONTRACTORS AND SUPPLIERS Clause in Contracts

SUB-CONTRACTORS AND SUPPLIERS. The BUILDER shall build and outfit the VESSEL according to this CONTRACT at the SHIPYARD at Samho, Korea using mainly its own shipyard organization provided always that main hull blocks of the VESSEL, other than the bow section (including the bulbous bow) the xxxxx blocks, upper deck unit, deck house, engine casing, funnel, T-bulkhead and L-bulkhead (including Lower Stool) and Xxxxxx will be constructed at the SHIPYARD. The BUILDER is, however, authorized to sub-contract part of the work to experienced third party sub-contractors in the vicinity of the SHIPYARD, provided that the BUILDER shall have first given notice in writing to the BUYER for any major sub-contract award (for the purpose of this CONTRACT an award involving consideration in excess of US$2 million or its equivalent in any other currency shall be deemed a major sub-contract) and received the BUYER’s written approval thereof which shall not be unreasonably withheld. The BUILDER shall compensate for direct cost of fuel and tolls required for BUYER’s supervision of subcontractors outside the vicinity of the SHIPYARD (defined as more than 50km from the SHIPYARD). Without prejudice to the generality of the foregoing, the BUILDER shall remain fully liable to the BUYER for the due and complete performance of any work (or part of it) undertaken by any subcontractor as if undertaken by the BUILDER. However, the VESSEL shall always remain at the SHIPYARD unless the BUYER and the BUILDER agrees otherwise. No sub-contract shall bind or purport to bind the BUYER, and each sub-contract shall be the responsibility of the BUILDER. All sub-contractors howsoever employed or engaged are hereby declared and agreed to be subcontractors employed or engaged by the BUILDER and the BUILDER agrees that it is and shall remain fully responsible for and liable in respect of any sub-contractors and/or their acts or omissions and, without prejudice to the generality of the foregoing, the BUILDER shall ensure control over supervision and scheduling of the all work done by sub-contractors. The BUYER may request in the reasonable opinion of the BUYER’S REPRESENTATIVE the BUILDER to replace any sub-contractor whose level of workmanship has been demonstrated not to meet the requirements of this CONTRACT, including the SPECIFICATIONS which request the BUILDER shall not unreasonably refuse. The BUILDER shall investigate any such request and, if found justified, take appropriate action.

SUB-CONTRACTORS AND SUPPLIERS. The BUILDER shall build and outfit the VESSEL according to this CONTRACT at the SHIPYARD at Samho, Korea using mainly its own shipyard organization provided always that main hull blocks of the VESSEL, other than the bow section (including the bulbous bow) ), the xxxxx blocks, upper deck unit, deck house, engine casing, funnel, T-bulkhead and L-bulkhead (including Lower Stool) and Xxxxxx will be constructed at the SHIPYARD. The BUILDER is, however, authorized to sub-contract part of the work to experienced third party sub-contractors in the vicinity of the SHIPYARD, provided that the BUILDER shall have first given notice in writing to the BUYER for any major sub-contract award (for the purpose of this CONTRACT an award involving consideration in excess of US$2 million or its equivalent in any other currency shall be deemed a major sub-contract) and received the BUYER’s written approval thereof which shall not be unreasonably withheld. The BUILDER shall compensate for direct cost of fuel and tolls required for BUYER’s supervision of subcontractors outside the vicinity of the SHIPYARD (defined as more than 50km from the SHIPYARD). Without prejudice to the generality of the foregoing, the BUILDER shall remain fully liable to the BUYER for the due and complete performance of any work (or part of it) undertaken by any subcontractor as if undertaken by the BUILDER. However, the VESSEL shall always remain at the SHIPYARD unless the BUYER and the BUILDER agrees otherwise. No sub-contract shall bind or purport to bind the BUYER, and each sub-contract shall be the responsibility of the BUILDER. All sub-contractors howsoever employed or engaged are hereby declared and agreed to be subcontractors sub-contractors employed or engaged by the BUILDER and the BUILDER agrees that it is and shall remain fully responsible for and liable in respect of any sub-contractors and/or their acts or omissions and, without prejudice to the generality of the foregoing, the BUILDER shall ensure control over supervision and scheduling of the all work done by sub-contractors. The BUYER may request in the reasonable opinion of the BUYER’S REPRESENTATIVE the BUILDER to replace any sub-contractor whose level of workmanship has been demonstrated not to meet the requirements of this CONTRACT, including the SPECIFICATIONS SPECIFICATIONS, which request the BUILDER shall not unreasonably refuse. The BUILDER shall investigate any such request and, if found justified, take appropriate action.

SUB-CONTRACTORS AND SUPPLIERS. The BUILDER shall build and outfit the VESSEL according to this CONTRACT at the SHIPYARD at Samho, Korea using mainly its own shipyard organization provided always that main hull blocks of the VESSEL, other than the bow section (including the bulbous bow) ), the xxxxx blocks, upper deck unit, deck house, engine casing, funnel, T-bulkhead and L-bulkhead (including Lower Stool) and Xxxxxx will be constructed at the SHIPYARD. The BUILDER is, however, authorized to sub-contract part of the work to experienced third party sub-contractors in the vicinity of the SHIPYARD, provided that the BUILDER shall have first given notice in writing to the BUYER for any major sub-contract award (for the purpose of this CONTRACT an award involving consideration in excess of US$2 million or its equivalent in any other currency shall be deemed a major sub-contract) and received the BUYER’s written approval thereof which shall not be unreasonably withheld. The BUILDER shall compensate for direct cost of fuel and tolls required for BUYER’s supervision of subcontractors outside the vicinity of the SHIPYARD (defined as more than 50km from the SHIPYARD). Without prejudice to the generality of the foregoing, the BUILDER shall remain fully liable to the BUYER for the due and complete performance of any work (or part of it) undertaken by any subcontractor as if undertaken by the BUILDER. However, the VESSEL shall always remain at the SHIPYARD unless the BUYER and the BUILDER agrees otherwise. No sub-contract shall bind or purport to bind the BUYER, and each sub-contract shall be the responsibility of the BUILDER. All sub-contractors howsoever employed or engaged are hereby declared and agreed to be subcontractors employed or engaged by the BUILDER and the BUILDER agrees that it is and shall remain fully responsible for and liable in respect of any sub-contractors and/or their acts or omissions and, without prejudice to the generality of the foregoing, the BUILDER shall ensure control over supervision and scheduling of the all work done by sub-contractors. The BUYER may request in the reasonable opinion of the BUYER’S REPRESENTATIVE the BUILDER to replace any sub-contractor whose level of workmanship has been demonstrated not to meet the requirements of this CONTRACT, including the SPECIFICATIONS SPECIFICATIONS, which request the BUILDER shall not unreasonably refuse. The BUILDER shall investigate any such request and, if found justified, take appropriate action.

SUB-CONTRACTORS AND SUPPLIERS. The BUILDER shall build and outfit the VESSEL according to this CONTRACT at the SHIPYARD at Samho, Korea using mainly its own shipyard organization provided always that main hull blocks of the VESSEL, other than the bow section (including the bulbous bow) the xxxxx blocks, upper deck unit, deck house, engine casing, funnel, T-bulkhead and L-bulkhead (including Lower Stool) and Xxxxxx will be constructed at the SHIPYARD. The BUILDER is, however, authorized to sub-contract part of the work to experienced third party sub-contractors in the vicinity of the SHIPYARD, provided that the BUILDER shall have first given notice in writing to the BUYER for any major sub-contract award (for the purpose of this CONTRACT an award involving consideration in excess of US$2 million or its equivalent in any other currency shall be deemed a major sub-contract) and received the BUYER’s written approval thereof which shall not be unreasonably withheld. withheld The BUILDER shall compensate for direct cost of fuel and tolls required for BUYER’s supervision of subcontractors outside the vicinity of the SHIPYARD (defined as more than 50km from the SHIPYARD). Without prejudice to the generality of the foregoing, the BUILDER shall remain fully liable to the BUYER for the due and complete performance of any work (or part of it) undertaken by any subcontractor as if undertaken by the BUILDER. However, the VESSEL shall always remain at the SHIPYARD unless the BUYER and the BUILDER agrees otherwise. No sub-contract shall bind or purport to bind the BUYER, and each sub-contract shall be the responsibility of the BUILDER. All sub-contractors howsoever employed or engaged are hereby declared and agreed to be subcontractors sub-contractors employed or engaged by the BUILDER and the BUILDER agrees that it is and shall remain fully responsible for and liable in respect of any sub-contractors and/or their acts or omissions and, without prejudice to the generality of the foregoing, the BUILDER shall ensure control over supervision and scheduling of the all work done by sub-contractors. The BUYER may request in the reasonable opinion of the BUYER’S REPRESENTATIVE the BUILDER to replace any sub-contractor whose level of workmanship has been demonstrated not to meet the requirements of this CONTRACT, including the SPECIFICATIONS SPECIFICATIONS, which request the BUILDER shall not unreasonably refuse. The BUILDER shall investigate any such request and, if found justified, take appropriate action.