Common use of Subcontracting and New Shipyard Clause in Contracts

Subcontracting and New Shipyard. The SELLER may, with prior written notice to and consent from the BUYER, subcontract construction of the blocks of the VESSEL, except the major hull structure parts, to experienced subcontractors within Jiangsu Province area, but delivery and final assembly into the VESSEL of any such work subcontracted shall be at the yard of the SELLER. The BUYER acknowledges that the Builder is affiliated with the shipyard located at Jingjiang, Jiangsu Province (the “New Shipyard”) and the SELLER may use the New Shipyard for construction of the VESSEL. The SELLER shall always remain fully responsible for the performance of this Contract with regard to the work done or materials supplied or used by such Subcontractors or the New Shipyard in accordance with this Contract. The subcontractors and the New Shipyard shall perform up to the same standard as the SELLER for such work performed by them. (end of Article)