Ship Building Contract (2007)Full Document 

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SHIP BUILDING CONTRACT

(Contract Number: 06CA44S1981021)

FOR

CONSTRUCTION OF ONE 2500 TEU CONTAINER VESSEL

(HULL No. YZJ2006-721C)

Between

SEASPAN CORPORATION

as Buyer

and

JIANGSU YANGZIJIANG SHIPBUILDING CO., LTD. and

GUANGDONG MACHINERY IMP. & EXP. CO., LTD.

collectively as Seller


TABLE OF CONTENTS

 

ARTICLE I - DESCRIPTION AND CLASS    2
   1.   Description:    2
   2.   Principal Dimensions and Characteristics:    2
   3.   Classification, Rules and Regulations:    3
   4.   Registration:    4
   5.   Contract Specifications and Approved Drawings:    4
   6.   Subcontracting and New Shipyard:    4
ARTICLE II - CONTRACT PRICE AND TERMS OF PAYMENT    5
   1.   Contract Price:    5
   2.   Adjustment of Contract Price:    5
   3.   Currency:    5
   4.   Terms of Payment:    6
       (a)       First Instalment:    6
       (b)       Second Instalment:    6
       (c)       Third Instalment:    6
       (d)       Fourth Instalment:    6
       (e)       Fifth Instalment:    6
       (f)       Sixth Instalment (the “Delivery Instalment”):    7
   5.   Method of Payment:    7
   6.   Expenses:    8
   7.   Advance Payment:    8
   8.   Refundment Guarantee:    8
ARTICLE III - ADJUSTMENT OF CONTRACT PRICE    10
   1.   Delivery:    10
   2.   Speed:    11
   3.   Fuel Consumption:    11
   4.   Deadweight:    11
   5.   Container capacity:    12
   6.   Reductions to be Independent of Each Other:    12
   7.   Application of Adjustment:    13
   8.   Effect of Rescission:    13
ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING CONSTRUCTION    14
   1.   Approval of Plans and Drawings:    14
   2.   Appointment of BUYER’s Representatives:    14
   3.   Inspection by BUYER’s Representatives:    15
   4.   Rights of the Representatives:    15
   5.   Facilities:    17
   6.   Liability for the Representatives:    17
   7.   Salaries and Costs:    17
   8.   SELLER’s Obligation:    17
   9.   Replacement of the Representatives:    18
   10.   Responsibility of BUYER:    18
   11.   Information to Representatives:    18
ARTICLE V - MODIFICATIONS, CHANGES AND EXTRAS    19
   1.   How Effected:    19
   2.   Changes in Rules of Classification Society, Regulations, etc.:    19
   3.   Substitution of Materials:    20
ARTICLE VI - TRIALS AND ACCEPTANCE    21

 

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   1.   Notice:    21
   2.   Weather Condition:    21
   3.   How Conducted:    21
   4.   Method of Acceptance or Rejection:    22
   5.   Effect of Acceptance:    23
   6.   Disposition of Surplus Consumable Stores:    23
ARTICLE VII - DELIVERY    24
   1.   Time and Place:    24
   2.   When and How Effected:    24
   3.   Documents to be delivered to BUYER:    24
   4.   Tender of VESSEL:    25
   5.   Title and Risk:    25
   6.   Removal of VESSEL:    26
   7.   Notices:    26
ARTICLE VIII - DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE MAJEURE)    27
   1.   Causes of Delay (Force Majeure):    27
   2.   Notice of Delay:    27
   3.   Definition of Permissible Delay:    28
   4.   Right to Rescind for Excessive Delay:    28
ARTICLE IX - WARRANTY OF QUALITY    29
   1.   Guarantee:    29
   2.   Guarantee from Manufacturers and Suppliers:    29
   3.   Notice of Defects:    29
   4.   Extent of SELLER’s Obligation:    29
   5.   Remedy of Defects:    30
   6.   Guarantee Period:    31
   7.   Application to Defects Remedied:    32
   8.   SELLER to Remain Liable:    32
   9.   Guarantee Engineer:    32
ARTICLE X - SELLER’s DEFAULT - RESCISSION BY BUYER    34
   1.   SELLER’s Default:    334
   2.   Effect of SELLER’s Default:    35
   3.   Notice:    35
   4.   Refundment by SELLER:    35
   5.   Discharge of Obligations:    36
ARTICLE XI - DEFAULT BY THE BUYER    37
   1.   Definition of BUYER’s Default:    37
   2.   Effect of BUYER’s Default on or before Delivery of VESSEL:    37
   3.   Disposal of VESSEL:    38
ARTICLE XII - ARBITRATION    39
   1.   Decisions by the Classification Society:    39
   2.   Proceedings of Arbitration:    39
   3.   Notice of Award:    40
   4.   Expenses:    40
   5.   Entry in Court:    40
   6.   Alteration of Delivery Date:    40
ARTICLE XIII - ASSIGNMENT - SUCCESSOR AND ASSIGNS    41
ARTICLE XIV - TAXES AND DUTIES    42
   1.   Taxes and Duties Incurred in China:    42
   2.   Taxes and Duties Incurred outside China:    42

 

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ARTICLE XV - PATENTS, TRADEMARKS, COPYRIGHTS, ETC    43
   1.   Patents, Trademarks and Copyrights:    43
   2.   General Plans, Specifications and Working Drawings:    43
ARTICLE XVI - BUYER’s SUPPLIES    44
   1.   Responsibility of BUYER:    44
   2.   Responsibility of SELLER:    44
ARTICLE XVII - INSURANCE    46
   1.   Extent of Insurance Coverage:    46
   2.   Application of the Recovered Amounts:    46
   3.   Termination of SELLER’s Obligation to Insure:    47

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