Common use of Method of Acceptance or Rejection Clause in Contracts

Method of Acceptance or Rejection. (a) If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after repairs and be valid in all respects. If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. (b) As soon as practicable after satisfactory completion of the trial run, Builder shall give Buyer a written report thereon and written notice that Builder considers that the results of the trial run indicate conformity of the Vessel to this Contract and the Specifications. Buyer shall, within three (3) Business Days after receipt of such notice from Builder, notify Builder of its acceptance or rejection of the Vessel on the basis of its conformity or non-conformity with the requirements of this Contract and the Specifications. (c) If the results of the trial run indicate that the Vessel, or any part or equipment thereof, does not conform to the requirements of this Contract and/or the Specifications, then, Builder shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer notice thereof. Buyer shall, within three (3) days after receipt of such notice from Builder notify Builder of its acceptance or rejection of the Vessel. However, Buyer shall not be entitled to reject the Vessel by reason of any minor or insubstantial defect or non-conformity judged from the viewpoint of standard shipbuilding practice but in such case, the Builder shall not be released from its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during the Warranty Period. (d) If Buyer considers that the results of the trial run indicate that the Vessel or any part or equipment thereof does not conform to this Contract and/or the Specifications, Buyer shall indicate in detail in a notice of rejection in what respect the Vessel or any part or equipment thereof, does not in its opinion conform to this Contract and/or the Specifications. (e) If Buyer fails to notify Builder in writing or telefax confirmed in writing of the acceptance or rejection of the Vessel together with the reason therefor within the period as provided in Article VI.4 (b) or (c), Buyer shall be deemed to have accepted the Vessel. (f) Builder may dispute the rejection of the Vessel by Buyer under this Article VI.4, in which case the matter shall be submitted for final decision by arbitration in accordance with Article XIII. (g) If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice.

Method of Acceptance or Rejection. (a) If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after repairs and be valid in all respects. If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. (b) As soon as practicable after satisfactory Upon completion of the trial run, the Builder shall give Buyer the Owner a written report thereon notice by fax confirming in writing of completion of the trial run, as and written notice that if the Builder considers that the results of the trial run indicate conformity of the Vessel to this Contract and the Specifications. Buyer The Owner shall, within three (3) Business Days days after receipt of such notice from the Builder, notify the Builder by fax confirming in writing of its acceptance or rejection of the Vessel on the basis of its conformity or non-conformity with the requirements of this Contract and the SpecificationsVessel. (cb) If Should the results of the trial run indicate that the Vessel, or any part or equipment thereof, does not conform to the requirements of this Contract and/or the Specifications, then, the Builder shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, the Builder shall give Buyer the Owner a notice thereofthereof by fax confirming in writing. Buyer The Owner shall, within three two (32) days after receipt of such notice from Builder the Builder, notify the Builder of its acceptance or rejection of the Vessel. However, Buyer shall not be entitled to reject the Vessel by reason of fax confirming in writing. c) In any minor or insubstantial defect or non-conformity judged from event that the viewpoint of standard shipbuilding practice but in such caseOwner rejects the Vessel, the Builder Owner shall not be released from indicate in its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during notice of rejection in what respect the Warranty Period. (d) If Buyer considers that the results of the trial run indicate that the Vessel Vessel, or any part or equipment thereof does not conform to this Contract and/or the Specifications, Buyer shall indicate in detail in a notice of rejection in what respect the Vessel or any part or equipment thereof, does not in its opinion conform to this Contract and/or the Specifications. (ed) If Buyer In event that the Owner fails to notify the Builder in writing or telefax confirmed by fax confirming in writing of the acceptance of or the rejection of the Vessel together with the reason therefor of the Vessel within the period as provided in Article VI.4 the above Sub-paragraph (ba) or (cb), Buyer the Owner shall be deemed to have accepted the Vessel. (fe) The Builder may dispute the rejection of the Vessel by Buyer the Owner under this Article VI.4Paragraph, in which case the matter shall be submitted for final decision by arbitration dispute resolution in accordance with Article XIII13 hereof. (g) If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice.

Method of Acceptance or Rejection. (a) If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after repairs and be valid in all respects1. If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. (b) As soon as practicable after satisfactory Upon successful completion of the trial run, Builder shall give Buyer a written report thereon and written notice of such completion of the trial run, and that Builder considers that the results of the trial run indicate conformity of the Vessel Unit to this Contract and the Specifications. Buyer shall, within three (3) Business Days days after receipt of such notice from Builder, notify provide Builder written notice of its acceptance or rejection of the Vessel on the basis of its conformity or non-conformity with the requirements of this Contract and the SpecificationsUnit. (c) If 2. Should the results of the trial run indicate that the VesselUnit, or any part or equipment thereof, does do not conform to the requirements of this Contract and/or the Specifications, thenor if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejection, Builder shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer written notice thereof, and, if necessary, conduct another trial run. Buyer shall, within three two (32) days after receipt of such notice from Builder Builder, notify Builder of its acceptance or rejection of the Vessel. However, Buyer shall not be entitled to reject the Vessel by reason of any minor or insubstantial defect or non-conformity judged from the viewpoint of standard shipbuilding practice but in such case, the Builder shall not be released from its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during the Warranty PeriodUnit. (d) If 3. In any event that Buyer considers that rejects the results of the trial run indicate that the Vessel or any part or equipment thereof does not conform to this Contract and/or the SpecificationsUnit, Buyer shall indicate in detail in a its notice of rejection in what respect the Vessel Unit, or any part or equipment thereof, does do not in its opinion conform to this Contract and/or the Specifications. (e) If 4. In event that Buyer fails to notify provide Builder in writing or telefax confirmed in writing written notice of the acceptance of or the rejection of the Vessel together with the reason therefor of the Unit within the period as provided in Article VI.4 (b) the above Subparagraph 1 or (c)2, Buyer shall be deemed to have accepted the Vessel.Units. [**] Confidential Treatment 23 (f) 5. Builder may dispute the rejection of the Vessel Unit by Buyer under this Article VI.4Paragraph, in which case the matter shall be submitted for final decision by arbitration in accordance with Article XIIIXIV hereof. (g) If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice.

Method of Acceptance or Rejection. (a) If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after repairs and be valid in all respects. If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. (b) As soon as practicable after satisfactory Upon completion of the trial run, Builder the BUILDER shall give Buyer the BUYER a written report thereon notice by telefax of completion of the trial run, as and written notice that Builder if the BUILDER considers that the results of the trial run indicate conformity of the Vessel VESSEL to this Contract and the Specifications. Buyer The BUYER shall, within three (3) Business Days days after receipt of such notice from Builderthe BUILDER, notify Builder the BUILDER by telefax of its acceptance or rejection of the Vessel on the basis of its conformity or non-conformity with the requirements of this Contract and the SpecificationsVESSEL. (cb) If However, should the results of the trial run nun indicate that the VesselVESSEL, or any part or equipment thereof, does not conform to the requirements of this Contract and/or the Specifications, or if the BUILDER is in agreement to non-conformity as specified in the BUYER’s notice of rejection, then, Builder the BUILDER shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder the BUILDER shall give Buyer the BUYER a notice thereofthereof by telefax. Buyer The BUYER shall, within three two (32) days after receipt of such notice from Builder the BUILDER, notify Builder the BUILDER of its acceptance or rejection of the Vessel. However, Buyer shall not be entitled to reject the Vessel by reason of any minor or insubstantial defect or non-conformity judged from the viewpoint of standard shipbuilding practice but in such case, the Builder shall not be released from its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during the Warranty PeriodVESSEL. (dc) If Buyer considers In any event that the results BUYER rejects the VESSEL, the BUYER shall indicate in its notice of rejection in what respect the trial run indicate that the Vessel VESSEL, or any part or equipment thereof does not conform to this Contract and/or the Specifications, Buyer shall indicate in detail in a notice of rejection in what respect the Vessel or any part or equipment thereof, does not in its opinion conform to this Contract and/or the Specifications. (ed) If Buyer In the event that the BUYER fails to notify Builder in writing or the BUILDER by telefax confirmed in writing of the acceptance of or the rejection of the Vessel together with the reason therefor of the VESSEL within the period as provided in Article VI.4 the above Sub-paragraph (ba) or (cb), Buyer the BUYER shall be deemed to have accepted the VesselVESSEL. (fe) Builder The BUILDER may dispute the rejection of the Vessel VESSEL by Buyer the BUYER under this Article VI.4Paragraph, in which case the matter shall be submitted for final decision by arbitration in accordance with Article XIIIXIII hereof. (g) If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice.

Method of Acceptance or Rejection. (a) If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after repairs and be valid in all respects1. If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. (b) As soon as practicable after satisfactory Upon completion of the final trial run, Builder shall give Buyer a written report thereon and written notice of such completion of the final trial run, and that Builder considers that the results of the trial run runs indicate conformity of the Vessel to this Contract and the Specifications. Buyer shall, within three (3) Business Days days after receipt of such notice from Builder, notify provide Builder written notice of its acceptance or rejection of the Vessel on the basis of its conformity or non-conformity with the requirements of this Contract and the SpecificationsVessel. (c) If 2. Should the parties agree that the results of the trial run runs indicate that the Vessel, or any part or equipment thereof, does not conform to the requirements of this Contract and/or the Specifications, thenor if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejection, Builder shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer written notice thereof. Buyer shallshall then have a period of five (5) days following the completion of such alterations or corrections to re-inspect the Vessel and/or to observe further sea trial runs conducted by the Builder at its expense, within three if such trials are reasonably necessary to test the repairs. Within five (35) days after receipt Buyer’s re-inspection and/or observation of such notice from Builder re-trial runs, Buyer shall notify Builder of its acceptance or rejection of the Vessel. 3. HoweverIn any event that Buyer rejects the Vessel, Buyer shall not be entitled to reject indicate in its notice of rejection in what respect the Vessel by reason of any minor or insubstantial defect or non-conformity judged from the viewpoint of standard shipbuilding practice but in such caseVessel, the Builder shall not be released from its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during the Warranty Period. (d) If Buyer considers that the results of the trial run indicate that the Vessel or any part or equipment thereof thereof, does not conform to this Contract and/or the Specifications, Buyer shall indicate in detail in a notice of rejection in what respect the Vessel or any part or equipment thereof, does not in its opinion conform to this Contract and/or the Specifications. (e) If 4. In event that Buyer fails to notify provide Builder in writing or telefax confirmed in writing written notice of the acceptance of or the rejection of the Vessel together with the reason therefor of the Vessel within the period as provided in Article VI.4 (b) the above SubArticle 1 or (c)2, Buyer shall be deemed to have accepted the Vessel. (f) Builder may dispute the rejection of the Vessel by Buyer under this Article VI.4, in which case the matter shall be submitted for final decision by arbitration in accordance with Article XIII. (g) If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice.

Method of Acceptance or Rejection. (a) If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after repairs and be valid in all respects1. If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. (b) As soon as practicable after satisfactory Upon successful completion of the trial run, Builder shall give Buyer a written report thereon and written notice of such completion of the trial run, and that Builder considers that the results of the trial run indicate conformity of the Vessel Tug to this Contract and the Specifications. Buyer shall, within three (3) Business Days days after receipt of such notice from Builder, notify provide Builder written notice of its acceptance or rejection of the Vessel on the basis of its conformity or non-conformity with the requirements of this Contract and the SpecificationsTug. (c) If 2. Should the results of the trial run indicate that the VesselTug, or any part or equipment thereof, does do not conform to the requirements of this Contract and/or the Specifications, thenor if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejection, Builder shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer written notice thereof, and, if necessary, conduct another trial run. Buyer shall, within three two (32) days after receipt of such notice from Builder Builder, notify Builder of its acceptance or rejection of the Vessel. However, Buyer shall not be entitled to reject the Vessel by reason of any minor or insubstantial defect or non-conformity judged from the viewpoint of standard shipbuilding practice but in such case, the Builder shall not be released from its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during the Warranty PeriodTug. (d) If 3. In any event that Buyer considers that rejects the results of the trial run indicate that the Vessel or any part or equipment thereof does not conform to this Contract and/or the SpecificationsTug, Buyer shall indicate in detail in a its notice of rejection in what respect the Vessel Tug, or any part or equipment thereof, does do not in its opinion conform to this Contract and/or the Specifications. (e) If 4. In event that Buyer fails to notify provide Builder in writing or telefax confirmed in writing written notice of the acceptance of or the rejection of the Vessel together with the reason therefor of the Tug within the period as provided in Article VI.4 (b) the above Subparagraph 1 or (c)2, Buyer shall be deemed to have accepted the VesselTugs. (f) 5. Builder may dispute the rejection of the Vessel Tug by Buyer under this Article VI.4Paragraph, in which case the matter shall be submitted for final decision by arbitration in accordance with Article XIIIXIV hereof. (g) If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice.