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This agreement is between Jonesport Shipyard (JS) and the vessel owner (the Owner) whose name is shown above. By this agreement, JS agrees to provide service and/or storage to the previously named vessel for a limited period of time.
The work to be performed shall be as described on written Work Orders, together with any applicable plans and specifications attached thereto.
Unless otherwise stated within a Work Order, JS shall build, secure, finish and/or install all materials, goods, equipment and/or labor described within. JS may obtain components or equipment to be a part of the Vessel from subcontractors or third-party manufacturers. All material shall be of good quality and purchased new in accordance with the Work Orders, unless Owner shall expressly agree otherwise. If any materials designated in the Work Orders are in short supply or cannot be procured in a timely manner, JS may, if Owner agrees in writing, substitute materials meeting the requirements.
Owner agrees to pay JS for labor to repair and improve the Vessel per the posted rates unless — during the term of this Agreement — JS and Owner agree in writing to one or more change orders that provide for additional labor cost. Administrative expenses such as accounting related to the Vessel will not be charged to Owner. However, time spent in meetings with Owner or any work in providing design services will be included in the hourly labor charges. If Owner requires JS staff to travel off site, Owner shall reimburse JS for all travel expenses including vehicle mileage or car rental, lodging, meals and air fare, as applicable.
Owner agrees to pay JS for materials required for repairs and improvements to the Vessel, including components or equipment acquired by JS from any subcontractors or third-party manufacturers, in an amount equal to JS’s cost to acquire such materials, components, or equipment, plus 15% for any individual items costing as much as $15,000, and plus 10% for any individual items costing more than $15,000.
Owner shall be responsible for payment of any taxes or duties (including without limitation any sales, excise or use tax) and all tariffs, import or export duties payable or owed to any State, County, Country or governmental entity arising out of purchase of materials and equipment and construction of the Vessel. Owner shall hold JS harmless for any and all claims made upon JS in connection therewith, including costs of defense, and shall promptly reimburse JS for any costs or levies thereof.
If JS retains any subcontractor to perform a portion of the work covered by this Agreement, Owner shall pay JS the amount charged to JS by such subcontractor, plus 15% for any subcontract costing up to $15,000, and plus 10% for any subcontract costing more than $15,000.
JS shall issue invoices to Owner for labor provided, materials purchased, sales taxes incurred and expenses incurred as described herein every month, and payment shall be due within fifteen (15) days thereafter. JS agrees to maintain accurate records of time spent and materials acquired constructing the Vessel and further agrees to make said records available to Owner upon request.
If Owner fails to make complete payment of an invoice when due and such failure continues for a period of 14 days, JS may suspend work until payment in full is made. If Owner fails to make complete payment of an invoice and such failure continues for a period of 28 days, JS may declare this Agreement terminated and void by written notice to Owner and JS shall have no further obligations hereunder to complete the repairs and improvements to of the Vessel.
Owner shall pay JS interest at a rate of 12% per annum on any sums of money not paid when due, with interest being computed from the due date of such payment until the date which payment is actually received by JS.
The Owner warrants that adequate hull insurance (inclusive of its equipment and related components) to protect the Owner’s interest and those of any and all parties with a financial interest in the vessel is in force at the time of signing, and the primary risk of loss shall be with The Owner. The Owner is responsible for carrying liability insurance with limits of at least $100,000 per person and $300,000 per occurrence.
The Owner, on behalf of the Owner and the Owner’s insurer, indemnifies and holds JS, its officers, directors, employees, and agents harmless from all claims, damages, and losses, including attorney fees and loss of use, unless caused by the sole negligence of JS, its employees, or agents.
The Owner is responsible for removing personal belongings from the Vessel not usual to the operation of Vessel.
The Owner agrees to allow JS at its sole discretion to take whatever actions it deems appropriate to attempt to safeguard the vessel in the case of threatened or occurring natural events that may place the vessel in peril, and to indemnify and hold harmless JS, its officers, directors, employees, and agents for any damage or loss that results therefrom. The Owner agrees to pay for extraordinary expenses incurred by JS while fulfilling this portion of the agreement.
Any service and repair work to be performed on the vessel will be performed by JS, or any subcontractors retained at the sole discretion of JS. Owner and owner’s agents or subcontractors shall not perform any work on the vessel except with the prior written permission of JS (which permission may be denied at the discretion of JS) and only with proof of proper certificates of insurance required by JS.
Payment shall be due within 15 days after receipt of invoice(s). No vessel shall be removed or launched until payment in full has been received.
JS has a lien pursuant to Title 10 MRSA Section 3851-3852, and pursuant to any other applicable law, on the Vessel for storage, labor and materials furnished by JS to the vessel but not yet paid for by Owner. If Owner fails to pay for the services described herein so as to arrange for launch of the vessel within the storage period described herein, Owner shall owe and must pay JS additional fees for such additional time that the vessel remains in storage at JS’s normal storage rates.