MARINE PRODUCTS GENERAL TERMS AND CONDITIONS OF CONTRACTING WORK, SALES

AND DELIVERIES

Business-to-Business

These General Terms and Conditions of Contracting Work, Sales and Deliveries Business-to-Business have been drawn up Association of Suppliers in the Water Sports Industry.

ARTICLE 1 - DEFINITIONS

The prices stated in these General Terms and Conditions

are exclusive of purchase tax (BTW) and in these conditions

the following words mean:

1. Supplier: seller/contractor,
2. Customer: buyer/client who acts in a professional or

business capacity.

1. Vessel: an object that is constructed to remain in water

and to move in it, including the pieces of equipment that

form part of it and the contents. Also, the hull of a vessel

being built.

1. Open book contract with fixed profit: contract in which a

price is paid for the actual costs involved in implementing

the work, plus a surcharge for general costs and profit.

1. Electronic: by e-mail or website.

ARTICLE 2 - APPLICABILITY

1. These General Terms and Conditions apply to every offer and to each contract of purchase, sales, construction,

preservation, completion work, installation of fittings, repair or maintenance of vessels or parts of vessels, as

well as of all other contracts resulting from these, as

drawn up between the Supplier and Customer.

2. These Terms and Conditions can be translated from

Dutch into a foreign language. Should there be any differences in the texts as a result of the translation, the

Dutch text prevails.

ARTICLE 3 -THE OFFER/THE QUOTATION

1. The Supplier makes the offer orally, in writing or in electronic form.
2. An oral offer must be accepted immediately, otherwise it

will lapse, unless a period has been defined for acceptance.

3. The written or electronic offer is dated and is irrevocable

during the acceptance period or, if a period has not been

defined, for ten working days after the offer date.

4. The offer contains a complete and accurate description

of the items to be supplied and/or the work to be carried

out, including a statement of:

- prices, measurements, weight and delivery date and,

if relevant, engine power and speed;

- variable or fixed price/contract price or open book

contract with fixed profit with or without a recommended price;

- designs, images, drawings, sketches and/or specifications in so far as these are required for the proposal;

- for installing fitted structures and renovations when

directly related to the purchase, the separate price

(Contract price) and the time required for installing fittings and for renovating.

5. The offer states when the work will begin and gives an

indication of the time of delivery.

6. All designs, images, drawings, sketches, specifications,

calculations and other instructions and clarifications supplied together with the offer for installing fittings or for renovation or for repair remain the property of, or continue

to be held by the person supplying them. They are protected under the Copyright Act and may not be given to third parties unless this is necessary for carrying out restoration, repair and/or maintenance work.

7. The offer is accompanied by a copy of these General

Terms and Conditions.

ARTICLE 4 - THE CONTRACT

1. The contract is finalized when the Customer accepts the

offer. If the assignment is granted electronically, the Supplier sends an electronic confirmation to the Customer.

2. The contracts are preferably recorded either in writing or

electronically.

3. If the contract is in writing, a copy should be sent to the

Customer.

4. A contract regarding renovation or repair is related solely

to the work activities that the Supplier can reasonably

have expected.

ARTICLE 5 - THE PRICE AND PRICE ALTERATIONS

1. Unless nothing else has been specifically agreed, there

is a fixed sales price or a fixed contract price and the following provisions are applicable:

1. In the event of the Customer desiring additions or

changes in the agreed work, the Supplier can only

claim a price increase if he has given timely notice of

the price rise to the Customer, unless the Customer

could reasonably be expected to understand this.

1. The Supplier can, at any time, incorporate changes

to taxes, excise duties and other such government

levies in both the agreed fixed and variable prices.

1. The Supplier has the right to charge any extra costs

that arise from changes in the work or an interruption

in the work activities, if they are caused by circumstances not attributable to the Supplier and which

could not have been foreseen by the Supplier when

the price was agreed.

1. If the circumstances are as described in this paragraph under c, and also if the extent of the work

turns out to be greater than foreseen, the Supplier

should immediately suspend work and discuss together with the Customer whether or not to continue

with the work and how to do so. The Supplier is, in

any case, entitled to payment for work already carried

out and to cover any costs related to this work.

1. If supplementary contracts have a particularly significant influence on the price, the delivery time, the

measurements, weight and, if relevant, the engine

power and speed, the Supplier should submit a notification of these facts.

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2. If the parties have agreed on a variable purchase price

or variable contract price, the following provisions are applicable:

1. At the request of either party, each increase or decrease in price will, if this affects the purchase price

or the contract price, be passed on if the increase or

decrease takes place more than three months after

entering the contract and there has been no delivery, or if the intended work has not been carried out

or not yet completely carried out. However, the Supplier shall not pass on the price changes if the order

was placed before the price increase could affect the

purchase price or contract price.

An increase or decrease in price is understood to include a change in the currency exchange rate that

applied when the supplied materials or goods were

paid in relation to the currency exchange rate underlying the purchase price or contract price.

1. Each increase or decrease in salary or other conditions of work in the collective wage agreement or binding pay regulations as applied by the Supplier, and

any increase or decrease in social premiums that occur, can be passed on by the Supplier if these changes affect the contract price and if they take place

more than three months after entering the contract.

1. If as a result of increasing prices as described in this

paragraph, the purchase price or contract price rises

by more than 15%, the Customer has the right to terminate the contract.

3. If the parties have agreed to a recommended price and

the work can be carried out according to the description

applying to it, the price increase or decrease may

amount to no more than 10%.

ARTICLE 6 - DELIVERY TIME/DELIVERY

1. Delivery time is understood to mean the period between,

on the one hand, the date on which the purchase contract is drawn up or alternatively the assignment to build,

renovate, complete construction work or install fittings is

given and, on the other hand, the agreed date of delivery

ex works or depot in the Netherlands.

2. The Supplier is required to inform the Customer in writing, with a statement of the reasons, as soon as it is expected that the delivery time will be overrun and, if possible, to indicate the extent of the overrun.
3. The delivery time is extended by any delayed period that

is a reasonably foreseeable consequence of omissions

on the part of the Customer. An omission is here understood to mean that the Customer fails to comply with a

commitment to the Supplier regarding the vessel.

This is certainly the case if the Customer, despite timely

notice, does not pay the debt owing to the Supplier on

time. In addition, any costs that arise from omissions that

are foreseeable and an expected consequence of the

empirical rules will also be at the expense of the Customer.

4. The Supplier is in default only if the delivery period overruns by more than 15% as a result of causes attributable

to the Supplier. If this period is overrun, the Customer

has right of suspension or termination as laid down in Article 17.

5. The delivery takes place ex-works in the Netherlands.

However, if a trial run takes place prior to delivery, the

delivery is made to the place agreed on for the trial run.

6. The Supplier shall, prior to delivery of the vessel or other

items to be delivered, offer the Customer the opportunity

to inspect (or arrange inspection of) the vessel or other

items referred to.

In the event of repairs, renovations, installation of fittings,

completion work or maintenance work, the Supplier shall

offer the Customer the opportunity to inspect (or arrange

inspection of) the work carried out.

If a trial run (prior to delivery) has been agreed, the Supplier shall offer the Customer the opportunity to take this

trial run either before delivery or completion.

7. The Customer must make use of the opportunity to make

an inspection and/or trial run within twenty working days

of receiving the Supplier’s notification.

If the Customer does not make use of the opportunity offered him within this period of twenty working days, the

vessel or the item is deemed to have been delivered, unless a situation of ‘circumstances beyond the Customer’s

control’ arises.

8. If delivery has taken place or is deemed to have taken

place as described in paragraph 7, the risk regarding the

delivered item is transferred to the Customer.

9. If the Customer fails to take delivery of the vessel or

other items, they are stored, at the cost and risk of the

Customer.

ARTICLE 7 - PARTS TO BE REPLACED AND TRADE-IN

1. The parts to be replaced will be made available to the

Customer after the assignment has been carried out if

the Customer explicitly requested this when giving instructions for maintenance or repair. This does not apply

to parts which must be set apart due to guarantee

claims: in that case, the parts will only be made available

once the guarantee claims have been processed.

In all other cases, the parts to be replaced become the

property of the Supplier, without the Customer being able

to claim payment of any kind regarding this matter.

2. If the Customer, on purchasing a vessel or newly built

vessel or another item, has agreed that he shall trade in

a used vessel or other item, the traded-in vessel or other

item only becomes the property of the Supplier after delivery has actually taken place. If the Customer continues

to use the vessel or the item to be traded in while waiting

for the delivery of the new vessel or item, any damage or

loss, whatever the cause, is at the expense and risk of

the Customer.

ARTICLE 8 - CONFORMITY

1. The Supplier vouches for the delivered item conforming

to the agreement (conformity). The Supplier furthermore

ensures that, taking all circumstances into account, the

item possesses the properties that shall be necessary for

normal use, as well as for special use, if that has been

agreed.

2. The Supplier vouches for the work to be carried out by

him, that it conforms to the contract, and that it is carried

out to a high standard, making use of sound material.

3. Unless otherwise agreed because of specific demands,

the following deviations are possible during implementation of the contract:

± 1% length of the stem and stern;

± 1% over the whole width;

± 1% depth;

± 5% draught;

± 2% headroom under the beams;

± 1% maximum height above water surface;

± 10% weight;

± 5% engine power and

± 10% speed (when equipment is standard).

4. The Supplier is not responsible for defects in the design

of the vessel if this design was not supplied by himself.

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Neither can the Supplier vouch for the usability and

soundness of materials and pieces of equipment for

which the application has been prescribed by the Customer or supplied by him.

If the Supplier knows about or could know about imperfections in design or materials, as referred to in this paragraph, then the Supplier should inform the Customer

about this matter.

5. The Supplier is not responsible for defects which arise

after delivery and which appear to have been caused by

normal wear and tear, inexpert use or lack of care, or

that are the result of alterations that the Customer or

third parties have made to the item that was delivered.

Neither is the Supplier responsible for damage that results from the aforementioned.

ARTICLE 9 - GUARANTEE

1. The guarantee described in this Article ensures the legal

rights of the Customer remain unimpaired.

2. The guarantee concerns restoration, at the boatyard of

the Supplier, of defects that were not noticeable at the

time of purchase/delivery, as well as the restoration of

defects that have arisen from normal usage during the

guarantee period.

3. Article 8, paragraph 4 and 5 apply by analogy.
4. The Customer should consult the Supplier with regard to

implementation of the guarantee.

5. The Customer can, at the Supplier's expense, have essential restoration carried out by a third party, assuming

the costs of doing this are reasonable. When determining

reasonableness, the price levels of the Supplier are relevant.

The third party that is able to carry out essential restoration is chosen by the Supplier in consultation with the

Customer. Restoration carried out by a third party is only

possible:

1. if the Supplier is not able or willing to restore the defect at his own boatyard, or is unable to do that in

time, or

1. if there is a disparity between the essential costs of

transporting the vessel to the Supplier's boatyard and

the costs of restoration at that boatyard, or

1. if the Customer’s circumstances dictate that he cannot be expected to allow restoration to be carried out

at the Supplier's boatyard.

6. The claims to a guarantee lapse if:
7. the Customer does not inform the Supplier about defects as soon as possible after noticing them;
8. the Supplier is not given the opportunity to restore

the defects at a later date;

1. third parties have, without the Supplier’s prior knowledge or permission, carried out work which is related

to the work carried out by the Supplier and on which

a claim is to be made under the guarantee.

7. Unless the Customer has explicitly stated in writing his

wish to abandon the guarantee, the duration of the guarantee period is for:

1. new vessels, also including new parts/fittings, at least

twelve months after purchase;

1. repair and maintenance work taken on by the Supplier or contracted out, including the materials used

to do this, at least three months.

This guarantee does not apply to emergency repairs.

The guarantee includes carrying out, at a later date and

in the correct manner, the assignment that was either not

done or not done well at the boatyard/company of the

Supplier. The guarantee period commences at the moment the vessel is again made available to the Customer.

8. Guarantee periods of six months or less are extended by

a period equivalent to the period when the vessel is not

in use because of winter storage.

ARTICLE 10 - PAYMENT

1. Payment takes place in cash at the time of purchase or

delivery unless otherwise agreed. Making a cash payment also includes transferring the amount due, at the

moment of purchase or delivery, to the bank or giro account indicated by the Supplier, or by paying with any

form of electronic payment recognised by banks.

2. If payment in instalments has been agreed, the Customer should pay according to the instalments and percentages as laid down in the contract.

ARTICLE 11 - OVERDUE PAYMENT

1. The Customer is in default once the payment date has

passed. The Supplier sends a payment reminder once

the date has passed and gives the Customer the chance

to pay within fourteen days of receiving this payment reminder.

If, after the date stated in the payment reminder, there is

still no payment and the Customer is not able to plead

circumstances beyond his control, the Supplier has the

right to charge interest, once the payment date has

passed. This interest is equal to the statutory commercial

interest plus 3% on an annual basis over the amount

due.

2. If the Customer remains in default of payment after the

payment reminder has been sent, the Supplier also has

the right to increase the amount due by adding collection

charges. Extrajudicial costs include all the costs that the

Supplier has to charge for the services of lawyers, enforcement agents and anyone he requires for the recovery of the amount due.

The extrajudicial costs are determined as follows:

15% over the first € 2500 of the amount due;

10% over the next € 2500 of the amount due;

5% over the following € 5000 of the amount due;

1% over the following € 15,000 of the amount due.

3. Any complaints about invoices should be submitted to

the Supplier, preferably in writing and adequately described and explained, within a reasonable period after

the receipt of the invoice in question.

ARTICLE 12 - SECURITY RIGHTS DURING REPAIR AND

MAINTENANCE

1. If payment is not made on time, the Supplier has the

right to retain the vessel in question together with all the

equipment, inventory and other accessories that belong

to it until the Customer has paid the whole of the amount

due, including the costs involved in right of retention, unless the breach does not justify this retention.

2. If the Customer, after receiving the letter of demand, still

neglects to pay the amount due, the Supplier has right of

sale and delivery, without legal intervention, provided:

- the Supplier has demanded payment from the Customer by registered letter and the Customer still has

not paid the amount owing six months after the date

of this registered letter or has disputed the claim in

writing, giving reasons, and

- after the aforesaid period of six months has passed,

the Supplier has served a writ on the Customer demanding that the Customer pay the amount owing

within 15 working days, and payment has still not

been made.

3. The Supplier is subject to the obligation to pay to the

Customer, if possible, any differences between the sales

proceeds and the amount the Customer owes.

4. The Customer is obliged in all cases to agree to deregistration if the vessel is registered in his name.

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ARTICLE 13 - SECURITY RIGHTS WHEN ACCEPTING

WORK

1. A vessel under construction and/or a new vessel as described in the purchase agreement (including all materials

and accessories intended for the vessel) are the property

of the Customer at the moment these items arrive at the

boatyard or elsewhere when in the custody of the Supplier. The condition for this transfer of ownership is that

the items in question are legally transferred to the Supplier by a third party.

2. The Supplier always has a pledge (including the right to

summary execution) on the aforesaid items, as well as

on the insurance monies, in order to pay for damages,

for each unpaid part of the purchase or contract price if

this is still due and also for every loss or damage suffered or to be suffered by him, if the Customer violates

the contract.

3. The Supplier is required, in cases in which his subcontractor has invoked retention of title, to inform the Customer about this, as well as about the moment when the

Supplier complies with the subcontractor’s conditions,

and the items stated in paragraph 1 are legally transferred into the possession of the Customer.

4. The Customer has the right during the period that his

property has not been legally transferred because the

subcontractor invoked retention of title, to defer future

payment obligations.

5. The Customer has the right to require the Supplier (or

someone representing him) to earmark those items that

belong to him, in order to protect what he has agreed

and in order to identify his property. A confirmation sent

by the Supplier to the Customer that the referred to items

have arrived means that the Supplier holds these items

in keeping for the Customer (if necessary, separately).

6. Without prejudicing the Supplier’s pledge, a termination

of the acceptance contract does not lead to the lapse of

the Customer's aforesaid rights to ownership before termination has been settled.

ARTICLE 14 - SECURITY RIGHTS WHEN SELLING NEW

AND USED VESSELS

1. The vessel and/or parts as described in the purchase

contract (including all the materials and accessories intended for the vessel) are deemed to be delivered to the

Customer at the moment the parties have reached

agreement and the Customer has made a down payment.

2. Delivery takes place under retention of title, that is to

say, the items delivered remain the property of the Supplier for as long as the Customer has not met all the payment obligations agreed to in the sales/purchase contract (including the insurance costs referred to in paragraph 4).

3. The risk attached to the item sold is transferred at the

moment of delivery.

4. The Supplier is obliged to insure the vessel (for use by

the Customer) against third-party liability, hull damage

and theft from the moment of delivery as stated in paragraph 1 to the moment at which the Customer pays the

complete purchase price. The Customer pays the cost of

this insurance.

5. The Customer is not entitled to use the items supplied

before the referred to transfer of ownership, other than

for purposes of dealing with the purchase/sale contract,

and is not entitled to sell the items supplied or to dispose

of them in any way until the Supplier has received full

payment.

6. The Supplier, prior to the referred to transfer of ownership, always has access to the items that are his property, wherever they may be located.
7. As soon as the Customer neglects to meet one or more

of his obligations to the Supplier, all claims on the Customer can be made immediately and in full, and the Supplier is entitled, subject to the provisions in Article 11 and

without judicial intervention, to exercise his rights regarding his property in order to claim back his property. In

the latter case, the Supplier is obliged to return the part

of the purchase price already paid by the Customer, after

deducting expenses.

ARTICLE 15 - LIABILITY

1. The Supplier is liable for any damage to the Customer as

a result of omissions that can be ascribed to the Supplier, or to people he employs, or to people appointed by

him to carry out the work assigned to him by the Customer.

2. The Customer is liable for any claims with respect to the

Supplier if the damage can be ascribed to a shortcoming

on the part of the Customer or those associated with

him.

ARTICLE 16 - CIRCUMSTANCES BEYOND ONE'S

CONTROL

1. ‘Circumstances beyond one's control’ is understood to

mean every unforeseeable circumstance which delays or

prevents the implementation of the contract, in so far as

the Supplier is not able to avoid this circumstance, and is

not required to bear the costs, according to the law, the

contract or to generally accepted views.

2. ‘Circumstances beyond one's control’ is also understood

to mean a delay caused by materials not being supplied

on time, if the delay is not attributable to circumstances

that the Supplier could or should have been able to foresee or avoid.

3. If the situation or circumstance beyond one’s control results in the Supplier deferring work, the Customer is also

relieved of his obligations for that period.

4. After terminating the contract on grounds of circumstances beyond one's control, the Supplier is entitled to the

reimbursement of any costs incurred by him for reason of

repair, construction, renovation, installation or completion

work, assuming the costs were incurred before it could

be expected that these circumstances would lead to termination of the contract and in so far as the Customer

has profited from the work done.

5. The Supplier cannot claim circumstances beyond his

control if this situation arises after the agreed delivery

period has overrun by 15% and is caused by his own

actions or by circumstances he is responsible for.

ARTICLE 17- DEFERRAL AND TERMINATION

1. If one of the parties does not comply with their obligation,

the other party is entitled to defer their compliance with

the associated obligation. In the event of partial or inadequate compliance, deferral is only permitted where the

breach justifies that.

2. If one of the parties does not comply with their obligations regarding the contract, the other party is entitled to

terminate the contract, unless the breach is not justifiable

due to the particular nature or minor significance of the

breach. Should the need arise, the Customer is obliged

to agree to deregistration, if the vessel is registered in his

name.

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ARTICLE 18 - INSURANCE FOR NEW CONSTRUCTIONS,

FOR RENOVATIONS AND FOR COMPLETION OF WORK

1. The Supplier is required to take out adequate insurance

for the vessel being built and for the materials intended

for new constructions or renovations, pieces of equipment and other accessories in order to cover the time the

vessel is at the boatyard as well as during the inspection

and trial run up until delivery, the insurance being in his

name and against all risks that a Dutch Bourse Hull Insurance policy for construction work, or an equivalent policy, covers.

2. The Supplier transfers his entitlement to receiving insurance monies to the Customer, the amount payable being equal to the down payment already made by the

Customer. The Supplier informs the insurance company

that this has occurred.

Furthermore, the Supplier is required to warn the Customer if expiry of the insurance contract is imminent. The

Customer is at all times entitled to defer his payments if

the Supplier has not been able to demonstrate his compliance with the aforementioned obligations.

3. The insurance monies to be paid out as the result of a

claim shall be utilised for repairing the damage in a manner and at a cost agreed on by both parties.

4. The provision in the previous paragraph does not apply if

the vessel is declared 'total loss'. In that case, the contract is deemed to be terminated.

ARTICLE 19 - COMPLAINTS

1. Complaints regarding the implementation of the contract

should be made known to the Supplier in written or electronic form and should be described and explained adequately, within a reasonable period, once the Customer

has noticed or should have noticed the defects.

2. Not submitting the complaint on time can lead to the

Customer losing his right regarding the matter, unless it

is unreasonable to blame this lateness on the Customer.

3. If it becomes clear that the complaint cannot be resolved

by mutual consultation, a dispute situation has arisen.

ARTICLE 20 - DISPUTES

Dutch law is applicable in all disputes relating to this contract. Only a Dutch Court is competent to take cognizance of

these disputes.

ARTICLE 21 - DEVIATION FROM THE CONDITIONS

Individual deviations from these General Terms and Conditions, including supplements or additions, are required to be

recorded in writing or in electronic form after agreement by

both Supplier and Customer.