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国际技术转让加设备进口合同

2013-12-16 15:47  来源:纠错 | 打印 | 收藏 | | |

鉴于:

一方为中国_________公司,主要办公地址在中国_________(以下简称被转让方),另一方为_________公司,主要办公地址在_________(以下简称转让方)。

转让方拥有制造_________设备的专有技术,并有资格转让上述技术;

转让方有权并同意向被转让方许可上述专有技术,只在_________厂使用;_________公司购买许可活动所必需的合同材料和合同设备,由_________厂进行许可的制造活动;_________公司和_________厂共同而又分别承担本合同中的义务;

被转让方希望使用转让方的专有技术,只在中华人民共和国_________厂制造_________设备;

被转让方希望向转让方购买合同材料和模块,该模块由要制造的元部件组成,并购买合同设备,使被转让方只在_________厂能制造_________设备;

被转让方应不断履行以购买订单为形式的不同协议,以向转让方购买合同材料;

该购买订单应服从于本合同有关合同材料的条件和条款;

因此,双方授权的代表通过友好协商达成如下协议,特此为证。

第一章 定义

1.1 辅配件指大量商用可购买到的材料,包括易耗品和其它与_________系统安装和系统配套有关的元部件,可由_________厂或转让方提供。

1.2 合同设备指附件十二中规定的由转让方售给被转让方的测试生产设备。

1.3 合同工厂指被转让方用转让方提供的技术文件和专有技术制造合同产品的唯一地点,即中国_________厂。

1.4 合同材料指固定网络设备、转让方软件和辅配件。

1.5 合同产品指合同材料制成整机,经测试可销售给最终用户。合同产品的进一步定义见附件一a。

1.6 最终用户指合同产品的购买者。

1.7 固定网络设备指附件一b中规定的材料,为_________系统的一部分。

1.8 模块指本合同附件一b中规定的_________设备子机及由转让方售给被转让方用于制成合同产品的元部件。

1.9 专有模块指用于制造合同产品的元部件和组件。

1.10 专有资料指本合同条款规定的资料,包括软件、目标代码、源码、测试设备的计算机程序、技术支持、转让方_________专有技术和其它与之相关的文件、数据、材料、及指可向被转让方公开的业务、商业、金融、计划资料。任何专有资料均由转让方标明_________注册秘密专有,证明其属最高级机密类或标明_________保密专有证明其属初级机密类。

1.11 专有权利指专利、版权、专有技术、商业秘密、商标和其它知识产权或指本合同终止或期满前产生的专有权利、软件或其它著作,不论转让方是否获得专利、享有版权或已注册。

1.12 软件指与合同产品配用的目标码计算机程序,以及与合同设备配套使用的测试源码计算机程序,以人们认可的形式提供,需经中间处理过后,由处理机编制。所有软件均按附件十一a与十一b中规定的软件许可证,由转让方许可给_________厂。

1.13 技术支持服务指本合同附件三和四中规定的在合同设备和合同材料和合同产品的制造、检验、调试、操作和其它有关职能方面由转让方向合同工厂人员提供的技术咨询和技术指导。

1.14 技术文件指本合同附件二中规定的与合同设备的操作、维护、调试和检验有关,以及与合同产品的制造有关的所有技术指标、图纸、说明、数据和其它文件。

1.15 技术培训指转让方在转让方工厂和合同工厂为合同产品的制造、检验、调试和操作以及为合同设备的安装、调试、操作和维护,对合同工厂人员所进行的培训。具体的培训内容和要求详见本合同附件四。

1.16 专有技术或技术诀窍指与合同材料和合同设备有关的相应的知识和经验,该知识和经验是转让当时生产中所使用的。专有技术由转让方以技术文件、技术支持和技术培训的形式向合同工厂提供。

1.17 验收标准指技术文件中规定的用以限定合同设备性能的标准。

1.18 合同指本许可证合同及其所有附件。

第二章 合同范围

2.1 转让方同意向被转让方转让制造合同产品的专有技术和技术文件。合同产品的制造按本合同附件十一中的说明,分一、二、三、四、五阶段实施。转让方同意为合同工厂确认并向其销售按当时的技术合作阶段在技术合作等级下制造合同产品所需的合同设备。合同工厂所需的合同设备目录见本合同附件一c。

2.2 转让方给予被转让方许可证和权利,使用转让方的技术文件和专有技术,制造合同产品,使用和/或销售形成的合同产品。合同产品的销售限于中华人民共和国和其它_________制式国家,下列国家和地区除外:_________。

本合同所有许可证均是含提成的(除了附件九中规定的软件许可证是免提成的以外)、非独占的、不可转让的、不可转售的。

2.3 转让方负责按本合同规定向被转让方提供与合同材料和合同设备有关的技术文件和专有技术。

2.4 转让方负责派遣其技术人员来华提供技术支持服务,并对合同设备进行验收。

2.5 转让方应尽最大努力满足合同工厂技术人员的要求,使上述技术人员能掌握1.15条中确定的技术培训。

2.6 除非经转让方书面同意另增场所,否则被转让方只能在合同工厂进行许可的合同产品制造工作。

2.7 转让方同意向被转让方出售其专有模块,被转让方按转让方授权,仅旨于制造完整的合同产品。被转让方同意使用上述专有模块进行上述制造工作。除了被转让方经本合同特许生产的模块外,被转让方应向转让方购买所有被转让方要求的专有模块。

2.8 只有事先得到转让方的书面同意,才能修改或改变转让方许可的用于合同材料或合同产品的专用资料。这有利于专有资料的质量保证、控制和标准化。被转让方同意向转让方支付工程费用,用以审批此改变或改进的内容。被转让方同意给予转让方许可证,用以制造、委托他人制造、使用和销售应用被转让方改变或改进合同材料后生产的产品。被转让方同意向转让方提供关于改变或改进的足够文件,以使转让方能将此改变或改进同样包括在转让方产品中,费用由转让方支付。

2.9 事先未经另一方书面同意,任何一方均不应让渡本合同或本合同中给予的任何权利。然而,为履行转让方在本合同中的义务,转让方可使用其任何分公司、联营公司和/或附属公司的服务。

第三章 本合同的价格

3.1 被转让方根据本合同第二章规定的内容和范围,向转让方支付合同总价和提成费,以美元计价。第3.2条款中所列的价格为第一、二、三、四、五阶段的费用。合同设备价格详见附件十二。辅配件的预算性报价见附件一b,仅供参考。实际价格调整应在每次订货前由双方讨论。

3.2 费用如下:

合同总价_________

技术转让费_________

合同设备价格:测试设备_________;加工设备和工具_________;培训设备_________;合同设备软件许可证费_________。

技术文件费:

设备手册_________;加工资料_________。

技术培训费:

设备操作_________;加工_________;系统_________。

技术支持服务费:设备操作_________;加工_________。

合同设备和合同材料价格为c.f.r.(按1990年《国际商会贸易术语解释通则》定义)_________机场。

技术文件费为c.i.f(按1990年《国际商会贸易术语解释通则》定义)_________机场。

合同材料价格不包括在合同总价中。

3.3 提成费

在本合同各阶段的所有合同材料(辅配件除外)价格上提取提成费。五个阶段的提成费分别为:阶段一_________;阶段二_________;阶段三_________;阶段四_________;阶段五_________。

3.4 模块价格

转让方同意销售模块,使合同工厂能制造固定网络设备。模块价格可修改。新的模块价格应由本合同双方共同商定。

第四章 付款条件

4.1 本合同中规定的一切费用均以美元计价。本合同中每个阶段均在该阶段开始日付款。各阶段开始日定义见本合同第17.2条。

4.2 本合同第三章中规定的合同总价按下列条款由被转让方付给转让方:

4.2.1 合同设备:被转让方收到转让方的合同设备的货物发运通知后,应在预计发运日期前30天内,以全电开的形式通过中国_________银行及_________开具不可撤销的、不可转让的信用证。该信用证格式由双方商定,见附件十三,金额以美元计,为该货运总价的百分之一百(100%),该信用证使中国_________银行负有义务向受益人转让方支付所有款项,有效期截止至双方按本合同第9.1条的规定签署验收合格证后30天。被转让方收到货运单据后用信用证付款:

a、转让方发运货物后,被转让方银行收到转让方的下列单据,经审核无误后,不迟于30天,支付金额的90%。

1)全套清洁空运提单正本一份,副本四份,标明c.f.r._________机场,并根据本合同第6.3款标明运费预付,合同号和运输唛头,并注明通知目的港所在地的中国外贸运输总公司;

2)金额为合同设备价格总价的形式发票六份;

3)金额为合同设备价格90%的商业发票正本六份;

4)即期汇票一式两份;

5)详细包装清单一式六份;

6)原产地证明一式两份。

b、被转让方银行收到转让方下列单据,经审核无误后,不迟于三十天,支付金额的10%。

1)商业发票正本一式六份。

2)双方代表按本合同第9.1条规定签署的验收证明正本一份。

3)即期汇票一式两份。

4.2.2 一至五阶段的技术转让费、技术文件费、技术培训费和技术支持服务费。所有的技术转让费、技术文件费、技术培训费和技术支持服务费均以美元电汇,通过中国_________银行和_________银行分行支付。根据本合同第13.2条,一切应由转让方在中华人民共和国缴纳的所得税应由被转让方预扣并代表转让方向有关税务机构缴纳,付款收据应立即传真和邮寄给转让方,本章所列费用按下列比例支付:

a、合同生效后30天内,被转让方收到下列单据后,被转让方以全电开的方式向转让方支付15%的技术转让费、技术文件费、技术培训费和技术支持服务费。另外,转让方应提供以被转让方为受益人的保函正、副本各一份,格式见附件十四,金额为上述费用的15%。阶段一预定的技术培训课程结束后,本保函即失效。

1)转让方国家有关当局出具的有效出口许可证影印本一份,或转让方有关当局出具的信函一份,声明不需要出口许可证;

2)金额为上述费用15%的商业发票六份。

b、阶段2开始后30天内,收到金额为上述费用25%的商业发票六份及全套标有运费预付和合同号、运输唛头,仅用于支付技术文件费的空运提单后,被转让方以全电开的方式向转让方支付25%的技术转让费、技术文件费、技术培训费和技术支持服务费。

c、阶段3开始后30天内,收到金额为上述费用25%的商业发票六份,及全套标有运费预付和合同号、运输唛头,仅用于支付技术文件费的空运提单后,被转让方以全电开的方式向转让方支付25%的技术文件费、技术培训费和技术支持费。

d、阶段4开始后30天内,收到金额为上述费用25%的商业发票六份,以及全套标有运费预付和合同号、运输唛头,仅用于支付技术文件费的空运提单后,被转让方以全电开方式向转让方支付25%的技术转让费、技术文件费、技术培训费和技术支持服务费。

e、阶段5开始后30天内,收到金额为上述费用10%的商业发票六份,以及全套标有运费预付和合同号、运输唛头,仅用于支付技术文件费的空运提单后,被转让方以全电开方式向转让方支付20%的技术转让费、技术文件费、技术培训费和技术支持服务费。另外,转让方应提供以被转让方为受益人,金额为上述费用的10%的不可撤销的保函正副本各一份,格式见附件十四。阶段五合同产品的最终验收合格后,本保函即失效。

4.2.3 合同设备软件许可证费:合同设备软件许可证费用总额应不迟于合同设备第一次预计装运前30天,电汇支付。

4.3 提成费由被转让方在一至五阶段签订合同材料购买订单后,不迟于30天向转让方电汇支付。但是,提成费和合同材料费发票单独开具。

4.4 对转让方以c.i.f条件发运的任何货物,被转让方同意,由外国保险公司出具的金额为货运值110%,投保了一切险的自行保险证明应为足够的保险凭证。保险期截止至货物运抵中华人民共和国_________机场。

4.5 被转让方应不断履行购买订单,向转让方购买合同材料。被转让方向转让方购买合同材料,其付款条件同本合同第4.2.1规定。但有关合同材料的验收合格证规定见本合同第9.2条。而按第4.2.1.b.2所述,验收合格证参见第9.1条,在此则应参见第9.2条。

第五章 交付方式

5.1 技术文件

5.1.1 转让方以cif中国_________机场向被转让方交付本合同附件二规定的所有技术文件。

5.1.2 当技术文件到达中国_________机场后,该技术文件的所有权和损失风险即由转让方转移至被转让方。

5.1.3 _________机场在技术文件空运提单上所盖的日期戳为技术资料实际交付的日期。

5.1.4 每批技术文件发运前一星期,转让方应将本合同号、预计启运日期、大概包数、大概重量用电传或传真通知被转让方。每批技术文件发运后48小时内,转让方应将本合同号、发运日期、空运提单号、包(件)数量和重量用电传或传真通知被转让方及被转让方指定的中国境内内陆货运公司,并在每批技术文件发运后两个工作日内将下列单据用dhl或快件寄给被转让方及合同工厂:两份技术文件空运提单;两份技术文件装箱单。

5.1.5 转让方提供给被转让方的技术文件用英文写就。

5.1.6 转让方提供给被转让方的技术文件按照本合同附件二检验。

5.1.7 如转让方提供给被转让方的文件有丢失、损坏和/或不完整,转让方在收到被转让方书面通知后30天内,免费将技术文件重寄或补发给被转让方。

5.1.8 转让方提供给被转让方的技术文件应装在适于长途运输、多次转运,具防潮、防雨保护措施的包装箱内。

5.1.9 每包技术文件的包装封面上,应以醒目的英文印刷体标明以下内容:

a、目的地

b、合同号

c、收货人代号

d、唛头

e、重量(公斤)

f、箱号/件号

5.1.10 每包技术文件中,应有两份装箱单。

5.1.11 附件二中规定的合同材料的技术文件和合同设备的技术文件由转让方分别交付给被转让方。

5.1.12 每阶段预定培训日期前30天,转让方向被转让方发运该阶段的技术文件,一式两份。

5.2 合同设备和合同材料

5.2.1 本合同附件十二中规定的所有合同设备和附件一b中规定的所有合同材料由转让方交付。交付条件为c.f.r机场目的地为中国_________机场。

5.2.2 本合同生效日起两个月内,转让方应将初步的装运计划,包括合同号、项号、货物名称、种类、规格、数量、单价、总价、大概总体积,装运日期、批次和装运港(机场)等以及尺寸(长、宽、高、体积)一式六份寄给被转让方。如果有超宽或超重的合同设备或易燃、危险的合同设备,那么还应将超重合同设备的大概重量,易燃、危险合同设备在运输和存放中的特殊要求和应采取的预防措施也一式六份寄给被转让方。

不可分割的成套合同设备每套最大重量为_________公吨,最大尺寸为_________立方米。不迟于首批设备装运前3个月,转让方应将更改后合同设备的装运计划一式七份提交给被转让方,包括合同号、发运号、项号、货物名称、规格、数量、单价、总价、每件大概毛重、净重、每件的大概尺寸(长×宽×高)、体积、每批货物的装运港(或机场)、装运预计日期以及重量超过_________公吨和尺寸超过_________立方米的超大超重合同设备的包装草图和装运危险合同设备时应采取的预防措施,各一式七份。

5.2.3 海运(空运)提单上的日期为合同设备和合同材料的实际交付日期。

5.2.4 根据合同第5.2.1款,转让方在被转让方指定的港口(或机场)将合同设备和合同材料装上被转让方指定的运输工具。转让方将合同设备和合同材料转交给被转让方指定的承运人后,合同设备和合同材料的损失风险、所有权立即由转让方转移至被转让方。

5.2.5 每次装运前,转让方应用电传或传真或电报尽快将下列内容通知被转让方:

a、合同号

b、目的地

c、货物准备就绪日期

d、总体积

e、总毛重

f、总件数

g、装运港(或机场)

h、每件重量超过_________公吨或尺寸超过_________立方米的合同设备和合同材料的总的毛重、体积、名称。

同时,转让方用航空信、传真、快件、电传将下列票据交给被转让方,各一式六份。

a、每大件重量超过_________公吨或尺寸超_________立方米后的装运草图。

b、危险合同设备和合同材料的说明,包括名称、特性、特别保护措施和处置办法。

c、在运输过程中,对温度、湿度、震动等有特殊要求的合同设备和合同材料,采取特殊预防措施的说明。

转让方还应将以上所列单据副本提交目的港所在地的中国对外贸易运输总公司。

5.2.6 转让方应在每批合同设备和合同材料完全装上承运工具前四十八小时内,将合同号、商品名、数量、尺寸、毛重、发票以及预计到达日期,以电传或电报通知被转让方。发运前,被转让方负责办理货物保险。如因转让方未及时通知,致使货物未及时投保,由此产生的任何及所有损失均由转让方承担。如系危险品(例如易爆材料),转让方应将其性质及搬运方法电告被转让方和目的港所在地的中国外贸运输总公司。

第六章 包装和唛头

6.1 所有待运合同设备和合同材料都必须包装坚固,适合所选的长途运输方式及多次搬运装卸。为了确保合同设备和合同材料在运输过程中安全无损,需根据合同设备和合同材料中不同货物的性能和要求,采取合理保护措施,防潮、防锈、防震、防腐蚀。被转让方与转让方承认合同设备和合同材料由精密电子组成,因此,将尽力保证这些货物有防雨、防热、防湿、防震保护。

如被转让方要求提供长途海运用包装及无防护内陆运输和存放用包装,转让方应提供包装,费用另加。转让方对包装不当负有责任,并对因包装不慎或不当导致的锈损负有责任。

6.2 转让方应在每包散装附件上标上合同号、合同设备和合同材料主机名、附件名、安装图上附件的位置号及附件号。备件、工具和易损件部件在上述标识基础上,应再标上备用件、工具和易损件字样。

6.3 在合同设备和合同材料的包装箱相邻的四个面上,转让方应用印刷标签,以醒目的印刷体英文字标出下列内容:

a、合同号

b、唛头:如目的地为中华人民共和国_________,则唛头为:_________

c、目的地

d、收货人代号

e、装箱单号

f、毛重/净重(公斤)

g、箱号/件号

h、尺寸(长×宽×高;英寸/厘米)

i、合同设备名称和项号

如果合同设备和合同材料重量大于等于2公吨,其重心位置和起重位置应以英文标出,并采用国际贸易中通用的适当运输标志和图案标在包装箱两侧,以便于装卸和搬运。

根据合同设备和合同材料的特点及在装卸、运输过程中的不同要求,应在其包装上醒目地用英文及国际贸易惯例中规定的适当符号和示意图,标上小心轻放、箭头朝上、保持干燥等字样。

6.4 无包装合同设备和合同材料应用金属标牌标出上述内容。对装在甲板上运输的大件货物,应提供充分的支撑和防震缓冲措施。

6.5 合同设备的每件包装箱内,应装有以下单据:

a、质量合格证书一式两份

b、详细装箱单一式两份

c、对必须进行组装的合同设备和部件,应有两份详细的组装图。

6.6 每件合同材料的包装箱上应附详细装箱单两份,质量证明两份。

第七章 技术服务和技术培训

7.1 转让方应派遣熟练、健康和有能力的人员去合同工厂根据本合同规定提供现场技术支持服务。在中国提供技术支持服务的人数、专业、任务、内容和期限详见本合同附件三。转让方声明,技术支持服务和技术培训足够用来培训被转让技术人员制造合同产品。

7.2 转让方技术支持服务人员提供出入境签证的方便及在华的工作方便。转让方技术支持服务人员在华待遇见本合同附件三。

7.3 转让方技术支持服务人员在华支持服务期间应遵守中华人民共和国法律,遵守合同工厂的规章制度。

7.4 被转让方有权派遣其技术人员或操作工人去转让方相关工厂培训。培训的人数、专业、内容、时间和要求详见本合同附件四。

7.5 转让方应为被转让方培训人员提供出入境签证方便和培训条件。培训人员在转让方国家待遇详见合同附件四。

第八章 初步检验和初步验收

8.1 转让方将尽其最大努力,保证本合同中由转让方提供的合同设备和合同产品的制造和检验按以下规定实施。

8.2 对所有由转让方提供的合同设备,转让方应向被转让方提供保证声明书。合同材料的保证见本合同第十章。

8.3 合同生效日起三个月内或相关阶段开始后三个月内,转让方应通知被转让方相关阶段检验和测试设备的初步计划,并提前一个月通知被转让方检验和测试的确切日期。被转让方有权自费派遣_________人,为期_________天,去转让方工厂观看对主要合同材料的检验和测试,了解设备的包装情况。但上述检验不应严重影响正常生产。

如发现合同设备和合同材料的质量不符合本合同规定的标准,或发现包装不当,被转让方人员有权表明意见。转让方应予以充分考虑并采取必要措施保证设备质量。

被转让方人员不应会签任何质量证书。被转让方人员参与质量检验,这既不免除本合同规定的转让方的担保责任,也不能代替合同设备运抵中华人民共和国后,被转让方对其的检验工作。

8.4 合同设备和合同材料抵达目的港或合同工厂后,被转让方应委托中国进出口商品检验局对包装、外观、质量进行检验,并尽可能地对技术规格目测初检。

检验后,由中国进出口商品检验局出具检验证明,该证明应作为检验证据。

转让方有权自费派遣其检验人员参加开箱检验。

被转让方应提前4周以电报或电传或传真通知转让方检验的预定日期和地点。转让方检验人员应在预定检验日期前到达上述地点。

如果因转让方自身原因,未能在上述规定时间内派遣其技术人员去上述地点,则由被转让方在转让方人员缺席情况下进行检验。在这种情况下,由中国进出口商品检验局出具的检验证书应作为检验证据。

8.5 在对合同设备或合同材料的初步检验中,若发现有任何损坏、数量短缺、规格错误,证实皆系转让方疏忽所致,则被转让方有权在检验后凭中国进出口商品检验局出具的检验证书向转让方提出索赔。转让方收到附证明的索赔书后,应立即免费维修或替换损坏或短缺的合同设备和合同材料。

第九章 最终验收检验测试

9.1 技术文件和合同设备的最终验收

9.1.1 为证明根据本合同附件二提供的专有技术和技术文件是完整的、正确的,证明转让方许可的合同材料是能组装、测试的,转让方应自费派遣其技术人员去合同工厂参加相应阶段合同设备的验收测试。被转让方的技术人员也应参加这些验收测试。

9.1.2 双方应尽其最大努力完成验收测试。

9.1.3 验收测试时,若合同设备达到了验收标准,则双方应签署四份合同设备验收合格证书,每方各执两份。

9.1.4 若合同设备未达到验收标准,双方应共同分析验收测试失败的原因,澄清验收测试失败的责任。

a、若验收测试失败的责任在于转让方负责,则转让方应在第一次验收测试后4周内,再派其技术人员进行第二次验收测试,并承担其在第二次验收测试期间所发生的一切费用。

b、若验收测试失败的责任在于被转让方负责,则被转让方应为转让方技术人员提供往返机票并承担第二次验收测试期间其在华的食宿费用和当地交通费。

第二次验收测试时,若合同设备达到了验收标准,则双方应签署四份合同设备验收合格证书,每方各执两份。

a、若因转让方的责任,第二次验收测试时,合同设备未达到验收标准,转让方应采取各种措施,并在第二次验收测试后六周内,再派其技术人员进行第三次验收测试,并承担其在第三次验收测试期间所发生的一切费用。

b、若第二次验收测试失败的责任在被转让方,则被转让方应为转让方技术人员提供往返机票,并承担第三次验收测试期间他们在华的食宿费和当地交通费。

第三次验收测试时,若合同设备达到了验收标准,则双方应签署四份合同设备的验收合格证,每方各执两份。

9.1.5 第三次验收测试时,若合同设备未达到验收标准,双方应共同分析原因并继续验收测试。若二个月后,还达不到验收标准,转让方将对有缺陷的合同设备进行修理,或更换以符合本合同规定的技术指标、质量和性能标准的新设备。转让方与被转让方应在合同工厂座谈讨论解决此类问题的方法。

9.2 合同材料的最终验收

9.2.1 合同材料每次运抵合同工厂后,被转让方人员应立即对其进行检验。

9.2.2 转让方有权自费派其检验人员参加开箱检验。

9.2.3 被转让方应提前两周用电报、电传或传真通知转让方检验的预定日期和现场。如到了检验日期转让方未能派其人员去现场,由被转让方在转让方人员缺席情况下进行检验。

9.2.4 检验后,如确定合同材料的数量或质量与订单不符,转让方应在检验后20个工作日内接到数量短缺或不符货运要求的书面通知。转让方在收到通知后的30天内或合理时间内尽快根据情况,发运短少部分的合同材料或符合要求的合同材料。

9.2.5 检验顺利完成后或缺陷部分改正后,双方应签署验收合格证。

9.2.6 本第九章不包括运输时及运输后出现的损坏,其补救责任在被转让方。如被转让方要求,转让方应提供合理的帮助。

9.3 合同产品的最终验收

将每阶段首批发运的合同材料组装成首批合同产品,按照技术文件中提供的技术指标,用合同设备对该首批合同产品进行测试。如该首批合同产品测试工作圆满完成,即意味着合同产品最终验收合格。整机经测试符合全部技术指标,测试工作胜利完成,即可认为完成了合同产品的验收测试义务。

第十章 担保和保证

10.1 转让方保证按本合同向被转让方提供的合同设备、合同设备用品测试软件和技术文件为当时的技术,适于制造合同产品;保证在本合同期间将免费向被转让方提供与此相关的更新后的测试软件和技术文件。

10.2 若被转让方发现转让方提供的本合同设备、测试软件和技术文件验收不合格,转让方应在收到被转让方的书面通知后30天内,向被转让方免费发送所要求的合格的合同设备、测试软件和技术文件,转让方向被转让方提供改正了的合同设备、测试软件和技术文件,这应为被转让方唯一的补救措施。

10.3 各阶段合同设备验收测试胜利完成后,今后成功制造合同产品责任即成为被转让方的责任。但是如双方认为完全因为转让方提供的模块有缺陷,或文件有缺陷致使合同设备不符质量标准,转让方应纠正完全由转让方导致的任何缺陷。转让方承认转让方向被转让方提供的所有专有模块中,证实完全因转让方原因致使模块有缺陷的故障率不超过5%。

10.4 如完全因转让方能控制的因素致使转让方未能按本合同附件二中规定的日期交付合同设备、软件或技术文件,则转让方应为延期交付合同设备、软件和技术文件,向被转让方缴付罚金,费率如下:

第一至第四周,每迟交付一周,付相应阶段延期交付货物价格的0.5%。

自第五周起,每迟交付一周,付相应阶段延期交付货物价格的1%。

上述总罚金不应超过相应阶段延期交付货物价格的5%。迟交天数不足一周,以一周计算。

10.5 转让方按本合同第10.4款的规定向被转让方缴付罚金,并不因此即免除转让方继续交付合同设备、软件和技术文件的义务。根据此条款缴付罚金是转让方迟交货物,被转让方因而获得的唯一补救措施。

10.6 如果一定阶段用的转让方的合同设备、软件或技术文件延期交付六个月以上,完全是因转让方所能控制的原因所致,则被转让方有权终止本合同。在该情况下,转让方应向被转让方退回被转让方为该阶段所付的全部费用,并加付5%的年息。在这种情况下,按本条款选择赔偿即为被转让方的唯一补救措施。

10.7 合同设备保证

合同设备保证见本合同附件八。

10.8 软件保证

软件保证和软件维护向合同产品的最终用户提供,转让方软件许可证也一并提供。

被转让方同意向最终用户销售合同产品应以最终用户执行上述软件许可证为前提。

转让方将向被转让方提供必要和适当的测试软件,用以制造符合本合同提供的技术指标的合同产品。转让方对合同设备软件更改或更新,如双方认为此更改或更新为被转让方生产合同产品所需,转让方将向被转让方提供。

10.9 转让方将全部非_________生产的合同设备和辅助设备的原制造商保证书转给被转让方。该合同设备和辅助设备的保证期应由该合同设备和辅助设备的制造商确定。被转让方应从制造商或其在当地的维修办事处获得该合同设备和辅助设备的保证和/或维修服务。保证期过后,被转让方应负责与制造商或其在当地的办事处取得联系,获得对该合同设备和辅助材料的服务和/或维护支持。

所有与合同设备和辅助设备一并提供的计算机软件均以照原样为基础提供,无保证。

第十一章 专利、商标和保密

11.1 转让方保证他对根据本合同提供给被转让方的全部专有技术和技术文件拥有合法的所有权,并有权许可被转让方。对向被转让方提出的任何索赔要求,声称:本合同中_________提供的设备侵犯了经中华人民共和国法律认可,具有法律约束力的专利,转让方应为被转让方辩护。如果(1)被转让方立即书面通知转让方索赔要求;(2)未经转让方同意,被转让方不派律师出庭;(3)由转让方完全控制辩护及与该索赔要求有关的全部谈判;(4)被转让方为转让方辩护提供合理的资料和帮助,那么法庭最终裁决被转让方因此将偿付的理赔费和/或损失清偿费,由转让方付清。如果诉讼结果为禁止使用或销售_________提供的设备,不向被转让方另行收费,则由_________选择,或者为被转让方获取使用_________提供的设备的权利或销售合同产品的权利;或者以相同的未侵犯专利的材料替换;或者接受对_________提供的设备的退货,并对退回的设备,向被转让方退还原购货款价。在任何情况下,对由于侵犯专利或有侵犯专利嫌疑而引起的意外或间接损失,被转让方不负有责任。

11.2 被转让方同意对转让方提供的专有技术和技术资料自本合同生效日起保密10年。如果上述专有技术或技术文件的部分或全部由转让方或任何第三方公布于众,(前提为上述解密不违反任何保密义务),那么被转让方不再受保密义务中对已泄密事项的约束。经转让方事先同意被转让方可因部件国产化需要,只将转让方技术文件的该部分内容泄密。但在转让方对此泄密授权前,为保证对其专有资料的保护,转让方可要求其采取某些保护措施。

11.3 对被转让方提供的与合同材料的专有技术、技术及生产有关的注有需保密的资料,转让方应予以保密,保密期限为本合同生效日起10年。

11.4 本合同终止或期满后,被转让方无权使用附件七规定的转让方的商标或商品名称(或任何易混淆的相似商标或商品名称)。本合同终止或期满后,双方应真诚协谈,从而决定转让方是否向被转让方销售合同模块及其组件或部件。

11.5 被转让方承认_________及其相应的中文名称是转让方及其使用_________或相应中文名称的子公司和分公司的商品名称的主要特征;承认_________标志,_________和相应中文名或任何英语或汉语的派生词都是转让方与被转让方制造的产品的重要商标,是与该产品配套服务的重要商标。转让方给予被转让方权利使用本合同附件七(转让方的商标)所列的转让方的商标。转让方的商标只许可用于被转让方在合同工厂制造并在中华人民共和国销售的合同产品。被转让方同意使用转让方发明的标志,这并不意味着将标志的拥有权或正当利润转让给了被转让方。除非由本合同授权或由转让方另行书面授权,否则被转让方无权在任何产品上、广告上或在销售或促销中使用任何转让方发明的商标。

11.6 除非有关法律要求,否则在未征得对方书面同意前,任何一方不得将本合同内容泄露给任何第三方。

11.7 转让方不将其专利或版权的许可证或权利授于被转让方。但是转让方同意在本合同期内就其在中华人民共和国的任何专利或版权,不向被转让方提出质疑,这只限于该质疑会妨碍被转让方使用本合同给予的权利。被转让方承认任何时候专有技术均系转让方财产。

11.8 如严重违反本合同保密条款,则非违约方有权终止本合同。

11.9 被转让方同意将许可的商标只在中华人民共和国制造和销售的合同产品上使用。(任何在中华人民共和国以外国家销售的合同产品不应含转让方的商标和/或商品名称。)

第十二章 质量标准

12.1 被转让方根据转让方所定,提供充分的场地、设施、人员和工艺规程,用以制造合同材料、存放模块、备用件和其他元器件;用以测试合同材料成品、保证性能和提供其他服务。

12.2 被转让方同意由被转让方实施的任何所许可的活动和被转让方使用转让方商标销售的合同产品,应与转让方实施的合同活动以及转让方制造的与合同产品相应的产品,质量相同、工艺相等。所有许可活动的实施应按附件二所列文件中所述的标准及本合同中转让方提供的专有资料和技术支持。活动的质量、工艺和性能标准应与转让方所进行的类似活动至少一样。为判断被转让方是否遵照并坚持本文要求,转让方有权在一切合理时间检查合同工厂、合同材料以及所许可的活动开展的方法。经转让方要求,被转让方应及时将其有关工作具代表性的样本提供给转让方,费用由转让方支付。

12.3 被转让方应在转让方的监督下制定并保持一质量保证常规计划。该质量保证计划应经双方同意,不迟于合同鉴定后120天实施。被转让方应作缺损记录,将每季度缺损记录报送转让方。

12.4 任何时候,如转让方确定在被转让方销售的合同产品上被转让方的工作未能达到转让方要求的质量、工艺和性能标准(见技术文件),转让方可将此认定书面通知被转让方,被转让方同意立即改正缺陷。如被转让方收到该书面通知后,30天内未能改正该缺陷,被转让方应暂停发运此有缺陷的合同产品,双方共同真诚讨论改正该缺陷的方法。如被转让方收到该书面通知后60天内未能改正缺陷,则转让方可暂停本合同给予的商标权,和/或可暂停所有许可的活动。

12.5 被转让方和转让方发现合同产品有缺陷,在该有缺陷的合同产品上,被转让方对转让方商标的使用权,应立即自动暂停。

12.6 被转让方对专用资料或合同材料作任何改变或改进,这只可在双方同意下进行。

12.7 对被转让方提供的任何辅助设备,被转让方应提供转让方该设备手册、技术文件并提供识别用于合同材料的该元件、材料清单,以便转让方与被转让方共同确定该元部件是否符合转让方的质量、性能技术指标。被转让方将向转让方提供合格的测试结果,证明该元部件符合质量和性能指标。如果转让方有书面要求,被转让方应自费提供给转让方该元部件样品,供审批。转让方将尽其最大努力,在转让方收到合格测试结果后30个工作日内答复被转让方的报批报告;在逐项商讨后决定的合理时间内,对被转让方报批的样品给予答复。如收到转让方的书面通知,表示该元部件不符合转让方的质量和性能指标,则被转让方不能使用该元部件。

12.8 为保证合同材料具有满意的质量和技术性能,被转让方应向转让方购买所有被转让方要求的模块,本合同中被转让方特许生产的模块除外,且被转让方无权以其它材料代替任何模块。被转让方同意只将上述模块用于合同材料,以及用于推进许可的活动。

第十三章 税收

13.1 凡与本合同有关或在执行本合同时,根据有效的税法由中华人民共和国政府向被转让方征收的一切税应由被转让方支付。

13.2 凡与本合同有关或在执行本合同时由中国政府根据_________国政府与中华人民共和国政府间就所得税避免双重课税和防止偷税漏税的协议,向转让方征收的一切税应由转让方支付。上述协议中包含的税中,根据中华人民共和国有关外资企业所得税法向转让方征收的预扣税款应从本合同第4.2条规定的每次付款中扣除,且应由被转让方代表转让方向中国有关税务机构缴纳。如果转让方向被转让方提交有关机构出具的减免全部或部分税款的文件证明,则被转让方应按有关税务机构的要求,扣除调整后的金额。被转让方应在缴纳上述税后,向转让方提交由中华人民共和国有关税务机构出具的税收收据原件一份。

13.3 凡与本合同有关或在执行本合同时在中华人民共和国以外征收的一切税费应由转让方支付。

第十四章 不可抗力

14.1 签约双方中任何一方,由于但不只限于战争、严重水灾、台风和地震及其他签约方无法控制的不可抗力事故而影响履行本合同的义务,本合同的执行期应相应延长,延长期限相当于事故所耽误的时间。

14.2 责任方应尽快将发生不可抗力事故的情况以电传或电报挂号通知对方,并于事故发生后14天内以航空挂号信将有关当局出具的证明(若有的话)递交给另一方确认。不可抗力事故一旦排除或消失,责任方应尽快以电传或电报挂号通知对方,并向对方发出航空挂号信,确认不可抗力事故的消除。如不可抗力事故延续120天以上,双方应尽快通过友好协商解决继续执行合同所面临的问题。

第十五章 争议的解决

15.1 凡由本合同引起的或与解释或执行本合同有关的任何争议,双方应首先通过友好协商来解决。如果协商开始后90天内,双方还不能解决此争议,则任何一方均可将此争议提交仲裁。

15.2 若通过上述友好协商双方仍解决不了争议,则应将该争议提交_________商会仲裁院,由该仲裁院根据其仲裁程序,最终裁决。

15.3 仲裁裁决是终局的,对双方都具有约束力。

15.4 除非由仲裁小组裁决,否则,仲裁费用由败诉方负担。

15.5 在仲裁过程中,除了提交仲裁的那部分合同外,双方应继续履行合同。

第十六章 合同生效及其他

16.1 本合同由双方授权代表签署,各方保证均有合法的权力产生并签订具有法律约束力的合同。如必要,双方应向本国政府申请批准本合同,以中国和_________政府中最后一方必需的批准日期为本合同生效日期。双方应尽最大努力争取在本合同签字后90天内获得所必需的批准,并用电传或电挂通知对方,用信件确认已经获得所有必须的批准。

16.2 如本合同自签字之日起6个月内仍不能生效,双方有权取消本合同。

16.3 本合同自合同生效日起有效期10年,有效期满后除非双方同意续订,否则本合同自动失效。

16.4 本合同期满时,双方发生的未了债权和债务,不受合同期满的影响。债务人应对债权人继续偿付未了债务。

16.5 本合同为_________文本,一式四份,每方各执两份。本合同的任何译文无法律效力。

16.6 本合同由第一章至第十七章,附件一至附件十三组成,本合同附件内容为本合同不可分割的组成部分,具有同等法律效力。如果本合同条件和条款与附件的文字发生矛盾,应以本合同条款和条件的文字为准。本合同受中华人民共和国法律约束。被转让方保证本合同在中华人民共和国法律下有效。

16.7 对合同条款的任何变更、修改或增减,须经双方授权代表签署本合同书面修正案后生效,该修正案应作为本合同不可分割的组成部分,具有同等法律效力。

16.8 执行本合同期间,双方所有通讯应以_________文进行,正式通知应以书面形式,用航空挂号信邮寄,一式两份。

16.9 任何情况下,转让方或被转让方均不对意外、或间接损失负有责任。损失包括但不限于本合同中另一方丧失利润或收益、资本费用、替代产品费用、设施或服务费用、停工费用。

16.10 本合同双方同意真诚执行合同,遵从一切适用的法律。任何一方若偏离此良好行为,另一方有权终止本合同。如本合同在合同期末前终止,所有技术文件应退还给转让方,且专有资料应自本合同生效日起保密10年。

第十七章 联络会议

17.1 为顺利实施合同,转让方与被转让方应召开联络会议。

17.2 联络会议期间确定的每个新阶段的起始日期一到,如双方同意,即开始合同的下一阶段。被转让方和转让方对合同产品验收后,且被转让方又达到了附件三中规定的阶段实际生产产量,并能同时保持附件二所列文件中规定的质量标准,被转让方有资格进入下一阶段。如到了联络会议期间确定的时间,被转让方没有资格进入下一阶段,应推迟该阶段起始日期,并对照新的起始日期,重新安排付费时间。

17.3 联络会议的时间、地点、参加人员身份规定如下:

第一次联络会议:日期:合同生效日起_________天内;期限:_________个工作日;地点:_________;人数:转让方工程师_________名;目的:a.项目范围检查;b.考察场地。

第二次联络会议:日期:第二阶段开始前30天;期限:_________个工作日;地点:_________;人数:被转让方人员_________名,合同工厂人员_________名;目的:a.考察工厂;b.深化项目;c.检查项目实施情况。

第三次联络会议:日期:第三阶段开始前30天;期限:_________个工作日;地点:_________;人数:转让方工程师_________名;目的:a.考察场地;b.深化项目;c.检查项目实施情况。

第四次联络会议:日期:第四阶段开始前30天;期限:_________个工作日;地点:_________;人数:被转让方人员_________名,合同工厂人员_________名;目的:a.技术讨论;b.深化项目;c.检查项目实施情况。

第五次联络会议:日期:第五阶段开始前30天;期限:_________个工作日;地点:_________;人数:转让方工程师_________名;目的:a.考察场地;b.检查项目实施情况。

第十八章 法定地址

18.1 转让方:

名称:_________公司

地址:_________

传真:_________

18.2 被转让方:

名称:_________公司

地址:_________

电传:_________

电话:_________

传真:_________

18.3 合同工厂:

名称:_________

地址:_________

电话:_________

传真:_________

18.4 双方授权代表签字:

本协议和附件构成了双方就此合同内容的全部理解,取代了先前所有的讨论、协议和陈述,不论是口头的还是书面的,不论转让方与被转让方执行与否。

转让方(盖章):_________ 被转让方(盖章):_________

授权代表(签字):_________ 授权代表(签字):_________

_________年____月____日 _________年____月____日

签约地点:_________ 签约地点:_________

附件

附件一: 附件一a合同产品目录(略);附件一b合同材料目录(略);附件一c合同设备目录(略)

附件二: 资料目录(略)

附件三: 技术支持

转让方根据被转让方的要求可以派遣各类技术人员进行生产人员管理,促使整个工厂运转正常,并在该组织内监察全部产品的质量。担任该项工作的人员在该领域将完全胜利且富有经验,他们会帮助并全力负责有关方面的工作。下列技术人员也将同样提供服务:工程技术生产助理、制造工程师、质量工程师、管理人员(经理)、电子工程师和销售人员,下面就上述人员的责任进行说明。

工程技术生产助理应完全掌握产品组装和测试方法,他将全权负责有关从最初到最高级_________技术方面的事务,并在生产过程中对具体工序进行测试、校准。任何有关产品安装和测试的问题应提交工程技术生产助理评议解决。

制造工程师应熟知组装过程的各个方面,他将决定编码颜色的可用性和使用,便于掌握的生产辅助工具及有助于提高组装效率的标准化工序。任何有关组装生产工序的问题应尽快提交制造工程师评议解决,不让产生的任何问题导致停产。

质量工程师应精通与产品质量保证、质量控制及产品工艺检查有关的所有领域,他将制定并实施具体的质量计划,并对工艺方面的问题进行量化,与关键工艺和产品人员就这些问题商议解决办法。销售人员素质问题应提交质量工程师并采取措施保证他们的素质,总之,他将负责全部产品的质量和故障消除。

管理人员(经理)应负责全部的组装操作及上述各人员的工作,协助他们尽力支持工厂生产出所能实现的最好产品。

如果纯粹由于转让方错误的技术指导引起合同产品及合同设备损坏,转让方将负责维修,更换及发运损坏的合同设备或合同产品。

下列几项内容将包括在转让方提供的技术支持中:

1.为实施合同,转让方将派遣熟练、健康及胜任的技术人员到合同工厂提供技术支持。他们到达及离开合同工厂的确切日期应由双方根据合同材料组装和测试的实际进度商议确定。

2.转让方的技术人员应向被转让方的技术人员就合同材料的组装、测试、检查及操作原理进行技术指导。

3.转让方的技术人员应帮助被转让方的技术人员在技术支持期间在合同工厂培训被转让方的技术人员。

4.转让方技术人员的技术支持费用见合同第三章,转让方应对其技术人员展开第三章规定的技术支持活动提供交通,及食宿费。被转让方将支付转让方技术人员附加技术服务的来回交通费。

5.转让方技术人员前往中国的一个半月前,转让方应用电传、传真或电挂把转让方技术人员的资料包括姓名、性别、生日、国籍、专业及公司名通知被转让方,以使被转让方帮助办理签证。

6.转让方技术人员前往中国的7天以前,应用电传、传真或电挂把转让方技术人员的姓名,到达时间及飞机航班通知被转让方。

7.转让方的技术人员前往合同工厂以前,双方应共同商讨并确定一个技术服务的工作日程,而转让方的技术人员应该根据合同工厂的安排和双方确定的工作日程展开技术支持。

8.在合同工厂期间,技术人员的工作期限应该从他们到达合同工厂的那天算起直到他们离开合同工厂那天为止。

9.被转让方应免费向转让方的技术人员提供技术支持所必需的工具及合适的办公室。

10.被转让方应依据中华人民共和国的规章、条例和习俗帮助转让方的技术人员安排办理技术支持所必须的工具及仪器的进出口手续。

11.被转让方应采取必要的措施保障转让方的技术人员在合同工厂逗留期间的人身安全。

12.被转让方应为转让方技术人员在合同工厂提供必要的通信设施,诸如电话、电传及传真,费用由转让方支付。

13.转让方应对管理和组织提出建议。双方必要及重要的联络渠道将建立起来。

转让方应提供下列技术支持:

1.制造工程师各阶段_________天

2.质量工程师各阶段_________天

3.管理人员各阶段至少每月_________天

4.电子工程师总共_________天

附件四: 合同技术培训的内容和要求

1.转让方在培训开始前3个月应向被转让方提交一份初步培训计划。双方应在被转让方技术人员前往培训地点之前商讨并制定一个最终的培训计划。由转让方主持的技术培训应根据双方制定的培训计划展开。

2.转让方应免费向被转让方的技术人员提供所必需的工具,技术资料及合适的办公室。住宿由转让方安排。

3.转让方应采取必要的措施在被转让方逗留期间保障他们的人身安全。

4.培训费用见合同正文第三章。

5.培训开始前一个半月,被转让方应以电传、传真或电报通知转让方关于被转让方技术人员的个人资料,包括姓名、性别、出生日期和专业,以使转让方协助办理他们的签证。

6.被转让方技术人员应遵守转让方国家的法律和法令,遵守培训所在地工厂的规章制度。

7.培训应根据合同的实施计划分阶段进行。具体的培训时间由双方协商确定。

8.培训语言为英语,所有技术资料为英语。

9.各阶段培训中,被转让方人员不变(不能在培训期间更换人员)。

10.培训将按照预定时间表完成。

11.任何附加培训将在第一轮培训结束后决定,并应单独谈判。

12.所有培训都将由转让方的_________人员在转让方生产工厂进行。

13.被转让方受训人员应至少有两年生产和测试产品的经验,英语流利,技术熟练。

14.被转让方人员在转让方工厂受训后,将负责培训被转让方工厂的人员。

15.被转让方工厂的生产人员应至少有两年生产和测试产品的经验。

16.被转让方将支付其培训人员的交通及食宿费,转让方将负责被转让方培训人员在培训地的交通。(人员要求、培训项目及时间表略。)

附件五: 补充商务条款

1.检查:转让方应有权派遣其有资格的人员或指定的代表访问合同工厂或其他存有关于被转让方、合同工厂或其他相关公司、代理商或组织的书籍和记录的场所,并有权审阅、查核这类记录中关于合同工厂组装的各种合同产品每台整机的质量、可靠性及符合验收标准的程度的信息。

2.技术服务费率:如果被转让方要求进行额外的技术培训,对技术文件、合同设备、合同材料和软件进行补充咨询或在合同工厂为被转让方组装工作提供其他支持等额外的技术服务,转让方应对所要求的专门的技术服务提供报价或提供一段合理期限的现场技术服务。从合同生效之日起_________年内,对此种支持的费率将是:转让方提供的技术服务人员每人每天_________美元,外加技术服务人员从其常规办事地点到合同工厂的商务级来往旅行费用。对于来自中国境外的技术服务人员,被转让方将支付该技术服务人员到合同工厂的一天旅行费及回到其常规办事地点的一天旅行费。_________年期限以后,合同合作方将根据类似产业的技术服务费协商出一个附加技术服务的费率。

附件六: 合同产品的转让方商标和被转让方商标(略)

附件七: 合同材料价格(略)

附件八: 合同设备的保证

1._________保证其_________材料和工艺完好无损,保证期为从装运日算起_________个月,或最终验收通过后_________月。

2._________生产的合同设备应有_________个月的保证期,从最终验收完成那天算起。

3.被转让方负责指出初步的故障线索,负责硬件、固件及软件的搬动、更换及把出现故障的机器用防损包装运到转让方指定的维修地。

4.在转让方维修地维修或更换出故障的_________合同设备在整个保证期内是免费的。

5.把_________合同设备邮寄、空运或以其它运输方式发运到指定的转让方维修地,所化费用由被转让方承担;维修件或更换件运回被转让方的费用由转让方承担。

6.在保证期内发生故障,转让方应免费在保证期内或维修或更换该_________合同设备。所维修或所更换的项目保证期顺延相同一段时间,转让方通过更换所获得的故障件将是转让方的财产。被转让方唯一的补偿及义务是不再索回送去维修或更换的_________合同设备。

7.本保证不包括:

7.1 故障、损坏或失灵源自_________。

7.1.1 _________合同设备使用不当。

7.1.2 使用失误、事故、疏忽,环境或现场条件不符_________合同设备指标。

7.1.3 不经认可任意维修、改造或在_________合同设备内换用未经认可的部件。

7.1.4 不可抗力事故。

7.1.5 不经转让方认可,擅自安装、优化或把_________合同设备从原安装位置移开。

7.1.6 天线、线路或互连设施任何部分的失灵。

7.1.7 被转让方不依据转让方的设备及软件维修协议维护_________;或没有按照一位或数位有关培训完成人员的指导,及技术资料的要求进行其他维修。

7.1.8 把_________合同设备从被转让方运送给转让方途中所遭的损坏。

8.本书面保证由转让方提出,只限于最初购买方,并只在中华人民共和国生效。经转让方书面认可,本保证的有效条款可以提供给用户。

9.本保证将取代所有其他具体排除的保证,无论是明确的还是暗示的,包括但不限于,为一个特殊目的所暗含的商用性和适用性保证。转让方不对间接的,事故性的,特殊的重大损坏负责;但是,如果任何适用于本协议的司法法律不允许这类损坏完全不受指控,那么本条款应如此理解,即有必要给予转让方任何指控的全部有利方面或者这类法律所允许的对上述损坏指控的限制。另外,转让方只对本合同规定的保证负责,并明确表示不对_________承担责任。(合同产品保证由被转让方提供给用户。)

附件九: 目标代码计算机程序许可证

为保持合同简洁与一致,关于合同与附件是指本许可证合同及其附件。本合同所有定义均适用于此。

1.范围

根据上述确定的合同,除了交换测试软件之外,用于其他转让方交付的设备中的目标代码计算机程序,将在许可证基础上由转让方向被转让方提供,用打印或其他可能的机器可读的形式,包括但不限于磁带、磁盘、纸带或只读存储器装置。被转让方将因此成为关于这些计算机程序的被转让方。转让方提供这些程序及被转让方的接受都将在下面的条件下进行,否则应依据转让方书面同意的其它条件。

2.计算机程序为转让方所有

本许可证下交付的任何计算机程序原件及被转让方复制的部分或全部程序均为转让方所有。

3.软件许可证

为与许可证合同执行一致,转让方给予被转让方不含提成、非独占及不可转让的许可证,在转让方的所有权下转让根据以下条款与条件使用交付给被转让方的每个计算机程序(以下简称转让程序)。每个此类许可证授权被转让方只以机器可读形式在转让方提供的单机中使用转让程序。该许可证不可由被转让方分配,再转让或者以其它方式转让给他方,被转让方无权复制全部或部分转让程序,除了本文表明的以外。

4.复制、保护及保密的权利

4.1 任何在此提供的转让程序可以全部或部分复制(只用于支持的目的),以打印或机器可读的形式为被转让方内部使用;但是除了无需事先获得转让方的书面同意,而在一份许可证下的任何时候存在至多两份打印复制件或两份机器可读复制件以外,在被转让方的设备中不应备有软件复制件。

4.2 被转让方同意把转让方提供的任何有关转让程序的版权通知,包括在它部分或全部的所有同样复制件中。转让方的版权通知将以几种形式出现,包括机器可读形式。在转让程序上使用版权通知并不说明该程序已经出版或以其它方式公布了。

4.3 被转让方同意对提供给它的任何形式的转让程序保密,不向任何除转让方及被转让方雇员以外的人提供或使其获得转让程序的部分或全部。

4.4 被转让方同意在不使用时将转让程序加锁存放。

5.期限

5.1 被转让方可在收到书面通知_________个月后终止在此转让的任何许可证。

5.2 如果被转让方不遵守许可证合同或附件的任何条款和条件,转让方可终止该许可证,且如被转让方在转让方书面通知后_________天内未能纠正违约行为,该终止即生效。

5.3 该许可证终止后,4.3条中的义务仍将存在。

6.专有资料的退还

在任何许可证终止后_________个月内,被转让方要提供给转让方一个文件证明;表示对每个转让程序,已尽其所能与所知,除了经转让方书面同意由被转让方保留的一个用以归档的复制件外,将其原件和其他完整或部分复制的复制件,不论以何种形式,包括更新以后的任何复制件,退还给转让方或已销毁。

7.权力

本文包含的任何内容都不应该认为是直接或暗示地或以其他方式给予转让任何专利和专利使用的许可证;除非被转让方在转让方的专利及专利使用下有一份非独占、免提成费的许可证,也只应在转让方提供的设备中,使用该许可证提供的各转让程序。

附件十: 源代码计算机程序许可证

为保持合同简洁与一致,关于合同与附件的内容应是指本许可证合同及其附件。

本合同的所有定义在此均适用。

1.范围

根据上述确定的合同,用于合同设备的源代码计算机程序只在被授权的_________人员的指导下执行许可证中授权的活动时,转让方才向被转让方在许可证的基础上交付。这些源代码程序可有多种可能的机器可读形式,包括但不限于磁带、磁盘、纸带或只读存储器(rom)装置。被转让方就此成为该计算机程序的被转让方。转让方向被转让方交付此种程序以及被转让方接受同样的程序只在下列条件下进行,否则需经转让方书面同意。本源代码许可证适用于所有转让方提供的交换机测试软件。被转让方无权对源代码程序进行变动或修改。

2.计算机程序为转让方所有

本许可证中交付的计算机程序原件(包括由此更新、修改或派生的)及被转让方对全部或部分复制的拷贝,均为转让方所有。

3.软件许可证

为保持许可证合同执行的一致,转让方按本许可证规定的条件与条款在转让方版权下,给予被转让方无提成、非独占、不可转让的许可证,以使用交付给被转让方的每个计算机程序(下文称作源代码程序)。转让软件许可证费见第三章。该许可证不可由被转让方分配,再转让或者以其他方式转让。除了本文表明的以外。被转让方无权全部或部分复制源代码程序,按照许可证规定的条款与条件,被转让方必须只从_________购买所有必需的专用测试设备、进行培训并获得技术服务。

4.保护及保密

4.1 被转让方同意将源代码程序在不使用时加锁保存。

4.2 被转让方同意对提供给它的源代码程序保守机密,不对任何除转让方及被转让方雇员以外的人提供,使其获得此源代码程序或其中一部分。

4.3 除了本文说明的之外,被转让方同意在许可证活动中不以任何方法或在任何条件下对并非确需知道的人全部或部分或通过任何媒介公开或转让源代码程序或其内容,并确保那些已知源代码的人员保护该源代码程序。

4.4 被转让方同意不尝试用任何方法包括但不限于逆向工程发现附加的专有信息。

4.5 被转让方同意对于源代码程序及其中的信息或其部分不通过图示(不限于此)向任何第三方发表、泄露、传播、提供或以其中的其它方式使第三方得到。

4.6 被转让方如发现存在违反许可证第4节的可疑情况应立即书面通知转让方。被转让方同意自费努力调查该情况。

4.7 被转让方理解并同意任何转让方提供的专有资料和其他材料上存在的任何版权说明并不表示已对之公开。

4.8 被转让方同意安全保存源代码程序并采取一切必要措施使源代码程序免于偷盗、复制和未经授权的分发、公开及传播。

5.期限

给予被转让方的许可证期限将从许可证合同生效之日开始,除非出现下列情况而终止,正常终止将在本许可证签署之日起十年后。

6.终止

6.1 被转让方收到书面通知一个月后可终止在此授予的任何许可证。

6.2 被转让方如不履行本许可证或附件的任何条款和条件,转让方可终止该许可证,且如转让方书面通知后10天内被转让方不采取行动纠正,该终止即生效。

6.3 如出现任何不履行合同的行为,转让方可立即终止本许可证。以下任何情况都构成不履行合同的行为:

(1)被转让方严重违反本许可证;或

(2)被转让方不按时根据本许可证交付任何数目的欠款并在转让方给予书面通知后30天后仍不付款;或

(3)根据中国法律被转让方宣布破产或停止业务活动;或

(4)被转让方停止执行本合同的活动;或

(5)在政府或公众授权下任何个人、机构对源代码程序或其部分进行干涉、征用、没收、处罚、强占或取走;或

(6)控制被转让方活动的所有制,股份、权力发生实质性变化。

6.4 任何许可证终止后,第4节义务仍然有效。

7.专有资料的归还

如果转让方终止许可证,被转让方应采用任何或所有的补救措施。许可证终止后一个月以内,被转让方要向转让方提供一个关于每个源代码程序的证明文件,证明被转让方已尽其所能,尽其所知,将其原件或任何形式的复制件的全部或部分,包括在更新后的复制件退还给转让方或已销毁。

8.许可证权力

本文包含的任何内容都不应被认为是直接或暗示地或以其他方式给予被转让方任何专利和专利使用的许可证,除非被转让方在转让方的专利及专利使用下有一份非独占、免提成费的许可证,也只应在转让方提供的设备中使用该许可证提供的各转让程序。

9.许可证费、提成费及税收

对本许可证下的转让软件,其许可证的软件许可提成费、及技术文件、技术支持、技术培训的费用见本合同第三章。

10.审查

在强调许可证及许可证合同条款一致的情况下,转让方有权定期在正常工作时间内对所有专有资料、记录与报告,作适当的审查。该审核也包括对专有资料妥善保密措施的检查。

附件十一: 合同产品的制造(略)

附件十二: 合同设备目录及价格(略)

附件十三: 信用证格式(略)

附件十四: 各阶段保函格式(略)

附件十五: 数量及价格折扣协议(略)

this agreement is made the _________ day of _________between(1)_________ a corporation incorporated under the laws of _________ andhaving its principal place of business at _________ ("the buyer")and(2)_________ a corporation incorporated under the laws of _________ andhaving its principal place of business at _________ ("the supplier")whereas the buyer desires to construct and complete a _________ plant at_________ with design and engineering of the supplier and to purchase anequipment or facility for _________ ("the contract plant")and obtain fromthe supplier a license on _________ and the supplier has agreed to suchworks and services upon and subject to the terms and conditionshereinafter appearing.now it is hereby agreed as follows:

article 1. definitions

the following words and expressions shall have the meanings herebyassigned to them:

the following words and expressions shall have the meanings herebyassigned to them:

"acceptance" means the acceptance by the buyer of the contract plantwhich certifies the supplier's fulfillment of the contract in respect ofany performance test required thereunder in accordance with article 25.3(acceptance)hereof.

"commissioning" means the operation of the contract plant or any partthereof by the buyer following the precommissioning pursuant to article 24(erection and precommissioning)hereof, which operation is to be carriedout by the buyer as provided in article 25.1 (commissioning)hereof, forthe purpose of carrying out the performance test.

"contract" means this agreement entered into between the buyer and thesupplier, and the contract documents shall together constitute thecontract, and the term "the contract" shall in all such documents beconstrued accordingly.

"contract documents" means this agreement and all appendices hereto(including any amendments thereto), and each shall be read and construedas an integral part of the contract between the buyer and the supplier.

"contract plant" means the plant or facility named in this agreementand more particularly described in the appendix 7-2 (technicalspecifications)hereto to be designed and engineered by the supplier andto be constructed by the buyer under the contract.

"contract price" means the sum specified in article 12.1.1 hereof,subject to such additions and adjustments thereto or deductions therefromas may be made pursuant to the contract.

"day" means calendar day of the gregorian calendar.

"defect liability period" means the period of validity of theguarantees given by the supplier as specified in article 27.1 (guaranteesand defect liability period)hereof, during which the supplier isresponsible for defects, errors or mistakes with respect to the equipment,the technical documents or the technical services, as provided in articles27.2, 27.3 and 27.4 hereof respectively.

"effective date" means the date that the contract enters into fullforce and effect upon fulfillment of all the conditions stated in article4 (effective date)hereof.

"equipment" means the equipment, machinery, apparatuses, facilities ortheir spare parts as listed in appendix 7-1 (scope of works and supply)hereto which are to be supplied by the supplier and which are to beincorporated by the buyer under the contract in such major and importantpart of the contract plant as may be crucial to its performance.

"expert" means any person who may be appointed from time to time byagreement between the buyer and the supplier to make a decision on or tosettle any dispute or difference between the buyer and the supplierreferred to him by the parties pursuant to article 7.2 (reference toexpert)hereof.

"last major shipment" means the last shipment of the basic lot of theequipment as specified in article 22.2 (delivery)hereof.

"month" means calendar month of the gregorian calendar.

"buyer's representative" means any person appointed by the buyer inthe manner provided in article 18.1 (buyer's representative)hereof toperform the duties delegated by the buyer.

"performance test" means the test specified in article 25.2(performance test), to be carried out to ascertain whether the contractplant or a specified part thereof is able to attain the processperformance guarantees specified in appendix 5 (process performanceguarantees)hereto in accordance with the provisions of article 25.2(performance test)hereof.

"precommissioning" means the testing, checking and other worksspecified in article 24 (erection and precommissioning)which are to becarried out by the buyer in preparation for the commissioning.

"sub-contractor" means any person to whom execution of any part of theworks, including preparation of any design or supply of any equipment, issub-contracted directly or indirectly by the supplier, and includes itslegal successors or permitted assigns.

"supplier's engineer" means any person nominated by the supplier and assigned to the contract plant to provide the technical services.

"supplier's representative" means any person nominated by the supplierin the manner provided in article 18.2 (supplier's representative)hereofto perform the duties delegated by the supplier.

"technical documents" means design, drawings, specifications, partslist, calculations, manuals and instructions for installation, operationor maintenance and test certificates, barchart programme which arerelevant to the works and are to be provided by the supplier, listed inappendix 7-1 (scope of works and supply)hereto.

"technical services" means the technical services provided by thesupplier's engineer at the contract plant, pursuant to appendix 7-5 (thesupplier's engineer's technical services and working conditions)hereto.

"technical service fee" means the fee for the technical services asspecified in article 12 (contract price and technical service fee)hereof.

"time for delivery" means the time within which each batch of thetechnical documents or each lot of the equipment is to be delivered to thebuyer by the supplier in accordance with articles 21.5 (delivery oftechnical documents)and 22.2 (delivery)hereof and the relevantprovisions of the contract.

"works" means the supply of the equipment and performance of thedesign and engineering of the equipment and the contract plant, thetechnical services, and any other works and services to be carried out bythe supplier under the contract as specified in appendix 7-1 (scope ofworks and supply)hereto.

article 2. contract documents

2.1 contract documents:subject to article 2.2 (order of precedence)hereof, this agreementand the appendices (and parts thereof)hereto are intended to becorrelative, complementary and mutually explanatory of one another. thecontract shall be read as a whole.

2.2 order of precedence:in the event of any ambiguity or conflict between this agreement andthe appendices, this agreement shall precede the appendices.

article 3. interpretation

3.1 language

3.1.1 all contract documents and all correspondence and communicationsto be given and all other documentation to be prepared and supplied underthe contract shall be written in the governing language specified inarticle 6 (governing law and language)hereof and the contract shall beconstrued and interpreted in accordance with that language.

3.1.2 if any of the contract documents is prepared in any language inaddition to the governing language, the contract documents in thegoverning language shall prevail, unless otherwise specified in article 6(governing law and language)hereof.

3.2 singular and plural

the singular shall include the plural and the plural the singularexcept where the context otherwise requires.

3.3 headings

the headings and marginal notes in the contract documents are includedfor ease of reference, and shall not constitute a part of the contract,nor affect its interpretation.

3.4 persons

words importing persons or parties shall include firms, corporationsand government entities.

3.5 incoterms

"incoterms" means the international rules for the interpretation oftrade terms published by the international chamber of commerce (1990edition).

unless inconsistent with any provision of the contract, the meaning ofany shipping term and the rights and obligations of the parties thereundershall be as ascribed by "incoterms".

3.6 entire agreement

subject to article 17.4 hereof, the contract constitutes the entireagreement between the buyer and the supplier with respect to the subjectmatter of the contract and supersedes all communications, negotiations andagreements (whether written or oral)of the parties with respect theretomade prior to the signing date of this agreement.

3.7 amendment

no amendment or other variation of the contract shall be effectiveunless it is in writing, is dated, expressly refers to the contract, andis signed by a duly authorized representative of each party hereto.

3.8 independent contractor

the supplier shall be an independent contractor performing thecontract. the contract does not create any agency, partnership, jointventure or other joint relationship between the parties hereto.

subject to the provisions of the contract, the supplier shall besolely responsible for the manner in which the works are performed. allemployees, representatives or sub-contractor engaged by the supplier inconnection with the performance of the contract shall be under thecomplete control of the supplier and shall not be deemed to be employeesof the buyer, and nothing contained in the contract or in any sub-contractawarded by the supplier shall be construed to create any contractualrelationship between any such employees, representatives or sub-contractorand the buyer.

3.9 non-waiver

3.9.1 subject to article 3.9.2 below, no relaxation, forbearance,delay or indulgence by either party in enforcing any of the terms andconditions of the contract or the granting of time by either party to theother shall prejudice, affect or restrict the rights of that party underthe contract, nor shall any waiver by either party of any breach of thecontract operate as a waiver of any subsequent or continuing breach of thecontract.

3.9.2 any waiver of a party's rights, powers or remedies under thecontract must be in writing, dated and signed by an authorizedrepresentative of the party granting such waiver, and must specify theright and the extent to which it is being waived.

3.10 severability

if any provision or condition of the contract is prohibited orrendered invalid or unenforceable, such prohibition, invalidity orunenforceability shall not affect the validity or enforceability of anyother provisions and conditions of the contract.

article 4. effective date

4.1 the contract shall enter into full force and effect on the date

when all of the following conditions have been fulfilled:

(a)this agreement has been duly executed for and on behalf of thebuyer and the supplier;

(b)acquisition by the supplier of an export licence from itsgovernment authorities;

(c)acquisition by the buyer of an import licence from its governmentauthorities;

(d)issue of the letter of credit and the letter of guarantee asspecified in article 13 (terms of payment)hereof;

each party shall use its best efforts to fulfill the above conditionsfor which it is responsible as soon as practicable.

4.2 if the contract has not become effective pursuant to article 4.1above within _________ months from the date of signing this agreement due toreasons not attributable to the supplier, the parties shall discuss andagree on an equitable adjustment to the contract price and the time fordelivery and/or other relevant conditions of the contract.

article 5. notices

5.1 all notices to be given under the contract shall be sent to thebuyer or the supplier, as the case may be, at the address set forth below:_________to the buyer:_________attention:_________ to the supplier: _________ attention:_________

unless otherwise stated in the contract, all notices to be given underthe contract shall be in writing, and sent by personal delivery, airmailpost, special courier, cable, telegraph, telex, facsimile or electronicdata interchange (edi)to the address of the relevant party set out above,provided that:

5.1.1 any notice sent by cable, telegraph, telex, facsimile or edishall be confirmed within two (2)days after dispatch by notice sent byairmail post or special courier, except as otherwise specified in thecontract.

5.1.2 any notice sent by airmail post or special courier shall bedeemed (in the absence of evidence of earlier receipt)to have beendelivered ten (10)days after dispatch and in proving the fact of dispatchit shall be sufficient to show that the envelope containing such noticewas properly addressed, stamped and conveyed to the postal authorities orcourier service for transmission by airmail or special courier.

5.1.3 any notice delivered personally or sent by cable, telegraph,telex, facsimile or edi shall be deemed to have been delivered on the dateof its dispatch.

5.1.4 either party may by ten (10)days' notice to the other party inwriting change its postal, cable, telex, facsimile or edi address oraddressee for receipt of such notices.

5.2 in this article, notices shall include any approvals, consents, instructions, orders and certificates to be given under the contract.

article 6. governing law and language

6.1 the governing law of the contract shall be the laws of _________.

6.2 the governing language of the contract shall be english.

article 7. settlement of disputes

7.1 arbitration

7.1.1 if any dispute or difference of any kind whatsoever shall arisebetween the buyer and the supplier in connection with or arising out ofthe contract including without prejudice to the generality of theforegoing any question regarding its existence, validity or termination orthe execution of the works, whether during the progress of the works orafter their completion and whether before or after the termination,abandonment or breach of the contract, the parties shall seek to resolveany such dispute or difference by mutual consultation.

7.1.2 if the parties fail to solve such dispute or difference bymutual consultation, then either party may give to the other party anotice that a dispute or difference exists, specifying its nature, thepoint (s)in issue and its intention to refer the dispute to arbitration.if the parties fail to resolve such dispute or difference by furtherconsultation within a period of thirty (30)days from the date upon whichsuch notice of dispute has been given, the dispute or difference shall bereferred to and finally settled by arbitration under the rules ofconciliation and arbitration of the international chamber of commerce(icc)by one or more arbitrators (not to exceed three)who shall beappointed under such rules. the award of the arbitrator(s)shall be finaland binding on the parties.

7.1.3 if the tribunal shall consist of three arbitrators, one of themshall be nominated by each party and the third shall be chosen by mutualagreement by the parties within thirty (30)days of the nomination of thelast of the two arbitrators nominated by the parties. if the parties failto agree upon the third arbitrator within such period, the said thirdarbitrator shall be nominated in accordance with the rules agreed by thebuyer and the supplier under article 7.1.2 above.

7.1.4 the place of the arbitration shall be _________ (name of a third country).

7.1.5 the language of the arbitration shall be the language specified in article 6 hereof.

7.2 reference to expert

7.2.1 notwithstanding the provisions of article 7.1 (arbitration)above save insofar as they relate to mutual consultation, either party maygive a notice to the other of its desire to refer to an expert any disputeor difference falling within any one or more of the categories set out at(a)to (g)(inclusive)below. on each such occasion and within fourteen(14)days of such notice being given or such longer period as the partiesmay agree, the parties may by mutual agreement:(i)appoint an expert to which the dispute or difference shall bereferred; or(ii)request the international chamber of commerce (icc)actingthrough its international centre for technical expertise (icte)to appointan expert to which the dispute or difference shall be referred, whichappointment will be made within twenty-one (21)days of the request beingmade to the icte.if the parties fail to reach agreement on either of paragraphs (i)or(ii)above within the above specified period, the dispute or differenceshall not be referred to an expert, without prejudice to the right ofeither party to refer such dispute or difference to arbitration forthwithin accordance with article 7.1 (arbitration)above.

the relevant disputes or differences which may be referred to suchexpert shall include a dispute or difference:

(a)that may arise concerning approval of design provided in article21 (design and engineering)hereof; or

(b)that may arise concerning a change in the works provided inarticle 36 (change in works)hereof, including the grant of an extensionof time, extra payment to the supplier and any amendment or modificationto the supplier; or

(c)that may arise concerning the valuation of any additional cost orexpense incurred by the supplier and/or any additional time required as aresult of the suspension provided in article 38 (suspension)hereof; or

(d)that may arise concerning the certification of sums allegedly dueto the supplier; or

(e)that may arise concerning the results of test and/or inspectionprovided in article 23 (test and inspection)hereof; or

(f)that may arise as to whether time for delivery under article 22(supply and delivery)hereof is attained, whether the buyer's failure toissue an acceptance certificate under article 25. 3 (acceptance)hereof isjustified, or what extensions of time under article 37 (extension of timefor delivery)hereof should be given; or

(g)any other dispute or difference which the parties specificallyagree from time to time to refer to the expert.

7.2.2 the expert shall inform the parties of his decision in writingwithin thirty (30)days of the closing of submissions made to him by theparties and in any event within sixty (60)days of the date of hisappointment.

7.2.3 if either party is not satisfied with a decision by the expertas provided in article 7.2.2 above, such party may within fourteen (14)days after receipt of such decision give a notice to the other partystating that it will not abide by such decision. in this case, suchdispute or difference may be referred to and finally settled byarbitration pursuant to article 7.1 (arbitration)hereof.

if neither party gives such notice to the other party within fourteen(14)days after receipt of such decision, such decision shall become finaland binding on the parties.

7.2.4 unless the parties agree otherwise, the proper fees and costs ofthe expert shall be shared equally by the parties.

7.2.5 if any dispute or difference is referred to an expert hereunder,neither party shall refer such dispute or difference to arbitration untileither (a)the expert fails to produce a determination within the periodstipulated at article 7.2.2 above or (b)one party gives a notice to theother party pursuant to article 7.2.3 above.

7.3 notwithstanding any reference to an expert or arbitrationhereunder,(a)the parties shall continue to perform their respective obligationsunder the contract unless the parties otherwise agree; and(b)the buyer shall pay to the supplier any monies due and owing tothe supplier.

article 8. scope of works

8.1 general

the supplier's obligations cover the grant of license for use of theproduction technology and know-how, the performance of the basic designand detailed design, procurement and supply of the equipment including thespare parts thereof, the provision of the technical services and trainingand the performance of other associated work and services for and relatingto the contract plant, all as specifically set forth and limited to inappendix 7-1 (scope of works and supply)hereto. the supplier shallprovide the services of engineers, designers and other persons necessaryfor the performance of the works and shall proceed to and pursue thecompletion of the works in accordance with the plans, procedures,specifications, drawings, codes and standards and any other documents asspecified in appendix 7-2 (technical specifications)hereto.

8.2 equipment and spare parts

the supplier agrees to procure, inspect and expedite the equipment fordelivery fob vessels at ports of shipment (or cif ocean ports ofdestination)in accordance with the terms of article 22.2 (delivery)hereof.

within the contract price for the equipment specified in article 12(contract price and technical service fee)hereof, the supplier agrees tosupply as a part of the equipment those spare parts as required for theerection, installation and the commissioning of the equipment up to theacceptance as per the list of the spare parts specified in appendix 7-1(scope of works and supply)hereto. the supplier shall procure, inspect,expedite and deliver these spare parts in the same manner as specified for the equipment in accordance with the terms of the contract.

8.3 spare parts for operation

in addition to the stipulations in article 8.2 (equipment and spareparts)above, the supplier also agrees to supply spare parts required forthe operation and maintenance of the equipment for the period specified inappendix 7-1 (scope of works and supply)hereto. however, the buyer shallpay to the supplier the price of such spare parts, including other costsand expenses relating to the supply of the same, in addition to thecontract price for the equipment specified in article 12.1.1 hereof. suchprice and other terms and conditions for the supply of such spare partsshall be separately agreed in writing between the buyer and the supplierwhen the identity, specifications and quantities of the said spare partshave been determined between the buyer and the supplier.

8.4 technical documents

the supplier agrees to prepare and submit to the buyer the technicaldocuments as per the list of the technical documents as specified inappendix 7-1 (scope of works and supply)hereto in accordance with theterms of the contract.

8.5 technical services

the supplier agrees to provide the technical services at the contractplant as specified in appendix 7-5 (the supplier's engineer's technicalservices and working conditions)hereto in accordance with the terms ofthe contract.

8.6 training

the supplier shall be responsible for conducting the training of thebuyer's operating and maintenance personnel as specified in appendix 7-1(scope of works and supply)hereto. the maximum number of man-months,places and periods of training and the responsibility for associated costsand expenses are as specified in appendix 7-1 (scope of works and supply)hereto. all other conditions including the program for and nature of thetraining shall be agreed between the buyer and the supplier.

article 9. supplier's manner of execution of works

9.1 the supplier shall execute and complete the works with due careand diligence in accordance with the contract.

9.2 the supplier shall comply with all laws in force in the countrywhere the works are carried out, whether national, provincial, municipalor otherwise, affecting the performance of the contract and binding uponthe supplier. the supplier shall indemnify and hold harmless the buyerfrom and against any and all liabilities, damages, claims, fines,penalties and expenses of whatever nature arising out of or resulting fromthe violation of such laws by the supplier or its personnel, including thesub-contractors and their personnel but without prejudice to article 10. 1(information and data)below.

article 10. buyer's responsibilities

10.1 information and data

the buyer shall provide the supplier with all information and data asmay be required by the supplier concerning the basic design of thecontract plant as specified in appendix 7-1 (scope of works and supply)hereto. the buyer shall ensure the correctness and exactitude of all suchinformation and/or data except where otherwise expressly stated in thecontract.

10.2 design and documents

the buyer shall provide such design, drawings and/or. documents forthe contract plant (other than those provided by the supplier)asspecified in appendix 7-1 (scope of works and supply)hereto and shallobtain the supplier's consent to them before the buyer proceeds furtherwith its works. upon request by the supplier, the buyer shall allow thesupplier to have access to other buyer's works for review by the supplier.

10.3 equipment and materials

the buyer shall procure and supply all equipment, materials andfacilities required for the contract plant except for the equipmentsupplied by the supplier pursuant to appendix 7-1 (scope of works andsupply)hereto. the buyer shall obtain all necessary import permits andtake delivery of all the equipment including spare parts to be supplied bythe supplier at the designated point of fob (or at the designated oceanports of destination in case of cif)and undertake all import clearanceand subsequent transportation thereof to the contract plant.

10.4 construction and commissioning

the buyer shall be responsible for all the civil works, construction,erection, testing, the precommissioning, the commissioning and operationof the contract plant in accordance with the technical documents and underthe relevant technical services to be rendered by the supplier asspecified in appendix 7- 5 (the supplier's engineer's technical servicesand working conditions)hereto.

10.5 cost and expenses

the buyer shall execute and complete its work and services at its owncost and with due care and diligence in accordance with the contract.

article 11. time schedule

11.1 without prejudice to article 26 (delivery time guarantee)hereof,the supplier shall proceed with the works in accordance with the timeschedule specified in appendix 7-4 (time schedule)hereto subject to anyextension under article 37 (extension of time for delivery)hereof. thebuyer shall also proceed with its work in accordance with the timeschedule as specified in appendix 7-4 (time schedule)hereto.

article 12. contract price and technical service fee

12.1 the buyer hereby agrees to pay to the supplier the contract priceand the technical service fee in consideration of the performance by thesupplier of its obligations hereunder, as specified below:

12.1.1 the contract price shall be _________ (currency).the breakdown of the contract price is as follows;

(1)paid up license fee(2)total design fee 1)basic design fee 2)detail design fee 3)total(3)price of equipment

the detail breakdown of the contract price is as specified inappendix-i (breakdown of contract price)hereto.

12.1.2 the technical service fee is as specified in appendix 7-5 (thesupplier's engineer's technical services and working conditions)hereto.

12.2 the contract price shall be a firm lumpsum not subject to anyalteration except in the event of a change in the works specified inarticle 36.1 hereof or as otherwise provided in the contract.

12.3 the contract price includes the supply of spare parts required upto the acceptance of the contract plant as described inarticle 8.2 hereof and appendix 7-1 (scope of works and supply)hereto.however, the contract price does not cover the supply of any other spareparts, including those recommended by the supplier as required for theperiod of _________ years' operation of the contract plant from the date ofthe acceptance as described in article 8.3 hereof and appendix 7-1 (scopeof works and supply)hereto. the buyer shall pay to the supplier the priceof such spare parts, including the purchase price therefor and other costsand expenses relating to the supply of the same, in addition to thecontract price specified in article 12.1.1 above. such price and otherterms and conditions for the supply of such spare parts shall beseparately agreed in writing between the buyer and the supplier when theidentity, specifications and quantities of the said spare parts have beendetermined in accordance with article 8.3 hereof.

article 13. terms of payment

13.1 the contract price and the technical service fee shall be paid bythe buyer to the supplier at the times, in the manner, and in accordancewith the provisions of appendix 2 (payment terms)hereto and appendix 7-5(the supplier's engineer's technical services and working conditions)hereto, respectively.

13.2 the buyer shall, not later than _________ days after the signingdate of this agreement, deliver to the supplier a letter of credit and aletter of guarantee issued by a first class bank acceptable to thesupplier, in the form of appendix 3 (form of letter of credit/guarantee)hereto and shall maintain such letter of credit and such letter ofguarantee throughout the contract.

in the event that the contract changes after the issue of the letterof credit and the letter of guarantee, the buyer shall arrange for suchletters to be amended to reflect such change as soon as possiblethereafter.

13.3 no payment made by the buyer hereunder shall be deemed toconstitute acceptance by the buyer of the works or any part(s)thereof.

13.4 in the event that the buyer fails to make any payment on itsrespective due date or within the period set forth in the contract, thebuyer shall pay to the supplier interest on the amount of such delayedpayment at the rate(s)shown in appendix 2 (payment terms)hereto for theperiod of delay until payment in full, whether before or after judgment orarbitral award.

article 14. bonds

14.1 issuance of bonds

the supplier shall provide the bonds specified below in favor of thebuyer at the times, and in the amount, manner and form specified below.

14.2 advance payment bond

14.2.1 the supplier shall deliver to the buyer not later than_________ days after the effective date, a bond in the form of appendix4-1 (advance payment bond)hereto issued by a bank acceptable to the buyerfor a sum equal to the amount of the advance payment calculated inaccordance with appendix 2 (payment terms)hereto.

14.2.2 the amount of the bond shall be reduced in proportion to theprice for the equipment under article 12.1.1 hereof actually delivered bythe supplier from time to time and shall automatically become null andvoid upon the date of the last major shipment.

14.2.3 the bond shall be returned to the supplier immediately afterits expiry.

14.3 performance bond

14.3.1 the supplier shall deliver to the buyer not later than _________days after the effective date, a bond in the form of appendix 4-2(performance bond)hereto for the due performance of the contract issuedby a bank acceptable to the buyer for a sum equal to _________ per cent ofthe contract price. the bond shall be reduced to _________ per cent of thecontract price on the date of the last major shipment and shallautomatically become null and void _________ months after the date of thelast major shipment or _________ months after the date of the acceptance ofthe contract plant, whichever comes earlier.

notwithstanding the foregoing, if the defect liability period isextended with respect to any part of the equipment in accordance witharticle 27.2.7 hereof, the supplier shall arrange for the bond to remainvalid until the expiration of the defect liability period with respect tosuch part in an amount equal to _________ per cent of the contract price ofthat part.

14.3.2 the bond shall be returned to the supplier immediately afterits expiry.

14.4 retention bond

14.4.1 if the contract provides for retention money to be withheld bythe buyer from the payments of the contract price, the supplier mayprovide to the buyer a retention bond(s)in the form of appendix 4-3(retention bond)hereto issued by a bank acceptable to the buyer for a sumequal to the retention money withheld by the buyer.

upon receipt of the bond(s), the buyer shall immediately pay to thesupplier all the retention money withheld up to the sums guaranteed by thebond(s).

14.4.2 the bond shall automatically become null and void on _________months after the date of the last major shipment or the date of theacceptance of the contract plant, whichever comes earlier.

14.4.3 the bond shall be returned to the supplier immediately after its expiry.

14.5 claim under bond

if the buyer considers itself entitled to any claim under any bond, itshall so notify the supplier specifying the default of the supplier uponwhich it bases its claim. subject to full compliance with the requirementsand procedures stated in the applicable bond, the buyer may claim underthe bond to the extent of the loss or damage incurred by the buyer byreason of such default.

article 15. taxes and duties

15.1 except as otherwise specifically provided in the contract, thesupplier shall bear and pay all taxes, duties, levies and charges assessedon the supplier, its sub-contractors or their employees by all local,state or national government authorities in connection with the works inand outside the country where contract plant is located. the buyer shall be entitled to deduct withholding tax requiredunder applicable tax laws of the country where the contract plant islocated and the "agreement between the government of the people's republicof china and the government of _________ for the avoidance of doubletaxation and the prevention of fiscal evasion with respect to taxes onincome" for the account of the supplier from payment of the paid uplicense fee, the basic design fee and the technical service fee and to paythe same to the appropriate taxing authority. in such case, the buyershall furnish the supplier with an official tax receipt or otherappropriate evidence issued by such taxing authority.

15.2 notwithstanding article 15.1 above, the buyer shall bear andpromptly pay all customs, import and export duties, value added taxes andbusiness taxes on the works, and withholding tax on any sum payable exceptthe paid up license fee, the basic design fee and the technical servicefee imposed by the laws of the country where the contract plant islocated.

15.3 if any tax exemption, reductions, allowances or privileges may beapplicable in the country where the contract plant is located, the buyershall use its best endeavors to enable the supplier to benefit from anysuch tax savings to the maximum allowable extent.

15.4 for the purpose of the contract, it is agreed that the contractprice and the technical service fee specified in article 12 (contractprice and technical service fee)hereof is based on the taxes, duties,levies and charges prevailing at the date hereof in the country where thecontract plant is located (hereinafter called "tax" in this article 15.4).if any of the rates of tax is increased or decreased or a new tax isintroduced or an existing tax abolished or any change in interpretation orapplication of any tax occurs in the course of the performance of thecontract, which was or is to be assessed on the supplier, sub-contractorsor their employees in connection with the performance of the contract, anequitable adjustment of the contract price and the technical service feeshall be made to reflect any such change by addition to the contract priceand the technical service fee or deduction therefrom, as the case may be,in accordance with article 34 (change in laws and regulations)hereof.

article 16. licence/use of technical information

16.1 for the operation and maintenance of the contract plantincorporating the process(es)specified in appendix 6 (licence conditions)hereto, and subject to the conditions therein contained, the suppliershall grant a non-exclusive and non-transferable licence (without theright to sub-license)to the buyer under the patents, utility models orother industrial property rights owned by the supplier or by a third partyfrom whom the supplier has received the right to grant licencesthereunder, and shall also grant to the buyer a non-exclusive andnon-transferable right (without the right to sub-license)to use theknow-how and other technical information disclosed to the buyer under thecontract. nothing contained herein shall be construed as transferringownership of any patent, utility model, trademark, design, copyright,know-how or other intellectual property right from the supplier or anythird party to the buyer.

16.2 the fully paid up licence fee for the grant of the licence andrights under article 16.1 above shall be included in the contract priceand paid to the supplier by the buyer for the operation and maintenance bythe buyer of the contract plant at its specified design capacity pursuantto article 12 (contract price and technical service fee)hereof. theoperation of the contract plant by the buyer in excess of such designcapacity or any extension or modification by the buyer of the contractplant which results in an increase in such design capacity of the contractplant shall be subject to the conditions specified in appendix 6 (licenceconditions)hereto.

16.3 the copyright in all drawings, documents and other materialscontaining data and information furnished to the buyer by the supplierhereunder shall remain vested in the supplier or, if they are furnished tothe buyer directly or through the supplier by any third party includingprocess licensor(s)or suppliers of the equipment, the copyright in suchmaterials shall remain vested in such third party.

article 17. confidential information

17.1 the buyer and the supplier shall keep confidential and shall not,without the written consent of the other party hereto, divulge to anythird party any documents, data, know-how or other information furnisheddirectly or indirectly by the other party hereto in connection with thecontract whether such information has been furnished prior to, during orfollowing termination of the contract. notwithstanding the above, thesupplier may furnish to its sub-contractor such documents, data, know-howand other information it receives from the buyer to the extent requiredfor the sub-contractor to perform its works under the contract, in whichevent the supplier shall obtain from such sub-contractor an undertaking ofconfidentiality similar to that imposed on the supplier under this article17.

17.2 the buyer shall not use such documents, data, know- how and otherinformation received from the supplier for any purpose other than theoperation and maintenance of the contract plant or the equipment.similarly, the supplier shall not use such documents, data, know-how andother information received from the buyer for any purpose other than thedesign, procurement of the equipment, or such other work and services asare required for the performance of the contract.

17.3 the obligation of a party under articles 17.1 and 17.2 above,however, shall not apply to that information which:(a)now or hereafter enters the public domain through no fault of thatparty; or (b)can be proved to have been in the possession of that party at thetime of disclosure and which was not previously obtained, directly orindirectly, from the other party hereto; or(c)otherwise lawfully becomes available to that party from a thirdparty under no obligation of confidentiality.

17.4 the above provisions of this article 17 shall not in any waymodify any undertaking of confidentiality given by either of the partieshereto prior to the signing date of the agreement in respect of process orequipment.

17.5 the provisions of this article 17 shall survive termination forwhatever reason of the contract.

article 18. representatives

18.1 buyer's representative

18.1.1 if the buyer's representative is not named in the contract,then within fourteen (14)days of the effective date, the buyer shallappoint and notify the supplier in writing of the name of the buyer'srepresentative. the buyer may from time to time appoint some other personas the buyer's representative in place of the person previously soappointed and shall give a notice of the name of such other person to thesupplier without delay. no such appointment shall be made at such a timeor in such a manner as may impede the progress of the works. suchappointment shall only take effect upon receipt of such notice by thesupplier. the buyer's representative shall represent and act for the buyerat all times during the currency of the contract. all notices,instructions, orders, certificates, approvals and all other communicationsunder the contract shall be given by the buyer's representative, except asherein otherwise provided.

all notices, instructions, information and other communications givenby the supplier to the buyer under the contract shall be given to thebuyer's representative, except as herein otherwise provided.

18.1.2 the buyer's representative may at any time delegate to anyperson any of the powers and duties vested in him. any such delegation maybe revoked at any time. any such delegation or revocation shall be subjectto a prior notice signed by the buyer's representative and any notice ofdelegation or revocation shall specify the powers and duties therebydelegated or revoked. such delegation or revocation shall become validwhen a copy thereof has been delivered to the supplier.

any act or exercise by any person of powers and duties delegated tohim in accordance with this article 18.1.2 shall be deemed to be an act orexercise by the buyer's representative.

18.2 supplier's representative

18.2.1 if the supplier's representative is not named in the contract,then within fourteen (14)days of the effective date, the supplier shallappoint and notify the buyer in writing of the name of the supplier'srepresentative.

18.2.2 the supplier's representative shall represent and act for thesupplier at all times during the currency of the contract and shall giveto the buyer all the supplier's notices, instructions, information and allother communications under the contract.

all notices, instructions, information and all other communicationsgiven by the buyer to the supplier under the contract shall be given tothe supplier's representative, except as herein otherwise provided.

the supplier shall not revoke the appointment of the supplier'srepresentative without the buyer's prior written consent, which shall notbe unreasonably withheld. if the buyer consents thereto, the suppliershall appoint some other person as the supplier's representative pursuantto the procedure set out in article 18.2.1 above.

18.2.3 the supplier's representative may at any time delegate to anyperson any of the powers, functions and authorities vested in him. anysuch delegation may be revoked at any time. any such delegation orrevocation shall be subject to a prior notice signed by the supplier'srepresentative and any notice of delegation or revocation shall specifythe powers, functions and authorities thereby delegated or revoked. nosuch delegation or revocation shall take effect unless and until a copythereof has been delivered to the buyer. any act or exercise by any personof powers, functions and authorities so delegated to him in accordancewith this article 18.2.3 shall be deemed to be an act or exercise by thesupplier's representative.

18.2.4 the buyer may by notice to the supplier object to anyrepresentative or person employed by the supplier in the execution of theworks who shall, in the reasonable opinion of the buyer, misconducthimself or be incompetent or negligent or commit a serious breach of thesite regulations. the buyer shall provide evidence of the same whereuponthe supplier shall remove such person from the works.

18.2.5 if any representative or person employed by the supplier isremoved in accordance with article 18.2.4 above, the supplier shall whererequired promptly appoint a replacement in his stead.

article 19. work program

19.1 program of works

within a time mutually agreed upon between the buyer and the supplierafter the date of the agreement, the supplier shall prepare and submit tothe buyer a program of the works showing the sequence in which it proposesto carry out the works and the date by which the supplier reasonablyrequires that the buyer shall have fulfilled its obligations under thecontract so as to enable the supplier to execute the works in accordancewith the program. the program so submitted by the supplier shall accordwith any dates and periods specified in the contract. the supplier shallrevise the program as and when appropriate and shall submit all suchrevisions to the buyer.

article 20. sub-contracting/nominated sub-contractor(s)

20.1 sub-contracting

the supplier may sub-contract any part of the works to any third partywith exception of the nominated sub-contractor under article 20.2(nominated sub-contractor(s))hereof.

20.2 nominated sub-contractor(s)

20.2.1 if, before the date of the contract, the buyer requests thatthe certain part of the works shall be executed by a specificsub-contractor within the buyer's country nominated or recommended by thebuyer (such sub-contractor being hereinafter referred to as "nominatedsub-contractor"), then the supplier shall consider such request by thebuyer.

20.2.2 notwithstanding the request by the buyer, the supplier shallnot be required by the buyer or be under any obligation to employ anynominated sub-contractor in the following circumstances:

(a)if the nominated sub-contractor declines to enter into asub-contract with the supplier whereby the nominated sub-contractorundertakes towards the supplier the like obligations and liabilities asthe supplier has to the buyer in respect of the subject matter of thesubcontract and whereby the nominated sub-contractor will save harmlessand indemnify the supplier from and against any breach by the nominatedsub-contractor of the sub-contract and similarly indemnify the supplierfrom and against any negligence by the nominated sub-contractor; or

(b)if the supplier objects to employ the nominated sub-contractor forany of the following reasons:(i)the supplier considers that it would be prevented or prejudicedfrom carrying out any of its obligations under the contract for specifiedreasons if it employed the nominated sub-contractor; or(ii)the supplier considers that the nominated sub-contractor would beincompetent or unreliable in its performance of the work to besub-contracted for specified reasons.

20.2.3 if the supplier shall decline to enter into a sub-contract forany of the reasons set out in article 20.2.2 above, the buyer shall do oneof the following:

(a)withdraw the nomination and make the supplier select itssub-contractor at its own discretion; or

(b)the buyer may enter into a direct contract with such sub-contractor for such work whereupon such work shall not be included in thedefinition of the term "works" specified in article 1 (definitions)hereofand shall be included in the buyer's scope of works set forth in appendix7-1 (scope of works and supply)hereto; or

20.2.4 if the supplier judges that the nominated sub-contractor iscapable and appropriate to perform the works specified by the buyer andenters into the sub-contract with the nominated sub-contractor, thesupplier shall be responsible to the buyer for the full performance of thesub-contract by the nominated sub-contractor, provided however that, ifthe nominated sub- contractor becomes impossible to perform thesub-contract in proper way due to its financial conditions, the buyershall indemnify the supplier from losses and damages suffered by thesupplier due to such situation. in this case the buyer shall appointanother sub-contractor being no less qualified and capable than theprevious sub-contractor as the nominated sub-contractor and the partieshereto shall treat such change as change in the works in accordance witharticle 36 (change in works)hereof.

article 21. design and engineering

21.1 design and drawings

21.1.1 the supplier shall execute the basic and detailed design workwithin the scope of the works specified in appendix 7- 1 (scope of worksand supply)hereto, in compliance with the provisions of the contract, orwhere not so specified, in accordance with good engineering practice.

21.1.2 the supplier shall be entitled to disclaim responsibility forany design, data, drawing, specification or other document, or anymodification thereof provided or designated by or on behalf of the buyerby giving a notice of such disclaimer to the buyer.

21.2 codes and standards

wherever references are made in the contract to codes and standards inaccordance with which the works shall be executed, the edition or therevised version of such codes and standards current at the date of signingthis agreement shall apply unless otherwise specified.

within _________ months from the effective date, the suppliershall submit the relevant standards, codes and its list to the buyer.

21.3 approval of technical documents by buyer

21.3.1 the supplier shall prepare (or cause its sub- contractors toprepare)and furnish to the buyer the documents listed in appendix 7-3(documents for approval by the buyer)hereto for its approval asspecified.

any part of the works covered by or related to the documents to beapproved by the buyer shall be executed only after the buyer's approvalthereof.

21.3.2 within fourteen (14)days after receipt by the buyer of anydocument requiring the buyer's approval in accordance with article 21.3.1above, the buyer shall either return one copy thereof to the supplier withits approval endorsed thereon or shall notify the supplier in writing ofits disapproval thereof and the reasons therefor and the modificationswhich the buyer proposes. if the buyer fails to take such action withinthe said fourteen (14)days, then the said document shall be deemed tohave been approved by the buyer.

21.3.3 the buyer shall not disapprove any document except on theground that the document does not comply with some specified provision ofthe contract or that it is contrary to good engineering practice.

21.3.4 if the buyer disapproves the document, the supplier may eithermodify the document and resubmit it for the buyer's approval in accordancewith article 21.3.2 above, or may dispute the disapproval in accordancewith article 21.3.5 below. if the buyer approves the document subject tomodification(s), the supplier may either accept the modification(s),whereupon the document shall be deemed to have been approved, modify thedocument and re-submit it for the buyer's approval in accordance witharticle 21.3.2 above or dispute the modification(s)in accordance witharticle 21.3.5 below.

21.3.5 if any dispute or difference shall arise between the buyer andthe supplier in connection with or arising out of the disapproval by thebuyer of any document and/or any modification (s)thereto which cannot besettled between the parties within a reasonable period, then such disputeor difference may be referred to an expert for determination in accordancewith article 7.2 (reference to expert)hereof. if such dispute ordifference is referred to an expert, the buyer shall give instructions asto whether or not and, if so, how the works are to proceed. the suppliershall proceed with the works in accordance with the buyer's instructions,provided that if the expert upholds the supplier's dispute of thedisapproval and if no notice has been given by the buyer under article7.2.3 hereof, then the supplier shall be reimbursed by the buyer for anyadditional costs incurred by reason of such instructions and shall berelieved of such responsibility or liability in connection with thedispute and the execution of the instructions as the expert shall decideand the time for delivery shall be extended accordingly.

21.3.6 the buyer's approval, either with or without modification(s),of the document furnished by the supplier shall not relieve the supplierof any responsibility or liability imposed upon it by any provisions ofthe contract except where and to the extent that the expert upholds thesupplier's dispute of the modification(s).

21.3.7 the supplier shall not depart from any approved document unlessthe supplier has first submitted to the buyer an amended document andobtained the buyer's approval thereof pursuant to the provisions of thisarticle 21.3.

if the buyer requests any change in any already approved documentand/or in any document based thereon, the provisions of article 36 (changein works)hereof shall apply to such request.

21.4 design liaison

21.4.1 both parties shall participate in design liaison meetings asfollows:

21.4.2 within _________ month after the effective date, _________shall at its own cost dispatch its engineer to _________ to participate inthe kick-off meeting for the period of _________. at the end of thekick-off meeting the buyer and the supplier shall sign the kick-offmeeting protocol.

21.4.3 within _________ month after the effective date, _________shall at its own cost dispatch its engineer to _________ to participate inthe basic design review meeting for the period of _________. at the endof the basic design review meeting the buyer and the supplier shall signthe basic design review meeting protocol.

21.4.4 within _________ month after the effective date, _________shall at its own cost dispatch its engineer to _________ to participate inthe detail design review meeting for the period of _________ . at the endof the detail design review meeting the buyer and the supplier shall signthe detail design review meeting protocol.

21.4.5 during the period of the design work, the buyer may send hisengineer at its own expense to the supplier's relevant design offices orshops of the equipment manufacturers to understand the relevant technicaldata relating to the supplier's design or the equipment, provided that thesupplier's works are not hindered or the relevant equipment manufactureragrees to receive the buyer's engineer. the supplier shall assist for thebuyer to arrange entry visa and sojourn formalities.

21.4.6 during the performance of the works, the supplier shall answerin time the questions put forward by the buyer in connection with thedesign and technical problems in the scope of the contract.

21.4.7 detailed contents, time, place and participants of the designliaison meetings are specified in appendix 7-1 (scope of works and supply)hereto.

21.5 delivery of technical documents

21.5.1 the technical documents shall be delivered on cpt (carriagepaid to)destination airport (in case of air cargo)or destination place(in case of special courier)in accordance with incoterms. the contents,number of copies and delivery schedule of the technical documents arestipulated in appendix 7-1 (scope of works and supply)hereto.

21.5.2 not later than seven (7)days before dispatching the technical

documents, the supplier shall notify the buyer by cable/ telex/fax of the

contract number, approximate number of parcels, approximate gross weight

and expected date of arrival at _________ .

21.5.3 within _________ working days after dispatching the saidtechnical documents, the supplier shall notify the buyer bycable/telex/fax of;

(a)in case of air cargo the contract number, number of parcels, gross weight, dispatchingdate, flight number, and air waybill number,

(b)in case of special courier servicesthe contract number, number of parcels, gross weight, dispatching dateand cargo receipt number.

21.5.4 the date of air waybill (in case of air cargo)or the date ofcargo receipt (in case of special courier services)shall be deemed to beas the actual delivery date of the technical documents.

21.5.5 in case of any shortage, loss or damage caused to the technicaldocuments due to the supplier's responsibilities before the deliverythereof, the supplier shall make supplementary delivery for the partshort, lost or damaged within _________ days after receiving the buyer'snotification without any charge.

21.5.6 within _________ working days after delivery of each batch oftechnical documents, the supplier shall send to the buyer the followingdocuments:

(a)air waybill in copies (marked with the contract number andnotifying the forward agent of the buyer at the destination airport).

(b)detailed list of technical documents in 2 copies.

21.5.7 the technical documents shall be properly packed to withstandnumerous handling and longdistance transportation and to protect damagesfrom moisture and rain. the surface of each package shall be marked withthe following printed words:

(a)contract no.:_________

(b)consignee:_________

(c)destination:_________

(d)shipping mark:_________

(e)gross weight (kg):_________

(f)case no. \bale no.:_________

detailed list which indicates title, series number and number of pagesof the delivered technical documents shall be enclosed in each packagetogether with the technical documents.

21.6 buyer's design and engineering

the buyer shall perform and complete its scope of the design andengineering specified in appendix 7-1 (scope of works and supply)heretoin accordance with the supplier's technical documents and proper designand engineering practice. if any technical document prepared by the buyeris defective, inadequate or insufficient, the buyer shall correct suchdefect, inadequacy or insufficiency at the buyer's expense and anyadditional expenses incurred by the buyer and/or the supplier due to suchdefect, inadequacy or insufficiency shall be borne by the buyer, includingbut not limited to, expenses for repair, replacement or modification ofequipment procured by the buyer or the equipment, or additionalconstruction expenses incurred by the buyer in accordance with article27.2 hereof.

the scope of design undertaken by the buyer and the contents oftechnical documentation supplied by the buyer to the supplier is specifiedin appendix 7-1 (scope of works and supply)hereto. the supplier shalltake it as the basis for its design.

if the supplier requests the buyer for review by the supplier of thetechnical documents prepared by the buyer in accordance with appendix 7-1(scope of works and supply)hereto, the buyer shall submit the relevanttechnical documents requested by the supplier to the supplier for review.if supplier considers necessary, the supplier is entitled to assign anddispatch its engineer(s)to the buyer's design office to give technicaladvice and instructions.

such reviews by the supplier do not relieve the buyer from the buyer'sresponsibilities in relation to correctness or appropriateness of thetechnical documents prepared by the buyer.

article 22. supply and delivery

22.1 supply of equipment

subject to article 14.2 (advance payment bond)hereof, the suppliershall procure and supply all the equipment in an expeditious and orderlymanner.

22.2 delivery

22.2.1 the equipment shall be delivered on fob _________ ports basisin accordance with incoterms.

the supplier shall complete the delivery of the equipment in _________basic lots in accordance with the final delivery schedule specified inarticle 22.2.3 hereof. in addition to the above basic lots the suppliershall deliver the following lots, however these additional lots shall notbe considered as one of the above basic lots.

(a)foundation templates and anchor bolts of the equipment shall bedelivered in _________ lot(s)within _________ months from the effectivedate.

(b)catalyst(s), chemical(s)and/or lubricant oil which are to besupplied by the supplier in accordance with appendix 7-1 (scope of worksand supply)hereto shall be delivered in _________ lot(s)not later than_________ months before the commencement of the commissioning.

(c)_________

the total gross weight of the equipment is approximately _________metric tons and the total volume is approximately _________ cubic meters.the port(s)of shipments are _________. the port of destination is_________.

22.2.2 within _________ months after the effective date, the suppliershall submit to the buyer;

(a)the preliminary delivery schedule in six (6)copies whichspecifies the contract number, item number, name of the equipment,quantity, total price, approximate total gross weight, approximate totalvolume, time of each shipment, shipping port, name of dangerous or inflammable equipment, and

(b)approximate dimensions (length, width and height)of theover-sized or over-weighted equipment.

the maximum limit of the weight of each inseparable integratedequipment is _________ metric tons while the maximum limit of measurement is_________ x _________ x _________ meters.

22.2.3 not later than _________ months before the first delivery, thesupplier shall submit to the buyer,

(a)the final delivery schedule in six (6)copies, which specifies thecontract number, despatch number, item number, name of the equipment,quantity, total price, approximate total gross and net weight, approximatetotal volume, approximate dimensions (length x width x height)and volumeof each packaging case, time of each shipment, identification of basiclots and additional lots, shipping port, name of dangerous or inflammableequipment and imo no., and

(b)pecial requirements and precautions to be taken fortransportation and storage of dangerous or inflammable equipment.

22.2.4 the date of "on board bill of lading" shall be deemed to be theactual delivery date of the respective equipment.

22.2.5 not later than _________ days before the readiness of eachshipment,(1)the supplier shall notify the buyer by cable/telex/ fax ofthe following information:(a)contract number(b)date of readiness of the equipment(c)total volume(d)total gross weight(e)total number of packages(f)shipping port(g)name, total gross weight and measurement of each package of theover-sized or over-weight equipment(h)name and imo number of the dangerous or inflammable equipment;(2) at the same time the supplier shall submit to the buyer thefollowing documents, each in six (6)copies:

(a)the detailed list of the shipment covering the contract number,item number, name of the equipment, specification, type, quantity, totalprice, the dimensions of each package (length x width x height), totalnumber of packages and name of shipping port

(b)overall packing sketch for each package of the over-sized orover-weight equipment

(c)description covering names, properties, special protectivemeasures and way of handling an accident for any dangerous or inflammableequipment

(d)description of the special precautions to be taken for theequipment with a special requirement for temperature, shock, etc. duringthe transportation

another copy of the said documents shall be submitted to the forwardagent of the buyer at the port of destination as a basis for arrangingtransportation, loading and unloading of the equipment by the buyer.

22.2.6 each discrete part of the equipment shall be shipped as awhole. their special tools for erection and easily worn out parts shall bedispatched along with the equipment concerned. in case that any equipmentwhich are normally to be shipped on deck, the supplier shall beresponsible for their proper packing and take special protective measures.

22.2.7 at the latest _________ days before the arrival of the carryingvessel at the shipping port, the buyer shall notify the supplier bycable/telex/fax of the name of the carrying vessel, expected date ofarrival, age and classification of the vessel, shipping agent and otherinformation necessary for the shipment (in case of substitution of thevessel or alteration of the shipping schedule, the buyer or its shippingagent shall duly inform the supplier to this effect).

22.2.8 in the event of the supplier's failure in effecting shipmentupon the arrival of the buyer's vessel at the shipping port, thedemurrage, dead freight and other relevant charges thus incurred shall befor the supplier's account. such charges shall be calculated and settledin accordance with the relevant documents issued by the shipping company.

22.2.9 provided the supplier has the equipment ready for shipment bythe expected date of arrival of the carrying vessel, and the buyer'svessel fails to arrive at the loading port within _________ days after theexpected date of shipment, the storage charges, insurance premium,interest and all the other additional expenses thus incurred by thesupplier within the said _________ days shall be for the supplier's account.the storage charges, insurance premium, interest and all the otheradditional expenses thus incurred by the supplier from the 31st day shallbe reimbursed by the buyer against the supplier's invoice accompanied withthe necessary accounting documents certifying the expenses incurred andthe reimbursement shall be made within _________ days after receipt of thesupplier's invoice by the buyer. in this case the supplier shall berelieved from the delivery time guarantees specified in article 26(delivery time guarantees)hereof.

if the buyer and the supplier agree, the supplier may deliver theabove equipment on cif _________ port basis at the buyer's account. the buyershall reimburse freight and insurance premium against the supplier'sinvoice accompanied with the necessary accounting documents certifying theexpenses incurred and the reimbursement shall be made within twenty (20)days after receipt of the supplier's invoice by the buyer.

if the above equipment is not delivered on board due to the buyer'sreason within _________ months from the expected date of delivery, the buyershall make the payment for the said equipment and the risk therefor shallbe transferred from the supplier to the buyer.

however, the supplier shall deliver the equipment on board thecarrying vessel at the supplier's own expenses in accordance with thebuyer's notification as soon as arrival of the vessel at the shippingport.

22.2.10 within _________ working days after each shipment is effectedthe supplier shall inform the buyer by cable/telex/fax of the contractnumber, the date and number of bill of lading, name of the carryingvessel, name of the equipment, total price, total number of packages,total weight and total volume of the equipment. for each large piece ofequipment or dangerous equipment, if any, as mentioned in article 22.2.5.1hereof, measurement (length x width x height)shall be additionallyinformed.

22.2.11 after the last major shipment is achieved the buyer and thesupplier shall conclude the protocol which confirms the achievement of thelast major shipment. the date of the last major shipment shall be the dateof the bill of lading for the equipment of the last basic lot identifiedin the final delivery schedule.(alternative: cif basis)

22.3 packing and marking

22.3.1 the supplier shall have the equipment properly packed in woodencases and shall take measures to protect the equipment from moisture,rain, rust, corrosion and shock, etc. according to their different shapesand special features so as to withstand numerous handling, loading andunloading as well as long-distance sea and inland transportation to ensurethe safe arrival of the equipment at the contract plant without any damageor corrosion.

22.3.2 the supplier shall mark the following on two (2)sides of eachpackaging case of the equipment with indelible paint in conspicuousenglish printed words:

(a)contract no.:_________

(b)shipping mark:_________

(c)destination:_________

(d)consignee:_________

(e)case no. \bale no.:_________

(f)gross\net weight (kg):_________

(g)measurement (length x width x height in cm):_________

22.3.3 should the equipment weight _________ or more than _________ metrictons, gravity and hoisting position shall be marked in english withinternational trade transportation practice marks and illustrative marksso as to facilitate loading, unloading and handling.

in accordance with characteristics and different requirements inloading, unloading and transportation of the equipment, the packaging caseshall be conspicuously marked with "handle with care", "right side up","keep dry" or etc. in english and with appropriate international tradepractice marks and illustrative marks.

22.3.4 the shipping marks under article 22.3.3 hereof shall beindicated with metal labels for the equipment delivered without packagingcase.

for the equipment loaded on deck, sufficient shores or chocks shouldbe provided by the supplier.

22.3.5 the loose accessories in package or bundle shall be labeled bythe supplier, which label indicates the contract number, name of theequipment and name of the said accessories. spare parts and tools shall bemarked with the words "spare parts" or "tools" besides the aboveparticulars.

22.3.6 the following documents shall be enclosed in each package ofthe equipment:

(a)packing list in two (2)copies;

(b)overall assembling drawings for machines and parts which need tobe assembled at the contract plant in two (2)copies.

22.3.7 should the equipment be damaged or lost due to the supplier'simproper packing and/or inadequate protective measures before shipping,the supplier shall be responsible for repair or replacement therefor.

22.4 customs clearance

the buyer shall, at its own expense, handle all imported equipment atthe point(s)of import and any formalities for customs clearance.

article 23. test and inspection

23.1 the supplier shall, at its own expense, carry out at the place ofmanufacture all such test and/or inspection of the equipment as arespecified in the contract.

23.2 the buyer shall be entitled to attend the aforesaid test and/orinspection by its own duly authorized and designated inspector, providedthat the buyer shall bear all costs and expenses incurred in connectionwith such attendance including, but not limited to, all traveling andboard and lodging expenses.

23.3 whenever the supplier is ready to carry out any such test and/orinspection, the supplier shall give a reasonable advance notice of suchtest and/or inspection and of the place and time thereof. the suppliershall obtain from any relevant third party or manufacturer any necessarypermission or consent to enable the buyer's inspector to attend the testand/or inspection.

23.4 the supplier shall provide the buyer with a report of the resultsof any such test and/or inspection.

if the buyer's inspector fails to attend the test and/or inspection,or if it is agreed between the parties that the buyer's inspector shallnot do so, then the supplier may proceed with the test and/or inspectionin the absence of the buyer's inspector and provide the buyer with areport of the results thereof.

23.5 the buyer may require the supplier to carry out any test and/orinspection not described in the contract, provided that no such testand/or inspection impedes the progress of the works and/or the supplier'sperformance of its other obligations under the contract, and providedfurther that the supplier's reasonable costs and expense incurred in thecarrying out of such test and/or inspection shall be added to the contractprice.

23.6 if any equipment fails to pass any test and/or inspection, thesupplier shall either rectify or replace such equipment and shall repeatthe test and/or inspection upon giving a notice under article 23.3 above.

23.7 if any dispute or difference of opinion shall arise between theparties in connection with or arising out of the test and/or inspection ofthe equipment which cannot be settled between the parties within areasonable period of time, it may be referred to an expert fordetermination in accordance with article 7.2 (reference to expert)hereof.if such dispute or difference is referred to an expert, the buyer shallgive instructions as to whether or not and, if so, how the works are toproceed. the supplier shall proceed with the works in accordance with thebuyer's instructions, provided that if the expert upholds the supplier'sargument and if no notice has been given by the buyer under article 7.2.3hereof, then the supplier shall be reimbursed by the buyer for anyadditional costs incurred by reason of such instructions and shall berelieved of such responsibility or liability in connection with thedispute and the execution of the instructions as the expert shall decideand the time for delivery shall be extended accordingly.

23.8 the supplier shall afford the buyer, at the latter's expense,access at any reasonable time to any place where the equipment are beingmanufactured in order to inspect the progress and the manner ofmanufacture, provided that the buyer shall give the supplier a reasonableprior notice.

23.9 the supplier agrees that neither the execution of a test and/orinspection of the equipment, nor the attendance by the buyer's inspectornor the issue of any test certificate pursuant to article 23.4 above shallrelease the supplier from any other responsibilities under the contract.

23.10 the buyer shall conduct open package inspection on the equipmentafter its arrival at the contract plant and shall prepare inspectionrecord and inspection report. in case the law of the buyer's countryrequires mandatory inspection, the buyer shall arrange an authoritativeinspection institution for mandatory inspection to issue an inspectioncertificate. the expenses thus incurred shall be borne by the buyer.the said authoritative inspection institution in the buyer's countryshall be _________.

23.11 the supplier shall be entitled at his own expense to send hisinspectors or inspectors of the notary third party organization (hereincollectively referred to as supplier's inspector)to take part in the openpackage inspection. the buyer shall inform the supplier of the date ofrespective open package inspection in due time and render assistance tothe supplier's inspectors in arranging the entry visas.

23.12 in case the supplier's inspectors are unable to join therespective open package inspection due to reason attributable to thesupplier, the buyer shall have the right to proceed the relevant openpackage inspection independently or to invite the authoritative inspectioninstitution to perform open package inspection.

23.13 should any shortage, defect, damage of the equipment or improperpackage be found in open package inspection, detailed record shall be madeand signed by the representatives of both parties. in case the supplier'sresponsibility is ascertained, the said record shall be taken as aneffective evidence for the buyer to claim replacement, repair orsupplement. in case the buyer's responsibility is ascertained, thesupplier shall make replacement, repair or supplement at the earliest timepossible at the buyer's expense.

23.14 if the buyer considers that the inspection of the equipment bydisassembling thereof is necessary, the buyer may perform suchdisassembling inspection, provided that the buyer and the supplier shallmutually agree to such inspection in advance, the supplier's engineer(s)may witness such inspection and the buyer shall perform such inspection inaccordance with the relevant technical documents supplied by the supplierat that time.however, in any event the following equipment shall not bedisassembled:;instrument equipment;electrical equipment;rotating equipment; computer.

23.15 after the open-package inspection, the buyer shall properlyre-pack and store the equipment in accordance with the instructions of thesupplier's engineer(s).

23.16 the open package inspection shall not release the supplier fromdefect liability under article 27 (defect liability)hereof.

article 24. erection and precommissioning

24.1 the erection and the precommissioning shall be carried out bythe buyer with the supplier's technical services in accordance withappendix 7-5 (the supplier's engineer's technical services and workingconditions).

the supplier shall provide the technical services on theerection and the precommissioning of the contract plant. the supplier'sengineer shall give detailed explanation of methods and requirements ofthe erection and the precommissioning to the buyer's personnel who aretaking part in the erection and the precommissioning. the importanttechnical explanation shall be given in written form.

each party shall nominate within sixty (60)days before thebeginning of the erection, one general representative to deal with allmatters in connection with the works at the contract plant during theperiod from erection up to the acceptance of the contract plant. suchsupplier's general representative shall arrive at the contract plant_________ day prior to the beginning of the erection. the generalrepresentatives of both parties shall fully cooperate to prepare workingschedule and to analyze the problems and difference, which are to beclarified and solved through friendly consultation. further descriptionwith regard to the general representatives of the buyer and the supplierat the contract plant are referred to in appendix 7-5 (the supplier'sengineer's technical services and working conditions)hereto.

24.2 as soon as the contract plant has, in the opinion of the buyerand the supplier, been completed mechanically and structurally and put ina tight and clean condition, the supplier and the buyer shall confirmcompletion of the erection in writing.

24.3 within seven (7)days after the confirmation of completion of theerection under article 24.2 above the buyer shall supply the operating andmaintenance personnel specified in appendix 7-1 (scope of works andsupply)hereto for the precommissioning of the contract plant.

pursuant to appendix 7-1 (scope of works and supply)hereto, the buyershall also provide, within the said seven (7)day period, the rawmaterials, utilities, lubricants, chemicals, catalysts, facilities,services and other matters required for the precommissioning of thecontract plant.

24.4 as soon as is reasonably practicable after the operating andmaintenance personnel have been supplied by the buyer and the rawmaterials, utilities, lubricants, chemicals, catalysts, facilities, andservices and other matters have been provided by the buyer in accordancewith article 24.3 above, the buyer shall commence the precommissioning ofthe contract plant in preparation for the commissioning.

24.5 within seven (7)days after all works in respect of theprecommissioning are completed and, in the opinion of the buyer and thesupplier, the contract plant is ready for the commissioning, the buyer andthe supplier shall confirm the readiness for the commissioning in writing.

article 25. commissioning and acceptance

25.1 commissioning

25.1.1 the commissioning of the contract plant shall be performed bythe buyer immediately after the confirmation of the readiness for thecommissioning under article 24.5 hereof. the commissioning period shall be_________ months after commencement of the commissioning.

25.1.2 during the commissioning, the buyer shall supply the operatingand maintenance personnel, raw materials, utilities, lubricants,chemicals, catalysts, maintenance tools, laboratory, testing facilities,facilities, services and other matters required for the operation of thecontract plant as specified in appendix 7-1 (scope of works and supply)hereto.

25.1.3 during the commissioning, the supplier's engineer shall providethe buyer's engineer with the technical services in accordance withappendix 7-5 (the supplier's engineer's technical services and workingconditions)hereto.

25.1.4 all the sampling and analytical tests during the commissioningperiod shall be done at the presence of the representatives of bothparties and the detailed record shall be made. the supplier's engineer,shall have the right to access to the laboratory and testing facilitiesfor sampling and analyzing.

25.1.5 during the commissioning period, the buyer's stored spare partsshall be used for the replacement of defective equipment, if any. shouldthe spare parts be used due to supplier's reason, they shall bereplenished by the supplier in time.

25.1.6 when the buyer and the supplier consider that the contractplant has been operated under stable conditions, the buyer and thesupplier shall confirm that the contract plant is ready for theperformance test.

25.2 performance test

25.2.1 immediately after the confirmation under article 25.1. 6 above,the performance test (and repeated run thereof)shall be conducted by thebuyer during the commissioning of the contract plant to ascertain whetherthe contract plant can attain the process performance guarantees specifiedin appendix 5 (process performance guarantees)hereto in accordance witharticle 28 (process performance guarantees)hereof.

25.2.2 if, for reasons not attributable to the supplier, theperformance test of the contract plant cannot be successfully completedwithin _________ months from date of the last major shipment, the suppliershall be deemed to have fulfilled its obligations with respect to theprocess performance guarantees specified in appendix 5 (processperformance guarantees)hereto and articles 28.3 and 28.4 hereof shall notapply.

25.2.3 during the performance test, the supplier's engineer shallprovide the buyer's engineer with the technical services on theperformance test of the contract plant in accordance with appendix 7-5(the supplier's engineer's technical services and working conditions)hereto.

25.2.4 any performance test shall be carried out in accordance withthe standards, methods, conditions, procedures and orders which arespecified in appendix 5 (process performance guarantees)hereto, as wellas the technical advice and instructions of the supplier's engineer asspecified in appendix 7-5 (the supplier's engineer's technical servicesand working conditions)hereto.all guarantee figures to be tested are specified in appendix 5(process performance guarantees)hereto. the performance test shall becompleted in _________ days.

25.2.5 the progress and the result of the performance test shall berecorded in detail by both parties. within three days after the completionof the performance test, the said report of the performance test shall beconfirmed and signed by the representatives of the buyer and the supplier.

25.3 acceptance

25.3.1 acceptance shall occur in respect of the contract plant when:

(a)the performance test has been successfully completed and theprocess performance guarantees specified in appendix 5 (processperformance guarantees)hereto are met; or

(b)the performance test has not been successfully completed forreasons not attributable to the supplier within _________ months from the

date of the last major shipment as specified in article 25. 2.2 above; or

(c)the supplier has paid the liquidated damages specified in article28.4 (failure to meet performance guarantees)hereof;

25.3.2 at any time after any of the events set out in article 25.3.1above has occurred, the supplier may give a notice to the buyer requestingthe issue of an acceptance certificate in respect of the contract plant asat the date of such notice.

25.3.3 the buyer shall within seven (7)days after receipt of the supplier's notice issue such acceptance certificate.

25.3.4 if, within seven (7)days after receipt of the supplier' snotice, the buyer fails to issue the acceptance certificate or fails toinform the supplier in writing of the justifiable reasons why the buyerhas not issued the acceptance certificate, the contract plant there of shall be deemed to have been accepted as at the date of the supplier'ssaid notice.

article 26. delivery time guarantee

26.1 delivery time guarantee the supplier guarantees that it shall deliver to the buyer;

(a)each such basic lot of the equipment within such corresponding time for delivery, as referred to in article 22.2.1 hereof and finallyfixed in the final delivery schedule pursuant to article 22.2.3 hereof,and

(b)each such basic item of the technical documents whose time fordelivery is guaranteed as specified in appendix 7-4 (time schedule)heretowithin the corresponding time for delivery specified therein,subject, however, to any extension of each such time for delivery towhich the supplier shall be entitled under article 37 (extension of timefor delivery)hereof.

26.2 late delivery of equipment

if the supplier fails to deliver to the buyer any portion of the equipment included in such a basic lot within such corresponding time fordelivery, as specified in article 26.1 (delivery time guarantee)above orany extension thereof under article 37 (extension of time for delivery)hereof, the supplier shall pay to the buyer liquidated damages for eachsuch delayed portion of the equipment at the following rates for everyweek of delay, providing that fractions of four days or more shall becounted as one week and fraction(s)of less than four days shall beomitted:

(a)for the first four weeks of delay:_________ per cent (_________%)of the invoiced amount of the delayedportion of the equipment per week;

(b)for the second four weeks of delay following the first four weeksof delay:_________ per cent (_________%)of the invoiced amount of the delayedportion of the equipment per week;

(c)for the ninth and subsequent week(s)of delay:_________ per cent (_________%)of the invoiced amount of the delayedportion of the equipment per week;

such monies shall be paid as liquidated damages and not as a penalty.the total aggregate amount of such liquidated damages shall in no eventexceed _________ per cent (_________%)of the contract price for theequipment specified in article 12 (contract price and technical servicefee)hereof.

26.3 late delivery of technical documents

if the supplier fails to deliver to the buyer any basic item of thetechnical documents specified in appendix 7-4 (time schedule)hereto whosetime for delivery is guaranteed under article 26.1 (delivery timeguarantee)above within the corresponding time for delivery specified inappendix 7-4 (time schedule)hereto or any extension thereof under article37 (extension of time for delivery)hereof, the supplier shall pay to thebuyer liquidated damages for each such delayed basic item of the technicaldocuments at the following rates for every week of delay, providing thatfractions of four days or more shall be counted as one week andfraction(s)of less than four days shall be omitted:

(a)for the first four weeks of delay:_________ percent (_________%)of the total design fee specified inarticle 12 (contract price and technical service fee)hereof per week;

(b)for the second four weeks of delay following the first four weeksof delay:_________ percent (_________%)of the aforesaid total design fee perweek;

(c)for the ninth and subsequent week(s)of delay:_________ percent (_________%)of the aforesaid total design fee perweek;

such monies shall be paid as liquidated damages and not as a penalty.the total aggregate amount of such liquidated damages shall in no eventexceed _________ per cent (_________%)of the aforesaid total design fee.

26.4 payment of liquidated damages

the payment of liquidated damages under articles 26.2 (late deliveryof equipment)and 26.3 (late delivery of technical documents)above shallbe in complete satisfaction of the supplier's obligation to deliver to thebuyer the relevant equipment or the relevant technical documents withinthe corresponding time for delivery specified in article 26.1 (deliverytime guarantee)above or any extension thereof under article 37 (extensionof time for delivery)hereof and the supplier shall have no furtherliability whatsoever to the buyer in respect thereof.

however, such payment of liquidated damages shall not in any wayrelieve the supplier from any of its obligations to deliver to the buyerthe equipment and the technical documents or from any other obligationsand liabilities of the supplier under the contract.

save for liquidated damages payable under articles 26.2 (late deliveryof equipment)and 26.3 (late delivery of technical documents)above, thefailure by the supplier to attain any milestone or other act, matter orthing by any such date or within any such time, as specified in appendix7-4 (time schedule)hereto and/or other program of the works preparedpursuant to article 19 (work program)hereof shall not render the supplierliable for any loss or damage thereby suffered by the buyer.

article 27. defect liability

27.1 guarantees and defect liability period

27.1.1 the supplier guarantees that;

(a)the equipment or any part thereof shall be free from defects indesign, materials and workmanship,

(b)the technical documents or any part thereof, except for thosewhich are of preliminary nature or to be delivered to the buyer by thesupplier for the buyer's information, shall be correct and haveconsistency in the contents thereof and shall be sufficient to enable theinternationally competent recognized engineers to understand the contentsthereof, and

(c)the technical advice and instructions given in writing by thesupplier's engineer during his performance of the technical services shallbe correct.

27.1.2 the period of the validity of the guarantees given by thesupplier under article 27.1.1 above, i.e. the defect liability perioddefined in article 1 (definitions)hereof, shall commence from the date ofdelivery of the relevant equipment, the date of delivery of the relevanttechnical documents or the date of provision of the relevant technicaladvice or instructions given in writing by the supplier's engineer at thecontract plant, as the case may be, and shall end upon the expiry of_________ months from the date of the last major shipment or twelve (12)months from the date of the acceptance of the contract plant, whichevercomes earlier, subject, however, to any extension under article 27.2.7hereof.

27.2 defect liability for equipment

27.2.1 if, during the defect liability period, any defect should befound in the design, materials or workmanship of the equipment or any partthereof, the supplier shall promptly and at its cost repair, replace orotherwise make good (as the supplier shall at its discretion determine)such defect as well as any damage to the equipment caused by such defect.provided that the supplier shall not be responsible for the repair,replacement or making good of any defect of or any damage to the equipmentarising out of or resulting from any of the following causes:

(a)improper design, engineering, storage, transportation, handling,installation, erection, operation or maintenance of the contract plant byor on behalf of the buyer

(b)any defect or deficiency in the equipment, machinery, materialsand other supplies for the contract plant supplied by or on behalf of thebuyer

(c)operation of the contract plant outside the specificationsprovided in the contract

(d)failure on the part of the buyer to follow and conform to thetechnical documents and other recommendations, advice and instructionsprovided by the supplier or the supplier's engineer under the contract

(e)erosion or corrosion

(f)normal wear and tear

27.2.2 the supplier's obligations under this article 27.2 (defect liability for equipment)shall not apply to;

(a)any equipment, machinery, material, and other supply which are supplied by or on behalf of the buyer under article 10.3 hereof,

(b)any part of the equipment which are normally consumed in operation or which have a normal life shorter than the defect liability period,

(c)any design, specification or other data designated, supplied orspecified by or on behalf of the buyer or any matter for which thesupplier has disclaimed responsibility hereunder, or

(d)any other material supplied or any work executed by or on behalfof the buyer, except for the work executed by the buyer under article27.2.6 below.

27.2.3 the buyer shall give the supplier a notice stating the natureof any such defect together with all available evidence thereof promptlyfollowing the discovery thereof. the buyer shall afford all reasonableopportunity for the supplier to inspect any such defect.

27.2.4 the buyer shall afford the supplier all necessary access to thecontract plant to enable the supplier to perform its obligations underthis article 27.2 (defect liability for equipment).

the supplier may with the consent of the buyer remove from thecontract plant the equipment or any part thereof which is defective if thenature of the defect and/or any damage to the equipment caused by thedefect is such that repairs cannot be expeditiously carried out at thecontract plant.

27.2.5 if the repair or replacement or making good is of such acharacter that it may affect the efficiency of the equipment or any partthereof, the buyer may give to the supplier a notice requiring that testsshall be made by the supplier of the defective part of the equipmentimmediately on completion of such remedial work whereupon the suppliershall carry out such tests.

if such part fails the tests, the supplier shall carry out furtherrepair, replacement or making good (as the case may be)until that part ofthe equipment passes such tests. the tests shall be agreed by the buyerand the supplier.

27.2.6 if the supplier fails to commence the work necessary to remedysuch defect or any damage to the equipment caused by such defect within areasonable time, the buyer may carry out such work in a reasonable manner,and the reasonable direct costs incurred by the buyer in connectiontherewith shall be paid to the buyer by the supplier, providing that thelabor costs included in such costs shall be calculated based on the localcosts incurred in the country in which the contract plant is to beconstructed.

27.2.7 if the equipment or any part thereof cannot be used by reasonof such defect and/or making good of such defect, the defect liabilityperiod of the equipment or such part, as the case may be, shall beextended by a period equal to the period during which the equipment orsuch part cannot be used by the buyer due to any of the aforesaid reasons.

27.3 defect liability for technical documents

27.3.1 if, during the defect liability period, any error or mistakeshould be found in the technical documents or any part thereof;

(a)the supplier shall promptly and at its cost correct such error ormistake and re-deliver to the buyer the technical documents or part(s)thereof so corrected, and repair, replace or otherwise make good (as thesupplier shall at its discretion determine)any such defect in, or anysuch damage to, the equipment or any part thereof, as caused by the saiderror or mistake in the technical documents or any part thereof, subjectto the same conditions as set forth in articles 27.2.1 through 27.2.7above inclusive, or

(b)the supplier shall be liable for, and pay to the buyer, reasonabledirect costs incurred by the buyer in repairing, replacing or otherwisemaking good (as the supplier shall at its discretion determine)any suchdefect in, or any such damage to, any part of the contract plant otherthan the equipment supplied, or the works for the contract plant executed,by or on behalf of the buyer, as caused by the said error or mistake inthe technical documents or any part thereof, providing that the laborcosts included therein shall be calculated based on the local costsincurred in the country in which the contract plant is to be constructed.

provided that the supplier shall not be responsible for any such erroror mistake in the technical documents or any part thereof as caused byinaccurate drawings, data or information furnished to the supplier by thebuyer and for any defect in, or damage to, any part of the contract plantor the works for the contract plant executed by or on behalf of the buyeror any other loss or damage incurred by the buyer, arising out of orresulting from any such error or mistake in the technical documents or anypart thereof as caused by inaccurate drawings, data or informationfurnished to the supplier by the buyer, or any failure on the part of thebuyer to fully comply with the technical documents.

27.3.2 the buyer shall give the supplier a notice stating the natureof any error or mistake in the technical documents or any part thereof andof any such defect in, or any such damage to, any part of the contractplant or the works for the contract plant executed, by or on behalf of thebuyer, as caused by the said error or mistake in the technical documentsor any part thereof, promptly following the discovery thereof. the buyershall afford all reasonable opportunity for the supplier to inspect anysuch error or mistake or any such defect or damage.

27.3.3 notwithstanding anything to the contrary provided in thecontract, the aggregate liability of the supplier to the buyer arising outof or in connection with the technical documents under this article 27.3(defect liability for technical documents), except for the liability tocorrect the erroneous or defective technical documents and re-deliver thetechnical documents so corrected and to repair, replace or otherwise makegood any defect in, or any damage to, the equipment or any part thereofunder article 27.3.1 above, shall not exceed _________ per cent(_________%)of the total design fee specified in article 12 (contractprice and technical service fee)hereof.

27.4 defect liability for technical services

27.4.1 if, during the defect liability period, any error or mistakeshould be found in the technical advice and instructions given in writingby the supplier's engineer during his performance of the technicalservices;

(a)the supplier shall promptly and at its cost reperform thetechnical services related to such erroneous or mistaken written technicaladvice or instructions and repair, replace or otherwise make good (as thesupplier shall at its discretion determine)any such defect in, or anysuch damage to, the equipment or any part thereof, as caused by the saiderror or mistake in the written technical advice or instructions, subjectto the same conditions as set forth in articles 27.2.1 through 27.2.7above inclusive, or

(b)the supplier shall be liable for, and pay to the buyer, reasonabledirect cost incurred by the buyer in repairing, replacing or otherwisemaking good (as the supplier shall at its discretion determine)any suchdefect in, or any such damage to, any part of the contract plant otherthan the equipment supplied, or the works for the contract plant executed,by or on behalf of the buyer, as caused by the said error or mistake inthe written technical advice or instructions, providing that the laborcosts included therein shall be calculated based on the local costsincurred in the country in which the contract plant is to be constructed.

provided that the supplier shall not be responsible for the technicalservices related to any such erroneous or mistaken written technicaladvice or instructions as caused by inaccurate drawings, data orinformation furnished to the supplier by the buyer and for any defect in,or damage to, any part of the contract plant or the works for the contractplant executed by or on behalf of the buyer or any other loss or damageincurred by the buyer, arising out of or resulting from any such error ormistake in the written technical advice or instructions given by thesupplier's engineer as caused by inaccurate drawings, data or informationfurnished to the supplier by the buyer, or any failure on the part of thebuyer to fully comply with the written technical advice or instructionsgiven by the supplier's engineer, or any performance by the buyer withoutattendance of the supplier's engineer of any procedure, test, program orwork which are subject to the attendance of the supplier's engineer underthe contract.

27.4.2 the buyer shall give the supplier a notice stating the natureof any error or mistake in the aforesaid written technical advice orinstructions given by the supplier's engineer and of any such defect in,or any such damage to, any part of the equipment or any part of thecontract plant other than the equipment supplied, or the works for thecontract plant executed, by or on behalf of the buyer, as caused by thesaid error or mistake in the written technical advice or instructionsgiven by the supplier's engineer, promptly following the discoverythereof. the buyer shall afford all reasonable opportunity for thesupplier to inspect any such defect or damage.

27.4.3 notwithstanding anything to the contrary provided in thecontract, the aggregate liability of the supplier to the buyer arising outof or in connection with the technical services under this article 27.4(defect liability for technical services), except for the liability of thesupplier to reperform the technical services related to the erroneous ormistaken written technical advice or instructions and to repair, replaceor otherwise make good any defect in, or any damage to, any part of theequipment under article 27.4.1 above, shall not exceed _________ per cent(_________%)of the total sum of the technical service fee which thesupplier shall have received from the buyer.

27.5 except as provided in this article 27 (defect liability)andarticle 32 (loss or damage to property/accident or injury toworkmen/indemnification)hereof, the supplier shall be under no liabilitywhatsoever and howsoever arising, and whether under the contract or atlaw, in respect of defects in the contract plant or the equipment or anypart thereof, materials, design or engineering or work executed or errorsor mistakes in the technical documents or any part thereof or in thetechnical services.

article 28. process performance guarantees

28.1 process performance guarantees and performance test

the supplier guarantees that, during the performance test or anyrepeated run thereof, the contract plant shall attain the processperformance guarantees specified in appendix 5 (process performanceguarantees)hereto subject to and upon the conditions specified in thisarticle 28 (process performance guarantees)and the said appendix 5.

28.2 preconditions

the process performance guarantees under article 28.1 (processperformance guarantees and performance test)above shall be expresslyconditioned upon the following being fully satisfied or fulfilled by or onbehalf of the buyer:

(a)any and all supplies and works (except for those falling withinthe supplier's scope of supplies and services under the contract), such asdesign of the contract plant (other than the equipment)and/or itsassociated facilities to be executed by or on behalf of the buyer,equipment, machinery and materials for the contract plant (other than theequipment)and/or its associated facilities to be supplied by or on behalfof the buyer, civil, building, erection, installation and commissioningworks and operation and maintenance of the contract plant and/or itsassociated facilities, shall be properly provided or performed by thebuyer and shall be in accordance with the requirements under the contract,the technical documents and the technical advice and instructions given bythe supplier's engineer under the contract.

(b)the buyer shall, during the commissioning and the performance testof the contract plant (including any repeated run thereof)provide, at itsown expense skilled and well-trained laborers and operators, rawmaterials, lubricants, consumables, other materials and supplies, tools,testing and measuring devices and utilities in reasonably sufficientquantity with required quality, needed for proper execution of thecommissioning and the performance test (including any repeated runthereof), in accordance with the requirements under the contract, thetechnical documents and the technical advice and instructions given by thesupplier's engineer under the contract, and shall give the supplier'sengineer opportunities to check them in advance or at all reasonable timesduring the commissioning and the performance test (including any repeatedrun thereof). the supplier's engineer may reject such laborers andoperators, raw materials, lubricants, consumables, other materials andsupplies, tools, testing and measuring devices and utilities which thesupplier's engineer deems to be unsuitable, of insufficient quality, notsuitably prepared or otherwise inadequate for the commissioning or theperformance test (including any repeated run of said performance test).

(c)the performance test (including any repeated run thereof)shall becarried out by the buyer under the technical advice and instructions givenby the supplier's engineer under the contract, in accordance with suchprocedures programs, methods, testing conditions and other terms andconditions as provided for in the contract and in compliance with therelevant technical documents.

28.3 minimum level

if, for reasons attributable to the supplier, the minimum level of theprocess performance guarantees specified in appendix 5 (processperformance guarantees)hereto is not met either in whole or in partduring the performance test, the supplier shall at its cost and expensemake such changes, modifications and/or additions to the contract plant orany part thereof as may be necessary so as to meet at least the minimumlevel of such guarantee, in such manner and to such extent as specified inarticles 27.2.1, 27.3.1 and 27.4.1 above. the supplier shall notify thebuyer upon completion of the necessary changes, modifications and/oradditions and shall repeat the performance test in the same manner as thatof the first performance test until the minimum level of such guaranteehas been met.

28.4 failure to meet performance guarantees

if, for reasons attributable to the supplier, the process performanceguarantees specified in appendix 5 (process performance guarantees)heretoare not attained either in whole or in part, but the minimum level of theprocess performance guarantees is met during the performance test, thesupplier shall, at its option, either;

(a)make such changes, modifications and/or additions to the contractplant or any part thereof as may be necessary in order to attain theprocess performance guarantees in such manner and to such extent asspecified in articles 27.2.1, 27.3.1 and 27.4.1 above at its cost andexpense and/or offer the buyer to change the operating conditions of thecontract plant whereupon a further performance test shall be carried outin the same manner as that of the first performance test, subject,however, to the changed operating conditions of the contract plant, if somutually agreed upon, or

(b)pay liquidated damages to the buyer in respect of the failure tomeet the process performance guarantees in accordance with appendix 5(process performance guarantees)hereto.

if the supplier exercises the option specified in item (a)above, andany performance test carried out pursuant thereto fails to attain theprocess performance guarantees referred to above either in whole or inpart for reasons attributable to the supplier, then the foregoingprocedures shall apply to the subsequent course of action and proceduresto be taken by the supplier.

28.5 payment of liquidated damages

the payment of liquidated damages under article 28.4 (failure to meetperformance guarantees)above shall be in complete satisfaction of thesupplier's guarantees under article 28.1 (process performance guaranteesand performance test)above and any other corresponding or equivalentprovision set out in the contract (whether in appendix 7 hereto orotherwise)and the supplier shall have no further liability whatsoever tothe buyer in respect thereof. upon the payment of such liquidated damagesby the supplier, the buyer shall issue the acceptance certificate for thecontract plant in respect of which the liquidated damages have been sopaid.

article 29. patent indemnity

29.1 the supplier shall, until the cut-off date defined in paragraph 1of appendix 6 (license conditions)hereto and subject to other conditionsset out therein including, but not limited to, the limitation of liabilitypursuant to paragraph 5 thereof and to the buyer's compliance with article29.2 below, indemnify and hold harmless the buyer and its employees andofficers from and against any and all suits, actions or administrativeproceedings, claims, demands, losses, damages and costs and expenses ofwhatsoever nature, including attorney's fees and expenses, which the buyermay suffer as a result of any infringement or alleged infringement of anypatent, utility model, registered design, trademark, copyright or otherintellectual property right registered or otherwise existing at the dateof this agreement by reason of;

(a)the execution of the works by the supplier or the use of thecontract plant in the country where the contract plant is to beconstructed, or

(b)the sale of the products produced by the contract plant in anycountry except those countries which are excluded or where restrictionsare placed on the buyer as set out in appendix 6 (licence conditions)hereto.

provided that such indemnity shall not cover any use of the contractplant or any part thereof otherwise than for the purpose indicated by orreasonably to be inferred from the contract or any infringement which isdue to the use of the contract plant or any part thereof or any productsproduced thereby in association or combination with any other equipment,plant, material or process not supplied or licensed by the supplierpursuant to the contract.

29.2 if any proceeding is brought or any claim is made against thebuyer arising out of the matters referred to in article 29.1 above, thebuyer shall promptly give the supplier a notice thereof and the suppliermay at its own expense and in the buyer's name conduct such proceeding orclaim and any negotiation for the settlement of any such proceeding orclaim.

if the supplier fails to notify the buyer within twenty-eight (28)days after receipt of such notice that it intends to conduct any suchproceeding or claim, then the buyer shall be free to conduct the same onits own behalf. unless the supplier has so failed to notify the buyerwithin the twenty-eight (28)day period, the buyer shall make no admissionwhich may be prejudicial to the defense of any such proceeding or claim.

the buyer shall, at the supplier's request, afford all availableassistance to the supplier in conducting such proceeding or claim, andshall be reimbursed by the supplier for all reasonable expenses incurredin so doing.

29.3 the buyer shall indemnify and hold harmless the supplier and itsemployees, officers and sub-contractors from and against any and allsuits, actions or administrative proceedings, claims, demands, losses,damages and costs and expenses of whatsoever nature, including attorney'sfees and expenses, which the supplier may suffer as a result of anyinfringement or alleged infringement of any patent, utility model,registered design, trademark, copyright or other intellectual propertyright registered or otherwise existing at the date of this agreementarising out of or in connection with any design, data, drawing,specification, or other document or material provided or designated by oron behalf of the buyer.

article 30. limitation of liability

30.1 notwithstanding anything to the contrary provided in thecontract, the aggregate liability of the supplier to the buyer withrespect to the defect liability under article 27 (defect liability), thepatent indemnity under article 29 (patent indemnity)hereof and theliquidated damages payable to the buyer under articles 26.2 (late deliveryof equipment), 26.3 (late delivery of technical documents)and 28.4(failure to meet performance guarantees)hereof, except for the liabilityto repair, replace or otherwise make good any defect in, or any damage to,the equipment or any part thereof under articles 27.2.1, 27.3.1, 27. 4.1and 28.3 (minimum level)and 28.4 (failure to meet performance guarantees)hereof, to correct the erroneous or mistaken technical documents andre-deliver the technical documents so corrected under article 27.3.1hereof and to reperform the technical services related to the erroneous ormistaken written technical advice or instructions given by the supplier'sengineer under article 27.4.1 hereof, shall not exceed _________ per cent(_________%)of the contract price.

30.2 the supplier shall in no event be liable to the buyer by way ofindemnity or by reason of any breach of the contract or in tort orotherwise for loss of or damage to any facility, equipment, machinery ormaterial other than the contract plant and for loss of use of the contractplant and/or its associated facilities or any part thereof or for loss ofproduction, loss of profit or loss of any contract, or for any indirect,special or consequential loss or damage that may be suffered by the buyerin connection with the contract.

article 31. transfer of risk of loss and buyership

31.1 risk of loss of the equipment shall be transferred from thesupplier to the buyer upon delivery of the equipment as specified inarticle 22.2 (delivery)hereof in accordance with the provisions ofincoterms. buyership of the equipment shall be transferred from thesupplier to the buyer upon transfer of risk of loss of the equipment asspecified above.

31.2 risk of loss of the technical documents shall be transferred fromthe supplier to the buyer upon its delivery to transportation company (incase of air cargo)or special courier services company (in case of specialcourier services). buyership of the technical documents subject tolimitations specified in the relevant provisions hereof shall also betransferred to the buyer upon delivery of the technical documents asspecified above.

article 32. loss or damage to property/accident or to workmen/ indemnification

32.1 each party hereto shall waive all claims for recovery from theother party for any death or personal injury of any of its personnel orloss or damage to any of its property (including the contract plant)arising out of, or in connection with, its performance of the contract.

32.2 the buyer shall indemnify and hold harmless the supplier and thesupplier's engineer from all claims or suits from third parties for anydeath or personal injury arising out of, or in connection with, theperformance of the works in the buyer's country.

32.3 the party entitled to the benefit of an indemnity under thisarticle 32 shall take all reasonable measures to mitigate any loss ordamage which has occurred. if the party fails to take such measures, theother party's liabilities shall be correspondingly reduced.

article 33. insurance

33.1 each party shall at its expense take out and maintain in effect,or cause to be taken out and maintained in effect, appropriate insurancesduring the performance of the contract.

article 34. change in laws and regulations

34.1 if, after the date of the agreement, in any country where theequipment or any part thereof is to be manufactured or in the countrywhere the contract plant is located, any law, regulation, ordinance, orderor by-law having the force of law is enacted, promulgated, abrogated orchanged (which shall be deemed to include any change in interpretation orapplication by the competent authorities)which subsequently affects thecosts and expenses of the works, the contract price shall becorrespondingly increased or decreased to the extent that the supplier hasthereby been affected in the performance of any of its obligations underthe contract.

article 35. force majeure

35.1 "force majeure" shall mean any event beyond the reasonablecontrol of the buyer or the supplier, as the case may be, and which isunavoidable notwithstanding the reasonable care of the party affected, andshall include, without limitation, the following:

(a)war, hostilities or warlike operations (whether a state of war bedeclared or not), invasion, act of foreign enemy, civil war; or

(b)rebellion, revolution, insurrection, mutiny, usurpation of civilor military government, conspiracy, riot, civil commotion, terrorist acts;or

(c)confiscation, nationalization, mobilization, commandeering orrequisition by or under the order of any government or de jure or de factoauthority or ruler or any other act or failure to act of any local stateor national government authority; or

(d)trike, sabotage, lock-out, embargo, import restriction, portcongestion, lack of usual means of public transportation andcommunication, industrial dispute, shipwreck, shortage or restriction ofpower supply, epidemics, quarantine, plague; or

(e)earthquake, landslide, volcanic activity, fire, flood orinundation, tidal wave, typhoon or cyclone, hurricane, storm, lightning,or other inclement weather condition, nuclear and pressure waves, or othernatural or physical disaster; or

(f)hortage of labor, materials or utilities where caused bycircumstances that are themselves force majeure.

35.2 if either party is prevented, hindered or delayed from or inperforming any of its obligations under the contract by an event of forcemajeure, then it shall notify the other in writing of the occurrence ofsuch event and the circumstances thereof within fourteen (14)days afterthe occurrence of such event.

35.3 the party who has given such notice shall be excused from theperformance or punctual performance of its obligations under the contractfor so long as the relevant event of force majeure continues and to theextent that such party's performance is prevented, hindered or delayed.the time for delivery shall be extended in accordance with article 37(extension of time for delivery)hereof.

35.4 the party or parties affected by the event of force majeure shalluse reasonable efforts to mitigate the effect thereof upon its or theirperformance of the contract and to fulfill its or their obligations underthe contract, but without prejudice to either party's right to terminatethe contract under article 35.6 below.

35.5 no delay or non-performance by either party hereto caused by theoccurrence of any event of force majeure shall:

(a)constitute a default or breach of the contract; or

(b)give rise to any claim for damages or additional cost or expenseoccasioned thereby,

if and to the extent that such delay or non-performance is caused bythe occurrence of an event of force majeure.

35.6 if the performance of the works is substantially prevented,hindered or delayed for an aggregate period of more than one hundred andtwenty days on account of one or more events of force majeure during thecurrency of the contract, either party may terminate the contract bygiving a notice to the other.

35.7 in the event of termination pursuant to article 35.6 above, the rights and obligations of the buyer and the supplier shall be as specifiedin articles 39.1.2 and 39.1.3 hereof, except that the supplier shall haveno entitlement to profit under paragraph (e)of the said article 39.1.3 inrespect of any unexecuted works as at the date of termination.

35.8 notwithstanding article 35.5 above, force majeure shall not applyto any obligation of the buyer to make payments to the supplier hereunder.

article 36. change in works

36.1 subject to articles 36.7 and 36.8 below, the buyer shall have theright to request and subsequently to order the supplier from time to timeduring the performance of the contract to make any change, modification,addition or deletion to, in or from the works (hereinafter called"change"), provided that such change falls within the general scope of theworks and does not constitute unrelated work and that it is technicallypracticable, taking into account both the state of advancement of theworks and the technical compatibility of the change envisaged with thenature of the works as specified in the contract.

36.2 the supplier may from time to time during its performance of thecontract propose to the buyer any change which the supplier considersnecessary or desirable to improve the quality, efficiency or safety of theworks. the buyer may at its discretion approve or reject any changeproposed by the supplier, provided that the buyer shall approve any changeproposed by the supplier to ensure the safety of the works.

36.3 notwithstanding articles 36.1 and 36.2 above, no change madenecessary due to any default of the supplier in the performance of itsobligations under the contract shall be deemed to be a change and suchchange shall not result in any adjustment of the contract price or thetime for delivery.

36.4 if either party proposes a change pursuant to articles 36. 1 and36.2 above, the supplier shall prepare and furnish to the buyer as soon asreasonably practicable a written statement setting out full details of anysuch change, the reasons therefor if proposed by the supplier, the worksand/or work required or no longer required, an estimate of the increase ordecrease in the contract price, any requisite adjustment to the time fordelivery, and any proposed modifications to the contract and/or any effectsuch change would have on the works and/or on any other provisions of thecontract if the contemplated change is effected, as the case may be.

36.5 if, in the case of a change proposed by either the buyer or thesupplier, the buyer and the supplier reach agreement on all mattersidentified in the written statement furnished by the supplier pursuant toarticle 36.4 above within a reasonable time thereafter, then the buyershall issue a change order giving effect thereto (hereinafter called"change order"). such change order shall contain full particulars of thechange, any adjustment of the contract price and/or the time for deliveryand all other modifications to the contract and shall be signed by thebuyer and the supplier. such change shall thereupon be deemed to form partof the works.

36.6 the supplier may object to any change requested by the buyerwhere the aggregate effect of compliance therewith and with all otherchange orders which have already become binding upon the supplier underthis article 36 would be to increase or decrease the contract price asoriginally set forth in article 12 (contract price and technical servicefee)hereof by more than fifteen per cent, provided, however, that theaddition to the contract price of the price for any nominatedsub-contractor under article 20.2 (nominated sub-contractor(s))hereofshall not be counted for this purpose. the supplier may give a notice ofobjection thereto prior to furnishing the written statement pursuant toarticle 36.4 above. if the buyer accepts the supplier's objection, thebuyer shall withdraw the proposed change and notify the supplier inwriting thereof.

the supplier's failure so to object shall neither affect its right toobject to any subsequent requested changes or change orders hereunder, noraffect its right to take into account, when making such subsequentobjection, the percentage increase or decrease in the contract price whichany change not objected to by the supplier represents.

36.7 if the supplier fails to furnish the statement referred to inarticle 36.4 above within a reasonable period or, if the buyer, afternegotiation with the supplier, does not agree within a reasonable periodto the amount of the increase or decrease in the contract price, theadjustment of the time for delivery, and/or any other modification to thecontract proposed by the supplier or to the supplier's entitlement toobject to the change under article 36.6 above, the buyer shall have theright to decide whether or not to effect such change, irrespective ofwhether such change has been proposed under article 36.1 or article 36.2above. the buyer may issue a written instruction to the supplier to carryout the change pending agreement on such matters with the supplier.

if an agreement is not reached between the buyer and the supplierwithin sixty (60)days after the buyer's instruction to carry out thechange, concerning the increase or decrease in the contract price and allof the other matters described above, either party may refer the disputeto an expert pursuant to article 7.2 (reference to expert)hereof.

36.8 if the buyer requests a change and subsequently decides not toorder such change, the supplier shall be entitled to reimbursement of allcosts incurred by it for the work involved in preparing the statementreferred to in article 36.4 above, provided that the supplier has given aprior notice to the buyer of the approximate costs it will incur and itsintention to claim reimbursement thereof, and the buyer has agreed thatthe supplier should proceed with the preparation of the statement on thisbasis.

article 37. extension of time for delivery

37.1 the time for delivery shall be extended if the supplier shall bedelayed or impeded in the performance of any of its obligations under thecontract by reason of any of the following:

(a)any change in the works as provided in article 36 (change inworks)hereof; or

(b)any occurrence of force majeure as provided in article 35 (force majeure)hereof; or

(c)any suspension order given by the buyer under article 38(suspension)hereof or reduction in the rate of progress pursuant toarticle 38,2 hereof;

(d)any default or breach of the contract by the buyer or anyactivity, act or omission of any other contractors employed by the buyer;or

(e)any other matter specifically mentioned in the contract;

by such period as shall be fair and reasonable in all thecircumstances and as shall fairly reflect the delay or impedimentsustained by the supplier.

37.2 except where otherwise specifically provided elsewhere in thecontract, the supplier shall submit to the buyer a notice of a claim foran extension of the time for delivery, together with particulars of theevent or circumstance justifying such extension as soon as reasonablypracticable after the commencement of such event or circumstance. as soonas reasonably practicable after receipt of such notice and supportingparticulars of the claim, the buyer and the supplier shall agree upon theperiod of such extension, failing which either party may refer the disputeto an expert pursuant to article 7.2 (reference to expert)hereof.

37.3 the supplier shall at all times use its reasonable efforts tominimize any delay in the performance of its obligations under thecontract.

article 38. suspension

38.1 the buyer may by notice to the supplier order the supplier tosuspend performance of all or any of its obligations under the contract.such notice shall specify the obligation of which performance is to besuspended, the effective date of the suspension and the reasons therefor.the supplier shall thereupon suspend performance of such obligation(except those obligations which are necessary for the care or preservationof the works)until ordered in writing to resume such performance by thebuyer.

if, by virtue of a suspension order given by the buyer, otherwise thanby reason of the supplier's default or breach of the contract, thesupplier's performance of any of its obligations is suspended for anaggregate period of more than ninety (90)days, then at any timethereafter and provided that at that time such performance is stillsuspended, the supplier may give a notice to the buyer requiring that thebuyer shall, within twenty-eight (28)days of receipt of the notice,either order the resumption of such performance or request andsubsequently order a change in accordance with article 36 (change inworks)hereof excluding the performance of the suspended obligations fromthe contract. if the buyer fails so to do within such period, the suppliermay, by a further notice to the buyer, elect to treat the suspension,where it affects a part only of the works, as a deletion of such part inaccordance with article 36 (change in works)hereof or, where it affectsthe whole of the works, as termination of the contract under article 39.1(termination for buyer's convenience)hereof.

38.2 if:

(a)the buyer has failed to pay the supplier any sum due under thecontract within the specified period, or has failed to approve any invoiceor supporting documents without due cause or amend the letter of creditand the letter of guarantee delivered to the supplier pursuant to article13 (terms of payment)hereof, or commits a substantial breach of thecontract, the supplier may give a notice to the buyer requiring payment ofsuch sum, with interest thereon as stipulated in article 13.4 hereof, orrequiring approval of such invoice or supporting documents or theamendment of such letter of credit and such letter of guarantee orspecifying the breach and requiring the buyer to remedy the same, as thecase may be. if the buyer fails to pay such sum together with suchinterest or fails to approve such invoice or supporting documents or giveits reasons for withholding such approval or amend such letter of creditand such letter of guarantee or fails to remedy the breach or take stepsto remedy the breach within fourteen (14)days after receipt of thesupplier's notice; or

(b)the supplier is unable to carry out any of its obligations underthe contract for any reason attributable to the buyer, including but notlimited to the buyer's failure to provide access to the contract plant orother areas or failure to obtain any governmental permit necessary for theexecution and/or completion of the works;

then the supplier may by notice to the buyer suspend performance ofall or any of its obligations under the contract, or reduce the rate ofprogress.

38.3 if the supplier's performance of its obligations is suspended orthe rate of progress reduced pursuant to this article 38, then the timefor delivery shall be extended in accordance with article 37 (extension oftime for delivery)hereof and any and all additional costs or expensesincurred by the supplier as a result of such suspension or reduction shallbe paid by the buyer to the supplier in addition to the contract price,except in the case of suspension order or reduction in the rate ofprogress by reason of the supplier's default or breach of the contract.

38.4 if the supplier's performance of its obligations is suspendedpursuant to this article 38 for a period longer than ten (10)weeks, thesupplier may repatriate the supplier's engineer and its sub-contractors'personnel at the buyer's cost with the prior written consent of the buyer.

article 39. termination

39.1 termination for buyer's convenience

39.1.1 the buyer may at any time terminate the contract for any reasonby giving the supplier a notice of termination which refers to thisarticle 39.1.

39.1.2 upon receipt of the notice of termination under article 39.1.1above, the supplier shall either immediately or upon the date specified inthe notice of termination:

(a)cease all further works, except for such work as the buyer mayspecify in the notice of termination for the sole purpose of protectingthat part of the works already executed; and

(b)terminate all sub-contracts, except those to be assigned to thebuyer pursuant to paragraph (d)(ii)below; and

(c)repatriate the supplier's engineer and its sub- contractors'personnel from the contract plant; and

(d)ubject to the payment specified in article 39.1.3 below:

(i)deliver to the buyer the parts of the works executed by thesupplier up to the date of termination; and(ii)to the extent legally possible assign to the buyer all right,title and benefit of the supplier to the works and in the equipment as atthe date of termination, and, as may be required by the buyer, in anysub-contracts concluded between the supplier and its sub-contractors; and(iii)deliver to the buyer all drawings, specifications and otherdocuments prepared by the supplier or its sub-contractors as at the dateof termination in connection with the works.

39.1.3 in the event of termination of the contract under article 39.1.1 above, the buyer shall pay to the supplier the following amounts:

(a)the contract price properly attributable to the parts of the worksexecuted by the supplier as at the date of termination; and

(b)the costs reasonably incurred by the supplier in the repatriationof the supplier's and its sub-contractors' engineer; and

(c)any amounts to be paid by the supplier to its sub- contractors inconnection with the termination of any sub- contracts, including anycancellation charges; and

(d)the costs incurred by the supplier in protecting the works; and

(e)the reasonable amount of profit for the parts of the works notexecuted by the supplier as at the date of termination; and

(f)the cost of satisfying all other obligations, commitments andclaims which the supplier may in good faith have undertaken with thirdparties in connection with the contract and which are not covered byparagraphs (a)through (d)above.

39.2 termination for supplier's default

39.2.1 the buyer, without prejudice to any other rights or remedies itmay possess, may terminate the contract forthwith in the followingcircumstances by giving a notice of termination to the supplier referringto this article 39.2 and its reasons for termination:

(a)if the supplier becomes bankrupt or insolvent, or has a receivingorder issued against it, or compounds with its creditors, or, being acorporation, a resolution is passed or order is made for its winding up(other than a voluntary liquidation for the purposes of amalgamation orreconstruction)or a receiver is appointed over any part of itsundertaking or assets, or if the supplier takes or suffers any otheranalogous action in consequence of debt; or

(b)if the supplier shall assign or transfer the contract or any rightor interest therein in violation of the provision of article 40(assignment)hereof.

39.2.2 if the supplier:

(a)has abandoned or repudiated the contract; or

(b)has without valid reason failed to commence the works promptly orhas suspended (other than pursuant to article 38.2 hereof)the progress ofthe works for more than twenty-eight (28)days after receiving a writteninstruction from the buyer to proceed; or

(c)hall persistently fail to execute the works in accordance withthe contract or persistently neglect to carry out its obligations underthe contract without due cause; or

(d)hall refuse or be unable to provide sufficient materials,services or labor to execute and complete the works in the mannerspecified in the program furnished under article 14 (work program)hereofat rates of progress that give reasonable assurance to the buyer that thesupplier can deliver the equipment by the time for delivery as extended;

then the buyer may, without prejudice to any other rights it maypossess under the contract, give a notice to the supplier stating thenature of the default, and requiring the supplier to remedy the same. ifthe supplier fails to remedy or to take steps to remedy the same withinfourteen (14)days of its receipt of such notice, then the buyer mayterminate the contract forthwith by giving a notice of termination to thesupplier which refers to this article 39.2.

39.2.3 upon receipt of the notice of termination under article 39.2.1or article 39.2.2 above, the supplier shall either immediately or uponsuch date as is specified in the notice of termination:

(a)cease all further works, except for such work as the buyer mayspecify in the notice of termination for the sole purpose of protectingthat part of the works already executed; and

(b)terminate all sub-contracts, except those to be assigned to thebuyer pursuant to paragraph (d)below; and

(c)deliver to the buyer the parts of the works executed by thesupplier up to the date of termination; and

(d)to the extent legally possible assign to the buyer all right,title and benefit of the supplier to the works and in the equipment as atthe date of termination, and, as may be required by the buyer, in anysub-contracts concluded between the supplier and its sub-contractors; and

(e)deliver to the buyer all drawings, specifications and otherdocuments prepared by the supplier or its sub-contractors as at the dateof termination in connection with the works.

39.2.4 the buyer may expel the supplier from the contract plant andthe buyer may complete the works itself or by employing any third party.

39.2.5 subject to article 39.2.6 below, the supplier shall be entitledto be paid the contract price attributable to the works executed as at thedate of termination and the costs, if any, incurred in protecting theworks. any sums due to the buyer from the supplier accruing prior to thedate of termination shall be deducted from the amount to be paid to thesupplier under this contract.

39.2.6 if the buyer completes the works, the cost of completing theworks by the buyer shall be determined.

if the sum which the supplier is entitled to be paid pursuant toarticle 39.2.5 above, plus the reasonable costs incurred by the buyer incompleting the works exceeds the contract price, the supplier shall beliable for such excess.

if such excess is greater than the sums due to the supplier underarticle 39.2.5 above, the supplier shall pay the balance to the buyer, andif such excess is less than the sums due to the supplier under the saidarticle 39.2.5, the buyer shall pay the balance to the supplier. the buyerand the supplier shall agree in writing the computation described aboveand the manner in which any sums shall be paid.

39.3 termination by supplier

39.3.1 if:

(a)the buyer has failed to pay the supplier any sum due under thecontract within the specified period; or has failed to approve any invoiceor supporting documents without due cause or amend the letter of creditand the letter of guarantee delivered to the supplier pursuant to article13 (terms of payment)hereof, or commits a substantial breach of thecontract, the supplier may give a notice to the buyer requiring payment ofsuch sum, with interest thereon as stipulated in article 13.4 hereof, orrequiring approval of such invoice or supporting documents or theamendment of such letter of credit and such letter of guarantee orspecifying the breach and requiring the buyer to remedy the same, as thecase may be. if the buyer fails to pay such sum together with suchinterest or fails to approve such invoice or supporting documents or giveits reasons for withholding such approval or amend such letter of creditand such letter of guarantee or fails to remedy the breach or take stepsto remedy the breach within fourteen (14)days after receipt of thesupplier's notice; or

(b)the supplier is unable to carry out any of its obligations underthe contract for any reason attributable to the buyer, including but notlimited to the buyer's failure to obtain any governmental permit necessaryfor the execution and/or completion of the works,then the supplier may give a notice to the buyer thereof and if thebuyer has failed to pay the outstanding sum or to approve the invoice orsupporting documents or amend the letter of credit and the letter ofguarantee, or to give its reasons for withholding such approval or toremedy the breach within twenty-eight (28)days of such notice or if thesupplier is still unable to carry out any of its obligations under thecontract for any reason attributable to the buyer within twenty-eight (28)days of the said notice, the supplier may by a further notice to the buyerwhich refers to this article 39.3.1 forthwith terminate the contract.

39.3.2 the supplier may terminate the contract forthwith by giving anotice to the buyer to that effect and which refers to this article 39.3.2if the buyer becomes bankrupt or insolvent, or has a receiving orderissued against it, or compounds with its creditors, or, being acorporation, a resolution is passed or order is made for its winding up(other than a voluntary liquidation for the purposes of amalgamation orreconstruction), or a receiver is appointed over any part of itsundertaking or assets or if the buyer takes or suffers any other analogousaction in consequence of debt.

39.3.3 if the contract is terminated under article 39.3.1 or article

39.3.2 above, then the supplier shall immediately:

(a)cease all further works, except for such work as may be necessaryfor the purpose of protecting that part of the works already executed; and

(b)terminate all sub-contracts, except those to be assigned to thebuyer pursuant to paragraph (d)(ii)below; and

(c)repatriate the supplier's engineer and its sub-contractors'personnel from the contract plant; and

(d)ubject to the payment specified in article 39.3.4 below:(i)deliver to the buyer the parts of the works executed by thesupplier up to the date of termination; andii)to the extent legally possible assign to the buyer all right,title and benefit of the supplier to the works and in the equipment as atthe date of termination, and, as may be required by the buyer, in anysub-contracts concluded between the supplier and its sub-contractors; and(iii)deliver to the buyer all drawings, specifications and otherdocuments prepared by the supplier or its sub-contractors as at the dateof termination in connection with the works.

39.3.4 if the contract is terminated under article 39.3.1 or article39.3.2 above, the buyer shall pay to the supplier all payments specifiedin article 39.3.3 above and reasonable compensation for all loss or damagesustained by the supplier arising out of, in connection with or inconsequence of such termination.

39.3.5 termination by the supplier pursuant to this article 39. 3 iswithout prejudice to any other rights or remedies of the supplier whichmay be exercised in lieu of or in addition to the rights conferred by thisarticle 39.3.

39.4 in this article 39, the expression "works executed" shall includeall work executed, services provided and all equipment acquired (orsubject to a legally binding obligation to purchase)by the supplier andused or intended to be used for the purpose of the works, up to andincluding the date of termination.

39.5 in this article 39, in calculating any monies due from the buyerto the supplier, due account shall be taken of any sum previously paid bythe buyer to the supplier under the contract including any advance paymentpaid pursuant to appendix 2 (payment terms)hereto.

39.6 if the contract is terminated by either party, thennotwithstanding anything to the contrary provided in this article 39, therights and obligations of the buyer and the supplier in respect of theprocess licence granted under article 16.1 hereof shall be subject to theconditions specified in appendix 6 (licence conditions)hereto.

article 40. assignment

neither the buyer nor the supplier shall without the express priorwritten consent of the other (which consent shall not be unreasonablywithheld)assign to any third party the contract or any part thereof, orany right, benefit, obligation or interest therein or thereunder, exceptthat the supplier shall be entitled to assign either absolutely or by wayof charge any monies due and payable to it or which may become due andpayable to it under the contract.

the buyer(signature):_________ the supplier(signature):_________

date:_________ date:_________

appendix 1 breakdown of contract price

appendix 2 terms of payment

appendix 2-1 cash payment with retention

appendix 2-2 deferred payment

appendix 3 form of letter of credit/guarantee

appendix 3-1 letter of credit

appendix 3-2 letter of guarantee (cash payment with retention)

appendix 3-3 letter of guarantee (deferred payment)

appendix 4 form of bonds

appendix 4-1 advance payment bond

appendix 4-2 performance bond

appendix 4-3 retention bond

1. general

this appendix sets out;

(1)the preconditions to the validity of the process performanceguarantees referred to in article 28 (process performance guarantees) ofthe agreement,

(2)the guaranteed items and values/levels subject to the process performance guarantees,

(3)the procedure of the execution of the performance test (includingany repeated run thereof),

(4)the minimum levels of the process performance guarantees, and

(5)the formula for calculation of liquidated damages for failure to attain the process performance guarantees.

2. preconditions

the supplier gives the process performance guarantees (specifiedherein)for the_________ unit and the _________ unit, subject to the followingpreconditions being fully satisfied in addition to full satisfaction ofthe conditions specified in article 28.2 of the agreement;

(1)each such unit is fed and operated with the requisite volumes ofraw materials, lubricants, chemicals, catalysts, consumable materials andutilities having the characteristics specified in appendix 7-2 (technicalspecifications)to the agreement,

(2)the performance test (including any repeated run thereof)is to becarried out by the buyer under the technical services given by thesupplier's engineer to demonstrate the process performance guarantees andthe results of the performance test (including any repeated run thereof)are measured and evaluated in the manner specified in paragraph 4 below,

(3)the buyer shall furnish a sufficient number of qualified operatingand maintenance personnel as specified in appendix 7-1 (scope of works andsupply)to the agreement to permit a successful performance test to becompleted, and

(4)the _________ unit and _________ unit are operated at the full design capacity.

3. guaranteed items and values/levels

subject to compliance with the foregoing preconditions the supplier guarantees as follows:

(1)_________ unit

(2)_________ unit

4. performance test procedure

4.1 general

after the initial operation of the contract plant, the performancetest shall be carried out to demonstrate the supplier' s processperformance guarantees specified in paragraph 3 above, subject to theconditions set forth below and in other parts of this appendix 7 (processperformance guarantees):

(1)detailed test procedures:before the start of the commissioning, the supplier shall propose tothe buyer detailed performance test procedures which will specify, amongothers, (i)the operating data to be recorded for each unit and the mannerin which the operating data shall be taken and used in evaluating theperformance of the contract plant, (ii)the specific method of measuringindividual liquid, gas and solid streams, (iii)the test sampling methodand analytical procedures, and (iv)the evaluation method of all the datacollected during the performance test including all correction of errorand tolerance of measurements and analysis. the buyer and the suppliershall agree upon these detailed performance test procedures prior toconducting the performance test.

(2)performance test schedule:the performance test schedule shall be determined with due regard tothe actual progress of the works and condition of the contract plant.

4.2 conditions for commencement of performance test

the performance test will be commenced when the following conditions

are satisfied from the viewpoint of the process design requirements:

(1)contract plant operation: the contract plant shall be operated at the normal operatingconditions shown on the applicable flow diagrams and in the operatingmanual. minor variations from the conditions indicated on the flowdiagrams and in the operating manual can be made at the discretion of thesupplier to obtain optimum process performance.

(2)instruments:a check of the contract plant instruments and analytical apparatusshows that they function properly.

(3)supply of raw materials and utilities by buyer:the contract plant is supplied with adequate and uninterruptedsupplies of raw materials and utilities by the buyer as required, at thebattery limit conditions specified in appendix 7-2 (technicalspecifications)to the agreement to permit a successful performance testto be completed.

(4)supply of _________:the contract plant is supplied by the buyer with adequate and timelysupplies of _________ and/or other consumables pursuant to appendix 7-2(technical specifications) to the agreement to permit a successfulperformance test to be completed.

(5)design basis:the buyer shall reconfirm the validity and accuracy of the designbasis (specified in appendix 7-2 (technical specifications) to theagreement)on which the supplier's process performance guarantees arebased.

(6)minor deviations:in the event of minor deviations from the design basis, the buyershall adjust with the prior approval of the supplier the operatingconditions of the contract plant within a range of sound operatingpractice to take care of such deviations.

(7)other deviations:if the deviation is of such nature that cannot be recovered byadjustment of the operating conditions, the supplier is relieved of theprocess performance guarantees specified herein to the extent that theyare affected by such deviations. in the event of such deviation, thesupplier shall provide new guarantees. these new guarantees shall beconsistent with the new specifications and conditions and satisfactory asa basis for demonstrating the performance of the contract plant.

(8)other conditions:any other conditions necessary for the commencement of the performance test as agreed between the buyer and the supplier have been satisfied.

4.3 performance test

(1)notice of readiness to carry out performance test:when the supplier considers that the contract plant is ready for theperformance test and that all of the conditions stated in paragraph 4.2above have been fulfilled, then he shall give the buyer a notice ofreadiness to carry out the performance test.within _________ hours of the receipt of such notice, the buyer shall;(a)acknowledge that the contract plant is ready for the performancetest to be conducted, or(b)submit to the supplier a written statement setting forth in whichrespects the contract plant is not ready for such performance test.if the buyer considers that contract plant is not ready, then he shallspecify in writing the conditions preventing the start of the performancetest. the party who is responsible for such conditions shall rectify thedefault.the performance test shall be commenced as soon as the aboveconditions are corrected.

(2)performance test run:the performance test shall extend continuously over a (_________) hour period.

(3)two or more units:where the contract plant includes two or more individual process unitsfor which separate process performance guarantees are to be demonstrated,the performance test may be carried out individually on each of the unitsor simultaneously with any other unit or units.

(4)buyer's personnel:the performance test shall be carried out by the buyer's operatingpersonnel according to the instructions set forth in the supplieroperating manual and under the technical services of the supplier'sengineer.

(5)interruption of performance test due to supplier:if the performance test run is interrupted because of failure of thesupplier, the performance test shall be repeated. the results obtainedduring such an interrupted operation shall not be used for evaluation ofthe performance test.

(6)interruption of performance test due to buyer:if the performance test is interrupted because of failure of the buyerto comply with any of the conditions set forth in this appendix 5 (processperformance guarantees)and any other parts of the agreement or because ofimproper maintenance or operation on the part of the buyer, theperformance test shall be repeated but if it had been running for morethan _________ hours then the duration of the performance test before theinterruption may be credited to the performance test period and theresumed performance test will be continued for the remainder of theperformance test period.

(7)conditions for resumption:the conditions which have caused the interruption shall be correctedby the party who was responsible for the interruption. upon restoration ofthe steady and satisfactory performance test operating conditions, theperformance test shall be resumed.

(8)operating data:operating and analytical data recorded during the performance testshall be taken down by the buyer and made available to the supplier forevaluation.

(9)sampling and analysis:during the performance test, samples necessary for evaluation of theperformance of the contract plant shall be taken as often as the supplierand the buyer mutually agree.the samples shall include all streams which may be necessary to checkthe data from which the degree of compliance with the process performanceguarantees can be determined.the location and methods of sampling the streams shall be inaccordance with those as agreed between the parties hereto under paragraph4.1 (1)above.

(10)testing:testing of all samples shall be carried out by the buyer's laboratoryor an independent industrial laboratory acceptable to the parties heretoaccording to the analytical procedure as agreed between the parties heretounder paragraph 4.1 (1)above. the supplier's and the buyer's personnelmay have free access to the laboratory when the samples are tested and maycheck the test results.

4.4 evaluation and report of performance test.

(1)evaluation of performance test data:evaluation of the performance test data including the operating andlaboratory data accumulated during, or as a part of, the performance testshall be done by the supplier within _________ days after the completion ofthe performance test.

(2)abnormal test data:any abnormal test data which is not compatible with other significantdata shall be ignored or the test data in question may be taken again ifpractical from the contract plant operating conditions.

(3)tolerances:the performance of the contract plant shall be evaluated on the basisof the average performance over the entire period of the performance testand after adjustment with due regard to tolerances in instrument readings.

(4)report of test results:the supplier shall submit to the buyer a report on the performancetest in writing, indicating whether the process performance guaranteeshave been met.the report shall include;

(a)test results,

(b)analysis,

(c)the supplier's evaluation, and

(d)reference information supporting the evaluation.

(5)reasons for failure:if the performance test results shown that the performance test wasunsuccessful, the supplier shall state probable reasons for such failure.

(6)buyer's response to report:within _________ days after receipt of the performance test report, thebuyer shall signify in writing agreement or comments.

(7)supplier's action in the case of performance test failure:if the evaluation of performance test results shown that the failureof the performance test is the supplier's fault, then the supplier shalladvise the buyer of his intention as to whether he wishes to pay theliquidated damages or take corrective measures and repeat the performancetest in accordance with article 28.4 of the agreement.

4.5 additional performance test

(1)if, due to the supplier's default, any part of the processperformance guarantees is not met and the supplier takes correctiveactions to enable the contract plant to satisfy the process performanceguarantees concerned, an additional performance test shall be conductedpursuant to article 28 (process performance guarantees)of the agreement.

(2)modifications of contract plant:before repetition of any performance test the supplier shall take thefollowing actions;

(a)to investigate the cause for non-fulfillment of the processperformance guarantees, and

(b)to offer the buyer to change the operating conditions of thecontract plant, and/or

(c)to make such changes, modifications or additions to theengineering or equipment of the contract plant as considered necessary tomeet the process performance guarantees.

(3)buyer's permission:the buyer shall allow the supplier necessary time to carry out anyactions deemed necessary by the supplier and the buyer shall make thecontract plant available for that purpose and operate the contract plantin such conditions as requested by the supplier.

(4)additional test:after the remedial actions stated above are completed the performancetest shall be repeated in the modified part of the contract plant andshall be carried out under the same conditions as provided for the firstperformance test.the performance test shall be repeated as often as the supplier deemsnecessary from the date when the buyer and the supplier shall confirm thatthe contract plant is ready for the performance test pursuant to article25.1.6 of the agreement.

5. failure in guarantees and liquidated damages

5.1 failure to attain guaranteed values/levels

(1)for _________ unit:if the actual production capacity of _________ obtained in theperformance test (or any repeated run thereof)is less than the guaranteedvalue of production capacity of _________ specified in paragraph 3.1 (a)above, but is not less than the minimum level specified in paragraph 5.2(a)below, and/or if the actual average quality of _________ produced duringthe performance test fail to meet the guaranteed levels of quality of_________ specified in paragraph 3.1 (b)above, but meet the minimum levelsspecified in paragraph 5.2 (b)below, and in each/either case the supplierelects to pay liquidated damages to the buyer in lieu of making changes,modifications and/or additions to the _________ unit pursuant toarticle 28.4 of the agreement, then the supplier shall pay liquidateddamages as follows:

(a)production capacity:at the rate of _________ for every complete one per cent (1%) of thedeficiency in the production capacity of the _________ unit.

(b)quality of _________: (sketch)

(2)for _________ unit:if the actual production capacity of _________ obtained in theperformance test (or any repeated run thereof)is less than the guaranteedvalue of production capacity of _________ specified in paragraph 3.2 (a)above, but is not less than the minimum level specified in paragraph 5.2(a)below, and/or if the actual average quality of _________ producedduring the performance test fail to meet the guaranteed levels of qualityof _________ specified in paragraph 3.2 (b)above, but meet the minimumlevels specified in paragraph 5.2 (b)below, and in each/either case thesupplier elects to pay liquidated damages to the buyer in lieu of makingchanges, modifications and/or additions to the _________ unit pursuantto article 28.4 of the agreement, then the supplier shall pay liquidateddamages as follows:

(a)production capacity:at the rate of _________ for every complete one per cent (1%) of thedeficiency in the production capacity of the _________ unit.

(b)quality of _________: (sketch)

5.2 minimum levels

notwithstanding the provisions of this paragraph, if as a result ofthe performance test (or any repeated run thereof)the following minimumlevels of process performance guarantees are not attained by the supplier,the supplier shall at its own cost make good any deficiencies until the_________ unit and/or the _________ unit reach any of such minimum performancelevels, pursuant to article 28.3 of the agreement:

(a)the minimum levels of the production capacity of the _________ unitand/or the _________ unit attained in the performance test:_________ per cent of the guaranteed production capacity for each/eitherunit.

(b)the minimum levels of the product quality of the _________ and ofthe _________ are as follows: (sketch)

5.3 limitation of liability

subject to paragraph 5.2 above, the supplier's aggregate liability topay liquidated damages for failure to attain the process performanceguarantees shall not exceed _________ per cent of the contract price.

general:

the process licence(s)granted by the supplier pursuant to article 16(licence/use of technical information)of the agreement are as follows:

licence conditions for process a (for process owned by third party)

1. definitions

"process a" means a process developed by (inventor's name) for (theproduction of products)by (process).

"process a unit" means a unit employing process a which is to beinstalled in (name of contract plant)at (factory)in (city),(state/county), (country), having the design capacity of (capacity).

"patent rights" means patents [in any country for inventions relatingto process a]/[in country (ies)] for which the supplier is entitled togrant licences, and applications for such patents if and to the extentthat the patent application was filed before the cut- off date.

"process information" means the design, drawings, specifications,manuals, instructions, data and other technical information provided bythe supplier to the buyer in connection with the process design a unit.

"cut-off date" means the first day following the lapse of _________years from the signing date of the agreement.

"process licensor" means _________ who has authorized thesupplier to grant licences to the buyer pursuant to article 16(licence/use of technical information)of the agreement and this appendix6.

other words and expressions shall have the meanings ascribed to themin article 1 (definitions)of the agreement.

2. licensing conditions

the supplier shall, save as hereinafter provided, grant to the buyer anon-exclusive, non-transferable right and licence, without the right tosub-license, under the patent rights and the process information:

(1)to use process a in the process a unit, and

(2)to use and sell the products produced by the process a unit [incountry (ies)]/[in any country of the world except the country orcountries set out below:]

3. paid up licence and additional licence fees

the paid up licence fees payable pursuant to article 12 (contractprice and technical service fee)of the agreement and the appendices tothe agreement apply to the process a unit operating at its stated designcapacity. if the design capacity is in any way increased or if the processa unit is in any way operated in excess of its design capacity then thebuyer shall pay to the supplier additional licence fees calculated inaccordance with the following formula:(calculation formula)

4. improvements and grant-back

4.1 subject to paragraph 3 above, and where duly authorized by theprocess licensor, the supplier shall:

(1)from time to time, and to the extent that the supplier is entitledto disclose the same, provide the buyer with technical informationrelating to improvements in process a, whether or not patentable, madeavailable to the supplier by the process licensor to the extent that suchinformation is useful for the operation of the process a unit; and

(2)grant to the buyer a licence mentioned in (1)above in the sameterms as contained in paragraph 2 above.

such licence shall where permitted by the process licensor, be madeavailable without additional payment, unless and to the extent thatparagraph 3 above applies. the supplier's obligation under this paragraphshall terminate on the cut-off date.

4.2 the buyer shall:

(1)from time to time provide the supplier with technical informationrelating to any inventions, improvements and/or developments made by thebuyer in connection with the design, operation or maintenance of theprocess a unit;

(2)grant to the supplier the royalty-free, non-exclusive (non-transferable)right and licence to use the technical information disclosedunder paragraph 4.2 (1)in process a, and to practice any patents grantedin respect of any such information in process a, and to use and sell theproducts produced by process a. the said rights and licences shall beextended to the process licensor and the licensees of the process licensorand of the supplier for use in process a. the buyer's obligations underthis paragraph shall terminate on the cut-off date.

5. patent indemnity

notwithstanding article 29 (patent indemnity)and subject to article30 (limitation of liability)of the agreement the supplier's liability forindemnification pursuant to article 29 (patent indemnity)of the agreementarising in connection with the licence hereby granted shall be limited to_________ per cent of the paid up licence fee specified in the appendix 1(breakdown of contract price)to the agreement. the supplier's liabilityfor indemnification under this paragraph shall terminate on the cut-offdate.

the buyer shall be responsible for and pay any damages, claims ordemands (including legal and other professional fees and expenses) inexcess of the limit specified above.

6. special conditions for termination

6.1 if the contract is terminated by either party, then unless theparties agree otherwise, the rights and obligations of the buyer and thesupplier in respect of licences for process a granted pursuant to thisappendix 6 shall be terminated, except those provided in paragraph 6.2below.

6.2 notwithstanding the provision of paragraph 6.1 above, in the eventthat the contract is terminated by the buyer due to the supplier'sdefault, the buyer shall have the right to request the supplier tocontinue to grant the licences hereunder and to supply the processinformation. in such event, the supplier shall do or have the processlicensor so grant licences and supply the process information either i)byan assignment or novation of the agreement(s)for licences and the processinformation between the process licensor and the supplier, ii) byarranging an agreement for the licences and the process information to beconcluded directly between the process licensor and the buyer or iii) byan agreement to be concluded between the buyer and the supplier separatelyfrom the contract.

6.3 on the occasion of the termination of the contract, except incases where the licences will be continued to be granted in accordancewith paragraphs 6.1 and 6.2 above:

(1)all rights and licences granted hereunder shall terminate;

(2)all the process information provided by the supplier to the buyerand all copies thereof shall be returned to the supplier forthwith;

(3)the basic design fee shall be payable on a pro rata for the basicdesign work performed up to the date of termination of the contract, suchcalculation being based on a fee of _________ for completion of the basicdesign work for the process a unit;

(4)if the basic design for the process a unit (whether preliminary orfinal)has been submitted to the buyer prior to the date of termination ofthe contract, the supplier shall be entitled to receive _________ per centof the paid up licence fee from the buyer. the buyer shall pay the unpaidbalance, or, as the case may be, the supplier shall refund the excess paidby the buyer within 60 days of the date of termination of the contract;

(5)if no basic design for the process a unit has been submitted tothe buyer prior to the date of termination of the contract, the suppliershall refund to the buyer any paid up licence fee paid by the buyer to thesupplier as at the date of termination of the contract, and

(6)the buyer's obligation under paragraph 8 below shall survive anytermination of the contract.

6.4 if, in the twelve months following the date of termination of thecontract, the buyer concludes a licence agreement either with the supplieror the process licensor in respect of any process (es) hereby licensed,any sum paid by the buyer as paid up licence fee under paragraph 6.3 (4)above shall be credited to any licence fees due under such agreement.

7. trade mark licence conditions

8. secrecy obligation conditions

appendix 7-1 scope of works and supply

1. scope of works and supply (sketch)

item:_________

contents:_________

supplier's scope:_________

buyer's scopep:_________

remarks:_________

2. list of equipment

the equipment to be provided by the supplier in accordance witharticle 8.1 (scope of works)of the agreement shall be as follows:

3. list of technical documents

the technical documents to be provided by the supplier in accordancewith article 8.4 of the agreement shall be as follows:

4. training of buyer's engineers

the training of the buyer's engineers referred to in article 8.6 ofthe agreement shall be conducted in accordance with the followingconditions:

training of buyer's engineers

1. the supplier agrees to receive the buyer's engineers, includinginterpreters, for technical training within a period of _________ man daysincluding round trip traveling days at the factories in _________(country)selected by the supplier.

2. the supplier shall appoint its skilled and qualified engineer (s)to instruct the buyer's engineers and to explain all the technicalproblems relating to the equipment.

3. the supplier shall arrange for the buyer's engineers to be trainedat different sections in the above factories to enable them to understandthe technology and operation of the contract plant, and inspection, repairand maintenance of the equipment.

4. the supplier shall provide for the buyer's engineers, free ofcharge, test instruments, tools, technical documentation, drawings,reference data, working clothes, safety wear and other necessities as wellas suitable offices during their training period provided that the buyershall return them to the supplier when the training has finished.

5. the supplier shall submit the preliminary training program to thebuyer three months before the beginning of the training to enable thebuyer to begin to study. one month before the start of the training, thebuyer shall notify the supplier of the personal data of the buyer'sengineers including name, sex, date of birth, nationality, specialty,qualifications, working place and mastery of foreign language. the finaltraining program shall be fixed by both parties through consultations asprovided in the contract and the actual requirements of the buyer'sengineers after their arrival in _________ (country).

6. before the training starts, the supplier shall explain in detail to the buyer's engineers the operating regulations and other precautions for work.

7. the buyer's engineers shall observe the laws and regulations of the_________ (country)and rules and stipulations at the factories during theirstay in the _________ (country).

8. the supplier shall provide the buyer's engineers withaccommodation, meals and transport facilities at the buyer's expense.

in case of illness or accident of the buyer's engineers during theirstay in _________ (country), the supplier shall take necessary measures totake care of the buyer's personnel in the best possible way. the costshall be borne by the buyer.

9. the supplier shall assist the buyer's engineers with all theformalities necessary to obtain visas for entry and exit as well as duringtheir stay in _________ (country).

10. the supplier shall not charge a training fee to the buyer inaddition to the contract price, provided that all cost and expenses withrespect to the buyer's engineers' traveling and stay in _________(country)shall be borne by the buyer.

11. the supplier shall take necessary measures for the security of thebuyer's engineers during their stay in (country).

appendix 7-2 technical specifications

appendix 7-3 technical documents for approval by the buyer

appendix 7-4 time schedule

appendix 7-5 the supplier's engineer's technical services and working conditions

1. the supplier's engineer

in order to ensure the smooth construction of the contract plant bythe buyer, the supplier shall be responsible for sending skilled, healthyand competent engineers to the contract plant to carry out the technical.services during field construction, the precommissioning and thecommissioning period.

the number of the supplier's engineer, the duration of their stay inthe buyer's country and their specialist skills are as indicated in table1 attached to this appendix.

the exact number of the supplier's engineer, the duration of theirstay in the buyer's country and the date of arrival and departure from thecontract plant shall be decided by both parties through negotiation basedon how the field construction is progressing.

if adjustment to the man/months stipulated in the attached table needsto be made, both parties will resolve such matters amicably.

2. technical services by the supplier's engineer

2.1 the supplier's representative stated in article 18.2 (supplier'srepresentative)of the agreement shall appoint one of the supplier'sengineer to be its general representative at the contract plant inaccordance with article 24. 1. 3 of the agreement. he shall performgeneral technical services as contemplated in the contract and fullycooperate and consult with the buyer's general representative on thecontract plant to solve any technical problems relating to the contract.the general representatives of both parties shall not have any right toalter or amend the contract unless duly authorized by both the buyer andthe supplier.

2.2 the supplier's engineer shall provide advice and instructions tothe buyer in order that the equipment can be properly erected andinstalled by the buyer at the contract plant in accordance with therelevant technical documents.

he shall also provide:

(1)advice and instructions relating to, erection, installation,mechanical testing, the precommissioning and maintenance of the equipment,as required, and

(2)advice and instructions relating to the commissioning and theperformance tests of the contract plant, as required,

and further may provide advice and instructions relating to erection,installation, mechanical testing, the precommissioning and maintenance ofthe equipment of the contract plant other than the equipment to the extentsuch advice and instructions are crucial to attain the performanceguarantees of the contract plant.

2.3 the supplier's engineer shall explain in detail the technicaldocuments, and equipment performance, method of analysis and relevantprecautions taken with respect to the equipment and shall answer and solvetechnical queries raised by the buyer under the contract.

2.4 the supplier's engineer shall give the buyer demonstrations on theoperation of the equipment in order to ensure the performance of theobligations of the supplier's engineer under the contract including, butnot limited to, the obligations set out in paragraphs 2.2 and 2.3 hereof.

3. the technical service fee of the supplier's engineer and the method of payment

3.1 the buyer shall pay the supplier's engineer technical service fee as follows:general representative (sketch)the daily technical service fee shall be paid even if the supplier'sengineer work, in aggregate, less hours than those specified in paragraph4.3 hereof for the duration of his stay at the contract plant because ofclimatic or other adverse conditions or because his working hours has tobe modified to conform with local conditions or regulations.

3.2 the daily technical service fee of the supplier's engineers shallbe calculated from the date of departure by the supplier's engineer fromhis native country up to and including the date of return to such country.

3.3 all sundays and official holidays of the buyer's country shall bepaid holidays for the supplier's engineer at the contract plant.

3.4 if any of the supplier's engineer is absent from work without theconsent of the general representatives of both parties or is absent forpersonal reasons with the consent of the general representatives of bothparties, the buyer shall not pay the technical service fee of suchengineer for the period of absence, unless the reason for such absence issickness as evidenced by the medical doctor or as agreed by the generalrepresentatives of both parties. where the supplier's engineer falls illas evidenced by the medical doctor or as agreed by the generalrepresentatives of both parties for a continuous period of more than 15days, the buyer shall cease to pay the technical service fee from the dayexceeding such 15 day period until such engineer returns to work at thecontract plant.

3.5 the technical service fee of the supplier's engineer shall be paideach month by telegraphic transfer to the supplier's account with itsdesignated bank within 30 days after the buyer has received 4 copies ofthe monthly invoices issued by the supplier together with copies of thetime sheets of the supplier's engineer signed and agreed by the generalrepresentatives of both parties. in the case of discrepancies in invoices submitted by the supplier, the buyer shall have the right to withhold theamount in dispute but shall pay the remaining amount due in time. theamount in dispute shall be discussed by the general representatives ofboth parties in order to reach a settlement.

4. working conditions and working system

4.1 two months before the supplier's engineer is due to leave for thecontract plant, the supplier shall notify the buyer of the personal dataof the supplier's engineer including name, sex, date of birth,nationality, specialty, qualifications, working place and mastery offoreign language, etc., to enable the buyer to assist in arranging hisentry visas and necessary transportation from the border of the buyer'scountry to the contract plant. the supplier shall notify the buyer, bycable/telex/fax 7 days before his departure, of his names, exact date ofdeparture, flight no., exact arrival date, amount and weight of luggage,etc.

4.2 a general working schedule and a monthly plan shall be decidedupon by the mutual agreement of the general representatives of bothparties after the arrival of the supplier's engineer at the contractplant. the supplier's engineer shall carry out his work in accordance withthe agreed working schedule with the cooperation of the buyer.

any revision of the working schedule shall be made with the agreementof the general representatives of both parties, through consultation.

4.3 the supplier's engineer shall work _________ hours per week (work_________ days per week and _________ hours per day).

the daily starting and closing time shall be in accordance with theregulations of the contract plant.

if overtime work is needed, the hours shall be agreed in advancebetween the general representatives of both parties unless such overtimework is mandatory as per paragraph 4.4 hereof or is agreed by the generalrepresentatives of both parties.

the extra hours worked by the supplier's engineer over hours ona normal working day and the hours worked on sundays and on the officialholidays shall be regarded as overtime.

4.4 the general representative of the buyer may require the supplier'sengineer to work in shifts for _________ hours per week during the period ofthe commissioning and the performance tests of the contract plant.

the work hours of the supplier's engineer on shifts within _________hours per week during the period of the commissioning and the performancetests of the contract plant shall not be regarded as overtime, providedhowever that if the supplier's engineer works in excess of the aboveworking hours per week, the extra hours shall be regarded as overtime.

4.5 whenever the supplier's engineer's overtime work comes to _________hours, the supplier's engineer shall be allowed to leave one day in lieu.

if the supplier's engineer does not take the permitted leave or if theovertime work is less than _________ hours, 1 hour of overtime shall berecorded as 1.5 hours on the time sheets and the buyer shall pay anovertime fee of _________ for every hour recorded as overtime. the overtimefee shall be paid as per paragraph 3.5 hereof.

4.6 the actual working hours, holiday with salary and overtime hoursof the supplier's engineer shall be recorded daily in the time sheets induplicate and signed by the general representatives of both parties. thetime sheet shall be the basis for the payment of the daily technicalservice fee and overtime fee of the supplier's engineer.

4.7 the progress of the work, the main work done every day, anyproblems arising or any accidents together with solutions reached shall berecorded in 2 log books written in english and signed each day by thegeneral representatives of both parties, 1 copy for each party.

5. vacations for the supplier's engineer

5.1 the supplier's engineer who is scheduled to work continuously inthe buyer's country for more than 6 months is entitled to bring his wifeand two children younger than 15 years old to the buyer's country after 6months worked at the supplier's expense.

5.2 the supplier's engineer who is accompanied by his family and whois scheduled to work continuously in the buyer's country for more than 12months shall be entitled to have a paid vacation of 15 days every 6 monthsof work.

5.3 the supplier's engineer who is not accompanied by his family andis scheduled to work continuously in the buyer's country for more than 6months shall be entitled to have a paid vacation of 12 days every 4 monthsof work.

5.4 all costs incurred on vacations for the supplier's engineerpursuant to this paragraph 5 excluding the daily technical service fee ofthe supplier's engineer under paragraph 3.1 hereof shall be borne by thesupplier.

the actual dates taken as vacation shall be decided by the generalrepresentatives of both parties through consultation provided that thework at the contract plant is not affected. the 15 days of vacation takenby the supplier's engineer shall start from the date when he leaves thebuyer's country and shall end on the date when he returns to the buyer'scountry.

the supplier agrees that all its obligations with regards to thecontract plant shall not be affected in any way during the vacation periodof the supplier's engineer.

6. compliance with laws and regulations

the supplier's engineer and his family shall observe the laws andregulations of the buyer's country and the rules and stipulations of thecontract plant during their stay in the buyer's country.

7. the buyer's responsibilities and obligations

7.1 the buyer shall make available for the supplier's engineerinterpreters at the contract plant necessary for the technical services.the interpreters shall be english/chinese and/ or _________/chinese as thecase may be and as agreed between both parties. all expenses shall beborne by the buyer.

7.2 the buyer shall assist the supplier's engineer and his family toarrange visits, to organize their arrival and departure and to sort outany formalities during their stay in the buyer's country. all expensesshall be borne by the supplier.

7.3 the buyer shall take necessary measures to ensure the security ofthe supplier's engineer and his family during their stay in the buyer'scountry.

7.4 the buyer shall make available to the supplier's engineer, free ofcharge, necessary office facilities, including but not limited to, copyservices, postage, local telephone, telex and facsimile service, safetywear and necessary tools and instruments for the technical services, aswell as transport between the lodgement and contract plant. if suchtransportation is not available, the buyer shall provide the supplier'sengineer with cars or reimburse car rental costs and shall bear theexpense of fuel costs incurred by the supplier's engineer in getting toand from the contract plant. if cars are used for such commuting whichbelong to the supplier, the supplier shall be entitled to reimbursementfrom the buyer for the fuel costs actually incurred by the supplier'sengineer in getting to and from the contract plant.

7.5 the buyer shall provide for the supplier's engineer and hisfamily, free of charge, medical care and hospital treatment in the buyer'scountry.

7.6 the buyer shall provide for each of the supplier's engineer, freeof charge, western standard accommodation with air conditioning, heating,shower with hot water, temporary cooking facilities, necessary furnitureand toilet, as acceptable to the supplier, and where the supplier'sengineer bring his family, such accommodation shall be adequatelyincreased in size.

7.7 the buyer shall arrange for chinese and western style meals forthe supplier's engineer and his family. but the costs shall be borne bythe supplier's engineer himself, provided that the price of such mealsshall be equivalent to the standard price in the buyer's country.

7.8 the buyer shall arrange laundry and taxi services for thesupplier's engineer and his family. such costs shall be borne by thesupplier's engineer except where provided for in paragraph 7. 4 hereof.

7.9 the buyer shall assist the supplier's engineer in arranging forthe import and export of a specified amount of personal goods as well astechnical documentation, tools and instruments in accordance with thecustoms regulations in the buyer's country, but all costs incurred in sodoing shall be borne by the supplier. the supplier shall inform the buyer,in advance, of the denomination, specification, quantity, weight, airwaybill number, value and date of import and export of the goods mentionedabove.

notwithstanding the above, if at the request of the buyer, suchtechnical documentation, tools and instruments are made available by thesupplier's engineer for the work, the buyer shall pay the supplier for therespective charges and freight charges and any other administrativeexpenditure incurred by the supplier's engineer in this matter.

8. safety of life

in the case of grave danger to the life of any of the supplier'sengineer and his family in the buyer's country as a consequence of theactual or imminent occurrence of hostilities or acts of a war-like nature,the supplier shall have the right to evacuate any of its personnel asrequired to ensure the safety of their lives.

notwithstanding any other provisions to the contrary in the contract,the cessation of all or any part of the technical services and theevacuation of the supplier's engineer under this paragraph shall betreated in all respects as a suspension as set out in article 38(suspension)of the agreement and the supplier shall be entitled torecover from the buyer all direct costs resulting from such an occurrence.the cost incurred by the supplier for the subsequent resumption of thetechnical services, including costs for remobilization, shall beconsidered a part of such costs.

9. miscellaneous

9.1 the supplier can call back or replace the supplier's engineer atits own cost provided that the work at the contract plant is not affectedand provided that the supplier has the consent of the generalrepresentative of the buyer. during any overlap of the supplier's engineerat the contract plant, the buyer shall pay technical service fee for oneengineer only during such overlap.

9.2 if any of the supplier's engineer falls ill for a continuousperiod of more than 15 days, the supplier shall replace such engineer atthe supplier's cost with another engineer with the same technical skill.

9.3 in the case when the general representative of the buyer requeststhe general representative of the supplier to remove any of the supplier'sengineer from the contract plant in accordance with article 18. 2. 4 ofthe agreement, all the costs for such replacement shall be borne by thesupplier.

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