鑒於：
一方為中國_________公司，主要辦公地址在中國_________（以下簡稱被轉讓方），另一方為_________公司，主要辦公地址在_________（以下簡稱轉讓方）。
轉讓方擁有製造_________設備的專有技術，並有資格轉讓上述技術；
轉讓方有權並同意向被轉讓方許可上述專有技術，只在_________廠使用；_________公司購買許可活動所必需的契約材料和契約設備，由_________廠進行許可的製造活動；_________公司和_________廠共同而又分別承擔本契約中的義務；
被轉讓方希望使用轉讓方的專有技術，只在中華人民共和國_________廠製造_________設備；
被轉讓方希望向轉讓方購買契約材料和模組，該模組由要製造的元部件組成，併購買契約設備，使被轉讓方只在_________廠能製造_________設備；
被轉讓方應不斷履行以購買訂單為形式的不同協定，以向轉讓方購買契約材料；
該購買訂單應服從於本契約有關契約材料的條件和條款；
因此，雙方授權的代表通過友好協商達成如下協定，特此為證。
第一章 定義
1．1 輔配件指大量商用可購買到的材料，包括易耗品和其它與_________系統安裝和系統配套有關的元部件，可由_________廠或轉讓方提供。
1．2 契約設備指附屬檔案十二中規定的由轉讓方售給被轉讓方的測試生產設備。
1．3 契約工廠指被轉讓方用轉讓方提供的技術檔案和專有技術製造契約產品的唯一地點，即中國_________廠。
1．4 契約材料指固定網路設備、轉讓方軟體和輔配件。
1．5 契約產品指契約材料製成整機，經測試可銷售給最終用戶。契約產品的進一步定義見附屬檔案一a。
1．6 最終用戶指契約產品的購買者。
1．7 固定網路設備指附屬檔案一b中規定的材料，為_________系統的一部分。
1．8 模組指本契約附屬檔案一b中規定的_________設備子機及由轉讓方售給被轉讓方用於製成契約產品的元部件。
1．9 專有模組指用於製造契約產品的元部件和組件。
1．10 專有資料指本契約條款規定的資料，包括軟體、目標代碼、源碼、測試設備的電腦程式、技術支持、轉讓方_________專有技術和其它與之相關的檔案、數據、材料、及指可向被轉讓方公開的業務、商業、金融、計畫資料。任何專有資料均由轉讓方標明_________註冊秘密專有，證明其屬最高級機密類或標明_________保密專有證明其屬初級機密類。
1．11 專有權利指專利、著作權、專有技術、商業秘密、商標和其它智慧財產權或指本契約終止或期滿前產生的專有權利、軟體或其它著作，不論轉讓方是否獲得專利、享有著作權或已註冊。
1．12 軟體指與契約產品配用的目標碼電腦程式，以及與契約設備配套使用的測試源碼電腦程式，以人們認可的形式提供，需經中間處理過後，由處理機編制。所有軟體均按附屬檔案十一a與十一b中規定的軟體許可證，由轉讓方許可給_________廠。
1．13 技術支持服務指本契約附屬檔案三和四中規定的在契約設備和契約材料和契約產品的製造、檢驗、調試、操作和其它有關職能方面由轉讓方向契約工廠人員提供的技術諮詢和技術指導。
1．14 技術檔案指本契約附屬檔案二中規定的與契約設備的操作、維護、調試和檢驗有關，以及與契約產品的製造有關的所有技術指標、圖紙、說明、數據和其它檔案。
1．15 技術培訓指轉讓方在轉讓方工廠和契約工廠為契約產品的製造、檢驗、調試和操作以及為契約設備的安裝、調試、操作和維護，對契約工廠人員所進行的培訓。具體的培訓內容和要求詳見本契約附屬檔案四。
1．16 專有技術或技術訣竅指與契約材料和契約設備有關的相應的知識和經驗，該知識和經驗是轉讓當時生產中所使用的。專有技術由轉讓方以技術檔案、技術支持和技術培訓的形式向契約工廠提供。
1．17 驗收標準指技術檔案中規定的用以限定契約設備性能的標準。
1．18 契約指本許可證契約及其所有附屬檔案。
第二章 契約範圍
2．1 轉讓方同意向被轉讓方轉讓製造契約產品的專有技術和技術檔案。契約產品的製造按本契約附屬檔案十一中的說明，分一、二、三、四、五階段實施。轉讓方同意為契約工廠確認並向其銷售按當時的技術合作階段在技術合作等級下製造契約產品所需的契約設備。契約工廠所需的契約設備目錄見本契約附屬檔案一c。
2．2 轉讓方給予被轉讓方許可證和權利，使用轉讓方的技術檔案和專有技術，製造契約產品，使用和／或銷售形成的契約產品。契約產品的銷售限於中華人民共和國和其它_________制式國家，下列國家和地區除外：_________。
本契約所有許可證均是含提成的（除了附屬檔案九中規定的軟體許可證是免提成的以外）、非獨占的、不可轉讓的、不可轉售的。
2．3 轉讓方負責按本契約規定向被轉讓方提供與契約材料和契約設備有關的技術檔案和專有技術。
2．4 轉讓方負責派遣其技術人員來華提供技術支持服務，並對契約設備進行驗收。
2．5 轉讓方應盡最大努力滿足契約工廠技術人員的要求，使上述技術人員能掌握1．15條中確定的技術培訓。
2．6 除非經轉讓方書面同意另增場所，否則被轉讓方只能在契約工廠進行許可的契約產品製造工作。
2．7 轉讓方同意向被轉讓方出售其專有模組，被轉讓方按轉讓方授權，僅旨於製造完整的契約產品。被轉讓方同意使用上述專有模組進行上述製造工作。除了被轉讓方經本契約特許生產的模組外，被轉讓方應向轉讓方購買所有被轉讓方要求的專有模組。
2．8 只有事先得到轉讓方的書面同意，才能修改或改變轉讓方許可的用於契約材料或契約產品的專用資料。這有利於專有資料的質量保證、控制和標準化。被轉讓方同意向轉讓方支付工程費用，用以審批此改變或改進的內容。被轉讓方同意給予轉讓方許可證，用以製造、委託他人製造、使用和銷售套用被轉讓方改變或改進契約材料後生產的產品。被轉讓方同意向轉讓方提供關於改變或改進的足夠檔案，以使轉讓方能將此改變或改進同樣包括在轉讓方產品中，費用由轉讓方支付。
2．9 事先未經另一方書面同意，任何一方均不應讓渡本契約或本契約中給予的任何權利。然而，為履行轉讓方在本契約中的義務，轉讓方可使用其任何分公司、聯營公司和／或附屬公司的服務。
第三章 本契約的價格
3．1 被轉讓方根據本契約第二章規定的內容和範圍，向轉讓方支付契約總價和提成費，以美元計價。第3．2條款中所列的價格為第一、二、三、四、五階段的費用。契約設備價格詳見附屬檔案十二。輔配件的預算性報價見附屬檔案一b，僅供參考。實際價格調整應在每次訂貨前由雙方討論。
3．2 費用如下：
契約總價_________
技術轉讓費_________
契約設備價格：測試設備_________；加工設備和工具_________；培訓設備_________；契約設備軟體許可證費_________。
技術檔案費：
設備手冊_________；加工資料_________。
技術培訓費：
設備操作_________；加工_________；系統_________。
技術支持服務費：設備操作_________；加工_________。
契約設備和契約材料價格為c．f．r．（按1990年《國際商會貿易術語解釋通則》定義）_________機場。
技術檔案費為c．i．f（按1990年《國際商會貿易術語解釋通則》定義）_________機場。
契約材料價格不包括在契約總價中。
3．3 提成費
在本契約各階段的所有契約材料（輔配件除外）價格上提取提成費。五個階段的提成費分別為：階段一_________；階段二_________；階段三_________；階段四_________；階段五_________。
3．4 模組價格
轉讓方同意銷售模組，使契約工廠能製造固定網路設備。模組價格可修改。新的模組價格應由本契約雙方共同商定。
第四章 付款條件
4．1 本契約中規定的一切費用均以美元計價。本契約中每個階段均在該階段開始日付款。各階段開始日定義見本契約第17．2條。
4．2 本契約第三章中規定的契約總價按下列條款由被轉讓方付給轉讓方：
4．2．1 契約設備：被轉讓方收到轉讓方的契約設備的貨物發運通知後，應在預計發運日期前30天內，以全電開的形式通過中國_________銀行及_________開具不可撤銷的、不可轉讓的信用證。該信用證格式由雙方商定，見附屬檔案十三，金額以美元計，為該貨運總價的百分之一百（100％），該信用證使中國_________銀行負有義務向受益人轉讓方支付所有款項，有效期截止至雙方按本契約第9．1條的規定簽署驗收合格證後30天。被轉讓方收到貨運單據後用信用證付款：
a、轉讓方發運貨物後，被轉讓方銀行收到轉讓方的下列單據，經審核無誤後，不遲於30天，支付金額的90％。
1）全套清潔空運提單正本一份，副本四份，標明c．f．r．_________機場，並根據本契約第6．3款標明運費預付，契約號和運輸嘜頭，並註明通知目的港所在地的中國外貿運輸總公司；
2）金額為契約設備價格總價的形式發票六份；
3）金額為契約設備價格90％的商業發票正本六份；
4）即期匯票一式兩份；
5）詳細包裝清單一式六份；
6）原產地證明一式兩份。
b、被轉讓方銀行收到轉讓方下列單據，經審核無誤後，不遲於三十天，支付金額的10％。
1）商業發票正本一式六份。
2）雙方代表按本契約第9．1條規定簽署的驗收證明正本一份。
3）即期匯票一式兩份。
4．2．2 一至五階段的技術轉讓費、技術檔案費、技術培訓費和技術支持服務費。所有的技術轉讓費、技術檔案費、技術培訓費和技術支持服務費均以美元電匯，通過中國_________銀行和_________銀行分行支付。根據本契約第13．2條，一切應由轉讓方在中華人民共和國繳納的所得稅應由被轉讓方預扣並代表轉讓方向有關稅務機構繳納，付款收據應立即傳真和郵寄給轉讓方，本章所列費用按下列比例支付：
a、契約生效後30天內，被轉讓方收到下列單據後，被轉讓方以全電開的方式向轉讓方支付15％的技術轉讓費、技術檔案費、技術培訓費和技術支持服務費。另外，轉讓方應提供以被轉讓方為受益人的保函正、副本各一份，格式見附屬檔案十四，金額為上述費用的15％。階段一預定的技術培訓課程結束後，本保函即失效。
1）轉讓方國家有關當局出具的有效出口許可證影印本一份，或轉讓方有關當局出具的信函一份，聲明不需要出口許可證；
2）金額為上述費用15％的商業發票六份。
b、階段2開始後30天內，收到金額為上述費用25％的商業發票六份及全套標有運費預付和契約號、運輸嘜頭，僅用於支付技術檔案費的空運提單後，被轉讓方以全電開的方式向轉讓方支付25％的技術轉讓費、技術檔案費、技術培訓費和技術支持服務費。
c、階段3開始後30天內，收到金額為上述費用25％的商業發票六份，及全套標有運費預付和契約號、運輸嘜頭，僅用於支付技術檔案費的空運提單後，被轉讓方以全電開的方式向轉讓方支付25％的技術檔案費、技術培訓費和技術支持費。
d、階段4開始後30天內，收到金額為上述費用25％的商業發票六份，以及全套標有運費預付和契約號、運輸嘜頭，僅用於支付技術檔案費的空運提單後，被轉讓方以全電開方式向轉讓方支付25％的技術轉讓費、技術檔案費、技術培訓費和技術支持服務費。
e、階段5開始後30天內，收到金額為上述費用10％的商業發票六份，以及全套標有運費預付和契約號、運輸嘜頭，僅用於支付技術檔案費的空運提單後，被轉讓方以全電開方式向轉讓方支付20％的技術轉讓費、技術檔案費、技術培訓費和技術支持服務費。另外，轉讓方應提供以被轉讓方為受益人，金額為上述費用的10％的不可撤銷的保函正副本各一份，格式見附屬檔案十四。階段五契約產品的最終驗收合格後，本保函即失效。
4．2．3 契約設備軟體許可證費：契約設備軟體許可證費用總額應不遲於契約設備第一次預計裝運前30天，電匯支付。
4．3 提成費由被轉讓方在一至五階段簽訂契約材料購買訂單後，不遲於30天向轉讓方電匯支付。但是，提成費和契約材料費發票單獨開具。
4．4 對轉讓方以c．i．f條件發運的任何貨物，被轉讓方同意，由外國保險公司出具的金額為貨運值110％，投保了一切險的自行保險證明應為足夠的保險憑證。保險期截止至貨物運抵中華人民共和國_________機場。
4．5 被轉讓方應不斷履行購買訂單，向轉讓方購買契約材料。被轉讓方向轉讓方購買契約材料，其付款條件同本契約第4．2．1規定。但有關契約材料的驗收合格證規定見本契約第9．2條。而按第4．2．1．b．2所述，驗收合格證參見第9．1條，在此則應參見第9．2條。
第五章 交付方式
5．1 技術檔案
5．1．1 轉讓方以cif中國_________機場向被轉讓方交付本契約附屬檔案二規定的所有技術檔案。
5．1．2 當技術檔案到達中國_________機場後，該技術檔案的所有權和損失風險即由轉讓方轉移至被轉讓方。
5．1．3 _________機場在技術檔案空運提單上所蓋的日期戳為技術資料實際交付的日期。
5．1．4 每批技術檔案發運前一星期，轉讓方應將本契約號、預計啟運日期、大概包數、大概重量用電傳或傳真通知被轉讓方。每批技術檔案發運後48小時內，轉讓方應將本契約號、發運日期、空運提單號、包（件）數量和重量用電傳或傳真通知被轉讓方及被轉讓方指定的中國境內內陸貨運公司，並在每批技術檔案發運後兩個工作日內將下列單據用dhｌ或快件寄給被轉讓方及契約工廠：兩份技術檔案空運提單；兩份技術檔案裝箱單。
5．1．5 轉讓方提供給被轉讓方的技術檔案用英文寫就。
5．1．6 轉讓方提供給被轉讓方的技術檔案按照本契約附屬檔案二檢驗。
5．1．7 如轉讓方提供給被轉讓方的檔案有丟失、損壞和／或不完整，轉讓方在收到被轉讓方書面通知後30天內，免費將技術檔案重寄或補發給被轉讓方。
5．1．8 轉讓方提供給被轉讓方的技術檔案應裝在適於長途運輸、多次轉運，具防潮、防雨保護措施的包裝箱內。
5．1．9 每包技術檔案的包裝封面上，應以醒目的英文印刷體標明以下內容：
a、目的地
b、契約號
c、收貨人代號
d、嘜頭
e、重量（公斤）
f、箱號／件號
5．1．10 每包技術檔案中，應有兩份裝箱單。
5．1．11 附屬檔案二中規定的契約材料的技術檔案和契約設備的技術檔案由轉讓方分別交付給被轉讓方。
5．1．12 每階段預定培訓日期前30天，轉讓方向被轉讓方發運該階段的技術檔案，一式兩份。
5．2 契約設備和契約材料
5．2．1 本契約附屬檔案十二中規定的所有契約設備和附屬檔案一b中規定的所有契約材料由轉讓方交付。交付條件為c．f．r機場目的地為中國_________機場。
5．2．2 本契約生效日起兩個月內，轉讓方應將初步的裝運計畫，包括契約號、項號、貨物名稱、種類、規格、數量、單價、總價、大概總體積，裝運日期、批次和裝運港（機場）等以及尺寸（長、寬、高、體積）一式六份寄給被轉讓方。如果有超寬或超重的契約設備或易燃、危險的契約設備，那么還應將超重契約設備的大概重量，易燃、危險契約設備在運輸和存放中的特殊要求和應採取的預防措施也一式六份寄給被轉讓方。
不可分割的成套契約設備每套最大重量為_________公噸，最大尺寸為_________立方米。不遲於首批設備裝運前3個月，轉讓方應將更改後契約設備的裝運計畫一式七份提交給被轉讓方，包括契約號、發運號、項號、貨物名稱、規格、數量、單價、總價、每件大概毛重、淨重、每件的大概尺寸（長×寬×高）、體積、每批貨物的裝運港（或機場）、裝運預計日期以及重量超過_________公噸和尺寸超過_________立方米的超大超重契約設備的包裝草圖和裝運危險契約設備時應採取的預防措施，各一式七份。
5．2．3 海運（空運）提單上的日期為契約設備和契約材料的實際交付日期。
5．2．4 根據契約第5．2．1款，轉讓方在被轉讓方指定的港口（或機場）將契約設備和契約材料裝上被轉讓方指定的運輸工具。轉讓方將契約設備和契約材料轉交給被轉讓方指定的承運人後，契約設備和契約材料的損失風險、所有權立即由轉讓方轉移至被轉讓方。
5．2．5 每次裝運前，轉讓方套用電傳或傳真或電報儘快將下列內容通知被轉讓方：
a、契約號
b、目的地
c、貨物準備就緒日期
d、總體積
e、總毛重
f、總件數
g、裝運港（或機場）
h、每件重量超過_________公噸或尺寸超過_________立方米的契約設備和契約材料的總的毛重、體積、名稱。
同時，轉讓方用航空信、傳真、快件、電傳將下列票據交給被轉讓方，各一式六份。
a、每大件重量超過_________公噸或尺寸超_________立方米後的裝運草圖。
b、危險契約設備和契約材料的說明，包括名稱、特性、特別保護措施和處置辦法。
c、在運輸過程中，對溫度、濕度、震動等有特殊要求的契約設備和契約材料，採取特殊預防措施的說明。
轉讓方還應將以上所列單據副本提交目的港所在地的中國對外貿易運輸總公司。
5．2．6 轉讓方應在每批契約設備和契約材料完全裝上承運工具前四十八小時內，將契約號、商品名、數量、尺寸、毛重、發票以及預計到達日期，以電傳或電報通知被轉讓方。發運前，被轉讓方負責辦理貨物保險。如因轉讓方未及時通知，致使貨物未及時投保，由此產生的任何及所有損失均由轉讓方承擔。如系危險品（例如易爆材料），轉讓方應將其性質及搬運方法電告被轉讓方和目的港所在地的中國外貿運輸總公司。
第六章 包裝和嘜頭
6．1 所有待運契約設備和契約材料都必須包裝堅固，適合所選的長途運輸方式及多次搬運裝卸。為了確保契約設備和契約材料在運輸過程中安全無損，需根據契約設備和契約材料中不同貨物的性能和要求，採取合理保護措施，防潮、防鏽、防震、防腐蝕。被轉讓方與轉讓方承認契約設備和契約材料由精密電子組成，因此，將盡力保證這些貨物有防雨、防熱、防濕、防震保護。
如被轉讓方要求提供長途海運用包裝及無防護內陸運輸和存放用包裝，轉讓方應提供包裝，費用另加。轉讓方對包裝不當負有責任，並對因包裝不慎或不當導致的銹損負有責任。
6．2 轉讓方應在每包散裝附屬檔案上標上契約號、契約設備和契約材料主機名、附屬檔案名、安裝圖上附屬檔案的位置號及附屬檔案號。備件、工具和易損件部件在上述標識基礎上，應再標上備用件、工具和易損件字樣。
6．3 在契約設備和契約材料的包裝箱相鄰的四個面上，轉讓方套用印刷標籤，以醒目的印刷體英文字標出下列內容：
a、契約號
b、嘜頭：如目的地為中華人民共和國_________，則嘜頭為：_________
c、目的地
d、收貨人代號
e、裝箱單號
f、毛重／淨重（公斤）
g、箱號／件號
h、尺寸（長×寬×高；英寸／厘米）
i、契約設備名稱和項號
如果契約設備和契約材料重量大於等於2公噸，其重心位置和起重位置應以英文標出，並採用國際貿易中通用的適當運輸標誌和圖案標在包裝箱兩側，以便於裝卸和搬運。
根據契約設備和契約材料的特點及在裝卸、運輸過程中的不同要求，應在其包裝上醒目地用英文及國際貿易慣例中規定的適當符號和示意圖，標上小心輕放、箭頭朝上、保持乾燥等字樣。
6．4 無包裝契約設備和契約材料套用金屬標牌標出上述內容。對裝在甲板上運輸的大件貨物，應提供充分的支撐和防震緩衝措施。
6．5 契約設備的每件包裝箱內，應裝有以下單據：
a、質量合格證書一式兩份
b、詳細裝箱單一式兩份
c、對必須進行組裝的契約設備和部件，應有兩份詳細的組裝圖。
6．6 每件契約材料的包裝箱上應附詳細裝箱單兩份，質量證明兩份。
第七章 技術服務和技術培訓
7．1 轉讓方應派遣熟練、健康和有能力的人員去契約工廠根據本契約規定提供現場技術支持服務。在中國提供技術支持服務的人數、專業、任務、內容和期限詳見本契約附屬檔案三。轉讓方聲明，技術支持服務和技術培訓足夠用來培訓被轉讓技術人員製造契約產品。
7．2 轉讓方技術支持服務人員提供出入境簽證的方便及在華的工作方便。轉讓方技術支持服務人員在華待遇見本契約附屬檔案三。
7．3 轉讓方技術支持服務人員在華支持服務期間應遵守中華人民共和國法律，遵守契約工廠的規章制度。
7．4 被轉讓方有權派遣其技術人員或操作工人去轉讓方相關工廠培訓。培訓的人數、專業、內容、時間和要求詳見本契約附屬檔案四。
7．5 轉讓方應為被轉讓方培訓人員提供出入境簽證方便和培訓條件。培訓人員在轉讓方國家待遇詳見契約附屬檔案四。
第八章 初步檢驗和初步驗收
8．1 轉讓方將盡其最大努力，保證本契約中由轉讓方提供的契約設備和契約產品的製造和檢驗按以下規定實施。
8．2 對所有由轉讓方提供的契約設備，轉讓方應向被轉讓方提供保證聲明書。契約材料的保證見本契約第十章。
8．3 契約生效日起三個月內或相關階段開始後三個月內，轉讓方應通知被轉讓方相關階段檢驗和測試設備的初步計畫，並提前一個月通知被轉讓方檢驗和測試的確切日期。被轉讓方有權自費派遣_________人，為期_________天，去轉讓方工廠觀看對主要契約材料的檢驗和測試，了解設備的包裝情況。但上述檢驗不應嚴重影響正常生產。
如發現契約設備和契約材料的質量不符合本契約規定的標準，或發現包裝不當，被轉讓方人員有權表明意見。轉讓方應予以充分考慮並採取必要措施保證設備質量。
被轉讓方人員不應會簽任何質量證書。被轉讓方人員參與質量檢驗，這既不免除本契約規定的轉讓方的擔保責任，也不能代替契約設備運抵中華人民共和國後，被轉讓方對其的檢驗工作。
8．4 契約設備和契約材料抵達目的港或契約工廠後，被轉讓方應委託中國進出口商品檢驗局對包裝、外觀、質量進行檢驗，並儘可能地對技術規格目測初檢。
檢驗後，由中國進出口商品檢驗局出具檢驗證明，該證明應作為檢驗證據。
轉讓方有權自費派遣其檢驗人員參加開箱檢驗。
被轉讓方應提前4周以電報或電傳或傳真通知轉讓方檢驗的預定日期和地點。轉讓方檢驗人員應在預定檢驗日期前到達上述地點。
如果因轉讓方自身原因，未能在上述規定時間內派遣其技術人員去上述地點，則由被轉讓方在轉讓方人員缺席情況下進行檢驗。在這種情況下，由中國進出口商品檢驗局出具的檢驗證書應作為檢驗證據。
8．5 在對契約設備或契約材料的初步檢驗中，若發現有任何損壞、數量短缺、規格錯誤，證實皆系轉讓方疏忽所致，則被轉讓方有權在檢驗後憑中國進出口商品檢驗局出具的檢驗證書向轉讓方提出索賠。轉讓方收到附證明的索賠書後，應立即免費維修或替換損壞或短缺的契約設備和契約材料。
第九章 最終驗收檢驗測試
9．1 技術檔案和契約設備的最終驗收
9．1．1 為證明根據本契約附屬檔案二提供的專有技術和技術檔案是完整的、正確的，證明轉讓方許可的契約材料是能組裝、測試的，轉讓方應自費派遣其技術人員去契約工廠參加相應階段契約設備的驗收測試。被轉讓方的技術人員也應參加這些驗收測試。
9．1．2 雙方應盡其最大努力完成驗收測試。
9．1．3 驗收測試時，若契約設備達到了驗收標準，則雙方應簽署四份契約設備驗收合格證書，每方各執兩份。
9．1．4 若契約設備未達到驗收標準，雙方應共同分析驗收測試失敗的原因，澄清驗收測試失敗的責任。
a、若驗收測試失敗的責任在於轉讓方負責，則轉讓方應在第一次驗收測試後4周內，再派其技術人員進行第二次驗收測試，並承擔其在第二次驗收測試期間所發生的一切費用。
b、若驗收測試失敗的責任在於被轉讓方負責，則被轉讓方應為轉讓方技術人員提供往返機票並承擔第二次驗收測試期間其在華的食宿費用和當地交通費。
第二次驗收測試時，若契約設備達到了驗收標準，則雙方應簽署四份契約設備驗收合格證書，每方各執兩份。
a、若因轉讓方的責任，第二次驗收測試時，契約設備未達到驗收標準，轉讓方應採取各種措施，並在第二次驗收測試後六周內，再派其技術人員進行第三次驗收測試，並承擔其在第三次驗收測試期間所發生的一切費用。
b、若第二次驗收測試失敗的責任在被轉讓方，則被轉讓方應為轉讓方技術人員提供往返機票，並承擔第三次驗收測試期間他們在華的食宿費和當地交通費。
第三次驗收測試時，若契約設備達到了驗收標準，則雙方應簽署四份契約設備的驗收合格證，每方各執兩份。
9．1．5 第三次驗收測試時，若契約設備未達到驗收標準，雙方應共同分析原因並繼續驗收測試。若二個月後，還達不到驗收標準，轉讓方將對有缺陷的契約設備進行修理，或更換以符合本契約規定的技術指標、質量和性能標準的新設備。轉讓方與被轉讓方應在契約工廠座談討論解決此類問題的方法。
9．2 契約材料的最終驗收
9．2．1 契約材料每次運抵契約工廠後，被轉讓方人員應立即對其進行檢驗。
9．2．2 轉讓方有權自費派其檢驗人員參加開箱檢驗。
9．2．3 被轉讓方應提前兩周用電報、電傳或傳真通知轉讓方檢驗的預定日期和現場。如到了檢驗日期轉讓方未能派其人員去現場，由被轉讓方在轉讓方人員缺席情況下進行檢驗。
9．2．4 檢驗後，如確定契約材料的數量或質量與訂單不符，轉讓方應在檢驗後20個工作日內接到數量短缺或不符貨運要求的書面通知。轉讓方在收到通知後的30天內或合理時間內儘快根據情況，發運短少部分的契約材料或符合要求的契約材料。
9．2．5 檢驗順利完成後或缺陷部分改正後，雙方應簽署驗收合格證。
9．2．6 本第九章不包括運輸時及運輸後出現的損壞，其補救責任在被轉讓方。如被轉讓方要求，轉讓方應提供合理的幫助。
9．3 契約產品的最終驗收
將每階段首批發運的契約材料組裝成首批契約產品，按照技術檔案中提供的技術指標，用契約設備對該首批契約產品進行測試。如該首批契約產品測試工作圓滿完成，即意味著契約產品最終驗收合格。整機經測試符合全部技術指標，測試工作勝利完成，即可認為完成了契約產品的驗收測試義務。
第十章 擔保和保證
10．1 轉讓方保證按本契約向被轉讓方提供的契約設備、契約設備用品測試軟體和技術檔案為當時的技術，適於製造契約產品；保證在本契約期間將免費向被轉讓方提供與此相關的更新後的測試軟體和技術檔案。
10．2 若被轉讓方發現轉讓方提供的本契約設備、測試軟體和技術檔案驗收不合格，轉讓方應在收到被轉讓方的書面通知後30天內，向被轉讓方免費傳送所要求的合格的契約設備、測試軟體和技術檔案，轉讓方向被轉讓方提供改正了的契約設備、測試軟體和技術檔案，這應為被轉讓方唯一的補救措施。
10．3 各階段契約設備驗收測試勝利完成後，今後成功製造契約產品責任即成為被轉讓方的責任。但是如雙方認為完全因為轉讓方提供的模組有缺陷，或檔案有缺陷致使契約設備不符質量標準，轉讓方應糾正完全由轉讓方導致的任何缺陷。轉讓方承認轉讓方向被轉讓方提供的所有專有模組中，證實完全因轉讓方原因致使模組有缺陷的故障率不超過5％。
10．4 如完全因轉讓方能控制的因素致使轉讓方未能按本契約附屬檔案二中規定的日期交付契約設備、軟體或技術檔案，則轉讓方應為延期交付契約設備、軟體和技術檔案，向被轉讓方繳付罰金，費率如下：
第一至第四周，每遲交付一周，付相應階段延期交付貨物價格的0.5％。
自第五周起，每遲交付一周，付相應階段延期交付貨物價格的1％。
上述總罰金不應超過相應階段延期交付貨物價格的5％。遲交天數不足一周，以一周計算。
10．5 轉讓方按本契約第10．4款的規定向被轉讓方繳付罰金，並不因此即免除轉讓方繼續交付契約設備、軟體和技術檔案的義務。根據此條款繳付罰金是轉讓方遲交貨物，被轉讓方因而獲得的唯一補救措施。
10．6 如果一定階段用的轉讓方的契約設備、軟體或技術檔案延期交付六個月以上，完全是因轉讓方所能控制的原因所致，則被轉讓方有權終止本契約。在該情況下，轉讓方應向被轉讓方退回被轉讓方為該階段所付的全部費用，並加付5％的年息。在這種情況下，按本條款選擇賠償即為被轉讓方的唯一補救措施。
10．7 契約設備保證
契約設備保證見本契約附屬檔案八。
10．8 軟體保證
軟體保證和軟體維護向契約產品的最終用戶提供，轉讓方軟體許可證也一併提供。
被轉讓方同意向最終用戶銷售契約產品應以最終用戶執行上述軟體許可證為前提。
轉讓方將向被轉讓方提供必要和適當的測試軟體，用以製造符合本契約提供的技術指標的契約產品。轉讓方對契約設備軟體更改或更新，如雙方認為此更改或更新為被轉讓方生產契約產品所需，轉讓方將向被轉讓方提供。
10．9 轉讓方將全部非_________生產的契約設備和輔助設備的原製造商保證書轉給被轉讓方。該契約設備和輔助設備的保證期應由該契約設備和輔助設備的製造商確定。被轉讓方應從製造商或其在當地的維修辦事處獲得該契約設備和輔助設備的保證和／或維修服務。保證期過後，被轉讓方應負責與製造商或其在當地的辦事處取得聯繫，獲得對該契約設備和輔助材料的服務和／或維護支持。
所有與契約設備和輔助設備一併提供的計算機軟體均以照原樣為基礎提供，無保證。
第十一章 專利、商標和保密
11．1 轉讓方保證他對根據本契約提供給被轉讓方的全部專有技術和技術檔案擁有合法的所有權，並有權許可被轉讓方。對向被轉讓方提出的任何索賠要求，聲稱：本契約中_________提供的設備侵犯了經中華人民共和國法律認可，具有法律約束力的專利，轉讓方應為被轉讓方辯護。如果（1）被轉讓方立即書面通知轉讓方索賠要求；（2）未經轉讓方同意，被轉讓方不派律師出庭；（3）由轉讓方完全控制辯護及與該索賠要求有關的全部談判；（4）被轉讓方為轉讓方辯護提供合理的資料和幫助，那么法庭最終裁決被轉讓方因此將償付的理賠費和／或損失清償費，由轉讓方付清。如果訴訟結果為禁止使用或銷售_________提供的設備，不向被轉讓方另行收費，則由_________選擇，或者為被轉讓方獲取使用_________提供的設備的權利或銷售契約產品的權利；或者以相同的未侵犯專利的材料替換；或者接受對_________提供的設備的退貨，並對退回的設備，向被轉讓方退還原購貨款價。在任何情況下，對由於侵犯專利或有侵犯專利嫌疑而引起的意外或間接損失，被轉讓方不負有責任。
11．2 被轉讓方同意對轉讓方提供的專有技術和技術資料自本契約生效日起保密10年。如果上述專有技術或技術檔案的部分或全部由轉讓方或任何第三方公布於眾，（前提為上述解密不違反任何保密義務），那么被轉讓方不再受保密義務中對已泄密事項的約束。經轉讓方事先同意被轉讓方可因部件國產化需要，只將轉讓方技術檔案的該部分內容泄密。但在轉讓方對此泄密授權前，為保證對其專有資料的保護，轉讓方可要求其採取某些保護措施。
11．3 對被轉讓方提供的與契約材料的專有技術、技術及生產有關的注有需保密的資料，轉讓方應予以保密，保密期限為本契約生效日起10年。
11．4 本契約終止或期滿後，被轉讓方無權使用附屬檔案七規定的轉讓方的商標或商品名稱（或任何易混淆的相似商標或商品名稱）。本契約終止或期滿後，雙方應真誠協談，從而決定轉讓方是否向被轉讓方銷售契約模組及其組件或部件。
11．5 被轉讓方承認_________及其相應的中文名稱是轉讓方及其使用_________或相應中文名稱的子公司和分公司的商品名稱的主要特徵；承認_________標誌，_________和相應中文名或任何英語或漢語的派生詞都是轉讓方與被轉讓方製造的產品的重要商標，是與該產品配套服務的重要商標。轉讓方給予被轉讓方權利使用本契約附屬檔案七（轉讓方的商標）所列的轉讓方的商標。轉讓方的商標只許可用於被轉讓方在契約工廠製造並在中華人民共和國銷售的契約產品。被轉讓方同意使用轉讓方發明的標誌，這並不意味著將標誌的擁有權或正當利潤轉讓給了被轉讓方。除非由本契約授權或由轉讓方另行書面授權，否則被轉讓方無權在任何產品上、廣告上或在銷售或促銷中使用任何轉讓方發明的商標。
11．6 除非有關法律要求，否則在未徵得對方書面同意前，任何一方不得將本契約內容泄露給任何第三方。
11．7 轉讓方不將其專利或著作權的許可證或權利授於被轉讓方。但是轉讓方同意在本契約期內就其在中華人民共和國的任何專利或著作權，不向被轉讓方提出質疑，這只限於該質疑會妨礙被轉讓方使用本契約給予的權利。被轉讓方承認任何時候專有技術均系轉讓方財產。
11．8 如嚴重違反本契約保密條款，則非違約方有權終止本契約。
11．9 被轉讓方同意將許可的商標只在中華人民共和國製造和銷售的契約產品上使用。（任何在中華人民共和國以外國家銷售的契約產品不應含轉讓方的商標和／或商品名稱。）
第十二章 質量標準
12．1 被轉讓方根據轉讓方所定，提供充分的場地、設施、人員和工藝規程，用以製造契約材料、存放模組、備用件和其他元器件；用以測試契約材料成品、保證性能和提供其他服務。
12．2 被轉讓方同意由被轉讓方實施的任何所許可的活動和被轉讓方使用轉讓方商標銷售的契約產品，應與轉讓方實施的契約活動以及轉讓方製造的與契約產品相應的產品，質量相同、工藝相等。所有許可活動的實施應按附屬檔案二所列檔案中所述的標準及本契約中轉讓方提供的專有資料和技術支持。活動的質量、工藝和性能標準應與轉讓方所進行的類似活動至少一樣。為判斷被轉讓方是否遵照並堅持本文要求，轉讓方有權在一切合理時間檢查契約工廠、契約材料以及所許可的活動開展的方法。經轉讓方要求，被轉讓方應及時將其有關工作具代表性的樣本提供給轉讓方，費用由轉讓方支付。
12．3 被轉讓方應在轉讓方的監督下制定並保持一質量保證常規計畫。該質量保證計畫應經雙方同意，不遲於契約鑑定後120天實施。被轉讓方應作缺損記錄，將每季度缺損記錄報送轉讓方。
12．4 任何時候，如轉讓方確定在被轉讓方銷售的契約產品上被轉讓方的工作未能達到轉讓方要求的質量、工藝和性能標準（見技術檔案），轉讓方可將此認定書面通知被轉讓方，被轉讓方同意立即改正缺陷。如被轉讓方收到該書面通知後，30天內未能改正該缺陷，被轉讓方應暫停發運此有缺陷的契約產品，雙方共同真誠討論改正該缺陷的方法。如被轉讓方收到該書面通知後60天內未能改正缺陷，則轉讓方可暫停本契約給予的商標權，和／或可暫停所有許可的活動。
12．5 被轉讓方和轉讓方發現契約產品有缺陷，在該有缺陷的契約產品上，被轉讓方對轉讓方商標的使用權，應立即自動暫停。
12．6 被轉讓方對專用資料或契約材料作任何改變或改進，這只可在雙方同意下進行。
12．7 對被轉讓方提供的任何輔助設備，被轉讓方應提供轉讓方該設備手冊、技術檔案並提供識別用於契約材料的該元件、材料清單，以便轉讓方與被轉讓方共同確定該元部件是否符合轉讓方的質量、性能技術指標。被轉讓方將向轉讓方提供合格的測試結果，證明該元部件符合質量和性能指標。如果轉讓方有書面要求，被轉讓方應自費提供給轉讓方該元部件樣品，供審批。轉讓方將盡其最大努力，在轉讓方收到合格測試結果後30個工作日內答覆被轉讓方的報批報告；在逐項商討後決定的合理時間內，對被轉讓方報批的樣品給予答覆。如收到轉讓方的書面通知，表示該元部件不符合轉讓方的質量和性能指標，則被轉讓方不能使用該元部件。
12．8 為保證契約材料具有滿意的質量和技術性能，被轉讓方應向轉讓方購買所有被轉讓方要求的模組，本契約中被轉讓方特許生產的模組除外，且被轉讓方無權以其它材料代替任何模組。被轉讓方同意只將上述模組用於契約材料，以及用於推進許可的活動。
第十三章 稅收
13．1 凡與本契約有關或在執行本契約時，根據有效的稅法由中華人民共和國政府向被轉讓方徵收的一切稅應由被轉讓方支付。
13．2 凡與本契約有關或在執行本契約時由中國政府根據_________國政府與中華人民共和國政府間就所得稅避免雙重課稅和防止偷稅漏稅的協定，向轉讓方徵收的一切稅應由轉讓方支付。上述協定中包含的稅中，根據中華人民共和國有關外資企業所得稅法向轉讓方徵收的預扣稅款應從本契約第4．2條規定的每次付款中扣除，且應由被轉讓方代表轉讓方向中國有關稅務機構繳納。如果轉讓方向被轉讓方提交有關機構出具的減免全部或部分稅款的檔案證明，則被轉讓方應按有關稅務機構的要求，扣除調整後的金額。被轉讓方應在繳納上述稅後，向轉讓方提交由中華人民共和國有關稅務機構出具的稅收收據原件一份。
13．3 凡與本契約有關或在執行本契約時在中華人民共和國以外徵收的一切稅費應由轉讓方支付。
第十四章 不可抗力
14．1 簽約雙方中任何一方，由於但不只限於戰爭、嚴重水災、颱風和地震及其他簽約方無法控制的不可抗力事故而影響履行本契約的義務，本契約的執行期應相應延長，延長期限相當於事故所耽誤的時間。
14．2 責任方應儘快將發生不可抗力事故的情況以電傳或電報掛號通知對方，並於事故發生後14天內以航空掛號信將有關當局出具的證明（若有的話）遞交給另一方確認。不可抗力事故一旦排除或消失，責任方應儘快以電傳或電報掛號通知對方，並向對方發出航空掛號信，確認不可抗力事故的消除。如不可抗力事故延續120天以上，雙方應儘快通過友好協商解決繼續執行契約所面臨的問題。
第十五章 爭議的解決
15．1 凡由本契約引起的或與解釋或執行本契約有關的任何爭議，雙方應首先通過友好協商來解決。如果協商開始後90天內，雙方還不能解決此爭議，則任何一方均可將此爭議提交仲裁。
15．2 若通過上述友好協商雙方仍解決不了爭議，則應將該爭議提交_________商會仲裁院，由該仲裁院根據其仲裁程式，最終裁決。
15．3 仲裁裁決是終局的，對雙方都具有約束力。
15．4 除非由仲裁小組裁決，否則，仲裁費用由敗訴方負擔。
15．5 在仲裁過程中，除了提交仲裁的那部分契約外，雙方應繼續履行契約。
第十六章 契約生效及其他
16．1 本契約由雙方授權代表簽署，各方保證均有合法的權力產生並簽訂具有法律約束力的契約。如必要，雙方應向本國政府申請批准本契約，以中國和_________政府中最後一方必需的批准日期為本契約生效日期。雙方應盡最大努力爭取在本契約簽字後90天內獲得所必需的批准，並用電傳或電掛通知對方，用信件確認已經獲得所有必須的批准。
16．2 如本契約自簽字之日起6個月內仍不能生效，雙方有權取消本契約。
16．3 本契約自契約生效日起有效期10年，有效期滿後除非雙方同意續訂，否則本契約自動失效。
16．4 本契約期滿時，雙方發生的未了債權和債務，不受契約期滿的影響。債務人應對債權人繼續償付未了債務。
16．5 本契約為_________文本，一式四份，每方各執兩份。本契約的任何譯文無法律效力。
16．6 本契約由第一章至第十七章，附屬檔案一至附屬檔案十三組成，本契約附屬檔案內容為本契約不可分割的組成部分，具有同等法律效力。如果本契約條件和條款與附屬檔案的文字發生矛盾，應以本契約條款和條件的文字為準。本契約受中華人民共和國法律約束。被轉讓方保證本契約在中華人民共和國法律下有效。
16．7 對契約條款的任何變更、修改或增減，須經雙方授權代表簽署本契約書面修正案後生效，該修正案應作為本契約不可分割的組成部分，具有同等法律效力。
16．8 執行本契約期間，雙方所有通訊應以_________文進行，正式通知應以書面形式，用航空掛號信郵寄，一式兩份。
16．9 任何情況下，轉讓方或被轉讓方均不對意外、或間接損失負有責任。損失包括但不限於本契約中另一方喪失利潤或收益、資本費用、替代產品費用、設施或服務費用、停工費用。
16．10 本契約雙方同意真誠執行契約，遵從一切適用的法律。任何一方若偏離此良好行為，另一方有權終止本契約。如本契約在契約期末前終止，所有技術檔案應退還給轉讓方，且專有資料應自本契約生效日起保密10年。
第十七章 聯絡會議
17．1 為順利實施契約，轉讓方與被轉讓方應召開聯絡會議。
17．2 聯絡會議期間確定的每個新階段的起始日期一到，如雙方同意，即開始契約的下一階段。被轉讓方和轉讓方對契約產品驗收後，且被轉讓方又達到了附屬檔案三中規定的階段實際生產產量，並能同時保持附屬檔案二所列檔案中規定的質量標準，被轉讓方有資格進入下一階段。如到了聯絡會議期間確定的時間，被轉讓方沒有資格進入下一階段，應推遲該階段起始日期，並對照新的起始日期，重新安排付費時間。
17．3 聯絡會議的時間、地點、參加人員身份規定如下：
第一次聯絡會議：日期：契約生效日起_________天內；期限：_________個工作日；地點：_________；人數：轉讓方工程師_________名；目的：a．項目範圍檢查；b．考察場地。
第二次聯絡會議：日期：第二階段開始前30天；期限：_________個工作日；地點：_________；人數：被轉讓方人員_________名，契約工廠人員_________名；目的：a．考察工廠；b．深化項目；c．檢查項目實施情況。
第三次聯絡會議：日期：第三階段開始前30天；期限：_________個工作日；地點：_________；人數：轉讓方工程師_________名；目的：a．考察場地；b．深化項目；c．檢查項目實施情況。
第四次聯絡會議：日期：第四階段開始前30天；期限：_________個工作日；地點：_________；人數：被轉讓方人員_________名，契約工廠人員_________名；目的：a．技術討論；b．深化項目；c．檢查項目實施情況。
第五次聯絡會議：日期：第五階段開始前30天；期限：_________個工作日；地點：_________；人數：轉讓方工程師_________名；目的：a．考察場地；b．檢查項目實施情況。
第十八章 法定地址
18．1 轉讓方：
名稱：_________公司
地址：_________
傳真：_________
18．2 被轉讓方：
名稱：_________公司
地址：_________
電傳：_________
電話：_________
傳真：_________
18．3 契約工廠：
名稱：_________
地址：_________
電話：_________
傳真：_________
18．4 雙方授權代表簽字：
本協定和附屬檔案構成了雙方就此契約內容的全部理解，取代了先前所有的討論、協定和陳述，不論是口頭的還是書面的，不論轉讓方與被轉讓方執行與否。
轉讓方（蓋章）：_________ 被轉讓方（蓋章）：_________
授權代表（簽字）：_________授權代表（簽字）：_________
_________年____月____日_________年____月____日
簽約地點：_________簽約地點：_________
附屬檔案
附屬檔案一： 附屬檔案一a契約產品目錄（略）；附屬檔案一b契約材料目錄（略）；附屬檔案一c契約設備目錄（略）
附屬檔案二： 資料目錄（略）
附屬檔案三： 技術支持
轉讓方根據被轉讓方的要求可以派遣各類技術人員進行生產人員管理，促使整個工廠運轉正常，並在該組織內監察全部產品的質量。擔任該項工作的人員在該領域將完全勝利且富有經驗，他們會幫助並全力負責有關方面的工作。下列技術人員也將同樣提供服務：工程技術生產助理、製造工程師、質量工程師、管理人員（經理）、電子工程師和銷售人員，下面就上述人員的責任進行說明。
工程技術生產助理應完全掌握產品組裝和測試方法，他將全權負責有關從最初到最高級_________技術方面的事務，並在生產過程中對具體工序進行測試、校準。任何有關產品安裝和測試的問題應提交工程技術生產助理評議解決。
製造工程師應熟知組裝過程的各個方面，他將決定編碼顏色的可用性和使用，便於掌握的生產輔助工具及有助於提高組裝效率的標準化工序。任何有關組裝生產工序的問題應儘快提交製造工程師評議解決，不讓產生的任何問題導致停產。
質量工程師應精通與產品質量保證、質量控制及產品工藝檢查有關的所有領域，他將制定並實施具體的質量計畫，並對工藝方面的問題進行量化，與關鍵工藝和產品人員就這些問題商議解決辦法。銷售人員素質問題應提交質量工程師並採取措施保證他們的素質，總之，他將負責全部產品的質量和故障消除。
管理人員（經理）應負責全部的組裝操作及上述各人員的工作，協助他們盡力支持工廠生產出所能實現的最好產品。
如果純粹由於轉讓方錯誤的技術指導引起契約產品及契約設備損壞，轉讓方將負責維修，更換及發運損壞的契約設備或契約產品。
下列幾項內容將包括在轉讓方提供的技術支持中：
1．為實施契約，轉讓方將派遣熟練、健康及勝任的技術人員到契約工廠提供技術支持。他們到達及離開契約工廠的確切日期應由雙方根據契約材料組裝和測試的實際進度商議確定。
2．轉讓方的技術人員應向被轉讓方的技術人員就契約材料的組裝、測試、檢查及操作原理進行技術指導。
3．轉讓方的技術人員應幫助被轉讓方的技術人員在技術支持期間在契約工廠培訓被轉讓方的技術人員。
4．轉讓方技術人員的技術支持費用見契約第三章，轉讓方應對其技術人員展開第三章規定的技術支持活動提供交通，及食宿費。被轉讓方將支付轉讓方技術人員附加技術服務的來回交通費。
5．轉讓方技術人員前往中國的一個半月前，轉讓方套用電傳、傳真或電掛把轉讓方技術人員的資料包括姓名、性別、生日、國籍、專業及公司名通知被轉讓方，以使被轉讓方幫助辦理簽證。
6．轉讓方技術人員前往中國的7天以前，套用電傳、傳真或電掛把轉讓方技術人員的姓名，到達時間及飛機航班通知被轉讓方。
7．轉讓方的技術人員前往契約工廠以前，雙方應共同商討並確定一個技術服務的工作日程，而轉讓方的技術人員應該根據契約工廠的安排和雙方確定的工作日程展開技術支持。
8．在契約工廠期間，技術人員的工作期限應該從他們到達契約工廠的那天算起直到他們離開契約工廠那天為止。
9．被轉讓方應免費向轉讓方的技術人員提供技術支持所必需的工具及合適的辦公室。
10．被轉讓方應依據中華人民共和國的規章、條例和習俗幫助轉讓方的技術人員安排辦理技術支持所必須的工具及儀器的進出口手續。
11．被轉讓方應採取必要的措施保障轉讓方的技術人員在契約工廠逗留期間的人身安全。
12．被轉讓方應為轉讓方技術人員在契約工廠提供必要的通信設施，諸如電話、電傳及傳真，費用由轉讓方支付。
13．轉讓方應對管理和組織提出建議。雙方必要及重要的聯絡渠道將建立起來。
轉讓方應提供下列技術支持：
1．製造工程師各階段_________天
2．質量工程師各階段_________天
3．管理人員各階段至少每月_________天
4．電子工程師總共_________天
附屬檔案四： 契約技術培訓的內容和要求
1．轉讓方在培訓開始前3個月應向被轉讓方提交一份初步培訓計畫。雙方應在被轉讓方技術人員前往培訓地點之前商討並制定一個最終的培訓計畫。由轉讓方主持的技術培訓應根據雙方制定的培訓計畫展開。
2．轉讓方應免費向被轉讓方的技術人員提供所必需的工具，技術資料及合適的辦公室。住宿由轉讓方安排。
3．轉讓方應採取必要的措施在被轉讓方逗留期間保障他們的人身安全。
4．培訓費用見契約正文第三章。
5．培訓開始前一個半月，被轉讓方應以電傳、傳真或電報通知轉讓方關於被轉讓方技術人員的個人資料，包括姓名、性別、出生日期和專業，以使轉讓方協助辦理他們的簽證。
6．被轉讓方技術人員應遵守轉讓方國家的法律和法令，遵守培訓所在地工廠的規章制度。
7．培訓應根據契約的實施計畫分階段進行。具體的培訓時間由雙方協商確定。
8．培訓語言為英語，所有技術資料為英語。
9．各階段培訓中，被轉讓方人員不變（不能在培訓期間更換人員）。
10．培訓將按照預定時間表完成。
11．任何附加培訓將在第一輪培訓結束後決定，並應單獨談判。
12．所有培訓都將由轉讓方的_________人員在轉讓方生產工廠進行。
13．被轉讓方受訓人員應至少有兩年生產和測試產品的經驗，英語流利，技術熟練。
14．被轉讓方人員在轉讓方工廠受訓後，將負責培訓被轉讓方工廠的人員。
15．被轉讓方工廠的生產人員應至少有兩年生產和測試產品的經驗。
16．被轉讓方將支付其培訓人員的交通及食宿費，轉讓方將負責被轉讓方培訓人員在培訓地的交通。（人員要求、培訓項目及時間表略。）
附屬檔案五： 補充商務條款
1．檢查：轉讓方應有權派遣其有資格的人員或指定的代表訪問契約工廠或其他存有關於被轉讓方、契約工廠或其他相關公司、代理商或組織的書籍和記錄的場所，並有權審閱、查核這類記錄中關於契約工廠組裝的各種契約產品每台整機的質量、可靠性及符合驗收標準的程度的信息。
2．技術服務費率：如果被轉讓方要求進行額外的技術培訓，對技術檔案、契約設備、契約材料和軟體進行補充諮詢或在契約工廠為被轉讓方組裝工作提供其他支持等額外的技術服務，轉讓方應對所要求的專門的技術服務提供報價或提供一段合理期限的現場技術服務。從契約生效之日起_________年內，對此種支持的費率將是：轉讓方提供的技術服務人員每人每天_________美元，外加技術服務人員從其常規辦事地點到契約工廠的商務級來往旅行費用。對於來自中國境外的技術服務人員，被轉讓方將支付該技術服務人員到契約工廠的一天旅行費及回到其常規辦事地點的一天旅行費。_________年期限以後，契約合作方將根據類似產業的技術服務費協商出一個附加技術服務的費率。
附屬檔案六： 契約產品的轉讓方商標和被轉讓方商標（略）
附屬檔案七： 契約材料價格（略）
附屬檔案八： 契約設備的保證
1．_________保證其_________材料和工藝完好無損，保證期為從裝運日算起_________個月，或最終驗收通過後_________月。
2．_________生產的契約設備應有_________個月的保證期，從最終驗收完成那天算起。
3．被轉讓方負責指出初步的故障線索，負責硬體、固件及軟體的搬動、更換及把出現故障的機器用防損包裝運到轉讓方指定的維修地。
4．在轉讓方維修地維修或更換出故障的_________契約設備在整個保證期內是免費的。
5．把_________契約設備郵寄、空運或以其它運輸方式發運到指定的轉讓方維修地，所化費用由被轉讓方承擔；維修件或更換件運回被轉讓方的費用由轉讓方承擔。
6．在保證期內發生故障，轉讓方應免費在保證期內或維修或更換該_________契約設備。所維修或所更換的項目保證期順延相同一段時間，轉讓方通過更換所獲得的故障件將是轉讓方的財產。被轉讓方唯一的補償及義務是不再索回送去維修或更換的_________契約設備。
7．本保證不包括：
7．1 故障、損壞或失靈源自_________。
7．1．1 _________契約設備使用不當。
7．1．2 使用失誤、事故、疏忽，環境或現場條件不符_________契約設備指標。
7．1．3 不經認可任意維修、改造或在_________契約設備內換用未經認可的部件。
7．1．4 不可抗力事故。
7．1．5 不經轉讓方認可，擅自安裝、最佳化或把_________契約設備從原安裝位置移開。
7．1．6 天線、線路或互連設施任何部分的失靈。
7．1．7 被轉讓方不依據轉讓方的設備及軟體維修協定維護_________；或沒有按照一位或數位有關培訓完成人員的指導，及技術資料的要求進行其他維修。
7．1．8 把_________契約設備從被轉讓方運送給轉讓方途中所遭的損壞。
8．本書面保證由轉讓方提出，只限於最初購買方，並只在中華人民共和國生效。經轉讓方書面認可，本保證的有效條款可以提供給用戶。
9．本保證將取代所有其他具體排除的保證，無論是明確的還是暗示的，包括但不限於，為一個特殊目的所暗含的商用性和適用性保證。轉讓方不對間接的，事故性的，特殊的重大損壞負責；但是，如果任何適用於本協定的司法法律不允許這類損壞完全不受指控，那么本條款應如此理解，即有必要給予轉讓方任何指控的全部有利方面或者這類法律所允許的對上述損壞指控的限制。另外，轉讓方只對本契約規定的保證負責，並明確表示不對_________承擔責任。（契約產品保證由被轉讓方提供給用戶。）
附屬檔案九： 目標代碼電腦程式許可證
為保持契約簡潔與一致，關於契約與附屬檔案是指本許可證契約及其附屬檔案。本契約所有定義均適用於此。
1．範圍
根據上述確定的契約，除了交換測試軟體之外，用於其他轉讓方交付的設備中的目標代碼電腦程式，將在許可證基礎上由轉讓方向被轉讓方提供，用列印或其他可能的機器可讀的形式，包括但不限於磁帶、磁碟、紙帶或唯讀存儲器裝置。被轉讓方將因此成為關於這些電腦程式的被轉讓方。轉讓方提供這些程式及被轉讓方的接受都將在下面的條件下進行，否則應依據轉讓方書面同意的其它條件。
2．電腦程式為轉讓方所有
本許可證下交付的任何電腦程式原件及被轉讓方複製的部分或全部程式均為轉讓方所有。
3．軟體許可證
為與許可證契約執行一致，轉讓方給予被轉讓方不含提成、非獨占及不可轉讓的許可證，在轉讓方的所有權下轉讓根據以下條款與條件使用交付給被轉讓方的每個電腦程式（以下簡稱轉讓程式）。每個此類許可證授權被轉讓方只以機器可讀形式在轉讓方提供的單機中使用轉讓程式。該許可證不可由被轉讓方分配，再轉讓或者以其它方式轉讓給他方，被轉讓方無權複製全部或部分轉讓程式，除了本文表明的以外。
4．複製、保護及保密的權利
4．1 任何在此提供的轉讓程式可以全部或部分複製（只用於支持的目的），以列印或機器可讀的形式為被轉讓方內部使用；但是除了無需事先獲得轉讓方的書面同意，而在一份許可證下的任何時候存在至多兩份列印複製件或兩份機器可讀複製件以外，在被轉讓方的設備中不應備有軟體複製件。
4．2 被轉讓方同意把轉讓方提供的任何有關轉讓程式的著作權通知，包括在它部分或全部的所有同樣複製件中。轉讓方的著作權通知將以幾種形式出現，包括機器可讀形式。在轉讓程式上使用著作權通知並不說明該程式已經出版或以其它方式公布了。
4．3 被轉讓方同意對提供給它的任何形式的轉讓程式保密，不向任何除轉讓方及被轉讓方雇員以外的人提供或使其獲得轉讓程式的部分或全部。
4．4 被轉讓方同意在不使用時將轉讓程式加鎖存放。
5．期限
5．1 被轉讓方可在收到書面通知_________個月後終止在此轉讓的任何許可證。
5．2 如果被轉讓方不遵守許可證契約或附屬檔案的任何條款和條件，轉讓方可終止該許可證，且如被轉讓方在轉讓方書面通知後_________天內未能糾正違約行為，該終止即生效。
5．3 該許可證終止後，4．3條中的義務仍將存在。
6．專有資料的退還
在任何許可證終止後_________個月內，被轉讓方要提供給轉讓方一個檔案證明；表示對每個轉讓程式，已盡其所能與所知，除了經轉讓方書面同意由被轉讓方保留的一個用以歸檔的複製件外，將其原件和其他完整或部分複製的複製件，不論以何種形式，包括更新以後的任何複製件，退還給轉讓方或已銷毀。
7．權力
本文包含的任何內容都不應該認為是直接或暗示地或以其他方式給予轉讓任何專利和專利使用的許可證；除非被轉讓方在轉讓方的專利及專利使用下有一份非獨占、免提成費的許可證，也只應在轉讓方提供的設備中，使用該許可證提供的各轉讓程式。
附屬檔案十： 原始碼電腦程式許可證
為保持契約簡潔與一致，關於契約與附屬檔案的內容應是指本許可證契約及其附屬檔案。
本契約的所有定義在此均適用。
1．範圍
根據上述確定的契約，用於契約設備的原始碼電腦程式只在被授權的_________人員的指導下執行許可證中授權的活動時，轉讓方才向被轉讓方在許可證的基礎上交付。這些原始碼程式可有多種可能的機器可讀形式，包括但不限於磁帶、磁碟、紙帶或唯讀存儲器（rom）裝置。被轉讓方就此成為該電腦程式的被轉讓方。轉讓方向被轉讓方交付此種程式以及被轉讓方接受同樣的程式只在下列條件下進行，否則需經轉讓方書面同意。本原始碼許可證適用於所有轉讓方提供的交換機測試軟體。被轉讓方無權對原始碼程式進行變動或修改。
2．電腦程式為轉讓方所有
本許可證中交付的電腦程式原件（包括由此更新、修改或派生的）及被轉讓方對全部或部分複製的拷貝，均為轉讓方所有。
3．軟體許可證
為保持許可證契約執行的一致，轉讓方按本許可證規定的條件與條款在轉讓方著作權下，給予被轉讓方無提成、非獨占、不可轉讓的許可證，以使用交付給被轉讓方的每個電腦程式（下文稱作原始碼程式）。轉讓軟體許可證費見第三章。該許可證不可由被轉讓方分配，再轉讓或者以其他方式轉讓。除了本文表明的以外。被轉讓方無權全部或部分複製原始碼程式，按照許可證規定的條款與條件，被轉讓方必須只從_________購買所有必需的專用測試設備、進行培訓並獲得技術服務。
4．保護及保密
4．1 被轉讓方同意將原始碼程式在不使用時加鎖保存。
4．2 被轉讓方同意對提供給它的原始碼程式保守機密，不對任何除轉讓方及被轉讓方雇員以外的人提供，使其獲得此原始碼程式或其中一部分。
4．3 除了本文說明的之外，被轉讓方同意在許可證活動中不以任何方法或在任何條件下對並非確需知道的人全部或部分或通過任何媒介公開或轉讓原始碼程式或其內容，並確保那些已知原始碼的人員保護該原始碼程式。
4．4 被轉讓方同意不嘗試用任何方法包括但不限於逆向工程發現附加的專有信息。
4．5 被轉讓方同意對於原始碼程式及其中的信息或其部分不通過圖示（不限於此）向任何第三方發表、泄露、傳播、提供或以其中的其它方式使第三方得到。
4．6 被轉讓方如發現存在違反許可證第4節的可疑情況應立即書面通知轉讓方。被轉讓方同意自費努力調查該情況。
4．7 被轉讓方理解並同意任何轉讓方提供的專有資料和其他材料上存在的任何著作權說明並不表示已對之公開。
4．8 被轉讓方同意安全保存原始碼程式並採取一切必要措施使原始碼程式免於偷盜、複製和未經授權的分發、公開及傳播。
5．期限
給予被轉讓方的許可證期限將從許可證契約生效之日開始，除非出現下列情況而終止，正常終止將在本許可證簽署之日起十年後。
6．終止
6．1 被轉讓方收到書面通知一個月後可終止在此授予的任何許可證。
6．2 被轉讓方如不履行本許可證或附屬檔案的任何條款和條件，轉讓方可終止該許可證，且如轉讓方書面通知後10天內被轉讓方不採取行動糾正，該終止即生效。
6．3 如出現任何不履行契約的行為，轉讓方可立即終止本許可證。以下任何情況都構成不履行契約的行為：
（1）被轉讓方嚴重違反本許可證；或
（2）被轉讓方不按時根據本許可證交付任何數目的欠款並在轉讓方給予書面通知後30天后仍不付款；或
（3）根據中國法律被轉讓方宣布破產或停止業務活動；或
（4）被轉讓方停止執行本契約的活動；或
（5）在政府或公眾授權下任何個人、機構對原始碼程式或其部分進行干涉、徵用、沒收、處罰、強占或取走；或
（6）控制被轉讓方活動的所有制，股份、權力發生實質性變化。
6．4 任何許可證終止後，第4節義務仍然有效。
7．專有資料的歸還
如果轉讓方終止許可證，被轉讓方應採用任何或所有的補救措施。許可證終止後一個月以內，被轉讓方要向轉讓方提供一個關於每個原始碼程式的證明檔案，證明被轉讓方已盡其所能，盡其所知，將其原件或任何形式的複製件的全部或部分，包括在更新後的複製件退還給轉讓方或已銷毀。
8．許可證權力
本文包含的任何內容都不應被認為是直接或暗示地或以其他方式給予被轉讓方任何專利和專利使用的許可證，除非被轉讓方在轉讓方的專利及專利使用下有一份非獨占、免提成費的許可證，也只應在轉讓方提供的設備中使用該許可證提供的各轉讓程式。
9．許可證費、提成費及稅收
對本許可證下的轉讓軟體，其許可證的軟體許可提成費、及技術檔案、技術支持、技術培訓的費用見本契約第三章。
10．審查
在強調許可證及許可證契約條款一致的情況下，轉讓方有權定期在正常工作時間內對所有專有資料、記錄與報告，作適當的審查。該審核也包括對專有資料妥善保密措施的檢查。
附屬檔案十一： 契約產品的製造（略）
附屬檔案十二： 契約設備目錄及價格（略）
附屬檔案十三： 信用證格式（略）
附屬檔案十四： 各階段保函格式（略）
附屬檔案十五： 數量及價格折扣協定（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.