CIBATARUAPANYAIRANHEPP

SUPPLY,TRANSPORT,ERECTIONAND
COMMISSIONINGOFELECTROMECHANICAL
EQUIPMENT

SECTION9
GENERALTERMSANDCONDITIONS

OFFERNO:HIDCH13004REVA
APRIL16,2013

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April16,2013

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SUPPLY,TRANSPORT,ERECTIONANDCOMMISSIONINGOFELECTROMECHANICALEQUIPMENT
SECTION9GENERALTERMSANDCONDITIONS

TABLEOFCONTENT
1

TERMSAPPLICABLE............................................................................................................................3

DELIVERYORPERFORMANCE;DELAY..................................................................................................3

TERMSOFPAYMENT..........................................................................................................................3

DEFECTSLIABILITY..............................................................................................................................3

LIMITATIONOFLIABILITY....................................................................................................................4

CHANGES,DELETIONSANDEXTRAWORK...........................................................................................5

TAXES.................................................................................................................................................6

RESERVATIONOFTITLE.......................................................................................................................6

SETOFF..............................................................................................................................................6

10

PATENTS............................................................................................................................................6

11

SITERISKS..........................................................................................................................................6

12

TERMINATION....................................................................................................................................6

13

CONFIDENTIALITY...............................................................................................................................7

14

ENDUSER...........................................................................................................................................7

15

FORCEMAJEURE.................................................................................................................................7

16

INSURANCE........................................................................................................................................7

17

INSPECTIONANDTESTING..................................................................................................................8

18

PERFORMANCEGUARANTEES.............................................................................................................8

19

SERVICES............................................................................................................................................9

20

PERMITSANDAPPROVALS.................................................................................................................9

21

GENERAL............................................................................................................................................9

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SECTION9GENERALTERMSANDCONDITIONS

TERMSAPPLICABLE
TheTermsandConditionsofSaleand/orServicelistedbelowaretheexclusivetermsandconditionsapplicable
tobidsorproposalsmadeandsupplycontractsenteredintobytheAndritzHydrobusinesssupplyingthesame
(Seller) for the sales of products, equipment, parts and/or services relating thereto (Products and
Services).Ifthisquotationoracknowledgmentcontainstermsadditionaltoordifferentfromthoseoffered
byBuyer,thenanyacceptancebySellerisexpresslymadeconditionaluponBuyersassenttosuchadditionalor
differentterms.AnyofBuyerstermsandconditionsthatareinadditiontoordifferentfromthosecontained
herein,whicharenotseparatelyagreedtobySellerinwriting,areherebyobjectedtoandshallbeofnoeffect.
ThetermthisContractasusedhereinmeansthisquotationoracknowledgmentorpurchaseorder,together
with any attachment hereto, any documents expressly incorporated by reference and these Terms and
ConditionsofSale.

DELIVERYORPERFORMANCE;DELAY
(a) Deliveryorperformancedatesaregoodfaithestimatesanddonotmeanthattimeisoftheessence.
Buyersfailuretopromptlymakeadvanceorinterimpayments,supplytechnicalinformation,drawings
and approvals will result in a commensurate delay in delivery. Upon and after delivery, risk of loss or
damagetotheProductsshallbeBuyers.DeliveryoftheProductshereunderwillbemadeontheterms
agreedtobythepartiesassetforthinthisContract,accordingtoINCOTERMS2010.Ifdeliveryofthe
ProductsisdelayedattherequestofBuyerorduetoreasonsbeyondSellerscontrol,theriskof loss
shallpasstoBuyeratthetimeoriginallyforeseenfordelivery.
(b) WithrespecttodelaysestablishedtohavebeencausedthroughfaultofSeller,unlessexpresslyagreed
inwritingotherwise,Buyershallbeentitledtoclaimliquidateddamagestotheextentandamountand
maximum limit set out in the applicable Schedule attached hereto. If applicable, such liquidated
damagesshallbethesoleliabilityofSellerforsuchdelays,andBuyershallnotbeentitledtoanyother
damages.

TERMSOFPAYMENT
(a) PaymentforsupplyoftheProductsshallbemadeinaccordancewiththepaymentscheduleattached
hereto.Sellershallissueaninvoiceforeachpaymentmilestoneoractualprogressasthecasemaybe
and all invoices shall be paid within 30 days of the invoice date without deduction for cash discount,
expenses,taxes,levies,feesandthelikeofanykind.
(b) Services will be invoiced monthly and shall be paid within 30 days of the invoice date without any
deduction for cash discount, expenses, taxes, levies, fees and the like of any kind, except for any
statutoryholdbackimposedbyapplicablelienlegislation.
(c) Without limiting Seller's rights and recourses, overdue amounts will bear interest at the rate of the
annualrateofthreepercentagepointsabovetheborrowingrateofthecentralbankinthecountryof
the currency of payment, or if not available, the interbank offered rate, and shall be paid in such
currency,calculateddailyfromtheduedateuntilreceiptofpaymentinfull.

DEFECTSLIABILITY
(a) SellerwarrantstoBuyerthattheProductsmanufacturedbyitwillbedeliveredfreefromdefectsintitle,
design,materialandworkmanshipandcoveredunderperformanceguarantee.Ifthesaledoesnotcover
installation, then installation and removal costs (i.e. in and out costs) are hereby excluded. This
defectsliabilityshallcommenceupondeliveryoftheProductsandshallexpireontheearliertooccurof
12 months from initial operation of the Products and 18 months from delivery thereof (the "Defects
Liability Period"). There is no evergreen or extended defects liability, including for latent or hidden
defects.IfduringtheDefectsLiabilityPeriodBuyerdiscoversadefectinmaterialorworkmanshipofa
ProductandgivesSellerwrittennoticethereofwithin7daysofsuchdiscovery,Sellerwill,atitsoption,
eitherdelivertoBuyer,onthesametermsastheoriginaldeliverywasmade,accordingtoINCOTERMS
2010,areplacementpartorrepairthedefectinplace.Anyrepairorreplacementpartfurnishpursuant
tothisdefectsliabilityarewarrantedagainstdefectsinmaterialandworkmanshipforoneperiodof12
monthsfromcompletionofsuchrepairorreplacement,withnofurtherextension.Sellerwillhaveno
defectsliabilityobligationsfortheProductsunderthisparagraph4(a):(i)foranydefectsorinadequacies

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SECTION9GENERALTERMSANDCONDITIONS

in the Products arising from errors in the documents conceived and provided by the Buyer, from the
foundations or other work to be provided by or on behalf of the Buyer or from the subsurface
conditionsprovingtobeinsufficientorinadequate;(ii)iftheProductshavenotbeeninstalled,erected,
operated and maintained in accordance with generally approved industry practice and with Seller's
specificwritteninstructions;(iii)iftheProductsareusedinconnectionwithanymixtureorsubstanceor
operatingconditionotherthanthatforwhichtheyweredesigned;(iv)ifBuyerfailstogiveSellersuch
written 7 day notice; (v) if the Products are repaired by someone other than Seller or have been
intentionallyoraccidentallydamaged;(vi)forordinarywearandtearorinrespectofanypartswhichby
their nature are exposed to severe wear and tear or are considered expendable; (vii) for expenses
incurredforworkinconnectionwiththeremovalofthedefectivearticlesandreinstallationfollowing
repair or replacement, (viii) materials with a limited lifetime shorter than the duration of Defects
LiabilityPeriod,(ix)ForceMajeureoractofvandalism.
(b) Seller further warrants to Buyer that at delivery, the Products manufactured by it will be free of any
liens or encumbrances. If there are any such liens or encumbrances, Seller will cause them to be
dischargedpromptlyafternotificationfromBuyeroftheirexistence.
(c) THEEXPRESSDEFECTSLIABILITYSELLERMAKESINTHISPARAGRAPH4ARETHEONLYDEFECTSLIABILITY
IT WILL MAKE. THERE IS NO OTHER DEFECTS LIABILITY, WHETHER STATUTORY, ORAL, EXPRESS OR
IMPLIED.INPARTICULAR,THEREISNOIMPLIEDDEFECTSLIABILITYOFMERCHANTABILITYORFITNESS
FORAPARTICULARPURPOSE.
(d) The remedies provided in paragraphs 4(a), 4(b) and 4(c) are Buyer's exclusive remedy for breach of
defectsliability.
(e) With respect to any Product or part thereof not manufactured bySeller, Seller shall pass on to Buyer
onlythosewarrantiesmadetoSellerbythemanufacturerofsuchProductorpartwhicharecapableof
beingsopassedon.
5

LIMITATIONOFLIABILITY
Thefollowinglimitationsofliabilityshallapply:
(a) In no event, whether based on breach or material breach of the contract, tort (including reckless or
willfulmisconduct,misrepresentation,negligence,grossnegligence,strictliability,indemnity(including
indemnityforthirdpartyclaimsforpropertydamageandbodilyinjuryetc.),statute(classaction,fraud,
criminal misconduct, fraudulent misrepresentation, death or personal injury caused by negligence),
custom, legal theory (fairness, reasonableness etc.)or otherwise, shall Seller, its officers, directors,
employees, subcontractors, suppliers or affiliated companies be liable to Buyer or any third party for
any:(1)lossofuseorlossofprofitsorlossofproduction,disposalcosts,costorreplacementpoweror
lossofrevenueorbusinessopportunity,lossbyreasonofshutdownoffacilitiesorinabilitytooperate
anyfacilityatfullcapacity,orcostofobtainingothermeansforperformingthefunctionsperformedby
the Products, loss of future contracts, claims of customers, cost of money or loss of use of capital, in
each case whether or not foreseeable, or (2) for any indirect, special, incidental or consequential
damagesofanynature
(b) The limitations and exclusions of liability set forth in this paragraph 5 shall take precedence over any
other provision of this Contract and shall apply whether the claim of liability is based on contract,
defects liability, tort (including negligence), strict liability, indemnity, or otherwise. The remedies
providedinthisContractareBuyersexclusiveremedies.InaccordancewiththeCountrysArticle43of
LawNumber18of1999onConstructionServicesasfollows:
(i) Whoeverengagesinaconstructionworkplanninganddesignwithoutcomplyingwiththetechnical
requirement with construction work failure or building failure as a result, is subject to an
imprisonmentofatthemost5(five)yearsorafineofatthemost10%(tenpercent)ofthecontract
value.
(ii) Whoever engages in a construction work implementation in contradiction to or not in accordance
with the determined technical requirements with construction work failure or building failure asa
result,issubjecttoanimprisonmentofatthemost5(five)yearsorafineofatthemost5%(five
percent)ofthecontractvalue.

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SECTION9GENERALTERMSANDCONDITIONS

(iii) Whoever engaged in supervision of a construction work implementation deliberately gives an

opportunity for other people that implement the construction work to make a deviation from the
technicalrequirementwithconstructionworkfailureorbuildingfailureasaresult,issubjecttoan
imprisonmentofatthemost5(five)yearsorafineofatthemost10%(tenpercent)ofthecontract
value the Contractors (including its officers, directors, employees, subcontractors, suppliers or
affiliated companies) aggregate liability for any and all claims of any kind, for any noncontractual
andcontractualloss,damageorexpensearisingoutofbuildingfailureorconnectedwiththeworks
orsectionsortheContractAgreementorfromtheperformanceorbreachthereof,togetherwiththe
cost of performing make good obligations to pass performance tests shall be proportional to such
loss,damageorexpenseandshallinnoeventexceedthetenpercent(10%)oftheContractPrice.
AnyexclusionorlimitationoftheContractorsliabilityunderthisSubClauseshallbenonnegotiable,
shall take precedence over any other provisions of the Contract and the Contract Agreement and
shall apply between the Contractor and the Employer regardless of breach or material breach of
provisions of the Contract or Contract Agreement, tort (including reckless or willful misconduct,
misrepresentation, negligence, gross negligence, strict liability, indemnity for third party claims for
propertydamageandbodilyinjuryetc.),statute(classaction,fraud,criminalmisconduct,fraudulent
misrepresentation, death or personal injury caused by negligence), custom, legal theory (fairness,
reasonablenessetc.)andotherwise.
InaccordancewiththeCountrysArticle25ofLawNumber18of1999onConstructionServicesasfollows:
(i) Theserviceuserandserviceprovidershallberesponsibleforabuildingfailure
(ii) Thebuildingfailurebeingtheserviceprovidersresponsibilityasreferredtoinparagraph(1)shallbe
effectiveuponfinaldeliveryoftheconstructionworkforamaximumof10(ten)years
(iii) Athirdpartyactingasspecialistappraiserasreferredtoinparagraph(2)shalldeterminethebuilding
failure all liability of Contractor, its officers, directors, employees, subcontractors, suppliers or
affiliatedcompanies,resultingfrom,arisingoutoforconnectedwiththecontract,includingwithout
limitation to, auxiliary equipment, common system, contractors equipment, generator, goods,
materials, offshore portion, onshore portion, onshore services, permanent works, plant, section,
temporaryworks,turbine,unit,works,thisgeneralconditionsofcontract,thecontractagreement,
theannexesofthecontractagreementorfromtheperformanceorbreachthereofshallterminate
on the tenth (10th) anniversary of the date of the Contract Agreement. The Employer and the
Contractor shall not indemnify or hold harmless each other for any claims for property damage,
death,personalinjuryandthirdpartyclaims(includingclassactions).Norecoveryofdamagetothe
extent covered by a Contractors insurance policy shall be allowed. Termination of the Contract
Agreement does not cutoff the limitation of liability hereto. The remedies provided in this Sub
clauseareEmployersexclusiveremedies.ThePartiesherebywaivestheirrightsatlaworatequity
inquestioningthisexclusionandlimitationofliability.
(c) AllliabilityofSeller,itsofficers,directors,employees,subcontractors,suppliersoraffiliatedcompanies,
resulting from, arising out of or connected with the Products, Services or this Contract or from the
performanceorbreachthereofshallterminateonthethirdanniversaryofthedateofthisContract.
(d) InnoeventshallSellerbeliableforanylossordamagewhatsoeverarisingfromitsfailuretodiscoveror
repairlatentdefectsordefectsinherentinthedesignofgoodsserviced(unlesssuchdiscoveryorrepair
isnormallydiscoverablebytestsexpresslyspecifiedinthescopeofworkunderthisContract)orcaused
bytheuseofgoodsbytheBuyeragainsttheadviceofSeller.IfSellerfurnishesBuyerwithadviceor
assistance concerning any products or systems that is not required pursuant to the contract, the
furnishing of such advice or assistance will not subject Seller to any liability whether in contract,
indemnity,defectsliability,tort(includingnegligence),strictliabilityorotherwise.
(e) The maximum liability of Seller for liquidated damages on account of delays or on account of
performanceguaranteesshallnotexceed,intheaggregate,10%ofthecontractprice.
6

CHANGES,DELETIONSANDEXTRAWORK
Seller will not make changes in the Products or Services unless Buyer and Seller have executed a written
ChangeOrderforsuchchange.Buyer,withoutinvalidatingthecontract,maymakechangesbyaltering,adding
toordeductingfromthegeneralscopeoftheServicesbywrittenChangeOrder.AnysuchChangeOrderwill

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SECTION9GENERALTERMSANDCONDITIONS

includeanappropriateadjustmenttothecontractpriceanddeliveryterms.IfthechangeimpairsSellersability
to satisfy any of its obligations to Buyer, the Change Order will include appropriate modifications to this
Contract. Further, an appropriate price adjustment shall be made in the event of any modification of the
nature or scope of work by reason of incomplete or inaccurate documentation or information furnished by
Buyer.If,afterthedateofthisbidorsupplycontract,neworrevisedlawsorgovernmentalrequirementsor
otherstandardsinforceshouldrequireachangeintheProductsorServices,thechangewillbesubjecttothis
paragraph6.
7

TAXES
Sellerspricesdonotincludeanysales,use,excise,taxes,levies,duties,chargesorothertaxes.Inadditionto
thepricespecifiedherein,theamountofanypresentorfuturesales,use,excise,customsdutiesorothertax
applicable to the sale or use of the Products or Services shall be billed to and paid by Buyer unless Buyer
providestoSellerataxexemptioncertificateacceptabletotherelevanttaxingauthorities.

RESERVATIONOFTITLE
Seller shall remain owner, notwithstanding delivery, of the Products until its receipt of full and complete
payment in accordance herewith. Buyer shall cooperate in any measures necessary for the protection of
Sellers title and shall fulfill and do all acts necessary for the creation and preservation of the reservation of
title.

SETOFF
NeitherBuyernoranyofitsaffiliatesshallhaveanyrighttosetoffclaimsagainstSelleroranyofitsaffiliates
foramountsowedunderthisContractorotherwise.

10

PATENTS
UnlesstheProductsoranypartthereofaredesignedtoBuyersspecificationsandprovidedtheProductorany
partthereofisnotusedinanymannerotherthanasspecifiedorapprovedbySellerinwriting,(i)Sellershall
defendagainstanysuitorproceedingbroughtagainstBuyertotheextentbasedonaclaimthatanyProduct,
oranypartthereof,infringesanyCanadiandevicepatent;providedSellerisnotifiedpromptlyinwritingand
giventhenecessaryauthority,informationandassistanceforthedefenseofsuchsuitorproceeding;(ii)Seller
shall satisfy any judgment for damages entered against Buyer in such suit; and (iii) if such judgment enjoins
Buyerfromusinganyproductorapartthereof,thenSellershall,atitsoption:(a)obtainforBuyertherightto
continueusingsuchProductorpart;(b)eliminatetheinfringementbyreplacingormodifyingallorpartofthe
Products;or(c)takebacksuchProductorpartandrefundtoBuyerallpaymentsonthepurchasepricewhich
Seller has received, in which case neither Buyer nor Seller will have any claim against the other under this
ContractorarisingoutofthesubjectmatterofthisContract.TheforegoingstatesSellersentireliabilityfor
patentinfringementbyanyProductorpartthereof.

11

SITERISKS
(a) ConcealedConditions.Thepartiesacknowledgeandagreethatincreasedcostsorscheduleextensions
due to any concealed conditions at the job site shall be to Buyers account. Buyer shall hold Seller
harmlessforincreasedcostsandgrantanynecessaryscheduleextensionsifanyconcealedorhazardous
conditionsarefound.
(b) Environmental Remediation. Buyer acknowledges that Seller is not an expert in environmental
remediation and shall not be directed by change order or otherwise to perform any environmental
remediationaspartoftheServices,includingbutnotlimitedtoasbestosandleadpaintremoval.Ifany
environmentalremediationbecomesnecessary,Buyerwillcontractdirectlywithaqualifiedthirdparty
toperformsuchwork.

12

TERMINATION
Buyer may only terminate its order upon written notice to Seller and upon payment to Seller of Sellers
terminationcharges,whichshallbespecifiedtoBuyerandshalltakeintoaccountamongotherthingsexpenses
(direct and indirect) incurred and commitments already made by Seller and an appropriate profit; provided,

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thatinnoeventshallSellersterminationchargesbeexceedthan100%ofthecontractprice.Sellershallhave
therighttosuspendand/orterminateitsobligationsunderthisContractifpaymentisnotreceivedwithin30
daysofduedate.IntheeventofthebankruptcyorinsolvencyofBuyerorintheeventofanybankruptcyor
insolvencyproceedingbroughtbyoragainstBuyer,Sellershallbeentitledtoterminateanyorderoutstanding
atanytimeduringtheperiodallowedforfilingclaimsagainsttheestateandshallreceivereimbursementforits
terminationcharges.
13

CONFIDENTIALITY
Buyer acknowledges that the information which Seller submits to Buyer in connection with this bid, supply
contractorperformanceofthisContractincludesSellersconfidentialandproprietaryinformation,bothofa
technical and commercial nature. Buyer agrees not to disclose such information to third parties without
Sellers prior written consent. Seller grants to Buyer a nonexclusive, royaltyfree, perpetual license to use
Sellers confidential and proprietary information for purposes of this Contract and the Products that are the
subjecthereofonly.BuyerfurtheragreesnottopermitanythirdpartytofabricatetheProductsoranyparts
thereoffromSellersdrawingsortousethedrawingsotherthaninconnectionwiththisContract.Buyerwill
defend and indemnify Seller from any claim, suit or liability based on personal injury (including death) or
property damage related to any Product or part thereof which is fabricated by a third party without Sellers
priorwrittenconsentandfromandagainstrelatedcosts,chargesandexpenses(includingattorneysfees).All
copiesofSellersdrawingsshallremainSellerspropertyandmaybereclaimedbySelleratanytime.

14

ENDUSER
IfBuyerisnottheenduseroftheProductssoldhereunder(theEndUser),thenBuyerwilluseitsbestefforts
to obtain the End Users written consent to be bound to Seller by the provisions hereof. If Buyer does not
obtain such End Users consent, Buyer shall defend and indemnify Seller and Sellers agents, employees,
subcontractorsandsuppliersfromanyaction,liability,cost,loss,orexpenseforwhichSellerwouldnothave
beenliableorfromwhichSellerwouldhavebeenindemnifiedifBuyerhadobtainedsuchEndUsersconsent.

15

FORCEMAJEURE
(a) ForceMajeureDefined.ForthepurposeofthisContractForceMajeurewillmeanallunforeseeable
events, beyond the reasonable control of either party which affect the performance of this Contract,
including, without limitation, acts of God, acts or advisories of governmental or quasigovernmental
authorities,lawsorregulations,strikes,lockoutsorotherindustrialdisturbances,actsofpublicenemy,
wars, insurrections, riots, epidemics, pandemics, outbreaks of infectious disease or other threats to
public health, lightning, earthquakes, fires, storms, severe weather, floods, sabotage, delays in
transportation,rejectionofmainforgingsandcastings,lackofavailableshippingbyland,seaorair,lack
of dock lighterage or loading or unloading facilities, inability to obtain labor or materials from usual
sources,seriousaccidentsinvolvingtheworkofsuppliersorsubsuppliers,theftsandexplosions.
(b) Suspension of Obligations. If either Buyer or Seller is unable to carry out its obligations under this
Contract due to Force Majeure, other than the obligation to make payments due hereunder, and the
partyaffectedpromptlynotifiestheotherofsuchdelay,thenallobligationsthatareaffectedbyForce
MajeurewillbesuspendedorreducedfortheperiodofForceMajeureandforsuchadditionaltimeasis
required to resume the performance of its obligations, and the delivery schedule will be adjusted to
accountforthedelay.
(c) OptiontoTerminate.Iftheperiodofsuspensionorreductionofoperationswillextendformorethan
four(4)consecutivemonthsorperiodsofsuspensionorreductiontotalmorethansix(6)monthsinany
twelve(12)monthperiod,theneitherBuyerorSellermayterminatethisContract.

16

INSURANCE
(a) PropertyInsurance
(i) Buyer shall maintain allrisks property insurance and Seller shall be named as coinsured to the
extentofitsinterests,suchpolicyinsuringnotlessthantheamountofthecontractpriceforthefull
replacement value of the Products and which shall be maintained continuously until complete
payment of the contract price. Such policy shall provide that in the event of loss or damage,

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paymentshallbemadetoBuyerandSellerastheirrespectiveinterestsmayappear.Buyershallnot
adjusttheamountofsuchlossordamagepaymentwiththeinsurerswithoutpriorwrittenconsent
ofSeller.
(ii) IntheeventoflossordamagetotheProducts,oncetheextentofthelossordamageisdetermined
andinsuranceproceedsarepaidout,SellershallproceedtorestoretheWorkandshallbeentitledto
areasonablescheduleextension.
(iii) ThepaymentofsuchinsuranceproceedstoSellershallbeinadditiontotheamountsduebyBuyer
hereunderandSellershallnotberequiredtoproceedtorestoretheProductsunlessanduntilthe
parties have agreed on the amount of the total insurance proceeds payable to Seller and the
scheduleofthepaymentthereof.
(iv) Sellershallnotberesponsibleforanydeductibleamountsunderthepolicyorpolicies.
(v) Buyer shall provide Seller with proof of insurance prior to commencement of its performance
hereunder.
(b) GeneralLiabilityInsurance.Buyershallmaintaincommercialgeneralliabilityinsurancewithlimitsofnot
less than $2,000,000 per occurrence and in the aggregate covering claims for bodily injury (including
death)andphysicalpropertydamagearisingoutoftheProductsorServices.Sellershallalsoprovide
workers compensation insurance or the like as required by the laws of the jurisdiction where the
Services will be performed, and owned and nonowned auto liability insurance with limits of not less
than $1,000,000 combined single limit. Seller will provide a Certificate of Insurance certifying the
existenceofsuchcoverageuponrequest.
17

INSPECTIONANDTESTING
(a) Buyer, End User and any other of their authorized agents shall have reasonable access to inspect the
Products in progress prior to delivery, which inspection shall be conducted so as not to interfere
unreasonablywithSellersoperations.
(b) Should this Contract specify special tests to be conducted prior to shipment and require that a
representative of Buyer, End User or other of their authorized agents attend, Seller shall give Buyer
timely notice of the date thereof. Should Buyer, End User or their authorized representatives fail to
attendatsuchtesting,inspectionorapproval,theyshallbedeemedtohavewaivedanyrequirementof
theirattendanceandSellershallbeentitledtoproceedhereunder.
(c) Shoulditbedeterminedasaresultofsuchexamination,testingorinspectionthatanymaterialoritem
comprisedintheProductsdoesnotconformtotheSpecificationsorothercontractdocuments,Seller
shallbesonotifiedimmediatelyandshallpromptlyeffectatitscostsanyrepairs,changesorcorrections
of such nonconformance as Seller may deem necessary in order to meet the requirements of the
Specificationsandcontractdocuments.
(d) ShouldBuyerorEndUserrequireanytestsnotspecifiedinthisContract,theexpenses,laborcostsand
any fees shall be charged to Buyer and Seller shall be entitled, as may be necessary, to a schedule
extension.
(e) BuyershallinspecttheProductspromptlyafterdeliveryandshallimmediatelynotifySellerinwritingof
any defects or deficiencies for which the latter is responsible pursuant to its obligations under this
Contract.ShouldBuyerfailtodoso,theProductsshallbedeemedtohavebeenacceptedsubjectto
Section5(Defectsliability)whichshallapplyasregardsdefectsordeficienciesthatcannotbedetected
uponexamination.

18

PERFORMANCEGUARANTEES
(a) Anyperformanceguaranteesdescribedintheattachmentsheretoshallbevaliduntilthecompletionof
the specified tests to measure such performance. If these tests are not performed within the time
stipulated and, in any event, at the latest 6 months after delivery of the Products, the performance
guaranteesshallbedeemedtohavebeenachievedunlessotherwiseagreedinwritingbySeller.Ifthe
performance guarantees are not achieved upon completion of such tests, Buyer shall give Seller the
opportunity to carry out the improvements that Seller deems necessary, whether or not such
improvementsarewithintheoriginalscopeofthisContract.

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(b) Seller may, at its option, instead credit Buyer or its costumer(s) (End User) with the liquidated
damagesexpresslystipulatedintheattachmentstothisContractascompensationfornonfulfillmentof
theperformanceguarantees.BuyerorEndUsershallalsobeentitledtothesaidstipulatedliquidated
damagesshouldtheimprovementsnotimprovethetestresults.
(c) Buyer and End User shall not have any other right, claim or recourse with respect to the cavitation
guarantees than the remedial work referred to in subsection (a) above and, with respect to the
performance guarantees, shall not have any other right, claim or recourse than the said stipulated
liquidateddamagesreferredtoinsubsection(c).TheguaranteescontainedinthisSectionarethesole
guaranteesregardingperformanceprovidedbySellertoBuyerandEndUserandanyotherguaranteeor
defects liability implied by law or statute, including, without limitation, fitness for purpose and
merchantability,areherebyexcluded.
19

SERVICES
TotheextentthattheServicesincludetechnicalinstructionofemployeesofBuyer,itscontractorsorathird
party, Seller shall not be responsible for any damage caused by such employees nor for any deficiencies or
defective work performed by them under Seller's supervision unless and to the extent only that it can be
established that such deficiencies or faulty work were directly attributable to gross negligence of Seller's
personnelinthecourseofinstructionorsupervision.

20

PERMITSANDAPPROVALS
Buyershallobtainallpermits,licensesandcertificatesrequiredforthedeliveryandoperationoftheProducts
andperformanceoftheServices(otherthananyimportlicensesandtransportationpermits).

21

GENERAL
(a) Seller represents that any Products or parts thereof manufactured by Seller will be produced in
compliancewithallapplicablefederal,provincialandlocallawsapplicabletotheirmanufactureandin
accordance with Sellers engineering standards. Seller shall not be liable for failure of the Productsto
complywithanyotherspecifications,standards,lawsorregulations.
(b) This Contract shall inure only to the benefit of Buyer and Seller and their respective successors and
assigns.AnyassignmentofthisContractoranyoftherightsorobligationshereunder,byeitherparty
withoutthewrittenconsentoftheotherpartyshallbevoid.
(c) ThisContractcontainstheentireandonlyagreementbetweenthepartieswithrespecttothesubject
matter hereof and supersedes all prior oral and written understandings between Buyer and Seller
concerningtheProducts,Servicesandanypriorcourseofdealingsorusageofthetradenotexpressly
incorporatedherein.
(d) This Contract may be modified, supplemented or amended only by a writing signed by an authorized
representativeofSeller.SellerswaiverofanybreachbyBuyerofanytermsofthisContractmustalso
beinwritingandanywaiverbySellerorfailurebySellertoenforceanyofthetermsandconditionsof
thisContractatanytime,shallnotaffect,limitorwaiveSellersrightthereaftertoenforceandcompel
strictcompliancewitheverytermandconditionthereof.
(e) ThisContractandtheperformancethereofwillbegovernedbyandconstruedaccordingtothelawsof
theRepublicofIndonesia.
(f) AlldisputeswithIndonesianBuyer(domiciledandheadquarteredinIndonesia)arisingfromtheContract
shallbesettledfinalandbindingundertheadministrativeandproceduralRulesofArbitrationofBadan
Arbitrase Nasional Indonesia (BANI) by arbitrator(s) appointed in accordance with said rules . All
disputeswithforeignBuyer(domiciledandheadquarteredbeyondIndonesia)arisingfromtheContract
shall be settled final and binding under the administrative and procedural Rules of Arbitration of
InternationalChamberofCommerce(ICC)byarbitrator(s)appointedinaccordancewithsaidrules.The
exclusivejurisdictionspecificallyextendstodisputesregardingclaimsbasedontort,disputesregarding
thevalidityoftheContractandcostsofarbitrationproceedings(withoutlimitationthereto).
(g) TheplaceofarbitrationshallbeinSingapore(forforeignBuyer)orJakarta(forIndonesiansBuyer).The
arbitrationawardshallbefinalandbindinguponbothPartiesandshallbeenforceableateverycourtof

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April16,2013

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SUPPLY,TRANSPORT,ERECTIONANDCOMMISSIONINGOFELECTROMECHANICALEQUIPMENT
SECTION9GENERALTERMSANDCONDITIONS

proper jurisdiction. The arbitration shall be conducted in governing language of the Contract. The
arbitrationfeesandotherrelatedexpensesshallbebornebythenonprevailingParty.Inthecourseof
arbitration,bothPartiesshallcontinuetoperformtheirrespectivecontractualobligationsexceptthose
mattersunderdisputearbitration.NopaymentsdueorpayablebytheEmployershallbewithheldon
accountofapendingreferencetoarbitration.
(h) ThepartiesagreethattheUnitedNationsConventionfortheInternationalSaleofGoodsshallnotapply
tothisContract.
(i) ThepartiesheretohaverequiredthatthisContractbedrawnupinEnglish.

PT.ANDRITZHYDRO

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OfferNo.:HIDCH13004REVA
April16,2013