Supply Contracts.docx

Supply Contracts.docx

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SupplyContracts

CONDITIONSOFPURCHASE

forSupplyContracts

（April2013edition）

TableofContents

1Definitions

2RequirementsforDesign,ConstructionandOperationofthePlant

3ContentsoftheOrder

4ProvisionoftheGoods,Subcontracts

5ChangestotheGoods

6TechnicalDocumentation

7DeliveryTime,LiquidatedDamagesforDelay

8ForceMajeure

9MonitoringProgress,Inspections,Tests

10ProvisionofPartsorMaterialsbytheBuyer

11SpareParts

12Shipping,Storage

13TakingOver,Tests,PassingofRisk

14WarrantyforDefects

15ProductLiability,Default

16WarrantyforFunction

17IntellectualPropertyWarranty

18Secrecy,Ownership,Models

19Publications,Advertising

20Suspension,Termination

21Payment,Invoicing,Bonds,OffsettingAccounts,DelayinPayment,Assignment,Taxes

22CorporateResponsibility

23VoidnessinPart

24PlaceofFulfilment

25ApplicableLaw

26PlaceofJurisdiction/Arbitration

1.Definitions

1.1"Buyer"shallmeanLindeAG,

EngineeringDivision

Dr.-Carl-von-Linde-Strasse6-14,

D-82049Pullach.

1.2"Owner"shallmeantheclientoftheBuyerforthePlantforwhichtheGoodsareintended.

1.3"Order"shallmeanthedocumentscomprisingtheagreementsbetweentheBuyerandtheVendorconcerningtheGoods.

1.4"Goods"shallmeantheGoodsandservicestobeprovidedbytheVendoraccordingtotheOrder.

1.5"Plant"shallmeanthetotalplanttobesuppliedtotheOwnerbytheBuyerandforwhichtheGoodsareintended.

1.6“Site”shallmeantheareaorgroundonwhichthePlantistobeerected.

1.7"Vendor"shallmeanthesuppliertowhomtheOrderhasbeenawardedbytheBuyer

2.RequirementsforDesign,ConstructionandOperationofthePlant

ByacceptingtheOrder,theVendoracknowledgeshisobligationtotakeintoaccountallrelevantrequirementsfordesign,constructionandoperationofthePlantwhenpreparingorprovidingtheGoodsandalsothattheSitelocationisknowntohim.

3.ContentsoftheOrder

3.1AnyconditionsoftheVendorthatdeviatefromorcontradicttheseConditionsofPurchaseshallonlyapplyiftheBuyeragreestotheminwriting.

3.2OrdersandotherdeclarationsshallonlybebindingiftheyareconfirmedorgiveninwritingbytheBuyer.

3.3Allconditions,specifications,standardsandotherappendicesthatareattachedtotheOrderorarelistedthereinshallformapartoftheOrder.Incaseofconflictingprovisions,theyshallapplyinthefollowingorderofprecedence:

-thePurchaseOrder

-theseConditionsofPurchase

-theBuyer’sPacking,MarkingandShippingInstructions

-theTechnicalSpecifications

-theGeneralSpecificationsandtheBuyer’sStandards.

IfnotstipulatedotherwiseintheTechnicalSpecifications,thestandardsandtechnicalprinciplesasvalidatthetimeofOrdershallbevalid.

4.ProvisionoftheGoods,Subcontracts

4.1TheGoodsshall,exceptforanyagreedexclusionsfromthescopeofsupply,befullyfunctioningandsafeforoperation,regardlessofwhetherornotallpartsandprocessingpertainingtotheGoodsarelistedseparatelyintheOrder.OnlythosesuppliesandservicesshallbeconsideredexcludedfromtheGoodsthatareexpresslymentionedassuchintheOrder.

4.2TheVendorshallcarryouttheworkinatimelymannerandinaccordancewiththerequirementsofinternationallyrecognisedqualitymanagement（ISO9000etseq.orequivalent）.

4.3TheVendorshallsupplythetechnicaldocumentationforallsiteactivitiesuptoandincludingstart-up,aswellasoperationandmaintenanceoftheGoods.

4.4TheVendorshallcomplywiththestatutory,officialandworkmen'scompensationinsuranceregulations,recommendationsandguidelines（onenvironmentalprotection,accidentpreventionandsafetyatwork,etc.）thatarevalidatthelocationoftheSite.

4.5IftheVendorhasdoubtsabouttheproposeddesign,otherinstructionsgivenbytheBuyere.g.concerningmaterials,treatment,processing,orsub-vendorsnominatedbytheBuyer,thequalityofmaterialsorcomponentsorderedand/orprovidedbytheBuyerortheservicesprovidedbyothercontractors,heshallpromptlynotifytheBuyerthereofinwriting,ifpossiblebeforethestartofwork.

4.6TheVendorshallonlyemployprovenandqualifiedsub-vendors（whichterm,forthepurposesoftheseconditions,shallincludesubcontractors）,andshallpassontosuchsub-vendorsanytechnicalandtimeschedulerequirementsgivenintheOrder.

4.7TheVendorshallpre-fabricatetheGoodsinhisworkshopasfarasispossibleandfeasible.

4.8TheVendorwarrantsthattheGoodsarenotsubjecttoanyexportorimportrestrictions.

5.ChangestotheGoods

5.1IftheBuyerrequireschangestotheGoods,theVendorshallinformtheBuyerpromptlyinwritingofanyincreaseordecreaseinpriceandanyeffectsonthecompletiondate,backed-upbysufficientproof.ThepriceincreaseordecreaseshallbedeterminedonthebasisofthecalculationusedfortheOrder.Incaseofunitprices,theseshallbeappliedtotheincreasedordecreasedquantities,unlesstheincreaseordecreaseisexcessiveandhasasubstantialeffectonthebasisofcalculation,inwhichcaseBuyerorVendormaydemandthatanadequatereductionorincrease,respectively,oftheunitpriceinquestionbenegotiatedandagreed.

5.2ModificationstotheOrdershallbenegotiatedingoodfaithbytheparties,takingintodueaccounttheirmutualinterestsandobligationofgoodfaith.TheBuyerwillissueawrittenChangeOrderstatingtheagreedchangestotheGoodsandmodificationstotheOrder.

5.3TheVendorshall,however,evenifmodificationstotheOrderhavenotyetbeenagreed,ifsoinstructedbyBuyer,promptlyproceedtocarryouttherequiredchangeswiththetermsandconditionsoftheOrderremainingunchangedforthetimebeing.

6.TechnicalDocumentation

6.1AnychangerequestedorapprovalgivenbytheBuyerintheVendor’stechnicaldocumentationshallnotreleasetheVendorfromhisresponsibilityfortheinformationcontainedtherein,suchasdimensions,design,calculationandfunctionoftheGoods.

6.2TheVendorshalladvisetheBuyerinwritingofanychangesmadebyhimtodrawingsandotherdocumentsandclearlymarkeachsingleitem.

6.3VendorshallmakegoodathisownexpenseanyerrorsintechnicaldocumentssuppliedbytheVendor.IfonthebasisofsuchtechnicaldocumentsequipmentwasprocuredelsewherebytheBuyerortheOwner,theVendorshallreimbursetotheBuyerthecostsforanychanges,repairsand/orreplacementofsuchequipmentresultingfromsucherrors.

7.DeliveryTime,LiquidatedDamagesforDelay

7.1TheVendorshallcarryouthisownmonitoringoftimeschedule.TheVendorshallberesponsibleformonitoringanddirectinghissub-vendorstoensurethattheagreeddeliverydatesaremetandthatanup-to-datescheduleshowingtargetstatusandactualstatusisavailableatalltimes.TheBuyershallbeinformedpromptlyofexpecteddelaysorotherproblemslikelytoaffecttheagreeddeliverydates.SuchnotificationshallnotrelievetheVendorofhisobligationoftimelydelivery.IftheVendorduetohisfaultfailstosubmitsuchnotification,theVendorshallbeliableforalldamagesresultingtherefrom.TheVendorshallalsoinformtheBuyerofanymeasurestakenorplannedtospeedupworkinordertomeettheagreeddeliverydates.

7.2IfdelaysoccurthroughthefaultoftheVendor,heshalltakethenecessarymeasurestoacceleratetheworkathisownexpense.Theseinclude,butarenotlimitedto,increaseduseofstaffandmaterialresources,workingmultipleshifts,overtimeandonSundaysandpublicholidays,specialtransportasrequiredbytheBuyerandthecostofmonitoringorsupportbytheBuyer.If,inspiteofreceivingawrittenwarning,theVendorfailstotakereasonablemeasurestoacceleratethework,orifmajordamagewouldotherwiseoccurfortheBuyerortothirdparties,oriftheoperationalsafetyofthePlantisatrisk,theBuyermaycompletehimselforhaveathirdpartycompletetheGoodsinwholeorinpartattheriskandexpenseoftheVendor.

7.3LiquidatedDamagesorPenaltiesfordelay,otheragreedpenaltiesandpenaltiesorliquidateddamagesforperformanceguaranteesmaybeclaimedbytheBuyeruntilthepaymentofthefinalinvoice,evenifnoreservationisexpressedonacceptanceoftheGoods.Furtherdamagesfordelayshallnotbeexcluded.CancellationorterminationoftheOrdershallnotaffectanyclaimstopaymentofpenaltiesorliquidateddamagesandotherdamagesthathavealreadyaccrued.

8.ForceMajeure

8.1TheVendorshallnotbeliableforForceMajeure.Partsbecomingrejects,delayscausedbysub-vendorsexceptifcausedbyForceMajeure,andanystrikesnotauthorisedbythetradeunioninquestionshallnotbeconsideredForceMajeure.

8.2TheVendorshallgivepromptnoticeandprovideevidenceofthestartandendofsuchevents,theexpecteddelayandanyotherconsequences.Withoutsuchnotificationwithaccompanyingproof,thepostponementofagreeddeliverydateswillnotbeaccepted.

8.3TheVendorshalltakeallreasonableprecautionsandmeasurestominimisetheeffectsofForceMajeure.

8.4IftheForceMajeuregoesonformorethanthreemonths,eitherpartymayterminatetheOrderbywrittennotice.OnBuyer’srequest,partsoftheGoodsthatarewhollyorpartiallycompletedshallbedeliveredtoBuyer,andVendorshallbeentitledtoissueinvoicesforthecompletedportionoftheGoods（lessanyamountspreviouslypaid）.

9.MonitoringProgress,Inspections,Tests

9.1TheBuyer,theOwnerandtheirrepresentativesshallbeentitledtochecktheprogressofworkattheVendor’spremisesorthoseofhissub-vendors,andin