Unassociated Document


     

    Exhibit
10.4

     

    ENGINEERING,
PROCUREMENT, CONSTRUCTION AND COMMISSIONING

    CONTRACT

     

    Mission
Biofuels Sdn Bhd

     

    Continuous
Acid Conditioning and Silica Pretreatment, FFA pretreatment and Methyl Ester
Transesterification with biodiesel output of 750 tpd (250,000 tpa) and 98% pure
technical grade glycerin output of 82 tpd (27,308 tpa) along with associated
balance of plant at Kuantan Port, Malaysia

     

    25
July, 2007

     

    
      
         


      

      
        1

        
          

        

      

      
         


      

    
 

    ARTICLES
OF AGREEMENT made the Twenty Fifth Day of July, 2007

     

    BETWEEN:

     

    
      	
              (1)

            	
              Mission
      Biofuels Sdn Bhd (Company No. 735218-A), a company established under the
      laws of Malaysia whose principal place of business is at Suite 50-4-1,
      4th
      Floor Wisma UOA Damansara 50 Jalan Dungun 50490 Kuala Lumpur Malaysia
      ("the Purchaser" which expression shall include the Purchaser's legal
      successors in title and permitted assigns);
and

            


    

     

    
      	
              (2)

            	
              KNM
      Process Systems Sdn Bhd (Company No. Co. No. 200140-X), a company
      established under the laws of Malaysia whose principal place of business
      is at No. 15, Jalan Dagang SB4/1, Taman Sungai Besi Indah, 43300 Seri
      Kembangan; ("the Contractor" which expression shall include the
      Contractor's legal successors in
title).

            


    

     

    The
Purchaser and the Contractor shall each be referred to herein as "Party" or
collectively the "Parties".

     

    WHEREAS

     

    
      	
              (1)

            	
              The
      Purchaser wishes to obtain the design, engineering, procurement,
      manufacture, supply, erection, construction, installation, completion,
      testing and commissioning of a Continuous Acid Conditioning and Silica
      Pretreatment, FFA pre-treatment and Methyl Ester Transesterification Plant
      with biodiesel output of 750 tpd (250,000 tpa) and 98% pure technical
      grade glycerine output of 82 tpd (27,308 tpa) with associated balance of
      plant (the "Biodiesel Project") at Kuantan Port,
  Malaysia.

            


    

     

    
      	
              (2)

            	
              The
      Purchaser and the Contractor have discussed the sourcing and utilisation
      of Esterfip-H technology and engineering design provided by Axens and IFP
      for Methyl Ester Transesterification
Plant.

            


    

     

    
      	
              (3)

            	
              Axens
      has provided a technical proposal dated June 2007 to the Purchaser and
      Contractor and a commercial proposal dated December 2006 to the
      Purchaser.

            


    

     

    
      	
              (4)

            	
              Whereas
      the Contractor has satisfied itself to the suitability of Esterfip-H
      technology for meeting the requirements of the Biodiesel Project and the
      achievement of the Performance
Guarantees;

            


    

     

    
      	
              (5)

            	
              Whereas
      the Purchaser and the Contractor have agreed to purchase the said
      technology and engineering data from Axens pursuant to a Process Book
      Supply Agreement ("PBSA") dated July 25, 2007 between Axens and
      Contractor, a draft of which has been provided to the
      Purchaser.

            


    

     

    
      	
              (6)

            	
              The
      Purchaser has agreed to enter into a Technology Transfer Agreement ("TTA")
      dated July 25, 2007 with Axens for transfer of technology and covering
      terms and conditions of Axens liability for the deliverables of
      Axens.

            


    

     

    
      	
              (7)

            	
              The
      Purchaser shall assign, by way of a TTA Assignment Agreement ("TTAAA"),
      the TTA to the Contractor for the period ending the Final Performance
      Acceptance, whereupon the Assignment shall automatically end and revert to
      the Purchaser.

            


    

     

    
      	
              (8)

            	
              The
      Contractor has submitted a proposal dated June 12, 2007 for the design,
      engineering, procurement, manufacture, supply, erection, construction,
      installation, completion, testing and commissioning of the Biodiesel
      Project and the remedying of defects therein all as comprised in the
      documents listed at recitals (3) and this recital (8) hereof ("the
      Contractor's Proposal") in the lump sum fixed price of Malaysian Ringgit
      One Hundred and Twenty Two Million only (the "Contract Price") (which is
      subject to such additions thereto or deductions therefrom as may be made
      in accordance with the terms of this
Contract).

            


    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              (9)

            	
              The
      Contractor is satisfied that the Contractor's Proposal fully complies with
      and undertakes that the Contractor's Proposal shall fully comply with the
      requirements of the Biodiesel Project and the achievement of the
      Performance Guarantees.

            


    

     

    
      	
              (10)

            	
              The
      Contractor has inspected and familiarised itself with the Site conditions
      and satisfied itself as to the nature of the Site and all relevant
      conditions affecting the Works.

            


    

     

    
      	
              (11)

            	
              The
      Purchaser has obtained or shall provide support to the Contractor for
      obtaining Contractor Consents and Other Construction Consents (as detailed
      in the Conditions) for the Biodiesel
Project.

            


    

     

    NOW THIS
AGREEMENT WITNESSETH as follows:

     

    
      	
              1.

            	
              Capitalised
      terms in these Articles of Agreement shall have the same meanings as are
      respectively assigned to them in the
Conditions.

            


    

     

    
      
        	
                2.

              	
                
                  (a)

                

              	
                This
      Contract and the obligations of the Parties shall come into force upon and
      with effect from the Execution
Date.

              


      

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Purchaser shall make a payment of Malaysian Ringgit 2,000,000 (Two Million
      Only) to the Contractor on the Execution Date ("Deposit") as deposit and
      part payment towards the Contract
Price.

            


    

     

    
      	
               
      

            	
              (c)

            	
              The
      Contractor shall at its owns costs procure and deliver to the Purchaser,
      within 20 (twenty) days after the Execution Date, the Performance Bond,
      the Advance Payment Guarantee and the Corporate Guarantees as a condition
      precedent to the release of Advance Payment by the Purchaser to the
      Contractor,

            


    

     

    
      	
               
      

            	
              (d)

            	
              Within
      30 (thirty) days after the Execution Date, the Purchaser shall make the
      Advance Payment to the Contractor, provided always that the Contractor has
      furnished to the Purchaser the documents as referred to in Article 2(c)
      above.

            


    

     

    
      	
               
      

            	
              (e)

            	
              Further
      payments by the Purchaser shall be made by drawdown on the Purchaser's
      Letter of Credit to be established by the Purchaser within ten (10)
      business days of the date of making the Advance Payment.  Such
      Purchaser's Letter of Credit shall be in the form provided in Appendix
      15.

            


    

     

    
      	
               
      

            	
              (f)

            	
              The
      Commencement Date shall be the date determined as
  follows:

            


    

     

    
      	
               
      

            	
              (i)

            	
              If
      the Advance Payment is made within 20 (twenty) days of the Execution Date,
      then the Commencement Date shall be the Execution
  Date;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              If
      the Advance Payment is made beyond 20 (twenty) days of the Execution Date,
      because of non-provision of the documents referred to in Article 2(c)
      above by the Contractor, then, the Commencement Date shall be the
      Execution Date;

            


    

     

    
      	
               
      

            	
              (iii)

            	
              Date
      of making of Advance Payment
otherwise

            


    

     

    Provided
however, that if the Commencement Date does not occur within 2 (two) months from
the Execution Date for any reason whatsoever, the Parties shall renegotiate the
terms of the Contract in good faith for such alternative method or timeframe of
performance as may, in the circumstances, be fair and reasonable.  If
the Parties are unable to agree on such terms within 30 (thirty) days
thereafter, then either Party may terminate this Contract by notice in writing
to the other and:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (i)

            	
              If
      the Commencement Date has not occurred because the Contractor was unable
      to or did not provide the documents listed in Article 2(c) above, then the
      Contractor shall refund to the Purchaser within 5 (five) days from receipt
      of the said notice all monies paid by the Purchaser to Contractor under
      this Contract (including the Deposit and Advance Payment) (with interest
      of 12% per annum thereon) and thereafter neither Party shall have any
      claim or liability against the
other;

            


    

      

    
      	
               
      

            	
              (ii)

            	
              If
      the Commencement Date has not occurred for any other reason whatsoever,
      then neither Party shall have any claim or liability against the
      other.

            


    

     

    Upon the
payment of the Deposit by the Purchaser, the Contractor shall commence the
performance of the Works and shall then proceed with the Works with due
expedition and without delay provided however that, the Commencement Date has
occurred within 30 (thirty) days of Execution Date.

     

    
      	
              3.

            	
              The
      following documents and their appendices / annexures which have been
      initialled by the Parties and bound herewith shall be deemed to form and
      be read and construed as part of this
Contract:

            


    

     

    
      	
               
      

            	
              (a)

            	
              Articles
      of Agreement;

            


    

     

    
      	
               
      

            	
              (b)

            	
              Conditions
      including the Appendices attached
thereto;

            


    

     

    
      	
               
      

            	
              (c)

            	
              Contractor's
      Proposal and Drawings;

            


    

     

    
      	
               
      

            	
              (d)

            	
              Statement
      of Needs.

            


    

     

    
      	
              4.

            	
              In
      consideration of the Purchaser agreeing to pay the Contractor the Contract
      Price in accordance with the Payment Schedule, the Contractor undertakes
      to design, engineer, procure, manufacture, supply, erect, construct,
      install, test, commission and complete the Works and achieve the Final
      Performance Acceptance within the Time for Completion, to remedy defects
      therein and to do all other acts and things mentioned in or reasonably to
      be inferred from the Contract as forming a part of the Contractor's
      obligations in conformity in all respects with the provisions of the
      Contract.

            


    

     

    
      	
              5.

            	
              The
      Purchaser shall pay to the Contractor in consideration of the performance
      of the obligations referred to in Article 4, the Contract Price or such
      other sum as may become payable under the provisions of the Contract at
      the time and in the manner prescribed by the Contract.  The
      Contract Price is the sum of the following three
  parts:

            


    

     

    
      	
               
      

            	
              (a)

            	
              Part
      A Price of RM 875,000/- (Malaysian Ringgit Eight Hundred & Seventy
      Five Thousand only) representing the fixed sum payable by the Contractor
      to Axens under the PBSA;

            


    

     

    
      	
               
      

            	
              (b)

            	
              Part
      B Price of RM 4,742,500/- (Malaysian Ringgit Four Million Seven Hundred
      Forty Two Thousand Five Hundred only) representing the fixed sum payable
      by the Contractor to Axens under the TTA;
and;

            


    

     

    
      	
               
      

            	
              (c)

            	
              Part
      C Price of RM 116,382,500 (Malaysian Ringgit One Hundred Sixteen Million
      Three Hundred Eighty Two Thousand Five Hundred
  only).

            


    

     

    
      	
              6.

            	
              Konsultant
      Process Sdn Bhd, Company Number (18099-U), 44, Jalan SS 15/4D, 47500
      Subang Jaya, Selangor Darul Ehsan, Malaysia shall be the Engineer for the
      purposes referred to in Clause 2 of the
  Conditions.

            


    

     

    
      	
              7.

            	
              The
      delivery by the Contractor to the Purchaser of the Performance Bond, the
      Advance Payment Guarantee and the Corporate Guarantees shall be a
      condition precedent to any liability of the Purchaser under the Contract
      save for the payment of the Deposit by the Purchaser to Contractor on the
      Execution Date.

            


    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    IN
WITNESS whereof this Contract has been signed on behalf of the Parties the day
and year first above written.

     

    
      
        
          
            
              	
                      Signed
      for and on behalf

                      of
      Mission Biofuels Sdn Bhd by

                    	 
      	 
      
	 	 	 
	 
      	 
      	
                      Name:
      Mahalingam Swaminathan

                      Designation:
      Managing Director

                    
	 	 	 
	
                      Signed
      for and on behalf

                      of
      KNM Process Systems Sdn Bhd by

                    	 
      	 
      
	 	 	 
	 
      	 
      	
                      Name:
      Lee Swee Eng,

                      Designation:
      Group Managing Director

                    
	 	 	 
	
                      In
      the presence of

                    	 
      	 
      
	 
      	
                      1.

                    	
                      Name:

                    
	 
      	
                      2.

                    	
                      Name:

                    


            

          

        

      

    

     

    Annexures
to the Articles of Agreement

     

    
      
        	Annexure
      a	The
      Conditions including the Appendices attached thereto
	 	 
	
                Annexure
      b

              	
                Contractor's
      Proposal and Drawings (including Technical and Commercial proposals from
      Axens to the extent superseded by the PBSA and
  TTA)

              


      

    

     

    
      	
              Annexure
      c

            	
              Statement
      of Needs ("SON")

            


    

     

    
      
         


      

      
        5

        
          

        

      

      
         


      

    
 

    CONDITIONS

     

    These
clauses 1 through 53 and the Appendices 1 through 22 thereto are the Conditions
referred to in Article 3(b) of the Articles of Agreement dated July 25, 2007
between Mission Biofuels Sdn Bhd and KNM Process Systems Sdn Bhd.

     

    
      
        	
                Signed
      for and on behalf of

              	 	 	 	 
	
                
                  Mission
      Biofuels Sdn Bhd

                

              	 	 	
                /s/
      Mahalingam Swaminathan

              	 
	
                 

              	 	 	
                
                  Name:
      Mahalingam Swaminathan

                

              	 
	
                 

              	 	 	
                
                  Designation:
      Managing Director

                

              	 
	 	 	 	 	 
	Signed
      for and on behalf of	 	 	 	 
	
                KNM
      Process Systems Sdn Bhd

              	 	 	/s/
      Lee Swee Eng 	 
	 	 	 	
                Name:
      Lee Swee Eng

              	 
	 	 	 	
                Designation:
      Group Managing Director

              	 
	 	 	 	 	 
	
                In
      the presence of

              	 	 	 	 
	 	 	      
                1.

              	/s/
      Arvind Bansal 	 
	 	 	
                 

              	
                Name:
      Arvind Bansal 

              	 
	 	 	 	 	 
	 	 	
                2.

              	/s/
      Selva Kumar	 
	 	 	 	
                Name:
      Selva Kumar

              	 


      

    

     

    Clauses Comprising The
Conditions

     

    
      	
              1

            	
              Definitions
      and Interpretation

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              1.1

            	
              Definitions

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              1.2

            	
              Interpretation

            	 
      
	 
      	 
      	 
      	 
      
	
              2

            	
              The
      Engineer

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.1

            	
              Engineer's
      General Duties

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.2

            	
              Engineer's
      Specific Duties

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.3

            	
              Contractor's
      Duty To Cooperate

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.4

            	
              Engineer's
      Authority

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.5

            	
              Purchaser
      May Delegate

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.6

            	
              Written
      Confirmation By Engineer

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.7

            	
              Exercise
      Of Engineer's Discretion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              2.8

            	
              Termination
      Of Engineer's Appointment

            	 
      
	 
      	 
      	 
      	 
      
	
              3

            	
              Assignment
      and Sub-Contracting

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              3.1

            	
              Assignment

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              3.2

            	
              Sub-Contracting

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              3.3

            	
              Assignment
      By Purchaser

            	 
      
	 
      	 
      	 
      	 
      
	
              4

            	
              Contract
      Documents

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              4.1

            	
              Priority
      Of Documents

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              4.2

            	
              Resolution
      Of Ambiguity

            	 
      


    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              5

            	
              Basis
      of Tender And Contract Price

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              5.1

            	
              Contractor
      To Have Satisfied Himself Fully

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              5.2

            	
              Site
      Data

            	 
      
	 
      	 
      	 
      	 
      
	
              6

            	
              Confidentiality
      obligation of Purchaser and/or Engineer

            	 
      
	 
      	 
      	 
      	 
      
	
              7

            	
              Underground
      Works

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              7.1

            	
              Execution
      of Underground Works

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              7.2

            	
              Property
      of the Purchaser

            	 
      
	 
      	 
      	 
      	 
      
	
              8

            	
              Progress
      Reports

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              8.1

            	
              Progress
      Reports

            	 
      
	 
      	 
      	 
      	 
      
	
              9

            	
              Details
      – Confidential

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              9.1

            	
              Details
      – Confidential

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              9.2

            	
              Exceptions

            	 
      
	 
      	 
      	 
      	 
      
	
              10

            	
              Notices

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              10.1

            	
              Notices

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              10.2

            	
              Instructions
      and Orders

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              10.3

            	
              Service
      of Notices

            	 
      
	 
      	 
      	 
      	 
      
	
              11

            	
              Purchaser's
      Obligations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.1

            	
              Payment
      Obligations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.2

            	
              Purchaser's
      Engineer

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.3

            	
              Purchaser's
      Input

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.4

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.5

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.6

            	
              Consent
      Support to Contractor

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.7

            	
              Purchaser's
      Operating Personnel

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.8

            	
              Purchaser
      to Arrange Feedstock

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.9

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.10

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.11

            	
              Purchaser's
      Tax Obligations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.12

            	
              Security
      by Purchaser

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.13

            	
              Purchaser's
      Labour Relations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.14

            	
              Disposal
      of Hazardous Material

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              11.15

            	
              Purchaser
      Input

            	 
      


    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              11.16

            	
              Purchaser's
      Representations and Warranties

            	 
      
	 
      	 
      	 
      	 
      
	
              12

            	
              Specific
      Indemnification

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              12.1

            	
              Specific
      Indemnification

            	 
      
	 
      	 
      	 
      	 
      
	
              13

            	
              Contractor's
      Obligations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.1

            	
              Works
      to be Performed

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.2

            	
              Contractor
      to Provide all Labour and Personnel

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.3

            	
              Contractor's
      Consents and Other Construction Consents

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.4

            	
              Contractor's
      Quality Assurance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.5

            	
              Contractor
      to Arrange Storage

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.6

            	
              Contractor
      to Furnish Performance Bond

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.7

            	
              Contractor
      to Perform Tests on Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.8

            	
              Start-up
      and Commissioning

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.9

            	
              Contractor's
      Obligation to Provide First Fill of Consumables

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.10

            	
              Training

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.11

            	
              Access
      to Purchaser and its Designees

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.12

            	
              Cleanliness

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.13

            	
              Scheduling

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.14

            	
              Contractor's
      Obligation to Pay Taxes

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.15

            	
              Security
      Arrangements by Contractor

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.16

            	
              Protection
      of Property

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.17

            	
              Protection
      of Property by Sub-Contractors

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.18

            	
              Royalties
      and Licence Fees

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.19

            	
              Contractor's
      Labour Relations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.20

            	
              Contractor's
      Obligation to Co-operate

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.21

            	
              Contractor's
      Standards of Performance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.22

            	
              Contractor
      to Comply with Law and Consents

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.23

            	
              Contractor's
      Health and Safety Programme

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.24

            	
              Contractor's
      Insurance Obligations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              13.25

            	
              Contractor's
      Representations and Warranties

            	 
      
	 
      	 
      	 
      	 
      
	
              14

            	
              Programme

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              14.1

            	
              Programme

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              14.2

            	
              Revision
      of Programme

            	 
      


    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              14.3

            	
              Cooperation
      with Other Contractors

            	 
      
	 
      	 
      	 
      	 
      
	
              15

            	
              Design
      Documentation

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.1

            	
              Design
      Documentation Discrepancies

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.2

            	
              Design
      Documentation for Approval

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.3

            	
              Design
      Documentation for Information

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.4

            	
              Works
      to be in accordance with Approved Design Documentation

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.5

            	
              Inspection
      of Drawings

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.6

            	
              Operating
      and Maintenance Manuals and Instructions

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.7

            	
              Copyright

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.8

            	
              Contractor's
      Use of Drawings and Information Supplied by Purchaser or
      Engineer

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              15.9

            	
              Contractor's
      Documentation

            	 
      
	 
      	 
      	 
      	 
      
	
              16

            	
              Errors
      in Drawings etc. Supplied by Contractor

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              16.1

            	
              Errors
      in Drawings etc. Supplied by Contractor

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              16.2

            	
              Exceptions

            	 
      
	 
      	 
      	 
      	 
      
	
              17

            	
              Contractor's
      Representatives

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              17.1

            	
              Contractor's
      Representatives

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              17.2

            	
              Objection
      to Representatives

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              17.3

            	
              Returns
      of Labour

            	 
      
	 
      	 
      	 
      	 
      
	
              18

            	
              Site
      Services and Clearance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              18.1

            	
              Fencing,
      Guarding, Lighting and Watching

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              18.2

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              18.3

            	
              Clearance
      of Site

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              18.4

            	
              Opportunities
      for Other Contractors

            	 
      
	 
      	 
      	 
      	 
      
	
              19

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	
              20

            	
              Safety

            	 
      
	 
      	 
      	 
      	 
      
	
              21

            	
              Extraordinary
      Traffic

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              21.1

            	
              Prevention
      of Damage Caused by Traffic

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              21.2

            	
              Protection
      of Highways and Bridges

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              21.3

            	
              Claims

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              21.4

            	
              Waterborne
      Transport

            	 
      
	 
      	 
      	 
      	 
      
	
              22

            	
              Setting
      Out

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              22.1

            	
              Setting
      Out

            	 
      


    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              22.2

            	
              Benchmarks
      etc.

            	 
      
	 
      	 
      	 
      	 
      
	
              23

            	
              Inspection
      and Testing of Plant

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              23.1

            	
              Inspection
      and Testing of Plant Before Delivery

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              23.2

            	
              Dates
      of Test and Inspection

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              23.3

            	
              Services
      for Tests and Inspection

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              23.4

            	
              Failure
      on Tests or Inspection

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              23.5

            	
              Effect
      on Contractor's Obligation

            	 
      
	 
      	 
      	 
      	 
      
	
              24

            	
              Delivery

            	 
      
	 
      	 
      	 
      	 
      
	
              25

            	
              Suspension
      of Works, Delivery or Erection

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              25.1

            	
              Instructions
      to Suspend

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              25.2

            	
              Contractor's
      Expenses

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              25.3

            	
              Expense
      Incurred Due to Suspension

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              25.4

            	
              Default
      by Contractor

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              25.5

            	
              Resumption
      of Work, Delivery or Erection

            	 
      
	 
      	 
      	 
      	 
      
	
              26

            	
              Defects
      Before Taking-Over

            	 
      
	 
      	 
      	 
      	 
      
	
              27

            	
              Variations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              27.1

            	
              Variations:
      Meaning of Variations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              27.2

            	
              Purchaser's
      Instruction to Vary

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              27.3

            	
              Valuation
      of Variations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              27.4

            	
              Disputed
      Variations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              27.5

            	
              Exceptions

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              27.6

            	
              Notice
      and Confirmation of Variations

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              27.7

            	
              Form
      of Variation Order

            	 
      
	 
      	 
      	 
      	 
      
	
              28

            	
              Tests
      on Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.1

            	
              Notice
      of Tests on Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.2

            	
              Delayed
      Tests on Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.3

            	
              Repetition
      of Tests on Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.4

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.5

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.6

            	
              Operations
      Responsibilities

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.7

            	
              Determination
      of Results of Tests

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              28.8

            	
              Contractor
      Bonus

            	 
      


       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                28.9

              	
                Consequences
      of Failure to Achieve Minimum Acceptable Performance
    Criteria

              	 
      


      

    

    
 

    
      	
              29

            	
              Taking
      Over

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.1

            	
              Taking
      Over or Final Performance Acceptance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.2

            	
              Notice
      of Taking Over and Issue of Taking Over Certificate

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.3

            	
              Effect
      of Taking Over

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.4

            	
              Outstanding
      Work

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.5

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.6

            	
              Products
      produced - Purchaser Possession

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.7

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              29.8

            	
              Retention
      Bond

            	 
      
	 
      	 
      	 
      	 
      
	
              30

            	
              Use
      Before Taking-Over

            	 
      
	 
      	 
      	 
      
	
              31

            	
              Interference
      with Tests

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              31.1

            	
              Interference
      with Tests

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              31.2

            	
              Deemed
      Taking-Over

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              31.3

            	
              Tests
      to be Carried Out During Defects Liability Period

            	 
      
	 
      	 
      	 
      	 
      
	
              32

            	
              Time
      for Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              32.1

            	
              Time
      for Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              32.2

            	
              Achievement
      of Milestones

            	 
      
	 
      	 
      	 
      	 
      
	
              33

            	
              Extension
      of Time for Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              33.1

            	
              Extension
      of Time for Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              33.2

            	
              Strict
      Compliance Required

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              33.3

            	
              Minimising
      Anticipated Delay

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              33.4

            	
              Instructions
      to Avoid or Reduce Delay

            	 
      
	 
      	 
      	 
      	 
      
	
              34

            	
              Delay

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              34.1

            	
              Delay
      in Completion

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              34.2

            	
              Contractor's
      Liability Subject to Qualification

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              34.3

            	
              Prolonged
      Delay

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              34.4

            	
              Contractor's
      Liability Not Prejudiced

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              34.5

            	
              Liquidated
      Damages Reasonable

            	 
      
	 
      	 
      	 
      	 
      
	
              35

            	
              Performance
      Liquidated Damages

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              35.1

            	
              Performance
      Liquidated Damages

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              35.2

            	
              Liquidated
      Damages Reasonable

            	 
      


    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              35.3

            	
              Contractor's
      Liability Subject to Qualification

            	 
      
	 
      	 
      	 
      	 
      
	
              36

            	
              Defects
      Liability

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.1

            	
              Meaning
      of Defects Liability Period

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.2

            	
              Making
      Good Defects

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.3

            	
              Application
      to Works Made Good

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.4

            	
              Extension
      of Defects Liability

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.5

            	
              Outer
      Limit of Defects Liability

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.6

            	
              Delay
      in Remedying Defects

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.7

            	
              Removal
      of Defective Work

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.8

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.9

            	
              Contractor
      to Search for Cause of Defect/Damage

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.10

            	
              Latent
      Defects

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.11

            	
              Liability
      for Defects

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.12

            	
              Sub-Contractor
      Warranties

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              36.13

            	
              Limitation
      of Warranties

            	 
      
	 
      	 
      	 
      	 
      
	
              37

            	
              Vesting
      of Plant

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              37.1

            	
              Vesting
      of Plant

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              37.2

            	
              Contractor
      to Procure Title to Plant

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              37.3

            	
              Setting
      Aside and Marking Plant

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              37.4

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              37.5

            	
              Inspection
      of Plant

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              37.6

            	
              Contractor
      Risk

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              37.7

            	
              Certificate
      Issued

            	 
      
	 
      	 
      	 
      	 
      
	
              38

            	
              Contractor's
      Equipment

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              38.1

            	
              Contractor's
      Equipment

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              38.2

            	
              Contractor's
      Equipment to be Exclusively for Execution of Works

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              38.3

            	
              Loss
      or Damage of Contractor's Equipment

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              38.4

            	
              Maintenance
      to Contractor's Equipment

            	 
      
	 
      	 
      	 
      	 
      
	
              39

            	
              Certificates
      and Payment

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              39.1

            	
              Payment
      to Contractor

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              39.2

            	
              Note
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              39.3

            	
              Not
      Used

            	 
      


    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              39.4

            	
              Deduction
      from Certificate

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              39.5

            	
              Payments
      not Conclusive

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              39.6

            	
              Application
      for Final Certificate

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              39.7

            	
              Value
      of Final Certificate

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              39.8

            	
              Issue
      of Final Certificate

            	 
      
	 
      	 
      	 
      	 
      
	
              40

            	
              Payment

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              40.1

            	
              Payments

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              40.2

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              40.3

            	
              Currency
      of Payment

            	 
      
	 
      	 
      	 
      	 
      
	
              41

            	
              Claims

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              41.1

            	
              Notification
      of Claims

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              41.2

            	
              Allowance
      for Profit

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              41.3

            	
              Purchaser's
      Liability to Pay Claims

            	 
      
	 
      	 
      	 
      	 
      
	
              42

            	
              Patent
      Rights etc.

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              42.1

            	
              Indemnity
      Against Patent Infringement

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              42.2

            	
              Conduct
      of Proceedings

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              42.3

            	
              Not
      used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              42.4

            	
              Effect
      of Infringement

            	 
      
	 
      	 
      	 
      	 
      
	
              43

            	
              Accidents
      and Damage

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              43.1

            	
              Care
      of Works

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              43.2

            	
              Making
      Good Loss or Damage to the Works

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              43.3

            	
              Injury
      to Persons and Property Whilst the Contractor has Responsibility for Care
      of the Works

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              43.4

            	
              Injury
      and Damage After Responsibility for Care of the Works Passes to
      Purchaser

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              43.5

            	
              Accidents
      or Injury to Workmen

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              43.6

            	
              Procedure
      for Claims

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              43.7

            	
              Survival
      of Termination

            	 
      
	 
      	 
      	 
      	 
      
	
              44

            	
              Limitation
      of Liability and Indirect or Consequential Damages

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              44.1

            	
              Mitigation
      of Loss

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              44.2

            	
              Indirect
      or Consequential Damage

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              44.3

            	
              Aggregate
      Liability

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              44.4

            	
              Limit
      of Total Liability

            	 
      


    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              44.5

            	
              Limit
      of Liability

            	 
      
	 
      	 
      	 
      	 
      
	
              45

            	
              Purchaser's
      Risks

            	 
      
	 
      	 
      	 
      
	
              46

            	
              Termination

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              46.1

            	
              Termination
      upon Contractor and Purchaser Events

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              46.2

            	
              Termination
      Other Than Upon Contractor Non-Remediable Events or Purchaser
      Non-Remediable Event

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              46.3

            	
              Consequences
      of Termination

            	 
      
	 
      	 
      	 
      	 
      
	
              47

            	
              Insurance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              47.1

            	
              Contractor's
      Insurance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              47.2

            	
              Purchaser's
      Insurance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              47.3

            	
              General
      Provisions Regarding Insurance

            	 
      
	 
      	 
      	 
      	 
      
	
              48

            	
              Remedy
      on Failure to Insure

            	 
      
	 
      	 
      	 
      
	
              49

            	
              Force
      Majeure

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              49.1

            	
              Instances
      of Force Majeure

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              49.2

            	
              Effect
      of Force Majeure

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              49.3

            	
              Certain
      Events not Excused

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              49.4

            	
              Notice
      of Force Majeure, Procedure

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              49.5

            	
              Consequences
      of Change in Law

            	 
      
	 
      	 
      	 
      	 
      
	
              50

            	
              Disputes
      and Arbitration

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              50.1

            	
              Mutual
      Discussions

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              50.2

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              50.3

            	
              Arbitration

            	 
      
	 
      	 
      	 
      	 
      
	
              51

            	
              Applicable
      Law

            	 
      
	 
      	 
      	 
      
	
              52

            	
              Miscellaneous

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.1

            	
              Language

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.2

            	
              Severability
      of Provisions

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.3

            	
              Waiver

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.4

            	
              Amendment

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.5

            	
              Entire
      Agreement

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.6

            	
              Further
      Acts and Assurances

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.7

            	
              Expenses

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.8

            	
              Assignment

            	 
      


    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              52.9

            	
              No
      Partnership

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              52.10

            	
              Compliance
      with Laws

            	 
      
	 
      	 
      	 
      	 
      
	
              53

            	
              Additional
      Clauses for Hardware and Software

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.1

            	
              Application
      of this Clause

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.2

            	
              Warranty
      and Performance

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.3

            	
              Steering
      Meetings

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.4

            	
              Title
      to Standard Software

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.5

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.6

            	
              Not
      Used

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.7

            	
              Services

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.8

            	
              Training

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.9

            	
              Manuals
      and User Documentation

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              53.10

            	
              Provisions
      Surviving Final Certificates

            	 
      


    


    
      
         


      

      
        15

        
          

        

      

      
         


      

    
 

    Appendices to the
Conditions

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	
                                                          Appendix

                                                        	
                                                          Title

                                                        
	 	 
	
                                                          1

                                                        	
                                                          Scope
      of Works

                                                        
	 	 
	
                                                          2

                                                        	
                                                          Certain
      Important Terms

                                                        
	 	 
	
                                                          3

                                                        	
                                                          Not
      Used

                                                        
	 	 
	
                                                          4

                                                        	
                                                          Programme
      (Project Time Schedule)

                                                        
	 	 
	
                                                          5

                                                        	
                                                          Not
      Used

                                                        
	 	 
	
                                                          6

                                                        	
                                                          Not
      Used

                                                        
	 	 
	
                                                          7

                                                        	
                                                          Performance
      Guarantees and Liquidated Damages

                                                        
	 	 
	
                                                          8

                                                        	
                                                          Payment
      Schedule

                                                        
	 	 
	
                                                          9

                                                        	
                                                          Site

                                                        
	 	 
	
                                                          10

                                                        	
                                                          Not
      Used

                                                        
	 	 
	
                                                          11

                                                        	
                                                          Not
      Used

                                                        
	 	 
	
                                                          12

                                                        	
                                                          Not
      Used

                                                        
	 	 
	
                                                          13

                                                        	
                                                          Purchaser's
      Input

                                                        
	 	 
	
                                                          14

                                                        	
                                                          Form
      of Performance Bond

                                                        
	 	 
	
                                                          15

                                                        	
                                                          Form
      of Advance Payment Guarantee

                                                        
	 	 
	
                                                          16

                                                        	
                                                          Form
      of Parent Company Guarantee

                                                        
	 	 
	
                                                          17

                                                        	
                                                          Form
      of Variation Order

                                                        
	 	 
	
                                                          18

                                                        	
                                                          Form
      of Mechanical Completion Certificate

                                                        
	 	 
	
                                                          19

                                                        	
                                                          Form
      of Final Certificate of Payment

                                                        
	 	 
	
                                                          20

                                                        	
                                                          Form
      of Taking Over Certificate

                                                        
	 	 
	
                                                          21

                                                        	
                                                          Form
      of Defects Liability Certificate

                                                        
	 	 
	
                                                          22

                                                        	
                                                          Form
      of Retention
Bond

                                                        


                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         


      

      
        16

        
          

        

      

      
         


      

    


    CONDITIONS

     

    
      	
              1

            	
              Definitions and
      Interpretation

            


    

     

    
      	
              1.1

            	
              Definitions

            


    

     

    In
construing the Contract the following words and expressions when capitalised and
used shall have the following meanings hereby assigned to them unless the
context otherwise requires:

     

    "Advance Payment"
means the sum as specified in Appendix 2 payable by the Purchaser to the
Contractor as advance payment and part payment towards the Contract Price in
accordance with Article 2 of the Articles of Agreement;

     

    "Advance Payment
Guarantee" means the unconditional, irrevocable and on-demand bank
guarantee in favour of the Purchaser for the amount and validity period as
specified in Appendix 2 and in the form and substance set forth in Appendix 15
hereof, issued by an internationally recognised first class bank acceptable to
the Purchaser;

     

    "Appendix": means
Appendix to the Conditions;

     

    "Articles of
Agreement": means the Articles of Agreement executed by the Purchaser and
the Contractor in respect of the execution of the Works;

     

    "Axens" means the
French company organized as a "Societe Anonyme" and having its main office at 89
boulevard Franklin Roosevelt, F-92508, Rueil-Malmaison, France which is an
affiliate of Instituit Francais due Petrole ("IFP") and an international
provider of technologies, catalysts, absorbents, specialises equipment and
services to the hydrocarbon industry;

     

    "Base Lending Rate":
means the daily six month LIBOR base lending rate quoted by the Purchaser's bank
for Malaysian Ringgit deposits;

     

    "Biodiesel" shall mean
Fatty Acid Methyl Ester meeting the specifications set by the EN14214 or ASTM
6751 standards.

     

    "Biodiesel Output
Guarantee" shall have the meaning set forth in Appendix 7 to the
Conditions;

     

    "Biodiesel Project":
means the Continuous Acid Conditioning and Silica Pretreatment, FFA Pretreatment
and Methyl Ester Transesterification with Biodiesel output of 750 tpd (250000
tpa) and 97.5% Pure Glycerine output of 82 tpd (27308 tpa) along with associated
balance of plant at Kuantan Port, Malaysia, all to be constructed in accordance
with the Contractor's Proposal and SON and to meet the Performance
Guarantees;

     

    "Bonus": means the
amount payable to the Contractor by the Purchaser pursuant to Clause 28.8 in the
event the Contractor completes the Works and Tests on Completion and achieves
the Final Performance Acceptance before the Time for Completion;

     

    "Business Day": means
any Day, which, is not a public holiday in Malaysia;

     

    "Change in Law":
means:

     

    
      	
               
      

            	
              (i)

            	
              any
      enactment or issue of any new Law by any Malaysian Governmental
      Instrumentality

            


    

     

    
      	
               
      

            	
              (ii)

            	
              any
      Consent required to be obtained by the Party from any Malaysian
      Governmental Instrumentality due to any enactment or issue of any new
      Law;

            


    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      amendment, alteration, modification or repeal of any existing Law, by an
      Malaysian Governmental Instrumentality or through any interpretation
      thereof;

            


    

     

    
      	
               
      

            	
              (iv)

            	
              any
      change in any Consent requirement or amendment, alteration, modification
      or repeal of any Consent; and

            


    

     

    
      	
               
      

            	
              (v)

            	
              any
      change in applicable environmental and safety guidelines and regulations
      applicable to the Works,

            


    

     

    in each
case coming into effect after the date of this Contract,

     

    "Change in Law Cost":
shall mean, with respect to any Change in Law, any cost or expense relating to
the Project resulting from, or otherwise attributable to, such Change in Law,
that is incurred by the Contractor and not otherwise covered by
insurance;

     

    "Commencement Date"
shall mean the date determined pursuant to Article 2 (f) of the Articles of
Agreement.

     

    "Commercial Operation
Date": means the day following the date on which the Final Performance
Acceptance is achieved;

     

    "Contractor Consents"
shall have the meaning as defined in Clause 13.3;

     

    "Corporate
Guarantees": means a corporate guarantee to be procured by Contractor in
favour of the Purchaser from KNM Group Berhad which shall be valid from the
Commencement Date until the issuance of the final Defects Liability Certificate,
in the form and substance as provided in Appendix 16;

     

    "Conditions": means
these conditions attached as Annex (a) to the Articles of
Agreement;

     

    "Consent": means any
approval, consent, authorization or other requirement that is required from any
Governmental Instrumentality under the laws of the Malaysia with respect to the
Biodiesel Project;

     

    "Contract": means the
agreement between the Purchaser and the Contractor for the execution of the
Works comprising the Articles of Agreement and the documents referred to in
Article 3 thereof including all appendices and annexures thereto, as the same
may be amended, supplemented or modified from time to time;

     

    "Contract Price":
means the fixed sum referred to in Article 5 of the Articles of Agreement or
such other sum as may be adjusted in accordance with the terms of the
Contract;

     

    "Contract Value":
means such part of the Contract Price, adjusted to give effect to any additions
or deductions as are provided for in the Contract, as is properly apportionable
as determined by the Engineer to the Plant or work in question.  In
determining the Contract Value the state, condition and topographical location
of the Plant, the amount of work done and all other relevant circumstances shall
be taken into account;

     

    "Contractor": means
the Party named as such in the Articles of Agreement;

     

    "Contractor Non-Remediable
Event": has the meaning assigned to it in Clause 46.1.2;

     

    "Contractor Remediable
Event": has the meaning assigned to it in Clause 46.1.1;

     

    "Contractor's
Equipment": means all appliances or things of whatsoever nature required
for the purposes of carrying out the Works but this expression does not include
Plant, materials or other things intended to form or forming a permanent part of
the Works;

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    "Contractor's
Insurance": means the insurance coverage as defined in Clause
47.1;

     

    "Contractor's
Proposal": has the meaning assigned to it at Recital (2) to the Articles
of Agreement;

     

    "Cost": means actual
direct expenses and costs which are incurred by the Contractor subsequent to the
Commencement Date for labour, materials, plant and other services which are
reasonable, necessary and directly associated with accomplishing the execution
of the Works or any portion thereof.  Costs shall exclude all indirect
and consequential losses including profit, interest on capital employed and
financing charges;

     

    "CTER Section" shall
mean that part of the Biodiesel Project that represents the Methyl Ester
Transesterification Plant with biodiesel output of 750 tpd (250,000 tpa) and
97.5% pure glycerine output of 82 tpd (27,308 tpa) along with the balance of
plant;

     

    "Day": means a
calendar day;

     

    "Defects Liability
Certificate": means the certificate issued by the Engineer in accordance
with Clause 36.2 when the Contractor has completed to the satisfaction of the
Engineer all such rectification and making good as may be required in respect of
any part of the Works and the relevant Defects Liability Period has
expired;

     

    "Defects Liability
Period": has the meaning assigned to it in Clause 36.1;

     

    "Design
Documentation": drawings, diagrams, details, documents, specifications,
samples, models or information (including calculations, logic or sequence
overview diagrams and functional design specifications for computer
software);

     

    "Engineer": means such
company or person as the Purchaser shall nominate in writing to act for and on
behalf of the Purchaser for the purposes referred to in Clause 2 of the
Conditions and if no such company or person has been appointed, it shall mean
the Purchaser;

     

    "EPCC": means
engineering, procurement, construction and commissioning;

     

    "Execution Date":
means the date of execution of this Contract by the Parties;

     

    "Final Certificate":
the certificate to be issued by the Engineer pursuant to Clause 39.8 in the form
set out in Appendix 12;

     

    "Final Performance
Acceptance" or "FAC": shall have the meaning setforth in Clause 29 of the
Conditions.

     

    "Force Majeure": has
the meaning assigned to it in Clause 49.1;

     

    "Glycerine" means
97.5% pure technical grade glycerine;

     

    "GOM": means the
central Government of Malaysia;

     

    "Good Manufacturing
Practice": means, at a particular time, those practices, methods and acts
as are in accordance with standards of prudence applicable to the Biodiesel
plants as adopted generally for use in the Biodiesel industry which would have
been expected to accomplish the desired result at the lowest reasonable cost
consistent with reliability, safety and expedition and generally in conformance
to the manufacturer's operation and maintenance guidelines;

     

    "Governmental
Instrumentality": means any country, and any ministry, department,
political subdivision, instrumentality, agency, court, corporation or commission
under the direct or indirect control of such country;

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

       

    

    "Hardware": means all
systems containing microprocessors or computers comprised within the Biodiesel
Project whether linked to a composite distributed control system or stand alone
(except where they comprise a component part of a manufacturer's standard
equipment) and all the equipment and operating systems as listed in the
Contractor's Proposal;

     

    "Law": all laws,
statutes, orders, decrees, injunctions, licences, permits, approvals, agreements
and regulations including those related to taxes and duties of any Governmental
Instrumentality having jurisdiction over the matter in question and any
applicable environmental and safety guidelines and regulations applicable to the
Works, including permitted exceptions to any or all of the
foregoing;

     

    "Latent Defects" shall
have the meaning as defined in Clause 39.10;

     

    "Latent Defects Liability
Period" shall have the meaning as defined in Clause 39.10;

     

    "Malaysian Ringgit" or
"MYR" or "RM" means the lawful
currency of Malaysia.;

     

    "Mechanical
Completion": means, in respect to a Project Section, when the
installation and erection of all equipment, instrument, piping, valves and
interconnections with respect to that Project Section are mechanically complete,
are clean, have completed hydro testing and a certificate for Mechanical
Completion has been issued by the Engineer to the Contractor in respect of the
Project and the Project is ready for commissioning.

     

    "Milestone": means an
event which may be the start or, as the case may be, the completion in whole or
in part of a specified activity as set out in the Programme;

     

    "Minimum Acceptable
Performance Criteria" shall mean such criteria as specified in the
Appendix 2;

     

    "Month": means a month
according to the Gregorian calendar;

     

    "Other Construction
Consents" shall have the meaning as defined in Clause 13.3;

     

    "Part A Price" means
the part of the Contract Price as per Article 5 (a) of the Articles of
Agreement;

     

    "Part B Price" means
the part of the Contract Price as per Article 5 (b) of the Articles of
Agreement;

     

    "Part C Price" means
the part of the Contract Price as per Article 5 (c) of the Articles of
Agreement;

     

    "Parties": means the
Purchaser and the Contractor and "Party" shall mean either of them;

     

    "Payment Schedule":
means the Payment Schedule initialled by the Parties and forming part of the
Contract, attached as Appendix 8 to the Conditions;

     

    "Performance Bond":
means the unconditional, irrevocable and on-demand bond to be furnished by the
Contractor in favour of the Purchaser for an amount equal to 10% of the Contract
Price valid from the Commencement Date until the date of Final Performance
Acceptance and in the form set forth in Appendix 14 hereof, issued by an
internationally recognised first class bank acceptable to
Purchaser;

     

    "Performance
Guarantees" shall have the meaning set forth in Appendix 7 to the
Conditions;

     

    "Plant": means the
Biodiesel Project;

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

       

    

    "Preliminary
Variation": means a preliminary variation prepared by the Contractor in
accordance with Clause 27.1 in response to a request submitted by the Purchaser
in accordance with either the first or second paragraph of Clause
27;

     

    "Pretreament Section"
shall mean that part of the Biodiesel Project that represents the Continuous
Acid Conditioning and Silica Pretreatment and FFA Pre-treatment
plants;

     

    "Programme": the
Contractor's Project time schedule attached hereto as Appendix 4 or such other
programme as may be amended in accordance with the provisions of the
Contract;

     

    "Project": means the
design, engineering, procurement, financing, manufacture, supply, erection,
construction, installation, completion, testing and commissioning of the Plant
and the owning, operation, management and maintenance of the Plant;

     

    "Purchaser": means the
Party named as such in the Articles of Agreement;

     

    "Purchaser Input":
means the facilities and services to be provided by the Purchaser under this
Contract in a timely manner.

     

    "Purchaser Letter of
Credit": means the letter of credit to be issued to the Contractor by an
international first class bank on behalf of the Purchaser for an amount equal to
the Contract Price less the Advance Payment and less the Deposit, have validity
as provided in Appendix 2 hereunder and, to be issued within 10 (ten) days of
the payment of Advance Payment which is to be in the form provided in Appendix
15.

     

    "Purchaser Remediable
Event": has the meaning assigned to it in Clause 46.1.3;

     

    "Purchaser's Risks"
shall have the meaning specified in Clause 45;

     

    "Purchaser Non-Remediable
Event" : has the meaning assigned to in Clause 46.1.4;

     

    "Remedial Notice": has
the meaning assigned to in Clause 46.1.5(a);

     

    "Remedial Programme":
has the meaning assigned to it in Clause 46.1.5 (b);

     

    "Request for
Variation": shall have the meaning specified in Clause 27.1;

     

    "Retention Bond":
means the unconditional, irrevocable and on-demand bond to be furnished by the
Contractor in favour of the Purchaser for an amount equal to 5% (five percent)
of the Contract Price, valid from the date of Final Performance Acceptance until
the issuance of the Defects Liability Certificate) and in the form set forth in
Appendix 22 hereof,
issued by an internationally recognised first class bank acceptable to the
Purchaser immediately on Final Performance Acceptance and simultaneous to the
release of the Performance Bond.;

     

    "Savings": shall mean,
with respect to any Change in Law, any savings or reduction of cost or expense
relating to the Project resulting from, or otherwise, attributable to, such
Change in Law, that is realised by the Contractor;

     

    "Site": means the land
areas and places designated by the Purchaser and described in Appendix 9 to the
Conditions, on, under in or through which the Works are to be constructed
including the areas for the Biodiesel Project;

     

    "SON": means the
"Biodiesel Project Statement of Needs" attached as Annexure (c) to the Articles
of Agreement;

     

    "Standard Software":
means the Contractor's standard computer programs to be proposed by the
Contractor and reviewed by the Engineer including all documentation relating
thereto to be provided by the Contractor under the Contract.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

    

    "Subcontractors":
means the firms, persons, companies or entities employed by the Contractor as
subcontractors for the execution or supply of any part of the
Works;

     

    "System": means that
part of the Works which consists of the Hardware and Standard
Software;

     

    "Taking Over" shall
have the meaning as specified in Clause 29;

     

    "Taking Over
Certificate": certificate mentioned in Clause 29.2;

     

    "Tests on Completion":
means all tests specified in the Contractor's Proposal, or otherwise proposed by
the Contractor and approved by the Engineer, to be carried out by the Contractor
at its own costs upon the completion of erection and/or installation of the
Works but before the date of Taking Over in order to demonstrate the performance
of the Works is in accordance with the Contract and the achievement of the
Performance Guarantees;

     

    "Time for Completion":
means the period agreed between the Parties for the achievement of the Final
Performance Acceptance of the Biodiesel Project as stated in Appendix 2, or such
extended time as may be fixed under Clause 33;

     

    "TPD" or "tpd" means
Tonnes Per day.

     

    "Variation": shall
mean a variation entered in accordance with Clause 27;

     

    "Week": means any
continuous period of 7 days;

     

    "Works": means all of
the Plant to be provided, all works required in connection with the design,
engineering, procurement, manufacture, transport, installation, construction,
commissioning, start-up, demonstration and testing of the Biodiesel Project and
all other work to be done by the Contractor under the Contract and shall include
those as detailed in Appendix 1 and any changes made to such works in accordance
with this Contract;

     

    "Writing": means any
hand-written, type-written, computer or electronically generated printed
statement;

     

    
      	
              1.2

            	
              Interpretation

            


    

     

    
      	
               
      

            	
              1.2.1

            	
              Words
      importing persons or parties shall include firms, corporations and any
      organisation having legal capacity.

            


    

     

    
      	
               
      

            	
              1.2.2

            	
              Words
      importing the singular only also include the plural and vice versa where
      the context requires.

            


    

     

    
      	
               
      

            	
              1.2.3

            	
              Wherever
      in these Conditions provision is made for the giving of notice or consent
      by any person, unless otherwise specified such notice or consent shall be
      in writing and the word "notify" shall be construed
      accordingly.

            


    

     

    
      	
               
      

            	
              1.2.4

            	
              The
      headings in these Conditions shall not be deemed part thereof or be taken
      into consideration in the interpretation or construction thereof or of the
      Contract.

            


    

     

    
      	
               
      

            	
              1.2.5

            	
              Except
      where a reference is made expressly to any other document, any references
      in these Conditions to Clauses, sub-clauses, paragraphs and Schedules are
      references to those contained in these Conditions.  Except where
      otherwise stated references in a Clause to a sub-clause are to that
      sub-clause of that Clause in which the reference
  appears.

            


    

     

    
      	
               
      

            	
              1.2.6

            	
              Reference
      to any gender includes the other
genders;

            


    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              1.2.7

            	
              Unless
      otherwise expressly mentioned, a reference to any document is a reference
      to that document and all exhibits, schedules, appendices and the like
      incorporated therein, as the same is amended, modified, supplemented,
      waived, varied, added to, substituted, replaced, renewed or extended from
      time to time;

            


    

     

    
      	
               
      

            	
              1.2.8

            	
              Any
      date or period set forth in this Contract shall be such date or period or
      such other date or period as maybe extended pursuant to the terms and
      provisions of this Contract.

            


    

     

    
      	
              2

            	
              The
      Engineer

            


    

     

    
      	
              2.1

            	
              Engineer's General
      Duties

            


    

     

    The
powers of the Engineer are set out in this Clause 2.  Unless otherwise
expressly provided in the Contract neither the exercise of these powers, its
failure to exercise such powers nor the appointment or engagement of the
Engineer by the Purchaser shall in any way relieve the Contractor of any of its
obligations or liability under the Contract.  No approval, consent or
failure to disapprove any matter by the Engineer shall relieve the Contractor of
any of his obligations or liability under the Contract.  The Engineer
shall not issue the design of the Works.  The general powers of the
Engineer include but are not limited to quality assurance concerning the
Contractor's design, specifications, workmanship and materials and monitoring
and checking the preparation of the design and specification of the Works and
the supply, installation, construction, testing, commissioning, completion of
the Works and performance of the Contractor's obligations under Clause 36
(Defects Liability), and verifying that the Works are being carried out by the
Contractor in accordance with the SON, the Contractor's Proposal, and the
standards of safety, quality and performance required by the Contract and
Law.

     

    The
Engineer shall coordinate among the Contractor, the Purchaser and himself in
approving or certifying documents, which have been submitted to the Engineer by
the Contractor.

     

    
      	
              2.2

            	
              Engineer's Specific
      Duties

            


    

     

    The
specific duties and powers of the Engineer shall include those set out
below:

     

    
      	
               
      

            	
              (i)

            	
              Monitor
      either at regular intervals or on a continuous basis the design,
      manufacture and site progress against the Programme and the Contractor's
      systems for controlling the progress of the
  Works;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              Receive
      and review for compliance with the Contract and suitability for operation
      and maintainability and approve or reject the Design Documentation
      specified in the Contract as requiring the Engineer's
      approval.  Inspect, check and comment at all stages upon the
      design undertaken.  Receive the Design Documentation required to
      be submitted to the Engineer for information
  only;

            


    

     

    
      	
               
      

            	
              (iii)

            	
              Review
      mass balances and utility consumption data for performance and layout
      drawings for operation and
maintenance;

            


    

     

    
      	
               
      

            	
              (iv)

            	
              Establish
      programme validation points for quality audit of the design, manufacture
      and construction;

            


    

     

    
      	
               
      

            	
              (v)

            	
              Examine
      either on a continuous basis or at regular intervals the steps taken by
      the Contractor in respect of quality assurance and checking that the same
      are adhered to (for which purpose, the Engineer may arrange and carry out
      such inspections and controls as it deems necessary in order to ensure the
      quality of the Works and compliance with the
  Contract);

            


    

     

    
      
         


      

      
        23

        
          

        

      

      
         


      

    


    
      	
               
      

            	
              (vi)

            	
              Comment
      on the training programme for future
operators;

            


    

     

    
      	
               
      

            	
              (vii)

            	
              Issue
      payment certificates and the final certificates pursuant to Clause
      39.  Value plant, goods and materials and work executed, as
      required by the Contract;

            


    

     

    
      	
               
      

            	
              (viii)

            	
              Witness
      and inspect the assembly of the Plant at the manufacturer's premises, and
      its erection on the Site in accordance with an agreed schedule of works
      and Site tests and the commissioning
procedures;

            


    

     

    
      	
               
      

            	
              (ix)

            	
              Comment
      on and seek modifications for completeness and accuracy, where required,
      of the Contractor's operating procedures, and operating and maintenance
      manuals;

            


    

     

    
      	
               
      

            	
              (x)

            	
              Liaise
      with the Contractor or its third party inspectors, as the case may be, in
      terms of statutory duties for pressure parts and lifting
      equipment;

            


    

     

    
      	
               
      

            	
              (xi)

            	
              Carry
      out a quality audit on the civil design procedures and review the material
      quality for suitability to provide long life durability and low
      maintenance as per the requirements of the Contract and the Good
      Manufacturing Practice;

            


    

     

    
      	
               
      

            	
              (xii)

            	
              Monitor
      the Contractor's applications for licences and approvals under Clause
      13;

            


    

     

    
      	
               
      

            	
              (xiii)

            	
              Issue
      the Taking Over Certificate provided that such certificates shall only be
      valid and effective if the same has been countersigned by the
      Purchaser;

            


    

     

    
      	
               
      

            	
              (xiv)

            	
              Monitor
      proposed Tests on Completion and other tests and procedures and the
      commissioning of the Works with reference to the SON and the Contractor's
      Proposal and the Contract;

            


    

     

    
      	
               
      

            	
              (xv)

            	
              Advise
      the Purchaser of any difference between actual and specified
      performance;

            


    

     

    
      	
               
      

            	
              (xvi)

            	
              Notify
      the Purchaser of defects, which, in the Engineer's view, should be
      rectified prior to the issue of the Taking Over
    Certificate;

            


    

     

    
      	 	
              (xvii)

            	
              Consider
      and make decisions upon any applications for extensions of the Time for
      Completion under Clause 33; and

            


    

     

    
      	 	
              (xviii)

            	
              Any
      other powers and duties expressly provided for in these
      Conditions.

            


    

     

    
      	
              2.3

            	
              Contractor's Duty to
      Co-operate

            


    

     

    The
Contractor shall cooperate with the Engineer and the Purchaser and provide such
access, information and assistance as may be reasonably necessary to enable the
Engineer to perform its duties as set out in the Contract.  The
Contractor shall further comply with all decisions, instructions and orders made
or issued by the Engineer within the period specified therein, failing which,
without prejudice to any other rights or remedies available to the Purchaser
under this Contract, the Purchaser may employ other persons to execute any work
whatsoever which may be necessary to give effect to such decision, instruction
or order and all costs incurred in connection with such employment shall be
recoverable from the Contractor by the Purchaser as a debt or set-off against
any monies due or to become due to the Contractor under this
Contract.

     

    
      	
              2.4

            	
              Engineer's
      Authority

            


    

     

    The
Engineer shall have no authority to relieve the Contractor of any of its duties
or obligations under the Contract nor, except as expressly provided hereunder or
elsewhere in the Contract, to order any work which would result in any delay to
the completion of the Works or any extra payment to the Contractor by the
Purchaser, or to make any variation of or in the Works.


    
      
         


      

      
        24

        
          

        

      

      
         


      

    


    
      	
              2.5

            	
              Purchaser May
      Delegate

            


    

     

    The
Purchaser may from time to time in writing delegate to the Engineer any of the
powers and authorities vested in the Purchaser (or revoke the same) and shall
furnish to the Contractor a copy of all such written delegations or revocations
of powers and authorities.  Any written instruction or approval given
by the Engineer to the Contractor within the terms of such delegation, but not
otherwise, shall bind the Contractor and Purchaser as though it had been given
by the Purchaser.

     

    
      	
              2.6

            	
              Written Confirmation
      by Engineer

            


    

     

    The
Contractor may require the Engineer to confirm in writing any decision,
instruction or order of the Engineer, which is not in writing.  The
Contractor shall make such request without undue delay and the Engineer shall so
confirm in writing its decision, instruction or order without undue delay and in
any event within 2 (two) working days of receipt of such request and if the
Engineer fails to do so, the decision, instruction or order shall be of no
effect

     

    
      	
              2.7

            	
              Exercise of Engineer's
      Discretion

            


    

     

    Wherever
by the Conditions the Engineer is required to exercise its discretion
either:

     

    
      	
               
      

            	
              a.

            	
              by
      giving its decision, opinion or consent;
or;

            


    

     

    
      	
               
      

            	
              b.

            	
              by
      expressing its satisfaction or approval;
or;

            


    

     

    
      	
               
      

            	
              c.

            	
              by
      determining the Contract Value; or;

            


    

     

    
      	
               
      

            	
              d.

            	
              otherwise
      by taking action which may affect the rights and obligations of either of
      the Parties,

            


    

     

    he shall
exercise such discretion in good faith and in an impartial manner.

     

    
      	
              2.8

            	
              Termination of
      Engineer's Appointment

            


    

     

    The
Purchaser shall at any time be free to terminate the appointment of the Engineer
and appoint a replacement.

     

    
      	
              3

            	
              Assignment and
      Sub-Contracting

            


    

     

    
      	
              3.1

            	
              Assignment

            


    

     

    The
Contractor shall not assign the benefit of the Contract in whole or in part or
any of its obligations under the Contract.  A charge in favour of the
Contractor's bankers of any moneys due under the Contract, or the subrogation of
insurers to the Contractor's rights shall not be considered an
assignment.

     

    
      	
              3.2

            	
              Sub-Contracting

            


    

     

    The
Contractor shall not sub-contract all or substantially whole of the
Works.  The Contractor shall require prior written consent of the
Purchaser (or Engineer if so delegated by the Purchaser) for the procurement of
and specifications of any proprietary equipment and materials, save that no such
consent shall be required for suppliers and sub-contractors who are named in the
Contract or previously approved in the Contractor's
Proposal.  Provided that the consent for the following two
subcontractors is deemed to have been granted to the Contractor by the
Purchaser;

     

    
      	
               
      

            	
              a)

            	
              Oiltek,
      Malaysia for the technology, engineering and design of the Pretreatment
      Section; and;

            


    


    
      
         


      

      
        25

        
          

        

      

      
         


      

    


    
      	
               
      

            	
              b)

            	
              Axens
      for the Esterfip-H technology and basic engineering for the CTER
      Section.

            


    

     

    Any such
consent shall not relieve the Contractor from any liability or obligation under
the Contract and the Contractor shall be responsible for all the acts, defaults
and neglects of any sub-contractor (whether domestic or nominated), supplier,
their sub-subcontractors, suppliers, agents, servants or workmen as fully as if
they were the acts, defaults or neglects of the Contractor, its agents, servants
or workmen.  All application for consent under this Clause shall be in
writing and accompanied with the relevant details of the work to be
subcontracted or the materials to be supplied, scope of work, labour force,
schedule and company profile and track record of the proposed subcontractor and
supplier.

     

    
      	
              3.3

            	
              Assignment by
      Purchaser

            


    

     

    The
Purchaser may at any time assign the Contract or any rights of the Purchaser
thereunder to its affiliates or financiers provided that such assignment does
not materially adversely affect the security or the timely payment of the
Contract Price to the Contractor.  Such assignment shall not relieve
the Contractor from any duty, obligation or responsibility under the
Contract.

     

    
      	
              4

            	
              Contract
      Documents

            


    

     

    
      	
              4.1

            	
              Priority of
      Documents

            


    

     

    The
priority of the documents which form part of the Contract are as listed below
and in the event of any discrepancy or inconsistency between the documents, a
document higher on the list will prevail over a document lower on the
list:

     

    
      	
               
      

            	
              a.

            	
              the
      Articles of Agreement;

            


    

     

    
      	
               
      

            	
              b.

            	
              the
      Conditions and all the appendices attached
  thereto;

            


    

     

    
      	
               
      

            	
              c.

            	
              the
      Contractor's Proposal and Drawings;

            


    

     

    
      	
               
      

            	
              d.

            	
              the
      SON;

            


    

     

    
      	
              4.2

            	
              Resolution of
      Ambiguity

            


    

     

    Subject
to Clause 4.1, the documents forming the Contract are to be taken as mutually
explanatory of one another.  Any ambiguity, inconsistency, discrepancy
or conflict may be reasonably explained and resolved by the Purchaser and the
Purchaser may issue instructions resolving the ambiguity, inconsistency,
discrepancy or conflict to the Contractor and the Contractor shall, at its own
cost, comply with such instructions and shall not be entitled to any extension
of Time for Completion under Clause 33.  The Contractor shall be
entitled to dispute the Purchaser's instructions under this Clause.

     

    
      	
              5

            	
              Basis of Tender And
      Contract Price

            


    

     

    
      	
              5.1

            	
              Contractor to Have
      Satisfied Himself Fully

            


    

     

    The
Contractor shall be deemed to have thoroughly inspected and surveyed the Site
and its surroundings (except as expressly provided in Clause 7.1) and to have
satisfied himself fully as to the condition (including geological, climatic,
underground and hydrological condition) of all circumstances affecting the Site
(including any safety regulations applicable thereto), the extent and nature of
the design, work, labour, materials and goods necessary for the completion of
the Works, the means of communication with and access to and through the Site,
the available methods of transporting the Plant and Contractor's Equipment to
the Site and other matters necessary for performance of the Contract, and to
have examined the Conditions, Contractor's Proposal and the SON together with
such drawings, plans and information as may be annexed thereto or referred to
therein.  The Contractor shall at its own expense be responsible for
obtaining any other right of access, accommodation, land or facilities outside
the Site as may be required by him or its workmen for the purpose of the Works
under the Contract.


    
      
         


      

      
        26

        
          

        

      

      
         


      

    


    The
Contractor shall be further deemed to have satisfied himself before agreeing
with the Purchaser as to the correctness and sufficiency of the Contractor's
Proposal and the Contract Price which shall (except insofar as it is otherwise
expressly provided in the Contract) cover all its obligations under this
Contract and all things necessary for the proper execution and completion of the
Works and the remedying of any defects.  For the avoidance of doubt,
the Contract Price shall include all ancillary and other works and expenditure,
whether separately or specifically mentioned or described in this Contract or
not, which are either indispensably necessary to carry out and bring to
completion the works described in the Contract or which may contingently become
necessary to overcome difficulties before completion.

     

    
      	
              5.2

            	
              Site
      Data

            


    

     

    Without
prejudice to its obligations under Clause 13, the Contractor shall be
responsible for any misunderstanding or incorrect information howsoever
obtained, including any information provided by the Purchaser or the Engineer,
except for the SON, the correctness & accuracy of which shall be the
Purchaser's responsibility.  Except for and subject to Clause 7.2, 27,
45 and 49, and the existence of hazardous materials or historical artefacts at
the Site, no additional payment or adjustment to the Contract Price or extension
of the Time for Completion shall be made on account of any conditions related to
the Site, including without limitation underground conditions, hydrological,
climatic, environmental or other physical conditions.

     

    
      	
              6

            	
              Confidentiality
      obligation of Purchaser and/or
Engineer

            


    

     

    Any and
all designs, plans, specifications, processes and other engineering or technical
information or data, including but not limited to the engineering design work
relating to the Works, which is delivered to the Purchaser and/or the Engineer
in connection with the Contract is confidential to the
Contractor.  The Purchaser and/or the Engineer shall not and shall not
permit any other party to use, transfer, assign, disclose, divulge or publish
any such designs, plans, specifications, processes or other engineering or
technical information or data to any third party for any reason or purpose
without the Contractor's prior written consent (save insofar as may be necessary
for the purposes of the Contract or for the performance of the Purchaser's or
the Engineer's obligations under this Contract).  Provided, however,
that the Purchaser and/or the Engineer shall have no obligation to maintain in
confidence any information that it can demonstrate (a) is in public domain at
the time of disclosure; or; (b) though originally confidential information,
subsequently became part of the public domain through no fault of the Purchaser
and/or the Engineer; or; (c) though originally confidential information, is
rightfully received by the Purchaser and/or Engineer from a third party without
obligations of confidence and that such third party was free to disclose this
information as on the date of disclosure; or; (d) is in response to a court
order or decree or is otherwise required by Law, provided that the Purchaser
and/or the Engineer shall notify the Contractor, if practicable, prior to such
disclosure and in no case more than 10 (ten) days after such
disclosure.

     

    
      	
              7

            	
              Underground
      Works

            


    

     

    
      	
              7.1

            	
              Execution of
      Underground Works

            


    

     

    The
Contractor shall execute all the underground works required for the performance
of the Works including any relocation, diversion, reinstatement and making good
of any damage to pre-existing services or structures.  All such works
as may be necessary or desirable shall be included in the Contract Price and the
Programme.


    
      
         


      

      
        27

        
          

        

      

      
         


      

    


    
      	
              7.2

            	
              Property of the
      Purchaser

            


    

     

    All
articles, materials or substances of value and structures and other remains or
things of geological or archaeological interest discovered on the Site shall, as
between the Purchaser and the Contractor, be deemed to be the absolute property
of the Purchaser.  The Contractor shall take suitable precautions to
prevent its workmen or any other persons from removing or damaging any such
article or material, substance or thing and shall, immediately upon discovery
thereof and before removal, acquaint the Engineer of such discovery and carry
out the Engineer's instructions for dealing with the same.  The
Contractor shall be permitted extension of the Programme and additional Cost as
is reasonably required to carry out Engineer's instructions, and Clause 27 shall
apply.

     

    
      	
              8

            	
              Progress
      Reports

            


    

     

    
      	
              8.1

            	
              Progress
      Reports

            


    

     

    The
Contractor shall supply to the Purchaser an activity report at the times and
covering the periods and matters required therefore in the
Programme.  The Contractor also shall provide to the Purchaser and the
Engineer, promptly upon becoming aware thereof, a report describing the
occurrence of any act or condition materially affecting the Works or its ability
to perform its obligations under this Contract.

     

    The
Contractor shall within 5 (five) days of the end of each month, issue to the
Purchaser and the Engineer monthly progress reports containing full details of
the progress of all Works achieved including Milestones up to the end of such
month and identifying any areas of delay or difficulty in a form to be required
by the Engineer.

     

    If there
is an objection by the Engineer to any item contained in a monthly progress
report, the Contractor shall amend the report to take into account such
objection and resubmit the amended report after consultation with the
Engineer.

     

    
      	
              9

            	
              Details -
      Confidential

            


    

     

    
      	
              9.1

            	
              Details -
      Confidential

            


    

     

    The
Contractor shall treat the details of the Contract and any information made
available in relation thereto and all information concerning the design,
construction and performance of the Works as confidential and shall not publish
or disclose the same or any particulars thereof to any third party (save insofar
as may be necessary for the purposes of the Contract), without the previous
consent in writing of the Purchaser provided that nothing in this Clause shall
prevent the publication or disclosure of any such information that has come
within the public domain otherwise than by breach of this Clause.  The
Contractor shall only divulge confidential information to those of the
Contractor's employees as are directly involved or engaged for the purposes of
the Contract and who need to know the same and will ensure that such employees
are aware of and comply with these obligations as to
confidentiality.  The Contractor shall ensure that its sub-contractors
and/or suppliers are bound by the requirements of this Clause.  The
provisions of this Clause 9 shall survive the termination of this
Contract.

     

    
      	
              9.2

            	
              Exceptions

            


    

     

    Nothing
in this Clause shall prevent the communication of any information by the
Contractor to its bankers and professional advisers or others to whom it is
under a legally enforceable obligation to disclose the same.

     

    
      	
              10

            	
              Notices

            


    

     

    
      	
              10.1

            	
              Notices

            


    

    


    Any
notice to be given under the Contract shall be served by sending the same to the
respective addresses of the Parties as set out in Appendix 2.


    
      
         


      

      
        28

        
          

        

      

      
         


      

    


    
      	
              10.2

            	
              Instructions and
      Orders

            


    

     

    All
certificates, instructions and orders to be given by the Engineer or the
Purchaser under the Contract shall be served by sending the same by registered
post, cable, courier, telex or facsimile transmission to, or by leaving the same
at, the Contractor's address as set out in the Articles of Agreement or such
other address as the Contractor may give prior written notice of to the Engineer
and Purchaser for that purpose.

     

    
      	
              10.3

            	
              Service of
      Notices

            


    

     

    Any
notice sent by telex, cable or facsimile transmission shall be deemed to have
been served at the time of transmission.  A notice sent by post shall
be deemed to have been served 5 (five) business days after posting.  A
notice delivered personally or by courier shall be deemed to have been given at
the time of delivery.

     

    
      	
              11

            	
              Purchaser's
      Obligations

            


    

     

    
      	
              11.1

            	
              Payment
      Obligations

            


    

     

    The
Purchaser shall make timely payments to the Contractor of all amounts due to the
Contractor under this Contract in accordance with the terms and provisions of
this Contract.

     

    
      	
              11.2

            	
              Purchaser's
      Engineer

            


    

     

    The
Purchaser shall designate a representative (the "Engineer") who shall be
acquainted with the Project and shall have authority and responsibility to act
on behalf of the Purchaser pursuant to Clause 2 hereof.

     

    
      	
              11.3

            	
              Purchaser's
      Input

            


    

     

    The
Purchaser represents that it has obtained the requisite rights to control over
or use of the land areas comprising the Site which are required by the
Contractor to carry out the Contractor's obligations under the Contract at the
Site and the Purchaser shall make the Site available to the Contractor (but not
for Contractor's exclusive use) on or before 15th August 2007.  If the
Purchaser fails to give to the Contractor access to and possession of the Site
on such date stated, the Engineer, as may be reasonable in all the
circumstances, shall ascertain and certify the amount of any Cost incurred by
the Contractor and any impact on the Programme as a result and such amount and
impact shall be treated as a Variation according to Clause 27 and/or an
extension of Time for Completion according to Clause 33 as
applicable.

     

    
      	
              11.4

            	
              Not
      Used.

            


    

     

    
      	
              11.5

            	
              Not
      Used

            


    

     

    
      	
              11.6

            	
              Consent Support to
      Contractor

            


    

     

    With
respect to Contractor Consents and Other Construction Consents, the Purchaser
shall provide support to the Contractor, which support shall include: (a)
attendance at meetings with the Contractor and third parties designated by the
Contractor, (b) assistance in preparation of responses to inquiries by
Governmental Instrumentality, (c) assistance in presentations at hearings of
Governmental Instrumentality, (d) provision of all necessary information and
documents required by Contractor in connection with obtaining any Contractor
Consents or other Construction Consents and, (c) such other services as
Contractor may reasonably request from time to time.  If the Purchaser
at any time becomes aware of any applicable Consent that the Purchaser or the
Contractor is required or recommended to obtain and that is of the type other
than Other Construction Consents and Contractor Consents, respectively, the
Purchaser shall promptly give notice thereof to Contractor.


    
      
         


      

      
        29

        
          

        

      

      
         


      

    


    
      	
              11.7

            	
              Purchaser's Operating
      Personnel

            


    

     

    The
Purchaser or its designee shall provide appropriate operators and maintenance
personnel with sufficient knowledge and experience for the normal, day-to-day,
in-service operation and maintenance of the Biodiesel Project, to assist
Contractor by performing normal operating and maintenance duties during the
commissioning and Start-up of the Project Sections and the performance of the
Tests on Completion.  Said Purchaser's personnel will be available to
Contractor for such purposes, as needed, until Final Performance
Acceptance.  Purchaser's personnel shall not be substitutes for,
replacements of, or alternates to Contractor having a work force in sufficient
numbers and with all skills necessary or desirable to achieve the Commercial
Operation Date.  Contractor shall be responsible for the direct
supervision with respect to operational matters of the Purchaser's operating and
maintenance personnel during the commissioning, start-up, testing and operation
of the Project until the Final Performance Acceptance or the earlier takeover
and use of the Project by the Purchaser.  The provision of personnel
by the Purchaser or its designee pursuant to this Clause 11.7 shall not relieve
Contractor of any of its obligations or liabilities hereunder.

     

    
      	
              11.8

            	
              The Purchaser to
      Arrange Feedstock

            


    

     

    The
Purchaser shall at its own cost arrange for the feedstock and consumables
specified in the performance feedstock specifications set forth in Appendix 13
hereto to be delivered to the Biodiesel Project in reasonable and sufficient
quantity in order to enable Contractor to perform start-up, commissioning and
testing of the Biodiesel Project in accordance with the terms of this Contract
and achieve the Final Performance Acceptance, provided that Contractor shall
have given written notice to the Purchaser of the need for such feedstock at
least 45 (forty five) days prior to the scheduled start-up if such scheduled
date has been delayed from the date set forth in the original
Programme.  If such scheduled start-up date will occur earlier than
originally scheduled, Contractor shall provide written notice of the need for
such feedstock to the Purchaser at least 45 (forty five) days prior to the
start-up date and the Purchaser will use its reasonable efforts to provide such
feedstock and consumables earlier than scheduled.  Notwithstanding the
foregoing, any feedstock and consumables provided by the Purchaser under this
Clause 11.8 in connection with the repetition of any Test on Completion (in
excess of three retests) after the achievement of Final Performance Acceptance
to demonstrate the Final Performance Acceptance, to the extent such repetition
of any Test on Completion is required for any reason attributable to Contractor,
shall be provided by the Purchaser at the expense of Contractor to the extent
the Purchaser cannot recover the cost of such feedstock by sale of Biodiesel
and/or Glycerin produced.  Contractor shall reimburse the Purchaser
for any such unrecoverable costs of any such excess feedstock and consumables
for such tests within 14 (fourteen) days after receipt of Purchaser's invoice
therefor, along with all supporting documentation, failing which the Purchaser
shall be entitled to set off or deduct such costs from monies due or to become
due to the Contractor under the Contract.

     

    
      	
              11.9

            	
              Not
      Used

            


    

     

    
      	
              11.10

            	
              Not
      Used

            


    

     

    
      	
              11.11

            	
              Purchaser's Tax
      Obligations

            


    

     

    Subject
to Clause 11.11.1 and clause 13.14, the Purchaser shall be responsible for and
pay all Malaysian customs duties, excise taxes and sales taxes.  The
Purchaser shall make timely, direct payment to the relevant Governmental
Instrumentality of such taxes and duties or provide such assessed amounts in
advance to the Contractor to enable timely payment of such taxes and
duties.  The Purchaser and the Contractor shall cooperate to ensure
the proper assessment of all such taxes and assessments.  The
Contractor shall submit to the Purchaser in good time such details of all plant
and equipment incorporated in the Works / Biodiesel Project as will enable the
Purchaser to obtain all necessary import permit or licences as well as any tax
exemptions on items that shall be used for the Works.  The Purchaser
and the Contractor shall cooperate to facilitate importation and customs
clearance formalities.


    
      
         


      

      
        30

        
          

        

      

      
         


      

    


    
      	 	
              11.11.1

            	
              Specific Tax
      Exceptions

            


    

     

    The
Purchaser shall not be obliged to pay the relevant Governmental Instrumentality
in the following instances:

     

    
      	
               
      

            	
              (a)

            	
              Malaysian
      custom duties, excise tax, works contract tax or service tax entry tax,
      and service tax assessed in relation to temporary works, the replacement
      of any rejected material or equipment, or the Contractor's equipment which
      is not to be incorporated in the Biodiesel Project or Works (which shall
      be paid directly by the
Contractor);

            


    

     

    
      	
               
      

            	
              (b)

            	
              any
      fine, penalty, confiscation charges or other charges in consequence of
      mis-declaration or for wrong description by the Contractor or for any
      other non-compliance by the Contractor with any applicable
      Law.

            


    

     

    
      	
              11.12

            	
              Security by The
      Purchaser

            


    

     

    After
Final Performance Acceptance of the Biodiesel Project or the earlier take over
and use of the Plant by the Purchaser, the Purchaser shall supply such security
and take such steps to secure and protect such Biodiesel Project from loss,
damage or destruction as the Purchaser shall reasonably deem necessary and
prudent.  Purchaser shall coordinate any such security measures with
the Contractor's security plan required to be provided by the Contractor up to
Final Performance Acceptance, and the Purchaser shall cooperate with the
Contractor in the implementation of any such security measures for the Biodiesel
Project.

     

    
      	
              11.13

            	
              Purchaser's Labour
      Relations

            


    

     

    The
Purchaser shall be responsible for all labour relation matters relating to the
services being performed by the Purchaser and the Purchaser's other contractors
on the Site and shall at all times comply with all applicable employment laws
and labour welfare legislation.

     

    
      	
              11.14

            	
              Disposal of Hazardous
      Material

            


    

     

    The
Purchaser shall remove, transport and dispose of or cause the removal,
transportation and disposal of any hazardous material transported into the Site
by the Purchaser or the Purchaser's other suppliers and other contractors,
pre-existing or created, used or handled by the Purchaser or the Purchaser's
other suppliers and contractors on the Site.  The Purchaser shall
notify the Contractor immediately upon the discovery of the presence of any
hazardous material on, or the release of hazardous material on or from, the
Site.  The removal, transportation and disposal of such hazardous
materials shall be conducted in accordance with all applicable Laws and
applicable Consents.

     

    
      	
              11.15

            	
              Purchaser
      Input

            


    

     

    The
Purchaser shall provide the facilities, components and services to be provided
by the Purchaser in a timely manner.

     

    
      	
              11.16

            	
              Purchaser's
      Representations and
Warranties

            


    

     

    The
Purchaser represents and warrants to Contractor that;


    
      
         


      

      
        31

        
          

        

      

      
         


      

    


    
      	 	
              11.16.1

            	
              The
      Purchaser is a company organized, validly existing and in good standing
      under the laws of Malaysia and that the execution, delivery and
      performance of this Contract have been duly authorized by all requisite
      corporate action and will not violate any provision of any Governmental
      Instrumentality, rule, regulation, statute or ordinance, or violate any
      provision of its charter or bylaws or any indenture, contract or
      instrument to which it is a party or by which it or its property may be
      bound or affected.

            


    

     

    
      	 	
              11.16.2

            	
              The
      Purchaser is not in violation of any applicable Law, or any other law,
      statute, order, rule or regulation promulgated, or judgment entered, by
      any national, state or local Governmental Instrumentality, that, for
      either an individual violation or for a number of violations, in the
      aggregate, would adversely affect its ability to perform its obligations
      under this Contract.

            


    

     

    
      	 	
              11.16.3

            	
              The
      Purchaser is, or will be, the holder of all national, state, local or
      other applicable Consents required to conduct its business.  The
      Site is leased by the Purchaser.  Purchaser has obtained, or has
      no reason to expect that it will not in due course and without undue delay
      (subject to Force Majeure Events) obtain, all the Purchaser consents
      (other than the Contractor's Consents and the Other Construction
      Consents).

            


    

     

    
      	 	
              11.16.4

            	
              The
      Purchaser has obtained, or has no reason to expect that it will not in due
      course and without undue delay (subject to Force Majeure Events) obtain,
      all of the approvals, certificates, Consents and licences with respect to
      any Governmental Instrumentality, or any department or agency thereof,
      necessary, required or appropriate in connection with procurement of the
      Biodiesel Project on the Site.

            


    

     

    
      	 	
              11.16.5

            	
              The
      Purchaser further warrants that it will notify the Contractor if at any
      time prior to Final Performance Acceptance any of the foregoing
      representations and warranties ceases to be accurate and complete in any
      material respect.

            


    

     

    
      	 	
              11.16.6

            	
              The
      Purchaser has had the opportunity to consult legal counsel and will
      observe the laws of any applicable jurisdiction that may be pertinent to
      the Purchaser's performance
hereunder.

            


    

     

    
      	
              12

            	
              Specific
      Indemnification

            


    

     

    
      	
              12.1

            	
              The
      Contractor shall fully indemnify, save harmless and defend the Purchaser
      from and against any and all damages in favor of any third parties
      (including, without limitation, Purchaser's shareholders, each of their
      subsidiaries, and the directors, officers, agents and employees of each of
      them) with respect to (a) failure of the Contractor or its agents to
      comply with the Law and Consents, (b) failure of the Contractor or its
      agents to make payments of taxes relating to the Contractor's income or
      other taxes required to be paid by the Contractor pursuant to this
      Contract without reimbursement or compensation hereunder or (c) any
      hazardous or toxic materials the Contractor or its agents have at any time
      brought on and caused the release thereof from the
      Site.  Purchaser shall fully indemnify, save harmless and defend
      the Contractor from and against any and all damages in favor of any third
      parties (including, without limitation, its shareholders and subsidiaries,
      and the directors, officers, agents and employees of each of them) with
      respect to (a) failure of the Purchaser or any of its agents to comply
      with Law and Consents, (b) failure of Purchaser or its agents to make
      timely payments of taxes relating to the Purchaser's income or other taxes
      required to be paid by the Purchaser hereunder, and (c) any hazardous or
      toxic materials the Purchaser, or any of its other agents have brought on
      and caused the release thereof from the Site or any other hazardous or
      toxic materials found on or under the
Site.

            


    


    
      
         


      

      
        32

        
          

        

      

      
         


      

    


    
      	
              13

            	
              Contractor's
      Obligations

            


    

     

    
      	
              13.1

            	
              Works to be
      Performed

            


    

     

    Except as
otherwise expressly set forth in this Contract, the Contractor shall perform or
cause to be performed all the Works, on a fixed price lumpsum basis in
accordance with the provisions of this Contract including:

     

    
      	
               
      

            	
              (i)

            	
              all
      engineering, design, procurement and manufacturing required for a
      completely engineered Biodiesel
Project;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              Transportation
      of plant & equipment up to Site, port of entry clearance and handling
      works in Malaysia required in connection with the completion of the
      Biodiesel Project;

            


    

     

    
      	
               
      

            	
              (iii)

            	
              construction
      infrastructure works, civil and structural construction, mechanical and
      electrical erection and installation works and commissioning, start-up and
      testing of the Biodiesel Project, including obtaining the relevant
      licensing and Consents,

            


    

     

    
      	
               
      

            	
              (iv)

            	
              provision
      of all necessary labour, construction fuels, chemicals, utilities, tools,
      Contractor's Equipment, supplies and other consumables and works (other
      than materials, equipment and supplies provided by Purchaser's suppliers
      or Purchaser all as outlined in Clause 11.8);
  and;

            


    

     

    
      	
               
      

            	
              (v)

            	
              making
      good any defects or deficiencies in the Works in accordance with the
      obligations of the Contractor pursuant to Clause 36
  hereof.

            


    

     

    The
Contractor shall be responsible for completing the Works and achieving the Final
Performance Acceptance by the agreed Time for Completion and demonstrating the
capability of the Biodiesel Project to achieve the Performance Guarantees
failing which the Contractor shall be liable for and pay to the Purchaser
applicable liquidated damages for delay and performance shortfall pursuant to
Clause 34 and 35, as the case may be.

     

    
      	
              13.2

            	
              Contractor to Provide
      all Labour and Personnel

            


    

     

    The
Contractor shall provide all labour and personnel required in connection with
the Works including without limitation:

     

    
      	
               
      

            	
              (a)

            	
              professional
      engineers licensed in accordance with any applicable licensing
      requirements in Malaysia;

            


    

     

    
      	
               
      

            	
              (b)

            	
              a
      project construction manager and structural, mechanical, electrical,
      instrumentation and control, civil, construction, start-up and training
      supervisors, provided that at least two of the seniormost personnel have
      had have had oil refining or processing plant experience and all others
      have had relevant plan experience and all of whom shall be reasonably
      proficient in the English language;

            


    

     

    
      	
               
      

            	
              (c)

            	
              a
      project manager or other engineer who shall be fully acquainted with the
      Project, shall be proficient in the English language and shall have the
      authority to administer this Contract on behalf of the
      Contractor;

            


    

     

    
      	
               
      

            	
              (d)

            	
              quality
      assurance personnel; and;

            


    

     

    
      	
               
      

            	
              (e)

            	
              all
      field construction labour, craftsmen and
  technicians.

            


    


    
      
         


      

      
        33

        
          

        

      

      
         


      

    


    Upon
Purchaser's request, the Contractor shall provide Purchaser with the resumes of
any key personnel employed in connection with the Project.  The
Contractor represents that these selected key personnel shall be permanently
assigned to the performance of the Works so long as they remain in the
employment of the Contractor.  Any replacement of these selected key
personnel shall be made with people of equivalent or better qualifications and
experience and the resumes of such personnel shall be provided to the Purchaser
for prior written approval.

     

    
      	
              13.3

            	
              Contractor's Consents
      and Other Construction
Consents

            


    

     

    The
Contractor shall at its own costs obtain and maintain in effect all applicable
Consents required in connection with the Contractor's performance of its
obligations hereunder (collectively, "Contractor Consents"), including without
limitation (a) licences, permits and registrations to do business and undertake
construction works in the jurisdictions where the Works are to be performed
(including making the necessary payment for the requisite levy pursuant to the
Construction Industry Development Board Act 1994), (b) Consents required to be
obtained with respect to the Works and (c) Consents necessary to move, transport
and deliver construction and other types of equipment and materials to and from
the Biodiesel Project Site.  The Contractor shall also at its own
costs obtain in the name of the Purchaser at the appropriate stage of
construction those applicable Consents required to be obtained in the
Purchaser's name in connection with the completion of the Biodiesel Project
(collectively, "Other Construction Consents").

     

    
      	
            	
              13.3.1

            	
              If
      the Contractor at any time becomes aware, whether as a result of notice
      from the Purchaser or otherwise, of any applicable the Contractor's
      Consent that the Contractor is required or recommended to obtain, the
      Contractor shall promptly give notice thereof to the Purchaser and the
      Contractor shall be responsible for obtaining such applicable Consent at
      the Contractor's cost, provided that if the need for such applicable
      Consent arises from a Change in Law, then provisions of Clause 27 shall
      apply.

            


    

     

    
      	
            	
              13.3.2

            	
              If
      the Contractor at any time becomes aware, whether as a result of notice
      from the Purchaser or otherwise, of any applicable Other Construction
      Consents that the Purchaser is required or recommended to obtain, the
      Contractor shall promptly give notice thereof to the Purchaser and the
      Contractor shall be responsible for obtaining such applicable Consent at
      the Contractor's cost.  If the need for such applicable Consent
      arises from a Change in Law, then provisions of Clause 27 shall
      apply.

            


    

     

    
      	
            	
              13.3.3

            	
              With
      respect to the Purchaser Consents, the Contractor shall provide support to
      the Purchaser, which support shall include: (a) attendance at meetings
      with the Purchaser and third Parties designated by the Purchaser, (b)
      assistance in preparation of response to inquiries by Governmental
      Instrumentality, (c) assistance in presentations at hearings of
      Governmental Instrumentality, (d) provision of all reasonably available
      information and documents required by the Purchaser in connection with
      obtaining any the Purchaser Consents and (e) such other assistance as the
      Purchaser may reasonably request from time to time.  With
      respect to Other Construction Consents, the Contractor shall assume
      primary responsibility for obtaining all such Other Construction Consents
      notwithstanding that such Other Construction Consents shall be obtained in
      the Purchaser's name.  Such primary responsibility shall
      include: (a) overall coordination of such Consenting requirements, (b)
      preparation of responses to inquiries by Governmental
      Instrumentality.  The Contractor shall keep the Purchaser
      advised of the status of pending applications for Other Construction
      Consents and shall promptly notify the Purchaser if the Contractor is
      experiencing any delay or difficulty in obtaining any Other Construction
      Consent.  If the Contractor at any time becomes aware of any
      applicable Other Construction Consent that the Purchaser is required or
      recommended to obtain, the Contractor shall promptly give notice thereof
      to the Purchaser.

            


    


    
      
         


      

      
        34

        
          

        

      

      
         


      

    


    
      	
              13.4

            	
              Contractor's Quality
      Assurance

            


    

     

    The
Contractor shall perform all inspection, expediting and quality surveillance as
are required for performance of the Works in accordance with the
Contract.  The Contractor's responsibilities under this Clause 13.4
shall include inspecting and testing all materials and equipment that comprise
or will comprise the Biodiesel Project or that are to be used in performance of
the Works, including the start-up and testing of the Biodiesel
Project.  The Contractor shall perform such detailed inspection and
testing of all work in progress at intervals appropriate to the stage of
construction or fabrication as is necessary to ensure that such work is
proceeding in accordance with this Contract and to protect the Purchaser against
defects and deficiencies in such work.  On the basis of such
inspections and testing, the Contractor shall keep the Purchaser regularly
informed of the progress and quality of all work and shall provide to the
Purchaser reports of any material deficiencies revealed through such inspections
and tests and of measures proposed by the Contractor to remedy such material
deficiencies.  The Purchaser or the Engineer shall have the option, at
the Purchaser's expense, of being present at all such inspections and
tests.  The Contractor shall give adequate notice in writing to the
Engineer and the Purchaser whenever any work is ready for inspection and
testing.  In the event that the progress and quality of the work is
not proceeding in accordance with this Contract, the Purchaser or the Engineer
shall be entitled to issue instructions to the Contractor or any Subcontractor
for the purpose of remedying such deficiencies, and in case of quality, if the
Contractor fails to do so, the Purchaser may reject any equipment and in that
situation, the Contractor shall make good such rejection either by replacement
or re-execution of such of these works.  The Purchaser shall have the
right to re-inspect any equipment though previously inspected / approved at the
Contractor's premises before and after the same are erected at
Site.  No test or inspection performed or verified or failed to be
performed or verified by the Purchaser or the Engineer hereunder shall be a
waiver of any of the Contractor's obligations hereunder or be construed as an
approval or acceptance of any of the Works hereunder.

     

    The
Contractor shall when instructed by the Engineer or the Purchaser expose any
part of the Works, open up for inspection any work covered up, or arrange for or
carry out any test of any equipment, materials or goods (whether or not already
incorporated into the Works) or of any executed work which the Engineer or the
Purchaser may in writing require and the cost of such opening up or testing
(together with the cost of reinstating and making good in consequence thereof)
shall be added to the Contract Price unless provided for in this Contract or
unless the inspection or test shows that the equipment, materials, goods or work
are not in accordance with this Contract in which case the Contractor shall bear
the cost described herein.

     

    
      	
              13.5

            	
              Contractor to Arrange
      Storage

            


    

     

    The
Contractor shall warehouse or otherwise provide appropriate storage (in
accordance with manufacturers' recommendations and the Site conditions) for all
materials, supplies and equipment required for performance of the Works, and
shall provide for the procurement or disposal of, as appropriate, all soil,
gravel and similar materials required for performance of the
Works.  All equipment shall be labelled with permanently affixed
durable nameplates, which shall include the manufacturers name, equipment model
number, equipment serial number and appropriate design parameters.  In
the event any such equipment is damaged, lost, stolen, destroyed or otherwise
impaired while in storage, the Contractor shall restore or replace such
materials and equipment affected, subject to Clause 43.

     

    
      	
              13.6

            	
              Contractor to furnish
      Performance Bond

            


    

     

    The
Contractor shall deposit with the Purchaser, the Performance Bond within 20
(twenty) days after the Execution Date.  The Performance Bond shall be
furnished by the Contractor, at its own cost, to guarantee the due, faithful and
complete performance of this Contract and the observance by the Contractor of
all stipulations, conditions and obligations on the part of the Contractor
herein contained.


    
      
         


      

      
        35

        
          

        

      

      
         


      

    


    The
Performance Bond shall remain valid and effective until Final Performance
Acceptance.  Where the validity period of the Performance Bond
delivered to the Purchaser pursuant to this Clause shall expire prior to the
date of Final Performance Acceptance, the Contractor shall renew and/or extend
the validity period of the Performance Bond as and when necessary to ensure that
the Performance Bond remains valid and enforceable until the date of Final
Performance Acceptance.

     

    If the
Performance Bond is not duly furnished by the Contractor to the Purchaser within
20 (twenty) days after the Execution Date, the Purchaser may at its option,
without prejudice to any rights or claims it may have against the Contractor,
within seven (7) days after the expiry of the said 20 (twenty) day period,
terminate this Contract forthwith by notice in writing to the
Contractor.  The Purchaser shall thereupon not be liable for any claim
or demand from the Contractor in respect of anything then already done or
furnished or in respect of any other matter whatsoever in connection with this
Contract and the Purchaser shall be entitled to be repaid by the Contractor the
Deposit and all expenses incurred by the Purchaser incidental to the obtaining
of new tenders in respect of the Works.

     

    Should
the Contractor fail to provide the Performance Bond in accordance with any
provisions of this Clause 13.6 or the Performance Bond cease to be in force or
effect at any time prior to Final Performance Acceptance, then, without
prejudice to any other rights the Purchaser may possess, the Purchaser may
deduct sums from any monies due or to become due to the Contractor under this
Contract up to a total sum equivalent to the amount required to be guaranteed by
the Performance Bond.  The Purchaser may retain or withhold such sums
until such time that a Performance Bond for the remaining period or requisite
amount is provided or the Performance Bond is no longer required under the
provisions of the Contract.

     

    
      	
              13.7

            	
              Contractor to Perform
      Tests on Completion

            


    

     

    The
Contractor shall perform, and re-perform if necessary, the Tests on Completion
in accordance with the provisions of the Contract in order to demonstrate
achievement of Final Performance Acceptance and the Performance
Guarantees.

     

    
      	
              13.8

            	
              Start-up and
      Commissioning

            


    

     

    The Works
shall include the commissioning of components, calibration of controls and
equipment, tuning, start-up and initial operation of the Biodiesel Project and
each portion thereof, all function and verification tests, and all other
commissioning, start-up and initial operation functions pertaining to the
Biodiesel Project, prior to Final Performance Acceptance of the Biodiesel
Project.

     

    
      	
              13.9

            	
              Contractor's
      Obligation to Provide first Fill of
  Consumables

            


    

     

    During
construction, testing and commissioning of the Biodiesel Project, the Contractor
shall arrange and pay for the first fill of all lubricants, chemicals and other
consumables relating to machineries and equipment necessary to enable the
Contractor to perform the Works.  The Contractor shall be responsible
for the cost of all spare parts used by the Contractor or any subcontractor
prior to Final Performance Acceptance of the Biodiesel Project provided that the
Purchaser shall purchase at its own cost, not later than Mechanical Completion,
the spare parts as recommended by the Contractor.


    
      
         


      

      
        36

        
          

        

      

      
         


      

    


    
      	
              13.10

            	
              Training

            


    

     

    At an
appropriate time prior to commissioning and start-up operations, the Contractor
shall at its own costs train the Purchaser's and its designee's personnel in the
operation and maintenance of the Biodiesel Project, including classroom,
on-the-job and safety training.  Such training shall be designed to
offer instruction and training to personnel with a reasonable level of
experience in oleochemical plant operations and shall be of such quality so as
to provide the Purchaser's or its designee's operation and maintenance personnel
with a working understanding of operational and maintenance aspects of the
Biodiesel Project.  The Contractor shall provide copies of appropriate
manuals and other written or electronic materials as part of the training
program, all of which materials shall be in the English language.  All
training personnel of the Contractor shall be fluent in English
language.

     

    Purchaser
and Contractor recognise that certain subcontractors (including Oiltek and
Axens) and suppliers of equipment to the Contractor have offered or may offer
certain training programs as part of their supply to the
Contractor.  The Contractor shall arrange to provide access to and
full benefit of such training to the personnel of the Purchaser and provide to
the Purchaser all such training manuals and materials provided by such
subcontractors and/or suppliers.  Provided that in relation to the
training for the CTER Section designed by Axens, the training shall be provided
as and to the extent of the training provided in accordance with the
TTA.

     

    
      	
              13.11

            	
              Access to the
      Purchaser and its Designees

            


    

     

    The
Contractor shall provide the Purchaser and its designees with reasonable access
at the Site and at Contractor's Site office at all times upon reasonable prior
notice and use its best efforts to arrange for Purchaser's (and its designees')
reasonable access to the engineering and fabrication premises of all
Subcontractors, including access to design and construction drawings, sufficient
to allow the Purchaser (or its designees) to inspect work being performed and to
monitor compliance by the Contractor and the Subcontractors with the terms
hereof.

     

    
      	
              13.12

            	
              Cleanliness

            


    

     

    The
Contractor shall keep the Site reasonably clean and otherwise free from
accumulation of waste materials, rubbish and other debris resulting from
performance of the Works.  The Contractor's labour camp and housing
colony shall be maintained to acceptable local standards of hygiene and shall be
kept reasonably free of debris, litter and malodor.  On or before the
last of the Final Performance Acceptance, the Contractor shall remove from the
Site area all petroleum, waste materials, rubbish and other debris, as well as
all tools, construction equipment, machinery and surplus material to which
Purchaser does not hold title, and shall leave the Site area in a neat, clean
and usable condition.  The Contractor shall remove, transport and
dispose of any hazardous material transported into the Site by the Contractor or
any Subcontractor, or created, used or handled as part of the Contractor's or
any Subcontractor's construction activities at the Site.  The
Contractor shall notify Purchaser immediately upon the discovery of the presence
of any hazardous material on, or the release of hazardous material on or from,
the Site.  All cleanup and disposal activities of the Contractor
(including, without limitation, the transportation and disposal of any hazardous
materials taken from the Biodiesel Project Site) shall be conducted in
accordance with all applicable Laws and applicable Consents.

     

    
      	
              13.13

            	
              Scheduling

            


    

     

    Within 30
(thirty) days after the Commencement Date, the Contractor shall deliver to
Purchaser a computer based bar chart (the "Detailed Schedule"), supplementing
the Programme as in Appendix 4.  The Detailed Schedule shall be
updated monthly or as otherwise directed by the Purchaser, and the Contractor
shall provide such updates to Purchaser with the monthly progress report or as
otherwise required by the Purchaser.  The monthly progress reports
together with the Detailed Schedule shall be provided to the Purchaser within 5
(five) days after the end of each calendar month.


    
      
         


      

      
        37

        
          

        

      

      
         


      

    


    
      	
              13.14

            	
              Contractor's
      Obligation to Pay Taxes

            


    

     

    Save for
the taxes to be paid by the Purchaser as defined in Clause 11.11 hereunder, the
Contractor shall pay all applicable taxes on the supplies and services performed
hereunder including all excise duties, concessional sales tax, service tax,
value added tax or state sales tax on construction materials and other taxes and
contributions imposed by any taxing authority upon the works or labour provided
hereunder, as well as taxes measured by the Contractor's receipts including
corporate taxes, personnel taxes, and any withholding taxes on payments to the
Contractor's personnel, subcontractors or agents hereunder.  The
Contractor shall furnish to the appropriate taxing authorities all required
information and reports in connection with such taxes, levies and assessments
and, if reasonably requested by Purchaser, promptly furnish copies of all such
information and reports to the Purchaser.  The Contractor shall
provide such information in a timely manner as the Purchaser shall require to
compute and pay all duties, taxes, levies and assessments for which the
Purchaser is responsible hereunder.

     

    
      	
              13.15

            	
              Security Arrangements
      by the Contractor

            


    

     

    The
Contractor shall provide a method, which shall be subject to the reasonable
approval of Purchaser, of checking the employees of the Contractor, its
Subcontractors and the Purchaser's suppliers and contractors in and out of the
areas in which the Works are to be performed hereunder.  The
Contractor shall be responsible for the security of the Biodiesel Project and
the Site at all times while the Works are being performed up to the date of
final Taking Over.  The Contractor shall coordinate such security with
the Purchaser's obligations pursuant to Clause 11.

     

    
      	
              13.16

            	
              Protection of
      Property

            


    

     

    The
Contractor shall be responsible to protect any and all parallel, converging and
intersecting electric lines and poles, telephone lines and poles, highways,
bridges, waterways, railroads, sewer lines, drainage ditches, culverts, fences,
walls, and any and all physical property of others from damage as a result of
its performance of the Works.  Without limiting the generality of the
foregoing, the Contractor shall maintain the access road to the Site and all
roads within the Site required by the Contractor in good repair.

     

    
      	
              13.17

            	
              Protection of Property
      by Sub-Contractors

            


    

     

    The
Contractor shall provide, and shall ensure that its Subcontractors provide,
proper and ample protection from damage or loss to the Biodiesel Project, the
Site, materials, construction equipment and tools during its performance of the
Works.

     

    
      	
              13.18

            	
              Royalties and Licence
      Fees

            


    

     

    The
Contractor shall pay all required royalties and licence fees with respect to
proprietary rights, intellectual property licences, trademarks, and copyrights
and shall procure, as required, the appropriate proprietary rights, intellectual
property licences, trademarks, and copyrights for materials, methods, processes
and systems of the Works.  The Contractor shall not incorporate into
the Biodiesel Project any materials, methods, processes or systems that involve
the use of any confidential information, intellectual property or proprietary
rights that the Purchaser does not have the right to use or that may result in
claims or suits against the Purchaser or Contractor arising out of claims of
infringement of any domestic or foreign patent rights, copyrights, trademarks or
other proprietary rights, or applications for any such rights, or use of
confidential information.


    
      
         


      

      
        38

        
          

        

      

      
         


      

    


    
      	
              13.19

            	
              Contractor's Labour
      Relations

            


    

     

    The
Contractor shall be responsible for all labour relations matters relating to the
Works and shall at all times use its best efforts to maintain harmony among the
personnel employed in connection with the Works and shall enter into all
necessary labour contracts with such personnel.  The Contractor shall
at all times comply with all applicable employment laws and labour welfare
legislation, and use its best efforts and judgment as an experienced contractor
to respect local customs and practices, and adopt and implement policies and
practices to avoid work stoppages, slowdowns, disputes, strikes and
lockouts.

     

    
      	
              13.20

            	
              Contractor's
      Obligation to Co-operate

            


    

     

    The
Contractor shall cooperate with the Purchaser and other contractors of the
Purchaser to coordinate Contractor's Works with the work and works of such other
contractors and shall in particular consult, liaise, co-operate and work in
harmony with those responsible for carrying out such other works in connection
with the Works, including the preparation of joint programmes, method
statements, co-ordination drawings and specifications.

     

    
      	
              13.21

            	
              Contractor's Standards
      of Performance

            


    

     

    Without
limiting any other provision of this Contract,

     

    
      	
               
      

            	
              (a)

            	
              The
      Contractor shall perform the Works hereunder in accordance with the
      standards of professional care, skill, diligence and competence generally
      accepted in the refining and Biodiesel industry applicable to engineering
      and construction and project management practices, all applicable Laws,
      all applicable Consents, Good Manufacturing
  Practice;

            


    

     

    
      	
               
      

            	
              (b)

            	
              the
      Biodiesel Project shall be constructed and erected in (i) a good
      workmanlike manner and (ii) in accordance with the Annexure (b) and (c) to
      the Articles of Agreement; and;

            


    

     

    
      	
               
      

            	
              (c)

            	
              The
      Contractor shall perform the Works such that the Works are sufficient and
      fit for purpose intended, shall meet the Performance Guarantees (or
      otherwise, the Minimum Acceptable Performance Criteria) and the use
      thereof by the Purchaser shall not cause it to be in violation of rules
      and regulations thereunder and that the Works shall be fully operational
      and be fit for purpose.

            


    

     

    
      	
              13.22

            	
              Contractor to Comply
      with Law and Consents

            


    

     

    The
Contractor shall comply with and shall cause the Biodiesel Project and all
components thereof (including, without limitation, the design, engineering,
construction and operation of the Biodiesel Project) to comply, be capable of
complying, with all applicable Laws and applicable Consents as they may be in
effect from time to time during the Contractor's performance hereunder up to the
date of Final Performance Acceptance of the Biodiesel Project (and thereafter
upon mutual agreement on terms and conditions).  The foregoing
obligation being without prejudice to the Contractor's right to a Variation for
any Change in Law or change in Consent.

     

    
      	
              13.23

            	
              Contractor's Health
      and Safety Programme

            


    

     

    The
Contractor shall implement and administer a safety and health program for the
Biodiesel Project which shall include: (a) development of a project safety
manual establishing the Contractor and its Subcontractor safety guidelines; (b)
conducting periodic safety meetings with its Subcontractors, (c) development,
implementation and enforcement of procedures for advising Subcontractors of, and
correction of, safety violations and deficiencies; and (d) taking of all other
actions necessary to provide a safe work environment in accordance with
applicable Laws and applicable Consents.


    
      
         


      

      
        39

        
          

        

      

      
         


      

    


    
      	
              13.24

            	
              Contractor's Insurance
      Obligations

            


    

     

    The
Contractor shall at its expense take out and maintain in effect, or cause to be
taken out and maintain in effect during the performance of the Contract, the
Contractor's insurances set forth in Clause 47.  Provided, however,
that at the option of the Purchaser, to be exercised within 30 (thirty) days of
the Execution Date, the Purchaser may opt for taking out and maintaining in
effect or cause to be taken out or maintain in effect, the Contractor's
insurance along with the Purchaser's insurance and in such an event, the premium
payable for the Contractor's insurance shall be deducted from the Contract Price
by effecting a reduction in Part C Price.

     

    The
Contractor shall extend to the Purchaser the benefit of the insurance cover
under the Professional Indemnity Cover obtained by itself and/or its
subcontractors for engineering and/or design of the Works and that such
Professional Indemnity Cover shall be for a minimum assured amount of the
equivalent of US$ 1 million (United States Dollars One Million
Only).

     

    
      	
              13.25

            	
              Contractor's
      Representations and
Warranties

            


    

     

    The
Contractor represents and warrants that:

     

    
      	
            	
              13.25.1

            	
              The
      Contractor is a company duly organized, validly existing and in good
      standing under the laws of Malaysia and the execution, delivery and
      performance of this Contract have been duly authorized by all requisite
      corporate action and will not violate any material provision of any
      Governmental Instrumentality, rule, regulation, statute or ordinance, or
      violate any provision of its charter or bylaws or any indenture, contract
      or instrument to which it is a party or by which it or its property may be
      bound or affected.

            


    

     

    
      	
            	
              13.25.2

            	
              The
      Contractor is not in violation of any applicable Law, or any other law,
      statute, order, rule or regulation promulgated, or judgment entered by any
      national, state or local Governmental Instrumentality that for either an
      individual violation or for a number of violations in the aggregate, would
      adversely affect its ability to perform its obligations under this
      Contract.

            


    

     

    
      	 	
              13.25.3

            	
              The
      Contractor is, or will be, the holder of all national, state, local or
      other applicable Consents required to conduct its
  business.

            


    

     

    
      	
            	
              13.25.4

            	
              The
      Contractor (a) has examined this Contract thoroughly and has had an
      opportunity to review it with legal counsel and become familiar with its
      terms; (b) by itself and through its Subcontractors, possesses the full
      and proper resources, experience, capabilities and qualifications to
      perform the Works including the requisite knowledge of and experience of
      the relevant legal, regulatory and labour laws in Malaysia; and (c) has
      had the opportunity to inspect the Site and to ascertain the location of
      the Works, the availability of facilities, the location and character of
      existing or adjacent structures.  The Contractor asserts that it
      is experienced in the engineering, design, fabrication and construction of
      electricity generating facilities similar to the Biodiesel
      Project.

            


    

     

    
      	 	
              13.25.5

            	
              The
      Contractor has obtained, or has no reason to expect that it will not in
      due course and without undue delay (subject to Force Majeure) obtain, all
      of the Contractor's Consents and Other Construction
    Consents.

            


    

     

    
      	 	
              13.25.6

            	
              The
      Contractor further warrants that it will notify the Purchaser if at any
      time prior to Final Performance Acceptance any of the foregoing
      representations and warranties ceases to be accurate and complete in any
      material respect.

            


    
 

    
      
         


      

      
        40

        
          

        

      

      
         


      

    

     

    
      	
            	
              13.25.7

            	
              The
      Contractor has had the opportunity to consult legal counsel and will
      observe the laws of any applicable jurisdiction that may be pertinent to
      engineering, design, construction and commissioning and assembly of the
      Biodiesel Project.

            


    

     

    
      	
              14

            	
              Programme

            


    

     

    
      	
              14.1

            	
              Programme

            


    

     

    Within 1
(one) month of the Execution Date, the Contractor shall submit to the Engineer a
more detailed programme for execution of the Works provided that such detailed
programme shall not have a delay in any Milestone as per the original
Programme.  Within 14 (fourteen) days thereafter, such detailed
programme shall be discussed and agreed (after any suitable modifications deemed
necessary) between the Contractor and the Engineer and shall replace the
original programme provided in Appendix 4 and shall be deemed to be the
Programme thereafter.

     

    The
Contractor shall execute the Works in accordance with the order and procedure
set out in and (subject to Clause 33) the dates shown upon the Programme and the
Payment Schedule.  The Programmes and the Payment Schedule shall not
be altered or amended without the Purchaser's prior consent, which, shall not be
unreasonably withheld.

     

    The
Contractor shall adhere to the order of procedure and method stated therein
unless the Contractor obtains the written consent of the Engineer to vary such
order or method.

     

    
      	
              14.2

            	
              Revision of
      Programme

            


    

     

    The
Purchaser will notify the Contractor if the rate of progress of the Works or any
part thereof is too slow to meet the Time for Completion and that the slowdown
in the rate of progress is not due to a circumstance for which the Contractor is
entitled to an extension of time under Clause 33.1.

     

    Following
receipt of such a notice the Contractor shall take such steps as may be
necessary and as the Purchaser may approve to remedy or mitigate the likely
delay, including revision of the Programme and the Payment Schedule and/or
carrying the Works at night or on public holidays.  The Contractor
shall not be entitled to any additional payment for taking such
steps.

     

    The
provisions of this Clause 14 shall be without prejudice to Clause
34.

     

    
      	
              14.3

            	
              Co-operation with
      other contractors

            


    

     

    The
Contractor acknowledges that the Purchaser will have other works, including
works at the Site or adjacent thereto, carried out by other contractors employed
by the Purchaser concurrently with the Works and that it is of paramount
importance that all works thereon are fully and completely coordinated in view
of their concurrent and sequential nature.  The Purchaser shall
provide to the Contractor at least 14 (fourteen) days' prior notice of the
commencement of works to be done by other contractors.  The Contractor
shall liaise with and cooperate fully with these other contractors for the
construction, commissioning and testing of the Biodiesel Project so as to
facilitate the coordination by the Engineer with such
contractors.  The Contractor shall, to the extent the Contractor's
schedule is not adversely impacted, provide to the Engineer for the purpose of
coordinating with the other contractors at least 30 (thirty) days prior notice
of the commencement of commissioning and validation work.  The
Contractor shall cooperate fully with the other contractors and the Purchaser in
all such aspects.

     

    
      
        
           


        

        
          41

          
            

          

        

        
           


        

      

    

     

    
      	
              15

            	
              Design
      Documentation

            


    

     

    
      	
              15.1

            	
              Design Documentation
      Discrepancies

            


    

     

    Where
there is any ambiguity, discrepancy or conflict within the Contractor's
Proposal, the Contractor shall inform the Engineer in writing of its proposed
amendment to remove the discrepancy and the Engineer shall resolve such
ambiguity, discrepancy or conflict or otherwise may accept the Contractor's
proposed amendment and the Contractor shall be obliged to comply with the
decision or acceptance by the Engineer without any Cost to the Purchaser nor any
delay to the completion of the Works.

     

    
      	
              15.2

            	
              Design Documentation
      for Approval

            


    

     

    
      	
               
      

            	
              (a)

            	
              The
      Contractor shall design the Works and prepare the Design Documentation in
      accordance with the SON and Contractor's Proposal.  The
      Contractor shall submit to the Engineer for
  approval:

            


    

     

    
      	
               
      

            	
              (i)

            	
              in
      good time, such Design Documentation as may be needed for
      approval;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              during
      the progress of the Works within such reasonable times as the Engineer may
      require such drawings of the general arrangement and details of the Works
      as may be specified in the Contract or as the Engineer may reasonably
      require.

            


    

     

    
      	
               
      

            	
              (b)

            	
              The
      Engineer shall signify its approval or disapproval thereof.  If
      it fails to do so within 10 (ten) Business Days of its receipt thereof (or
      such extended period), the Design Documentation shall be deemed to have
      been approved unless the Engineer notifies the Purchaser that it will
      require additional time to make its decision or comment on the Design
      Documentation, in which case, the Engineer shall be entitled to a further
      period of 7 (seven) days from the date of such notification to decide and
      comment on the Design
Documentation.

            


    

     

    
      	
               
      

            	
              (c)

            	
              Approved
      drawings, samples and models shall be signed or otherwise identified by
      the Engineer.

            


    

     

    
      	
               
      

            	
              (d)

            	
              Design
      Documentation, which the Engineer disapproves shall be modified to comply
      with its comments and requirements and re-submitted for its approval
      without delay which in any event shall be no later than 7 (seven) days
      from the Contractor's receipt of the Engineer's comments and
      requirements.  The provisions of Clause 15.2(b) shall apply in
      relation to the re-submission of such modified Design
      Documentation.

            


    

     

    
      	
              15.3

            	
              Design Documentation
      for Information

            


    

     

    The
Contractor shall submit to the Engineer for information;

     

    
      	
               
      

            	
              (a)

            	
              in
      good time such Design Documentation as may be called for information;
      and;

            


    

     

    
      	
               
      

            	
              (b)

            	
              such
      further Design Documentation as the Purchaser or the Engineer consider
      reasonably necessary from time to time to explain or amplify the
      Contractor's Proposal;

            


    

     

    
      	
              15.4

            	
              Works to be in
      Accordance with Approved Design
  Documentation

            


    

     

    The Works
shall be manufactured, constructed, carried out and completed strictly in
accordance with the Design Documentation approved by the Engineer and submitted
for the Engineer's information.  The Contractor shall not depart from
such Design Documentation except as provided in Clause 27.

     

    The
Contractor shall assume all liabilities and responsibilities for the design in
respect of the Works, in particular the functional adequacy, compliance with all
relevant statutory and authorities' requirements, structural integrity and
safety and any defect or inadequacy in the design. No:


    
      
         


      

      
        42

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (i)

            	
              failure
      to notify the Contractor that any of the Design Documentation is not
      acceptable;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              examination
      or lack of examination of the Design Documentation;
  and/or

            


    

     

    
      	
               
      

            	
              (iii)

            	
              comment,
      opinion or approval expressed in respect of the Design Documentation or
      otherwise in respect of the Works or lack of comment, opinion or approval
      in regard thereto,

            


    

     

    by the
Engineer, the Purchaser or its consultants, shall in any respect relieve or
absolve the Contractor from any obligations or liability under or in connection
with this Contract nor shall the Engineer, the Purchaser or its consultants be
liable to the Contractor in any way for any such failure, examination, comment,
opinion or approval.

     

    
      	
              15.5

            	
              Inspection of
      Drawings

            


    

     

    The
Engineer shall have the right at all reasonable times to inspect all drawings
and other information relating to any part of the Works.

     

    
      	
              15.6

            	
              Operating and
      Maintenance Manuals and
Instructions

            


    

     

    In any
event, at least 45 (forty five) days prior to the commencement of commissioning
of any Project Section, the Contractor shall supply for the Engineer's approval
2 (two) paper copies of draft comprehensive operating and maintenance manuals
and/or instructions for the relevant Project Section.  These shall be
in such detail as will enable the Purchaser to operate, maintain, dismantle,
reassemble, replace and adjust all parts of the relevant Project
Section.  The Contractor shall revise and amend such manuals and
instructions in accordance with any comments thereon by the Engineer (including
comments arising during commissioning) and supply 2 (two) paper copies and 5
(five) CD ROM copies, wherever possible, of such manuals and instructions as so
revised and amended together with two paper prints, and electronic copies of
each final as-built drawing, all prior to the date of Taking Over of the
relevant Project Section by the Purchaser.  The Works shall not be
considered to have been completed until such manuals, instructions and drawings
have been supplied to the Purchaser.

     

    
      	
              15.7

            	
              Copyright

            


    

     

    All
artistic and literary copyright and design right which may subsist in the Design
Documentation prepared specifically for the Works and title to and copyright in
the Standard Software shall vest in the Contractor.  The Contractor
hereby grants to the Purchaser a royalty free non-exclusive, irrevocable licence
to use the said Design Documentation and the Standard Software in the System for
all purposes in relation to the Works including for completing, maintaining,
adjusting, operating and repairing the Works.  The Purchaser shall be
entitled to assign the benefit of the licence to use the Design Documentation,
subject to the Contractor's prior consent if such licence is used for any
purpose not relating to the Works and the Contractor shall not unreasonably
withhold such consent.  The Purchaser shall be entitled to make such
copies of the Standard Software as it may reasonably require for its its own
internal use solely in connection with the Project without the payment of any
royalty to the Contractor and will ensure that all such copies acknowledge the
Contractor's copyright therein and in the product thereof.  The
Purchaser shall take all reasonable measures to safeguard the Contractor's
rights in the Standard Software.

     

    
      	
              15.8

            	
              Contractor's Use of
      Drawings and Information Supplied by Purchaser or
      Engineer

            


    

     

    Drawings
and information supplied by the Purchaser and the Engineer to the Contractor for
the purposes of the Contract shall remain the property of the
Purchaser.  They shall not without the consent of the Purchaser be
used, copied or communicated to a third party by the Contractor unless (i) such
distribution is strictly necessary for the purposes of this Contract and (ii)
the Contractor has caused the recipients of such drawings and information to
agree to the confidentiality provisions of this Contract.


    
      
         


      

      
        43

        
          

        

      

      
         


      

    

     

    
      	
              15.9

            	
              Contractor's
      Documentation

            


    

     

    The
Contractor shall not be required to provide to the Purchaser or the Engineer
shop drawings nor any of the Contractor's confidential manufacturing drawings,
designs or know-how nor the confidential details of manufacturing practices,
processes or operations other than as may be required for purposes of this
Contract, in any arbitration, dispute resolution, court proceedings or by the
Law.

     

    
      	
              16

            	
              Errors in Drawings,
      etc. Supplied by Contractor

            


    

     

    
      	
              16.1

            	
              Errors in Drawings,
      etc. Supplied by Contractor

            


    

     

    Notwithstanding
any approval by the Engineer of Design Documentation under Clause 15.2 or any
submission to the Engineer of any Design Documentation under Clause 15.3, the
Contractor shall be responsible for any failure thereof to comply with or
achieve the requirements of the SON for any errors, omissions or discrepancies
therein, and no comments or advice from the Engineer or the Purchaser, or the
lack thereof, (whether under Clause 15.2 or otherwise) in connection with any
such Design Documentation shall in any way relieve the Contractor from any of
its obligations under the Contract.

     

    The
Contractor shall bear any Costs or expense it may incur as a result of delay in
providing such Design Documentation or as a result of such failure thereof and
errors, omissions or discrepancies therein for which the Contractor is
responsible.

     

    The
Contractor shall at its own expense promptly carry out and bear the Cost of any
alterations or remedial work made necessary by such failure thereof and errors,
omissions or discrepancies for which the Contractor is responsible and modify
the Design Documentation accordingly.

     

    
      	
              16.2

            	
              Exceptions

            


    

     

    Notwithstanding
the provisions of Clause 16.1, the Contractor shall not be responsible for any
such errors, omissions or discrepancies as referred to therein to the extent
these are due to incorrect drawings, patterns, models or written information
supplied by the Purchaser or the Engineer and according to which the Contractor
is instructed specifically in writing by the Purchaser or the Engineer to design
the Works including the Purchaser's design criteria.  The Purchaser
shall at its own expense promptly carry out any alterations or remedial work to
the extent necessitated by such errors, omissions or discrepancies for which it
or the Engineer are responsible or at the Purchaser's option pay the Contractor
the Cost incurred by the Contractor in carrying out in accordance with the
Engineer's instructions any such alterations or remedial work to the extent so
necessitated.  Nothing herein shall be construed to affect or relieve
the obligation on the part of the Contractor to advise the Engineer and the
Purchaser of any errors or design or construction impracticabilities arising
from any drawings, patterns, models, information or instructions issued by the
Engineer or the Purchaser.

     

    
      	
              17

            	
              Contractor's
      Representatives

            


    

     

    
      	
              17.1

            	
              Contractor's
      Representatives

            


    

     

    Without
prejudice to Clause 13 the Contractor shall employ one or more competent
representatives whose name or names shall have been notified previously to the
Purchaser by the Contractor, to superintend the carrying out of the Works on the
Site.  The said representatives shall be present on the Site during
working hours, and any written orders or instructions, which, the Purchaser may
give to any one of the said representatives shall be deemed to have been given
to the Contractor.  The said representatives (together with such other
representatives of the Contractor as the Purchaser may require) shall attend all
meetings with the Purchaser and/or the Engineer at times and frequency
reasonably specified by the Purchaser.  The Contractor shall not
replace such representative without the prior written consent of the
Purchaser.


    
      
         


      

      
        44

        
          

        

      

      
         


      

    

     

    
      	
              17.2

            	
              Objection to
      Representatives

            


    

     

    The
Purchaser shall be entitled by notice to the Contractor to object to any
representative or person employed by the Contractor in the execution of or
otherwise about the Works who shall, in the reasonable opinion of the Purchaser,
misconduct himself or be incompetent or negligent, and the Contractor shall
forthwith remove such person from the Works and replace him within a reasonable
time, at its own cost, with a suitably qualified person.

     

    
      	
              17.3

            	
              Returns of
      Labour

            


    

     

    The
Contractor shall, if required by the Purchaser, send to the Purchaser a detailed
return of the supervisory staff and the numbers of labour in the categories from
time to time employed by the Contractor and its subcontractors upon the
Site.  The returns shall be provided in such form and with such
frequency as the Purchaser may reasonably require.

     

    
      	
              18

            	
              Site Services and
      Clearance

            


    

     

    
      	
              18.1

            	
              Fencing, Guarding,
      Lighting and Watching

            


    

     

    The
Contractor shall, subject to Clause 11, be responsible for proper fencing,
guarding, security, lighting and watching of all the Works on the Site until the
date referred to in the relevant Taking Over Certificate and for the proper
provision of temporary roadways, footways, guards and fences as far as may be
necessary for the Works on the Site and for the accommodation and protection of
the Purchasers and occupiers of adjacent property, the public and
others.

     

    
      	
              18.2

            	
              Not
      Used

            


    

     

    
      	
              18.3

            	
              Clearance of
      Site

            


    

     

    From time
to time during the progress of the Works except for any pre-existing materials
or materials brought on to the Site by the Purchaser or its other contractors,
the Contractor shall clear away and remove from the Site all surplus materials
and rubbish and, on completion, all Contractor's Equipment.  The
Contractor shall at all times leave the Site and the Works clean and in a safe
and workmanlike condition to the Engineer's reasonable
satisfaction.

     

    
      	
              18.4

            	
              Opportunities for
      Other Contractors

            


    

     

    
      	
            	
              18.4.1

            	
              The
      Contractor shall at no cost to the Purchaser (in accordance with the
      Purchaser's requirements) afford all reasonable opportunities, facilities,
      access, attendance upon and/or services to any public or private
      utilities, statutory authorities, any other contractors employed by the
      Purchaser and to the workmen of the Purchaser who may be employed in the
      execution on or near the Site of any work not included in the Contract or
      of any contract which the Purchaser may enter into in connection with or
      ancillary to the Works.

            


    

     

    
      	
            	
              18.4.2

            	
              The
      Contractor shall be deemed to have made adequate allowance in the Contract
      Price for its obligations to co-ordinate and co-operate as described in
      Clause 13.20 and 14.3 and for any interference with the progress of the
      Works caused by the concurrent and sequential work by the Purchaser and/or
      others and for all costs and expenses arising in relation to provision of
      such facilities, access, attendance and/or
  services.

            


    

     

    
      
         


      

      
        45

        
          

        

      

      
         


      

    

     

    
      	
            	
              18.4.3

            	
              The
      Contractor may at its sole discretion, on the written request of the
      Purchaser make available to any such other contractor or to the Purchaser
      any Contractor's Equipment or provide any other service of whatsoever
      nature to the extent that the Programme is not adversely affected, and
      subject to the provisions of Clause 18.4.4, the Purchaser shall pay to the
      Contractor in respect of such use or service such sum or sums as shall be
      agreed.

            


    

     

    
      	
            	
              18.4.4

            	
              If
      the Contractor considers that it has been requested or instructed to act
      in a manner which goes beyond its obligations as referred to in this
      Clause and if the Contractor considers that compliance with such request
      or instruction may entitle him to an extension of time and/or any Costs,
      it shall be a condition precedent to such entitlement that the Contractor
      shall have notified the Engineer in writing prior to taking any such
      action that it considers such an entitlement may arise from the provision
      of such facilities, access, attendance and/or services, giving full
      particulars of the nature, extent and estimated duration of the delays
      and/or Costs which would be incurred, and that following receipt of such
      notice, the Engineer shall have instructed the Contractor in writing to
      take such action.

            


    

     

    
      	
              19

            	
              Not
      Used

            


    

     

    
      	
              20

            	
              Safety

            


    

     

    The
Contractor shall be responsible for the adequacy, security, stability and safety
of its operations on the Site and shall comply with any Law and the Purchaser's
safety regulations applicable at the Site unless specifically authorised by the
Engineer to depart therefrom in any particular circumstances.

     

    
      	
              21

            	
              Extraordinary
      Traffic

            


    

     

    
      	
              21.1

            	
              Prevention of Damage
      Caused by Traffic

            


    

     

    The
Contractor shall use every reasonable means to prevent damage to any of the
public roads, including but not limited to private roads, or bridges, culverts,
drains and overpasses, on the routes to the Site by any traffic of the
Contractor or any of its sub-contractors.

     

    
      	
              21.2

            	
              Protection of Highways
      and Bridges

            


    

     

    The
Contractor shall at its own cost take all necessary steps to protect or
strengthen any public roads, including but not limited to private roads,
bridges, culverts, drains and overpasses, on, along or over which the Contractor
intends to move any load of the Works or of Contractor's Equipment so as to
prevent damage thereto.

     

    
      	
              21.3

            	
              Claims

            


    

     

    The
Contractor shall indemnify the Purchaser against any claim in respect of damage
or injury to public roads and private roads including but not limited to
bridges, culverts, drains and overpasses, arising out of the execution of the
Works and in respect of all proceedings, damages, Costs, charges and expenses in
relation thereto.

     

    
      	
              21.4

            	
              Waterborne
      Transport

            


    

     

    If the
Contractor uses waterborne transport the foregoing provisions of the Clause 21
shall be construed as though the word "public road" included a lock, dock, sea
wall or other structure relating to a waterway.

     

    
      
        
           


        

        
          46

          
            

          

        

        
           


        

      

    

     

    
      	
              22

            	
              Setting
      Out

            


    

     

    
      	
              22.1

            	
              Setting
      Out

            


    

    
    

    The
Contractor shall be responsible for the true and accurate setting out of the
Works.  If at any time during the execution of the Works any error
appears in the positions, levels, dimensions or alignment of the Works, the
Contractor shall rectify the error at its own cost.  The checking of
any setting out or of any line or level by the Engineer or any assistance
rendered by the Engineer in this regard shall not relieve the Contractor of its
responsibility under this Clause.

     

    
      	
              22.2

            	
              Benchmarks
      etc.

            


    

     

    The
Contractor shall protect and preserve bench marks, sight rails, pegs and other
things used in setting out the Works.

     

    
      	
              23

            	
              Inspection and Testing
      of Plant

            


    

     

    
      	
              23.1

            	
              Inspection and Testing
      of Plant before delivery

            


    

     

    The
Engineer shall be entitled, with or without the presence of the Purchaser, at
all reasonable times during manufacture to inspect, witness the test and examine
on the Site or on the Contractor's premises the materials and workmanship and
performances of all Plant to be supplied under the Contract.  If part
of the Plant is being manufactured on other premises the Contractor shall obtain
for the Purchaser and the Engineer permission to inspect, witness the test and
examine as if the Plant were being manufactured on the Contractor's
premises.  Such inspection, witnessing the test and examination shall
not relieve the Contractor from any of its obligations under the
Contract.  The Purchaser, Engineer and their representatives'
attendance at any inspection shall be at their own cost.

     

    
      	
              23.2

            	
              Dates of Tests and
      Inspections

            


    

     

    Within 1
(one) month after the Commencement Date, the Contractor shall submit to the
Engineer inspection plan and procedures, and the Parties shall agree to the plan
including witness points.  The Contractor shall notify the Engineer
(with a copy to the Purchaser) 3 (three) days prior to and agree with the
Engineer the date on and the place at which any part of the Plant will be ready
for testing or inspection in accordance with the agreed inspection
plan.  The Engineer shall give the Contractor at least 24
(twenty-four) hours' notice of its intention to attend the test or
inspection.  If the Engineer shall not attend at the place and on the
date agreed, the Contractor may proceed with the test or inspection which shall
be deemed to have been made in the Engineer's presence.  The
Contractor shall forthwith forward to the Engineer duly certified copies of the
results of such tests or inspections.  The Engineer shall be the
responsible for co-ordinating the attendance of the Purchaser at the agreed
witness points.

     

    
      	
              23.3

            	
              Services for Tests and
      Inspections

            


    

     

    Where the
Contract provides for tests or inspection on the premises of the Contractor or
of any sub-contractor or on any other premises, the Contractor shall provide
free of charge such assistance, labour, materials, electricity, fuel, stores,
apparatus and instruments as may be requisite and as may reasonably be demanded
to carry out such test or inspection.

     

    
      	
              23.4

            	
              Failure on Tests or
      Inspections

            


    

     

    If after
inspecting, examining or testing any Plant part, the Engineer, as may be
reasonable in all the circumstances, shall decide that such Plant part is
defective or not in accordance with the Contract, it may reject the said Plant
part by giving to the Contractor within reasonable period after such inspection
notice of such rejection, stating therein the grounds upon which the said
rejection is based.  Following any such rejection the Contractor shall
make good or otherwise repair or replace the rejected Plant part and resubmit
the same for test or inspection in accordance with this Clause
23.  The Costs incurred by the Contractor in repairing or replacing
the defective Plant part (and re-submitting the same for test or inspection)
shall be borne by the Contractor and the Cost to the Purchaser or the Engineer
in attending such re-testing or inspection in excess of three re-tests /
inspections shall be recovered from the Contractor as a debt payable to the
Purchaser on demand or shall be deducted from the Contract
Price.


    
      
         


      

      
        47

        
          

        

      

      
         


      

    

     

    
      	
              23.5

            	
              Effect on Contractor's
      Obligations

            


    

     

    No
inspection, examination or testing by the Purchaser or the Engineer of any Plant
part, or the rejection and re-testing of the same as referred to in this Clause
23 shall in any way relieve the Contractor of any of its obligations under the
Contract.

     

    
      	
              24

            	
              Delivery

            


    

     

    The
Contractor shall notify the Engineer of its intention to deliver any Plant part
or Contractor's Equipment to the Site.  All equipment and materials
furnished under the Contract and arriving at the Site shall be promptly
received, unloaded, transported and stored in the storage space by the
Contractor.  The Contractor shall be responsible for examining all
shipments and deliveries, and notifying the Engineer immediately of any damage,
discrepancy, shortages, etc. for the Engineer's information
only.  However, the Contractor shall be responsible for any shortages
or damages in transit, handling and/or in storage and erection of equipment and
materials at the Site.  Any demurrage, wharfage and other such charges
claimed by the transporters for reasons not attributable to the Purchaser
pursuant to its obligations under Clause 11 shall be to the account of the
Contractor.

     

    
      	
              25

            	
              Suspension of Works,
      Delivery or Erection

            


    

     

    
      	
              25.1

            	
              Instructions to
      Suspend

            


    

     

    The
Purchaser may at any time instruct the Contractor to suspend the progress of the
Works.  The Contractor shall during any such suspension store,
preserve, protect and otherwise secure the Works and/or Plant affected and
insure the same to the extent required by the Purchaser.  Unless
otherwise instructed by the Purchaser, the Contractor shall during any such
suspension affecting the progress of the Works on the Site maintain its staff,
labour and the Contractor's Equipment on or near the Site ready to proceed with
the Works upon receipt of the Purchaser's further instructions.  The
Contractor shall not be entitled to recover any such additional Cost unless
within 28 (twenty-eight) days after receipt of the order to suspend progress of
the Works, the Contractor gives to the Purchaser notice in writing of its
intention to make such claim.

     

    
      	
              25.2

            	
              Contractor's
      Expenses

            


    

     

    Subject
to Clause 25.4, the additional Cost incurred by the Contractor in complying with
the provisions of and the Purchaser's instructions under Clause 25.1
(Instructions to Suspend) shall be assessed by the Engineer, as may be
reasonable in all the circumstances, and added to the Contract
Price.  The Contractor shall minimize such additional
Cost.

     

    
      	
              25.3

            	
              Expense Incurred due
      to Suspension

            


    

     

    The
Contractor shall be entitled to payment for any part of the Works, which or the
delivery of which at the Normal Delivery Date (as defined below) has been
suspended for more than 14 (fourteen) days as a result of the Purchaser giving
instructions under Clause 25.1, and the Contract Value of such Works as at the
date of suspension shall be included in an interim certificate of
payment.  Normal Delivery Date means the time for delivery of the
relevant Plant specified in the Programme, or if no time is specified, at the
time appropriate for it to be delivered having regard to the Time of
Completion.  The Contractor shall not be entitled to a certificate of
payment until it has sufficiently marked such Works as the Purchaser's property
under Clause 37.3 and has insured it in accordance with Clause 47.1 as if the
Plant were on Site.


    
      
         


      

      
        48

        
          

        

      

      
         


      

    

     

    
      	
              25.4

            	
              Default by
      Contractor

            


    

     

    The
Contractor shall have no entitlement under Clauses 25.2 and 25.3 if suspension
is necessary:

     

    
      	
               
      

            	
              (i)

            	
              by
      reason of default on the part of the Contractor;
  or

            


    

     

    
      	
               
      

            	
              (ii)

            	
              otherwise
      for the proper execution or the safety of the Works, except to the extent
      such necessity results from any act or default of the Engineer or the
      Purchaser or the occurrence of any of the Purchaser's Risks, as such term
      is defined in Clause 45 hereof.

            


    

     

    
      	
              25.5

            	
              Resumption of Work,
      Delivery or Erection

            


    

     

    At any
time following a suspension under Clause 25.1 the Purchaser may give notice to
the Contractor to proceed with the Works, which are the subject of a
suspension.  Not later than 30 (thirty) days after the receipt of such
notice to resume the suspended part of the Works, the Contractor shall submit a
Request for Variation to the Purchaser its request for additional Cost due to
such suspension in accordance with Clause 27 and its request for extension of
Time for Completion in accordance with Clause 33.  The extension of
Time for Completion shall also take into account a reasonable period for
resumption.

     

    If any
such suspension continues for more than 14 (fourteen) days and the suspension is
not necessitated by the reasons stated in Clause 25.4 the Contractor may by
notice to the Purchaser elect to treat the suspension as a Variation instructed
by the Purchaser under Clause 27 of the part affected thereby.  Upon
such notice to the Purchaser by the Contractor, the risk of loss or damage to
the suspended portion of the Works shall pass to the Purchaser.  If
any suspension affects the whole of the Works and continues for 180 (one hundred
eighty)days, the Contractor may terminate the Contract in which event it shall
be entitled to be paid in accordance with Clause 46.3.1(b).  The
Purchaser shall reserve the right to elect at its discretion to treat the
suspension as a Variation of part of the Works or to terminate the
Contract.

     

    Upon
receipt of notice to proceed, the Contractor shall examine the Works affected by
the suspension.  The Contractor shall make good any deterioration or
defect in or loss of the Works that may have occurred during
suspension.  The Cost incurred by the Contractor in making such
examination and of making good and resuming work shall be assessed by the
Engineer and added to the Contract Price unless the suspension was necessitated
by any of the reasons stated in Clause 25.4, in which event such Cost shall be
borne by the Contractor.  The Contractor shall not be entitled to be
paid any Cost incurred in making good any deterioration, defect or loss caused
by defective materials or workmanship of or by the Contractor's failure to
comply with any instructions of the Purchaser under Clause 25.1 (Instructions to
Suspend).

     

    
      	
              26

            	
              Defects Before Taking
      Over

            


    

     

    Without
prejudice to any of the Contractor's obligations under the Contract or to Clause
23, if, in respect of any part of the Works not the subject of a Taking Over
Certificate, the Engineer shall at any time:

     

    
      	
               
      

            	
              (a)

            	
              decide
      that any work done or Plant, and or part thereof supplied or materials
      used by the Contractor or its sub-contractors is or are defective or not
      in accordance with the Contract, or that such part is defective or does
      not fulfil the requirements of the Contract (all such matters being
      hereinafter in this Clause called "defects");
  and

            


    


    
      
         


      

      
        49

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (b)

            	
              as
      soon as reasonably practicable notify the Contractor of the said decision,
      specifying particulars of the defects alleged and of where the same are
      alleged to exist or to have
occurred;

            


    

     

    the
Purchaser shall so far as may be necessary place the Plant, and or part thereof
at the Contractor's disposal and the Contractor shall with all speed and at its
own expense, make good the defects so specified within 14 (fourteen) days from
date of receipt by the Contractor of the notification thereof.  If the
Contractor fails so to do within of the requisite period, the Purchaser may,
take such steps as may in all the circumstances be reasonable to make good such
defects and the Cost to the Purchaser of such steps shall be borne by the
Contractor and paid on demand or deducted from the Contract
Price.  All Plant and or part thereof provided by the Purchaser to
replace the defective Plant, and or part thereof shall so far as is practicable
comply with the Contract.  The Contractor shall, where practicable, be
entitled at its own expense to remove and retain all Plant and or part thereof
that the Purchaser may have replaced.  Nothing contained in this
Clause shall affect the right of the Purchaser to liquidated damages under
Clause 28 and 34 or any other right or remedy which may be available under the
Contract.

     

    
      	
              27

            	
              Variations

            


    

     

    
      	
              27.1

            	
              Variations: Meaning of
      Variations

            


    

     

    The
Purchaser may, from time to time and at any time, request
changes.  Changes requested by the Purchaser may include (but need not
be limited to) adding, deleting or modifying relevant portions of the Contract,
the Works, the Plant, the Programme, the Payment Schedule, or the method of
performing the Works, including suspending, accelerating or terminating the
Works or portions thereof.  Any request by the Purchaser for a change
shall be in writing and shall be sufficiently definite and detailed to give the
Contractor an adequate basis on which to prepare a Preliminary Variation
pursuant to Clause 27.2.

     

    The
Contractor may from time to time and at any time suggest a change to the
Purchaser.  Any such suggestion shall be made in writing and shall
include the reason for the request and such associated information and data
(including drawings, plans, charts, specifications, patterns, samples or
calculations) as may reasonably be required to support the suggested
change.  Upon review of such suggestion the Purchaser may, at its sole
discretion and without any obligation or liability to the Contractor, either
reject such change or request the Contractor to prepare a Preliminary Variation
in accordance with Clause 27.2 with respect to all or a portion of such
change.  In addition, if the Contractor reasonably believes that an
instruction received from the Purchaser or the Engineer constitutes a change in
the scope of the Works, then within 14 (fourteen) days from date of receipt of
such instruction, the Contractor shall deliver to the Purchaser a request for
change ("Request for Variation").  The Purchaser shall within 14
(fourteen) days of receipt of such Request for Variation (i) request the
Contractor to prepare a Preliminary Variation in accordance with Clause 27.2 or
(ii) deny the Contractor's Request for Variation or (iii) withdraw such
instruction.  If the Purchaser denies the Contractor's Request for
Variation or if the Purchaser fails to respond within 14 (fourteen) days, either
the Contractor or the Purchaser may commence procedures under Clause 50, subject
always to Clause 27.4.  However the Parties also agree that the
Contractor shall be entitled to a Variation if the need for such a Variation is
due to any the Purchaser caused delay.

     

    
      	
              27.2

            	
              Purchaser's
      Instructions to Vary

            


    

     

    Upon
receipt of the Purchaser's request for a change or for a Preliminary Variation,
the Contractor shall prepare a Preliminary Variation and furnish it to the
Purchaser within 14 days or any other period agreed by both Parties following
receipt of the Purchaser's request.  If the Contractor has objections
or reservations, or is of the opinion that any such change is likely to prevent
or prejudice the Contractor from fulfilling any of its obligations under the
Contract, it shall notify the Purchaser thereof at the time of its furnishing of
the Preliminary Variation.  The Contractor also shall notify the
Purchaser if, in the Contractor's opinion, the change will involve an addition
to or deduction from the Contract Price, or any extension of the Time for
Completion and if so, give its quotation of the amount thereof and/or estimate
of the length of extension of time.


    
      
         


      

      
        50

        
          

        

      

      
         


      

    

     

    The
Contractor may also suggest minor changes, which do not affect the Contract
Price, the Programme, performance of the Plant, or operational efficiency or
maintenance and repair costs of the Plant.  Such changes are effective
only upon written approval by the Purchaser that is clearly designated "Approval
of Minor Change".  The Purchaser shall not unreasonably withhold its
approval of such minor changes.

     

    
      	
              27.3

            	
              Valuation of
      Variations

            


    

     

    Before
either Party acts on a Preliminary Variation, the Parties shall have executed a
written Variation (which may be the Preliminary Variation signed by both
Parties) incorporating the changes in question and providing for any change in
any Milestones, any change in the Programme or other dates for completion or
delivery, any increase or reduction in the Contract Price and any change in the
scope of work, the Contractor's standards of performance or warranties, the
technical soundness of the Works or other provisions of the
Contract.  Any adjustment of the Contract Price shall take into
account, among other things, any elimination or avoidance of work to be
performed resulting from the changes in the scope of work and from assistance
given by the Purchaser.  Each Variation shall, if appropriate, also
include any necessary consequential changes to the Payment Schedule in order to
allocate such change equitably over the remaining instalments for payment of the
Contract Price.  Execution of a Variation shall indicate each Party's
full, final and unconditional agreement with the matters prescribed in such
Variation.

     

    
      	
              27.4

            	
              Disputed
      Variations

            


    

     

    If the
Purchaser and the Contractor fail to agree on a proposed change, or on whether
an action requested by the Purchaser is within the scope of work or should be
the subject of a Variation, or on the effects of a change upon the Contract
Price, the Programme or any of the other matters referred to in Clause 27.3 and
the requesting Party does not withdraw its request, the Purchaser may
nevertheless require the Contractor to perform any change requested by the
Purchaser pending resolution of the dispute by delivering to the Contractor a
Variation signed by the Purchaser and agreeing to pay any undisputed amounts of
the Contract Price in connection therewith, unless the aggregate adjustment of
the Contract Price in dispute with respect to such change and all other prior
changes to the extent then in dispute would exceed Malaysian Ringgit 500,000
(Five Hundred Thousand Only) in the aggregate in which event the Contractor
shall be obliged to proceed with the performance of the disputed obligations
only after the resolution of the dispute or may direct the Contractor to perform
such other action pending resolution of the dispute.  The Contractor's
performance of the change or other action as so directed shall not prejudice
either Party's position regarding the effects of such change or other
action.  Where the Contractor is instructed to proceed with a
Variation pending resolution of the dispute, the Contractor shall keep
contemporary records of the Cost of making the changes and of time expended
thereon.  Such records shall be open to inspection by the Purchaser at
all reasonable times.

     

    
      	
              27.5

            	
              Exceptions

            


    

     

    In
addition to minor changes under Clause 27.2 (but without limiting Clause 27.6),
the following shall not be considered under any circumstances as changes, or of
themselves be considered the basis for any adjustment of the Contract
Price:


    
      
         


      

      
        51

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (a)

            	
              any
      escalation in the cost of the Works or material or Contractor's Equipment
      or labour;

            


    

     

    
      	
               
      

            	
              (b)

            	
              escalation
      in the cost of labour or other increase in manpower hourly
      rates;

            


    

     

    
      	
               
      

            	
              (c)

            	
              currency
      fluctuations in respect of costs included within the Contract
      Price;

            


    

     

    
      	
               
      

            	
              (d)

            	
              any
      costs incurred by the Contractor in providing design, engineering,
      procurement, construction, startup, testing and commissioning services and
      all Plant and materials (and components thereof) and Contractor's
      Equipment, and any other additional items not specifically described in
      the Contract if (i) it reasonably may be inferred in accordance with the
      Contract and the standards employed by leading international contractors
      in the Biodiesel plant construction industry (including without limitation
      considerations and factors specific to the location and size of the Plant)
      that the providing of such additional items was intended as part of the
      scope of work or (ii) the providing of such additional items is necessary
      in order for the Contractor to satisfy its obligations under the Contract;
      and

            


    

     

    
      	
               
      

            	
              (e)

            	
              any
      additional costs incurred by the Contractor by reason of any instruction
      which has arisen due to or is necessitated by and/or any changes intended
      to cure any default of and/or breach of Contract by the
      Contractor.

            


    

     

    
      	
              27.6

            	
              Notice and
      Confirmation of Variations

            


    

     

    Notwithstanding
any other provision to the contrary set forth in this Contract, the Contractor
shall not be entitled to any adjustments in the Contract Price unless each such
adjustment shall have been approved pursuant to a Variation under this Clause
27.  Should any circumstance arise under this Contract providing the
Contractor with an express right to adjust or request adjustment of the Contract
Price, the Contractor shall request a Variation in accordance with this
Clause.  The Contractor shall not be entitled to a Variation in
respect of any event or circumstance to which the provisions of this Clause
apply unless it shall have complied strictly with the terms hereof, and in
default of strict compliance, the Contractor shall be deemed to have waived all
rights, claims and damages to which it might otherwise have become entitled
pursuant to the Conditions or as a result of any breach of duty by the Purchaser
or the Engineer.  For the avoidance of doubt, the provision of the
Request for Variation and Preliminary Variation by the Contractor within the
respective periods required under this Clause shall be a condition precedent to
the Contractor's entitlement to Variation.

     

    
      	
              27.7

            	
              Form of Variation
      Order

            


    

     

    The
Variation order shall be in the form set out at Appendix 17.

     

    
      	
              28

            	
              Tests on
      Completion

            


    

     

    Subsequent
to the achievement of Mechanical Completion, the Contractor shall carry out the
Tests on Completion in accordance with the procedures and standards agreed
between the Contractor and the Engineer within 1 (one) month of the Commencement
Date and which are commonly used in the Biodiesel and oleochemicals
industry.

     

    Notwithstanding
anything else stated herein to the contrary, Tests on Completion may be repeated
up to a period of 30 (thirty) days from the date of the first Tests on
Completion and that any tests conducted after the first three Tests on
Completion shall be at the cost of the Contractor.

     

    
      
        
           


        

        
          52

          
            

          

        

        
           


        

      

    

     

    
      	
              28.1

            	
              Notice of Tests on
      Completion

            


    

     

    Beginning
21 (twenty one) days prior to the scheduled test date as per the Programme or 21
(twenty one) days prior to scheduled date of Mechanical Completion, the Parties
shall consult regularly regarding the scheduled test date.  During
this period the Contractor may reschedule the scheduled test date, to a date not
later than two (2) weeks after the original scheduled test date, upon 7 (seven)
days' prior notice to the Purchaser and the Engineer and the consultation
between the Parties shall continue for these 2 (two) weeks.

     

    Any
rescheduling of the scheduled test date, to a date after the period set forth in
the preceding paragraph shall require two (2) weeks prior notice from the
Contractor and shall be subject to the prior agreement of the Purchaser and the
Engineer.  All provisions set forth herein in the preceding paragraphs
shall apply to any rescheduling of the scheduled test
date.  Consistent with these provisions, the Purchaser shall confirm
the rescheduling of the scheduled test date, for co-ordination.

     

    A test
report shall be prepared and submitted to the Purchaser and the Engineer by the
Contractor promptly after completion of each Test on Completion but no later
than 7 (seven) days after receipt of the feedstock analysis.  The
report shall include data as recorded and adjusted to the design conditions
stipulated for the Performance Guarantees as specified in Appendix
7.

     

    
      	
              28.2

            	
              Delayed Tests on
      Completion

            


    

     

    If the
Tests on Completion are not carried out by the Contractor on the scheduled test
dates or such other test dates as rescheduled in accordance with Clause 28.1,
the Engineer may, by notice, call upon the Contractor to carry them out within
21 (twenty one) days from the receipt of the said notice.  The
Contractor shall thereupon carry out the Tests on Completion within such period
upon 7 (seven) days prior notice to the Engineer and the
Purchaser.  If the Contractor fails to carry out the Tests on
Completion within the aforesaid period, the Engineer and the Contractor shall
consult and agree, within 7(seven) days after the expiry of such period on an
alternative date for the carrying out of the Tests on Completion.

     

    
      	
              28.3

            	
              Repetition of Tests on
      Completion

            


    

     

    Subject
to Clause 28.9, if any part of the Works fails to pass the Tests on Completion
after the first three Tests on Completion, the Tests on Completion shall be
repeated by the Contractor at its own costs within such reasonable time as shall
be specified by the Engineer upon the same terms and conditions.

     

    
      	
              28.4

            	
              Not
      Used

            


    

     

    
      	
              28.5

            	
              Not
      Used

            


    

     

    
      	
              28.6

            	
              Operation
      Responsibilities

            


    

     

    The
Biodiesel Project shall be operated by the Contractor during the carrying out of
the Tests on Completion in conjunction with the personnel of the Purchaser and
the Contractor shall be entirely responsible for such operation.

     

    
      	
              28.7

            	
              Determination of
      Results of Tests

            


    

     

    The
results of Tests on Completion (including any repetition thereof) shall be
determined and interpreted in accordance with applicable ASTM/ACOS or other
relevant standards and so agreed pursuant to Clause 28 above.

     

    
      	
              28.8

            	
              Contractor's
      Bonus

            


    

     

    If the
Contractor completes the Tests on Completion earlier than the Time for
Completion, the results of which are acceptable and to the satisfaction of the
Purchaser, and
the Final Performance Acceptance is achieved in full, the Purchaser shall make a
payment to the Contractor, of which amount is calculated at the rate as stated
in Appendix 2 as the Bonus.


    
      
         


      

      
        53

        
          

        

      

      
         


      

    

     

    
      	
              28.9

            	
              Consequences of
      Failure to Achieve Minimum Acceptable Performance
      Criteria

            


    

     

    If the
performance of the Works, based on results of the Tests on Completion, fail to
achieve the Minimum Acceptable Performance Criteria by the Time for Completion
or such other date as may be agreed to by the Purchaser, then the Purchaser, at
its discretion, shall be entitled to:

     

    
      	
               
      

            	
              (i)

            	
              order
      further repetition of the Tests on Completion at the Contractor's costs;
      or

            


    

     

    
      	
               
      

            	
              (ii)

            	
              accept
      and take over the Plant subject to such reduction in the Contract Price as
      may be fair and reasonable having regard to the diminution in value of the
      Plant to Purchaser by reason by its non-achievement of the Minimum
      Acceptable Performance Criteria; or

            


    

     

    
      	
               
      

            	
              (iii)

            	
              require
      the Contractor to make such adjustments or modifications, , at the
      Contractor's costs, as the Contractor may deem necessary to meet the
      Minimum Acceptable Performance Criteria within a period of time as may be
      specified by the Purchaser at the Purchaser's sole
    discretion.

            


    

     

    
      	
              29

            	
              Taking
      Over

            


    

     

    
      	
              29.1

            	
              Taking Over or Final
      Performance Acceptance

            


    

     

    "Final
Performance Acceptance" or "Taking Over" shall be achieved hereunder when each
of the following criteria is satisfied:

     

    
      	
               
      

            	
              (a)

            	
              the
      Contractor has concluded all Tests on Completion and the results of which
      demonstrate the achievement of the Performance Guarantees; or where the
      results thereof indicate that the performance of the Works falls short of
      the Performance Guarantees but satisfies the Minimum Acceptable
      Performance Criteria;

            


    

     

    
      	
               
      

            	
              (b)

            	
              the
      complete performance by the Contractor of the Works on the Biodiesel
      Project under this Contract, except for any remaining obligations, and all
      portions of the Biodiesel Project can be safely placed in operation
      immediately for their intended purposes of the production of Biodiesel,
      Glycerine and Pretreated Feedstock in accordance with all applicable Laws
      and applicable Consents;

            


    

     

    
      	
               
      

            	
              (c)

            	
              all
      portions of the Project, have been completed and can be safely placed in
      operation immediately for their intended purposes in accordance with
      applicable Laws and applicable
Consents;

            


    

     

    
      	
               
      

            	
              (d)

            	
              the
      Project has been demonstrated to be capable of delivering Biodiesel,
      Pretreated Feedstock and Glycerine, as the case may be, continuously at
      the minimum levels specified in Minimum Acceptable Performance
      Criteria;

            


    

     

    
      	
               
      

            	
              (e)

            	
              the
      Contractor has given to the Purchaser an undertaking to complete any
      outstanding work or make good any defective works listed on the punch list
      as agreed to between the Parties;
and

            


    

     

    
      	
               
      

            	
              (f)

            	
              all
      documents, manuals and handbooks (including those referred to in Clause
      13.10, 15.6 and 53.9) required to be provided by the Contractor under the
      Contract have been completed and delivered to the
    Purchaser.

            


    

     

    
      
        
           


        

        
          54

          
            

          

        

        
           


        

      

    

     

    
      	
              29.2

            	
              Notice of Taking Over
      and Issue of Taking Over
Certificate

            


    

     

    When the
Contractor believes that it has achieved Final Performance Acceptance of the
Project, it shall deliver to the Engineer a notice thereof (the "Notice of Final
Performance Acceptance").  The Notice of Final Performance Acceptance
shall contain a report, in the form previously agreed by the Contractor and the
Engineer, of results of the completed Tests on Completion and the services
completed with sufficient detail to enable the Engineer to determine whether
Final Performance Acceptance of the Project has been achieved.  The
Engineer shall, within 3 (three) days following receipt of the Notice of Final
Performance Acceptance, inspect the Project, and all services completed by the
Contractor, review the results of the completed Test on Completion and the
report submitted by the Contractor and either (a) issue to the Contractor the
Final Performance Certificate (also called as the "Taking Over Certificate")
counter signed by the Purchaser or (b) if reasonable cause exists for doing so,
notify the Contractor that Final Performance Acceptance has not been achieved,
stating the reasons therefor.  In the event the Engineer determines
that the Final Performance Acceptance has not been achieved, the Contractor
shall promptly perform such services as is needed to achieve the Final
Performance Acceptance and shall issue to the Engineer another Notice of Final
Performance Acceptance pursuant to the provisions hereof.  Such
procedure shall be repeated as necessary until Final Performance Acceptance has
been achieved.  The Engineer shall in the Taking Over Certificate
certify the date of achievement of Final Performance Acceptance.  It
is expressly agreed by the Parties that under this Contract if the Engineer
agrees that Final Performance Acceptance has been achieved, then the date of
achievement or occurrence of Final Performance Acceptance shall be the date on
which conditions under item (a), (b), (c), (d) and (f) of Clause 29.1 have been
satisfied.  If the Engineer shall not have notified the Contractor
within the time periods set forth above that the Final Performance Acceptance
has not been achieved, then the Final Performance Acceptance shall be deemed to
have occurred as of the date on which the conditions under item (a), (b), (c),
(d) and (f) of Clause 29.1 have been satisfied.  The Purchaser shall,
on countersigning the Taking Over Certificate be deemed to have taken over the
Project on the date mentioned in the Taking Over Certificate.  Except
as permitted by Clause 30, the Purchaser shall not use the Works before they are
taken over.  Notwithstanding the foregoing, if the Purchaser shall at
any time take over and operate the Plant or any part there of, prior to Final
Performance Acceptance, then the Purchaser shall be deemed to have elected to
declare Final Performance Acceptance of the Plant of such part thereof, and to
have assumed care, custody and control, and risk of loss and damage, of the
Plant or such part thereof shall pass to the Purchaser effective as of the date
the Purchaser shall have taken over and operated the Plant or such part
thereof.

     

    
      	
              29.3

            	
              Effect of Taking
      Over

            


    

     

    Upon the
date referred to in the Taking Over Certificate, the Purchaser shall be deemed
to have taken over the relevant part of the Works and shall take possession of
the relevant part of the Works and the risk of loss or damage to the relevant
part of the Works shall pass to the Purchaser (other than any parts thereof
excluded by the terms of the Taking Over Certificate and the parts for that
period on which the Contractor works thereafter).

     

    
      	
              29.4

            	
              Outstanding
      Work

            


    

     

    The
Contractor shall rectify or complete to the reasonable satisfaction of the
Engineer within the time stated in the Taking Over Certificate any outstanding
items of work or Plant noted as requiring rectification or as
incomplete.  If the Contractor fails to do so within the requisite
time, the Purchaser may arrange for the outstanding work to be done by others
and the Cost thereof (together with a reasonable profit payable to the
replacement contractor) shall be deducted from the Contract Price or paid to·
the Purchaser by the Contractor forthwith on demand.

     

    
      	
              29.5

            	
              Not
      Used

            


    

     

    
      
         


      

      
        55

        
          

        

      

      
         


      

    

     

    
      	
              29.6

            	
              Products produced -
      Purchaser Possession

            


    

     

    The
Biodiesel and Glycerine produced by the Plant and all revenues derived therefrom
at any time during the term of the Contract shall be solely for the benefit of
the Purchaser.

     

    
      	
              29.7

            	
              Not
      Used

            


    

     

    
      	
              29.8

            	
              Retention
      Bond

            


    

     

    The
Contractor shall deposit with the Purchaser, not later than the date of
achievement of the Final Performance Acceptance and in any case prior to the
expiry of the Performance Bond, the Retention Bond which shall be furnished by
the Contractor, at its own cost, to guarantee the due, faithful and complete
performance of its obligations under this Contract during the Defects Liability
Period.

     

    Notwithstanding
any extension of the Defects Liability Period as stated elsewhere in this
Contract, the Retention Bond shall remain valid and effective for the full sum
of 5% (five per cent) of the Contract Price from the date of the last Final
Performance Acceptance until the issuance of the Defects Liability Certificate
("Expiry Date"), provided that in the event of any extension of the Defects
Liability Period beyond 12 (twelve) months from the date of last Final
Performance Acceptance, the value of the Retention Bond during such extended
period shall be reduced to take into account the value of the defective Works
which have been replaced or repaired by the Contractor in accordance with Clause
36.  Where the validity period of the Retention Bond delivered to the
Purchaser pursuant to this Clause shall expire prior to the Expiry Date, the
Contractor shall renew and/or extend the validity period of the Retention Bond
as and when necessary to ensure that the Retention Bond remains valid and
enforceable until the Expiry Date.

     

    Should
the Contractor fail to provide the Retention Bond in accordance with any
provisions of this Clause 29 or the Retention Bond cease to be in force or
effect at any time prior to the Expiry Date, then, without prejudice to any
other rights the Purchaser may possess, the Purchaser may deduct sums from any
monies due or to become due to the Contractor under this Contract up to a total
sum equivalent to the amount required to be guaranteed by the Retention
Bond.  The Purchaser may retain or withhold such sums until such time
that a Retention Bond for the remaining period or requisite amount is provided
or the Retention Bond is no longer required under the provisions of the
Contract.

     

    
      	
              30

            	
              Use Before
      Taking-Over

            


    

     

    If, by
reason of any default on the part of the Contractor, a Taking Over Certificate
has not been issued within one week after the end of the successful Tests on
Completion of the Works, the Purchaser shall without prejudice to the
Purchaser's other rights hereunder, be entitled but not be obliged, to use any
part of the Works in respect of which a Taking Over Certificate has not been
issued, provided the same is reasonably capable of being used.  The
Contractor shall be afforded the earliest possible opportunity of taking such
steps as may be necessary to permit the issue of the Taking Over
Certificate.  The provisions of Clauses 43.1, 43.2 and 43.3 shall not
apply to any part of the Works while being so used by the Purchaser and Clause
36 shall apply thereto as if a Taking Over Certificate had been issued from the
date such part was taken into use.  The Purchaser's rights under this
Clause 30 shall not relieve the Contractor of its obligations under the
Contract.

     

    
      
        
           


        

        
          56

          
            

          

        

        
           


        

      

    

     

    
      	
              31

            	
              Interference with
      Tests

            


    

     

    
      	
              31.1

            	
              Interference with
      Tests

            


    

     

    If by
reason of any failure of the Purchaser (except any failure caused by an event of
Force Majeure) to comply with its obligations under Clause 11 to make available
requisite the Purchaser Input including the feedstock as per the schedule in the
Programme, or such date as mutually agreed between the Parties (except for
events of Force Majeure), or if by reason of any act or omission of the
Purchaser, the Engineer or some other contractor employed by the Purchaser, the
Contractor shall be prevented from carrying out the Tests on Completion and
achieve the requirements for the issuance of a Taking Over Certificate in
accordance with Clause 29 then the date stipulated in the Contract for the Final
Performance Acceptance, achievement of which has been prevented or delayed,
shall be extended by the period of such delay which has affected each such Test,
and the Contractor shall be entitled to request for an extension of Time for
Completion under Clause 33 and additional Cost incurred by the Contractor under
Clause 41.

     

    
      	
              31.2

            	
              Deemed Taking
      Over

            


    

     

    If the
Contractor shall be prevented from carrying out Tests on Completion as mentioned
in Clause 31.1 and such prevention shall continue for a period of 10 (ten) days
or more, the Contractor may by written notice to the Engineer (with a copy to
the Purchaser), require him to give notice to proceed within 3 (three)
days.  If notice to proceed is not given within that time the
Contractor may by further written notice to the Engineer (with a copy to the
Purchaser), require that this Clause shall have effect, in which case, unless in
the meantime the Works are in the opinion of the Engineer not substantially in
accordance with the Contract, the Purchaser shall be deemed to have elected to
declare Final Performance Acceptance of the Plant, and taken over the Works or
the relevant section and the Engineer shall, upon the application of the
Contractor, issue a Taking Over Certificate accordingly.

     

    
      	
              31.3

            	
              Tests to be Carried
      out During Defects Liability
Period

            


    

     

    In any
case where a Taking Over Certificate has been issued under Clause 31.2 the
Contractor shall be under an obligation to carry out the Tests on Completion
during the Defects Liability Period as and when required by adequate prior
notice from the Engineer.  Such allowances shall be made from the
results required to be attained in the Tests on Completion as may be reasonable
having regard to any use of the Works by the Purchaser prior to the Tests on
Completion and to any deterioration therein which may have occurred since the
issue of the Taking Over Certificate in respect thereof.  The
Contractor shall be entitled to request a Variation under Clause 27 in respect
of any Costs demonstrated to be in excess of those budgeted by the Contractor
for the Tests on Completion and incurred by the Contractor in making the Tests
on Completion in accordance with this Sub-Clause.

     

    
      	
              32

            	
              Time for
      Completion

            


    

     

    
      	
              32.1

            	
              Time for
      Completion

            


    

     

    The
Contractor shall so execute the Works that it shall be complete, pass the Tests
on Completion and achieve the Final Performance Acceptance within the Time for
Completion set forth in Appendix 2.  Time for Completion is the
essence of the Contract.

     

    
      	
              32.2

            	
              Achievement of
      Milestones

            


    

     

    The
Contractor shall achieve the Milestones set out in the Programme.

     

    
      
        
           


        

        
          57

          
            

          

        

        
           


        

      

    

     

    
      	
              32.3

            	
              Payments to
      Sub-contractors

            


    

     

    The
Contractor shall manage timely payments to the sub-contractors in a manner not
to prejudice the adherence to the Programme and achievement of Time for
Completion.  If the Engineer at anytime has reasonable grounds to
believe that any delay in meeting the Programme, Milestones and/or the Time for
Completion is as a result of delayed or underpayments to the Sub-contractors,
then the Engineer may require the Contractor, and the Contractor shall comply
with, to provide evidence to the Engineer, to the Engineer's satisfaction, that
the payments made by the Purchaser have been utilised for the expenditure on the
Works and that the payments to the Sub-contractors have been done in a manner so
as not to prejudice the adherence to the Programme and achievement of Time for
Completion.  If the Engineer is not satisfied with such evidence, the
Engineer, may in its sole discretion, direct the Contractor to undertake
suitable remedial measures including payments to Sub-contractors, as the
Engineer deems fit.  No such direction by the Engineer and the
compliance thereof by the Contractor shall relieve the Contractor of any of its
obligations under the Contract.

     

    
      	
              33

            	
              Extension of Time for
      Completion

            


    

     

    
      	
              33.1

            	
              Extension of Time for
      Completion

            


    

     

    If by
reason of:

     

    
      	
               
      

            	
              (a)

            	
              Any
      cause of delay referred to in Clause 31;
or

            


    

     

    
      	
               
      

            	
              (b)

            	
              Force
      Majeure; or

            


    

     

    
      	
               
      

            	
              (c)

            	
              The
      Contractor not having received from the Purchaser or the Engineer in due
      time, necessary instructions, decisions, information or comments which the
      Purchaser or the Engineer is bound to give under the Contract and for
      which the Contractor specifically applied in writing provided that such
      application was made by the Contractor not less than 14 (fourteen) days
      prior to the date on which it was necessary for him to receive such
      instructions, decisions, information or comments, or an earlier date if
      agreed otherwise by the Parties and the Contractor has complied with its
      obligations hereunder; or

            


    

     

    
      	
               
      

            	
              (d)

            	
              Failure
      by the Purchaser to make available to the Contractor the Site and/or other
      Purchaser Input as per the Programme;
or

            


    

     

    
      	
               
      

            	
              (e)

            	
              Any
      change carried out pursuant to Clause 27 in respect of which a change in
      any Milestone and/or change in the Programme is incorporated in the
      Variation; or

            


    

     

    
      	
               
      

            	
              (f)

            	
              Any
      other delay, impediment or prevention caused by the Purchaser including
      the Engineer or for which the Purchaser is responsible of whatsoever
      nature (including any suspension of work under Clause 25 or prevention
      from carrying out of Tests on Completion under Clause
  31),

            


    

     

    (hereinafter
referred to as the "Event of Delay"),

     

    the
Contractor shall have been or will be delayed in the completion of the Works and
achievement of the Final Performance Acceptance (and whether such matter or
delay occurs before or after expiry of the Time for Completion) then, the
Contractor shall immediately give a written notice to the Engineer of the
material circumstances including the cause(s) of the delay and identify in such
notice any event which in its opinion is an Event of Delay, and in any case
shall do so within fourteen (14) days (or such longer period as may be specified
or agreed to by the Engineer) from the date of the occurrence or commencement of
the Event of Delay.

     

    In
respect of each and every Event of Delay identified in the notice given in
accordance with Clause 33.1, the Contractor shall, if practicable in such
notice, or otherwise in writing within 14 (fourteen) days of such notice, submit
to the Engineer sufficient particulars of:

     

    
      	
               
      

            	
              (a)

            	
              the
      expected effects thereof, including the estimated length of delay whether
      or not concurrently with delay resulting from any other Event of Delay;
      and

            


    

     

    
      	
               
      

            	
              (b)

            	
              the
      effect of the event on the
Programme,

            


    

     

    
      
         


      

      
        58

        
          

        

      

      
         


      

    

     

    to enable
the Engineer to assess the extension of time to be granted.

     

    If the
Engineer is of the opinion that the particulars submitted by the Contractor are
insufficient to enable him to decide on the application for extension of time,
the Engineer shall within 14 (fourteen) days from receipt of the Contractor's
first application inform the Contractor of any deficiency in its submission, and
may require the Contractor to provide such further particulars within a further
7 (seven) days or such other period of time as may be stated by the
Engineer.

     

    Provided
always that the Contractor has submitted to the Engineer its notice in writing
for extension of time as well as the requisite particulars in accordance with
the provisions of this Clause 33 and provided that the Contractor shall have
used and shall continue to use all reasonable endeavours to avoid and minimise
delay, the Engineer shall consider the Contractor's application and
either:

     

    
      	
               
      

            	
              (a)

            	
              issue
      a certificate to the Contractor granting an extension of time as he
      estimates to be fair and reasonable by fixing such later date as the Time
      for Completion for the whole of the Works or any Project Section;
      or

            


    

     

    
      	
               
      

            	
              (b)

            	
              reject
      the Contractor's application,

            


    

     

    not later
than 14 (fourteen) days from the receipt of sufficient particulars from the
Contractor, irrespective of whether the period between receipt of sufficient
particulars from the Contractor and the Time for Completion is less than 14
(fourteen) days.  For the avoidance of doubt, the Contractor shall not
be entitled to any extension of time where instructions or acts of the Purchaser
and/or the Engineer are necessitated by or intended to cure any default of or
breach of Contract by the Contractor and/or its sub-contractors.

     

    In
assessing the extension of time, the Engineer may take into account the effect
or extent of any work omitted under the Contract and any other Events of Delay
for extension of time not submitted or included in the Contractor's application,
which in the Engineer's opinion will entitle the Contractor to an extension of
time.

     

    
      	
              33.2

            	
              Strict Compliance
      Required

            


    

     

    The
Contractor shall not be entitled to any extension of the Time for Completion of
the Works or allowance of time in respect of any event or circumstance to which
the provisions of this Clause apply unless it shall have complied strictly with
the terms hereof, and in default of strict compliance, the Contractor shall be
deemed to have waived all rights, claims and damages to which it might otherwise
have become entitled pursuant to the Conditions or as a result of any breach of
duty by the Purchaser or the Engineer.  For the avoidance of doubt,
the provision of the notice and particulars (at substantially all such times and
instances when required) within the respective periods required under this
Clause shall be a condition precedent to the Contractor's entitlement to
extension of time.

     

    
      	
              33.3

            	
              Minimising Anticipated
      Delay

            


    

     

    In all
cases where the Contractor has given notice under Clause 33.1 the Contractor
shall thereafter comply with all reasonable instructions which the Purchaser
shall give in order to overcome or minimise any actual or anticipated delay
caused by the Event of Delay.  If compliance with any such instruction
shall cause the Contractor to incur extra Costs the Contractor shall be entitled
to make a claim for Costs under Clause 41, provided that the extra Cost
requested shall only be the excess over applicable insurance
recovery.

     

    
      
        
           


        

        
          59

          
            

          

        

        
           


        

      

    

     

    
      	
              33.4

            	
              Instructions to Avoid
      or Reduce Delay

            


    

     

    If
completion of the Works shall be delayed or expected to be delayed in
circumstances where the Contractor is entitled to an extension of the Time for
Completion therefore, the Purchaser shall be entitled to instruct the Contractor
to take measures to avoid or reduce such delay (provided always such measures
are physically practicable) and the Contractor shall comply with such
instructions and shall be entitled to request a Variation in respect of the
reasonable additional costs incurred in excess of applicable insurance
recovery.

     

    
      	
              34

            	
              Delay

            


    

     

    
      	
              34.1

            	
              Delay in
      Completion

            


    

     

    Subject
to Clause 34.2, if the Contractor fails to achieve Final Performance Acceptance
in accordance with the Contract within the Time for Completion, the Contractor
shall pay to the Purchaser or as the Purchaser shall direct upon demand, without
set-off or counterclaim the sum calculated at the rate named in the Appendix 2
as liquidated damages for such default, and not as a penalty, for every week or
part of a week which shall elapse between the expiry of the Time for Completion
stated in the Appendix 2 and the Commercial Operation Date.  If any
such due amount remains unpaid 14 days after a written demand therefore the
Purchaser shall be entitled to charge interest on the amount unpaid calculated
daily at the rate of 2% per annum over the Base Lending Rate.  Payment
of liquidated damages by the Contractor shall be made in Malaysian Ringgit and
on a weekly basis not later than 7 (seven) days from the end of the week,
failing which such liquidated damages shall be deducted from the Contract Price
or be claimed against the Performance Bond.

     

    
      	
              34.2

            	
              Contractor's Liability
      Subject to Qualification

            


    

     

    The
Contractor's liability under Clauses 34.1 shall be subject to the
following:

     

    
      	
               
      

            	
              (a)

            	
              the
      aggregate amount of all liability for liquidated damages for delay
      hereunder shall not exceed the amount named in Appendix 2 as the Limit of
      Liquidated Damages for Delay; and

            


    

     

    
      	
               
      

            	
              (b)

            	
              save
      as expressly provided in Clause 34.3 the liquidated damages provided for
      under Clause 34.1 shall be the full extent of the Contractor's sole and
      exclusive liability to the Purchaser in respect of delay in achieving
      Final Performance Acceptance within the Time for
    Completion.

            


    

     

    
      	
              34.3

            	
              Prolonged
      Delay

            


    

     

    If after
the Purchaser has become entitled pursuant to Clauses 34.1 to damages up to the
limit provided under Clause 34.2 or the combined limit provided under Clause
44.3 any part of the Works remains uncompleted, the Purchaser may by notice to
the Contractor require him to complete that part and the Contractor shall
complete that part in accordance with such notice from the
Purchaser.  Such notice shall fix a final time for completion, which,
shall be reasonable having regard to such delay as has already occurred and to
the extent of the work required for completion.  If for any reason
other than an event of Force Majeure or one for which the Engineer or the
Purchaser or some other contractor employed by the Purchaser is responsible the
Contractor fails to complete within such time, then the Purchaser may (a) by
further notice to the Contractor terminate the Contract and otherwise proceed in
accordance with Clause 46.3, or, (b) accept the Plant subject to reaching an
agreement on further reduction in Contract Price.

     

    
      	
              34.4

            	
              Contractor's Liability
      Not Prejudiced

            


    

     

    Notwithstanding
any provisions of these Conditions, the obligation of the Contractor to make
payments and the right of the Purchaser to make deductions under Clause 34 in
respect of any failure by the Contractor referred to in Clauses 34.1 shall not
be prejudiced or in any way affected by virtue of such failure also constituting
the non-achievement of a Milestone.


    
      
         


      

      
        60

        
          

        

      

      
         


      

    

     

    
      	
              34.5

            	
              Liquidated Damages
      Reasonable

            


    

     

    The
Purchaser and the Contractor hereby acknowledge and agree that the terms,
conditions and amounts fixed pursuant to this Clause 34 for delay liquidated
damages are reasonable and shall be deemed to be the genuine pre-estimate and
reasonable loss which the Purchaser will suffer, considering the reduction in
the value of the Plant or losses that the Purchaser will sustain in the event of
the Contractor's failure to achieve Final Performance Acceptance within the Time
for Completion.  The amounts of these liquidated damages are agreed
upon and fixed hereunder by the Parties because of the difficulty of
ascertaining on the date hereof the exact amount of such reduction in value or
losses that will actually be sustained by the Purchaser in the event of any such
failure by the Contractor, and the Parties hereby agree that the liquidated
damages amounts specified herein shall be applicable regardless of the amount of
such reduction in value or losses actually sustained by the Purchaser and,
subject to the provisions of Clause 44 hereof and the Purchaser's rights to
terminate this Contract pursuant to Clause 46 hereof, shall be in lieu of all
remedies and damages for failure to achieve the Final Performance Acceptance
within the Time for Completion.

     

    In the
event that the Purchaser is held or declared by any Court of Law not to be
entitled to recover the abovesaid liquidated damages under this Clause for any
reason whatsoever, the Purchaser shall remain entitled to recover such losses,
expenses, costs or damages as the Purchaser would be entitled to at law in the
absence of the right to recover the abovesaid liquidated damages.

     

    
      	
              35

            	
              Performance Liquidated
      Damages

            


    

     

    
      	
              35.1

            	
              Performance Liquidated
      Damages

            


    

     

    If at the
time of achievement of Final Performance Acceptance or Taking Over or the
earlier expiry of the final time for completion fixed pursuant to Clause 34.3,
the Contractor is unable to demonstrate that the Performance Guarantees for
Biodiesel and/or Glycerine Output at the level of feedstock and utility
consumption as specified, as the case may be, are satisfied, the Contractor
shall pay to the Purchaser, as liquidated damages for its failure to achieve the
applicable Performance Guarantees and not as a penalty, the respective amounts
calculated at the rates set forth in Appendix 7 to these
Conditions.

     

    This
Clause 35.1 sets forth the sole and exclusive liability of the Contractor to the
Purchaser for the failure of the Contractor to cause the Plant to meet the
Performance Guarantees, provided however that the Contractor has caused the
Plant to meet the Minimum Acceptable Performance Criteria.  Amounts
accruing under this Clause 35.1 shall be due and payable not later than 14
(fourteen) days after receipt by the Contractor of an invoice from the Purchaser
following the Tests on Completion for the Plant carried out to demonstrate the
achievement of Final Performance Acceptance setting forth the Purchaser's claim
under this Clause 35.1.

     

    The
Contractor shall promptly pay all amounts due under this Clause 35.1 to the
Purchaser or as the Purchaser shall direct without set-off or
counterclaim.  If any such due amount remains unpaid 14 (fourteen)
days after a written demand therefore the Purchaser shall be entitled to charge
interest on the amount unpaid calculated daily at the rate of 2% per annum over
the Base Lending Rate.  Payment of liquidated damages by the
Contractor shall be made in Malaysian Ringgit.  The Purchaser, at its
sole discretion, shall be entitled to set off or deduct amounts due under this
Clause 35.1 and under Clause 34.1 against approved payment certificates, against
retention amounts or against any other amounts due to the Contractor
hereunder.


    
      
         


      

      
        61

        
          

        

      

      
         


      

    

     

    
      	
              35.2

            	
              Liquidated Damages
      Reasonable

            


    

     

    The
Purchaser and the Contractor hereby acknowledge and agree that the terms,
conditions and amounts fixed pursuant to this Clause 35 for performance
liquidated damages are reasonable, considering the reduction in the value of the
Plant or losses that the Purchaser will sustain in the event of the Contractor's
failure to achieve the Performance Guarantees.  The amounts of these
liquidated damages are agreed upon and fixed hereunder by the Parties because of
the difficulty of ascertaining on the date hereof the exact amount of such
reduction in value or losses that will actually be sustained by the Purchaser in
the event of any such failure by the Contractor, and the Parties hereby agree
that the liquidated damages amounts specified herein shall be applicable
regardless of the amount of such reduction in value or losses actually sustained
by the Purchaser and, subject to the provisions of Clause 44 hereof and the
Purchaser's rights to terminate this Contract pursuant to Clause 46 hereof,
shall be in lieu of all remedies and damages for failure to achieve the
Performance Guarantees by such date.

     

    
      	
              35.3

            	
              Contractor's Liability
      Subject to Qualification

            


    

     

    The
aggregate amount of liquidated damages under Clause 35 shall not exceed the
amount named in the Appendix 2 as the Limit of Liquidated Damages for
Performance Guarantees.

     

    In the
event that the Purchaser is held or declared by any Court of Law not to be
entitled to recover the abovesaid liquidated damages under this Clause for any
reason whatsoever, the Purchaser shall remain entitled to recover such losses,
expenses, costs or damages as the Purchaser would be entitled to at law in the
absence of the right to recover the abovesaid liquidated damages in the absence
of the right to recover the abovesaid liquidated damages.

     

    
      	
              36

            	
              Defects
      Liability

            


    

     

    
      	
              36.1

            	
              Meaning of Defects
      Liability Period

            


    

     

    In these
Conditions the expression "Defects Liability Period" means the period commencing
on the date of Taking Over and ending on the date 12 (twelve) months or such
other period as may be pursuant to Clauses 36.3 and 36.4.

     

    
      	
              36.2

            	
              Making Good
      Defects

            


    

     

    The
Contractor shall be responsible for rectifying or making good by correction,
repair or replacement with all possible speed at its expense any error in,
defect or damage to any part of the Works or any other failure of the Works to
comply with the Contract which may appear or occur during the relevant Defects
Liability Period and which arises either:

     

    
      	
               
      

            	
              (a)

            	
              from
      any defective materials, workmanship or design (other than a design made,
      furnished, or specified by the Engineer and with which the Contractor has
      disagreed in writing within a reasonable time after receipt of it);
      or

            


    

     

    
      	
               
      

            	
              (b)

            	
              from
      any act or omission of the Contractor its agents, employees or
      Sub-contractors.

            


    

     

    If any
such defect shall appear or damage occur the Purchaser or the Engineer shall
promptly on becoming aware thereof inform the Contractor thereof stating in
writing the nature of the defect or damage.

     

    The
Purchaser shall permit the Contractor access to the Site and the Plant for the
purposes of rectifying or making good such defect or damage in accordance with a
remedial program prepared by the Purchaser in consultation with the operations
and maintenance contractor and agreed with the Contractor.  The
Contractor shall expedite the rectification and making good as required by such
remedial program at its own cost and shall comply with applicable safety,
environmental and security regulations during the performance of such
work.


    
      
         


      

      
        62

        
          

        

      

      
         


      

    

     

    Making
good shall include making good the equipment concerned on all units by
modification, repair or replacement regardless of whether they have previously
been taken over or not and provision of modified drawings and operation and
maintenance manuals.

     

    When the
Contractor has completed to the satisfaction of the Engineer all such
rectification and making good as may be required in respect of any part of the
Works and the relevant Defects Liability Period has expired, the Engineer shall
in respect of that part of the Works issue a Defects Liability Certificate in
the form and substance as set out in Appendix 21.

     

    The
aforementioned warranty obligations of the Contractor during the Defects
Liability Period under this Clause 36 do not extend to (i) any repairs,
adjustments, alterations, replacements or maintenance of materials that are
required solely as a result of (a) normal wear and tear in the operation of the
Biodiesel Project or (b) the Purchaser's failure to operate and maintain the
Biodiesel Project in accordance with the operating and maintenance
specifications set forth in the Contractor's operation and maintenance manuals
or (ii) any warranty obligation in respect of items of equipment, materials or
services supplied by the Purchaser or other contractors engaged by the
Purchaser.

     

    
      	
              36.3

            	
              Application to Works
      Made Good

            


    

     

    The
provisions of this Clause 36 shall apply to any portion of the Works which have
been previously made good, replaced or repaired under Clause 36.2 and the
Defects Liability Period for such portion of the Works shall be accordingly
extended for a further period of twelve (12) months after the date of completion
of such making good, repair or replacement.

     

    
      	
              36.4

            	
              Extension of Defects
      Liability

            


    

     

    The
Defects Liability Period in respect of all or any portion of the Works
(including the Defects Liability Period applicable to all repairs and
replacements under Clause 36.3) shall in addition to the extension described in
Clause 36.3 be extended by a period equal to the period during which the Works
(or that part thereof in which the defect or damage to which this Clause applies
has appeared or occurred) cannot be used by reason of any defect or
damage.

     

    
      	
              36.5

            	
              Outer Limit of Defects
      Liability

            


    

     

    Notwithstanding
the provisions of Clause 36.3 and Clause 36.4, in no event shall the Defects
Liability Period with respect to the Biodiesel Project (or any component
thereof) or any spare or replacement part extend beyond the date that is 24
(twenty four) calendar months after the date of Taking Over of the entire
Biodiesel Project.

     

    
      	
              36.6

            	
              Delay in Remedying
      Defects

            


    

     

    If any
such error defect damage or failure be not remedied by the Contractor within 14
(fourteen) days from receipt of the notification thereof by the Purchaser or
Engineer under Clause 36.2, the Purchaser may proceed to do the work at the
Contractor's expense provided that it notifies the Contractor of its intention
so to do.  The cost reasonably incurred by the Purchaser shall,
without prejudice to any other method of recovery be deducted from the Contract
Price or be paid by the Contractor to the Purchaser forthwith on
demand.

     

    Provided,
however, that if the Contractor demonstrates to the satisfaction of the
Purchaser that the Contractor has made best endeavours (such as placement of
orders for replacement materials and equipments in good time) to remedy the
defects within the stipulated time and any delay is for causes not entirely
controllable by the Contractor (such as replacement material and equipments are
not generally available due to general shortage in the market for such materials
and equipment), then the Purchaser shall grant a reasonable extension of time to
remedy defects to the Contractor


    
      
         


      

      
        63

        
          

        

      

      
         


      

    

     

    
      	
              36.7

            	
              Removal of Defective
      Work

            


    

     

    The
Contractor may with the consent of the Purchaser remove from the Site any part
of the Works which is defective or damaged, if the nature of the defect or
damage is such that repairs cannot be expeditiously carried out on the
Site.

     

    
      	
              36.8

            	
              Not
      Used

            


    

     

    
      	
              36.9

            	
              Contractor to Search
      for Cause of Defect / Damage

            


    

     

    The
Contractor shall, if required by the Purchaser in writing, search for the cause
of any defect or damage at its own costs.

     

    
      	
              36.10

            	
              Latent
      Defects

            


    

     

    Notwithstanding
the completion of the Defects Liability Period, the Contractor shall be
responsible for expeditiously making good by repair or replacement at its option
and at its cost and expense any Latent Defect in the Biodiesel Project or any
part thereof, which, appears before the expiry of the Latent Defects Liability
Period.

     

    Latent
Defects shall mean any inherent defects in design, workmanship or material which
surface after the Defects Liability Period and which could not be detected
despite normal inspection during the Defects Liability Period by the Purchaser
and which may hinder or endanger the normal operation of the Biodiesel
Project.

     

    For the
purposes of this Contract the term Latent Defects Liability Period shall mean
the period commencing from the date of Taking Over of the Biodiesel Project and
ending on a date that is exactly 18 (eighteen) months thereafter.

     

    
      	
              36.11

            	
              Liability for
      Defects

            


    

     

    Save as
expressly provided in Clauses 29, 36 and 43 neither the Contractor nor its
Subcontractors, their respective servants or agents shall be liable, whether in
contract, in tort (including but not limited to negligence) or by reason of
breach of legal duty or otherwise, in respect of defects in or damage to any
part of the Works taken over under Clause 29.

     

    Nothing
in this Clause shall affect the liability of the Contractor under these
Conditions in respect of any part of the Works not yet taken over, or its
liability for death or personal injury caused by its wilful or negligent acts or
omissions.

     

    
      	
              36.12

            	
              Sub-Contractor
      Warranties

            


    

     

    The
Contractor shall obtain warranties and guarantees from its Subcontractors,
suppliers and the manufacturers with respect to the materials, workmanship and
equipment which form a part of the Works.  Such warranties and
guarantees shall be standard for the biodiesel and glycerine refining industry
in all material respects.  The Contractor shall ensure that all such
warranties and guarantees in existence at the conclusion of the Defects
Liability Period, if any, shall be assigned for the benefit of the
Purchaser.

     

    
      	
              36.13

            	
              Limitation of
      Warranties

            


    

     

    Except as
provided in this Agreement, there are no warranties express or implied relating
to the Works to be performed by the Contractor hereunder, and the Contractor
disclaims any implied warranties or warranties imposed by Law (other than
warranties of title).


    
      
         


      

      
        64

        
          

        

      

      
         


      

    

     

    
      	
              37

            	
              Vesting of
      Plant

            


    

     

    
      	
              37.1

            	
              Vesting of
      Plant

            


    

     

    The
equipment and materials forming a part of the Works to be supplied pursuant to
the Contract shall become the property of the Purchaser when such equipment or
material is delivered to the Site pursuant to the Contract

     

    
      	
              37.2

            	
              Contractor to Procure
      Title to Plant

            


    

     

    The
Contractor shall procure that title to all equipment and other materials vested
in the Purchaser under Clause 37.1 shall be free from any lien, charge or any
other security interest and that no person shall have any claim to title
thereto.  If, notwithstanding this Clause 37.2, such Plant, equipment
and other materials are subject to any lien, charge, other security or claim,
the Purchaser may discharge the lien, charge, security or claim and recover all
costs thereby incurred from the Contractor on demand.

     

    
      	
              37.3

            	
              Setting Aside and
      Marking Plant

            


    

     

    Where,
prior to delivery, the property in the Biodiesel Project (or any part thereof)
passes to the Purchaser, the Contractor shall, so far as is practicable, set the
property in the Biodiesel Project aside and mark it as the Purchaser's property
in a manner reasonably required by the Engineer.

     

    
      	
              37.4

            	
              Not
      Used

            


    

     

    
      	
              37.5

            	
              Inspection of
      Plant

            


    

     

    The
Contractor shall permit the Engineer, the Purchaser and any persons authorised
by the Purchaser at any time upon reasonable notice to inspect any property in
the Biodiesel Project which has become the property of the Purchaser and shall
grant the Engineer or procure the grant of access to the premises of the
Contractor, its Subcontractors or any other premises for such purposes or any
other premises where such property in the Biodiesel Project may be
located.

     

    
      	
              37.6

            	
              Contractor's
      Risk

            


    

     

    All such
property in the Biodiesel Project shall be in the care and possession of the
Contractor solely for the purposes of the Contract and shall not be within the
purchasership or disposition of the Contractor.  All such property in
the Biodiesel Project shall be at the risk of the Contractor in accordance with
Clause 43.

     

    
      	
              37.7

            	
              Certificate
      Issued

            


    

     

    No
certificate issued by the Engineer under Clause 39 shall prejudice the right of
the Purchaser to reject Plant or part thereof, which is not in accordance with
the Contract.  The property in the rejected Plant shall immediately
revert to the Contractor upon the replacement thereof by the
Contractor.

     

    
      	
              38

            	
              Contractor's
      Equipment

            


    

     

    
      	
              38.1

            	
              Contractor's
      Equipment

            


    

     

    The
Contractor shall provide all Contractor's Equipment necessary to complete the
Works in accordance with the Contract and shall bear all the costs thereof
including, but not limited to, import duty and any other taxes.

     

    
      
        
           


        

        
          65

          
            

          

        

        
           


        

      

    

     

    
      	
              38.2

            	
              Contractor's Equipment
      to be Exclusively for Execution of
Works

            


    

     

    All the
Contractor's Equipment shall when brought on to the Site, be used exclusively
for the execution of the Works except as provided for in Clause
18.4.  The Contractor shall not thereafter remove the same or any part
thereof from the Site without the consent of the Engineer, which shall not be
unreasonably withheld in the case of the Contractor's Equipment not currently
required for the execution of the Works on the Site.

     

    
      	
              38.3

            	
              Loss or Damage to
      Contractor's Equipment

            


    

     

    The
Contractor shall be liable for loss of or damage to any Contractor's Equipment
which may occur otherwise than through the acts or default of the Purchaser or
those for whom the Purchaser is responsible including the Engineer.

     

    
      	
              38.4

            	
              Maintenance of
      Contractor's Equipment

            


    

     

    The
Contractor shall be responsible for maintaining the Contractor's Equipment on
the Site in safe working order.

     

    
      	
              39

            	
              Certificates and
      Payment

            


    

     

    
      	
              39.1

            	
              Payment to
      Contractor

            


    

     

    The
Purchaser shall make payment to the Contractor in accordance with the Payment
Schedule and any such payment shall be subject to the achievement of the
Milestone and requests for payment certificates submitted by the Contractor and
certificate of payment issued and approved by the Engineer.

     

    
      	
              39.2

            	
              Not
      Used

            


    

     

    
      	
              39.3

            	
              Not
      Used

            


    

     

    
      	
              39.4

            	
              Deduction from
      Certificate

            


    

     

    The
Engineer may deduct from any certificate for payment issued under Clause 39.1
such amount as the Engineer shall consider reasonable in respect of any amounts
then in dispute between the Purchaser and the Contractor, any deduction as
authorised under this Contract and any work or Plant or goods or
materials:

     

    
      	
               
      

            	
              (a)

            	
              which
      in the opinion of the Engineer does not comply with the Contract;
      or

            


    

     

    
      	
               
      

            	
              (b)

            	
              in
      respect of which the Contractor has not submitted satisfactory
      evidence.

            


    

     

    
      	
              39.5

            	
              Payments not
      Conclusive

            


    

     

    Subject
to Clause 39.6 and 39.8, no certificate shall be relied upon as conclusive
evidence of any matter stated therein, nor shall it affect or prejudice any
right of the Purchaser or the Contractor against the other.

     

    
      	
              39.6

            	
              Application for Final
      Certificate

            


    

     

    The
Contractor shall make application for the Final Certificate at any time after
the Contractor has ceased to be under any obligation under Clause 36 (except
Clause 36.9) and after the Contractor has completed any remedial Works
outstanding at such time pursuant to Clause 36.

     

    The
application for the Final Certificate shall be accompanied by a final account
prepared by the Contractor.  The final account shall give full details
of the value of the Works and other sums certified by the Engineer.

     

    The Final
Certificate shall, save in the case of fraud or dishonesty relating to or
affecting any matter dealt with in the certificate, be conclusive evidence as to
the sufficiency of the Works and of the value thereof.  Upon the issue
of such Final Certificate, no further claims from the Contractor in respect of
the Works shall be entertained by the Purchaser.


    
      
         


      

      
        66

        
          

        

      

      
         


      

    

     

    
      	
              39.7

            	
              Value of Final
      Certificate

            


    

     

    The Final
Certificate shall be in the form set out at Appendix 12 subject to such
amendments as may be appropriate and shall certify the total amount payable to
the Contractor under the Contract in respect of the Works having regard to any
addition to or deduction from the Contract Price provided for in these
Conditions and claims in respect thereof made by the Contractor to the
Purchaser, the total amounts paid on certificates of payment previously issued
pursuant to this Clause 39, and the balance payable whether by the Purchaser to
the Contractor or by the Contractor to the Purchaser.

     

    
      	
              39.8

            	
              Issue of Final
      Certificate

            


    

     

    The
Engineer shall issue to the Contractor (with a copy to the Purchaser) the Final
Certificate within 30 days after receiving an application, which, the Contractor
was entitled to make and which complies with all the requirements of Clause
39.6.  For the purpose of this Clause 39.8, time shall not start to
run until the Contractor has provided to the Engineer all information in support
or amplification of the final account that the Engineer may reasonably
require.

     

    The issue
of the Final Certificate shall be conclusive evidence that the Contractor has
performed all its obligations under the Contract in respect of the Works except
for its obligation under Clause 36.9.

     

    
      	
              40

            	
              Payment

            


    

     

    
      	
              40.1

            	
              Payments

            


    

     

    The
Payments payable to the Contractor for the Works under the Contract shall be
drawn by the Contractor from the Purchaser's Letter of Credit in accordance with
the terms of such Purchaser Letter of Credit.

     

    
      	
              40.2

            	
              Not
      Used

            


    

     

    
      	
              40.3

            	
              Currency of
      Payment

            


    

     

    Each
payment will be made in Malaysian Ringgit.

     

    
      	
              41

            	
              Claims

            


    

     

    
      	
              41.1

            	
              Notification of
      Claims

            


    

     

    In every
case where under the Conditions the Contractor is or considers himself entitled
to be paid or to have included in or added to the Contract Price any extra or
additional payment the Contractor shall if it intends to make any claim for
additional payment:

     

    
      	
               
      

            	
              (a)

            	
              within
      30 (thirty) days of any circumstance arising which the Contractor
      considers entitles him to claim additional payment, give to the Engineer
      and/or the Purchaser notice of its intention to make a claim and shall
      state the reasons by virtue of which it considers that it is entitled
      thereto; and

            


    

     

    
      	
               
      

            	
              (b)

            	
              subject
      to Clause 27.6, within 30 (thirty) days after the date of the notice given
      by the Contractor of its intention to make a claim under or arising out of
      this Contract for additional payment or any other period agreed between
      the Parties, which in any event shall be no later than the expiry of 60
      (sixty) days after the issue of the Taking Over Certificate, submit to the
      Engineer and/or the Purchaser full particulars of and the actual amount of
      its claim for Costs.  The Contractor shall thereafter promptly
      submit such further particulars as the Engineer and/or the Purchaser may
      reasonably require to assess the value of the
  claim.

            


    

     

    
      
         


      

      
        67

        
          

        

      

      
         


      

    

     

    
      	
              41.2

            	
              Allowance for
      Profit

            


    

     

    In any
case where under the provisions of Clause 16.2 (Exceptions), Clause 25.2
(Contractor's Expenses), Clause 25.5 (Resumption of Work, Delivery or Erection),
Clause 27.6 (Variations), Clause 31.1 (Interference with Tests), Clause 31.2
(Deemed Taking Over), Clause 31.3 (Tests to be Carried Out During Defects
Liability Period), Clause 33.3 (Minimising Anticipated Delay), Clause 33.4
(Instructions to Avoid or Reduce Delay), Clause 43.2 (Making Good Loss or Damage
to the Works) and Clause 49.5 (Consequences of Change in Law) the Contractor is
entitled to recover Cost, the Contractor shall also be entitled to be paid
profit at the percentage stated in the Appendix 2 on the additional Costs
approved by the Engineer.

     

    
      	
              41.3

            	
              Purchaser's Liability
      to Pay Claims

            


    

     

    Notwithstanding
anything contained in these Conditions the Purchaser shall not be liable to make
payment in respect of any claim under or arising out of this Contract for an
additional payment unless the Contractor has complied with the requirements of
this Clause 41.  Strict compliance with the requirements of this
Clause, including the provision of the notice and particulars by the Contractor
within the requisite period, shall be a condition precedent to the Contractor's
entitlement to the payment of Costs under this Clause.

     

    
      	
              42

            	
              Patent Rights,
      etc.

            


    

     

    
      	
              42.1

            	
              Indemnity Against
      Patent Infringement

            


    

     

    The
Contractor shall indemnify the Purchaser against all actions, claims, demands,
costs, charges and expenses arising from or incurred by reason of any
infringement or alleged infringement of patent, registered design, copyright,
trade mark name or other intellectual property right protected in Malaysia or
elsewhere by the use or possession of any Plant supplied by the Contractor but
such indemnity shall not cover any use of the Works otherwise than for the
purpose indicated by or reasonably inferred from the Contract or any
infringement which is due to the use of any Plant in association or combination
with any other plant not supplied by the Contractor.

     

    It is
expressly agreed that the Purchaser shall have the full benefit of any indemnity
provided by Axens and Oiltech to the Contractor against all actions, claims,
demands, costs, charges and expenses arising from or incurred by reason of any
infringement or alleged infringement of patent, registered design, copyright,
trade mark name or other intellectual property right protected in Malaysia or
elsewhere by the use or possession of any Plant supplied by such
Sub-contractor.

     

    
      	
              42.2

            	
              Conduct of
      Proceedings

            


    

     

    If any
claim is made or action brought against the Purchaser arising out of the matters
referred to in this Clause, the Contractor shall be notified thereof and may at
its own expense conduct all negotiations for the settlement of the same, and any
litigation that may arise therefrom subject to liaison with the
Purchaser.  The Purchaser shall not, unless and until the Contractor
shall have failed to take over the conduct of the negotiations or litigation
make any admission which might be prejudicial thereto.  The conduct by
the Contractor of such negotiations or litigation shall be conditional upon the
Contractor having first given to the Purchaser such reasonable security as shall
from time to time be required by the Purchaser to cover the amount ascertained
or agreed or estimated, as the case may be, of any compensation, damages,
expenses and costs for which the Purchaser may become liable.  The
Purchaser shall, at the request of the Contractor, afford all available
assistance for the purpose of contesting any such claim or action, and shall be
repaid all reasonable expenses incurred in so doing.


    
      
         


      

      
        68

        
          

        

      

      
         


      

    

     

    
      	
              42.3

            	
              Not
      used

            


    

     

    
      	
              42.4

            	
              Effect of
      Infringement

            


    

     

    If the
Purchaser is prevented from using the Works in consequence of any infringement
of patent, registered design, copyright, trade mark, trade name or other
intellectual property right and the Contractor in accordance with Clause 42.2 is
unable within 90 days after notice thereof from the Purchaser to procure the
removal at its own expense of the cause of prevention then, in case of an
infringement which is the subject of the Contractor's indemnity to the Purchaser
under Clause 42.1, the Purchaser may treat such prevention as a default by the
Contractor and exercise the powers and remedies available to him under Clause
46.

     

    
      	
              43

            	
              Accidents and
      Damage

            


    

     

    
      	
              43.1

            	
              Care of
      Works

            


    

     

    Subject
to Clause 43.2, the Contractor shall bear and be responsible for all risk of
loss or damage to the Works and any Plant goods or materials notwithstanding
that the same may have become the property of the Purchaser and for all risks
relating to and the care of the Works and the Site or any part thereof until the
date of Taking Over as stated in the Taking Over Certificate applicable thereto
or the earlier taking over or use thereof by the Purchaser pursuant to Clause
29, 30 and 31.  However the Contractor shall be responsible for the
care of the Plant or any part thereof for the period during which it carries out
any outstanding work pursuant to its obligations under the Contract after the
Taking Over.  In the event of termination of the Contract in
accordance with these Conditions, responsibility for the care of the Works shall
pass to the Purchaser upon expiry of the termination procedures described in
Clause 46.1.6.

     

    
      	
              43.2

            	
              Making Good Loss or
      Damage to the Works

            


    

     

    If any
part of the Works shall suffer loss or damage whilst the Contractor· has
responsibility for the care thereof, except to the extent that such loss or
damage shall be caused by the Purchaser's Risks (defined in Clause 45) or an
event of Force Majeure according to Clause 49.1, the same shall be made good by
the Contractor at its own expense.  The Contractor shall also at its
own expense (subject as aforesaid) make good any loss or damage to the Works
caused by him in the course of completing any outstanding work or of complying
with its obligations under Clause 36.

     

    In the
event that any part of the Works shall suffer loss or damage whilst the
Contractor has responsibility for the care thereof which is caused by any of the
Purchaser's Risks or an event of Force Majeure according to Clause 49.1, the
same shall, if required by the Purchaser within 6 (six) months after the
happening of the event giving rise to loss or damage, be made good by the
Contractor.  Such making good shall be at the expense of the Purchaser
at a price, as may be agreed between the Contractor and the Purchaser, failing
which the price (if any) shall be determined by the Engineer.  The
price or sum so agreed or determined shall be added to the Contract
Price.  Any extension of the Time for Completion and/or in a suitably
expeditious manner of making good, may also be agreed between the Contractor and
the Purchaser, failing which they shall be determined by the
Engineer.

     

    Purchaser
shall be responsible for all risk of loss or damage to the Works and any Plant
goods or materials, whilst the Purchaser has responsibility for the care thereof
in accordance with the provisions hereof.


    
      
         


      

      
        69

        
          

        

      

      
         


      

    

    
      	
              43.3

            	
              Injury to Persons and
      Property Whilst the Contractor has Responsibility for Care of the
      Works

            


    

     

    Except as
hereinafter mentioned the Contractor shall be liable for and shall indemnify the
Purchaser against all claims in respect of personal injury or death and in
respect of loss of or damage to any property (other than the Works) which arises
out of or in consequence of the execution of the Works by the Contractor whilst
the Contractor has responsibility for the care thereof and against all demands,
costs, charges and expenses arising in connection therewith.  The
Contractor shall not be liable under this Clause for, and the Purchaser shall
indemnify him from and against, any claims in relation to death or personal
injury or loss of or damage to property to the extent that the same results from
any acts or negligence of the Purchaser, its agents, servants or other
contractors (not being the Contractor's servants, agents or
sub-contractors).

     

    
      	
              43.4

            	
              Injury and Damage
      After Responsibility for Care of the Works Passes to
      Purchaser

            


    

     

    If there
shall occur any death or injury to any person or loss of or damage to any
property (other than the Works) while the Purchaser is responsible for the care
of the Works, the Contractor shall be liable for and shall indemnify the
Purchaser against all such claims and all actions, demands, costs, charges and
expenses arising in connection therewith to the extent that such death or
personal injury or loss of or damage to property was caused by the negligence or
breach of statutory duty of the Contractor, its Sub-contractors, servants or
agents or by defective design materials or workmanship but not
otherwise.

     

    
      	
              43.5

            	
              Accidents or Injury to
      Workmen

            


    

     

    The
Contractor shall indemnify the Purchaser against all actions, suits, claims,
demands, costs, charges and expenses arising in connection with the death of or
injury to any person employed by the Contractor or its Sub-contractors for the
purposes of the Works.  This indemnity shall not apply to the extent
that any death or injury results from acts or negligence or breach of statutory
duty of the Purchaser, its servants, agents or other contractors for whom the
Purchaser is responsible.  The Purchaser shall indemnify the
Contractor against all claims, damages, costs, charges and expenses to such
extent the Purchaser is responsible.

     

    
      	
              43.6

            	
              Procedure for
      Claims

            


    

     

    In the
event of any claim being made against the Purchaser arising out of the matters
referred to and in respect of which it appears that the Contractor may be liable
under this Clause 43 the Contractor shall be promptly notified thereof and may
at its own expense conduct all negotiations for the settlement of the same and
any litigation that may arise in relation thereto.  The Purchaser
shall not, unless and until the Contractor shall have failed to take over the
conduct of the negotiations or litigation, make any admission which might be
prejudicial thereto.  The conduct by the Contractor of such
negotiations or litigation shall be conditional upon the Contractor having first
given to the Purchaser such reasonable security as shall from time to time be
required by him to cover the amount ascertained or agreed or estimated, as the
case may be, of any compensation, damages, expenses and costs for which the
Purchaser may become liable.  The Purchaser shall at the request of
the Contractor afford all available assistance for any such purpose and shall be
repaid all Costs reasonably incurred in so doing.

     

    
      	
              43.7

            	
              Survival of
      Termination

            


    

     

    The
provisions of this Clause 43 shall survive termination of this Contract;
provided that neither Party shall have any indemnity obligation pursuant to
Clause 42 and 43 for any claim arising out of or resulting from events or
circumstances occurring after the expiration of the Defects Liability Period;
and provided, further, that neither Party shall have any indemnity obligation
pursuant to Clause 42 and 43 unless notice of any such claim for indemnity by
either Party is received by the indemnifying Party prior to the date that is 5
(five) years after the expiration of the Defects Liability Period.

     

    
      
         


      

      
        70

        
          

        

      

      
         


      

    

     

    
      	
              44

            	
              Limitation of
      Liability and Indirect or Consequential
  Damage

            


    

     

    
      	
              44.1

            	
              Mitigation of
      Loss

            


    

     

    In all
cases the Party establishing or alleging a breach of contract or a right to be
indemnified in accordance with the Contract shall be under a duty to take
reasonable measures to mitigate the loss which has occurred or might occur
provided that it can do so without unreasonable inconvenience or
cost.

     

    
      	
              44.2

            	
              Indirect or
      Consequential Damage

            


    

     

    Except as
expressly provided in the Contract pursuant to Clauses 34 and 35, either Party
shall not be liable to the other Party by way of indemnity or by reason of any
breach of the Contract or of legal duty or by reason of tort (including but not
limited to negligence) or otherwise for any loss of profit, loss of use, loss of
production, loss of contracts or for any indirect or consequential loss or
damage whatsoever that may be suffered by the other of them.

     

    This
Clause 44.2 shall not affect any liability of either Party arising as a result
of the fraud, deliberate default or reckless misconduct of such
Party.

     

    
      	
              44.3

            	
              Aggregate
      Liability

            


    

     

    In no
circumstances shall the aggregate liability of the Contractor to the Purchaser
for liquidated damages under Clauses 34 and 35 in respect of any and all acts or
defaults or delays or failures giving rise to such liquidated damages, exceed
the amount named in Appendix 2 as the Limit of Total Liquidated
Damages.  No payment to the Purchaser by the Contractor nor any
deduction from payments to the Contractor by the Purchaser for liquidated
damages under Clauses 34 and 35 shall prejudice any other right of the Purchaser
under the Contract to recover any loss or damage caused by the Contractor's
default or breach of the Contract, nor relieve the Contractor of any other
obligation under the Contract including without limitation the obligation to
complete the Works in accordance with the Contract.

     

    
      	
              44.4

            	
              Limit of Total
      Liability

            


    

     

    Except
for any liability arising as a result of fraud, deliberate default or reckless
misconduct, the total liability of the Contractor to the Purchaser shall never
exceed the Contract Price.  Provided that, in the event of a liability
arising pursuant to Article 10 of the TTA with Axens, the liability for the
Contractor shall be limited to the amounts specified in Article 10.5 of the
TTA.

     

    
      	
              44.5

            	
              Limit of
      Liability

            


    

     

    The
Purchaser and the Contractor intend that their respective rights, obligations
and liabilities as provided for in the Contract should be exhaustive of the
rights, obligations and liabilities of each of them to the other arising out of,
under or in connection with the Contract or the Works, whether such rights,
obligations and liabilities arise in respect or in consequence of a breach of
contract or of statutory duty or any tortuous or negligent act or omission which
gives rise to a remedy at common law or in equity.  Accordingly,
except as expressly provided for in the Contract and except for any liability of
either Party arising as a result of the gross negligence or wilful misconduct of
such Party, neither Party shall be obligated or liable to the other in respect
of any damages or losses suffered by the other which arises out of, under or in
connection with this Contract or the Works, whether by reason of or in
consequence of any breach of contract or of statutory duty or tortous or
negligent act or omission and accordingly any releases or limitation of
liability expressed herein shall apply notwithstanding the negligence, strict
liability, fault or breach of contract of the Party whose liability is so
released or limited.

     

    
      
         


      

      
        71

        
          

        

      

      
         


      

    

     

    
      	
              45

            	
              Purchaser's
      Risks

            


    

     

    The
"Purchaser's Risks" are:

     

    
      	
               
      

            	
              a.

            	
              to
      obtain the requisite rights to ownership or control over or use of the
      land areas comprising the Site which are required by the Contractor to
      carry out the Contractor's obligations under the Contract at the
      Site;

            


    

     

    
      	
               
      

            	
              b.

            	
              the
      risk of loss of or damage to any part of the Works during the period that
      such part is deemed to have been taken over by the Purchaser in accordance
      with Clause 31.2;

            


    

     

    
      	
               
      

            	
              c.

            	
              any
      act or omission by its employees except where the Purchaser and/or its
      employees have followed the instructions so provided by the Contractor
      and/or its Subcontractors.

            


    

     

    
      	
              46

            	
              Termination

            


    

     

    
      	
              46.1

            	
              Termination Upon
      Contractor and Purchaser
Events

            


    

     

    
      	
            	
              46.1.1

            	
              Contractor Remediable
      Events

            


    

     

    Each of
the events described below shall be a Contractor Remediable Event:

     

    
      	
               
      

            	
              (a)

            	
              The
      failure of the Contractor within thirty (30) days after the Commencement
      Date to commence the Works as evidenced by the lack of undertaking of the
      activities usually and customarily undertaken under internationally
      accepted construction standards and practices in connection with the
      commencement of construction of projects similar to the
    Plant.

            


    

     

    
      	
               
      

            	
              (b)

            	
              The
      failure of the Contractor to achieve the Final Performance Acceptance or
      Taking Over without reasonable cause on or before sixty (60) days, or such
      other mutually agreeable date, after the Time for Completion for the
      Plant.

            


    

     

    
      	
               
      

            	
              (c)

            	
              After
      commencement of construction of the Plant, a wrongful general suspension
      or abandonment by the Contractor of the construction of the Plant for more
      than seven (7) consecutive days.

            


    

     

    
      	
               
      

            	
              (d)

            	
              The
      breach by the Contractor of any of its other obligations under this
      Contract which is not remedied within thirty (30) days after notice from
      the Purchaser to the Contractor stating that such a breach has occurred,
      identifying the breach in question in reasonable detail and demanding
      remedy thereof.

            


    

     

    
      	
               
      

            	
              (e)

            	
              The
      failure by the Contractor to make any payment under the Contract when due
      and payable.

            


    

     

    
      	
            	
              46.1.2

            	
              Contractor
      Non-Remediable Events

            


    

     

    Each of
the events set forth below shall be a Contractor Non-Remediable
Event:

     

    
      	
               
      

            	
              (a)

            	
              The
      occurrence of any of the following
events:

            


    

     

    
      	
               
      

            	
              (i)

            	
              The
      passing of a resolution for the bankruptcy, insolvency, winding up,
      liquidation or other similar proceedings relating to the
      Contractor;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              The
      appointment of a trustee, liquidator, custodian, provisional manager or
      similar person in a proceeding referred to in Clause 46.1.2(a)(i) above,
      which appointment has not been set aside or stayed within sixty (60) days
      of such appointment;

            


    

     

    
      
         


      

      
        72

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (iii)

            	
              The
      making by a court having jurisdiction of an order winding up or otherwise
      confirming the bankruptcy or insolvency of the Contractor, which order has
      not been set aside or stayed within sixty (60)
  days;

            


    

     

    
      	
               
      

            	
              (iv)

            	
              The
      un-enforceability, cancellation or other failure of the Advance Payment
      Guarantee, Corporate Guarantees or the Performance Bond, or the bankruptcy
      or other proceedings of the type described in the immediately preceding
      Clauses 46.1.2(i), (ii) and (iii) affecting the guarantor, provided that,
      in either case the Contractor has not provided a replacement guarantee or
      bond acceptable to the Purchaser within five (5) business days after the
      occurrence of any such event;

            


    

     

    
      	
               
      

            	
              (v)

            	
              The
      assignment of this Contract, other than to the guarantor of the documents
      described in the immediately preceding Clause 46.1.2(iv), by the
      Contractor in violation of its
terms;

            


    

     

    
      	
               
      

            	
              (b)

            	
              After
      a Contractor Remediable Event shall have occurred and a Remedial Notice
      shall have been given by the Purchaser to the
  Contractor:

            


    

     

    
      	
               
      

            	
              (i)

            	
              In
      the case of a Contractor Remediable Event described in Clause 46.1.1(a),
      the failure of the Contractor to commence construction of the Plant
      (evidenced as provided in Clause 46.1.1(a)) within fifteen (15) days after
      receipt of the Remedial Notice;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              In
      the case of a Contractor Remediable Event described in Clause 46.1.1(c),
      the failure of the Contractor to resume construction of the Plant within
      fifteen (15) days after receipt of the Remedial
  Notice;

            


    

     

    
      	
               
      

            	
              (iii)

            	
              In
      the case of a Contractor Remediable Event described in Clause 46.1.1(e),
      the failure of such breach to have been remedied by the Contractor within
      thirty (30) days after receipt of the Remedial Notice;
  and

            


    

     

    
      	
               
      

            	
              (iv)

            	
              In
      the case of a Contractor Remediable Event described in Clause 46.1.1(b) or
      Clause 46.1.1(d):

            


    

     

    
      	
               
      

            	
              (1)

            	
              the
      failure of the Contractor to furnish the Purchaser with a Remedial
      Programme within the time provided in Clause 46.1.5(b);
  or

            


    

     

    
      	
               
      

            	
              (2)

            	
              the
      failure of the Contractor to implement such Remedial Programme with due
      diligence; or

            


    

     

    
      	
               
      

            	
              (3)

            	
              the
      manifest or demonstrated inability of the Remedial Programme so furnished
      to be capable of reasonable implementation;
or

            


    

     

    
      	
               
      

            	
              (4)

            	
              the
      manifest or demonstrated inability to remedy the Contractor Remediable
      Event notwithstanding the exercise of due diligence of the Contractor in
      implementing the Remedial Programme provided, however, that the foregoing
      shall not be considered to be a Contractor Non-Remediable Event in the
      case of Clause 46.1.l(b) if, subject to Clause 46.1.2(c), the Commercial
      Operation Date shall have occurred or in the case of Clause 46.1.l(d) if,
      subject to Clause 46.1.2(d), the breach in question shall have been
      remedied.

            


    

     

    
      
         


      

      
        73

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (c)

            	
              The
      failure of the Commercial Operation Date to occur by the date that is 120
      (one hundred twenty) days, or such other mutually agreeable date, after
      the expiry of the Time for Completion
or

            


    

     

    
      	
               
      

            	
              (d)

            	
              The
      failure of any breach described in Section 46.1.1(d) to have been remedied
      within thirty (30) days after receipt of a Remedial Notice in respect
      thereof.

            


    

     

    
      	
            	
              46.1.3

            	
              Purchaser Remediable
      Event

            


    

     

    Each of
the events described below shall be a Purchaser Remediable Event:

     

    
      	
               
      

            	
              (a)

            	
              The
      failure by the Purchaser to make any payment under the Contract when due
      and payable to the Contractor.

            


    

     

    
      	
               
      

            	
              (b)

            	
              The
      breach by the Purchaser of any of its other obligations under this
      Contract which is not remedied within thirty (30) days after notice from
      the Contractor to the Purchaser stating that such a breach has occurred,
      identifying the breach in question in reasonable detail and demanding
      remedy thereof.

            


    

     

    
      	
            	
              46.1.4

            	
              Purchaser
      Non-Remediable Event

            


    

     

    Each of
the events set forth below shall be a Purchaser Non-Remediable
Event:

     

    
      	
               
      

            	
              (a)

            	
              The
      occurrence of any of the following
events:

            


    

     

    
      	
               
      

            	
              (i)

            	
              The
      passing of a resolution for the bankruptcy, insolvency, winding up,
      liquidation or other similar proceedings relating to the
      Purchaser;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              The
      appointment of a trustee, liquidator, custodian, provisional manager or
      similar person in a proceeding referred to in Clause (i) above, which
      appointment has not been set aside or stayed within sixty (60) days of
      such appointment;

            


    

     

    
      	
               
      

            	
              (iii)

            	
              The
      making by a court having jurisdiction of an order winding up or otherwise
      confirming the bankruptcy or insolvency of the Purchaser, which order has
      not been set aside or stayed within sixty (60)
  days;

            


    

     

    
      	
               
      

            	
              (b)

            	
              Not
      used.

            


    

     

    
      	
               
      

            	
              (c)

            	
              The
      occurrence of any of the following events after a Purchaser Remediable
      Event shall have occurred and a Remedial Notice shall have been given by
      the Contractor to the Purchaser:

            


    

     

    
      	
               
      

            	
              (i)

            	
              In
      the case of a Purchaser Remediable Event described in Clause 46.1.3(a),
      the failure of the Purchaser to make such payment within thirty (30) days
      after receipt of the Remedial Notice;
and

            


    

     

    
      	
               
      

            	
              (ii)

            	
              In
      the case of a Purchaser Remediable Event described in Clause
      46.1.3(b):

            


    

     

    
      	
               
      

            	
              (1)

            	
              The
      failure of the Purchaser to furnish the Contractor with a Remedial
      Programme within the time provided in Clause 46.1.5(b);
  or

            


    

     

    
      	
               
      

            	
              (2)

            	
              The
      failure of the Purchaser to implement such Remedial Programme with due
      diligence; or

            


    

     

    
      
         


      

      
        74

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (3)

            	
              The
      manifest or demonstrated inability of the Remedial Programme so furnished
      to be capable of reasonable implementation;
or

            


    

     

    
      	
               
      

            	
              (4)

            	
              The
      manifest or demonstrated inability to remedy the Purchaser Remediable
      Event notwithstanding the exercise of due diligence in implementing the
      Remedial Programme, provided, however, that the foregoing shall not be
      considered to be a Purchaser Non-Remediable Event in the case of Clause
      46.1.3(b) if, subject to Clause 46.1.4(d), the breach in question shall
      have been remedied.

            


    

     

    
      	
               
      

            	
              (d)

            	
              The
      failure of any breach described in Clause 46.1.3(b) to have been remedied
      within thirty (30) days after receipt of a Remedial Notice in respect
      thereof.

            


    

     

    
      	
            	
              46.1.5

            	
              Remedial
      Procedures

            


    

     

    Upon the
occurrence of a Contractor Remediable Event or a Purchaser Remediable Event, the
following procedures shall be strictly followed by the Parties:

     

    
      	
               
      

            	
              (a)

            	
              The
      Purchaser may give notice to the Contractor of a Contractor Remediable
      Event and the Contractor may give notice to the Purchaser of a Purchaser
      Remediable Event (a "Remedial
Notice").

            


    

     

    
      	
               
      

            	
              (b)

            	
              Upon
      the Contractor's receipt of a Remedial Notice notifying the Contractor of
      a Contractor Remediable Event described in Clauses 46.1.1(b) or 46.1.1(d)
      and upon the Purchaser's receipt of a Remedial Notice notifying the
      Purchaser of a Purchaser Remediable Event described in Clause 46.1.3(b),
      the Party receiving the Remedial Notice shall prepare and furnish to the
      other Party as promptly as practicable, and in any event within fifteen
      (15) days, a detailed programme (the "Remedial Programme") for the
      remedying of the Remediable Event giving rise to such Remedial
      Notice.

            


    

     

    
      	
            	
              46.1.6

            	
              Termination Upon
      Contractor or Purchaser Non-Remediable
  Events

            


    

     

    Upon the
determination that a Contractor Non-Remediable Event or a Purchaser
Non-Remediable Event has occurred, the following procedure shall
apply:

     

    
      	
               
      

            	
              (a)

            	
              The
      Party which is not the subject of such event may give a notice (the
      "Termination Notice") to the other Party, specifying in reasonable detail
      the Contractor Non-Remediable Event or the Purchaser Non-Remediable Event,
      as the case may be, giving rise to such Termination Notice, and the date
      on which the Party giving such Termination Notice proposes to terminate
      this Contract, which date shall not be less than thirty (30) days after
      the date of such notice;

            


    

     

    
      	
               
      

            	
              (b)

            	
              During
      the period of thirty (30) days (or such longer period set forth in the
      Termination Notice or as the Parties may agree) following the giving of
      such Termination Notice, the Parties shall consult as to what steps shall
      be taken with a view to mitigating or remedying the consequences of the
      relevant event having regard to all the
  circumstances;

            


    

     

    
      	
               
      

            	
              (c)

            	
              If
      the Party receiving the Termination Notice intends to raise a dispute
      regarding the right to give effect to the Termination Notice, such Party
      shall within fifteen (15) days of receipt of the Termination Notice so
      inform the Party giving the Termination
Notice.

            


    

     

    
      
         


      

      
        75

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (d)

            	
              At
      the expiry of the period referred to in Clause 46.1.6(b) and
      unless:

            


    

     

    
      	
               
      

            	
              (i)

            	
              The
      Parties shall have otherwise agreed;
or

            


    

     

    
      	
               
      

            	
              (ii)

            	
              The
      event giving rise to the Termination Notice shall have been remedied;
      or

            


    

     

    the Party
having given the Termination Notice may terminate the Contract by giving written
notice thereof to the other Party, whereupon the Contract shall terminate on the
date specified for termination in such notice or such later date as the Parties
shall have agreed and Clause 46.3 shall apply.

     

    
      	
              46.2

            	
              Termination Other Than
      Upon Contractor Non-Remediable Events or Purchaser Non-Remediable
      Events

            


    

     

    
      	
            	
              46.2.1

            	
              Termination in the
      Event of Certain Events of Force
Majeure

            


    

     

    If:

     

    
      	
               
      

            	
              (i)

            	
              Any
      event of Force Majeure prevents, or the Contractor and the Purchaser agree
      that such an event of Force Majeure will prevent, the Contractor from
      constructing the Project for a continuous period of more
    than:

            


    

     

    
      	
               
      

            	
              a)

            	
              1200
      days in the case of a Direct Malaysian Political Event;
  or

            


    

     

    
      	
               
      

            	
              b)

            	
              150
      days in the case of an Indirect Political Event;
  or

            


    

     

    
      	
               
      

            	
              c)

            	
              180
      days in the event of a Non-Political Event;
or

            


    

     

    
      	
               
      

            	
              (ii)

            	
              An
      event of Force Majeure shall have occurred and the Parties shall have
      followed the procedures described in Clause 49.2(c) and the Parties do not
      agree on an adjustment of Contract
Price,

            


    

     

    in the
case of (i), either Party, or in the case of (ii), the Purchaser, may terminate
this Contract upon ninety (90) days prior written notice to the other
Party.

     

    
      	
            	
              46.2.2

            	
              Termination for
      Convenience

            


    

     

    The
Purchaser may terminate the Contract for its convenience at any time by
providing not less than 90 (ninety) days' prior written notice thereof to the
Contractor.  Upon receipt of such notice the Contractor shall, unless
the notice directs otherwise, (i) discontinue the Works in an orderly and
organized manner on the date and to the extent specified in such notice and (ii)
place no further orders or subcontracts for the Works.

     

    
      	
              46.3

            	
              Consequences of
      Termination

            


    

     

    
      	
               
      

            	
              46.3.1

            	
              (a)

            	
              In
      the event of termination of this Contract pursuant to Clause 46.1.6 due to
      a Contractor Non-Remediable Event, as soon as practicable after the
      Purchaser has given written notice referred to in the last paragraph of
      Clause 46.1.6 to terminate the Contract to the Contractor, the Engineer
      shall, by or after reference to the Parties and after making such
      enquiries as it thinks fit, value the Works and all the sums then due to
      the Contractor as at the date of termination in accordance with the
      principles of Clause 39 and certify the amount thereof.  The
      amount so certified is herein called "the Termination
    Value".

            


    

     

    
      
         


      

      
        76

        
          

        

      

      
         


      

    
 

    If
completion of the Works is reasonably practicable, the Purchaser shall not be
liable to make any further payments to the Contractor until the Cost of
completing the Works and all other costs (including without limitation profits
payable to any replacement contractor retained to complete the Works and any
increase in interest accruing during construction) actually incurred and losses
sustained (subject to Clause 44) by the Purchaser in completing the Biodiesel
Project substantially in the manner as envisaged hereunder and all other sums to
which the Purchaser is entitled under or by virtue of the Contract have been
reasonably ascertained and the amount thereof certified by the
Engineer.  If the amount so certified when added to the total amount
already paid to the Contractor (such aggregate amount being hereinafter called
"the Cost of Completion") as at the date of termination exceeds the total amount
which the Engineer certifies would have been payable under the Contract to the
Contractor for the execution of the Works (provided that completion would have
been practicable) ("the Notional Contract Price"), the Engineer shall certify
each excess and the Contractor shall upon demand pay to the Purchaser the amount
of such excess.  Any such excess shall be deemed a debt due by the
Contractor to the Purchaser and shall be recoverable accordingly by the
Purchaser with no deduction or set off whatsoever.  If there is no
such excess the Contractor shall be entitled to be paid the lower
of:

     

    
      	
               
      

            	
              (1)

            	
              The
      Termination Value less the total of all payments received by the
      Contractor as at the date of termination less the Contactor's liability in
      respect of liquidated damages at the date of the termination of the
      Contract, or

            


    

     

    
      	
               
      

            	
              (2)

            	
              the
      Notional Contract Price less the Cost of Completion less the Contractor's
      liability in respect of liquidated damages at the date of the termination
      of the Contract.

            


    

     

    In the
event of termination of this Contract pursuant to Clause 46.1.6 due to a
Contractor Non-Remediable Event and if such termination renders the Project no
longer feasible then the Purchaser shall have the right to reject and return the
Works to the Contractor, and recover from the Contractor (a) all sums paid to
the Contractor and (b) subject to provisions of Clause 44 hereof all other costs
occasioned or incurred by the Purchaser as a direct result of such
termination.

     

    
      	
               
      

            	
              (b)

            	
              In
      the event of termination of the Contract pursuant to Clause 46.1.6 due to
      a Purchaser Non-Remediable Event or pursuant to Clauses 46.2.1 and 46.2.2,
      the Engineer shall certify, and the Purchaser shall pay to the Contractor
      the sum of (a) the Contract Value of the Works performed by the Contractor
      through the date on which the notice of such termination is received by
      the Contractor, and (b) all other costs occasioned or incurred by the
      Contractor as a direct result of such termination, less the cumulative
      total of amounts previously certified under Clause 39.2 and paid pursuant
      to Clause 40.1.

            


    

     

    Provided
that if the Contract is terminated pursuant to clause 46.1.6 or 46.2.1 or
46.2.2, then, in no circumstances, shall the total amount received by the
Contractor under the Contract exceed the Contract Price as adjusted in
accordance with these Conditions.

     

    
      	
            	
              46.3.2

            	
              Plant, Materials and
      Goods

            


    

     

    Upon
payment, except in the case of the Contractor's default where such transfer
shall be made irrespective of the time of payment, the Contractor shall transfer
to the Purchaser, upon request free from and clear of all liens and
encumbrances, all of the Purchaser's right, title and interest in the Plant,
insofar as they are part of or used in the Plant, including and without
limitation;

     

    
      
         


      

      
        77

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (i)

            	
              all
      plant, materials and goods delivered to the site as well as all
      consumables and spare parts;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              all
      intangible personal property, including patents, patent licences, patent
      applications, tradenames, trademarks, trademark registrations and
      applications therefor, trade secrets, copyrights and any other
      intellectual property rights (subject to the confidentiality provisions of
      the Contract);

            


    

     

    
      	
               
      

            	
              (iii)

            	
              computerised
      and non-computerised records, reports, data, files and
      information;

            


    

     

    
      	
               
      

            	
              (iv)

            	
              all
      drawings, test results, and documents (including those referred to in
      Clause 13.10, 15.6 and 53.9) required to be provided by the Contractor
      under the Contract;

            


    

     

    
      	
               
      

            	
              (v)

            	
              all
      warranties of equipment, materials and
work;

            


    

     

    
      	
               
      

            	
              (vi)

            	
              all
      contract rights and insurance
policies;

            


    

     

    
      	
               
      

            	
              (vii)

            	
              all
      work in progress under contracts with vendors, suppliers, contractors and
      subcontractors; and

            


    

     

    
      	
               
      

            	
              (viii)

            	
              all
      rights with respect to any insurance proceeds payable to or for the
      account of the Contractor, but unpaid at the date of termination of the
      Contract, in respect of the Contractor's right, title and interest in the
      Project to the extent the loss/damage has not been repaired or
      replaced.

            


    

     

    
      	
            	
              46.3.3

            	
              Survival

            


    

     

    The
provisions of this Clause 46.3 shall survive the termination of the
Contract.

     

    
      	
            	
              46.3.4

            	
              Other Rights and
      Remedies

            


    

     

    Upon the
breach by either Party hereto of any covenant or warranty hereunder, the Party
damaged by any such default or breach may, in its sole discretion, in addition
to exercising any other remedies provided for hereunder, proceed in accordance
with Clause 50 to protect and enforce its rights, to recover any damages to
which it may be entitled (including all costs and expenses reasonably incurred
in the exercise of its remedy) or to seek specific performance by the other
Party of such other Party's obligations under the Contract.

     

    
      	
              47

            	
              Insurance

            


    

     

    
      	
              47.1

            	
              Contractor's
      Insurance

            


    

     

    Subject
to the exercise of the option in Clause 13.24 by the Purchaser, without limiting
its obligations, responsibilities and liabilities under the Contract, the
Contractor, at its sole cost and expense, shall obtain and maintain the policies
of insurance described in Clause 47.1 and any other insurances statutorily
required in Malaysia during the term of the Contract.  Nothing herein
shall prevent the Contractor, at its sole cost and expense, from procuring
insurance coverages in addition to those specified hereunder.

     

    The
insurance referred to in Clause 47.1 shall include as the insured parties, the
Purchaser, the Engineer, their employees, agents, directors and such other
parties as the Purchaser may elect.

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              47.1.1

            	
              Workers Compensation
      Insurance

            


    

     

    In an
amount at least to cover all legal liabilities in respect of compensation and
damages and upon terms and conditions to comply with the workers compensation
and occupational disease laws and regulations of Malaysian respect of any local
Malaysian employees or to a level including benefits equal to those required by
applicable workers compensation law of the place of hire of any expatriate
personnel or where expatriate personnel may reside or of the place where the
employer of the expatriate personnel is domiciled whichever provide the employee
with the most advantageous level of benefit.

     

    The
period of insurance shall commence from the Commencement Date until the
Contractor has been discharged in full from its obligations, responsibilities
and liabilities under the Contract.

     

    
      	
            	
              47.1.2

            	
              Employer's Liability
      Insurance

            


    

     

    Covering
illness of, injury to or death of the Contractor's personnel while performing
its obligations under this Contract and to cover all legal liabilities in
respect of compensation or damage (without any excess) for each occurrence,
unlimited in the aggregate during the period.

     

    The
period of insurance shall commence from the Commencement Date until the
Contractor has been discharged in full from its obligations, responsibilities
and liabilities under the Contract.

     

    
      	
            	
              47.1.3

            	
              Automobile Liability
      Insurance

            


    

     

    Covering
legal liability for damage to property of, or illness or death or bodily injury
to, third parties arising out of the purchasership, use or maintenance of motor
vehicles owned, leased or non-owned by the Contractor or its Subcontractors of
any tier whilst used in the performance of its obligations under this Contract
and to cover all legal liabilities in respect of compensation or damage (without
any excess) for each occurrence, unlimited in the aggregate during the
period.

     

    The
period of insurance shall commence from the Commencement Date until the
Contractor has been discharged in full from its obligations, responsibilities
and liabilities under the Contract.

     

    
      	
            	
              47.1.4

            	
              Not
      Used

            


    

     

    
      	
            	
              47.1.5

            	
              Contractor's
      Equipment

            


    

     

    Covering
loss or damage to the Contractor's Equipment incurred whilst used in the
performance of its obligations under this Contract on all risks basis and
covering full replacement value of the Contractor's Equipment at the time of
loss.

     

    Certain
specifically identified and scheduled equipment as agreed by the Parties may be
covered by the insurance described in Clause 47.2.1.

     

    The
Contractor shall effect and maintain the insurance during the term of the
Contract where and when necessary to ensure the above mentioned
coverage.

     

    
      	
            	
              47.1.6

            	
              Construction/Erection
      All Risks (CEAR) Insurance:

            


    

     

    
      	
               
      

            	
              (a)

            	
              Coverage:

            


    
 

    This
insurance shall cover physical loss of or damage to any part of permanent and
temporary Works under construction by the Contractor and/or its Subcontractors,
including materials and equipment supplied for incorporation therein at all
locations where fabrication, construction, and assembly are conducted including
any warehousing and/or interim warehousing facilities.  Scope of cover
is to be all risks subject to standard exclusions and
sublimits.  Faulty design, faulty workmanship and faulty material
coverage to be included to the extent available under the London Market DE5
design cover wording or its equivalent.

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

       

    

    This
insurance shall cover as a separate section physical loss or damage to the
Contractor's Equipment having been delivered to the Site for the performance of
the Works.  Only those items which have been advised by the Contractor
and incorporated under a schedule of Contractor's Equipment attached to the
policy of this insurance shall be covered under this insurance.

     

    
      	
               
      

            	
              (b)

            	
              Amount
      Insured:

            


    

     

    Amount
Insured shall be the full reinstatement or replacement value of the
Plant.

     

    
      	
               
      

            	
              (c)

            	
              Period:

            


    

     

    Commencing
on the Commencement Date until the expiry of the Defects Liability Period
(including any extension thereof).

     

    
      	
            	
              47.1.7

            	
              Marine
      Cargo Insurance:

            


    

     

    
      	
               
      

            	
              (a)

            	
              Coverage:

            


    

     

    This
insurance shall cover all risks of physical loss of or damage to the materials,
equipment and supplies for incorporation or consumption in the Works, including
the Plant and certain Contractor's Equipment specifically identified and
scheduled as such, occurring during marine, air and/or inland transit at least
to the extent provided for by the London Institute Cargo Clauses "A" or its
equivalent.

     

    
      	
               
      

            	
              (b)

            	
              Amount
      Insured:

            


    

     

    Replacement
value equivalent to a minimum 100% of CIF value of the materials and
equipment.

     

    
      	
               
      

            	
              (c)

            	
              Voyage:

            


    

     

    This
insurance shall commence from the time the materials, equipment and supplies
leave the originating factory, warehouse or place of storage "ex works" and
continue during the ordinary course of marine, air and/or inland transit
including any and all interim warehousing, storage and/or transshipment and
terminate at point of delivery at the Site.

     

    
      	
            	
              47.1.8

            	
              Comprehensive
      General Liability Insurance:

            


    

     

    
      	
               
      

            	
              (a)

            	
              Coverage:

            


    

     

    Coverages
to include but not be limited to all legal, contractual and statutory
liabilities for damage to property of or illness, death or bodily injury to or
personal injury to third parties arising out of the construction of the Works,
including the Plant.

     

    
      	
               
      

            	
              (b)

            	
              Amount
      Insured:

            


    

     

    US$
10,000 (United States Dollars Ten Thousand Only) per anyone occurrence,
unlimited in the aggregate during the period.

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              Period:

            


    

     

    Commencing
on the Commencement Date until the expiry of the Defects Liability Period
(including any extension thereof).

     

    
      	
              47.2

            	
              Purchaser'
      Insurance

            


    

     

    The
Purchaser may, at its sole discretion, effect and pay for any insurance policy
to cover losses due to delay in start-up (or more commonly known as advance loss
of profit policies).

     

    
      	
              47.3

            	
              General Provisions
      Regarding Insurance

            


    

     

    
      	
            	
              47.3.1

            	
              The
      Purchaser and the Contractor shall be the joint policyholders as the
      representative of the insured parties of the insurance referred to in
      Clause 47.1.6, 47.1.7 and 47.1.8.

            


    

     

    
      	
            	
              47.3.2

            	
              No
      later than twenty-one (21) days prior to the scheduled date upon which the
      insurances to be provided by the Contractor are to be in full force and
      effect, the Contractor shall provide the Purchaser with the draft policy
      wordings referred to in Clause 47.1 for review and
    agreement.

            


    

     

    The
Purchaser shall provide requested changes in the draft policy wordings, if any,
within seven (7) working days after receiving such documents from the
Contractor.

     

    The
Contractor's agreement to any changes proposed by the Purchaser shall not be
unreasonably withheld.

     

    The
Contractor shall comply and ensure that its subcontractors comply strictly with
the terms and conditions of the policies referred to in Clause 47 and all
reasonable requirements of insurers in connection with the settlement of claims,
the recovery of losses and the prevention of accidents and shall bear all costs
incurred by the Purchaser as a consequence of any failure so to
comply.  The Contractor shall bear all excesses and/or deductibles
applicable to the insurance referred to in Clause 47.1.

     

    The
Contractor shall bear all excesses and/or deductibles applicable to the
insurances referred to in Clause 47.1 unless the Purchaser is solely responsible
for the cause of the occurrence of an event insured in Clause 47.1.6, 47.1.7 and
47.1.8.

     

    
      	
            	
              47.3.3

            	
              The
      insurances referred to in Clause 47.1 shall be primary with respect to the
      interests of the Purchaser, the Engineer, the Contractor, including their
      approved sub-contractors, their employees, agents, directors and any other
      insurances maintained by them are excess and not contributory with such
      policies.

            


    

     

    
      	
            	
              47.3.4

            	
              The
      Contractor shall ensure that the insurances referred to in Clause 47.1
      shall include standard cross liability
clauses.

            


    

     

    
      	
            	
              47.3.5

            	
              The
      Contractor shall ensure that notwithstanding any provision of the policies
      of insurance referred to in Clause 47.1, the policies may not be
      cancelled, non-renewed or materially changed by the insured parties
      without written consent of the Purchaser (such written consent shall not
      be unreasonably withheld).  In addition the Contractor shall
      make best efforts to ensure that the policies of insurance referred to in
      Clause 47.1 contain provisions requiring insurers to provide a minimum of
      60 (sixty) days prior written notice of any such intended cancellation,
      non-renewal or material change before any cancellation, non-renewal or
      material change shall be effective.

            


    

     

    
      	
            	
              47.3.6

            	
              Any
      payments by the insurers under the policies referred to in Clause 47.1.6
      and Clause 47.1.7 shall be made to the Purchaser or to the account
      designated by the Purchaser.

            


    

     

    
      
         


      

      
        81

        
          

        

      

      
         


      

    


    Where the
amount involved is less than RM 100,000 (One Hundred Thousand Only) (or the
equivalent in another currency) and the Contractor is obliged to effect any
repair, replacement or reconstruction of the Works ("Remedial Works") the
Contractor shall commence such Remedial Works and such amounts shall be paid by
the Purchaser to the Contractor for application solely in effecting such
Remedial Works unless progress of the Works has been suspended pursuant to
Clause 25 at the time when such proceeds are payable then such proceeds shall be
paid to the Contractor to the extent of Remedial Works in respect of which such
claim may arise and which were undertaken prior to such suspension.

     

    Where an
event occurs which is likely to involve a claim under such policies in an amount
which is equal to or above RM 100,000 (One Hundred Thousand Only) or the
equivalent in another currency), the Contractor shall seek the written consent
of the Purchaser before commencing any Remedial Works in respect of which such
claim may arise and:

     

    
      	
               
      

            	
              (a)

            	
              if
      the Purchaser agrees that the Contractor may proceed with the Remedial
      Works, then the relevant insurance proceeds shall be disbursed to the
      Contractor in progress instalments to be calculated and disbursed in
      accordance with the timetable for the Remedial Works agreed amongst the
      Purchaser, the Insurers and the Contractor against progress statements
      certified by the Purchaser (such statements not to be unreasonably
      withheld or delayed by the Purchaser);
and

            


    

     

    
      	
               
      

            	
              (b)

            	
              if
      the Purchaser refuses to give its consent or fails to respond within
      thirty (30) days of its receipt of such request from the Contractor, then
      the Purchaser shall be deemed to have issued an order to suspend the Works
      under Clause 25 and the Purchaser may apply such insurance proceeds in
      such a manner as it deems fit and if permission to resume work is given,
      an amount equal to the relevant insurance proceeds shall be disbursed to
      the Contractor as if no suspension had occurred and the Purchaser shall
      pay to the Contractor the extra costs, if any, incurred by the Contractor
      in giving effect to such
suspension.

            


    

     

    All
proceeds payable under the policy referred to in Clause 47.1.8 in respect of any
claim relating thereto shall only be paid in satisfaction of third party
liabilities covered by such policy.

     

    
      	
            	
              47.3.7

            	
              The
      Contractor shall ensure that all policies of insurances naming more than
      one party as an insured shall contain a waiver of subrogation clause
      applying to each insured party.  Such policies shall also
      contain a clause stating that the breach of a policy term, condition or
      warranty, expressed or implied, by one insured shall not prejudice the
      cover granted by the policy to any other insured who has not breached the
      term, condition or warranty.

            


    

     

    
      	
            	
              47.3.8

            	
              In
      respect of all insurances required to be effected by the Contractor
      pursuant to Clause 47.1, the Contractor shall produce certificates of
      insurance, the receipts for premiums or other satisfactory evidence of the
      continued validity of insurance cover to the Purchaser, upon written
      request, within a reasonable time from receiving such
    request.

            


    

     

    
      	
            	
              47.3.9

            	
              Not
      Used.

            


    

     

    
      	
            	
              47.3.10

            	
              If
      the period of the Construction/Erection All Risks (CEAR) Insurance
      referred to in Clause 47.1.6 and/or of the Comprehensive General Liability
      Insurance in Clause 47.1.8 is extended to cover the extended period of the
      Defects Liability Period pursuant to Clauses 36.3 and 36.4, the Contractor
      shall be responsible for any extra premium incurred for such
      extension.

            


    

     

    
      
         


      

      
        82

        
          

        

      

      
         


      

    

     

    
      	
            	
              47.3.11

            	
              Not
      Used

            


    

     

    
      	
            	
              47.3.12

            	
              The
      Contractor shall make best efforts to ensure that the policies of
      insurance described in Clause 47.1 contain provisions to the effect that
      the insurer shall not be entitled to terminate the policies in the event
      of termination of the Contract or part thereof, solely as a result of the
      termination of the Contract.  Such provision shall cause the
      insurance to continue in force until its expiry in respect of the interest
      of the Purchaser and the Engineer.

            


    

     

    
      	
            	
              47.3.13

            	
              The
      Contractor shall comply and make best efforts to ensure its Subcontractors
      strictly comply with the terms and conditions of the insurances and all
      reasonable requirements of the insurers in connection with the settlement
      of claims, the recovery of losses and the prevention of
      accidents.  The Contractor shall indemnify the Purchaser from
      any loss or damage due to non-compliance with the terms and conditions of
      the insurance by the Contractor and/or its
  sub-contractors.

            


    

     

    
      	
            	
              47.3.14

            	
              The
      Contractor and the Purchaser agree that, notwithstanding the provisions of
      Clause 47, in the event that the final agreed and accepted insurance
      policies are in any way in variance with the requirements and provisions
      contained in Clause 47 then, subject to the written agreement of the
      Purchaser and the Contractor, the conditions of the final agreed and
      accepted insurance policies shall take
  precedence.

            


    

     

    
      	
              48

            	
              Remedy on Failure to
      Insure

            


    

     

    If the
Contractor shall fail to effect and keep in force the insurance for which it is
responsible in accordance with Clause 47, the Purchaser may obtain and keep in
force any such insurance and pay the premiums thereon as may be necessary for
that purpose, and the Contractor shall upon demand reimburse the actual cost of
effecting such insurance cover to the Purchaser, failing which the Purchaser
shall be entitled to deduct such costs from the Contract Price.

     

    
      	
              49

            	
              Force
      Majeure

            


    

     

    
      	
              49.1

            	
              Instances of Force
      Majeure

            


    

     

    An "event
of Force Majeure" shall mean any circumstance not within the reasonable control,
directly or indirectly, of the Party affected, but only if and to the extent
that (i) such circumstance, despite the exercise of reasonable diligence, cannot
be or be caused to be prevented, avoided or removed by such Party, (ii) such
event materially adversely affects (in cost and/or time) the ability of the
Party to perform its obligations under the Contract, and such Party has taken
all reasonable precautions, due care and reasonable alternative measures in
order to avoid the effect of such event on its ability to perform its
obligations under the Contract and to mitigate the consequences thereof, (iii)
such event is not the direct or indirect result of the failure of such Party to
perform any of its obligations under the Contract, and (iv) such Party has given
the other Party prompt notice describing such event, the effect thereof and the
actions being taken in order to comply with this Clause 49.

     

    The
events of Force Majeure comprise:

     

    
      	
               
      

            	
              (a)

            	
              Non-Political
      Event;

            


    

     

    
      	
               
      

            	
              (b)

            	
              Direct
      Malaysian Political Event; and

            


    

     

    
      	
               
      

            	
              (c)

            	
              Indirect
      Political Event,

            


    

     

    all as
defined hereunder.

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    "Non-Political Event" shall
include, but not limited to, the following events to the extent that an event or
its consequence (it being agreed that if a causing event is within the
reasonable control of a Party affected, the consequence thereof shall be deemed
to be within the control of the Party affected) satisfy the first paragraph of
this Cause 49.1;

     

    
      	
               
      

            	
              (i)

            	
              the
      effect of any natural element or other act of God, including but not
      limited to any storm, flood, lightning, earthquake, cyclone, landslide,
      subsidence, volcanic eruption or other natural
  disaster;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              fire
      or explosion, accidents in each case not being due to (A) inherent defects
      of the equipment comprising the Project, (B) the failure to operate the
      Project in accordance with the Good Manufacturing Practices or (c)
      circumstances within the reasonable control of the affected Party's
      contractors; and

            


    

     

    
      	
               
      

            	
              (iii)

            	
              epidemic,
      famine or plague;

            


    

     

    
      	
               
      

            	
              (iv)

            	
              radioactive
      contamination or ionizing radiation;
and;

            


    

     

    
      	
               
      

            	
              (v)

            	
              any
      act, event or circumstance of a nature analogous to the
      foregoing.

            


    

     

    "Direct Malaysian Political
Event" comprises:

     

    
      	
               
      

            	
              (i)

            	
              GOM's,
      or any Governmental Instrumentality of Malaysia's unreasonable delay,
      denial or refusal to grant or renew, or any unreasonable revocation of any
      required Consent, provided that such adverse governmental action or
      inaction did not result from the non-compliance with any applicable law
      (other than laws of Malaysia resulting from Change in Law) or any
      condition to the granting or maintenance of any such Consent that was in
      effect on the date of the initial drawdown from any debt facility to be
      provided in accordance with the financing agreements entered into by the
      Party for purposes of this Contract, of which performance is adversely
      affected by the occurrence of such an
event;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              a
      Change in Law or change in interpretation of any law of Malaysia after the
      date of this Contract adversely affecting the performance of this Contract
      by either Party;

            


    

     

    
      	
               
      

            	
              (iii)

            	
              with
      respect to the Purchaser only, the expropriation or compulsory acquisition
      by GOM, or any Governmental Instrumentality of Malaysia of (i) any shares
      in the Purchaser if the result would be to acquire control of the
      Purchaser or such a contractor, or (ii) any assets or rights of the
      Purchaser; or any other act of GOM or any Governmental Instrumentality of
      Malaysia materially and adversely affecting the performance by the
      Purchaser of any of its obligations pursuant to the
    Contract;

            


    

     

    
      	
               
      

            	
              (iv)

            	
              any
      interruption in the supply of feedstock resulting from the action or
      inaction of GOM, or any Governmental Instrumentality of Malaysia;
      or

            


    

     

    
      	
               
      

            	
              (v)

            	
              any
      event or circumstance or a combination of the same of a nature analogous
      to any of the foregoing.

            


    

     

    "Indirect Political Events"
comprising:

     

    
      	
               
      

            	
              (i)

            	
              act
      of war (whether declared or undeclared), sabotage, terrorism or act of a
      public enemy (including the acts of any independent unit or individual
      engaged in activities in furtherance of a program of irregular warfare),
      acts of belligerents or foreign enemies (whether accorded diplomatic
      recognition or not), war, blockages, civil disturbance, revolution,
      rebellion or insurrection, riot, exercise of military or usurped power, or
      any attempt at usurpation of power;

            


    

     

    
      
         


      

      
        84

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (ii)

            	
              strikes,
      or similar labour difficulties (excluding such events which are site
      specific and attributable to the Contractor) that are not primarily
      motivated by a desire to improve compensation or working conditions of
      those involve.

            


    

     

    
      	
              49.2

            	
              Effect of Force
      Majeure

            


    

     

    
      	
               
      

            	
              (a)

            	
              Except
      as provided below if the Parties do not reach an agreement as to the
      continuation and completion of any part or parts of the Works, either
      Party shall be excused from performance to the extent its performance
      hereunder is affected by such event of Force Majeure and the affected
      Party shall not be construed to be in default in respect of any obligation
      hereunder for so long as the failure to perform such obligation shall be
      due to an event of Force Majeure.

            


    

     

    
      	
               
      

            	
              (b)

            	
              If
      an event of Force Majeure shall have occurred that results in a material
      delay in the completion of the Project or causes material damage to the
      Plant and such event of Force
Majeure:

            


    

     

    
      	
               
      

            	
              (i)

            	
              is
      of a type not normally insured against by entities engaged in activities
      substantially similar to those engaged in by the Purchaser, is not
      required to be insured against in accordance with the Good Manufacturing
      Practices, and in fact has not been insured against by the Purchaser or
      the Contractor in accordance with Clause 47;
or

            


    

     

    
      	
               
      

            	
              (ii)

            	
              could
      not be insured against by the Purchaser or the Contractor prior to the
      time of its occurrence;

            


    

     

    then in
either case for a period ending six (6) months after the end of such event of
Force Majeure, the Parties shall enter into good faith negotiations regarding an
adjustment of the Contract Price, notwithstanding that the Contractor may have
been granted under Clause 33.1 an extension of the Time for Completion of the
Works.  During such period, the Contractor shall not be required to
complete the Project or to repair the Plant, as the case may be, and such
failure to complete the Project or repair the shall not constitute a Contractor
Remediable Event or Contractor Non-Remediable Event until the Parties have
agreed upon an adjustment of the Contract Price.  If the Parties do
not reach such agreement within six (6) months after the end of such event of
Force Majeure, the Purchaser may terminate the Contract in accordance with
Clause 46.2.1 provided that the Purchaser shall have paid to the Contractor the
Costs reasonably incurred and demonstrated by the Contractor from the occurrence
of the event of the Force Majeure until the termination of the
Contract.

     

    During
any such period, if requested by the Purchaser and agreed by the Contractor, the
Contractor shall perform such portions of the Works as the Purchaser may
request, subject to the Purchaser and the Contractor agreeing on appropriate
compensation therefor.  Any Works so performed shall be factored into
the price adjustment referred to above.

     

    
      	
               
      

            	
              (c)

            	
              If
      an event of Force Majeure described in item (ii) under the Direct
      Malaysian Political Event in Clause 49.1 shall have occurred, Clause 49.5
      shall be applied for purpose of determining adjustments, if any, in the
      Contract Price or otherwise.

            


    

     

    
      	
              49.3

            	
              Certain Events not
      Excused

            


    

     

    Notwithstanding
that an event of Force Majeure otherwise exists, the provisions of this Clause
49 shall not excuse:

     

    
      
         


      

      
        85

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (a)

            	
              Late
      payment of money;

            


    

     

    
      	
               
      

            	
              (b)

            	
              Late
      delivery of equipment or materials or any delay in the Works caused by
      negligent acts or omissions on the part of the Contractor, or any of its
      Subcontractors;

            


    

     

    
      	
               
      

            	
              (c)

            	
              Late
      performance by the Contractor caused by the Contractor's failure to engage
      qualified sub-contractors and suppliers or to hire an adequate number of
      personnel or labour;

            


    

     

    
      	
               
      

            	
              (d)

            	
              Submission
      of documents for approval by GOM or Government of Malaysia Instrumentality
      at such a time which does not leave sufficient time to permit review
      thereof;

            


    

     

    
      	
               
      

            	
              (e)

            	
              a
      labour dispute involving the Contractor and its personnel or its
      Subcontractors.

            


    

     

    
      	
              49.4

            	
              Notice of Force
      Majeure; Procedure

            


    

     

    As soon
as possible following the date of occurrence of any event of Force Majeure, if
either Party desires to invoke such event of Force Majeure as a cause for delay
in the performance or non-performance of any obligation (other than the payment
of money) hereunder, it shall advise the other Party in writing of such date and
the nature and expected duration of such event of Force Majeure.  As
soon as possible but no later than seven (7) days (or longer as may be necessary
in case of communication breakdown) following the termination of such event of
Force Majeure, the Party having invoked such event of Force Majeure as a cause
of such delay shall submit to the other Party reasonable proof of the nature of
such delay and its initial estimated effect upon the time of
performance.  If the Contractor is the Party serving such notice as a
result of the occurrence of a Direct Malaysian Political Event or an Indirect
Political Event, the initial notice shall be submitted as soon as it is
practically possible following the occurrence and the notice shall include
reasonable particulars of:

     

    
      	
               
      

            	
              (i)

            	
              the
      nature of such a Direct Malaysian Political Event or an Indirect Political
      Event, which is the subject of any claim for relief under this
      Contract;

            


    

     

    
      	
               
      

            	
              (ii)

            	
              the
      effect which such a Direct Malaysian Political Event or an Indirect
      Political Event is likely to have on the Contractor's performance of its
      obligations under this Contract;

            


    

     

    
      	
               
      

            	
              (iii)

            	
              the
      measures which the Contractor is taking, or proposes to take, to alleviate
      the impact of such a Direct Malaysian Political Event or an Indirect
      Political Event; and

            


    

     

    
      	
               
      

            	
              (iv)

            	
              any
      other information relevant to the Contractor's
  claim,

            


    

     

    and the
Contractor shall supplement the aforementioned initial notice with more accurate
information as soon as reasonably possible thereafter.

     

    For so
long as the Contractor continues to claim to be affected by a Direct Malaysian
Political Event or an Indirect Political Event, it shall keep the Purchaser
advised in writing of any significant developments relating to such a Direct
Malaysian Political Event or an Indirect Political Event, and such other
information as the Purchaser may reasonably request about the Contractor's
claim.

     

    The
Parties shall use their best efforts:

     

    
      	
               
      

            	
              (i)

            	
              to
      prevent and reduce to a minimum and mitigate the effect of any delay
      occasioned by any event of Force Majeure including recourse to alternate
      acceptable sources of services, equipment and materials;
    and

            


    

     

    
      
         


      

      
        86

        
          

        

      

      
         


      

    

     

    
      	
               
      

            	
              (ii)

            	
              to
      ensure resumption of normal performance of this Contract after the
      termination of any event of Force Majeure and shall perform their
      obligations to the maximum extent practicable agreed between the
      Parties.

            


    

     

    An event
of Force Majeure affecting a portion of the Works only shall not excuse the
Contractor's failure to timely complete the unaffected portions of the
Works.

     

    
      	
              49.5

            	
              Consequences of Change
      in Law

            


    

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to item (e) of this Clause 49.5, in the event that either Party believes
      that a Change in Law shall have occurred that has or will result in a
      material Change in Law Cost or Savings, such Party shall promptly deliver
      to the other Party a notice (a "Notice") identifying such Change in Law
      and the net amount of Change in Law Cost or Savings that have resulted or
      are reasonably expected to result from such Change in Law, subject in any
      event to the obligation of the Contractor to minimise such Change in Law
      Costs and to maximise such Savings in accordance with Good Manufacturing
      Practices.  Such Party may from time to time deliver to the
      other Party additional Notices with respect to any Change in Law, provided
      that any such additional Notice shall be given not later than one (1) year
      after the Party giving such Notice knew of or should have known of such
      additional Change in Law Costs or realisation of such additional Savings
      resulting from the occurrence of the Change in
  Law.

            


    

     

    
      	
               
      

            	
              (b)

            	
              Within
      seven (7) days following the receipt of any Notice, the Parties shall meet
      to discuss the subject matter of such Notice.  If within
      fourteen (14) days after the commencement of such discussions, either
      Party disputes any of the contents of the Notice, such Dispute may be
      referred to Arbitration in accordance with the provisions of Clause 50.3
      of the Contract.

            


    

     

    
      	
               
      

            	
              (c)

            	
              To
      the extent that a claim for material Change in Law Costs or Savings
      resulting from the occurrence of a Change in Law is not disputed or has
      been allowed by the expert, the Contract Price shall be reasonably
      adjusted.

            


    

     

    The
adjustment of the Contract Price is intended that the Contractor should be in
the same position as the one it found himself prior to such a
change.

     

    If within
thirty (30) days following the allowance of or agreement upon any claim for
material Change in Law Costs or Savings, the Parties are unable to agree on the
adjustment of the Contract Price, the Dispute may be referred to Arbitration in
accordance with the provisions of Clause 50.2 of the Contract.

     

    
      	
               
      

            	
              (d)

            	
              The
      Contractor agrees that no notice shall be given by him in respect of a
      Change in Law unless the effect of such Change in Law and any preceding
      Changes in Law applied over the term of this Contract results either in an
      aggregate increase in liability of the Contractor of more than RM 250,000
      (Two Hundred and Fifty Thousand only)or results in Savings of more than RM
      250,000 (Two Hundred and Fifty Thousand only) in the aggregate under the
      Contract.

            


    

     

    
      	
              50

            	
              Disputes and
      Arbitration

            


    

     

    
      	
              50.1

            	
              Mutual
      Discussions

            


    

     

    If any
dispute or difference of any kind whatsoever including for the avoidance of
doubt a dispute or difference in relation to a decision or approval given by the
Engineer (a "Dispute") shall arise between the Parties in connection with, or
arising out of, this Contract, or the breach, suspension, termination or
validity hereof, the Parties shall attempt, for a period of thirty (30) days (or
such shorter period as the Parties may agree) after the receipt by one Party
from the other Party of notification of a Dispute to settle such Dispute in the
first instance by mutual discussions between the Parties.

     

    
      
         


      

      
        87

        
          

        

      

      
         


      

    

     

    
      	
              50.2

            	
              Not
      Used

            


    

     

    
      	
              50.3

            	
              Arbitration

            


    

     

    
      	
            	
              50.3.1

            	
              If
      the Dispute cannot be settled within thirty (30) days by mutual
      discussions as contemplated by Clause 50.1, the Dispute shall finally be
      settled by an arbitral tribunal (the "Tribunal") under the auspices and in
      accordance with the rules of the Singapore International Arbitration
      Centre ("SIAC") in effect on the date of this Contract (the "Arbitration
      Rules"), which rules are deemed to be incorporated by reference into this
      Clause.  The Tribunal shall consist of three arbitrators who
      shall be appointed in accordance with the Arbitration
      Rules.  Both Parties undertake to implement the arbitration
      award.  The venue of the arbitration shall be Singapore and the
      seat of the arbitration shall be Singapore.  The language of the
      arbitration shall be English.

            


    

     

    
      	
            	
              50.3.2

            	
              The
      award rendered shall apportion the costs of the arbitration in the manner
      provided for in the Arbitration Rules referred to
  above.

            


    

     

    
      	
            	
              50.3.3

            	
              Not
      Used

            


    

     

    
      	
            	
              50.3.4

            	
              Any
      award rendered in any arbitration commenced hereunder shall be final and
      binding upon the Parties and judgement thereon may be entered in any court
      having jurisdiction for its
enforcement.

            


    

     

    The
Parties hereto waive any rights to appeal or to review of such award by any
court or tribunal.

     

    
      	
            	
              50.3.5

            	
              Pending
      final resolution of any Dispute, the Parties shall continue to perform
      their respective obligations hereunder to the extent such obligations are
      not being disputed in good faith, provided however that the Contractor
      shall not be obliged to continue with the performance of its obligations
      in Dispute during arbitration proceedings if Disputes have arisen in
      respect of adjustments to the Contract Price or terms of payment relating
      to Variation and at the relevant time all amounts then in dispute exceed
      in the aggregate Malaysian Ringgit 1,000,000 (One Million
      Only).  If such Dispute is finally resolved in favour of the
      Purchaser, then unless agreed otherwise the Contractor shall not be
      excused for any delay due to its non performance of the disputed
      obligations.  Upon resolution of any Dispute requiring the
      payment of money by one Party to the other Party, any such payment shall
      include interest at the 300 basis points above Base Lending rate hereof
      from the date such amount was due up to the date of such
      payment.

            


    

     

    
      	
              51

            	
              Applicable
      Law

            


    

     

    The
Contract shall in all respects be governed by and interpreted in accordance with
the laws of Malaysia.

     

    
      	
              52

            	
              Miscellaneous

            


    

     

    
      	
              52.1

            	
              Language

            


    

     

    This
Contract is being executed and delivered in the English language and all
modification, amendments, waivers of any provision of this Contract, all
documents, notices and communications between the Parties under this Contract
shall be in the English language.

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

     

    
      	
              52.2

            	
              Severability of
      Provisions

            


    

     

    A holding
of any court of competent jurisdiction or by an arbitral tribunal under Clause
50 that any provision of this Contract is invalid or unenforceable shall not
result in invalidation of the entire Contract.  Instead, this Contract
shall be construed, if possible, in a manner to give effect by means of valid
provisions to the intent of the Parties to the particular provision or
provisions held to be invalid, and, in any event, all other terms shall remain
in full force and effect.  Following any such holding, the Parties
shall negotiate in good faith new provisions to restore, as best as possible,
the original intent and effect of this Contract.

     

    
      	
              52.3

            	
              Waiver

            


    

     

    Save
where it appears to the contrary in this Contract, neither Party shall be deemed
to have waived any right under this Contract, unless such Party shall have
delivered to the other Party a written waiver signed by an authorized officer of
such waiving Party.  No delay or omission in the exercise of any power
or remedy shall be construed to be a waiver of any default or an acquiescence
therein.

     

    
      	
              52.4

            	
              Amendment

            


    

     

    This
Contract may only be amended or modified by a written instrument signed by each
of the Parties.

     

    
      	
              52.5

            	
              Entire
      Agreement

            


    

     

    This
Contract constitutes the entire agreement between the Purchaser and the
Contractor concerning the subject matter hereof.  All previous
documents, undertakings and agreements, whether verbal, written or otherwise,
between the Parties concerning the subject matter hereof are hereby cancelled
and shall not affect or modify any of the terms or obligations set forth in this
Contract, except as the same may be made part of this Contract in accordance
with its terms, including the terms of any of the Appendices, Schedules and
Annexures.  The Appendices, Schedules and Annexures are hereby made an
integral part of this Contract and shall be fully binding upon the
Parties.

     

    
      	
              52.6

            	
              Further Acts and
      Assurances

            


    

     

    Each of
the Parties agree to execute and deliver all such further instruments, and to do
and perform all such further acts and things, as shall be necessary or
convenient to carry out the provisions of this Contract.

     

    
      	
              52.7

            	
              Expenses

            


    

     

    Each
Party shall pay its own costs and expenses (including, without limitation, the
fees and expenses of its agents, representatives, advisors, counsel and
accountants) necessary for the negotiation, preparation, execution, delivery,
performance of and compliance with this Contract.

     

    
      	
              52.8

            	
              Assignment

            


    

     

    Neither
party shall assign the whole or any part of the Agreement or any benefit or
interest in or under the Agreement.  However either
Party:

     

    
      	
               
      

            	
              i.

            	
              may
      assign the whole or any part with the prior agreement of the other Party,
      at the sole discretion of such other Party,
and

            


    

     

    
      
         


      

      
        89

        
          

        

      

      
         


      

    


    
      	
               
      

            	
              ii.

            	
              the
      Purchaser and the Contractor may, as security in favor of a bank or
      financial institution, assign its right to any moneys due, or to become
      due, under the Agreement, but otherwise shall not, without the consent of
      the respective other party, assign the benefit of all or any of the
      obligations under the Agreement and/or any benefit arising under or out of
      the Agreement.  Furthermore, the Purchaser and the Contractor
      may assign the entire Agreement, but not any parts thereof, without
      consent of the other party to a company of which the majority of the
      capital is directly or indirectly held by the respective party or which
      owns directly or indirectly, the majority of the capital of the party,
      provided that the assigning party shall simultaneously with the
      assignment, as prerequisite for the validity of the assignment, provide a
      parent company guarantee for fulfilment of all obligations of the assignee
      company arising out of or in connection with the
  Agreement.

            


    

     

    
      	
              52.9

            	
              No
      Partnership

            


    

     

    Nothing
contained in this Contract shall be construed to create an association, trust,
partnership, or joint venture or impose a trust or partnership duty, obligation,
or liability on or with regard to either Party, or to create any duty, standard
of care or liability to any person or entity not a Party hereto.  Each
Party shall be liable individually and severally for its own obligations under
this Contract.

     

    
      	
              52.10

            	
              Compliance with
      Laws

            


    

     

    In the
performance of their obligations under this Agreement, the Parties shall, and
shall cause their respective affiliates, officers, directors, agents and
employees to, comply strictly with all applicable laws, regulations and orders
of Malaysia and other applicable jurisdictions.  The Parties hereby
acknowledge and agree that certain laws of Malaysia and of any other applicable
jurisdiction, prohibit, inter
alia, any direct or indirect payment of money or anything of value to any
government official, political Party, or candidate for political office for the
purpose of obtaining or retaining business.  The Parties hereby
represent and warrant that, in the performance of their obligations hereunder or
otherwise in connection with the Project, they have not made, and will not make,
any such proscribed payment.

     

    
      	
              53

            	
              Additional Clauses for
      Hardware and Software

            


    

     

    
      	
              53.1

            	
              Application of this
      Clause

            


    

     

    This
clause shall apply to the Integrated Control System (ICS) and other protection
and telemetry equipment using computers, microprocessors and software
specifically developed or designed for the Works or to integrate with
manufacturers standard equipment forming part of the Works and not being a
component part of manufacturers standard equipment.

     

    The
Contractor's obligations under this Clause 53 are cumulative to and shall not
derogate from its obligations under the other provisions of these
Conditions.

     

    
      	
              53.2

            	
              Warranty and
      Performance

            


    

     

    The
Contractor warrants that the System shall fulfil the requirements from such a
system for the Biodiesel Project.

     

    
      	
              53.3

            	
              Steering
      Meetings

            


    

     

    The
Parties shall meet together with such frequency as may be desirable for the
purposes, inter alia, of monitoring progress of that part of the Works which
consists of the System, agreeing on a delivery schedule for the Hardware,
agreeing on the Functional Specification, the Software Systems Specification and
agreeing on the factory acceptance tests, site acceptance tests and the Tests on
Completion, including the factory acceptance therefore.  Following
agreement in writing of the Software Systems Specification or any part thereof
by the Engineer no amendment thereto shall be made by the Contractor unless
specifically requested in writing so to do by the Engineer who shall signify its
approval thereof in writing.

     

    
      
         


      

      
        90

        
          

        

      

      
         


      

    

     

    
      	
              53.4

            	
              Title to Standard
      Software

            


    

     

    Title to
and copyright in the Standard Software shall at all times remain vested in the
Contractor.  The Contractor shall grant to the Purchaser the
non-exclusive, irrevocable right royalty free to use the Standard Software in
the System for the purposes of this Project.  The Purchaser shall be
entitled to make such copies of the Standard Software as it may reasonably
require for its own internal use without the payment of any royalty to the
Contractor and will ensure that all such copies acknowledge the Contractor's
copyright therein and in the product thereof.  The Purchaser shall
take all reasonable measures to safeguard the Contractor's rights in the
Standard Software.

     

    
      	
              53.5

            	
              Not
      Used

            


    

     

    
      	
              53.6

            	
              Not
      Used

            


    

     

    
      	
              53.7

            	
              Services

            


    

     

    Following
Taking Over and for a period of three years thereafter, so long as the System
remains in use the Contractor shall offer to provide or to procure the provision
of services of maintenance and advisory and consultancy services for the
Hardware and Standard Software including the provision of an updating service
for the Standard Software.  Such offer shall be on reasonable terms no
less advantageous to the Purchaser than the terms offered by the Contractor to
other customers.

     

    
      	
              53.8

            	
              Training

            


    

     

    The
Contractor shall provide instruction in the use and maintenance of the Hardware
and Software and the System for the Purchaser's personnel and the personnel of
the operation and maintenance contractor appointed by the Purchaser in
accordance with the details given in the Contract.

     

    
      	
              53.9

            	
              Manuals and User
      Documentation

            


    

     

    The
Contractor shall provide as part of the Software all operation manuals, clerical
control manuals, fault-finding procedures, diagnostic programs and routines and
full operating and user manual documentation necessary for the use of the
System.  Notwithstanding the passing of the Tests on Completion, the
Works shall not be deemed to have been completed until all such documentation
shall have been provided to the Purchaser prior to Taking Over.

     

    
      	
              53.10

            	
              Provisions Surviving
      Final Certificates

            


    

     

    The
provisions of Clauses 53.7 and 53.8 hereof shall where the context so requires
continue in full force and effect notwithstanding the issue of the Final
Certificate under Clause 39.

    ____________________________

     

    
      
         


      

      
        91