Biosyn Supply Agreement



 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
 Exhibit 10.14

  
 SUPPLY AGREEMENT 
  
 THIS AGREEMENT is made on: December 1, 2004  
  
 BETWEEN: 
  
 1. biosyn Arzneimittel GmbH, a company incorporated in Germany, whose registered office is at Schorndorfer Strasse 32,
D-70734 Fellbach, Germany (“BIOSYN”); and 
  
 2. BioVest
International, Inc., a Delaware (USA) Corporation having its principle place of business at 8500 Evergreen Blvd. NW, Minneapolis MN (USA) 55433 (“BIOVEST”) 
  
 WHEREAS: 
  
 A. BIOSYN is a pharmaceutical company engaged in the marketing and development of pharmaceuticals, including pharmaceuticals for treating and preventing a
number of diseases and conditions. BIOSYN is also engaged in the manufacturing of proprietary formulation of biosyn hemocyanin products including keyhole limpet hemocyanin (KLH), abalone (AH), horseshoe crab (HCH), biosyn KLH in this agreement
refers to biosyn’s proprietary hemocyanin subunit formulations, specifically, VACMUNE® liquid. 
  
 B. BIOSYN has
agreed to manufacture and sell biosyn KLH to BIOVEST on a non-exclusive basis, and BIOVEST has agreed to order exclusively from BIOSYN subject to the terms below. 
  
 C. BIOSYN has a Drug Master File (DMF) filed with the FDA for biosyn KLH. 
  
 THIS AGREEMENT WITNESSES as follows:  
  

	 	1.	INTERPRETATION. 

  
 1.1. In this Agreement 
  
 “biosyn KLH” means the form of KLH manufactured by BIOSYN corresponding to and having the specifications detailed on the Product
Data Sheet attached hereto as Schedule 1 and incorporated by reference herein. BIOSYN agrees that it shall not make any changes or alterations to the product specifications as detailed on Schedule 1 without providing BIOVEST with written notice of
such proposed changes at least six months in advance of any such proposed change; 
  
 “DMF” means the Drug Master File for biosyn KLH, VACMUNE® liquid, a copy of which has been filed with the FDA. 
  
 “FDA” means the United States Food and Drug Administration; 
  

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 “Free Carrier” bears the meaning set out in the incoterms 1990, a copy of the
relevant section of which is included as Schedule 3 hereto; 
  
 “Further Term” means any term of five (5) years subsequent to the Initial Term; 
  
 “GMP” means Goods Manufacturing Practices promulgated by the Division of Manufacturing and Product Quality of the FDA.

  
 “Initial Term” means the first
three (3) year term of this Agreement running from the date of execution for a period of three (3) years; 
  
 “KLH” means Keyhole Limpet Hemocyanin, a protein from the giant limpet Megathura crenulata; 
  
 “Vaccines” means the id-KLH vaccine and other KLH
conjugate vaccines developed by BIOVEST. 
  
 “Year” means contract year, commencing on the effective date of this agreement and for a period of 12 months thereafter. 
  
 1.2. In this Agreement, a reference to: 
  
 1.2.1. a document in the “agreed form” is a reference to a document in a form approved and for the purposes of identification
signed by or on behalf of the Parties; 
  
 1.2.2.
persons includes a reference to anybody corporate, unincorporated association or partnership; 
  
 1.2.3. a person includes a reference to that person’s legal personal representatives, successors and permitted assigns; 

 
 1.2.4. a Clause or Schedule, unless the context otherwise
requires, is a reference to a clause or schedule of this Agreement; 
  
 1.2.5. an agreement or other document is a reference to that agreement or documents as from time to time supplemented or amended. 
  
 1.3. The headings in this Agreement shall not affect the interpretation of this Agreement. 
  

	 	2.	OBLIGATIONS OF BIOSYN. 

  
 2.1. BIOSYN shall use commercially reasonable efforts to: 
  
 2.1.1. fulfill all orders made by BIOVEST in any one year for biosyn KLH. Orders by BIOVEST shall be
fulfilled promptly, and in any event within sixty 

  

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(60) days of receiving an order (in substantially the form set out in Schedule 2, or a standard purchase order) from BIOVEST; 
  
 2.1.2. maintain sufficient manufacturing and supply capacity
so as to enable it to comply with this clause 2; 
  
 2.1.3. provide a [*] of biosyn KLH, per twelve (12) month period to BIOVEST (“BIOVEST Minimum Requirement”) during the Initial Term of this Agreement; 
  
 2.1.4. provide the [*] of product, and each additional gram of product which may be ordered by BIOVEST in
any contract year, as [*] of biosyn KLH [*] 
  
 2.1.5. ensure that all biosyn KLH supplied to BIOVEST complies with any description of biosyn KLH supplied by BIOSYN, including without limitation compliance with the specifications contained in Schedule 1 herein and complies in all
respects (including with regard to its manufacture) with the DMF and the KLH license. 
  
 2.1.6. Biosyn will provide to Bio Vest analytical test methods used for characterization of KLH as requested. 
  
 2.2. BIOSYN may: 
  
 2.2.1. after at least 180 days advance written notice to
BIOVEST, and as long as all required regulatory and quality assurance standards are met and all applicable requirements for GMP then in effect in the United States are complied with, perform its obligations under this Agreement, in whole or in part,
through biosyn Corporation, having an office at 5939 Darwin Courts, Suite 114, Carlsbad, CA 92008 a California corporation. 
  
 2.2.2. All product shipment and invoices will be made from biosyn corporation, California and Biovest will make all payments due to
biosyn, to biosyn Corporation, California. 
  
 2.3. BIOVEST may assign its rights hereunder to a subsidiary, affiliated company or to a purchaser of substantially all of Bio Vest’s assets, so long as the assignee agrees to be bound by the terms of this Agreement. 
  

	 	3.	OBLIGATIONS OF BIOVEST. 

  
 3.1. BIOVEST shall procure all KLH for its vaccine development and manufacture from biosyn during the “Initial” and, if
applicable, “Further” term, unless this agreement is terminated as set forth in Section 9 herein. 
  
 3.2. BIOVEST shall order at least the BIOVEST Minimum Requirement each year, including any partial year. 
  

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 3.3. At the beginning of each contract year, more specifically within the first month,
BIOVEST, shall provide BIOSYN with a forecast of its requirement and anticipated orders for biosyn KLH for the year. BIOVEST shall place periodic orders for the biosyn KLH specifying desired delivery dates, which shall be at least 60 days after the
date of the order. 
  
 3.4. BIOVEST and BIOSYN
shall enter into a form of mutual Confidential Disclosure Agreement, the terms of which shall be incorporated herein by reference. 
  
 3.5. BIOVEST shall pay for all freight duty, packaging costs and associated taxes, including any insurance, for the delivery of biosyn KLH
to BIOVEST. 
  
 3.6. BIOVEST shall pay all
amounts due under this Agreement in accordance with clause 5. 
  

	 	4.	ORDERS FOR BIOSYN KLH. 

  
 4.1. All orders for biosyn KLH will be placed by BIOVEST in writing and shall be in substantially the form set out in Schedule 2.

  
 4.2. The biosyn KLH shall be supplied to
BIOVEST by BIOSYN in accordance with the terms of this Agreement. The orders shall be accepted by BIOSYN subject to the terms of clauses 2.1 and 2.2. 
  
 4.3. BIOVEST may by give notice to BIOSYN rejecting all or any part of any order of biosyn KLH which: 
  
 4.3.1. has not been manufactured in accordance with the
specifications set out in the DMF filed with the FDA; 
  
 4.3.2. is not of GMP quality; or 
  
 4.3.3. does not comply with any description applied to it and supplied by BIOSYN to BIOVEST. 
  
 The notice of rejection shall be given by BIOVEST within sixty (60) days of actual receipt of the order by BIOVEST at the address for delivery specified
in the purchase order provided by BIOVEST. Where all or any part of any order of biosyn KLH is rejected by BIOVEST under this clause such biosyn KLH shall be returned to BIOSYN at the risk and expense of BIOSYN for replacement forthwith by BIOSYN,
unless it is reasonably demonstrated by BIOSYN the order complies with the requirements of Clause 2 and this clause 4.3 in which case BIOVEST shall be obligated to purchase such order, assume all risks of transportation, and pay all associated
costs. 
  
 4.4. All orders of biosyn KLH shall be
supplied and delivered to BIOVEST by BIOSYN Free Carrier subject to the terms of clause 4.2. 
  

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 4.5. Title and risk in respect of biosyn KLH supplied by BIOSYN to BIOVEST shall pass on
completion of delivery in accordance with clause 4.4 above, subject to the terms of clause 4.3. 
  

	 	5.	PRICE AND PAYMENT. 

  
 5.1. The price to be paid by BIOVEST to BIOSYN for biosyn KLH shall be $[*] for the first 1 grams (the “Initial Order”), and [*]
for amounts ordered in excess of the Initial Order in a given year, during the first three years of this Agreement. Thereafter, such price shall be reviewed and adjusted annually (upward or downwards), effective January of each year, and such
adjustment shall proportionately reflect changes in the costs of production of biosyn KLH. In no case shall an annual increase or decrease exceed ten percent (10%). 
  
 5.2. BIOVEST shall pay a non-refundable deposit of [*]% of the product cost at the time of placing each
order. 
  
 5.3. The additional[*]% of product
cost shall be paid per clause 5.5. 
  
 5.4.
BIOVEST shall reimburse BIOSYN for any and all expenses incurred by BIOSYN on behalf of BIOVEST, including, without limitations, freight, packaging costs, duty and associated taxes, including any insurance placed by BIOVEST for the delivery of
biosyn KLH to BIOVEST. 
  
 5.5. Payment for
biosyn KLH accepted by BIOVEST and expenses incurred by BIOSYN under clause 5.3 shall be made by BIOVEST to BIOSYN within thirty (30) days of invoicing by BIOSYN, which shall occur at the end of the month in which biosyn KLH is actually received by
BIOVEST at the address specified in the purchase order provided by BIOVEST. 
  
 5.6. BIOVEST shall pay a one time non-exclusive licensing fee of $[*] to BIOSYN, due in accordance with the following schedule: 
  

5.6.1. $[*] on the effective date of this agreement; 
  
 5.6.2. annual payments of $[*] per year, payable each year on the anniversary date of the effective date of
this agreement, 
  
 5.6.3. Outstanding balance
shall be paid in full within 30 days of FDA approval of commercial sale of Bio Vest’s Biovaxid® cancer vaccine for indolent follicular non-Hodgkin’s lymphoma. 
  
 5.6.4. In the event that this agreement shall be terminated due to Biosyn’s Failure to Perform as defined in section 8 herein,
BioVest’s obligation to make payment of any remaining balance of the Licensing Fee shall be extinguished, and any licensing fee previously paid shall be refunded to Bio Vest. In the event that termination occurs as permitted in Section 9.6.4
herein, BioVest’s obligation to make payment of any remaining balance of the Licensing Fee shall be extinguished. 
  

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 5.7. BIOVEST shall pay to BIOSYN for any special requests by BIOVEST for product
characterization, product quality, or any other requests for services or products not expressly provided for in this Agreement at a price to be negotiated by the parties. 
  
 5.8. All amounts due and payable under this Agreement shall be made in United States currency. 

 
 5.9. If any amounts due hereunder are not paid when due,
the unpaid balance shall accrue interest at the rate of 1.5% per month until paid in full. Any amount as to which a reasonable dispute exists shall not be subject to this interest provision until such dispute is resolved. 
  

	 	6.	BIOSYN LICENSE. 

  
 6.1. In consideration of the obligations undertaken by BIOVEST in this Agreement, BIOSYN hereby grants BIOVEST a non-exclusive license to
biosyn KLH, for the purpose of the development, registration, use and sale of the Vaccines in the U.S.A, which license shall remain in effect for the entire term of this Agreement; including any Extended Term. 
  
 6.2. At the request of BIOVEST, BIOSYN shall provide a
cross- reference letter to the FDA (“Cross Reference Letter”) authorizing to access the biosyn DMF. 
  
 6.2.1. BIOVEST will provide the following information to BIOSYN for cross-reference letter issuance: 
  
 Title of the IND/NDA; Name and Address of IND/NDA Holder,
IND/NDA number. 
  
 Name and address of specific
FDA reviewer, if available. 
  
 6.3. BIOSYN will
deliver to the FDA and copy to BIOVEST, the Cross Reference Letter, within 4 weeks from the date of request. 
  

	 	7.	TERM. 

  
 This Agreement shall (unless terminated at an earlier date pursuant to clauses 9 and l0) continue in force for an Initial term of three (3) years from the
date of this Agreement and shall extend to successive Further Terms of five (5) years per Term on expiration of the Initial Term unless terminated by BIOVEST giving to BIOSYN notice by recorded letter at least six (6) months before the termination
of this Agreement, or any Extended Term hereof. 
  

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	 	8.	FAILURE TO PERFORM. 

  
 8.1. A default by a Party occurs when: 
  
 8.1.1. BIOSYN fails to comply with the terms of clause 2; or 
  
 8.1.2. BIOVEST fails to comply with the terms of clauses 3 or 5. 
  
 8.2. In the event either Party is in default under clause
8.1 of this Agreement, the other Party shall give notice of default to the defaulting Party. The defaulting Party shall be allowed sixty (60) days to cure their breach. Failure to cure such default within sixty (60) days permits the non-breaching
Party, without limitation to other remedies, to terminate this Agreement pursuant to section 9 (below). 
  
 8.3. In the event BIOSYN fails to perform pursuant to the events of clause 8.1.1, BIOVEST is entitled to attempt to cover by obtaining
pharmaceutical grade (cGMP) KLH from another source without prejudice to any other remedy, provided, BIOSYN shall be entitled to first cure the event pursuant to clause 8.2. 
  

	 	9.	TERMINATION. 

  
 9.1. Subject to clauses 9.3 and 8.2, either Party may terminate this Agreement upon the Default of the other Party as defined in Section
8. If termination however is pursuant to clause 9.2, BIOSYN agrees that it will not withdraw supplies of biosyn KLH required for the completion of any clinical trial for the Vaccines conducted by BIOVEST pending at the time of BIOSYN’s notice
of termination, so long as BIOVEST is not in violation of clauses 3 or 5. 
  
 9.2. Events that permit termination, other than the events of clause 8.1, are: 
  
 9.2.1. the passing by the Breaching Party of a resolution for its winding-up or the making by a court of competent jurisdiction of an
order for the winding-up of the other Party of the dissolution of the Breaching Party; 
  
 9.2.2. the making of an administration order in relation to the Breaching Party or the appointment of a receiver over, or the taking of
possession or sale by an encumbrance of, any of the Breaching Party’s assets; 
  
 9.2.3. the Breaching Party making an arrangement or composition with its creditors generally or making an application to a court of
competent jurisdiction for protection from its creditors generally. 
  
 9.2.4. The termination, indefinite suspension or other cessation of Bio Vest’s ongoing Phase III Clinical Trial of a personalized therapeutic vaccine for follicular non-Hodgkins lymphoma, unless the trial ends
due to issuance of a license for the treatment by the FDA to Bio Vest. 
  

	 	10.	CONSEQUENCES OF TERMINATION. 

  
 10.1. Subject to clauses 9.1 and 10.2, all rights and obligations of the parties shall cease to have effect immediately upon termination
of this Agreement except that termination shall not affect: 
  
 10.1.1. the accrued rights and obligations of the parties at the date of termination; and 
  

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 10.1.2. the continued existence and validity of the rights and obligations of the parties
under clauses 2 and 5 (but only in respect of any orders made by BIOVEST prior to the date of termination as to both clauses 2 and 5), clause 10, clause 3.2, and any provisions of this Agreement necessary for the interpretation or enforcement of
this Agreement. 
  
 10.2. Notwithstanding any
other provision of this Agreement if this Agreement terminates pursuant to clauses 8 or 9, in addition to those clauses, which survive pursuant to clause 10.1, clause 6 shall survive for a period of 5 years. 
  

	 	11.	COSTS. 

  
 Except as otherwise expressly provided in this Agreement, each Party shall pay its own costs of and incidental to the negotiation, preparation, execution
and implementation by it of this Agreement and of all other documents referred to in it. 
  

	 	12.	FURTHER ASSURANCE. 

  
 Each Party shall at its own cost do and execute or procure to be done and executed all necessary acts, agreements, documents and things reasonably within
its power to give effect to this Agreement. 
  

	 	13.	DISCLAIMERS. 

  
 13.1. EXCEPT AS SET FORTH IN CLAUSE 2 OF THIS AGREEMENT, BIOSYN DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND RELATING TO
biosyn KLH WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTIBILITY AND FITNESS FOR A PARTICULAR PURPOSE. 
  
 13.2. IN NO EVENT SHALL BIOSYN BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, OR EXEMPLARY DAMAGES ARISING OUT OF THE
PERFORMANCE OR NON-PERFORMANCE OF THE biosyn KLH OR BREACH OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, LOSS OF BUSINESS, OR BUSINESS INTERRUPTION, EVEN IF BIOSYN HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

  

	 	14.	GENERAL. 

  
 14.1. This Agreement constitutes the entire agreement between the Parties relating to the subject matter of this Agreement and supersedes
all such previous agreements. 
  
 14.2. No
modification of this Agreement shall be valid unless it is in writing and signed by or on behalf of each of the Parties. 
  

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 14.3. The failure to exercise or delay in exercising a right or remedy under this
Agreement shall not constitute a waiver of the right or remedy or a waiver of any other rights or remedies and no single or partial exercise of any right or remedy or the exercise of any other right or remedy. 
  
 14.4. Except as expressly provided in this Agreement the
rights and remedies contained in this Agreement are cumulative and not exclusive of any rights or remedies provided by law. 
  
 14.5. Any date, time or period referred to in this Agreement is of the essence except only to the extent of which the Parties agree in
writing to vary it in which event the varied date, time or period is of the essence. 
  
 14.6. Nothing in this Agreement be construed as creating a partnership between the Parties or as constituting either Party as the agent of
the other Party for any purpose whatsoever and neither Party shall have the authority or power to bind the other Party or to contract in the name of or create a liability against the other Party in any way or for any purpose. 
  

	 	15.	ASSIGNMENT. 

  
 Except as provided in clause 2.2.1 or 2.3, neither Party shall assign or transfer or purport to assign or transfer any of its rights or obligations under
this Agreement except with the prior written consent of the other Party. 
  

	 	16.	NOTICES. 

  
 16.1. Any notice or other communication under or in connection with this Agreement shall be in writing in the English language and shall
be delivered personally or sent by first class post pre-paid recorded delivery and air mail or by telefax, to the Party due to receive the notice or communication at its address set out in this Agreement or such other address as either Party may
specify by notice in writing to the other. 
  
 16.2. In the absence of evidence of earlier receipt, any notice or other communication shall be deemed to have been duly given: 
  
 16.2.1. if delivered personally, when left at the address referred to in clause 15.1; 
  
 16.2.2 if sent by mail other than air mail, six (6) days
after posting it; 
  
 16.2.3. if sent by air
mail, six (6) days after posting it; and 
  
 16.2.4. if sent by telefax, when clearly received in full. 
  

	 	17.	GOVERNING LAW AND JURISDICTION. 

  
 17.1. This Agreement is governed by, and shall be construed in accordance with Delaware (USA) law. 
  

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 17.2. Each party irrevocably waives any objection which it might at any time have to the
courts of Delaware being nominated as the forum to hear and determine any proceedings and to settle any disputes and agrees not to claim that the courts of Delaware are not a convenient or appropriate forum. 
  
 17.3. Each party agrees that the process by which any
proceedings are begun in Delaware may be served on biosyn by being delivered in accordance with clause 15. Nothing contained in this paragraph shall affect the right to serve process in any other manner permitted by law. 
  
 17.4. This Agreement is drawn up in the English language and
if this Agreement is translated into any language other than the English language this version shall prevail. 
  

	 	18.	COUNTERPARTS. 

  
 This Agreement may be executed in any number of counterparts each of which when executed and delivered shall be an original, but all the counterparts
together shall constitute one and the same instrument. 
  
 As
WITNESS the hands of the Parties or their duly authorized representatives the day and year first above written. 
  

			
		
	 Signed by:
	 	/s/    Stephan Allard
	 for and behalf of
 BIOYEST, Inc.


  

			
		
	 Signed by:
	 	/s/    Shammana N. Muddukrishna
	 for and behalf of
 BIOSYN ARNZEIMITTEI GmbH


  

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 Schedule 1 

 
 [*] 
  

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 [*]

  

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 [*] 
  

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 Schedule 2 

 
 Purchase order 
  

			
	TO:	 	 biosyn Corporation
 5939 Darwin Courts, Suite
114
 Carlsbad, CA 92008

		
	FROM:	 	 BIOVEST, Inc.
 [
 8500 Evergreen Blvd. NW
 Minneapolis MN 55433


  
 Please find below an order for biosyn
KLH made in accordance with the terms of the Supply Agreement entered into between us on November 1, 2004 
  
 Date of order: 
  
 Quantity of order: 

 
 Delivery Date: within 60 days from date of order 
  
 Address in the 
 USA for delivery: 
  
 Price: 
  
 Payment Enclosed ([*] of Total Product): 
  
 Payment Date: 30 days from end of month in which order actually received at USA address for
delivery. 
  
 Please confirm your acceptance of this order within 7 days of the
date hereof by completing the acceptance form below and returning it to us, for the attention of by fax (fax number). 
  

			
	
	  
	 Signed
 For and on behalf of BIOVEST, INTERNATIONAL, Inc.

	
	 
	 Date, Place

	
	 Order acceptance by biosyn Arzneimittel GmbH

	
	  
	 Signed
 For and on behalf biosyn Arzneimittel GmbH


  

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 Schedule 3 

 
 Free Carrier 
  

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 Schedule 3 

 
 Free Carrier 
  
 “Free Carrier” means that the seller fulfils his obligation to
deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may chose within the place or range stipulated
where the carrier shall take the goods into his charge. When, according to commercial practice, the seller’s assistance is required in making the contract with the carrier (such as in rail or air transport) the seller may act at the
buyer’s risk and expense. 
  
 This term may be used for any
mode of transport, including multimodal transport. 
  
 “Carrier” means any person who, in a contract of carriage, under-takes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or buy a combination of such modes. If the buyer instructs the
seller to deliver the cargo to a person, e.g. a freight forwarder who is not a “carrier”, the seller is deemed to have fulfilled his obligation to deliver the goods when they are in the custody of that person. 
  
 “Transport terminal” means a railway terminal, a freight station, a
container terminal or yard, a multipurpose cargo terminal or any similar receiving point. 
  
 “Container” includes any equipment used to unitise cargo, e.g. all types of containers and/or flats, whether ISO accepted or not, trailers, swap bodies, ro-ro equipment, igloos, and applies to all modes of
transport. 
  
 A. The seller must 
  
 A.1 Provision of goods In conformity with the contract 
  
 Provide the goods and the commercial invoice, or its equivalent electronic
message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract. 
  
 A.2 Licenses, authorizations and formalities 
  
 Obtain at his own risk and expense any export license or other official authorization and carry out all customs formalities necessary for the exportation
of the goods. 
  
 A.3 Contract of carriage and insurance 
  
 a) Contract of carriage 
  
 No obligation. However, if requested by the buyer or if it is commercial
practice and the buyer does not give an instruction to the contrary in due time, the seller may contract for carriage on usual terms at the buyer’s risk and expense. The seller may decline to make the contract and, if he does, shall promptly
notify the buyer accordingly. 
  
 b) Contract of insurance

  
 No obligation. 
  

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 A.4 Delivery 
  
 Deliver the goods into the custody of the carrier or another person (e.g. a freight forwarder) named by the buyer, or chosen by the seller in accordance
with A3 .a), at the named place or point (e.g. transport terminal or other receiving point) on the date or within the period for delivery and in the manner agreed or customary at such point. If no specific point has been agreed, and if there are
several points available, the seller may select the point at the place of delivery which best suits his purpose. Failing precise instructions from the buyer, the seller may deliver the goods to the carrier in such a manner as the transport mode of
that carrier and the quantity and/or nature of the goods may require. 
  
 Delivery to the carrier is completed: 
  
 I) In the case
of rail transport when the goods constitute a wagon load (or a container load carried by rail) the seller has to load the wagon or container in the appropriate manner. Delivery is completed when the loaded wagon or container is taken over by
the railway or by another person acting on its behalf. 
  
 When
the goods do not constitute a wagon or container load, delivery is completed when the seller has handed over the goods at the railway receiving point or loaded them into a vehicle provided by the railway. 
  
 II) In the case of road transport when loading takes place at the
seller’s premises, delivery is completed when the goods have been loaded on the vehicle provided by the buyer. 
  
 When the goods are delivered to the carrier’s premises, delivery is completed when they have been handed over to the road carrier or to another
person acting on his behalf. 
  
 III) In the case of transport by
inland waterway when loading takes place at the seller’s premises, delivery is completed when the goods have been loaded on the carrying vessel provided by the buyer. 
  
 When the goods are delivered to the carrier’s premises, delivery is completed when they have been handed over to the
inland waterway carrier or to another person acting on his behalf. 
  
 IV) In the case of sea transport when the goods constitute a full container load (FCL), delivery is completed when the loaded container is taken over by the sea carrier. When the container has been carried to an operator of a
transport terminal acting on behalf of the carrier, the goods shall be deemed to have been taken over when the container has entered into the premises of that terminal. 
  
 When the goods are less than a container load (LCL), or are not to be containerised, the seller has to carry them to the
transport terminal. Delivery is completed when the goods have been handed over to the sea carrier or to another person acting on his behalf. 
  
 V) In the case of air transport, delivery is completed when the goods have been handed over to the air carrier or to another person acting on his
behalf. 
  
 VI) In the case of unnamed transport, delivery
is completed when the goods have been handed over to the carrier or to another person acting on his behalf. 
  

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 VII) In the case of multimodal transport, delivery is completed when the goods have been handed
over as specified in I)—VI), as the case may be. 
  
 A.5 Transfer of risks

  
 Subject to the provisions of B.5., bear all risks of loss
of or damage to the goods until such time as they have been delivered in accordance with A.4. 
  
 A.6 Division of costs 
  
 Subject to the provisions of B.6 
  

	 	•	 	pay all costs relating to the goods until such time as they have been delivered to the carrier in accordance with A.4.; 

  

	 	•	 	pay the costs of customs formalities as well as all duties, taxes, and other official charges payable upon exportation. 

  
 A.7 Notice to the buyer 
  
 Give the buyer sufficient notice that the goods have been delivered into the custody of the carrier. Should the carrier fail
to take the goods into his charge at the time agreed, the seller must notify the buyer accordingly. 
  
 A.8 Proof of delivery, transport document or equivalent electronic message 
  
 Provide the buyer at the seller’s expense, if customary, with the usual document in proof of delivery of the goods in accordance with A.4.

  
 Unless the document referred to in the preceding paragraph is
the transport document, render the buyer at the latter’s request, risk and expense, every assistance in obtaining a transport document for the contract of carriage (for example, a negotiable bill of lading, a non-negotiable sea waybill, an
inland waterway document, an air waybill, a railway consignment note, a road consignment note, or a multimodal transport document). 
  
 When the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an
equivalent electronic data interchange (EDI) message. 
  
 A.9 Checking
packaging — marking 
  
 Pay the costs of those checking
operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods to the carrier. Provide at his own expense packaging (unless it is usual for the particular trade to send the goods of
the contract description unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (e.g. modalities destination) are made known to the seller before the contract of sale is concluded.
Packaging is to be marked appropriately. 
  
 A.10 Other obligations

  
 Render the buyer at the latter’s request, risk and
expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A.8) issued or transmitted in the country of delivery and/or of origin which the buyer may 

  

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require for the importation of the goods and, where necessary, for their transit through another country. 
  
 Provide the buyer, upon request, with the necessary information for procuring
insurance. 
  
 B. The Buyer Must 
  
 B.1 Payment of the price 
  
 Pay the price as provided in the contract of sale.  
  
 B.2 Licenses, authorizations and formalities 
  
 Obtain at his own risk and expense any import license or other official
authorization and carry out all customs formalities for the importation of the goods and, where necessary, for their transit through another country. 
  
 B.3 Contract of carriage 
  
 Contract at his own expense for the carriage of the goods from the named place, except as provided for in A.3.a). 
  
 B.4 Taking delivery 
  
 Take delivery of the goods in accordance with A.4. 
  
 B.5 Transfer of risks 
  
 Bear all risks of loss of or damage to the goods from the time they have been delivered in accordance with A.4. 
  
 Should he fail to give notice in accordance with B.7., or should the carrier
named by him fail to take the goods into his charge, bear all risks of loss of or damage to the goods from the agreed date or the expiry date of any period stipulated for delivery, provided, however, that the goods have been duly appropriated
to the contract, that is to say, clearly set aside or otherwise identified as the contract goods. 
  
 B.6 Division of costs 
  
 Pay all costs relating to the goods from the time when they have been delivered in accordance with A,4. 
  
 Pay any additional costs incurred, either because he fails to name the carrier, or the carrier named by him fails to take the goods into his charge at the
agreed time, or because he has failed to give appropriate notice in accordance with B.7., provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.

  
 Pay all duties, taxes and other official charges as well as
the costs of carrying out customs formalities payable upon importation of the goods and, where necessary, for their transit through another country. 
  

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 B.7 Notice to the seller 
  

Give the seller sufficient notice of the name of the carrier and, where necessary, specify the mode of transport, as well as the date or period for
delivery the goods to him, as the case may be, of the point within the place where the goods should be delivered to the carrier. 
  
 B.8 Proof of delivery, transport document or equivalent electronic message 
  
 Accept the proof of delivery in accordance with A.8,  
  
 B.9 Inspection of goods 
  
 Pay, unless otherwise agreed, the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation. 
  
 B.10 Other obligations 
  
 Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A. 10. and
reimburse those incurred by the seller in rendering his assistance in accordance therewith and in contracting for carriage in accordance with A.3.a). 
  
 Give the seller appropriate instructions whenever the seller’s assistance in contracting for carriage is required in accordance with A.3.a).

  

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