Document:

Exhibit 4.39 

 

Contract
No: ____________             

 

Tianjin Construction Engineering Construction
Contract

 

(JF-2017-068)

 

Formulated by Tianjin Urban and Rural Construction Commission
and Tianjin Market and Quality Supervision Commission

 

    	 	 	 

     

    

 

Content

 

	Part I Contract agreement 	5
	I Project overview 	5
	II Contract period 	5
	III Quality standard 	6
	IV Contract price and contract price form	6
	V Project Manager 	6
	VI Composition of contract documents 	6
	VII Undertaking	7
	VIII Definition of terms	7
	IX Signing time 	7
	X Signing place 	7
	XI Supplementary Agreement	7
	XII Effectiveness	7
	XIII. Number of contracts	8
	Part II General Contract Terms	10
	1. General agreement 	10
	1.1 Definitions and interpretation 	10
	1.2 Language	13
	1.3 Law	14
	1.4 Standards and Specifications 	14
	1.5 Priorities of contract documents 	14
	1.6 Drawings and Contractor Documents 	15
	1.7 Contact 	16
	1.8 Anti-bribery 	16
	1.9 Fossils and cultural relics 	16
	1.10 Transportation 	17
	1.11 Intellectual Property 	18
	1.12 Confidentiality 	19
	1.13 Correction of the bill of quantities error 	19
	2. Employer 	19
	2.1 Licensing or Approval 	19
	2.2 Employer Representative 	20
	2.3 Employer personnel 	20
	2.4 Construction site, construction conditions and provision of basic materials 	20
	2.5 Proof of funding source and payment guarantee 	21
	2.6 Payment of contract price 	21
	2.7 Organization of completion acceptance 	22
	2.8 On-site unified management agreement 	22
	3. Contractor 	22
	3.1 General obligations of the contractor 	22
	3.2 Project Manager 	23
	3.3 Contractor personnel	24
	3.4 Contractor on-site inspection 	25

 

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	3.5 Subcontracting 	25
	3.6 Engineering care and finished product, semi-finished product protection 	26
	3.7 Performance Guarantee 	27
	3.8 Consortium 	27
	4. Supervisor 	27
	4.1 General requirements of the supervisor 	27
	4.2 Supervisors 	28
	4.3 Supervisor's instructions 	28
	4.4 Agreed or determined 	28
	5. Engineering quality 	29
	5.1 Quality requirements 	29
	5.2 Quality Assurance Measures 	29
	5.3 Concealed Engineering Inspection 	30
	5.4 Disposal of unqualified works 	31
	5.5 Quality Dispute Detection 	31
	6. Safe and civilized construction and environmental protection 	32
	6.1 Safe and civilized construction 	32
	6.2 Occupational Health 	35
	6.3 Environmental Protection 	36
	7. Duration and schedule 	36
	7.1 Construction organization design 	36
	7.2 Construction schedule 	37
	7.3 Commencement of work 	37
	7.4 Measuring the take-up line 	38
	7.5 Delay in construction period 	38
	7.6 Unfavorable material conditions 	39
	7.7 Unusual climatic conditions 	39
	7.8 Suspension of construction	40
	7.9 Completion in advance 	41
	8. Materials and Equipment 	42
	8.1 The Contractor supplies materials and engineering equipment	42
	8.2 Contractor procurement of materials and engineering equipment 	42
	8.3 Receiving and rejecting materials and engineering equipment 	42
	8.4 Storage and use of materials and engineering equipment 	43
	8.5 Prohibition of the use of unqualified materials and engineering equipment 	44
	8.6 Samples 	44
	8.7 Replacement of materials and engineering equipment 	45
	8.8 Construction equipment and temporary facilities 	46
	8.9 Material and Equipment Specific Requirements 	46
	9. Testing and inspection 	46
	9.1 Test equipment and test personnel 	46
	9.2 Sampling 	47
	9.3 Testing and inspection of materials, engineering equipment and engineering 	47
	9.4 Field Process Test 	47
	10. Change 	48
	10.1 Scope of the change 	48

 

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	10.2 Right of Change 	48
	10.3 Change Procedure 	48
	10.4 Change valuation 	49
	10.5 Reasonable suggestions from the Contractor 	49
	10.6 Adjustment of the schedule caused by the change 	50
	10.7 Temporary valuation 	50
	10.8 Provisional Amount 	52
	10.9 Day-to-day work 	52
	11. Price adjustment 	52
	11.1 Adjustments due to market price fluctuations 	52
	11.2 Adjustments due to legal changes 	55
	12. Contract price, measurement and payment 	55
	12.1 Contract Price Form 	55
	12.2 Advance Payment 	56
	12.3 Quantity verification 	57
	12.4 Construction Progress Payment 	58
	12.5 Payment Account 	61
	13. Acceptance and construction trial run 	61
	13.1 Sub-item project acceptance 	61
	13.2 Completion Acceptance 	62
	13.3 Construction trial run 	64
	13.4 Early delivery of unit project acceptance 	64
	13.5 Operation during construction period 	65
	13.6 Demobilization 	66
	14. Completion settlement 	66
	14.1 Completion settlement Application 	66
	14.2 Completion settlement review 	67
	14.3 Agreement on leaving some of the engineering work unfinished	68
	14.4 Defect liability and warranty 	68
	15. Defects and Warranty 	68
	15.1 Principle of Remedy Defects 	68
	15.2 Defect liability period 	69
	15.3 Quality deposit	70
	15.4 Warranty 	71
	16. Breach of contract 	72
	16.1 Breach of contract by the Employer 	72
	16.2 Breach of contract by the Contractor 	74
	16.3 Breach of contract caused by third parties 	75
	17. Force majeure 	76
	17.1 Confirmation of Force Majeure 	76
	17.2 Notice of Force Majeure 	76
	17.3 Responsibility of force majeure 	76
	17.4 Termination of the contract due to force majeure 	76
	18. Insurance 	78
	18.1 Construction Insurance 	78
	18.2 Injury Insurance 	78
	18.3 Other Insurance 	78

 

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	18.4 Continuing Insurance 	79
	18.5 Insurance Certificate 	79
	18.6 Remedies not covered by agreement 	79
	18.7 Notification obligations 	79
	19. Claim 	80
	19.1 Claim of The Contractor 	80
	19.2 Treatment of Contractor’s Claims 	81
	19.3 Claim by the Employer 	81
	19.4 Treatment of the claim of the Employer 	81
	19.5 Term of claim for claim 	82
	20. Dispute Resolution 	82
	20.1 Reconciliation 	82
	20.2 Mediation 	82
	20.3 Dispute Review 	83
	20.4 Arbitration or litigation 	84
	20.5 Effect of Dispute Resolution Clause 	84
	21. Supplementary clauses 	84
	Part III Special Contract Terms 	85
	1. General agreement 	85
	2. The Employer 	90
	3. The Contractor 	91
	4. Supervisor 	94
	5. Construction quality 	95
	6. Safe and civilized construction and environmental protection 	96
	7. Deadline and progress 	96
	8. Materials and Equipment 	98
	9. Testing and inspection 	99
	10. Change 	99
	11. Price adjustment 	100
	12. Contract Price, Measurement and Payment 	102
	13. Acceptance and trial run 	105
	14. Completion settlement 	106
	15. Defect liability period and warranty 	107
	16. Default 	109
	17. Force Majeure 	110
	18. Insurance 	111
	20. Dispute Resolution 	111
	21. Supplementary terms 	112
	Annex	113

 

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Part I Contract Agreement

 

Employer (full name): Tianjin
Dairui Technology Co., Ltd.

 

Contractor (full name): Zhejiang
Dajing Construction Group Co., Ltd.

 

According to the "Contract
Law of the People's Republic of China", the "Building Law of the People's Republic of China" and relevant laws and
regulations, in accordance with the principles of equality, voluntariness, fairness and good faith, the two sides reached consensus
on the construction of Tianjin Dairui Technology Co., Ltd.’s facilities with annual output of 14.4 million garments and related
matters, and signed the following agreement.

 

I Project overview

 

1. Project name: Tianjin
Dairui Technology Co., Ltd.’s facilities with an annual output of 14.4 million apparel

 

2. Construction place: No.43, Guda Road, Jingbin Industrial Park,
Wuqing District, Tianjin

 

3.
Project approval number: Tianjin Wuqing District approved investment record【2018】No.447.

 

4. Fund source: Self-fundraising

 

5. About the Project: The
project of Tianjin Dairui Technology Co., Ltd.’s facilities with annual output of 14.4 million garments include
4 buildings, 1 equipment room, 1 dining hall, 1 dormitory building, 1 production building, 1 garbage room, 1 door
guard, outdoor road floor project, indoor and outdoor water supply and drainage engineering, firefighting and other supporting
facilities, etc.

 

Please also refer to the appendix “Contractor Contracting
Project List”

 

6. Project contracting scope:

 

4 buildings, 1 equipment room, 1 dining hall, 1 dormitory building,
1 production building, 1 garbage room, 1 door guard, outdoor road floor project, indoor and outdoor water supply and drainage engineering,
firefighting and other supporting facilities, etc.

 

II Contract duration

 

Planned
commencement date: Nov 6, 2018

 

Planned completion date: Feb 5,
2020

 

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Total calendar
days of construction period: 456 days

 

If the total calendar days of
the construction period are inconsistent with the number of construction days calculated according to the planned completion date,
the total calendar days of the construction period shall prevail.

 

The commencement date is based
on the actual commencement date. The actual commencement date is based on the date of commencement of the written notice of the
contractor actually received by the contractor.

 

III Quality standards

 

The quality of the project complies
with the quality standards stipulated in GB50300-2013 “Unified Standard for Construction Quality Acceptance of Construction
Engineering”

 

IV Contracted contract price and contract price
form

 

1. Contract price:

 

The contract price
is temporarily set at RMB281,115,568, including construction fees of RMB6,503,639 and material, engineering equipment
fees of RMB / , engineering fees of RMB / , temporary item of fees of RMB / and steel structure fees of RMB77,193,349.

 

2. Contract
price form: Integrated unit price contract

 

V Project manager

 

Project manager: Jiansong Zheng

 

VI Contract documents

 

This agreement forms the contract document together with the following
documents:

 

(1) Notice of winning the bid (if any);

 

(2) Tender letter and its appendix (if any);

 

(3) Special contract terms and their attachments;

 

(4) General contract terms;

 

(5) Technical standards and requirements;

 

(6) Drawings;

 

(7) A list of engineering quantities or budgets have been priced;

 

(8) Other contract documents.

 

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The contract-related documents formed during the contract conclusion
and performance process form part of the contract documents.

 

The above contract documents include the supplements and amendments
made by the parties to the contract on the contract documents, and the documents belonging to the same category shall be subject
to the latest signature. The terms of the special contract and its attachments shall be stamped by the parties to the contract.

 

VII Undertaking

 

1. The
Employer undertakes to perform the project approval procedures, raise the project construction funds in accordance with the law,
and pay the contract price in accordance with the terms and methods stipulated in the contract.

 

2. The
contractor promises to organize the construction of the project in accordance with the law and contract, to ensure the quality
and safety of the project, not to subcontract and illegal subcontracting, and to bear the corresponding engineering maintenance
responsibility during the defect liability period and warranty period.

 

3. If
the contractor and the contractor sign the contract through tendering, the parties understand and promise not to sign an agreement
that is different from the substantive content of the contract for the same project.

 

VIII Definition of terms 

 

The definition
of the terms in this agreement is the same as that given in the general contract terms of the second part.

 

IX Contract signing time

 

The Contract
was signed on October 25 2018.

 

X Place of contract signing

 

The Contract
was signed in Wuqing District, Tianjin.

 

XI Supplementary agreement

 

For any matters uncovered herein, the parties may agree on and conclude
in supplementary agreements, of which is an integral part of the contract.

 

XII Effectiveness

 

This contract shall become effective on the date when the legal
representative or authorized representative of both parties signs or seals and affixes the special seal or official seal for contract.

 

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XIII Number of contract

 

This contract is in the form of 8 copies, all of which have the
same legal effect, 4 for the employer and 4 for the contractor.

 

Employer:    (Seal) /s/ Seal of Tianjin Dairui Technology Co., Ltd.

 

Legal representative or his agent:

 

(Seal) /s/ Seal of Ou Chen

 

Organization Code of Employer: 91120222310589113Q

 

Address: East side of Guda Road, Jingbin Industrial Park, Wuqing
District, Tianjin

 

Postal code:

 

Legal representative: Ou Chen

 

Principal agent: Wei Xing

 

Telephone: * * *

 

Fax:

 

Email: weix@jumei.com

 

Bank of deposit: China Construction Bank Co., Ltd. Beijing Life
Park Sub-branch

 

Bank account: * * *

 

Contractor:   (Seal) /s/ Seal of Zhejiang Dajing Construction Group Co., Ltd.

 

Legal representative or his agent:

 

(Seal) /s/ Seal of Jinrong Feng

 

Organization Code of Contractor: 91330000147950465D

 

Address: No. 8 Dongfang Avenue, Linhai City, Zhejiang
Province

 

Postal code: 317000

 

Legal representative: Jinrong Feng

 

Principal agent:

 

Telephone: 0576-85382222

 

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Fax: 0576-85382200

 

Email: djzhenhai@163.com

 

Bank of deposit: China Construction Bank Linhai Branch

 

Bank account: * * *

 

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Part II General Contract Terms

 

1. General agreement

 

1.1
Definitions and interpretation

 

The following words in the contractual
agreement, general contract terms, and special contract terms have the meaning given by this paragraph.

 

1.1.1 Contract

 

1.1.1.1 Contract refers to the
binding documents stipulated by the law and the parties to the contract. The documents constituting the contract include the contract
agreement, the notice of winning the bid (if any), the bidding letter and its appendix (if any), and the special contract terms.
And its annexes, general contract terms, technical standards and requirements, drawings, price lists or budget books, and other
contract documents.

 

1.1.1.2 Contract Agreement: A
written document called “Contract Agreement” signed by the Employer and the Contractor that constitutes the Contract.

 

1.1.1.3 Notice of winning the
bid refers to the written documents that constitute the contract and notify the contractor of the winning bid.

 

1.1.1.4 Tender letter refers to
the document called “Tender Letter” for bidding that is completed and signed by the contractor that constitutes the
contract.

 

1.1.1.5 Appendices to the Tender
Letter refers to the document attached to the Tender Letter attached to the Tender Letter.

 

1.1.1.6 Technical standards and
requirements refer to the technical standards and requirements of the country, industry or locality that should be observed or
guided by the construction of the contract, as well as the technical standards and requirements stipulated in the contract.

 

1.1.1.7 Drawings refer to the
drawings that constitute the contract, including the design documents, construction drawings, aerial drawings and models that are
provided by the contractor in accordance with the contract or approved by the contractor, and the drawings and documents formed
during the performance of the contract. The drawings shall be examined and approved in accordance with the law.

 

1.1.1.8 Listed quantity of engineering
quantity refers to the list of engineering quantities, including descriptions and forms, which are composed of the contractor and
filled out and marked with the price according to the specified format and requirements.

 

1.1.1.9 Budget Book refers to
the project budget document prepared by the contractor in accordance with the format and requirements specified by the contractor.

 

1.1.1.10 Other contract documents
refer to contractually binding documents or written agreements agreed upon by the parties to the contract. The parties to the contract
may agree on the terms of the special contract.

 

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1.1.2 Parties to the contract
and other related parties

 

1.1.2.1 Parties to the contract:
refers to the contractor and the contractor.

 

1.1.2.2 Employer means the party
signing the contract agreement with the contractor and the legal heir who obtained the qualification of the party.

 

1.1.2.3 Contractor refers to the
party that has signed the contract agreement with the contractor, and has the corresponding construction contracting qualification
and the legal heir who obtained the qualification of the party.

 

1.1.2.4 Supervisor refers to the
legal person or other organization specified in the terms of the special contract and entrusted by the contractor to conduct project
supervision and management in accordance with the law.

 

1.1.2.5 Designer refers to the
legal person or other organization specified in the terms of the special contract and entrusted by the contractor to be responsible
for the engineering design and possessing the corresponding engineering design qualification.

 

1.1.2.6 Subcontractor refers to
a legal person with corresponding qualifications who subcontracts part of the project or work in accordance with the law and contract,
and signs a subcontract with the contractor.

 

1.1.2.7 Employer's Representative
means the person appointed by the Employer and dispatched to the construction site to exercise the rights of the Employer within
the authorization of the Employer.

 

1.1.2.8 Project manager refers
to the project leader appointed by the contractor and stationed at the construction site, responsible for the performance of the
contract within the scope of the contractor's authorization, and having corresponding qualifications in accordance with the law.

 

1.1.2.9 Supervisor: This is the
general manager who is appointed by the supervisor and dispatched to the construction site for project supervision.

 

1.1.3 Engineering and equipment

 

1.1.3.1 Engineering refers to
permanent works and/or temporary works corresponding to the scope of project contracting in the contract agreement.

 

1.1.3.2 Permanent works refer
to the construction and transfer of the project to the contractor, including engineering equipment, as agreed in the contract.

 

1.1.3.3 Temporary works refer
to all kinds of temporary works built for the completion of the contracted permanent works, excluding construction equipment.

 

1.1.3.4 Unit project refer to
the permanent project specified in the contract agreement with independent construction conditions and capable of forming independent
use functions.

 

1.1.3.5 Engineering equipment
refers to electromechanical equipment, metal structure equipment, instruments and other similar equipment and devices that constitute
permanent engineering.

 

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1.1.3.6 Construction equipment
refers to the equipment, utensils and other items required to complete the various tasks stipulated in the contract, but does not
include engineering equipment, temporary works and materials.

 

1.1.3.7 Construction site refers
to the site used for construction and other places specified in the special contract terms as part of the construction site, including
permanent land occupation and temporary land occupation.

 

1.1.3.8 Temporary facilities refer
to temporary production and living facilities that serve the completion of various tasks stipulated in the contract.

 

1.1.3.9 Permanent land occupation
refer to the land specified in the special contract terms for permanent implementation of the project.

 

1.1.3.10 Temporary land occupation
refer to the land specified in the special contract terms that needs to be temporarily occupied for the implementation of the project.

 

1.1.4 Date and time limit

 

1.1.4.1 Commencement date: including
planned start date and actual start date. The planned start date refers to the date of commencement of work as stipulated in the
contract agreement; the actual start date refers to the date of commencement as stated in the notice of commencement of work issued
by the supervisor in accordance with the provisions of Section 7.3.2 [Notice of commencement of work].

 

1.1.4.2 Completion Date includes
planned completion date and actual completion date. The planned completion date refers to the date of completion as stipulated
in the contract agreement; the actual completion date is determined in accordance with the agreement in Section 13.2.3 [Completion
Date].

 

1.1.4.3 Construction period refers
to the period of time required for the contractor to complete the project as stipulated in the contract agreement, including the
change of the time limit according to the contract.

 

1.1.4.4 Defect liability period
refers to the period during which the contractor undertakes the defect repair obligation according to the contract, and the time
limit for the issuer to reserve the quality deposit (except for the performance bond) is calculated from the actual completion
date of the project.

 

1.1.4.5 Warranty period refers
to the time limit for the contractor to assume the warranty responsibility for the project in accordance with the contract, and
shall be calculated from the date of acceptance of the project completion acceptance.

 

1.1.4.6 Base date: The project
for bidding is based on the 28-day date before the bid deadline, and the project directly contracted is based on the 28-day date
before the contract signing date.

 

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1.1.4.7 Days: Unless otherwise
specified, refer to calendar days. The calculation of the time by day in the contract is not counted on the day of the start, and
is calculated from the next day. The deadline for the last day of the deadline is 24:00 on the day.

 

1.1.5 Contract price and cost

 

1.1.5.1 Contracted Contract Price
refers to the total amount determined by the Employer and the Contractor in the Contract Agreement, including safe and civilized
construction fees, provisional valuation and provisional amount.

 

1.1.5.2 Contract price refers
to the amount that the contractor uses to pay the contractor to complete all the work within the scope of the contract in accordance
with the contract, including the price changes incurred in the contract performance in accordance with the contract.

 

1.1.5.3 Cost means all necessary
expenses incurred or to be incurred in the performance of the contract, including management fees and other expenses that should
be shared by the contractor and the contractor, excluding profits.

 

1.1.5.4 Temporary valuation refers
to the amount of materials, engineering equipment, unit price, professional engineering and service work provided by the contractor
in the bill of quantities or budget book to pay for the inevitable but temporarily undetermined price.

 

1.1.5.5 Temporary amount refers
to a sum of money that the contractor tentatively sets in the bill of quantities or budget book and included in the contract price,
which has not been determined at the time of signing the project contract or unforeseen purchases of materials, engineering equipment,
services, engineering changes that may occur during construction, contract price adjustments at the time of contractual adjustment
factors, and claims incurred, on-site visa confirmation, etc.

 

1.1.5.6 Daily labor refers to
a way of calculating the unit price stipulated in the contract when the contractor completes the sporadic work proposed by the
contractor or needs to adopt the change of the daily work price during the contract performance.

 

1.1.5.7 Quality Margin means the
guarantee used by the Contractor to ensure that it fulfills its defect repair obligations during the defect liability period in
accordance with Sub-Section 15.3 [Quality Assurance].

 

1.1.5.8 Total price item refers
to the item that has no engineering quantity calculation rule in the current national, industry and local measurement rules, and
is calculated in the price list or budget book at the total price or in the form of rate.

 

1.1.6 Other

 

1.1.6.1 Written form refers to
the form in which contract documents, letters, telegrams, faxes, etc. can tangibly represent the contents contained. 

 

1.2 Language

 

The contract is written, explained
and explained in Chinese simplified Chinese. When the parties to the contract stipulate that more than two languages are used in
the terms of the special contract, Chinese is the language of priority interpretation and explanation of the contract.

 

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1.3 Law

 

The law referred to in the contract
refers to the laws, administrative regulations, departmental rules and regulations of the People's Republic of China, as well as
local regulations, autonomous regulations, separate regulations and local government regulations.

 

The parties to the contract may
stipulate other normative documents applicable to the contract in the terms of the special contract.

 

1.4 Standards and Specifications

 

1.4.1 Applicable to the national
standards, industry standards, local standards of the project location, and corresponding specifications, procedures, etc., if
the parties to the contract have special requirements, they shall be agreed in the terms of the special contract.

 

1.4.2 If the Employer requires
the use of foreign standards and specifications, the Employer shall be responsible for providing the original version and the Chinese
translation, and shall stipulate in the special contract terms the name, number of copies and time of the standard specification.

 

1.4.3 If the technical requirements
and functional requirements of the contractor for the project are higher than or stricter than the current national, industrial
or local standards, they shall be specified in the terms of the special contract. Except as otherwise stipulated in the special
contract terms, the contractor shall be deemed to have fully foreseen the complexity of the aforementioned technical standards
and functional requirements before signing the contract, and the resulting contract price includes the resulting expenses. 

 

1.5 Priorities of contract documents

 

The documents that form the contract
should be explained to each other and explain each other. Unless otherwise agreed in the terms of the special contract, the priority
order for the interpretation of the contract documents is as follows:

 

(1) Contractual agreement;

 

(2) Notice of winning the bid
(if any);

 

(3) Tender letter and its appendix
(if any);

 

(4) Special contract terms and
their attachments;

 

(5) General contract terms;

 

(6) Technical standards and requirements;

 

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(7) Drawings;

 

(8) A list of engineering quantities
or budgets have been priced;

 

(9) Other contract documents.

 

The above contract documents include
the supplements and amendments made by the parties to the contract for the contract documents, and the documents belonging to the
same category shall be subject to the latest signature.

 

The contract-related documents
formed during the contract conclusion and performance process form part of the contract documents and are based on their nature
to determine the order of priority interpretation.

 

1.6 Drawings and contractor documents

 

1.6.1 Provision and submission
of drawings

 

The contractor shall provide the
contractor with free drawings in accordance with the time limit, quantity and content as stipulated in the terms of the special
contract, and organize the contractor, supervisor and designer to carry out the drawing review and design disclosure. The Employer
shall not later than the commencement date specified in Section 7.3.2 [Notice of commencement of work]

 

Provide drawings to the contractor
14 days before the date.

 

If the contractor fails to provide
the drawings according to the contract, resulting in an increase in the contractor's expenses and/or delays in the construction
period, the contract shall be handled in accordance with Section 7.5.1 [delayed due to the contractor's reasons).

 

1.6.2 Drawing errors

 

Upon receipt of the drawings provided
by the contractor, the contractor shall notify the supervisor in a timely manner if there are any errors, omissions or defects
in the drawings. Upon receipt of the notice, the supervisor shall attach relevant opinions and immediately submit it to the contractor.
The contractor shall make a decision within a reasonable time after receiving the notice submitted by the supervisor. Reasonable
time means that the contractor, after receiving the notification from the supervisor, makes every effort to complete the modification
and supplement of the drawings.

 

1.6.3 Modification and addition
of drawings

 

Where the drawings need to be
revised and supplemented, the original design person and the approval department shall agree with the drawings, and the supervisor
shall submit the revised drawings or supplementary drawings to the contractor before the construction of the corresponding part
of the project or project. The contractor shall modify or supplement the contract. After the construction of the drawings.

 

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1.6.4 Contractor Documents

 

The contractor shall provide the
documents related to the construction that should be prepared by the contractor in accordance with the terms of the special contract,
and submit it to the supervisor in accordance with the time limit, quantity and form stipulated in the terms of the special contract,
and the contractor shall submit it to the contractor.

 

Unless otherwise stipulated in
the special contract terms, the supervisor shall complete the examination within 7 days after receiving the contractor's documents.
If the supervisor has objections to the contractor's documents, the contractor shall modify it and re-submit it to the supervisor.
The supervision of the supervisor does not relieve or exempt the contractor from the responsibility of the contract.

 

1.6.5 Maintenance of drawings
and contractor documents

 

Unless otherwise stipulated in
the special contract terms, the contractor shall keep a complete set of drawings and contractor documents at the construction site
for use by the contractor, supervisor and relevant personnel for engineering inspection.

 

1.7 Contact

 

1.7.1 Notices, approvals, certificates,
certificates, instructions, instructions, requirements, requests, consents, opinions, determinations and decisions relating to
the contract shall be in writing and shall be delivered to the recipient within the agreed time limit. 

 

1.7.2 The Employer and the Contractor
shall stipulate their respective delivery recipients and delivery locations in the terms of the special contract. In the event
of any change in the recipient or delivery location designated by the contracting party of either party, the other party shall
be notified in writing three days in advance.

 

1.7.3 The contractor and the contractor
shall promptly sign the correspondence from the other party to the place of delivery and the designated recipient. If the refusal
is not signed, the increased cost and/or delay of the construction period shall be borne by the refusal party.

 

1.8 Anti-bribery

 

The parties to the contract may
not seek illegal gains or damage the rights of the other party by bribery or disguised bribes. If the party’s contractor’s
bribe causes the other party’s loss, the loss shall be compensated and the corresponding legal liability shall be assumed.

 

The contractor shall not collude
with the third party hired by the supervisor or the contractor to damage the interests of the contractor. Without the written consent
of the Employer, the Contractor shall not provide the Supervisor with communication equipment, means of transport and any other
form of interest other than the contract, and shall not pay or remunerate to the Supervisor.

 

1.9 Fossils, cultural relics

 

All artifacts, monuments and other
relics, fossils, coins or items excavated at the construction site are owned by the state. Once the above-mentioned cultural relics
are found, the contractor shall take reasonable and effective protection measures to prevent any person from moving or damaging
the above-mentioned items, and immediately report to the relevant government administrative department and notify the supervisor.
The contractor, supervisor and contractor shall take the requirements of the relevant government administrative department

 

    	 	16	 

     

    

 

Proper protection measures, resulting
in increased costs and/or delays in the construction period, are borne by the Employer.

 

If the contractor fails to report
or conceal the report after discovering the cultural relics, causing the loss or damage of the cultural relics, the loss shall
be compensated and the corresponding legal responsibility shall be assumed.

 

1.10 Transportation

 

1.10.1 Right to enter and exit
the scene

 

Except as otherwise stipulated
in the special contract terms, the contractor shall be responsible for obtaining the approval procedures and all rights required
for access to the construction site and obtaining the rights to construct roads, bridges and other infrastructure required for
construction, and shall bear the relevant requirements according to the construction requirements. Processing costs and construction
costs. The contractor shall assist the Employer in the formalities of constructing roads, bridges and other infrastructure inside
and outside the yard.

 

The contractor shall inspect the
construction site before entering into the contract, and reasonably foresee the manner, means and path required for entry and exit
of the construction site required for the construction according to the project scale and technical parameters. The contractor
shall submit a written investigation report to the Employer, as the Contractor shall not reasonably foresee the increased costs
and/or delays of the construction period to be borne by the Contractor.

 

1.10.2 Off-site traffic

 

The contractor shall provide the
technical parameters and specific conditions of the off-site transportation facilities. The contractor shall abide by the relevant
traffic regulations, strictly follow the limited loads of roads and bridges, and implement the relevant regulations on road speed
limit, limit line, and prohibition of overload, and cooperate with traffic management. Departmental supervision and inspection.
If the off-site transportation facilities cannot meet the construction needs, the contractor shall be responsible for the improvement
and bear the relevant expenses.

 

1.10.3 On-site traffic

 

The Employer shall provide the
technical parameters and specific conditions of the on-site transportation facilities, and shall provide the contractor with free
access to the on-site roads and transportation facilities required for the construction of the project in accordance with the terms
of the special contract. If the above road or transportation facilities are damaged due to the contractor's reasons, the contractor
is responsible for repairing and accepting all the additional costs.

 

    	 	17	 

     

    

 

In addition to the on-site roads
and transportation facilities provided by the contractor in accordance with the contract, the contractor is responsible for the
construction, maintenance, maintenance and management of other on-site temporary roads and transportation facilities required for
construction. The contractor and the supervisor may use the temporary roads and transportation facilities built by the contractor
for the purpose of the contract.

 

The boundaries of off-site traffic
and on-site traffic are agreed by the parties to the contract in the terms of the special contract.

 

1.10.4 Transportation of oversized
and overweight parts

 

The oversized or overweight parts
transported by the contractor shall be handled by the contractor to the traffic management department, and the contractor shall
provide assistance. The cost of temporary reinforcement and modification of roads and bridges required for the transportation of
oversized or overweight parts and other related expenses shall be borne by the contractor, unless otherwise agreed in the terms
of the special contract.

 

1.10.5 Damage to roads and bridges

 

If the public roads and bridges
inside and outside the construction site are damaged due to the contractor's transportation, the contractor shall bear the full
cost of repairing the damage and the compensation that may be caused.

 

1.10.6 Waterway and air transport

 

The foregoing paragraphs of this
paragraph apply to water transport and air transport, where the term “road” includes rivers, routes, locks, airports,
wharves, dikes and other similar structures in waterways or air transport; The meaning of the words includes ships and airplanes.

 

1.11 Intellectual Property

 

1.11.1 Unless otherwise agreed
in the terms of the special contract, the contractor provides the contractor with the drawings, the technical specifications that
the contractor has prepared or commissioned for the implementation of the project, and the copyrights that reflect the documents
requested by the contractor or other similar nature belong to the contractor. The contractor may copy and use such documents for
the purpose of the contract, but not for other matters not related to the contract. The Contractor shall not copy, use or provide
the above documents to any third party for purposes other than the contract without the written consent of the Employer.

 

1.11.2 Unless otherwise stipulated
in the terms of the special contract, the contractor shall, in addition to the authorship of the documents prepared for the implementation
of the project, belong to the contractor, and the contractor may copy it for the purpose of operation, commissioning, maintenance
and transformation of the implementation project. Use such files, but not for other matters not related to the contract. The Contractor
shall not copy, use or provide the above documents to any third party for purposes other than the contract without the written
consent of the Employer.

 

    	 	18	 

     

    

 

1.11.3 The parties to the contract
warrant that they will not infringe the intellectual property rights of the other party and third parties in the performance of
the contract. The contractor shall bear the responsibility arising from the infringement of the patent right or other intellectual
property rights of others when using the materials, construction equipment, engineering equipment or construction techniques; the
materials provided by the contractor, construction equipment, engineering equipment or if the construction process causes infringement,
the contractor shall bear the responsibility.

 

1.11.4 Except as otherwise stipulated
in the special contract terms, the use fees of patents, know-how and technical secrets that the contractor has determined before
the contract is signed and signed at the time of signing are included in the contract price (with the agreed contract pricing method).
Irrelevant, that is, the contract price obtained by the integrated unit price pricing model includes the aforementioned usage fee.).

 

1.12 Confidentiality

 

Except as required by law or otherwise stipulated in the contract,
the Contractor shall not disclose the trade secrets, documents and information disclosed in the Contractor to the third party without
the consent of the Employer.

 

Except as required by law or otherwise stipulated in the contract,
without the consent of the Contractor, the Employer shall not disclose the technical secrets provided by the Contractor and the
commercial secrets such as the information and materials required to be kept confidential to third parties.

 

If one party intentionally divulges, the defaulting party shall
compensate the observant party for paying one percent of the total temporary price of the contract for the project as damages for
damages.

 

1.13 Correction of the bill of quantities error

 

Except as otherwise provided in the terms of the special contract,
the list of quantities provided by the Employer shall be deemed to be accurate and complete. When one of the following circumstances
occurs, the Employer shall amend it and adjust the contract price accordingly:

 

(1) There are missing
items or missing items in the bill of quantities;

 

(2) The deviation
of the engineering quantity list exceeds the engineering quantity deviation range stipulated in the special contract terms;

 

(3) Not
measured in accordance with the mandatory provisions of the current national measurement standards.

 

II. The Employer

 

2.1 License or approval

 

The
Employer shall abide by the law and handle the license, approval or filing required by the law, including but not limited to the
construction land planning permit, construction project planning permit, construction project construction permit, temporary water
use, temporary electricity, interruption of road traffic, temporary occupation of land and other permits and approvals for the
construction. The Employer shall assist the Contractor in handling the relevant construction certificates and approvals as required
by law.

 

    	 	19	 

     

    

 

If the above license, approval or filing is not
completed in time due to the reason of the Employer, the Employer shall bear the increased expenses and/or delays.

 

2.2
Employer representative

 

The
Employer shall specify the name, position, contact information and scope of authorization of the Employer's representative at the
construction site in the terms of the special contract. The Employer’s representative is responsible for handling the specific
matters related to the Employer during the performance of the Contract within the scope of the Employer’s authorization.
The behavior of the Employer’s representative within the scope of the authorization is the legal responsibility of the Employer.
If the Employer replaces his/her representative, the Employer shall be notified in writing 7 days in advance.

 

If
the representative of the Employer fails to perform his duties and obligations in accordance with the contract and causes the contract
to continue to perform normally, the Contractor may request the Employer to withdraw the representative of the Employer, and the
Employer has the right to decide whether to cancel the representative of the Employer after verifying the actual situation.

 

For
projects that are not legally supervised, the Supervisor's authority may be exercised by the Employer’s representative or
other person designated by the Employer.

 

2.3
Employer personnel

 

The
Employer shall require the Employer personnel at the construction site to abide by the law and relevant safety, quality, environmental
protection, civilized construction and other provisions, and to protect the Contractor from the losses and liabilities caused by
the Employer’s failure to comply with the above requirements.

 

The
Employer’s personnel include the Employer’s representative and other personnel stationed at the construction site sent
by the Employer.

 

2.4 Provision
of construction site, construction conditions and basic materials

 

2.4.1 Providing construction site

 

Except as
otherwise stipulated in the special contract terms, the Employer shall hand over the construction site to the Contractor no later
than 7 days before the commencement date.

 

2.4.2
Providing construction conditions

 

Except
as otherwise provided in the terms of the special contract, the Employer shall be responsible for providing the conditions required
for the construction, including:

 

    	 	20	 

     

    

 

(1) Connect
the necessary conditions for construction water, electric power, communication lines, etc. to the construction site;

 

(2)
Ensure that the Contractor is provided with the traffic conditions required for normal construction to enter the construction site;

 

(3)
Coordinate the treatment of underground pipelines and adjacent buildings, structures, and ancient and famous trees around the construction
site, and bear relevant expenses;

 

(4)
Other facilities and conditions to be provided in accordance with the terms of the special contract.

 

2.4.3 Providing
basic information

 

The Employer
shall provide the Contractor with underground pipeline data such as water supply, drainage, power supply, gas supply, heat supply,
communication, radio and television, and meteorological and hydrological observation data in the adjacent areas necessary, and
geological survey data, relevant basic materials such as adjacent buildings, structures and underground works for the construction
site and construction before the handover to the construction site, and shall be responsible for the authenticity, accuracy and
completeness of the information provided.

 

The basic
information that can be provided after the commencement of work is required, and the Employer should make every effort to provide
it in a timely and reasonable period.

 

2.4.4 Overdue liability

 

If the construction site,
construction conditions and basic materials are not provided to the Contractor in time due to the Employer’s
reasons, the Employer shall bear the additional costs and/or the Contractor agrees
that the construction period shall be postponed accordingly.

 

2.5 Proof
of funding source and payment guarantee

 

Except
as otherwise stipulated in the special contract terms, the Employer shall, within 28 days after receiving the written notice from
the Contractor requesting the source of funds, provide the Contractor with the corresponding proof of funding source that can pay
the contract price in accordance with the contract.

 

Unless
otherwise stipulated in the terms of the special contract, if the Employer requests
the Contractor to provide performance guarantee, the Employer shall provide the Contractor
with a payment guarantee. The payment guarantee may be in the form of a bank guarantee or a guarantee company guarantee, which
is specifically stipulated by the parties to the contract in the terms of the special contract.

 

2.6 Payment
of contract price

 

The
Employer shall pay the contract price to the Contractor in time according to the contract.

 

    	 	21	 

     

    

 

2.7 Organization
of completion acceptance

 

The
Employer shall organize the completion acceptance in time according to the contract.

 

2.8
On-site unified management agreement

 

The Employer shall sign a unified
management agreement with the Contractor and the Contractor of the professional project directly issued by the Employer shall clarify
the rights and obligations of the parties. The construction site unified management agreement is attached to the special contract
terms.

 

III. The
Contractor

 

3.1
General obligations of the Contractor

 

The
Contractor shall abide by the laws and engineering construction standards and standards during the performance of the contract
and fulfill the following obligations:

 

(1)
Handling the permit and approval that the Contractor shall handle in accordance with the law, and submit the results of the application
to the

 

(2)
Completing the project in accordance with legal provisions and contractual agreements, and assume the warranty obligations during
the warranty period;

 

(3)
Taking construction safety and environmental protection measures in accordance with legal provisions and contractual agreements,
handling industrial injury insurance, and ensuring the safety of engineering and personnel, materials, equipment and facilities;

 

(4)
Compiling the construction organization design and construction measures plan according to the work content and construction schedule
requirements as stipulated in the contract, and be responsible for the completeness, safety and reliability of all construction
operations and construction methods;

 

(5)
In carrying out all the work stipulated in the contract, the right of the Contractor and others to use public facilities such as
public roads, water sources, municipal pipe networks, etc. shall not be infringed upon to avoid interference with neighboring public
facilities. If the Contractor occupies or uses the construction site of another person and affects the operation or life of another
person, he shall bear corresponding responsibility;

 

(6)
Responsible for the protection of the construction site and its surrounding environment and ecology in accordance with the provisions
of Section 6.3 Environmental protection;

 

(7)
Take construction safety measures in accordance with the provisions of Section 6.1 Safe and civilized construction to ensure the
safety of the project and its personnel, materials, equipment and facilities, and to prevent personal injury and property damage
caused by construction;

 

    	 	22	 

     

    

 

(8)
Dedicating the price paid by the Contractor according to the contract to the contract project, and paying the salary of the employee
in time, and paying the Contractor the contract price in time;

 

(9)
Compiling the completion data in accordance with legal provisions and contractual agreements, completing the completion and filing
of the completion data, and handing over the Contractor according to the requirements for the number, content and time of the completed
materials as stipulated in the terms of the special contract;

 

(10) Other obligations to be
performed.

 

3.2
Project Manager

 

3.2.1
The Project Manager shall be the candidate confirmed by the parties to the contract, and specify the name, job title, registered
practice certificate number, contact information and scope of authorization of the Project Manager in the terms of the special
contract. The Project Manager shall represent the Contractor after authorization by the Contractor. The person is responsible for
fulfilling the contract. The Project Manager shall be the employee officially employed by the Contractor. The Contractor shall
submit the labor contract between the Project Manager and the Contractor to the Employer and shall submit the valid certificate
of the social insurance the Contractor paid for the Project Manager. If the Contractor does not submit the above documents, the
Project Manager has no right to perform the duties, and the Employer has the right to request the replacement of the Project Manager,
and the increased cost and/or delay of the construction period shall be borne by the Contractor.

 

The
Project Manager shall be resident at the construction site, and the monthly construction site shall not be less than the number
of days specified in the special contract terms. Project Managers may not concurrently serve as Project Managers for other projects.
When the Project Manager really needs to leave the construction site, he should notify the Supervisor in advance and obtain the
written consent of the Employer. The notice of the Project Manager shall specify the qualifications for registration and management
experience of the personnel who temporarily perform their duties, and the personnel shall have the ability to perform the corresponding
duties.

 

If the Contractor
violates the above-mentioned agreement, it shall be liable for breach of contract in accordance with the terms of the special contract.

 

3.2.2
The Project Manager organizes the project implementation according to the contract. In order to ensure construction safety and
personnel safety in an emergency, the Project Manager has the right to take necessary measures to ensure the safety of the person,
property and engineering related to the project, when it is unable to get in touch with the Employer’s representative and
the Chief Engineer. Submit a written report to the Employer's Representative and the Chief Engineer within 48 hours.

 

3.2.3
If the Contractor needs to change the Project Manager, he/she shall notify the Employer and the Supervisor in writing 14 days in
advance, and obtain the written consent of the Employer. The notice shall include the registration qualifications and management
experience of the successor Project Manager, and the succession Project Manager shall continue to perform the duties stipulated
in Section 3.2.1. The Contractor may not change the Project Manager without the written consent of the Employer. If the Contractor
replaces the Project Manager without authorization, he shall be liable for breach of contract in accordance with the terms of the
special contract.

 

    	 	23	 

     

    

 

3.2.4
The Employer has the right to notify the Contractor in writing to replace the Project Manager whom he considers to be incompetent.
The notice should state the reasons for the replacement. The Contractor shall submit a written improvement report to the Employer
within 14 days of receiving the notification of the replacement. If the Employer still requests replacement after receiving the
improvement report, the Contractor shall replace it within 28 days after receiving the second replacement notice, and notify the
Employer in writing of the newly appointed Project Manager's registration qualification and management experience. The successor
Project Manager continues to perform the duties stipulated in Section 3.2.1. If the Contractor refuses to replace the Project Manager
without justified reasons, it shall be liable for breach of contract in accordance with the terms of the special contract.

 

3.2.5
If the Project Manager authorizes his subordinates to perform one of their job duties due to special circumstances, the subordinate
personnel shall have the ability to perform the corresponding duties, and shall notify the Supervisor in writing of the name and
scope of the above-mentioned personnel 7 days in advance, and the written consent of the Employer is obtained.

 

3.3 Contractor
personnel

 

3.3.1
Unless otherwise stipulated in the special contract terms, the Contractor shall submit to the Supervisor the report arranged by
the Contractor's project management agency and the construction site personnel within 7 days after receiving the notice of commencement
of work, the contents of which shall include contract management, construction, list of major construction management personnel
such as technology, materials, quality, safety, finance, etc., their positions, registration qualifications, and the arrangement
of technical workers in each type of work, and submit the labor relationship certificate between the main construction management
personnel and the Contractor as well as a valid proof of payment of social insurance.

 

3.3.2
The main construction management personnel assigned by the Contractor to the construction site shall be relatively stable. If there
is any change in the construction process, the Contractor shall promptly submit to the Supervisor the report on the changes of
the construction site personnel. When the Contractor replaces the main construction management personnel, he shall notify the Supervisor
in writing 7 days in advance and obtain the written consent of the Employer. The notice shall include information on the qualifications
and management experience of the successor.

 

Special
types of workers should hold corresponding qualification certificates, and the Supervisor can check them at any time.

 

3.3.3 If the
Employer disagrees with the qualifications or capabilities of the Contractor's main construction management personnel, the Contractor
shall provide information to prove that the challenged person has the ability to complete his or her job or that there is no such
situation as the issuer has questioned. If the Employer requests to replace the main construction management personnel who cannot
perform their duties and obligations in accordance with the contract, the Contractor shall replace them. If the Contractor refuses
to replace without justified reasons, it shall be liable for breach of contract in accordance with the terms of the special contract.

 

    	 	24	 

     

    

 

3.3.4
Unless otherwise stipulated in the special contract terms, if the main construction management personnel of the Contractor leave
the construction site for no more than 5 days per month, they shall report to the Supervisor for approval; if they leave the construction
site for more than 5 days per month, they shall report to the Supervisor, and obtain the written consent of the Employer. The main
construction management personnel shall designate an experienced person to temporarily perform their duties before leaving the
construction site. The personnel shall have the qualifications and ability to perform the corresponding duties, and shall obtain
the consent of the Supervisor or the Employer.

 

3.3.5
If the Contractor replaces the main construction management personnel without authorization, or if the aforementioned personnel
leave the construction site without the consent of the Supervisor or the Employer, they shall be liable for breach of contract
in accordance with the terms of the special contract.

 

3.4 Contractor
on-site inspection

 

The
Contractor shall be responsible for the interpretation and inference based on the basic information submitted by the Employer in
accordance with Section 2.4.3 Provision of basic information, but the Contractor shall explain or infer the inaccuracy due to errors
or omissions in the underlying information and shall take the responsibility.

 

The
Contractor shall conduct a survey of the construction site and construction conditions, and fully understand the meteorological
conditions, traffic conditions, customs and other materials related to the completion of the contract work. The Contractor shall
bear the resulting increase in costs and/or delays due to the failure of the Contractor to fully investigate, understand the foregoing
or fail to fully estimate the consequences of the foregoing.

 

3.5 Subcontracting

 

3.5.1
General contract for subcontracting

 

The
Contractor shall not subcontract all the projects it has contracted to a third party, or dismember all the projects it has contracted
and subcontract it to a third party in the name of subcontracting. The Contractor shall not subcontract the professional project
that prohibits subcontracting in the main structure of the project, key work and special contract clauses to the third party. The
scope of the main structure and key work shall be clearly defined by the parties to the contract in accordance with the provisions
of the law.

 

The Contractor
shall not subcontract or illegally subcontract the project in the name of subcontracting of labor services.

 

    	 	25	 

     

    

 

3.5.2 Determination
of subcontracting

 

The
Contractor shall subcontract according to the terms of the special contract and determine the subcontractor. For a professional
project that has been priced in a bill of quantities or a provisional estimate in a budget book, the subcontractor is determined
in accordance with Section 10.7 Provisional Valuation. If subcontracting is carried out in accordance with the contract, the Contractor
shall ensure that the subcontractor has the corresponding qualifications and capabilities. The subcontracting of the project does
not relieve or exempt the Contractor from the responsibilities and obligations, and the Contractor and the subcontractor shall
be jointly and severally liable to the Contractor for the subcontracting project. Unless otherwise agreed in the contract, the
Contractor shall submit a copy of the subcontract to the Contractor and the Supervisor within 7 days after the signing of the subcontract.

 

3.5.3 Subcontract
management

 

The
Contractor shall submit to the Supervisor the main construction management personnel table of the subcontractor and carry out real-name
management of the subcontractor's construction personnel, including but not limited to entry and exit management, registration
and registration, and various licenses.

 

3.5.4 Subcontract
price

 

(1)
Except as otherwise stipulated in the item (2) of this section or the terms of the special contract, the price of the subcontract
shall be settled by the Contractor and the subcontractor. Without the consent of the Contractor, the Contractor shall not pay the
subcontractor. Subcontracted project price;

 

(2) If the
legal instrument in force requires the Employer to pay the subcontractor the price of the subcontract, the Employer shall have
the right to deduct the amount from the Contractor's work payment.

 

3.5.5
Transfer of Subcontracting Equity

 

If the subcontractor's
obligations under the subcontract continue until the expiration of the defect liability period, the Contractor has the right to
request the Contractor to transfer the equity under the subcontract to the Contractor before the expiration of the defect liability
period. The Contractor should be transferred. Unless otherwise agreed in the transfer contract, after the transfer contract takes
effect, the subcontractor shall perform the obligation to the Contractor.

 

3.6
Engineering care and finished product, semi-finished product protection

 

(1)
Except as otherwise stipulated in the special contract terms, the Contractor shall be responsible for the care of the engineering
and engineering related materials and engineering equipment from the date of the transfer of the Employer to the Contractor until
the date of issuance of the project acceptance certificate.

 

(2)
During the period when the Contractor is in charge of it, if the damage of the engineering, materials and engineering equipment
are caused by the Contractor, the Contractor shall be responsible for repairing or replacing them, and shall bear the increased
expenses and/or delays.

 

(3)
The Contractor shall be responsible for the protection of the finished product and semi-finished product completed in the contract
within the contract before the project acceptance certificate is issued. If the finished product or semi-finished product is damaged
due to the Contractor's reasons, the Contractor shall be responsible for repairing or replacing it, and shall bear the increased
cost and/or delay of the construction period.

 

    	 	26	 

     

    

 

3.7 Performance
guarantee

 

Where
the Employer needs the Contractor to provide performance guarantee, the parties to the contract shall stipulate the manner, amount
and duration of the performance guarantee in the terms of the special contract. The performance guarantee may be in the form of
a bank guarantee or a guarantee company guarantee, which is specifically stipulated by the parties to the contract in the terms
of the special contract.

 

If
the construction period is extended due to the Contractor's reasons, the additional costs of continuing to provide the performance
guarantee shall be borne by the Contractor; if the construction period is not extended due to the Contractor's reasons, the additional
costs of continuing to provide the performance guarantee shall be borne by the Employer.

 

3.8 Consortium

 

3.8.1
All parties to the consortium shall jointly sign a contractual agreement with the Employer. The parties to the consortium shall
be jointly and severally liable to the Employer for the performance of the contract.

 

3.8.2
The consortium agreement shall be attached to the contract after confirmation by the Contractor. In the process of performing the
contract, the consortium agreement may not be modified without the consent of the Employer.

 

3.8.3
The consortium leader is responsible for contacting the Employer and the Supervisor and accepting instructions to organize the
members of the consortium to fully perform the contract.

 

4. Supervisor

 

4.1
General provisions of the Supervisor

 

If
the project is supervised, the Employer and the Contractor shall specify the supervision content and supervision authority of the
Supervisor in the terms of the special contract. The Supervisor shall, on the basis of the licensee's authorization and legal provisions,
on behalf of the Employer to inspect, inspect, audit, and accept the relevant matters related to the construction, and issue relevant
instructions, but the Supervisor has no right to modify the contract and has no right to reduce or exempt any responsibility and
obligation of the Contractor.

 

Except
as otherwise stipulated in the special contract terms, the Supervisor's office space and living place at the construction site
shall be provided by the Contractor, and the expenses incurred shall be borne by the Employer.

 

    	 	27	 

     

    

 

4.2 Supervisors

 

The
right of the Employer to grant the Supervisor the supervision of the project shall be exercised by the Supervisors at the construction
site, and the Supervisors shall include the Chief Engineer and the Supervisor engineer. The Supervisor shall notify the Contractor
in writing of the name and scope of authorization of the authorized Supervising Engineer and Supervising Engineer. If the Supervisor
Engineer is replaced, the Supervisor shall notify the Contractor in writing 7 days in advance; if the other Supervisors are replaced,
the Supervisor shall notify the Contractor in writing 48 hours in advance.

 

4.3 Supervisor's
instructions

 

The
Supervisor shall issue a supervision instruction in accordance with the authorization of the Employer. The Supervisor's instructions
shall be in writing and signed by the authorized supervisor. In an emergency, in order to ensure the safety of the construction
personnel or to avoid damage to the construction, the Supervisor can issue an instruction in oral form, which has the same legal
effect as the written instructions, but must be reissued within 24 hours after the export instructions are issued, and the written
supervision instructions for replacement should be consistent with the verbal instructions.

 

The instructions
issued by the Supervisor shall be sent to the Contractor's Project Manager or to the person authorized by the Project Manager.
The Contractor shall bear the corresponding responsibility for failure of the Supervisor to issue instructions, delays, or misstatement
as a result of the contract, resulting in an increase in the Contractor’s expenses and/or delays in the construction period.
Except as otherwise provided in the terms of the special contract, the Chief Engineer shall not delegate or delegate to the other
supervisors the powers specified in Section 4.4 Agreed or confirmed by the Chief Engineer.

 

If
the Contractor has doubts about the instructions issued by the Supervisor, the Supervisor shall file a written objection with the
Supervisor. The Supervisor shall confirm, change or revoke the instruction within 48 hours. If the Supervisor fails to reply within
the time limit, the Contractor has the right to refuse to execute the above instructions.

 

If
the Supervisor fails to make an opinion on any work, project or materials and engineering equipment used by the Contractor within
the agreed or reasonable time limit, it shall be deemed as approval, but the Contractor shall not be exempted or mitigated from
the responsibilities and obligations of equipment the work, engineering, materials, engineering and etc.

 

4.4 Agreed
or determined

 

When
the parties to the contract agree or determine, the Chief Engineer shall reach an agreement with the contracting parties through
negotiation as far as possible, and if no agreement can be reached, the Chief Engineer shall make a fair determination according
to the contract.

 

    	 	28	 

     

    

 

The
Chief Engineer shall notify the Employer and the Contractor in writing of the determination and provide a detailed basis. If the
parties to the contract have no objection to the determination of the Chief Engineer, they shall be executed in accordance with
the decision of the Chief Engineer. If any party to the contract has an objection, it shall be dealt with in accordance with Article
20 Dispute Resolution. Before the dispute is resolved, the parties to the contract shall temporarily perform the determination
according to the Chief Engineer of the contract; after the dispute is resolved, if the result of the dispute resolution is inconsistent
with the determination of the Chief Engineer, the result of the dispute resolution shall be implemented, and the losses caused
shall be borne by the responsible person.

 

5.
Engineering quality

 

5.1
Quality requirements

 

5.1.1
The engineering quality standard must meet the requirements of the current national standards and standards for engineering construction
quality acceptance. Special standards or requirements for the quality of the project are agreed upon by the parties to the contract
in the terms of the special contract.

 

5.1.2
If the quality of the project does not meet the contractual standards due to the Employer's reasons, the Employer shall bear the
increased costs and/or delays.

 

5.1.3
If the quality of the project does not meet the contractual standards due to the Contractor's reasons, the Employer has the right
to request the Contractor to rework until the quality of the project meets the contracted standards, and the Contractor shall bear
the resulting increase in costs and/or delays and the duration of the work.

 

5.2
Quality assurance measures

 

5.2.1
Quality management of the Contractor

 

The
Employer shall complete all work related to the quality of the project in accordance with the law and the contract.

 

5.2.2
Quality management of the Contractor

 

The
Contractor shall submit the project quality assurance system and measures documents to the Employer and the Supervisor according
to Section 7.1 Construction organization design, establish a sound quality inspection system, and submit the corresponding project
quality documents. The Contractor has the right to refuse the implementation of the wrong instructions of the Employer or the Supervisor
in violation of the law and the contract.

 

The
Contractor shall carry out quality education and technical training for the construction personnel, regularly assess the labor
skills of the construction personnel, and strictly implement the construction specifications and operating procedures.

 

The
Contractor shall, in accordance with the provisions of the law and the requirements of the Contractor, carry out quality inspection
and inspection of the whole process of the materials, engineering equipment and all parts of the project and its construction process,
and make detailed records, prepare the project quality report, and submit it to the Supervisor for review. In addition, the Contractor
shall, in accordance with the law and the requirements of the Employer, conduct on-site sampling and testing, engineering review
and equipment performance testing, provide test samples, submit test reports and measurement results, and other work.

 

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5.2.3
Quality inspection and inspection of the Supervisor

 

The
Supervisor shall inspect and inspect all parts of the project and its construction techniques, materials and engineering equipment
in accordance with the law and the licensee's authorization. The Contractor shall provide convenience for the inspection and inspection
of the Supervisor, including the Supervisor to the construction site, or the manufacturing, processing location, or other places
agreed upon in the contract to inspect and inspect the original construction records. The inspection and inspection carried out
by the Supervisor for this purpose shall not relieve or reduce the liability of the Contractor in accordance with the contract.

 

The
inspection and inspection of the Supervisor shall not affect the normal construction. If the inspection and inspection of the Supervisor
affects the normal operation of the construction, and the inspection fails, the cost of the normal construction shall be borne
by the Contractor, and the construction period shall not be postponed; if the inspection and inspection pass, the increased cost
and/or the delay of the construction period is borne by the Employer.

 

5.3 Covert
engineering inspection

 

5.3.1
Contractor self-test

 

The
Contractor shall conduct a self-inspection on the hidden parts of the project and confirm whether it has coverage conditions through
self-inspection.

 

5.3.2
Inspection procedures

 

Unless
otherwise stipulated in the special contract terms, if the concealed part of the project is self-inspected and confirmed to have
coverage conditions, the Contractor shall notify the Supervisor in writing 48 hours before the joint inspection. The notice shall
state the content, time and content of the covert inspection. The location should be accompanied by a self-test record and necessary
inspection information.

 

The Supervisor
shall be present on time and inspect the concealed works and their construction techniques, materials and engineering equipment.
After the Supervisor has checked that the quality meets the hidden requirements and signs the acceptance record, the Contractor
can cover it. If the quality of the Supervisor fails to pass the inspection, the Contractor shall complete the repair within the
time indicated by the Supervisor and be re-examined by the Supervisor. The increased costs and/or delays shall be borne by the
Contractor.

 

Except as otherwise stipulated
in the special contract clause, if the Supervisor cannot conduct the inspection on time, the written extension request shall be
submitted to the Contractor 24 hours before the inspection, but the extension shall not exceed 48 hours. As a result of the delay
of the construction period, the construction period shall be postponed. If the Supervisor fails to inspect the inspection on time
and fails to request the extension, it shall be deemed to be qualified for the concealed project. The Contractor may complete the
coverage work and submit the corresponding records to the Supervisor. The Supervisor shall sign and confirm. If the Supervisor
has doubts about the inspection record afterwards, it may re-examine it in accordance with the provisions of Section 5.3.3 Rechecking.

 

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5.3.3 Rechecking

 

After
the Contractor covers the hidden part of the project, if the Contractor or supervisor has doubts about the quality, the Contractor
may be required to drill or uncover the covered part, and the Contractor shall follow the implementation and re-cover after the
inspection. Restore. If it is verified that the quality of the project meets the requirements of the contract, the Contractor shall
bear the increased costs and/or delays of the construction period and pay the Contractor a reasonable profit; if the quality of
the project is not in conformity with the contract requirements, the increase of the cost and/or delay of the construction period
shall be borne by the Contractor.

 

5.3.4
Contractor private coverage

 

If
the Contractor fails to notify the Supervisor to attend the inspection and privately cover the hidden part of the project, the
Supervisor has the right to instruct the Contractor to drill or uncover the inspection, regardless of whether the quality of the
hidden part of the project is qualified, thereby increasing the cost and/or delay. The construction period is borne by the Contractor.

 

5.4 Disposal
of unqualified projects

 

5.4.1
If the project is unqualified due to the Contractor's reasons, the Employer has the right to request the Contractor to take remedial
measures at any time until the quality standard required by the contract is met, and the increased cost and/or delay of the construction
period shall be borne by the Contractor. If it cannot be remedied, it shall be implemented in accordance with the provisions of
Section 13.2.4 Rejecting all or part of the project.

 

5.4.2
If the project is unqualified due to the Employer's reasons, the increased cost and/or delay of the construction period shall be
borne by the Employer.

 

5.5
Quality dispute detection

 

Where
the parties to the contract dispute the quality of the project, the project quality inspection agency determined by the two parties
shall determine the costs and the resulting losses, and the responsible party shall bear the responsibility. If the parties to
the contract have responsibilities, the parties shall bear the responsibilities according to their respective responsibilities.
If the parties to the contract are unable to reach an agreement, they shall be executed in accordance with Section 4.4 Agreed or
determined.

 

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6.
Safe and civilized construction and environmental protection

 

6.1
Safe and civilized construction

 

6.1.1
Safety production requirements

 

During
the performance of the contract, the parties to the contract shall abide by the requirements for safety production in the country
and the location of the project. If the parties to the contract have special requirements, the objectives and corresponding items
of the safety production standardization of the construction project shall be specified in the terms of the special contract. The
Contractor has the right to refuse any instructions from the Employer or the Supervisor to force the Contractor to operate illegally
and risk construction.

 

During the
construction process, if there is sudden geological changes, unforeseen underground construction obstacles and other emergencies
affecting construction safety, the Contractor shall promptly report to the Supervisor and the Employer, and the Employer shall
promptly order the suspension and report to the relevant the government that the relevant management department takes emergency
measures.

 

If
it is necessary to suspend construction due to safe production, it shall be implemented in accordance with the provisions of Section
7.8 Suspension of construction.

 

6.1.2 Safety
production assurance measures

 

The
Contractor shall prepare safety technical measures or special construction plans in accordance with relevant regulations, establish
a safety production responsibility system, a public security system and a safety production education and training system, perform
safety duties in accordance with the safety production laws and contractual provisions, truthfully prepare relevant records of
the project safety production, and shall be examined and supervised by the Employer, the Supervisor and the government safety supervision
department.

 

6.1.3
Special safety production matters

 

The
Contractor shall carry out the construction in accordance with the law, do a good job in safety technology before the start of
construction, and do all the safety protection measures during the construction process. Personnel of special types of work employed
by the Contractor for the implementation of the contract shall be specially trained and have obtained the certificate of employment
issued by the relevant government regulatory agency.

 

When
the Contractor constructs near power equipment, transmission lines, underground pipelines, sealed earthquake-proof workshops, inflammable
and explosive areas, and traffic-oriented roads, the Contractor shall propose safety protection measures to the Employer and the
Supervisor before the start of construction and implement the measures after the approval of the Employer.

 

When
carrying out blasting operations, in the construction of radiation and toxic environments (including storage, transportation, use)
and the use of toxic and corrosive materials, the Contractor shall notify the Employer and the Supervisor in writing 7 days before
the construction and report the corresponding safety protection measures to them, and implement them after approval by the Employer.

 

The
Contractor shall prepare and organize the demonstration in a timely manner if it is necessary to separately prepare a special project
construction plan with a higher risk and a part of the project that requires more expert scale than a certain scale.

 

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6.1.4
Security and security

 

Unless
otherwise stipulated in the special contract terms, the Employer shall consulate with the local public security department, establish
a public security management organization or a joint defense organization on the site, uniformly manage the security and security
matters of the construction site, and perform the public security duties of the contract project.

 

In
addition to assisting the on-site public security management agency or the joint defense organization to maintain the social security
of the construction site, the Employer and the Contractor shall also perform security and security work in their respective jurisdictions,
including the living quarters.

 

Unless
otherwise stipulated in the special contract terms, the Employer and the Contractor shall jointly prepare the construction site
public security management plan within 7 days after the commencement of the project, and formulate an emergency plan for responding
to the sudden public security incident. In the course of construction, horrific incidents such as riots and explosions, as well
as mass casualties such as mass robbery and fighting, the Employer and the Contractor shall immediately report to the local government.
The Employer and the Contractor shall actively assist the local authorities to take measures to calm the situation, prevent the
situation from expanding, and try to avoid casualties and property losses.

 

6.1.5
Civilized construction

 

During
the construction of the project, the Contractor shall take measures to keep the construction site level and the materials piled
up neatly. Where the relevant administrative department of the government where the project is located has special requirements,
it shall be implemented in accordance with its requirements. Where the parties to the contract have other requirements for civilized
construction, they may be specified in the terms of the special contract.

 

Before
the project is handed over, the Contractor shall remove all the Contractor's engineering equipment, surplus materials, garbage
and various temporary works from the construction site, and keep the construction site clean and tidy. With the written consent
of the Employer, the Contractor may retain the materials, construction equipment and temporary works required by the Employer to
perform the obligations during the warranty period at the place designated by the Employer.

 

6.1.6 Safe
and civilized construction fee

 

The
safe and civilized construction fee shall be borne by the Employer, and the Employer shall not deduct the part of the fee in any
form. Due to changes in the laws applicable to the contract or the relevant government regulations after the base date, the increased
safety and civilized construction costs shall be borne by the Employer.

 

The
Contractor shall bear the costs incurred by the Employer in agreeing to take security measures other than those agreed in the contract.
Without the consent of the Employer, if the measure avoids the loss of the Employer, the Employer shall bear the cost of the measure
within the amount to avoid the loss. If the measure avoids the loss of the Contractor, the Contractor shall bear the cost of the
measure.

 

    	 	33	 

     

    

 

Except
as otherwise stipulated in the special contract terms, the Employer shall prepay 50% of the total safe and civilized construction
fee within 28 days after the start of construction, and the rest shall be paid in the same period as the progress payment. If the
Employer pays the safe and civilized construction fee overdue for more than 7 days, the Contractor has the right to issue a notice
of reminder to the Employer for the advance payment. If the Employer has not paid within 7 days after receiving the notice, the
Contractor has the right to suspend the construction and execute it in accordance with the Section 16.1.1 Case of default by the
Employer.

 

The
Contractor shall pay special funds for safe and civilized construction fees. The Contractor shall separately list the items in
the financial accounts for future use. Otherwise, the Employer shall have the right to order them to make corrections within a
time limit. If the overdue period has not been corrected, the Contractor may be ordered to suspend the construction. The resulting
increase in costs and/or delays is borne by the Contractor.

 

6.1.7 Emergency
handling

 

In
the event of a project that jeopardizes the safety of the project during the implementation of the project or during the period
of the defect liability, the Supervisor informs the Contractor to perform the rescue. If the Contractor declares that it is incapable
or unwilling to execute it immediately, the Contractor has the right to hire other personnel for the rescue. Such rescue shall
be borne by the Contractor as stipulated in the contract, and the increased expenses and/or delays shall be borne by the Contractor.

 

6.1.8 Accident
handling

 

If
an accident occurs during the construction of the project, the Contractor shall immediately notify the Supervisor and the Supervisor
shall immediately notify the Contractor. The Employer and the Contractor shall immediately organize personnel and equipment for
emergency rescue and repair, reduce casualties and property losses, prevent accidents from expanding, and protect the scene of
the accident. When moving on-site items is required, markings and written records should be made to keep the relevant evidence
in a safe place. The Employer and the Contractor shall report the accidents and the emergency measures being taken to the relevant
departments in a timely and truthful manner in accordance with relevant state regulations.

 

6.1.9 Safety
Production Responsibility

 

6.1.9.1
Security responsibility of the Employer

 

The
Employer shall be responsible for compensating for the losses caused by the following circumstances:

 

(1)
Third party property damage caused by the occupation of land by any part of the works or works;

 

(2)
Third-person personal injury and property damage caused by the Employer at the construction site and its adjacent areas;

 

    	 	34	 

     

    

 

(3)
Personal injury or death and property damage caused to the Contractor and the Supervisor due to the Employer’s reasons;

 

(4)
Personal injury and property damage of the Employer’s own personnel due to the Employer’s reasons.

 

6.1.9.2
Contractor’s safety responsibility

 

The
Contractor shall be liable for compensation for the casualties and property losses of the Employer, the Supervisor and the third
party caused by the Contractor in the construction site and its adjacent areas.

 

6.2 Occupational
health

 

6.2.1
Labor protection

 

The
Contractor shall arrange the labor and rest time of the on-site construction personnel in accordance with the law, guarantee the
rest time of the laborers, and pay reasonable remuneration and expenses. The Contractor shall, in accordance with the law, handle
the necessary documents, permits, insurance and registration for the personnel employed in the performance of the contract. The
Contractor shall urge the subcontractor to handle the necessary documents, permits, insurance and registration for the personnel
employed by the subcontractor.

 

The
Contractor shall ensure the safety of the construction workers on site and provide labor protection in accordance with the law,
and shall take effective measures to prevent dust, reduce noise, and control harmful gases and other labor protection measures
to ensure high temperature, high cold and high altitude work safety in accordance with the relevant national labor protection regulations.
If the Contractor’s hiring personnel is injured during construction, the Contractor shall immediately take effective measures
for rescue and treatment.

 

The
Contractor shall arrange working hours as required by law to ensure that its employees have the right to rest and vacation. If
the special needs of the construction work take up a holiday or extend the working time, it shall not exceed the limits stipulated
by the law, and shall be compensated according to the law.

 

6.2.2 Living
conditions

 

The
Contractor shall provide the necessary accommodation and living environment for the personnel employed in the performance of the
contract; the Contractor shall take effective measures to prevent infectious diseases, ensure the health of the construction personnel,
and regularly carry out the professional inspection and treatment of epidemic prevention and sanitation in the construction site,
the construction personnel living base and the project. If the construction sites are far from the town, medical staff and medical
facilities necessary for prevention and treatment of injuries and emergency services should also be provided.

 

    	 	35	 

     

    

 

6.3 Environmental
protection

 

The
Contractor shall specify the specific measures for environmental protection in the design of the construction organization. During
the performance of the contract, the Contractor shall take reasonable measures to protect the construction site environment, take
concrete and feasible precautions against atmospheric, water, noise and solid waste pollution that may occur during construction
operations.

 

The
Contractor shall bear the liability for compensation for environmental pollution infringement caused by its cause, and if the construction
is suspended due to the dispute caused by the above environmental pollution, and the increased cost and/or delay of the construction
period shall be borne by the Contractor.

 

7. Duration
and schedule

 

7.1 Construction organization
design

 

7.1.1 Content of construction
organization design

 

The construction organization
design should include the following:

 

(1) Construction
plan;

 

(2)
Floor plan of the construction site;

 

(3)
Construction schedule and guarantee measures;

 

(4)
Labor and material supply plans;

 

(5)
Selection of construction machinery and equipment;

 

(6)
Quality assurance systems and measures;

 

(7)
Safe production and civilized construction measures;

 

(8)
Environmental protection and cost control measures;

 

(9)
Other content agreed by the parties to the contract.

 

7.1.2 Submission
and modification of construction organization design

 

Except
as otherwise stipulated in the special contract terms, the Contractor shall submit the detailed construction organization design
to the Supervisor within 14 days after the signing of the contract, but not later than 7 days before the commencement date specified
in Section 7.3.2 [Notice of commencement of work], and the Supervisor shall then submit the construction organization design to
the Employer. Unless otherwise stipulated in the special contract terms, the Employer and the Supervisor shall confirm or propose
amendments within 7 days after the Supervisor receives the construction organization design. The Contractor shall modify and improve
the reasonable opinions and requirements put forward by the Contractor and the Supervisor and shall bear the fees thus incurred.
If the construction organization design needs to be modified according to the actual conditions of the project, the Contractor
shall submit the revised construction organization design to the Employer and the Supervisor.

 

    	 	36	 

     

    

 

The
preparation and modification of the construction schedule shall be carried out in accordance with Section 7.2 Construction schedule.

 

7.2
Construction schedule

 

7.2.1
Preparation of construction schedule

 

The
Contractor shall submit a detailed construction schedule according to the provisions of Section 7.1 Construction organization design.
The preparation of the construction schedule shall comply with the national laws and general engineering practice practices, and
the construction schedule shall be implemented after approval by the Employer. The construction schedule is the basis for controlling
the progress of the project. The Employer and the Supervisor have the right to check the progress of the project according to the
construction schedule.

 

7.2.2
Revision of the construction schedule

 

If
the construction schedule does not meet the contract requirements or is inconsistent with the actual progress of the project, the
Contractor shall submit the revised construction schedule to the Supervisor, with relevant measures and relevant materials that
shall be submitted by the Supervisor to the Employer. Unless otherwise agreed in the terms of the special contract, the Employer
and the Supervisor shall complete the review and approval or propose amendments within 7 days after receiving the revised construction
schedule. The confirmation of the construction schedule submitted by the Contractor and the Supervisor shall not alleviate or waive
any responsibility or obligation of the Contractor in accordance with the law and the contract.

 

7.3 Commencement of work

 

7.3.1 Preparation for commencement of work

 

Unless otherwise stipulated in the special contract terms, the contractor
shall submit the project start-up report form to the Supervisor in accordance with the time limit stipulated in Section 7.1 [Construction
Organization Design], and shall be executed after the Supervisor has submitted the approval of the Employer. The commencement of
the application form shall specify the implementation of the construction roads, temporary facilities, materials, engineering equipment,
construction equipment, construction personnel, etc. required for the normal construction according to the construction schedule
and the schedule of the project.

 

Except as otherwise stipulated in the special contract terms, the
parties to the contract shall complete the preparatory work as required.

 

7.3.2 Notice of commencement of work

 

The Employer shall obtain the permission required for the construction
of the project in accordance with the law. After the consent of the Employer, the notice of commencement of work issued by the
Supervisor shall comply with the law. The Supervisor shall issue a notice of commencement to the Contractor 7 days before the planned
start date, and the construction period shall start from the date of commencement as specified in the notice of commencement of
work.

 

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Except as otherwise stipulated in the special contract terms, if
the Supervisor fails to issue the notice of commencement of work within 90 days from the date of the commencement of the project
for any reason caused for the Employer, the Contractor has the right to request the price adjustment or terminate the contract.
The Employer shall bear the resulting increase in costs and/or delays in the duration of the work.

 

7.4 Measuring and Setting-out

 

7.4.1 Unless otherwise agreed in the terms of the special contract,
the Employer shall not later than 7 days before the commencement date specified in Section 7.3.2 [Notice of commencement of work]
provides the Contractor through the Supervisor with the measurement reference points, baselines and benchmarks and their written
information. The Employer shall be responsible for the authenticity, accuracy and completeness of the measurement reference points,
baselines and benchmarks and their written information provided.

 

If the Contractor finds that there are errors or omissions in the
measurement reference points, baselines and benchmarks provided by the Employer and its written materials, the Supervisor shall
be notified in a timely manner. The Supervisor shall promptly report to the contractor and verify it with the Employer and the
Contractor. The Employer shall make a decision on how to proceed and whether to continue the construction, and notify the Supervisor
and the Contractor.

 

7.4.2 The Contractor is responsible for all construction surveying
and setting-out work during the construction process, and shall be equipped with qualified personnel, qualified instruments, equipment
and other items. The Contractor shall correct any errors in the location, elevation, size or alignment of the Works and shall be
responsible for the positioning of the various parts of the Works.

 

The contractor is responsible for the protection of the measuring
marks such as the benchmarks in the construction site during the construction process.

 

7.5 Delay in construction period

 

7.5.1 Delay in construction due to the Employer

 

In the course of the performance of the contract, if the construction
period is delayed and/or the cost increases due to the following circumstances, the Employer shall bear the delay and/or the increased
cost:

 

(1) The Employer fails to provide the drawings as specified in the
contract or the drawings provided do not conform to the contract;

 

(2) The Employer fails to provide the construction site, construction
conditions, basic materials, permits, approvals, etc. as specified in the contract;

 

(3) There are errors or omissions in the measurement reference points,
baselines and benchmarks and their written information provided by the Employer;

 

(4) The Employer fails to approve the issuance of the notice of
commencement of work within 7 days from the date of commencement of the plan;

 

    	 	38	 

     

    

 

(5) The Employer fails to pay the project advance payment, progress
payment or completion settlement according to the contracted date;

 

(6) The Supervisor has not issued the instructions, approval and
other documents as agreed in the contract;

 

(7) Other circumstances as agreed in the terms of the special contract.

 

If the Employer fails to start work according to the planned start
date, the contractor shall postpone the completion date according to the actual commencement date to ensure that the actual construction
period is not less than the total calendar days of the contracted construction period. If the construction period is delayed due
to the delay of the Employer, the construction schedule shall be revised per Section 7.2.2 [Revision of construction schedule].

 

7.5.2 Delay in construction due to the Contractor

 

If the construction period is delayed due to the Contractor, the
calculation method of overdue liquidated damages and the upper limit of overdue liquidated damages may be stipulated in the special
contract terms. After the Contractor pays the overdue liquidated damages, the Contractor shall not be excused from the obligation
to continue to complete the project and repair the defects.

 

7.6 Unfavorable material conditions

 

Unfavorable material conditions refer to unforeseen natural material
conditions, unnatural physical obstacles and pollutants encountered by experienced contractors at the construction site, including
subsurface conditions and hydrological conditions, and other conditions as stipulated in the special contract terms, but Does not
include climatic conditions.

 

When the Contractor encounters unfavorable material conditions,
it shall take reasonable measures to overcome the unfavorable material conditions to continue construction and notify the Employer
and the Supervisor in a timely manner. The notice shall state the content of the unfavorable material conditions and the reasons
the Contractor considers them as unforeseeable. After the Supervisor has given the consent of the Employer, if the Supervisor shall
promptly issue instructions indicating that the change is constituted, provisions of Article 10 [Change] should be executed. The
Contractor’s increased costs and/or delays due to reasonable measures should be borne by the Employer.

 

7.7 Unusually harsh climatic conditions

 

Unusually harsh climatic conditions refer to the severe weather
conditions encountered by experienced contractors during the construction process that are unforeseeable at the time of signing
the contract and have a material impact on the performance of the contract, but have not yet constituted a force majeure event.
The parties to the contract may stipulate the specific circumstances of the unusually harsh climatic conditions in the terms of
the special contract.

 

    	 	39	 

     

    

 

The Contractor shall continue to construct with reasonable measures
to overcome the unusually harsh climatic conditions and notify the Employer and the Supervisor in a timely manner. The Supervisor
shall promptly issue instructions after the consent of the Employer, and if the instructions constitute a change, it shall be handled
in accordance with Article 10 [Change]. The contractor’s increased costs and/or delays due to reasonable measures are borne
by the Employer.

 

7.8 Suspension of construction

 

7.8.1 Suspension of construction caused by the Employer

 

If the construction is suspended due to the reason of the Employer,
the Supervisor shall issue a suspension of construction instructions in time after the consent of the Employer. If the situation
is urgent and the Supervisor fails to issue the construction instructions in a timely manner, it shall be carried out in accordance
with Section 7.8.4 [Suspension of construction in an emergency].

 

The suspension of construction caused by the Employer, the Employer
shall bear the resulting increase in costs and/or delays in the construction period.

 

7.8.2 Suspension of construction caused by the Contractor

 

If the Contractor suspends the construction due to the Contractor,
the Contractor shall bear the increased costs and/or delays, and the Contractor don’t continue the construction within 84
days of receiving the Supervisor’s instructions for return to work, it shall be regarded as the case in item (7) of Section
16.2.1 [Contractor's breach of contract] where the Contractor can’t continue to perform the contract.

 

7.8.3 Instruct to suspend construction

 

When the Supervisor considers it necessary, and after approval by
the Employer, the Supervisor may make an instruction to suspend the construction to the Contractor, and the Contractor shall suspend
the construction as directed by the Supervisor.

 

7.8.4 Suspension of construction in an emergency

 

If the construction needs to be suspended due to an emergency, and
the Supervisor fails to issue the suspension instructions in a timely manner, the Contractor may suspend the construction and notify
the Supervisor in a timely manner. Supervisor should give instructions within 24 hours, and if no instructions are given within
the time limit, which is deemed to agree to the Contractor's suspension of construction. If the supervisor disagrees with the Contractor's
suspension of construction, the reasons shall be explained. If the Contractor has objections to the supervisor's reply and it shall
be dealt with in accordance with Article 20 [Dispute Resolution].

 

7.8.5 Resume after suspension of construction

 

After the suspension of construction, the Employer and the Contractor
shall take effective measures to actively eliminate the impact of the suspension of construction. Before the construction resumes,
the supervisor will work with the Employer and the Contractor to determine the losses caused by the suspension of construction
and determine the conditions for the resumption of work. When conditions are suitable for resuming work, the Supervisor shall,
after approval by the Employer, issue a notice of resumption of work to the Contractor, and the contractor shall return to work
in accordance with the notice.

 

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If the Contractor delays and refuses to return to work without any
reason, the contractor shall bear the costs and (or) the delay of the construction period, and shall be liable for breach of contract;
if the Contractor fails to return to work on time due to the reason of the Employer, it shall be handled in accordance with the
provisions of Section 7.5.1 [Delay in construction due to the reason of the Employer].

 

7.8.6 Suspension of construction lasting for more than 56 days

 

If the Supervisor did not issue a notice of resumption of work to
the Contractor within 56 days after the instructions of suspension of the construction, except the case specified in Section 7.8.2
[Suspension of construction caused by the Contractor] and Article 17 [Force majeure], the Contractor may submit a written notice
to the Employer requiring the Employer to permit some or all of the suspended construction to continue construction within 28 days
after receiving the written notice. If the Employer fails to approve the application within the time limit, the Contractor may
notify the Employer to treat the affected part of the Project as a cancelable work in accordance with item (2) of Section 10.1
[Scope of change].

 

Suspension of construction that lasting more than 84 days without
resumption of work, and does not fall under Section 7.8.2 [Suspension of construction caused by the Contractor], which affects
the whole project and implementation of the contract, the contractor has the right to request a price adjustment or to terminate
the contract. If the contract is terminated, it shall be implemented in accordance with Section 16.1.3 [Resume the contract due
to the contractor’s default].

 

7.8.7 Care of the project during suspension of construction

 

During the suspension of construction, the Contractor shall be responsible
for the proper care of the project and provide security, and the increased costs shall be borne by the responsible party.

 

7.8.8 Measures for suspension of construction

 

During the suspension of construction, both the Employer and the
Contractor shall take necessary measures to ensure the quality and safety of the project and prevent the loss expansion due to
suspension of construction.

 

7.9 Completion in advance

 

7.9.1 If the Employer requests the Contractor to complete the work
in advance, the Employer shall issue an advance completion instruction to the Contractor through the Supervisor, and the Contractor
shall submit an advance completion proposal to the Employer and the Supervisor. The advance completion proposal shall include the
implementation plan, shortened time, increased contract price and other content. If the Employer accepts the advance completion
proposal, the Supervisor shall consult with the Employer and the Contractor to take measures to speed up the progress of the project
and revise the construction schedule, and the additional costs shall be borne by the Employer. If the Contractor believes that
the advance completion instructions cannot be implemented, the Contractor shall submit a written objection to the Supervisor and
the Employer, and Supervisor and the Employer shall reply within 7 days after receiving the objection. Under no circumstances should
the Contractor compress a reasonable period of construction.

 

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7.9.2 If the Employer requests the contractor to complete the work
ahead of time, or the Contractor proposes that the advance completion of the work can bring benefits to the Employer, the contracting
party may stipulate the reward for advance completion in the special contract terms.

 

8. Materials and equipment

 

8.1 The Contractor supplies materials and engineering equipment

 

If the contractor supplies materials or engineering equipment by
itself, it shall specify the type, specification, model, quantity, unit price, quality grade and delivery of materials and engineering
equipment in the annex to the terms of the special contract terms in the “Contractor Supply Equipment List”.

 

The Contractor shall notify the Employer in written form of the
supply of materials and delivery of engineering equipment through the supervisor 30 days in advance. When the Contractor revise
the construction schedule according to the provisions of Section 7.2.2 [Revision of the Construction Progress Plan], it shall submit
the revised entry plan of the contractor's supply materials and engineering equipment.

 

8.2 Contractor procurement of materials and engineering equipment

 

If the contractor is responsible for purchasing materials and engineering
equipment, it shall purchase according to the design and relevant standards, and provide product qualification certificate and
factory certificate, and be responsible for the quality of materials and engineering equipment. If the contract stipulates the
materials and engineering equipment purchased by the Contractor, the Employer shall not designate the manufacturer or supplier.
If the Employer appoints the manufacturer or supplier in violation of this paragraph, the Contractor has the right to refuse and
the Employer shall bear the corresponding responsibility.

 

8.3 Receiving and rejecting materials and engineering equipment

 

8.3.1 The Employer shall provide materials and engineering equipment
according to the contents as stipulated in the “Employer Supply Equipment List”, and provide the Contractor with product
qualification certificate and factory certificate, and be responsible for its quality. The Employer shall notify the Contractor
and the Supervisor's the arrival time of the materials and engineering equipment in written form 24 hours in advance, and the Contractor
shall be responsible for the inventory, inspection and receipt of materials and engineering equipment.

 

If the specifications, quantity or quality of the materials and
engineering equipment provided by the Employer do not comply with the contract, or if the delivery date is delayed or the delivery
location is changed due to the Employer 's reasons, etc., it shall be dealt with in accordance with the provisions of Section 16.1
[Employer 's default] .

 

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8.3.2 The materials and engineering equipment are purchased by the
Contractor, it shall ensure that the quality of the products. The Contractor shall notify the Supervisor of the inspection 24 hours
before the arrival of the materials and engineering equipment. The Contractor shall, in the manufacture and production of permanent
equipment and materials, comply with the relevant quality standards, and submit samples of the materials and relevant materials
to the Supervisor, and shall obtain the Supervisor's consent before using the materials or engineering equipment.

 

When the materials and engineering equipment purchased by the Contractor
do not meet the requirements of the design or relevant standards, the Contractor shall transport the materials and engineering
equipment that do not meet the requirements of the design or relevant standards out of the construction site within a reasonable
period of time required by the Supervisor, and re-purchase the required materials and engineering equipment, and thus the increased
costs and/or delays of the construction period shall be borne by the Contractor.

 

8.4 Storage and use of materials and engineering equipment

 

8.4.1 The storage and use of the materials and engineering equipment
supplied by the Employer

 

The materials and engineering equipment supplied by the Employer
shall be properly kept by the Contractor after the inventory is counted, and the storage fee shall be borne by the Employer, but
except the priced work amount list or budget book has been listed or as otherwise provided in the terms of the special contract.
If the losses or damages are due to the Contractor's reasons, the Contractor shall be responsible for compensation; if the Supervisor
fails to notify the Contractor to check the inventory, the Contractor shall not be responsible for the custody of materials and
engineering equipment, and the contractor shall be responsible for the loss or the damage.

 

Before the materials and engineering equipment supplied by the Employer
are used, the Contractor shall be responsible for the inspection. The inspection cost shall be borne by the contractor, and the
unqualified shall not be used.

 

8.4.2 Storage and use of materials and engineering equipment from
the Contractor's procurement

 

The materials and engineering equipment purchased by the Contractor
shall be properly kept by the Contractor, and the storage costs shall be borne by the Contractor. Where the law stipulates that
materials and engineering equipment must be inspected or tested before use, the Contractor shall conduct inspection or test according
to the requirements of the Supervisor. The cost of the inspection or test shall be borne by the Contractor, and the unqualified
shall not be used.

 

If the Employer or the Supervisor finds that the Contractor uses
materials and engineering equipment that do not meet the requirements of the design or relevant standards, he has the right to
request the Contractor to repair, dismantle or repurchase, the contractor bears resulted increased costs and/or delays in the construction
period.

 

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8.5 Prohibition of the use of unqualified materials and engineering
equipment

 

8.5.1 The supervisor has the right to reject the unqualified materials
or engineering equipment provided by the Contractor and require the Contractor to replace it immediately. The Supervisor shall
conduct inspections after the replacement, and the increased costs and/or delays shall be borne by the Contractor.

 

8.5.2 If the Supervisor finds that the Contractor has used unqualified
materials and engineering equipment, and the Contractor shall immediately correct it according to the instructions of the supervisor
and prohibit the continued use of unqualified materials and engineering equipment in the project.

 

8.5.3 If the materials or engineering equipment provided by the
Employer does not meet the requirements of the contract, the Contractor has the right to refuse and may request the Employer to
replace it. If the Employer confirms that it needs to be replaced, the increased cost and/or delay of the construction period is
borne by the Employer.

 

8.6 Sample

 

8.6.1 Submission and storage of samples

 

For the materials or engineering equipment requiring the Contractor
to submit samples, the type, name, specification and quantity of the samples shall be stipulated in the terms of the special contract.
The sample submission procedure is as follows:

 

(1) The Contractor shall submit samples to the Supervisor 28 days
prior to the planned purchase. The samples submitted by the Contractor shall be from the actual place of production of the supplied
materials, and the specifications and quantities of the samples provided shall be sufficient to indicate the quality, type, color,
surface treatment, texture, error and other required characteristics of the materials or engineering equipment.

 

(2) Each time the Contractor submits the sample, it shall be accompanied
by a declaration form. The declaration form shall contain the relevant data and information of the submitted samples, and indicate
the drawing number corresponding to each sample, and reserve the Supervisor's approval opinion column. The Supervisor shall, within
7 days after receiving the sample submitted by the Contractor, reply to the Contractor for the approval of the sample signed by
the Employer.

 

(3) The samples approved by the Employer and the Supervisor shall
be sealed according to the agreed method, and the sealed samples shall be one of the standards for inspection of the relevant part
of the project. The contractor shall not use materials or engineering equipment that do not conform to the sample during the construction
process.

 

(4) The approval of the sample by the Employer and the Supervisor
is only to confirm the characteristics or use of the relevant materials or engineering equipment, and shall not be construed as
modifying or changing the contract, nor reducing or exempting the Contractor from any responsibility and obligation. If the sealed
sample is modified or changed by contract, the parties to the contract shall confirm it by written agreement.

 

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8.6.2 Storage of samples

 

Approved samples shall be sealed by the Supervisor at the site and
the Contractor shall provide appropriate and fixed locations for the preservation of the samples and maintain appropriate and good
storage environmental conditions.

 

8.7 Replacement of materials and engineering equipment

 

8.7.1 If alternative materials and engineering equipment are required
in the following cases, the Employer shall perform in accordance with the procedures stipulated in Section 8.7.2:

 

(1) The law that came into force after the base date prohibits use;

 

(2) The Employer requires the use of an alternative;

 

(3) Alternatives must be used for other reasons.

 

8.7.2 The Contractor shall notify the Supervisor in written form
28 days prior to the use of the substitute materials and engineering equipment, with the following documents:

 

(1) The name, quantity, specification, model, brand, performance,
price and other relevant information of the replaced materials and engineering equipment;

 

(2) The name, quantity, specification, model, brand, performance,
price and other relevant information of the substitute;

 

(3) The difference between the substitute and the substituted product
and the impact that the use of the substitute may have on the project;

 

(4) The price difference between the substitute and the substituted
product;

 

(5) Reasons for using the substitute;

 

(6) Other documents required by the Supervisor.

 

The Supervisor shall, within 14 days after receiving the notice,
issue a written instruction to the Contractor signed the Employer; if the Supervisor doesn’t issue a written instruction
within the time limit, it is deemed that the Employer and the Supervisor shall agree to Use alternatives.

 

8.7.3 If the Employer approves the use of alternative materials
and engineering equipment, the price of substitute materials and engineering equipment shall be determined according to the price
of the same item of the priced work amount list or the budget book; if there is no identical item, the price of the similar item
shall be determined; If there is no similar or the same item, the contract party shall determine the price according to the provisions
of Section 4.4 [Agreed or determined] in accordance with the principle of reasonable cost and profit composition.

 

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8.8 Construction equipment and temporary facilities

 

8.8.1 Construction equipment and temporary facilities provided by
the Contractor

 

The Contractor shall timely allocate construction equipment and
construct temporary facilities in accordance with the requirements of the contract schedule. The Contractor equipment entering
the construction site shall be inspected by the Supervisor before it can be put into use. If the Contractor replaces the Contractor's
equipment as stipulated in the contract, it shall report it to the Supervisor for approval.

 

Unless otherwise stipulated in the special contract terms, the Contractor
shall bear the expenses for the construction of temporary facilities. If temporary land occupation is required, the Contractor
shall handle the application procedures and bear the corresponding expenses.

 

8.8.2 Construction equipment and temporary facilities provided by
the Employer

 

The construction equipment or temporary facilities provided by the
Employer are specified in the terms of the special contract.

 

8.8.3 Require Contractors to add or replace construction equipment

 

When the construction equipment used by the Contractor fails to
meet the contract schedule and/or quality requirements, the Supervisor has the right to request the Contractor to increase or replace
the construction equipment, and the Contractor shall increase or replace it in time, increasing cost and/or delay of the construction
period caused thereby is borne by the contractor.

 

8.9 Material and equipment specific requirements

 

The materials, engineering equipment, construction equipment and
temporary facilities constructed at the construction site, including spare parts, installation tools and materials, which the Contractor
transports into the construction site, must be dedicated to the project. Without the approval of the Employer, the Contractor shall
not transport them out of the construction site or use them for other purposes; with the approval of the Employer, the Contractor
may withdraw the idle construction equipment and other items according to the construction schedule.

 

9. Test and inspection

 

9.1 Test equipment and test personnel

 

9.1.1 The Contractor shall conduct the on-site material test in
accordance with the contract or the Supervisor's instructions and provide the test site, test personnel, test equipment and other
necessary test conditions. The Supervisor may use the test site, test equipment and other test conditions provided by the Contractor
to conduct a material review test for the purpose of project quality inspection when necessary, and the contractor shall assist.

 

9.1.2 The Contractor shall provide the test equipment, sampling
device, test site and test conditions in accordance with the terms of the special contract, and submit the corresponding entry
plan to the Supervisor.

 

The test equipment configured by the Contractor shall comply with
the requirements of the corresponding test procedures and be tested by a qualified testing unit, and shall be jointly verified
by the Supervisor and the Contractor before the formal use of the test equipment.

 

    	 	46	 

     

    

 

9.1.3 The contractor shall submit to the supervisor the list of
test personnel and their positions, qualifications and other supporting documents. The test personnel must be able to carry out
the corresponding test, and the contractor shall be responsible for the correctness of the test procedures and test results of
the test personnel.

 

9.2 Sampling

 

The test is self-checking and the Contractor can sample it separately.
Where the test belongs to the spot inspection by the Supervisor, it may be sampled by the Supervisor or by the tester of the Contractor
under the supervision of the Supervisor.

 

9.3 Testing and inspection of materials, engineering equipment
and project

 

9.3.1 The contractor shall conduct tests and inspections of materials,
engineering equipment and engineering in accordance with the contract, and provide the necessary test data and original records
for the quality inspection of the above materials, engineering equipment and works to the Supervisor. Where the Supervisor and
the Contractor jointly conduct tests and inspections in accordance with the contract, the Contractor shall be responsible for providing
the necessary test materials and original records.

 

9.3.2 If the test is self-checking, the Contractor may conduct the
test separately. Where the test belongs to the nature of the spot inspection by the Supervisor, the Supervisor may conduct the
test separately or jointly with the Contractor. If the Contractor disagrees with the results of the test conducted by the Supervisor
alone, he may apply for re-joint test. If it is agreed to jointly conduct the test, if the Supervisor fails to participate in the
test as agreed, the Contractor may test it by himself and submit the test result to the Supervisor. The Supervisor shall acknowledge
the test result.

 

9.3.3 If the Supervisor has objections to the contractor's test
and inspection results, or if the Contractor is to re-test and inspect the reliability of the contractor's test and inspection
results, this may be jointly carried out by the Supervisor and the Contractor. If the results of the re-test and inspection prove
that the quality of the material, engineering equipment or project does not meet the contract requirements, the increased cost
and/or delay of the construction period shall be borne by the Contractor; If the re-test and inspection results prove that the
material, the engineering equipment and engineering meet the requirements of the contract, the increased cost and/or delay of the
construction period shall be borne by the Employer.

 

9.4 Field process test

 

The Contractor shall conduct on-site process tests in accordance
with the contract or the instructions of the Supervisor. For large on-site process tests, if the Supervisor considers it necessary,
the Contractor shall prepare a process test plan according to the requirements of the process test proposed by the Supervisor and
submit it to the Supervisor for review.

 

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10. Change

 

10.1 The scope of change

 

Except as otherwise stipulated in the special contract terms, if
the following circumstances occur during the performance of the contract, the changes shall be made in accordance with the provisions
of this article:

 

(1) Increase or decrease any work in the contract or add additional
work;

 

(2) Cancel any work in the contract, except for work performed by
others;

 

(3) Change the quality standards or other characteristics of any
work in the contract;

 

(4) Change the baseline, elevation, position and size of the project;

 

(5) Change the timing or implementation sequence of the project.

 

10.2 Right of change

 

Both the Employer and the Supervisor can propose changes. The change
instructions are issued by the Supervisor, and the Supervisor shall obtain the consent of the Employer before issuing the change
instruction. The change can only be implemented after the Contractor receives the change instructions signed by the contractor.
The Contractor may not arbitrarily change any part of the project without permission.

 

Where design changes are involved, the designer shall provide the
revised drawings and instructions. If the change exceeds the original design standard or approved construction scale, the contractor
shall promptly handle the approval procedures such as planning and design changes.

 

10.3 Change procedure

 

10.3.1 The Employer proposes a change

 

If the Employer proposes a change, the supervisor shall issue a
change instruction to the contractor through the supervisor, and the change instruction shall state the scope of the project and
the content of the change.

 

10.3.2 The Supervisor proposes a change proposal

 

If the Supervisor proposes a change proposal, it shall submit a
change plan to the Employer in writing, explaining the scope and reasons for the change of the plan, the reasons for the change,
and the impact of the change on the contract price and duration. If the contractor agrees to the change, the supervisor shall issue
a change instruction to the contractor. If the contractor does not agree to the change, the supervisor has no right to issue the
change instruction without authorization.

 

10.3.3 Change execution

 

After the Contractor receives the change instruction issued by the
Supervisor, it believes that it cannot be executed, and should immediately raise the reason for not being able to execute the change
instruction. Where the contractor believes that the change can be implemented, it shall state in writing the impact of the implementation
of the change instruction on the contract price and the construction period, and the parties to the contract shall determine the
change estimate in accordance with the provisions of Section 10.4 [Change valuation].

 

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10.4 Change valuation

 

10.4.1 Change valuation principle

 

Unless otherwise agreed in the terms of the special contract, the
valuation of the change shall be handled in accordance with this article:

 

(1) If the work amount list or budget book has the same item, it
shall be determined according to the unit price of the same item;

 

(2) If there is no identical item in the work amount list or budget
book, but there is a similar item, refer to the unit price of similar items;

 

(3) If the change causes the amount of work list that has actually
been completed or the work amount listed in the budget book to be changed by more than 15%, or the work amount list or the budget
book does not have the same item and for the unit price of similar items, in accordance with the principle of reasonable cost and
profit composition, the contracting parties shall determine the unit price of the change work in accordance with Section 4.4 [Agreed
or determined].

 

10.4.2 Change valuation procedure

 

The Contractor shall submit the application for change of valuation
to the Supervisor within 14 days after receiving the change instruction. The Supervisor shall review and submit the application
to the Contractor within 7 days after receiving the application for change of valuation submitted by the Contractor. The Supervisor
shall have objection to the application for the change of valuation, notify the Contractor to modify and resubmit. The Employer
shall complete the approval within 14 days after the Contractor submits the application for the change valuation. If the Employer
fails to complete the approval or fails to file an objection within the time limit, it shall be deemed to recognize the application
for change valuation submitted by the Contractor.

 

The price adjustment due to the change should be included in the
progress payment of the most recent period.

 

10.5 Reasonable suggestions from the Contractor

 

If the contractor makes reasonable suggestions, it shall submit
a rationalization proposal to the Supervisor, explain the content and reasons of the proposal, and the impact of the implementation
of the proposal on the contract price and duration.

 

Except as otherwise stipulated in the special contract terms, the
Supervisor shall review and submit to the Contractor within 7 days after receiving the reasonable proposal submitted by the Contractor,
and find technical defects, and the contractor shall be notified to amend it. The Employer shall complete the examination and approval
within 7 days after receiving the reasonable suggestions submitted by the Supervisor. If the rationalization proposal is approved
by the Employer, the Supervisor shall promptly issue the change instruction, and the resulting contract price adjustment shall
be implemented in accordance with the provisions of Section 10.4 [Change valuation]. If the Employer does not agree to the change,
the Supervisor shall notify the Contractor in writing.

 

    	 	49	 

     

    

 

If the rationalization proposal reduces the contract price or improves
the economic benefits of the project, the Employer may award the Contractor, and the method and amount of the award shall be stipulated
in the special contract terms.

 

10.6 Adjustment of the schedule caused by the change

 

If the change causes the change of construction period, the parties
to the contract may request to adjust the contract period. The parties to the contract shall determine the number of days of increase
or decrease according to the standard of the construction period in accordance with Section 4.4 [Agreed or determined].

 

10.7 Temporary valuation

 

Temporary valuation of professional subcontracting projects, services,
materials and engineering equipment is specified by the parties to the contract in the terms of the special contract.

 

10.7.1 Temporary valuation items that must be tendered according
to law

 

For the temporary evaluation project that must be tendered according
to law, the following first method is adopted. The parties to the contract may also choose other tendering methods in the terms
of the special contract.

 

The first method: For the temporary valuation project that must
be tendered according to law, the contractor shall bid, and the confirmation and approval of the temporary evaluation project shall
be carried out according to the following agreement:

 

(1) The Contractor shall, according to the construction schedule,
submit the bidding proposal to the Employer for review 14 days before the start of the bidding work, and the Employer shall approve
or propose the modification within 7 days after receiving the bidding plan submitted by the Contractor. The Contractor shall carry
out the bidding work in accordance with the tendering plan approved by the contractor;

 

(2) The Contractor shall, according to the construction schedule,
submit the bidding documents to the Employer for approval 14 days in advance, and the Contractor shall complete the approval or
propose amendments within 7 days after receiving the relevant documents submitted by the Contractor; the Employer has the right
to determine the bidding control price and participate in the evaluation of bids in accordance with the law;

 

(3) The Contractor, the supplier and the subcontractor shall advance
the temporary valuation contract 7 days before signing of temporary valuation contract to submit the information of the winning
candidate supplier or the winning candidate subcontractor to the contractor. The contractor shall jointly determine the winning
bidder with the contractor within 3 days after receiving the information; the contractor shall submit a copy of the temporary contract
to the contractor for retention within 7 days of contract signing.

 

    	 	50	 

     

    

 

The second way: For the temporary valuation project that must be
tendered according to law, if the Employer and the Contractor jointly bid to determine the temporary supplier or subcontractor,
the contractor shall notify the contractor 14 days before the start of the bidding work according to the construction schedule.
Person, and submit the temporary valuation tendering plan and work division. The Employer should confirm within 7 days of receipt.
After determining the winning bidder, the Employer, the Contractor and the winning bidder jointly sign a temporary valuation contract.

 

10.7.2 Temporary valuation items that are not subject to legal tendering

 

Except as otherwise stipulated in the special contract terms, for
the temporary valuation items that are not subject to legal tendering, the following first method is adopted:

 

The first method: for temporary evaluation projects that are not
subject to legal tendering, confirm and approve according to this agreement:

 

(1) The Contractor shall submit a written application to the Supervisor
28 days prior to the signing of the procurement contract and the subcontract of the temporary valuation project according to the
construction schedule. The Supervisor shall submit the Employer within 3 days after receiving the application. The Employer shall
give approval or propose amendments within 14 days after receiving the application. If the Employer fails to approve or propose
amendments within the time limit, it shall be deemed that the written application has got consent.

 

(2) If the Employer believes that the supplier or subcontractor
determined by the Contractor cannot meet the project quality or contract requirements, the Employer may request the Contractor
to re-determine the supplier and subcontractor of the temporary valuation project.

 

(3) The Contractor shall submit a copy of the temporary valuation
contract to the Employer for retention within 7 days after signing the temporary valuation contract.

 

The second method: the Contractor in accordance with the first method
in Section 10.7.1 [Temporary valuation items that must be tendered according to law] to determine the temporary valuation project.

 

The third way: the temporary valuation project directly implemented
by the Contractor

 

If the Contractor has the qualifications and conditions for the
implementation of the temporary valuation project, the contractor may implement the temporary valuation project up the agreement
of the Employer and the Contractor, and the parties to the contract may stipulate specific matters in the terms of the special
contract.

 

10.7.3 Due to the Employer's reasons for the delay in the establishment
and performance of the temporary valuation contract, the increase in the cost and/or delay of the construction period shall be
borne by the Employer. Due to the Contractor’s reasons for the delay in the establishment and performance of the temporary
contract, the increased cost and/or delay of the construction period shall be borne by the Contractor.

 

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10.8 Temporary amount

 

The temporary amount shall be used in accordance with the requirements
of the Employer, and the request of the Employer shall be issued by the Supervisor. The parties to the contract may negotiate to
determine the relevant matters in the terms of the special contract.

 

10.9 Day-to-day work

 

If it is necessary to adopt the method of calculating the day-to-day
work, after the consent of the Employer, the Supervisor shall notify the Contractor to carry out the corresponding work by means
of the daily work pricing method, and the price shall be calculated according to the daily work price listed in priced work amount
list or the budget book. The project and its unit price are calculated; if there is no corresponding daily unit price in the priced
work amount list or budget book, according to reasonable cost and profit In accordance with the principle of reasonable cost and
profit composition, the parties to the contract determine the unit price of the day-to-day work in accordance with Section 4.4
[Agreed or determined].

 

The contractor shall submit the following statements and relevant
vouchers to the supervisor for review during the implementation of the work:

 

(1) The name, content and quantity of the work;

 

(2) The names, professions, types of work, grades and working hours
of all personnel involved in the work;

 

(3) The type and amount of materials invested in the work;

 

(4) The type of construction equipment, the number of units and
the consumption of the equipment working time when the work is put into operation;

 

(5) Other relevant materials and vouchers.

 

After the daily work is summarized by the Contractor, it will be
included in the latest progress payment request form, which will be reviewed by the Supervisor and approved by the Employer to
be included in the progress payment.

 

11. Price adjustment

 

11.1 Adjustments caused by market price fluctuations

 

Except as otherwise stipulated in the special contract terms, if
the market price fluctuations exceed the scope agreed by the contracting parties, the contract price shall be adjusted. The parties
to the contract may stipulate in the terms of the special contract to choose the following method to adjust the contract price:

 

The first method: price adjustment using price index.

 

    	 	52	 

     

    

 

(1) Price adjustment formula

 

When the price of the contract affects the price of labor, materials
and equipment, according to the data agreed in the terms of the special contract, calculate the difference and adjust the contract
price according to the following formula:

 

 

In the formula: ΔP - the price difference to be adjusted;

 

P0 - the amount of completed work quantity that the contractor
should receive in the agreed payment certificate. This amount should not include price adjustments, deductions and payments without
quality deposits, payments for advance payments, and deductions. The agreed changes and other amounts have been calculated at the
current price, and are not counted;

 

A - fixed value weight (i.e., the weight of the part is not adjusted);

 

B1; B2; B3...Bn - the variable
weight of each adjustable factor (the weight of the adjustable part), which is the proportion of each adjustable factor in the
contract price;

 

Ft1; Ft2; Ft3...Ftn
- the current price index of each adjustable factor, which refers to the agreed payment

 

The price index of each adjustable factor for the first 42 days
of the last day of the certificate-related cycle;

 

F01; F02; F03...F0n
- the basic price index of each adjustable factor, which refers to the base date

 

The price index of each adjustable factor.

 

The adjustable factors, fixed values and variable weights in the
above price adjustment formula, as well as the basic price index and its source are agreed in the price index and weight table
of the tender letter, and the non-tendered contract is concluded by the contracting party in the special contract terms. In the
agreement. The price index should first adopt the price index issued by the project cost management agency. When there is no such
price index, the price issued by the project cost management agency can be used instead.

 

(2) Temporarily determine the adjustment difference

 

If there is no current price index when calculating the adjustment
difference, the contracting party agrees to temporarily use the previous price index calculation. If the actual price index is
adjusted, the parties to the contract will make corresponding adjustments.

 

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(3) Adjustment of weight

 

If the weight of the contractual agreement is unreasonable due to
the change, it shall be executed in accordance with Sub-Section 4.4 [Agreed or determined].

 

(4) Price adjustment after the delay of the construction period
due to the contractor

 

If the contractor fails to complete the project on time, the project
that continues construction after the completion date specified in the contract shall use the lower one of the two price indices,
the planned completion date and the actual completion date, as the current price when using the price adjustment formula.

 

The second method: price adjustment using price information.

 

During the performance of the contract, when the price of labor,
materials, engineering equipment and mechanical shifts affects the contract price, the labor and machinery use fees shall be in
accordance with the construction administrative department of the state or province, autonomous region or municipality directly
under the Central Government, the industry construction management department or its authorized project cost. The labor and machinery
royalty rates issued by the management organization shall be adjusted; the unit price and purchase quantity shall be approved by
the Employer, and the Employer shall confirm the unit price and quantity of the materials to be adjusted as the basis for adjusting
the contract price.

 

(1) The labor unit price changes and complies with the labor cost
adjustment regulations issued by the provincial or industry construction authorities. The contract parties shall adjust the contract
according to the labor costs and other documents issued by the provincial or industrial construction authority or its authorized
project cost management agency. Price, unless the contractor’s offer for labor or labor unit price is higher than the published
price.

 

(2) The adjustment of the price of materials and engineering equipment
changes shall be carried out according to the following risk range according to the benchmark price provided by the contractor:

 

1 The Contractor stated in the price list or budget book that the
unit price of the material is lower than the benchmark price: except for the terms of the special contract, the unit price of the
material during the performance of the contract increases more than 5% based on the benchmark price, or the unit price decline
is more than 5% based on the unit price of the material listed in the listed price list or budget book, the excess is adjusted
according to the actual price.

 

2 The Contractor stated in the priced work amount list or budget
book that the unit price of the material is higher than the benchmark price: unless otherwise specified in the special contract
terms, the unit price of the material during the performance of the contract exceeds 5% based on the benchmark price. The increase
is more than 5% based on the unit price of the material stated in the work amount list or budget book, and the excess is adjusted
according to the actual situation.

 

3 The Contractor stated in the priced work amount list or budget
book that the unit price of the material is equal to the benchmark price: unless otherwise specified in the terms of the special
contract, when the unit price of the material during the performance of the contract exceeds ±5% based on the benchmark
price, the exceeding part of should be adjusted on actual situation.

 

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4 The Contractor shall submit the purchase quantity and the new
material unit price to the Employer for verification before purchasing the materials. When the Employer confirms that it is used
in the project, the contractor shall confirm the quantity and unit price of the purchased materials. If the Employer does not reply
within 5 days after receiving the confirmation information submitted by the Contractor, it shall be deemed as approval, as the
basis for adjusting the contract price. If the contractor purchases the materials by himself without the prior approval of the
contractor, the contractor has the right not to adjust the contract price. If the contractor agrees, the contract price can be
adjusted.

 

The aforementioned benchmark price refers to the price of materials
and engineering equipment given by the Employer in the bidding documents or special contract terms. The price shall in principle
be in accordance with the information issued by the provincial or industrial construction authority or its authorized project cost
management agency.

 

(3) When the unit price of the construction machinery or the construction
machinery usage fee changes more than the scope specified by the provincial or industrial construction authority or its authorized
construction cost management agency, the contract price shall be adjusted according to the regulations.

 

The third method: other ways agreed on the terms of the special
contract.

 

11.2 Adjustments caused by legal changes

 

After the base date, when the legal changes result in the Contractor’s
expenses incurred in the performance of the contract, except for the increase other than the agreement of the provisions of Section
11.1 [Adjustment of market price fluctuations], the contractor shall bear the increased expenses; it should be deducted from the
contract price. After the base date, the construction period shall be postponed when the construction period is delayed due to
legal changes.

 

If the contract party is unable to reach an agreement due to changes
in the contract caused by legal changes, the Supervisor Engineer shall deal with it in accordance with the provisions of Section
4.4 [Agreed or determined].

 

If the construction period is delayed due to the Contractor's reasons
and there is a legal change during the construction period delay, the increased cost and/or delay of the construction period shall
be borne by the contractor.

 

12. Contract price, measurement and payment

 

12.1 Contract price form

 

The contractor and the contractor shall choose one of the following
contract price forms in the contract agreement:

 

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1. Unit price contract

 

The unit price contract refers to the construction project construction
contract that the contracting party agrees to calculate, adjust and confirm the contract price with the work amount list and its
comprehensive unit price. The unit price of the contract is not adjusted within the agreed scope. The parties to the contract shall
stipulate in the terms of the special contract the method of calculating the risk range and risk cost included in the comprehensive
unit price, and agree on the adjustment method of the contract price outside the risk range. The adjustment caused by the fluctuation
of the market price shall be in accordance with Section. 11.1 [Adjustment of market price fluctuations].

 

2. Total price contract

 

The total price contract refers to the construction project construction
contract that the contracting party has agreed to calculate, adjust and confirm the contract price with the construction drawing,
the listed work amount list or the budget book and the relevant conditions. The total contract price is not adjusted within the
agreed scope. The parties to the contract shall stipulate in the terms of the special contract the method of calculating the risk
range and risk cost included in the total price, and agree on the adjustment method of the contract price outside the risk range.
The adjustment caused by the fluctuation of the market price shall be in accordance with Section. 11.1 [Adjustment of market price
fluctuations]. The adjustments caused by the law change are subject to the provisions of Section 11.2 [Adjustment due to legal
changes].

 

3. Other price forms

 

The parties to the contract may stipulate other forms of contract
price in the terms of the special contract.

 

12.2 Advance payment

 

12.2.1 Advance payment

 

The payment of the advance payment is carried out in accordance
with the terms of the special contract, but it should be paid no later than 7 days before the commencement date specified in the
commencement notice. Advance payment shall be used for the procurement of materials, engineering equipment, construction equipment,
construction of temporary projects, organization of construction teams, etc.

 

Except as otherwise stipulated in the special contract terms, the
advance payment is deducted in the same proportion in the progress payment. Before the project acceptance certificate is issued,
if the contract is cancelled in advance, the prepayments that have not been deducted shall be settled together with the contract
price.

 

If the Employer fails to pay the advance payment for more than 7
days, the Contractor shall have the right to issue the Employer request for advance notice of notice, if the Employer has not paid
within 7 days after receiving the notice, The contractor has the right to suspend the construction and execute it in accordance
with Section 16.1.1 [Default by the Employer].

 

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12.2.2 Advance payment guarantee

 

If the
Employer requests the Contractor to provide the advance payment guarantee, the Contractor shall provide
the advance payment guarantee 7 days before the Employer
pays the advance payment, unless otherwise agreed in the Special Contract Terms. The
advance payment guarantee may be in the form of a bank guarantee or a guarantee company guarantee, which shall be specifically
stipulated by the parties in the Special Contract Terms. Before the advance payment
is fully deducted, the Contractor shall keep the pre-payment guarantee sustained and effective.

 

As the Employer deducts by stage the advance
payment from the project payment, the advance payment guarantee shall be reduced accordingly, but the advance payment guarantee
balance shall not be lower than the amount of the remaining advance payment.

 

12.3 Quantity verification

 

12.3.1 Principle of quantity verification

 

The quantity of construction works is measured
in accordance with quantity calculation rules for construction works, drawings and change in instructions, as stipulated in the
contract. The quantity calculation rules for construction works shall be based on relevant national standards, industry standards
and such, and shall be agreed by the contracting parties in the Special Contract Terms.

 

12.3.2 Quantity measurement cycle

 

Except as otherwise stipulated in the special
contract terms, the measurement of the construction quantity shall be carried out on a monthly basis.

 

12.3.3 Measurement of unit price contract

 

Except as otherwise stipulated in the special
contract terms, the measurement of the unit price contract shall be carried out in accordance with this clause:

 

(1) The Contractor shall submit to the Supervisor
on the 25th of every month a report on completed construction works for the period from the 20th of the previous month
to the 19th of the current month, accompanies by an application form for bill of progress payment, completed work reports and
relevant materials.

 

(2) The Supervisor shall review the submitted
construction report within 7 days after its receival, and send to the Employer to determine the amount of work actually completed
in the current month. If the Supervisor has any objection to the quantity of the construction works, he is entitled to request
the Contractor to conduct a joint review or a sample retest. The Contractor shall assist the Supervisor to conduct the review
or sample retest, and provide supplementary measurement materials as required by the Supervisor. If the Contractor fails to
participate in the review or sampling retest at the request of the Supervisor, the amount of work reviewed or corrected by the
Supervisor shall be regarded as the amount of work actually completed by the Contractor.

 

(3) If the Supervisor fails to complete the
review within 7 days after receiving the progress report submitted by the Contractor, the amount of construction works in
the progress report shall be treated as the amount of work actually completed by the Contractor, and shall be paid accordingly.

 

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12.3.4 Measurement of the total price contract

 

Except as otherwise stipulated in the special
contract terms, the total price contract paid by month shall be executed in accordance with the following:

 

(1) The Contractor shall submit to the Supervisor
on the 25th of every month a report on completed construction works for the period from the 20th of the previous month
to the 19th of the current month, accompanies by an application form for bill of progress payment, completed work reports and
relevant materials.

 

(2) The Supervisor shall review the submitted
construction report within 7 days after its receival, and send to the Employer to determine the amount of work actually completed
in the current month. If the Supervisor has any objection to the quantity of the construction works, he is entitled to request
the Contractor to conduct a joint review or a sample retest. The Contractor shall assist the Supervisor to conduct the review
or sample retest, and provide supplementary measurement materials as required by the Supervisor. If the Contractor fails to
participate in the review or sampling retest at the request of the Supervisor, the amount of work reviewed or corrected by the
Supervisor shall be regarded as the amount of work actually completed by the Contractor.

 

(3) If the Supervisor fails to complete
the review within 7 days after receiving the progress report submitted by the Contractor, the amount of construction works
in the progress report shall be treated as the amount of work actually completed by the Contractor, and shall be paid accordingly.

 

12.3.5 If
the total price contract is measured in terms of the payment breakdown table, it may be measured in reference to Section 12.3.4 [Measurement
of the total price contract], but the contract payment shall be paid in accordance with the payment breakdown table.

 

12.3.6 Measurement of other price forms of
contracts

 

The parties to the contract may stipulate the
measurement methods and procedures for other price forms of contracts in the Special Contract
Terms.

 

12.4 Construction progress payment

 

12.4.1
Payment cycle

 

Unless otherwise agreed in the Special
Contract Terms, the payment cycle shall be consistent with the measurement period in accordance with Section 12.3.2 [Payment
period].

 

12.4.2
Preparation of progress payment request form

 

Unless otherwise agreed in the Special
Contract Terms, the progress payment application form shall include the following:

 

(1)
The amount of payment corresponding to the work completed in this payment cycle;

 

(2)
The changed amount that should be increased and deducted under Article 10 [Change];

 

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(3) The
advance payment that shall be paid and the deducted advance payment that is to be refunded in accordance with Section 12.2 [Advance
payment];

 

(4) The quality
guarantee that shall be deducted in accordance with Article 15.3 [Quality Assurance];

 

(5)
The amount of the claim that should be increased and deducted under Article 19 [Claims];

 

(6) The
amount for the amendments to errors in the issued progress payment certificate should be paid or deducted from the progress payment;

 

(7)
Other amounts that should be increased and deducted in accordance with the contract.

 

12.4.3
Submission of progress payment request form

 

(1) Submission
of unit price contract progress payment request form

 

The progress payment application form of the unit
price contract shall be submitted to the Supervisor in accordance with the time specified in Section 12.3.3 [Measurement
of the unit price contract] on a monthly basis. The completed progress report and related materials shall be attached. The
total price item in the unit price contract is broken down on a monthly basis and is included in the current progress payment application
form.

 

(2)
Submission of progress payment application form for total price contract

 

If the total price contract is paid monthly,
the Contractor shall submit the progress payment application form to the Supervisor on a monthly basis in accordance
with the time specified in Section 12.3.4 [Measurement of the total price contract], and attach the progress report
for completed works and related materials.

 

If the total price contract is paid according
to the payment breakdown table, the Contractor shall submit the progress payment application form to the relevant
Supervisor in accordance with Section 12.4.6 [payment breakdown table] and Section 12.4.2 [preparation
of progress payment application form].

 

(3)
Submission of progress payment application form for other price forms

 

The parties to the contract may stipulate in
the Special Contract Terms the preparation and submission procedures for the progress
payment application form for other price forms.

 

12.4.4
Progress payment review and payment

 

(1) Except as otherwise stipulated in the special
contract terms, the Supervisor shall complete the review and submit it to the Employer within 7 days after
receiving the Contractor's progress payment application form and relevant materials. The Employer shall complete the
review and issue the progress payment certificate within 7 days after receipt of the aforementioned materials. If
the Employer fails to complete the review and issue the payment certificate within the said period, and no objection
is filed, it shall be deemed that a progress payment certificate has been issued.

 

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If the Employer and the Supervisor have objections
to the Contractor's progress payment application form, they shall be entitled to request the Contractor amend and provide supplementary
information, and the Contractor shall submit a revised progress payment application form. The Supervisor shall complete the
review of the amended progress payment application form and related documents within 7 days after their receipt, and send to the
Employer. The Employer shall, within 7 days upon receipt of the amended progress payment application form and related documents
from the Supervisor, issue a provisional progress payment certificate to the Contractor for the part with no disputes. The
disputed part shall be dealt with in accordance with the provisions of Article 20 [Dispute Resolution].

 

(2) Unless otherwise stipulated in the special
contract terms, the Contractor shall complete the payment within 14 days after issuance of the progress payment
certificate or the provisional progress payment certificate. If the Contractor fails to pay the progress payment on time,
it shall pay liquidated damages in accordance with the benchmark interest rate of similar loans for the same period issued by the
People's Bank of China.

 

(3) The Employer's issuance of a progress payment
certificate or a provisional progress payment certificate does not indicate that the Employer has agreed, approved of or accepted
the corresponding part of work completed by the Contractor.

 

12.4.5 Progress
payment amendment

 

If errors, omissions or duplications are found
in the process of stage summary and review of the issued progress payment certificate, both the Contractor and the Employer are
entitled to file an amendment application. Amendments agreed by both the Contractor and the Employer shall be paid or deducted
from the next progress payment.

 

12.4.6
Payment breakdown table

 

1. Requirements
for the preparation of the payment breakdown table

 

(1)
The amount of each payment listed in the payment breakdown table shall be the same as the estimated amount listed in Section
12.4.2 [the preparation of the progress payment application form], item (1);

 

(2) If the actual progress is inconsistent
with the construction schedule, the parties to the contract may follow the Section 4.4 [Agreed or determined] to modify
the payment breakdown table;

 

(3)
If the payment breakdown table is not used, the Contractor shall submit to the Contractor
and the Supervisor a quarterly payment estimate breakdown table for payment reference.

 

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2. Preparation
and approval of the breakdown of the total price contract payment

 

(1) Unless
otherwise agreed in the Special Contract Terms,
the Contractor shall break down or prepare the payment breakdown table on a monthly basis in accordance with such factors as the
agreed construction schedule Section 7.2.[Construction schedule], the
contracted price and the amount of construction works. The Contractor shall, within 7 days after receiving the
construction schedule approved by the Supervisor and the Contractor, submit
the supporting materials for the payment breakdown table and the preparation of the payment breakdown table to the Supervisor.

 

(2) The
Supervisor should complete the review within 7 days after receipt of the payment breakdown table and submit it to the Employer.
The Employer shall complete the approval within 7 days after receipt of the payment breakdown form reviewed by the Supervisor.
The payment breakdown table approved by the Employer shall be a binding payment breakdown table.

 

(3)
If the Employer fails to complete the approval
of payment breakdown table on time, nor request the Contractor to amend and to provide additional materials in a timely
fashion, the payment breakdown table submitted by the contract shall be deemed that it has obtained the approval from the Employer.

 

3. Compilation
and approval of the payment breakdown table for the total price of the unit price contract

 

Except as otherwise stipulated in the special
contract terms, the total price of the unit price contract shall be decomposed by the Contractor in terms of construction schedule,
total price structure, nature of expenses, planned timeframes and corresponding amount of works to form a payment breakdown table.
The compilation and approval of the payment breakdown table shall be in reference to compilation and approval of the payment breakdown
table for the total price contract.

 

12.5 Payment account

 

The Employer shall pay the contract payment
to the Contractor's account as agreed in the contract agreement. 

 

13. Acceptance and construction trial run 

 

13.1 Sub-item project acceptance

 

13.1.1 The
quality of the sub-item projects shall conform to the relevant national construction acceptance criteria,
standards and contractual agreements. The Contractor shall complete the construction of sub-item projects in accordance
with the design requirements of the construction organization.

 

13.1.2 Unless
otherwise stipulated in the terms of a special contract, for sub-item projects that have been self-inspected by the Contractor and
have qualified for acceptance, the
Contractor should notify the Supervisor 48 hours in advance of inspection. If
the Supervisor fails to inspect on time, a written extension request shall be submitted to the Contractor 24 hours in advance of
inspection; however, the extension shall not exceed 48 hours. If
the Supervisor fails to inspect the works on time or request the extension, the Contractor is entitled to self-inspection,
and the Supervisor shall approve of the inspection result. The sub-item projects that are not inspected shall not proceed
to the next construction project.

 

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The inspection and acceptance data for the
sub-item projects shall be part of the completion data.

 

13.2 Completion acceptance

 

13.2.1 Completion acceptance conditions

 

The Contractor may apply for completion acceptance
provided the project satisfies the following requirements:

 

(1)
All the projects and related work within the scope of the contract including trials, test
run and inspection, except for the work completed ahead of schedule and defect repair work agreed by the Employer, have
been completed and meet the contract requirements;

 

(2)
The work list covering works to be completed ahead of schedule and defect repair work, and the corresponding construction plan
have been compiled in accordance with the contract;

 

(3)
Completion data has been prepared in accordance with the content and number of copies as agreed in the contract.

 

13.2.2 Completion acceptance procedure

 

Unless otherwise stipulated in the special
contract terms, the following procedures shall be implemented in the event that the Contractor applies for completion acceptance:

 

(1)
The Contractor submits the application report for completion acceptance to the Supervisor,
and the Supervisor shall complete inspection within 14 days after receipt of the application report and report to the Employer. In
the case that the Supervisor deems that the conditions for acceptance have not been met, the Contractor shall be notified
the Contractor of the work content that is yet to be completed before the completion of the acceptance. The Contractor shall resubmit
the completion acceptance application report after completion of the said work content.

 

(2)
If the Supervisor deems that the conditions for completion of acceptance have been met after
review, the application report for completion acceptance shall be submitted to the Employer. The Employer shall complete the inspection
and acceptance within 28 days after receipt of the application report for completion acceptance, and organize the relevant units
including the Supervisor, the Contractor and the designer to complete the construction acceptance.

 

(3) If
the completion acceptance is qualified, the Employer shall issue a project acceptance certificate to the Contractor within 14 days
after the acceptance is completed. If the Employer fails to issue the project acceptance certificate without due cause, the project
acceptance certificate shall be deemed to have been issued from the 15th day after the acceptance.

 

(4) If
the completion acceptance is unqualified, the Supervisor shall issue instructions in accordance with the acceptance opinion, requesting
the Contractor to rework, repair or take other remedial measures for the unqualified project, and the increased cost and/or delay
of the construction period shall be borne by the Contractor. After completing the rework, repair or other remedial measures for
the unqualified project, the Contractor shall re-submit the completion acceptance application report and re-accept the acceptance
in accordance with the procedures stipulated in this clause.

 

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(5) If
the project fails to pass the acceptance or the acceptance is unqualified and the Employer puts it into use, at its own discretion,
the Contractor shall be issued a project acceptance certificate within 7 days after the transfer of the possessed project;
if the Employer is not justified. If the Contractor fails to issue the project acceptance certificate without due cause, the project
acceptance certificate shall be deemed to have been issued from the 15th day after the transfer.

 

Unless otherwise stipulated in the special
contract terms, if the Employer fails to organize the completion acceptance and issue the project acceptance certificate in accordance
with this stipulation, each day after the expiration of the contract, the contractual contract price shall be used as the base
and liquidated damages shall be paid in accordance with the benchmark interest rate of the same loan issued by the People's
Bank of China in the same period.

 

13.2.3 Completion date

 

If the project is qualified for completion
and acceptance, the date on which the Contractor submits the application report for completion acceptance is the actual completion
date, and it is stated in the project acceptance certificate; if the inspection and acceptance fails to be completed within 42
days after the Supervisor receives the completion acceptance application report submitted by the Contractor due to the fault of
the Employer, or the completion acceptance certificate is not issued after the project is inspected and accepted, the date of submission
of the completion acceptance application report shall be the actual completion date; if the Employer puts into use, at its discretion,
the construction project that has not been inspected for completion, the date on which the change of occupancy occurs shall be
the date of completion.

 

13.2.4 Refusal to accept all or part of the
project

 

For projects
that fail to pass the acceptance check, the Contractor shall recomplete the completion and acceptance upon rectification. If the
reorganization and acceptance are still unqualified
and no remedial measures can be taken, the Employer may refuse to accept the unqualified project. If other projects cannot be used
normally due to the unqualified project, the Contractor shall take measures to ensure the normal use of the relevant projects,
and the increased costs and/or delays shall be borne by the Contractor.

 

13.2.5
Transfer and receival of all and part of the project

 

Unless
otherwise stipulated in the special contract terms, the parties to the contract shall complete the transfer of the project within
7 days after receipt of the acceptance certificate. 

 

If the
Employer does not accept the project without proper reasons, the Employer shall bear the costs related to the
project, such as care of the works, protection of finished products and custody, from the date of receipt of the project. The contracting
parties may separately stipulate in the Special Contract Terms the liability of the
Employer for its delay in accepting the project.

 

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If the Employer does not transfer the project
without proper reasons, the Employer shall bear the costs related to the project, such as care of the works, protection of finished
products and custody, from the date of receipt of the project. The contracting parties may separately stipulate in the Special
Contract Terms the liability of the Employer for its delay in transferring the project.

 

13.3 Construction trial run

 

13.3.1 Trial run procedure

 

If the project needs trial run, unless otherwise
agreed in the Special Contract Terms, the content of the test shall be consistent
with the scope of contracting by the Contractor, and the cost of the test shall be borne by the Contractor. The construction
trial run shall be performed as follows:

 

(1) If the installation work is ready for single
machine load-free test run, the Contractor shall organize such test run and inform the Supervisor in written form 48 hours prior
to the test run. This notice shall consist of the test run content, date / time and place for the test run. The Contractor is required
to prepare test run record and the Employer shall provide necessary conditions and facilities for the test run work. If the test
run proves qualified, the Supervisor shall sign his name on the test run record. If the Supervisor fails to sign his name on the
test run record within 24 hours after the test run proves qualified, it is deemed that the Supervisor has approved of the test
run record and the Contractor can proceed construction or start the completion acceptance check.

 

If the Supervisor fails to attend the test
run in time, he shall inform the Contractor in written form 24 hours prior to the test run, but such postponement shall not exceed
48 hours. The work progress shall be duly postponed if such postponement results in delay of construction schedule. If the Supervisor
fails to file an extension request within the said period and fails to attend the test run as well, it is deemed that the Supervisor
has approved of the test run record.

 

(2) When
the installation work is ready for a load-free integrated test run, the Employer shall organize this work and inform the Contractor
in written form 48 hours prior to the test run. The notice shall consist of the content and the date / time, place of the test
run and requirements of the Contractor. The Contractor shall make well-considered preparatory work. If the test run proves qualified,
the test run record shall be signed by the both parties. If the Contractor fails to attend the test run without proper reasons,
it is deemed that the Contractor approves of the test run record.

 

13.3.2 Responsibility in the test run

 

If the test run does not conform to the acceptance
requirement because of the fault of the original design, the Employer shall request the design institute to modify the design and
the Contractor shall re-install the equipment as per the revised design. The Employer shall bear all expense for modification of
design, tearing down of the work and re-installation. The work progress shall be duly postponed. If the test run does not conform
to the acceptance requirement because of the fault of the Contractor, the Contractor shall re-install the equipment, and bear the
expense for re-installation and test run. The work progress shall not be postponed.

 

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If the test run does not reach the requirement
for the acceptance due to equipment manufacturing fault, the contractual party that purchases such equipment shall be responsible
for the purchase of the new equipment or repair work while the Contractor is responsible for teardown and re-installation work.
The cost incurred for repair, re-purchase, teardown and re-installation and postponement of work progress shall be borne by the
party that is responsible for purchase of equipment.

 

13.3.3 Load test

 

If load test run is needed, the Employer shall
carry out such test run after the engineering work has been formally accepted. If the Employer wishes to carry out the test run
prior to the acceptance and needs cooperation from the Contractor, the Employer shall obtain the approval from the Contractor and
have it stipulated in the Special Contract Terms.

 

If the test is qualified, the cost shall be
borne by the Employer; if the test is unqualified due to the fault of the Contractor, the Contractor shall carry out the rectification
in accordance with the requirements of the Employer. The expense incurred resulting from the rectification shall be borne by the
Contractor. If the test is unqualified not due to the fault of the Contractor and the Employer requires the Contractor to carry
out the rectification, the expense incurred shall be borne by the Employer.

 

13.4 Early delivery of unit project
acceptance

 

13.4.1 If
the Employer requires the use of unit project prior to project completion, or the Contractor proposes an early delivery of any
unit project that has been completed and is approved by the Employer, such unit project can be accepted and the acceptance procedure
shall be carried out in accordance with Section 13.2 [completion acceptance].

 

After
the acceptance is approved, the Supervisor shall issue to the Contractor a unit project acceptance certificate signed by the
Employer. The unit project that has been issued the unit project acceptance certificate shall be taken care of by the Contractor. The
acceptance results and conclusions of the unit project are attached to the application report for the completion of the overall
project.

 

13.4.2 If the Employer
requires the delivery of unit project prior to project completion that results in any increased expense and/or delay in work progress,
the Employer shall be liable for such extra expense incurred and/or delay in work progress.

 

13.5
Operation during construction period 

 

13.5.1 Operation during construction period
is that the contract project has not been fully completed while one or several units of engineering or engineering equipment installation
have been completed. As stipulated in the Special Contract Terms, any unit project
that need putting into operation during construction period can only enter operation after the Employer inspects and accepts it
in accordance with Section 13.4 [Acceptance of early delivery of unit project] and its security can be guaranteed.

 

13.5.2 If the engineering or engineering equipment
is found damaged or defective during the construction period, the Contractor shall have it repaired in accordance with Section
15.2 [Defect liability].

 

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13.6
Demobilization

 

13.6.1
Demobilization

 

After the issuance of project acceptance certificate,
the Contractor shall clean up the construction site in accordance with the following requirements:

 

(1)
All the residual garbage in the construction site have been cleared out;

 

(2)
The provisional works have been dismantled and the site has been cleaned, leveled or restored;

 

(3)
The personnel who should be evacuated according to the contract, the construction equipment
of the Contractor and the remaining materials including the abandoned construction
equipment and materials, have been removed from the construction site as planned;

 

(4)
The surroundings of the construction site and nearby roads, and construction deposits in the
rivers have been completely cleaned up;

 

(5)
The cleaning of other sites on the construction site has been completed.

 

The cost
of demobilization of the construction site shall be borne by the Contractor. The
Contractor shall complete demobilization within the time limit as specific in the Special Contract Terms. If the Contractor fails
to complete on time, the developer is entitled to sell or treat separately the legacy of the Contractor, and the expenses incurred
shall be borne by the Contractor. The proceeds from the sale of the contractor’s legacy items by the Employer
shall be refunded to the Contractor upon deduction of the necessary fees.

 

13.6.2
Surface restoration

 

The Contractor shall restore the temporary
land occupation and clean up the site according to the requirements of the Employer.
If the Contractor fails to restore the temporary land occupation according to
the requirements of the Employer, or the site clearance does not meet the requirements stipulated in the contract,
the Employer has the right to entrust others to restore or clean up. The costs incurred shall be borne by the Contractor.

 

14. Completion settlement

 

14.1 Completion settlement application

 

Unless otherwise stipulated in the Special
Contract Terms, the Contractor shall submit a completion settlement application form to the Employer and the Supervisor
and submit complete settlement documents, within 28 days after the project completes completion acceptance. The information list
and the number of copies of the completion settlement application form are stipulated by the contractual parties in the special
contract terms.

 

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Except as otherwise stipulated in the special
contract terms, the completion settlement application form shall include the following:

 

(1)
Completion settlement contract price;

 

(2)
The payment the Employer has paid to the Contractor;

 

(3)
The quality deposit that should be withheld. Paid
performance bond or other ways of guarantee for engineering quality are excluded;

 

(4)
The contract price the Employer shall pay to the Contractor.

 

14.2 Completion settlement review

 

(1)
Unless otherwise stipulated in the Special Contract Terms,
the Supervisor should complete the review of the completion settlement application form within 14 days after its receipt
and report to the Employer. The Employer shall complete examination and approval within 14 days after receiving
the reviewed completion settlement application form submitted by the Supervisor. The Supervisor shall issue the completion
payment certificate signed by the Employer to the Contractor. If the Supervisor or the Employer has any objection to the completion
settlement application, it has the right to request the Contractor to make amendments and provide supplementary materials. The
Contractor shall submit the revised completion settlement application form.

 

If the Employer fails to complete the
examination and approval within 28 days after receiving the application form for completion settlement, and
files no objection, it shall be deemed that the Employer approves of the completion settlement application form from the Contractor,
and the completion payment certificate shall be deemed to be issued from the 29th day after the Employer receives the
completion settlement application form submitted by the Contractor.

 

(2) Unless
otherwise stipulated in the Special Contract Terms, the Employer shall make the payment
to the Contractor within 14 days after issuance of the payment certificate. If the Employer fails to make the
payment on time, the Employer shall pay liquidated damages according to the benchmark interest rate of similar loans issued by
the People's Bank of China for the same period. If the payment is overdue for over 56 days, the Employer shall double its
liquidated damages payment in accordance with the benchmark interest rate of similar loans issued by the People's Bank of
China.

 

(3) 
If the Contractor has any disagreement with the completion payment certificate signed by the
Employer, the Contractor shall file its objection within 7 days upon receipt of completion payment certificate signed by the Contractor.
The objection shall be reviewed by the contractual parties according to the Special
Contract Terms, or shall be dealt with in accordance with Article 20 [Dispute resolution].
For the part without objection, the Employer shall issue a
provisional certificate of completion of payment, and shall make the payment according to Clause (2) of
this Section. If the Contractor fails to
file an objection within the time limit, it shall be deemed to approve the approval result of the Employer.

 

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14.3 Agreement on leaving some of the engineering
work unfinished

 

If the Employer requires some part of the engineering
work be left unfinished, in such case the two parties shall conclude an agreement on leaving some of the engineering work unfinished,
wherein it shall be stipulated that the two parties shall settle the completed
projects and make the corresponding payment in accordance with Section 14.1 [Application for Completion Settlement] and Section 14.2 [Completion
Settlement Review].

 

14.4 Final settlement

 

14.4.1 Application form of final settlement

 

(1)
Unless otherwise agreed in the Special Contract
Terms, the Contractor shall submit the application form for the final settlement to
the Employer in accordance with the Special Contract Terms and
the number of copies within 7 days after the issuance of the certificate for defect liability period termination, and provide relevant
supporting materials.

 

Unless otherwise stipulated in the Special
Contract Terms, the final settlement application form shall list quality guarantee, quality deposit to be deducted, and
the increased and/or decreased expenses incurred during the defect liability period.

 

(2) If
the Employer has any disagreement to the application form, it is entitled to request that the Contractor shall make
amendments and provide supplementary information, and the Contractor shall submit the revised final settlement application form
to the Employer.

 

14.4.2 Final settlement certificate and payment

 

(1) Unless
otherwise stipulated in the Special Contract Terms,
the Employer shall complete the examination and approval within 14 days after the Contractor submits the application form for final
settlement and issue the certificate for final settlement. If the Employer fails to complete examination and approval on time,
and fails to propose any amendments, it shall be deemed that the Employer agrees to the final settlement application form
submitted by the Contractor, and the final completion payment certificate shall be deemed to be issued from the 15th
day after the Employer receives the application form of the final completion submitted by the Contractor.

 

(2) Unless
otherwise stipulated in the Special Contract Terms,
the Employer shall make the payment to the Contractor within 7 days after issuance of the final settlement certificate. If the
Employer fails to make the payment on time, the Employer shall pay liquidated damages according to the benchmark interest rate
of similar loans issued by the People's Bank of China for the same period. If the payment is overdue for over 56 days, the Employer
shall double its liquidated damages payment in accordance with the benchmark interest rate of similar loans issued by the People's
Bank of China.

 

(3) If
the Contractor has any objection to the final settlement certificate issued by the Employer,
it shall be dealt with in accordance with Article 20 [Dispute Resolution].

 

15. Defect liability and warranty

 

15.1 Principle of Remedy Defects

 

After the transfer of the project, the Contractor
shall be liable for any quality defect and warranty obligations if the defect results from the fault of the Contractor. Upon expiration
of the defect liability period, the Contractor shall still bear the warranty obligation in accordance with the warranty period
of each part of the project as stipulated in the contract.

 

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15.2 Defect liability period

 

15.2.1 The
liability period of defects shall start from the date when the project receives approval of the completion acceptance. The parties
to the contract shall specify the specific period of the defect liability period in the Special Contract Terms, but the maximum
period shall not exceed 24 months.

 

The unit project shall be inspected and accepted
before the entire project. If the unit project proves qualified and is delivered, the liability period of the unit shall be counted
from the date of acceptance of the unit project. If the project fails to pass the acceptance due to the fault of the Contractor,
the defect liability period shall be calculated from the date of actual completion acceptance. If the project fails to pass
the acceptance according to the contract deadline due to the fault of the Employer, the project will automatically enter the defect
liability period 90 days after the Contractor submits the completion acceptance report; if the Employer uses the
project without completion acceptance, the defect liability period shall start from the transfer of the project.

 

15.2.2 During
the period of defect liability, the Contractor shall be responsible for the repair and bear the cost of identification
and maintenance if the defects are caused by the Contractor. If the Contractor
does not repair or bear the expenses, the Employer may deduct from the deposit or bank guarantee according to the contract. If
the said fee exceeds the guaranteed amount, the Employer may request claims from the Contractor according to the contract. After
the Contractor repairs and bears the corresponding expenses, it is not exempted from liability for damages to the project. The
Employer has the right to request the Contractor to extend the defect liability period and to issue an extension notice before
the expiration of the original defect liability period. However, the defect liability period (including the extension) cannot
exceed 24 months.

 

For defects caused by others, the Employer
shall be responsible for having them repaired. The Contractor shall not bear any cost, and the Employer shall not deduct the fee
from the deposit.

 

15.2.3 After
repair of any defect or damage to the project, the Contractor shall re-conduct the trials and test run if it is proved the said
defect or damage has hinders the performance of engineering or engineering equipment. The full cost of the said trials and test
run shall be borne by the party at fault.

 

15.2.4 Unless other stipulated in the Special
Contract Terms, the Contractor shall issue a notice of defect liability
period expiration within 7 days after the defect liability period expires. The Employer shall verify
whether the Contractor has fulfilled its repair obligations within 14 days after receipt of the said notice. If the Contractor
fails to perform its defect repair obligations, the Employer has the right to deduct the corresponding amount of maintenance costs. The
Employer shall issue the defect liability period termination certificate to the Contractor within 14 days after
the expiration of the defect liability period.

 

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15.3
Quality deposit

 

If the quality deposit is withheld as mutually
agreed by both parties to the contract, it shall be clarified in the Special Contract Terms.

 

Before the completion of the project, if the
Contractor has provided the performance guarantee, the Employer shall not reserve the project quality guarantee at the same time.

 

15.3.1
Ways of quality deposit provision by the Contractor

 

There are three ways for the Contractor to
provide quality assurance:

 

(1)
Quality guarantee;

 

(2)
The corresponding proportion of the project payment;

 

(3)
Other ways as agreed by both parties.

 

Unless otherwise stipulated in the Special
Contract Terms, the quality deposit shall adopt the above method (1) in principle.

 

15.3.2
Deduction of quality deposit

 

There are three ways to deduct the quality
deposit:

 

(1) In
the case of progress payment deducted by installment, the calculation base of the quality
deposit shall not include payment, deduction and price adjustment of the advance payment;

 

(2)
The quality deposit is withheld all at once when the project is completed;

 

(3) Other
methods of deduction as agreed by both parties.

 

Unless otherwise stipulated in the Special
Contract Terms, the deduction of the quality deposit shall adopt the above method (1) in principle.

 

The accumulated deduction of the quality deposit
by the Employer shall not exceed 3% of the total settlement amount of the project price. If the Contractor submits the
quality guarantee within 28 days after the Employer issues the completion payment certificate, the Employer shall
return the project price that is withheld as quality deposit; the amount of the guarantee shall not exceed 3% of the total
settlement of the project price.

 

15.3.3
Return of quality deposit

 

During defect liability period, the Contractor
shall earnestly fulfill the responsibilities as stipulated in the contract. After the expiration of the defect liability period,
the Contractor may apply to the Contractor for a refund of the deposit.

 

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Within 14 days after receiving the application
for the deposit return from the Contractor, the Employer shall verify the contract with the Contractor in accordance with
the contract. If there is no objection, the Employer shall return the deposit to the Contractor as agreed. If there is
no agreement on the time limit for deposit return or it is not clearly stipulated in the contract, the Employer shall return
the deposit to the Contractor within 14 days after the verification. If the deposit is not returned within
the time limit, the Employer shall be legally liable for breach of contract. If the Employer fails to respond within 14 days after
receipt of deposit return application from the Contractor, it shall be deemed that the Employer accepts the deposit return application
from the Contractor.

 

If there is any dispute over the reserve and
return of the deposit, and the quality and cost of the project maintenance, the dispute shall be handled in accordance with
Article 20 of this contract regarding disputes and dispute resolution procedures.

 

15.4
Warranty 

 

15.4.1
Warranty liability

 

The warranty period of the project shall start
from the date of project completion acceptance. The warranty period for the specific sub-item projects shall be stipulated by the
parties to the contract in the Special Contract Terms, but shall not be lower than
the statutory minimum warranty period. During the engineering warranty period, the Contractor shall bear the warranty responsibility
in accordance with the relevant laws, regulations and the contract.

 

If the Employer uses the project without prior
inspection and acceptance, the warranty period shall start from the date of transfer.

 

15.4.2 Repair
costs

 

During the warranty period, the repair costs
shall be handled as follows:

 

(1) During
the warranty period, for defects and damage caused by the Contractor, the Contractor shall be responsible for repair
of such defect and damage, and shall take care of the incurred cost, the resulted personal injury as well as property loss;

 

(2)
During the warranty period, for defects and damage caused by improper use of the Employer,
the Contractor can be entrusted for repair; however, the incurred cost shall be borne by the Employer and a reasonable amount
of profit shall be paid to the Contractor;

 

(3) For defects and damage caused by other
reasons, the Contractor can be entrusted for repair. The Employer shall bear the cost of repair and pay the Contractor a reasonable
profit. The responsible party shall bear the personal injury and property loss caused by the defects and damage to the project.

 

15.4.3
Repair notification

 

During the warranty period, if the Employer,
in the middle of use, has identified defects or damage to the accepted project, the Employer shall notify the Contractor in writing
to conduct repair. In the case of urgency when defects and damage have to be repaired promptly, the Employer can verbally notify
the Contractor and confirm in writing within 48 hours after the verbal notification. The
Contractor shall arrive at the construction site within the reasonable period of time as stipulated in the Special
Contract Terms and repair the defects or damage.

 

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15.4.4
Failure to fix

 

In the event that defects or damage is caused
by the Contractor and the Contractor refuses to repair or fails to repair the defects
or damage within a reasonable period of time even after the written notice by the Employer
concerning the repair, the Employer has the right to repair or entrust the third party to repair it. The cost shall
be borne by the Contractor. However, if the scope of repair exceeds the scope of defects or damage, the repair cost of the
out-of-range portion shall be borne by the Employer.

 

15.4.5
Contractor’s right of access

 

During the warranty period, the Contractor
has the right to enter and leave the construction site in order to repair defects or damage. Except for the emergencies
when defects or damage need to be repaired promptly, the Contractor shall notify the Employer 24 hours in advance of
the time of access to repair. The Contractor shall obtain the consent of the Employer before access to construction site,
and shall not affect the normal production and operation on the part of the Employer, and shall comply with the security and confidentiality
requirements of the Employer.

 

16. Breach of contract

 

16.1 Breach of contract by the Employer 

 

16.1.1 Circumstances of breach of contract
for the Employer

 

If any of the following occurs, the Employer
breaches the contract:

 

(1)
Failure to issue notice of commencement within 7 days prior to the planned start date due to the reason attributable
to the Employer;

 

(2) Failure to make the payment as agreed in
the contract due to the reason attributable to the Employer;

 

(3)
The Employer violates the provisions in
Section 10.1 [Scope of change] Clause (2) and implements the cancelled work or transfers it
to others for implementation;

 

(4) The
materials, specifications and quantity or quality of engineering equipment supplied by the Employer do not conform to the stipulation
of the contract, or the delivery date is delayed, or the delivery location is changed due to the reason attributable to
the Employer;

 

(5)
The construction is suspended due to breach of contract by the Contractor;

 

(6)
The Employer fails to issue instruction for resumption of works within the agreed time limit
without proper reasons, resulting in the Contractor being unable to return to work;

 

(7)
The Employer expressly states or indicates through its conduct failure to perform the main
obligations of the contract;

 

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(8)  The Contractor fails to perform other
obligations in accordance with the contract.

 

If the Employer has breach of contract
other than item (7) of this clause, the Contractor may issue a notice to the Employer requesting the Employer to take
effective measures to correct the breach. If the Employer still fails to correct the breach of contract within 28 days after
receiving the notice from the Contractor, the Contractor shall have the right to suspend the construction of the corresponding
part of the project and notify the Supervisor.

 

16.1.2 Liability for breach of contract
for the Employer

 

The Employer shall bear the additional costs
and/or delays caused to the Contractor by breach of contract on the part of the Employer. In addition, the parties to the
contract may separately stipulate the manner to afford the liability and the method of calculation in the Special
Contract Terms.

 

16.1.3 Termination of the contract due to the
Employer’s reason

 

Except as otherwise stipulated in the Special
Contract Terms, if the Employer fails to rectify its violation of the contract after 28 days of the construction suspension
in accordance with Section 16.1.1 [Circumstances of breach by the Employer] by the Contractor and frustrates the
purpose of the contract, the Contractor has the right to terminate the contract, and the Employer shall bear the incurred additional
expenses.

 

16.1.4 Payment after the contract termination
due to the fault of the Contractor

 

The Employer
shall make the following payments and release the performance guarantee within 28 days after the Contractor terminates the contract
in accordance with the article:

 

(1) The payment for the completed work
prior to the contract termination;

 

(2) The price for the materials, engineering
equipment and other items ordered and paid by the Contractor for the construction of the project;

 

(3) The payment the Contractor makes for withdrawal
from the construction site and demobilization of the Contractor’s personnel;

 

(4) Liquidated damages payable before
the contract termination as agreed in the contract;

 

(5) Other
payments due to the Contractor as agreed in the contract;

 

(6)
The quality deposit that should be refunded as agreed in the contract;

 

(7) The
losses caused to the Contractor by the contract termination.

 

If the parties to the contract fail to reach
an agreement in settlement of contract termination, it shall be handled in accordance with section 20 [Dispute Resolution].

 

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The Contractor shall properly carry out the
work of protection and transfer of the completed project and the purchased materials and engineering equipment related to the completed
project, and withdraw the construction equipment and personnel from the construction site. The Employer shall provide the necessary
conditions for the Contractor to make the withdrawal.

 

16.2
Breach of contract by the Contractor

 

16.2.1 Circumstances
of breach of contract by the Contractor

 

If any of the following occurs, the Employer
breaches the contract:

 

(1)
The Contractor subcontracts in violation of the contract or illegally subcontracts;

 

(2)
The Contractor purchases and uses substandard materials and engineering equipment in violation of the contract;

 

(3)
The quality of the project does not meet the contract requirements due to the Contractor’s reasons;

 

(4)
The Contractor violates Section 8.9 [Particular requirements of materials and equipment] and removes without permission the materials
or equipment that have been transported into the site in accordance with the contract;

 

(5)
The Contractor fails to complete the work as stipulated in the contract on time and causes
delay of construction schedule;

 

(6)
The Contractor fails to repair the
engineering defects within a reasonable period of time during the defect
liability period and the warranty period, or refuses to repair in accordance with the requirements of the Employer;

 

(7)
The Contractor expressly states or indicates through its conduct failure to perform the main
obligations of the contract;

 

(8)
The Contractor fails to perform other obligations in accordance with the contract.

 

If the Contractor has breach of contract
other than clause (7), the Supervisor may issue a notice of rectification to the Contractor requesting that the Contractor correct
the breach within the specified time limit.

 

16.2.2 Liability
of the Contractor for breach of contract

 

The Contractor shall bear the increased costs
and/or delays due to its breach of contract. In addition, the parties to the contract may separately stipulate in the Special
Contract Terms the Contractor’s liability in terms of manner to afford the liability and calculation method for breach
of contract.

 

16.2.3
Contract termination due to breach of contract by the Contractor  

 

Except as otherwise stipulated in the special
contract terms, in the case of breach of contract as stipulated in item (7) of Section 16.2.1 [Breach of contract
by the Contractor], or after the issuance of notice by the Supervisor issues, the Contractor still fails to rectify its breach
of contract within the specified reasonable period of time and the purpose of the contract is not fulfilled, the Employer has the
right to terminate the contract. After the contract is terminated, the Employer shall have the right to use on the construction
site the materials, equipment, provisional works, materials of the Contractor and other documents prepared by the Contractor or
in his name due to the need to continue the project. The parties to the contract shall stipulate in the Special
Contract Terms the manner in which the corresponding expenses shall be paid. The continued use by the Employer does
not relieve or reduce the liability of the Contractor for breach of contract.

 

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16.2.4 Treatment
after breach of contract by the Contractor

 

If the contract is terminated due to the fault
of the Contractor, the parties to the contract shall complete estimation, payment and clearing within 28 days after contract termination,
and shall execute as follows:

 

(1) After the termination of the contract,
the contract price corresponding to the actual work completed by the Contractor and the value of the materials, engineering equipment,
construction equipment and provisional works provided by the Contractor shall be agreed and determined in accordance with Section 4.4 [Agreed
or determined];

 

(2) After the contract is terminated, the Contractor
shall pay the liquidated damages;

 

(3) After the contract is terminated, the loss
caused to the Employer due to the termination of the contract;

 

(4) After the termination of the contract,
the Contractor shall complete the cleanup and removal of the construction site in accordance with the instructions of the Employer
and the Supervisor;

 

(5) The Employer and the Contractor shall conduct
clearing after the contract is terminated, issue a final settlement payment certificate, and settle all the funds.  

 

If the contract is terminated due to the fault
of the Contractor, the Contractor has the right to suspend the payment to the Contractor and identify various items of payments
and deducted payments. If the Employer and the Contractor fail to reach an agreement on the clearing and payment after the
termination of the contract, it shall be handled in accordance with Article 20 [Dispute
resolution].

 

16.2.5 Purchase
contract equity transfer

 

If the contract is terminated due to the fault
of the Contractor, the Employer has the right to request the Contractor to transfer the equity of the procurement contract for
the materials and equipment signed by the Contractor to the Employer. The Contractor shall assist the Employer to
reach a transfer agreement with the supplier of the procurement contract within 14 days after receiving the
notice of contract termination. If the Contractor fails to cooperate and causes the losses on the part of the Employer, the Contractor
shall compensate the Employer.

 

16.3 Breach of contract caused by third
parties

 

In the process of implementing the contract,
if one party violates the contract due to a third party, this party shall be liable to
the other party for breach of contract. The dispute between this party and the third party shall be settled in
accordance with the law or the agreement.

 

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17. Force majeure  

 

17.1 Confirmation of force majeure

 

Force majeure refers to natural
disasters and social emergencies that are inevitable and unavoidable in the performance of the contract,
such as earthquakes, tsunamis, plagues, riots, martial law, riots, rebellions, wars and other events as stipulated
in the Special Contract Terms.

 

After the occurrence of force majeure, the
Employer and the Contractor shall collect evidence of and damages caused by force majeure, and estimate resulted losses in a timely
manner. In case of any discrepancy between the parties to the contract as to whether it is force majeure or his own losses,
the Supervisor shall handle in accordance with the provisions in section 4.4 [Agreed or determined]. In the event of a dispute,
it shall be dealt with in accordance with the provisions of Article 20 [Dispute resolution].

 

17.2
Notice of force majeure

 

If either party encounters a force majeure
event that hinders fulfillment of its contractual obligations, the affected party shall immediately notify the other party and
the Supervisor of the contract and explain in written form the details of the force majeure and the resulted impediment, and provide
the necessary proof thereof.

 

If the force majeure persists, the affected
party shall submit an intermediate report illustrating details regarding the force majeure and the resulted impediment. Within
28 days after the event is over, the affected party shall submit a final report and relevant information.

 

17.3
Responsibility of force majeure

 

17.3.1 The
consequences caused by force majeure and the losses incurred shall be borne by the parties to the contract in accordance with the
law and the contract. The project that has been completed prior to the force majeure shall be paid based on quantity as stipulated
in the contract.  

 

17.3.2 The
consequences result from force majeure such as casualties, property loss, expense increase and/or delay of the project shall be
afforded by the parties respectively in accordance with the following principles: 

 

(1) The
Employer shall be responsible for damages to permanent works, materials that have been transported
to the construction site and engineering equipment, as well as casualties and property losses of to third parties;

 

(2) The
Contractor shall bear the losses and damages to his own equipment;

 

(3) Each
party shall be responsible for the casualties and property losses of its own personnel;

 

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(4) If
force majeure hinders the Contractor’s fulfillment of the contractual obligations, and has caused or will cause delay of
the construction, the project schedule shall be extended accordingly. The loss incurred as a result of suspension on the part of
the Contractor shall be reasonably shared by the Employer and the Contractor. The wages of the workers during the suspension shall
be borne by the Contractor;

 

(5) If
a delay in the construction is caused by force majeure and the Employer requests the Contractor to rush the work, the
increased labor costs shall be borne by the Employer;

 

(6) The
Employer shall bear the expenses for the care, cleaning and restoration
of the project in accordance with the requirements of the Contractor during
the period of suspension of work.

 

After
the occurrence of force majeure, the contracting parties shall take measures to avoid and reduce losses from increasing. Any party
that fails to take effective measures resulting in additional losses, that party should be liable for the enlarged
losses.

 

In the
event that force majeure occurs during the delay caused by the contracting party, such contracting party shall not be exempted
from liability for breach of contract.

 

17.4 Termination of the contract due
to force majeure

 

If the
contract cannot be fulfilled for more than 84 consecutive days or more than 140 days in total due
to force majeure, both the Employer and the Contractor have the right to terminate the contract. After the termination of
the contract by both parties, the sum of payment by Employer shall be agreed or determined by the two parties in accordance
with section 4.4 [Agreed or determined], and shall include:

 

(1) The payment for the qualified work part
that the Contractor has completed before the contract is terminated;

 

(2) The
payment for what the Contractor has ordered for the project and has delivered to the Contractor; or the payment for the materials,
engineering equipment and other items that the Contractor has the obligation to accept;

 

(3) The
payment incurred when the Employer requests the Contractor to return or cancel the order, or the cost incurred when
order cannot be returned or the contract is terminated;

 

(4) The
expenses of the Contractor’s evacuation from the construction site and the demobilization of the Contractor’s personnel;

 

(5) Other
payments payable to the Contractor before the contract is terminated in accordance with the contract;

 

(6) Deduct
the amount that the Contractor shall pay to the Employer in accordance with the contract;

 

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(7) Other
payments agreed or determined by both parties.

 

Unless otherwise agreed in terms of the Special
Contract, when the contract terminates, the employer shall complete the payment of the above amount within 28 days after the agreement
or the above payment is determined.

 

18. Insurance

 

18.1 Construction insurance

 

Unless otherwise stipulated in terms of the
Special Contract, the Employer shall insure all risks of the construction project or all risks of the installation project; if
the Employer entrusts the Contractor to insure, the insurance premium and other related expenses incurred by the applicant shall
be covered by the Employer.

 

18.2 Injury insurance

 

18.2.1 The Employer shall insure work-related
injury insurance in accordance with the law, and apply for work-related injury insurance for all employees at the construction
site, pay the work-related injury insurance premium, and require the Supervisor and the third party hired by the Employer to execute
the contract to participate in the work-related injury insurance according to law

 

18.2.2 The
Contractor shall participate in the work-related injury insurance in accordance with the law, and apply for work-related injury
insurance for all employees who execute the contract, pay the work-related injury insurance premium, and require the Contractor
and the third party hired by the Employer to execute the contract to participate in the work-related injury insurance according
to law.

 

18.3 Other insurance

 

The Employer and the Contractor can handle
accidental injury insurance and pay insurance premiums for all personnel on the construction site, including their employees and
the third-party personnel employed to execute the contract. The specific matters are stipulated by the parties to the contract
in terms of the special contract.

 

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Unless otherwise stipulated in terms of the
special contract, the Contractor shall handle property insurance for its construction equipment.

 

18.4 Continuing insurance

 

Contractor should keep in touch with the insurer
so that the insurer can keep abreast of changes in the implementation of the project and ensure that the insurance is covered by
the terms of the insurance contract.

 

18.5 Insurance certificate

 

Contractor shall promptly submit to the other
party a copy of the insurance documents and insurance policies of the insurance they have insured.

 

18.6 Remedies for not to insure as agreed

 

18.6.1 If the Employer fails to apply for insurance
according to the contract, or fails to make the insurance continue to be effective, the Contractor may handle it on his behalf,
and the required expenses shall be borne by the Employer. If the Employer fails to apply for insurance according to the contract,
and fail to obtain full compensation, the Employer shall be responsible for making up the compensation.

 

18.6.2 If the Contractor fails to apply for
insurance according to the contract, or fails to make the insurance continue to be effective, the Employer may handle it on his
behalf, and the necessary expenses shall be borne by the Contractor. If the Contractor fails to handle the insurance as stipulated
in the contract, and the Contractor fails to receive full compensation, the Contractor shall be responsible for making up the compensation.

 

18.7 Notification Obligation

 

Unless otherwise stipulated in the Special
Contract, if the Employer changes the insurance contract other than the work-related injury insurance, it shall obtain the consent
of the Contractor in advance and notify the Supervisor; if the Contractor changes the insurance contract other than the work-related
injury insurance, it shall obtain the consent of the Employer and notify the Supervisor.

 

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When an insurance accident occurs, the insured
shall report to the insurer in time according to the conditions and time limit stipulated in the insurance contract. The Employer
and the Contractor shall notify the other party in time after they know that the insurance accident has occurred.

 

19. Claim

 

19.1 Claim of The Contractor

 

According to the contract, if the Contractor
believes that he has the right to receive additional payment and/or extend the construction period, he shall file a claim with
the Employer according to the following procedures:

 

(1) The Contractor shall, within 28 days after
knowing or should be aware of the occurrence of the claim, submit to the Supervisor a Notice of Intent to Claim and explain the
cause of the claim; if the Contractor fails to issue the Notice of Intent to Claim within the above 28 days, it shall lose the
request for additional payment and /or the right to extend the duration;

 

(2) The Contractor shall formally submit the
claim report to the Supervisor within 28 days after the issuance of the Notice of Intent for Claim; the claim report shall specify
the reasons for the claim and the amount of the additional payment requested, and/or the extended duration, together with the necessary
records and supporting materials;

 

(3) Where the claim has a continuing impact,
the Contractor shall continue to submit a continuation claim notice at reasonable intervals, indicating the actual situation and
records of the continuing impact, and list out the accumulated additional payment amount and/or the extension of the construction
period;

 

(4) Within 28 days after the end of the impact
of the claim, the Contractor shall submit a final claim report to the Supervisor stating the amount of the additional payment for
the final claim and/or the extended duration, with the necessary records and supporting materials.

 

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19.2 Treatment of contractor’s claim

 

The treatment of the Contractor’s claim
is as follows:

 

(1) The Supervisor shall complete the review
and submit it to the Employer within 14 days of receipt of the claim report. If the Supervisor has objections to the claim report,
he has the right to request the Contractor to submit a copy of all the original records;

 

(2) The Employer shall, within 28 days after
the Supervisor receives the claim report or further supporting materials for the claim, issue the claim processing result signed
by the Employer to the Contractor. If the Employer replies overdue, it shall be deemed to recognize the claim of the Contractor;

 

(3) If the Contractor accepts the result of
the claim processing, the claim shall be paid in from the progress payment during the period; if the Contractor does not accept
the result of the claim, it shall be addressed in accordance with Article 20 [Dispute Resolution].

 

19.3 Claim of the Employer

 

According to the contract, if the Employer
believes that he has the right to receive the payment and/or extend the defect liability period, the Supervisor shall issue a notice
to the Contractor with detailed proof.

 

The Employer shall, within 28 days after knowing
or should be aware of the claim event, submit a Notice of Intent to the Contractor through the Supervisor, and the Employer fails
to issue the Notice of Intent of Claim within 28 days, shall lose the amount of claim and/or extend the defect. The right to the
period of responsibility. The Employer shall formally submit a claim report to the Contractor through the Supervisor within 28
days after the release of the Notice of Intent for Claim.

 

19.4 Treatment of the claim of the Employer

 

The treatment of the claimant’s claim
is as follows:

 

(1) After receiving the claim report submitted
by the Employer, the Contractor shall promptly review the contents of the claim report and check the certification materials of
the Employer;

 

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(2) The Contractor shall, within 28 days after
receipt of the claim report or further supporting materials of the claim, reply the result of the claim processing to the Employer.
If the Contractor fails to respond within the above-mentioned time limit, it shall be deemed to be an endorsement of the Employer's
claim.

 

(3) If the Contractor accepts the result of
the settlement of claims, the developer may deduct the amount of compensation or extend the period of liability for defects from
the contract price payable to the Contractor; if the developer does not accept the result of the settlement of claims, it shall
be addressed in accordance with the agreement of Article 20 [Dispute Resolution].

 

19.5 Time limit for filing claims

 

(1) Upon the receipt of the completion payment
certificate by the Contractor in accordance with Article 4.2 [Completion Settlement Audit], it shall be deemed as no right to file
any claim arising prior to the issuance of the Engineering Receive Certificate.

 

(2) The final settlement application form submitted
by the Contractor in accordance with Sub-Section 14.4 [Final Closing] is limited to the claim arising after the issuance of the
Engineering Receiving Certificate. The time limit for filing a claim is terminated when the final settlement certificate is accepted.

 

20. Dispute resolution

 

20.1 Reconciliation

 

Both parties of the contract may settle the
dispute on their own, and if they reach an agreement on their own settlement, they shall sign and seal the contract as a supplementary
document to the contract, and both parties shall comply with it.

 

20.2 Mediation

 

Both parties of the contract may mediate the
construction of the competent administrative department, industry association or other third party for the dispute, and if the
agreement is reached through mediation, both parties shall sign and supplement the contract as a supplementary document to the
contract, and both parties shall comply with it.

 

    	 	82	 

     

    

 

20.3 Dispute review

 

Both parties of the contract stipulate the
Special Contract to adopt a dispute review method to resolve the dispute and the review rules, and execute according to the following
conventions:

 

20.3.1 Determination of the dispute review
panel

 

Both parties of the contract may jointly select
one or three dispute reviewers to form a dispute review panel. Except as otherwise stipulated in the Special Contract terms, both
parties of the contract shall select the dispute reviewer within 28 days after the contract is signed or within 14 days after the
dispute occurs.

 

If a dispute reviewer is selected, it shall
be jointly determined by both parties of the contract; if three dispute reviewers are selected, one of them shall be selected,
and the third member shall be the chief dispute reviewer, which shall be jointly determined by both parties of the contract or
entrusted by both parties of the contract. The third-level chief controversy judge shall be jointly determined by the designated
controversy reviewer or by the accreditation body stipulated in the Special Contract terms.

 

Except as otherwise stipulated in the Special
Contract terms, the assessor's remuneration shall be borne by the Employer and the Contractor.

 

20.3.2 Decision of the Dispute Review Panel

 

Both parties of the contract may jointly submit
any disputes relating to the contract of the Dispute Review Panel for review at any time. The Dispute Review Panel shall adhere
to the principles of objectivity and impartiality, fully listen to the opinions of both parties of the contract, and reach written
decisions within 14 days after receiving the report on the application for dispute review in accordance with relevant laws, norms,
standards, case experiences and business practices, and explain the reasons. Both parties of the contract may separately agree
on this matter in terms of the Special Contract.

 

20.3.3 Effect of the decision of the dispute
review panel

 

The written decision made by the dispute review
panel shall be binding on both parties after being signed and confirmed by both parties of the contract, and both parties shall
comply with it.

 

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If either party does not accept the decision
of the dispute review panel or does not perform the decision of the dispute review panel, both parties may choose to adopt other
dispute resolution methods.

 

20.4 Arbitration or litigation

 

Due to disputes arising from contracts and
contractual matters, both parties of the contract may stipulate one of the following ways to resolve the dispute in terms of the
Special Contract:

 

(1) Apply to the agreed arbitration committee
for arbitration;

 

(2) Prosecuted to a people's court with jurisdiction.

 

20.5 Dispute resolution clause

 

The terms of the contract relating to dispute
settlement exist independently, and the modification, termination, invalidation or withdrawal of the contract does not affect its
effectiveness.

 

21. Supplementary clauses: both parties shall, in accordance with
the relevant laws and administrative regulations, combine the actual conditions of the project and, after consensus, stipulate
in terms of the Special Contract.

 

    	 	84	 

     

    

 

Part III Special contract terms

 

1. General agreement

 

1.1 Word Definition

 

1.1.1 Contract

 

1.1.1.10 Other documents of
the contract include:        N/A            .

 

1.1.2 Contract party and other interested
parties

 

1.1.2.4 The Supervisor:

 

Company name: Beijing Kangdi Construction
Supervision Consulting Co., Ltd.

 

Quality Category
and Level: Class A Housing Construction Project;

 

Telephone: 010-5945528

 

Email: kdgcglb@163.com;

 

Address: 6/F, Building 1, No.
398, Zhongdong Road, East Xiaokou Town, Changping District, Beijing.

 

1.1.2.5 Designer:

 

Company name: China International
Engineering Design & Consult Co. Ltd;

 

Quality Category and Level: Class
A Housing Construction Industry (Construction Project);

 

Telephone: 010-68424905;

 

Email: wkp-2001@163.com;

 

Address:
Huatong
Plaza, A No.19, West Chegongzhuang Road, Haidian District, Beijing.

 

1.1.3 Construction and equipment

 

    	 	85	 

     

    

 

1.1.3.7 Other sites as part of the
construction site include temporary living areas and temporary office areas, production sites and storage sites.

 

1.1.3.9 Permanent occupancy includes
4 factories, 1 equipment room, 1 canteen, 1 dormitory building, 1 production building, 1 garbage house, 1 doorman, outdoor road
floor engineering, indoor and outdoor water supply and drainage power engineering, firefighting and other ancillary facilities.

 

1.1.3.10 Temporary occupancy includes temporary
living area, temporary office area, production site and storage yard.

 

1.3 Law

 

Other normative documents applicable to contracts
include the Contract Law of the People's Republic of China, the Construction Law of the People's Republic of China, the Law
of the People's Republic of China on Tendering and Bidding, the Ministry of Construction of the People's Republic of China and
other relevant ministries and relevant regulations of the relevant administrative departments in Wuqing District of Tianjin City.

 

1.4 Standards and specification

 

1.1.4 Standards and specifications applicable
to engineering include current national, local and industrial norms

 

		1.4.2	The Employer provides the names of foreign standards and norms:           /       ;

 

The number of copies of foreign
standards and norms provided by the Employer:                                                                                                                               /                                                               ;
The Employer provides the names of foreign standards and norms:                          /                         .

 

1.4.3 Special requirements of The Employer
for technical standards and functional requirements of the project:                 /                                                .

 

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1.5 Priority of Contract Documents

 

The composition and priority of contract documents
are as follows:

 

(1) Contract Agreement

 

(2) Notice of successful bidding (if any);

 

(3) Tender letter and its appendix (if any);

 

(4) Terms of the special contract and its annexes;

 

(5) General contract terms;

 

(6) Technical standards and requirements;

 

(7) Drawings;

 

(8) Bills of quantities or budgets of priced
works;

 

(9) Other contract documents.

 

1.6 Drawings and Contractor Documents

 

1.6.1 Provision of drawings

 

Deadline for the Employer to provide
drawings to the Contractor is within 15 days before commencement of construction;

 

The number of drawings provided by the Employer
to the Contractor is six sets of construction drawings (completed drawings are provided separately);

 

The Employer provides the Contractor with the
contents of the drawings include all professional drawings of the project.

 

1.6.4 The Contractor document

 

Documents to be provided by the Contractor
include construction organization design and construction scheme;

 

    	 	87	 

     

    

 

Deadline for the documents provided by the
Contractor is one week after the start of the project;

 

The number of documents provided by the Contractor
is one set;

 

The
documents provided by the Contractor shall be in the form of written submission;

 

Deadline for the issuer to examine and approve
the Employer's documents should be after submission of documents by the Contractor.

 

1.6.5 On-site drawing preparation

 

The agreement on the preparation of site drawings
is that no other use shall be allowed except for this project.

 

1.7 Liaison

 

1.7.1 Within 7 days, the developer
and the Contractor shall deliver the notice, approval, certificate, certificate, instructions, instructions, requirements, requests,
consents, opinions, confirmations and decisions relating to the contract to the other party.

 

1.7.2 The place where the Employer receives
documents is the Employer's on-site office;

 

The recipient designated by the Employer is
Xing Wei;

 

The place where the Contractor Receives Documents
is the Contractor's on-site office;

 

The recipient designated by the Contractor
is Zheng Jiansong;

 

The place where the Supervisor Receive Documents
is the Supervisor's on-site Office

 

The recipient designated by the Supervisor
is Bai Jinhui;

 

    	 	88	 

     

    

 

1.10 Transportation

 

1.10.1 The rights to access the scene

 

Agreement on the rights to enter and leave
the site is that no third-party personnel unrelated to the project shall enter the construction site without the approval of
the issuer or contractor (except the Supervisor).

 

1.10.3 On-site transportation

 

The agreement on the boundary between over-the-counter
transportation and over-the-counter transportation shall be in line with the red line.

 

The agreement that the Employer shall provide
the Contractor with free road and transportation facilities in the construction site to meet the construction needs of the project
to meet the Contractor's requirements of access to water supply, electricity and roads as well as land leveling

 

1.10.4 Transportation of Oversized and Overweight
Parts

 

The temporary reinforcing and renovating expenses
of roads and bridges and other related expenses for transporting super-heavy or super-heavy parts shall be borne by both parties
if otherwise agreed.

 

1.11 Intellectual Property Rights

 

The ownership of the copyright in the drawings
provided by the Employer to the Contractor, the technical specifications compiled or entrusted by the Employer for the implementation
of the project and documents reflecting the requirements of Contract A or other similar nature of the contractor owned by the
Employer

 

Requirements concerning the limitations on
the use of the above documents provided by the Employer is that they can only be used in this project.

 

1.11.2 The ownership of copyright in documents
prepared by the Contractor for the implementation of the project is owned by the Contractor.

 

1.11.4 The approach the Contractor shall bear
the royalties for the use of patents, proprietary technologies and technical secrets used in the construction process: N/A .

 

    	 	89	 

     

    

 

1.13 Correction of Errors in Bill of Quantities

 

Whether to adjust the contract price when the
bill of quantities errors occur and the quantity deviation range that cause such adjustment: Special Contract Terms Section
10.4.1 shall apply.

 

2. The Employer

 

2.2 The representative of The Employer

 

The representative of The Employer:

 

Name: Xing Wei;

 

ID number: * * *;

 

Title: Project Director;

 

Telephone: * * *;

 

Email: weix@jumei.com;

 

Address: No. 43, Guda Road, Jingbin Industrial
Park, Wuqing District, Tianjin.

 

The authorized scope of the Employer representative
is as follows: responsible for supervision and management of the quality, safety, progress and investment of the project site;
responsible for coordinating the related matters of the project construction of the exploration, design, supervision, construction
and other units as well as the relevant government management departments and local related departments; responsible for communication
and coordination between the project site matters and the relevant departments of the company.

 

2.4 Construction Site, Construction Conditions
and Provision of Basic Information

 

2.4.1 Provide construction site

 

Requirements for the deadline for the transfer
of the Employer to the construction site: N/A .

 

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2.4.2 Construction Conditions

 

The Employer shall be responsible for providing
the necessary conditions for the construction, including: in addition to the general terms, the Employer shall also give the position
of the leveling point and coordinate control point to the Contractor in writing.

 

3. The Contractor

 

3.1 General obligations of The Contractor

 

(9) Contents of the completion data
submitted by the Contractor include information on the conditions for commencement, information in the construction process,
and completion plans.

 

The number of completed data sets
to be submitted by the Contractor is two sets.

 

The cost of the completed data submitted
by the Contractor shall be borne by the contractor.

 

Delivery time of completion data
submitted by the Contractor is 7 days before submission of completion report.

 

Formal requirements for completion
documents submitted by the Contractor are paper and stamped.

 

(10) Other obligations to be performed
by the Contractor: N/A.

 

3.2 Project Manager

 

3.2.1 Project Manager:

 

Name: Zheng Jiansong;

 

ID Number: * * *;

 

Construction Qualification Level:
First Class Construction Engineer;

 

Construction
Certificate No.:     浙 133121331611;

 

    	 	91	 

     

    

 

Constructor's
Practice Seal No.: 浙133121331611(00);

 

Qualification
Certificate Number of Safety Production Assessment: 浙建安 B(2014)0990019;

 

Mobile: * * *;

 

Email: udb789120@163.com;

 

Address: _______________;

 

The scope of the Contractor authorization
to the Project Manager is as follows: to perform Contract on behalf of the Contractor; directly responsible for the construction
of the project in each work content, Project Manager in any act of the project directly to the Contractor, the Contractor bears
the corresponding consequences and responsibilities.

 

Project Manager's monthly time requirement
at the construction site should be no less than 23 days a month, special reasons need to be agreed by the Employer.

 

The Contractor’s liability
for breach of contract without submission of labor contract and without payment of social insurance certificate for Project Manager
is to implement of general contract clause;

 

Project Manager is liable for breach
of contract if he leaves the construction site without permission within one day (including one day). The Project Magager will
be fined RMB1,000, and if the circumstances are serious, the Employer may decide to replace Project Manager.

 

3.2.3 The liability for the Contractor
replacing Project Manager's without authorization is that the Employer does not bear the liability for breach of contract, and
the Contractor shall pay a liquidated damages of RMB20,000.

 

3.2.4 The liability for the Contractor
refusing to replace project without fair reasons is that the Employer does not bear the liability for breach of contract, and
the Contractor shall pay a liquidated damages of RMNB10,000.

 

    	 	92	 

     

    

 

3.3 Contractor personnel

 

3.3.1 Deadline for the Contractor
to submit the report of project management organization and construction site management personnel arrangement: the General
Contract Terms shall apply.

 

3.3.3 The liability for the Contractor
refusing to replace main construction management personnel without fair reasons is that the Employer does not bear the liability
for breach of contract, and the Contractor shall pay a liquidated damages of RMB5,000.

 

3.3.4 The approval requirement for
main construction management personnel of the Contractor to leave the construction site: the General Contract Terms shall apply.

 

3.3.5 The liability for the Contractor
replacing main construction management personnel without authorization is that the Employer does not bear the liability for
breach of contract, and the Contractor shall pay the liquidated damages of RMB8,000.

 

The liability for the main construction
management personnel of the Contractor to leave the construction site without permission is that the Employer does not bear
the liability for breach of contract, and the Contractor shall pay the liquidated damages of RMB1,000 for each breach by such personnel.

 

3.5 Sub-contracting

 

3.5.1 General agreement for sub-contracting

 

Prohibited sub-contracting projects
include not to sub contract within the scope of the construction contract without the approval of the Employer.

 

Subject structure, scope of key
work:  N/A.

 

3.5.2 Confirmation of sub-contracting

 

Professional projects that allow
subcontracting include:    N/A.

 

Other agreements on subcontracting:
        N/A.

 

3.5.4: Subcontract
price

 

The agreement on payment of the
subcontract price:         N/A.

 

    	 	93	 

     

    

 

3.6 Engineering Care and Protection
of Finished and Semi-finished Products

 

The starting time of the Contractor
who is responsible for the project and the materials and equipment related to the project is to implement general terms and
conditions.

 

3.7 Performance guarantee

 

If the Contractor provides performance
guarantee: No.

 

The form, amount and duration of
the performance guarantee provided by the Contractor are as follows: N/A.

 

4. The Supervisor

 

4.1 General Regulations of The
Supervisor

 

The Supervisor's supervision content:
1. The Supervisory work of all projects shown in design drawings of ground, foundation, and foundation pit protection (including
earthwork excavation, dewatering), main structure, building roof, water supply, drainage and heating, ventilation and air conditioning,
building electrical outdoor engineering, etc.

 

The Authority of the Supervisor
is that all the Rights granted to the Supervisor by the Contract.

 

The agreement of the Supervisor
on the provision of office and living places and the cost of the construction site is that the client provides the corresponding
personnel, houses, materials, equipment and facilities. The client provides one office room and two accommodation rooms are provided
freely.

 

4.2 The Supervisor

 

Chief engineer for construction
inspection

 

Name: Bai Jinhui

 

Title: Chief engineer for construction
inspection;

 

Engineer for construction inspection
Qualification Certificate Number: 11011984;

 

    	 	94	 

     

    

 

Mobile: * * *;

 

Email: 386702903@qq.com;

 

Address: * * *;

 

Other agreement on the Supervisor:
No.

 

4.4 Negotiation and confirmation

 

When the Employer and the Contractor
are unable to reach an agreement through consultation, the Employer authorizes the Supervisor to determine the following matters:

 

(1) The workload occurring on
site beyond the construction drawings;

 

(2) In case of stoppage of work,
underemployment, natural disasters, etc., confirm the claim in accordance with the laws and regulations of the government;

 

(3) Chief Engineer shall notify
the Employer and the Contractor in writing of the determination, with detailed enclosed. If the party concerned to the contract
have no objection to the determination of the Chief Engineer within 10 days, it shall be carried out in accordance with the determination
of the Chief Engineer. If any party concerned to the contract has any objection, it shall be settled in accordance with the provisions
of Article 20 [Dispute Settlement].

 

5. Construction Quality

 

5.1 Requirement on the quality

 

5.1.1 Special Quality Standards
and Requirements: .

 

The agreement on engineering awards:
.

 

5.3.2 Deadline for the Contractor
to notify the Supervisor in advance of the concealed project inspection: the General Contract Terms shall apply.

 

When the Supervisor fails to carry
out the inspection on time, he shall submit a written extension requirement 24 hours in advance.

 

    	 	95	 

     

    

 

The maximum extension shall not
exceed: 48 hours.

 

6. Safe and civilized construction
and environmental protection

 

6.1 Safe and civilized construction

 

6.1.1 Achieving the Goal of Safety
Production of Projects and the Agreement of Relevant Matters is to implement the Laws, regulations and requirements of local
documents.

 

6.1.4 Special agreement on Security:
/ .

 

Agreement on the preparation of
construction site public security management plan: / .

 

6.1.5 Civilized construction

 

Requirements of Contract Parties
for Civilized Construction: implement General Contract Provisions.

 

6.1.6 The stipulation on the proportion
and deadline of payment for safe and civilized construction fees is the proportion of construction progress shall be paid together
with the progress payment.

 

7. Deadline and progress

 

7.1 Construction Organization
Design

 

7.1.1 Other contents of the construction organization
design agreed by the party concerned to the construction organization design contract include: No.

 

 

7.1.2 Submission and modification of construction organization design

 

Deadline for the Contractor to submit
detailed construction organization design should be within 7 days after the signing of the contract.

 

    	 	96	 

     

    

 

7.2 Construction progress plan

 

7.2.2 Revision of construction schedule

 

Deadline for the Employer and the
Supervisor to confirm or propose amendments upon receipt of the revised construction schedule: the General Contract Terms shall
apply.

 

7.3 Operation

 

7.3.1 Preparation for operation

 

Deadline for the Contractor to submit
the project operation report for review should be within 7 days after signing the contract.

 

Preparations and deadlines for other
start-up work to be completed by the Employer should be 7 days before the start-up date.

 

Preparations and deadlines for other
start-up work to be completed by the Contractor should be 7 days before the start-up date.

 

7.3.2 Notice for operation

 

If the Supervisor fails to issue
a notice of commencement within 90 days of the planned commencement date due to the reasons of the Employer, the Contractor
shall have the right to request price adjustment or terminate the contract.

 

7.4 Measurement Setting-out

 

7.4.1 Deadline for the Employer
to provide the Contractor with measurement datum points, datum lines and datum points and their written information through the
Supervisor: the General Contract Terms shall apply.

 

7.5 Delay in construction 

 

7.5.1 Delays due to the Employer

 

(7) Other cases of delay due to
the reasons of the Employer include if the delay is due to the reasons of the Employer, deadline shall be postponed accordingly.

 

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7.5.2 Delays due to the Contractor

 

Due to the delay caused by the Contractor, the calculation
method of liquidated damages for overdue completion is as follows: for each day of delay, 0.5% of the provisional total price of
the project stipulated in this agreement shall be paid as liquidated damages.

 

The maximum penalty for breach of contract for overdue completion is 1% of the contract price due to the delay caused by
the Contractor.

 

7.6 Adverse material conditions

 

Other circumstances and relevant
agreements that are not conducive to material conditions: the General Contract Terms shall apply.

 

7.7 Abnormally harsh climatic
conditions

 

The Employer and the Contractor
agree that the following conditions are exceptionally bad weather conditions:

 

(1) Continuous heavy rain over
100 mm for two days;

 

(2) Earthquakes of magnitude
5 or above;

 

(3) Hail and floods that have
not occurred for more than 30 years;

 

(4) Gale above grade 10.

 

7.9 Award for early completion

 

7.9.2 Award for early completion
is depending on the actual situation of the Employer.

 

8. Materials and equipment:

 

8.4 Custody and use of materials
and construction equipment

 

8.4.1 Assumption of storage costs
for materials and equipment supplied by the Employer is the cost of procurement and storage services is calculated according
to 3% of the materials and equipment provided by the Employer.

 

8.6 Sample

 

8.6.1 Sample submission and storage

 

Material or engineering equipment
requiring the Contractor to submit sample, type, name, specification and quantity of the sample are random sampling of the main
materials for use only after passing the inspection.

 

    	 	98	 

     

    

 

8.8 Construction equipment and temporary
facilities

 

8.8.1 Construction equipment and
temporary facilities provided by the Contractor.

 

Agreement on the cost of construction
of temporary facilities: to be negotiated.

 

9. Test and Inspection

 

9.1 Testing equipment and personnel

 

9.1.2 Testing equipment

 

Test sites to be allocated in construction
site is to test block maintenance room and pool.

 

Test equipment for construction
site:      /         .

 

Other test conditions required for
construction site:       /              .

 

9.4 On-site process testing

 

Relevant agreements for on-site
process testing:      /        .

 

10. Change

 

10.1 Range of change

 

Agreements on the scope of change
include drawings review, engineering contact sheet, engineering visa, design change sheet and other approval documents of the
Employer.

 

    	 	99	 

     

    

 

10.4 Valuation of change 

 

10.4.1 The principle of the valuation
of change

 

Agreements on change valuation include
increase or decrease of workload settled according to actual accounts. The unit price of engineering alteration shall be recorded
according to the following principles: 1. There is a comprehensive unit price in the contract, and it shall be executed according
to the comprehensive unit price already in the contract; 2. There is an approximate comprehensive unit price in the contract, and
the approximate comprehensive unit price shall be in accordance with the approximate comprehensive unit price; 3. The comprehensive
unit price shall be re-compiled according to the tender caliber if the characteristics of the drawings and the tender list items
are inconsistent; 4. Increases or decreases the price of the material and labor information can also be applied to change content.

 

10.5 The Contractor Rationalization
Suggestions

 

Deadline for the Supervisor to review
the rationalization proposal of the Contractor: the General Contract Terms shall apply.

 

Deadline for the Employer to examine
and approve the rationalization proposal of the Contractor: the General Contract Terms shall apply.

 

The reward and amount of the Contractor
proposed reasonable suggestion to reduce contract price or increase the economic benefits of the project are according to the
actual situation, calculate separately.

 

11. Price adjustment

 

11.1 Adjustments caused by market price fluctuations

 

Whether the market price fluctuations adjust the contract price:
Yes.

 

The contract price is adjusted by market price fluctuations, and
the contract price is adjusted according to the following third way:

 

The first way: use the price index to adjust the price.

 

Conventions for adjustable factors, fixed and variable weights,
and basic price indices and their sources: ________

 

The second way: use the cost information to adjust the price.

 

(2) The agreement on the benchmark price:     /.       

 

    	 	100	 

     

    

 

Special Contract Clause 1: The contractor stated that the unit price
of the material stated in the listed bill of quantities or budget book is lower than the benchmark price: When the unit price increase
of the special contract terms during the performance of the contract exceeds % based on the benchmark price, or when the unit price
decline is more than % based on the unit price list or the unit price stated in the budget book, the excess is adjusted according
to the actual price.

 

Special Contract Clause 2: The unit price of the material stated
by the contractor in the listed price list or budget book is higher than the benchmark price: When the unit price decline of the
material under the contract terms of the special contract terms exceeds % based on the benchmark price, the unit price increase
is more than % when the unit price increase is based on the unit price list or the unit price stated in the budget book.

 

Special Contract Clause 3. The unit price of the material specified
by the contractor in the listed price list or budget book is equal to the unit price of the benchmark: When the unit price increase
or decrease during the contract performance period of the special contract terms exceeds ±3 % based on the benchmark
unit price, the excess is adjusted according to the actual situation.

 

The third way: other price adjustment methods: The material and
labor costs are based on the construction project price of July 2018 in Wuqing District, Tianjin (if Wuqing District has no material
information price, refer to Tianjin and the material information price of each district).

 

The formula for the replenishment of the direct cost of materials:
(the average price of the actual construction period - the benchmark price) * the number of fixed materials

 

The formula for the replenishment of the artificial direct fee:
(the average price of the actual construction period - the benchmark price) * the number of fixed labor

 

The total price of the replenishment materials and labor direct
charges will be entered into the 2016 version of the Tianjin pricing quota, and the fee will be charged according to the bid.

 

    	 	101	 

     

    

 

12. Contract price, measurement and payment

 

12.1 Contract price form

 

1. Unit price contract.

 

The range of risks included in the combined unit price:   /   .

 

The calculation method of risk cost:   /   .

 

Adjustment method for contract price outside the risk range:   /   .

 

2. Total price contract

 

The total price includes a range of risks:   /   .

 

The calculation method of risk cost:   /   .

 

The method of adjusting the contract price outside the risk range:   /   .

 

3. Other price methods:   /   .

 

12.2 Advance payment

 

12.2.1 Payment of advance payment

 

The proportion or amount of prepayment payment: 30% of the tentative
construction cost of the steel structure in the contract, and 10% of the remaining provisional contract cost as the project advance
payment.

 

Prepayment payment period: Within 7 days after the contract is
signed.

 

The method of deducting the advance payment: the advance payment
is deducted in proportion to the progress payment, and the prepayment of the final progress payment must be fully deducted.

 

12.2.2 Advance payment guarantee

 

The term of the contractor’s submission of the advance payment
guarantee:    /   .

 

The form of the advance payment guarantee is:    /   .

 

    	 	102	 

     

    

 

12.3 Measurement

 

12.3.1 Principles of measurement

 

Engineering quantity calculation rules: National Standard of
the People's Republic of China GB50500-2013 Construction Engineering Quantity List Pricing Specification". The amount of earth
and stone works has a construction plan according to the construction plan, and there is no construction plan to calculate the
rule according to the budget.

 

12.3.2 Measurement period

 

Agreement on the measurement cycle: the General Contract Terms
shall apply.

 

12.3.3 Measurement of unit price contract

 

Agreement on the measurement of unit price contracts: the General
Contract Terms shall apply

 

12.3.4 Measurement of the total price contract

 

Agreement on the measurement of total price contracts:   /   .

 

12.3.5 If the total price contract is measured by the payment breakdown
table, it is applicable to the measurement of the provisions of Section 12.3.4 [Measurement of the total price contract]:   /   .

 

12.3.6 Measurement of other price forms of contracts

 

Other forms of pricing and procedures:   /   .

 

12.4 Project progress payment

 

(1) During the course of the project, within 14 days after the engineer
confirms the measurement result, the Contractor shall pay the Contractor's construction cost (progress payment) according to 85%
of the actual completed project volume per month; after the steel structure enters the field and passes the acceptance test, it
pays the construction project quantity and price together with the progress payment.

 

(2) Within 14 days from the date of completion and acceptance of
the project, the Employer shall pay 90% of the cost of the actual completion of the project by the Employer.

 

    	 	103	 

     

    

 

(3) Within 14 days from the date of completion and completion of
the completion settlement procedures, the Employer shall pay 97% of the total settlement cost of the Project.

 

(4) 3% of the total remaining settlement cost is used as the quality
warranty. The Employer shall pay the 3% of the remaining settlement cost within 14 days from the date when the Employer receives
the 3% of the total guarantee price of the project issued by the Contractor. Within 14 days from the start of the quality warranty
period, the Employer will return the Warranty Letter to the Contractor.

 

12.4.1 Payment cycle

 

Agreement on the payment cycle: the General Contract Terms shall
apply.

 

12.4.2 Preparation of Progress Payment Request Form

 

Agreement on the preparation of a progress payment request form:
the General Contract Terms shall apply.

 

12.4.3 Submitting a Progress Payment Request Form

 

(1) Contract for submitting a unit price contract progress payment
application form: the General Contract Terms shall apply.

 

(2) Agreement for the submission of the total price contract progress
payment application form:   /   .

 

(3) Agreement for the submission of progress payment application
forms for other price forms contracts:   /   .

 

12.4.4 Progress Payment Review and Payment

 

(1) The period during which the supervisor reviews and submits the
contractor: the General Contract Terms shall apply

 

The time limit for the issuer to complete the approval and issue
the progress payment certificate: Except as stipulated in the Special Contract Terms, the General Contract Terms shall apply.

 

    	 	104	 

     

    

 

(2) The time limit for the issuer to pay the progress payment: Except
as stipulated in the Special Contract Terms, the General Contract Terms shall apply.

 

The method of calculating the liquidated damages for the overdue
payment of the contractor: the bank loan interest for the same period of payment.

 

12.4.6 Preparation of payment breakdown table

 

2. Preparation and approval of the total price contract payment
breakdown table:    /   .

 

3. Preparation and approval of the payment breakdown table of the
total price of the unit price contract:    /   .

 

13. Acceptance and trial run 

 

13.1 Sub-item project acceptance

 

13.1.2 When the Supervisor fails to accept the inspection on time,
the written extension request shall be submitted 24 hours in advance.

 

The maximum delay may not exceed: 48 hours.

 

13.2 Completion acceptance

 

13.2.2 Completion Acceptance Procedure

 

Agreement on the completion acceptance procedure: the General
Contract Terms shall apply.

 

The method for calculating the liquidated damages for the Employer
to organize the completion acceptance and issue the project acceptance certificate in accordance with this agreement: If the
economic loss caused to the Contractor is borne by the Employer.

 

If the Contractor fails to submit the application for completion
acceptance in time, it shall pay 0.005% of the provisional total price of the project as a penalty for breach of contract for each
delay of one day.

 

13.2.5 Handover and reception of all and part of the project.

 

    	 	105	 

     

    

 

The term of the Contractor’s transfer of the project to the
Employer: the General Contract Terms shall apply.

 

If the Employer fails to accept all or part of the project as stipulated
in this contract, the calculation method of liquidated damages shall be: If the causes economic losses to the Contractor, the loss
shall be borne by the Employer.

 

If the Contractor fails to hand over the project on time, the method
for calculating the liquidated damages shall be: it shall pay 0.005% of the provisional total price of the project as a penalty
for breach of contract for each delay of one day.

 

13.3 Trial Run 

 

13.3.1 Trial Run Procedure

 

Trial run content:    /   .

 

(1) The cost of a single-machine no-load test is assumed by    /   ;

 

(2) The cost of the no-load linkage test is assumed by    /    

 

13.3.3 Feed-test

 

Agreement on matters related to the feed-test     /    

 

13.6 Exit after completion

 

13.6.1 Exit after completion

 

The deadline for the Contractor to complete the completion of the
exit: Receive the notice of the withdrawal of the Employer within 28 days.

 

14. Completion settlement

 

14.1 Application for completion settlement

 

The deadline for the Contractor to submit an application for completion
settlement: the General Contract Terms shall apply.

 

The contents of the completed settlement application form: the
General Contract Terms shall apply

 

    	 	106	 

     

    

 

14.2 Completion Settlement Review

 

The time limit for the Employer to approve the completion payment
application form: the General Contract Terms shall apply.

 

The time limit for the Employer to complete the completion payment:
Except as stipulated in the Special Contract Terms, the General Contract Terms shall apply.

 

Ways and procedures for reviewing the objection to the completion
payment certificate: the General Contract Terms shall apply.

 

14.4 Final settlement

 

14.4.1 Final settlement application form

 

The number of copies of the final settlement application submitted
by the contractor: two copies.

 

The time limit for the contractor to submit the final settlement
application form: the General Contract Terms shall apply.

 

14.4.2 Final settlement certificate and payment

 

(1) The time limit for the Employer to complete the final settlement
application and issue the final settlement certificate: Except as stipulated in the Special Contract Terms, the General Contract
Terms shall apply.

 

(2) The time limit for the Employer to complete the payment: Except
as stipulated in the Special Contract Terms, the General Contract Terms shall apply.

 

15. Defect liability period and warranty

 

15.2 Defect liability period

 

The specific period of the defect liability period: refer to
the Engineering Quality Warranty for details.

 

    	 	107	 

     

    

 

15.3 Quality assurance

 

Agreement on whether to detain the quality deposit: Yes.

 

15.3.1 The manner in which the contractor provides quality assurance

 

The quality assurance deposit is in the first of the following
ways:

 

(1) Guarantee letter of quality guarantee, the guaranteed amount
is: 3% of the contract price;

 

(2)       / % of the contract price;

 

(3) Other methods:       / .

 

15.3.2 Detention of quality deposit

 

The retention of quality deposits takes the following third methods:

 

(1) Deferred deductible when paying the progress of the project.
In this case, the calculation base of the quality deposit does not include the payment, deduction and price adjustment of the advance
payment;

 

(2) Deducting the quality deposit at one time when the project is
completed;

 

(3) Other detention methods: Execute the Special Contract Terms
Section 12.4 (4).

 

Supplementary Agreement on Quality Assurance: None.

 

15.4 Warranty

 

15.4.1 Warranty Liability

 

The engineering warranty period is as follows: Refer to the Engineering
Quality Warranty for details.

 

15.4.3 Repair Notice

 

The reasonable time for the Contractor to receive the warranty notice
and arrive at the project site: Within 24 hours, the maximum time shall not exceed 48 hours.

 

    	 	108	 

     

    

 

16. Default

 

16.1 The Employer defaults

 

16.1.1 The situation in which the Employer defaults

 

Other circumstances in which the Employer defaults: None.

 

16.1.2 Responsibility of the Employer for breach of contract

 

The manner and calculation method of the Employer’s liability
for breach of contract:

 

(1) Failure to file a notice of breach of contract within 7 days
prior to the planned start date due to the Employer: the General Contract Terms shall apply.

 

(2) Failure to pay the contractual price of the contract due to
the Employer: Paying the bank loan interest for the same period of the payable

 

(3) If the Employer violates the provisions of Clause 2 of Section
10.1 [Scope of Change], the liability for breach of contract of self-executed work or transfer to others: the General Contract
Terms shall apply.

 

(4) The materials, engineering equipment specifications, quantity
or quality provided by the Employer are not in compliance with the contract, or the delivery date is delayed or the delivery location
is changed due to the Employer: the General Contract Terms shall apply.

 

(5) Liability for breach of contract due to breach of contract by
the contractor: the General Contract Terms shall apply.

 

(6) The Employer’s failure to return the contractor within
the agreed time limit without a valid reason, resulting in the Employer’s failure to resume work: the General Contract
Terms shall apply.

 

(7) Others: None.

 

    	 	109	 

     

    

 

16.1.3 Termination due to the breach by the Employer

 

The Contractor has the right to terminate the contract if the Employer
fails to correct its breach of contract and causes the contract to be unsuccessful after 28 days after the construction is suspended
due to the Section 16.1.1[The situation in which the Employer defaults].

 

16.2 Contractor default

 

16.2.1 The situation in which the Contractor defaults

 

Other circumstances in which the Contractor defaults: the General
Contract Terms shall apply.

 

16.2.2 Responsibility of the Contractor for breach of contract

 

The contractor’s liability for the breach of contract and
the calculation method: If the contractor has a corresponding breach of contract, the corresponding penalty will be paid according
to the Special Contract Terms.

 

16.2.3 The contract was terminated due to the contractor’s
breach of contract

 

Special agreement on the contractor’s breach of contract to
terminate the contract: the General Contract Terms shall apply.

 

If the Employer continues to use the contractor’s materials,
equipment, temporary works, contractor’s documents and other documents prepared by the Contractor or on its behalf at the
construction site, the cost will be negotiated separately.

 

17. Force majeure

 

17.1 Confirmation of force majeure

 

Other circumstances considered to be force majeure in addition to
the force majeure events stipulated in the general contract terms: None.

 

17.4 Termination of the contract due to force majeure

 

After the contract is terminated, the Employer shall complete the
payment within 28 days after agreeing or determining the amount payable by the Employer.

 

    	 	110	 

     

    

 

18. Insurance

 

18.1 Engineering Insurance

 

Special agreement on engineering insurance: Implemented in accordance
with national regulations.

 

18.3 Other insurance

 

Agreement regarding other insurance:    / .   .

 

Whether the contractor should handle property insurance for its
construction equipment, etc. :    /    .

 

18.7 Notification obligations

 

Agreement on notification obligations when changing insurance contracts:    /    .

 

20. Dispute resolution

 

20.3 Dispute review

 

Whether the parties to the contract agree to submit the engineering
dispute to the Dispute Review Panel for decision: None

 

20.3.1 Determination of the Dispute Review Panel

 

The determination of the members of the dispute review panel:    /    .

 

The deadline for selecting a dispute reviewer:    /    .

 

Remuneration commitment method for members of the dispute review
panel:    /    .

 

Agreement on other matters:    /    .

 

20.3.2 Decision of the Dispute Review Panel

 

The parties to the contract agree on this item:    /    .

 

    	 	111	 

     

    

 

20.4 Arbitration or litigation

 

Disputes arising from contract establishment, content, interpretation,
validity, and breach of contract, dispute resolution clauses and all other matters related to the contract shall be resolved in
the following first manner:

 

(1) Applying for arbitration to the Tianjin Arbitration Commission;

 

(2) Prosecuting in the People's Court of Wuqing District.

 

21. Supplementary terms

 

None

 

    	 	112	 

     

    

 

Annex

 

Annex to the agreement:

 

Attachment 1: List of contractors contracting projects

 

Attachments to the special contract terms:

 

Attachment 2: Engineering Quality Warranty

 

    	 	113	 

     

    

 

Attachment 1: List of contractors contracting projects

 

	
        Unit

        project

        name
	 	
        Construction 

        scale
	 	
        Building 

        area (m2)
	 	
        structure

        type
	 	
        Number

        of

        layers
	 	
        Production 

        capacity
	 	
        Device 

        installation 

        content
	 	
        Tentative 

        contract price 

        (RMB)
	 	
        Date of 

        planned 

        start
	 	
        Date of 

        planned 

        completion

	1# Factory	 	 	 	21662.44	 	Light steel structure	 	1	 	 	 	 	 	44309140	 	18.11.6	 	19.7.4
	2# Factory	 	 	 	21662.44	 	Light steel structure	 	1	 	 	 	 	 	43993661	 	18.12.15	 	19.10.7
	3# Factory	 	 	 	21549.13	 	Light steel structure	 	1	 	 	 	 	 	45649668	 	18.11.23	 	19.9.15
	4# Factory	 	 	 	21549.13	 	Light steel structure	 	1	 	 	 	 	 	43175541	 	19.1.5	 	19.11.5
	5# Equipment room	 	 	 	1698.12	 	Concrete frame structure	 	1	 	 	 	 	 	12176071	 	18.12.23	 	19.7.4
	6# Cafeteria	 	 	 	2794.52	 	Concrete frame structure	 	2	 	 	 	 	 	11012923	 	19.3.15	 	19.11.17
	7# Dormitory Building	 	 	 	4456	 	Concrete frame structure	 	4	 	 	 	 	 	17244142	 	18.12.23	 	19.12.25
	8# Production building	 	 	 	7239.94	 	Concrete frame structure	 	4	 	 	 	 	 	25509720	 	18.12.20	 	20.1.5
	9# Garbage room	 	 	 	53.04	 	Concrete frame structure	 	1	 	 	 	 	 	259732	 	19.6.30	 	19.11.5
	10#Guard room 1	 	 	 	100	 	Concrete frame structure	 	1	 	 	 	 	 	1298065	 	19.6.30	 	19.11.5
	Outdoor Project	 	 	 	 	 	 	 	 	 	 	 	 	 	36486905	 	19.8.26	 	20..2.5

 

    	 	114	 

     

    

 

Attachment 2:

 

Engineering Quality Warranty

 

Employer (full name): Tianjin Dairui Technology Co., Ltd.

 

Contractor (full name): Zhejiang Dajing Construction Group
Co., Ltd

 

According to the "Building Law of the People's Republic of
China" and the "Regulations on the Quality Management of Construction Projects", the Employer and the Contractor
signed a project quality warranty for the construction of an annual output of 14.4 million garments (the full name of the project)
by Tianjin Dairui Technology Co., Ltd. .

 

I Scope and content of the engineering quality warranty

 

Under the quality warranty period, the contractor shall bear the
responsibility for the project quality warranty in accordance with the relevant legal provisions and contractual agreements.

 

The scope of quality warranty includes foundation engineering, main
structural engineering, roofing waterproofing engineering, bathroom with waterproof requirements, leakage prevention of room and
exterior wall, heating and cooling system, electrical pipeline, water supply and drainage pipeline, equipment installation and
decoration and other projects agreed by both parties. The contents of the specific warranty are as follows:

 

Executed in accordance with design documents and relevant national
and local standards

 

II Quality warranty period

 

According to the "Regulations on Quality Management of Construction
Projects" and related regulations, the quality warranty period of the project is as follows:

 

1. The ground-based engineering and main structural engineering
are the reasonable years of use of the project as specified in the design documents;

 

2. The roof waterproofing project, the waterproofing requirements
of the bathroom, the room and the external wall are impervious for 5 years;

 

    	 	115	 

     

    

 

3. The decoration project is 2 years;

 

4. The installation of electrical pipelines, water supply and drainage
pipelines and equipment is 2 years;

 

5. The heating and cooling system is 2 heating periods and
cooling periods;

 

6. The supporting works for water supply and drainage facilities
and roads in residential quarters are 2 years;

 

7. Other project warranty terms are as follows:

 

Execute according to national and local regulations.

 

The quality warranty period shall be calculated from the date of
acceptance of the project completion acceptance.

 

III Defect liability period

 

The liability period of the engineering defect is 24 months,
and the defect liability period is calculated from the date when the project passes the completion acceptance. The unit project
shall be checked and accepted before all the projects, and the liability period of the unit project shall be counted from the date
of acceptance of the unit project.

 

After the termination of the defect liability period, the Employer
shall refund the remaining quality deposit.

 

IV Responsibility for quality warranty

 

1. For items that fall within the scope and content of the warranty,
the Contractor shall send a warranty within 7 days from the date of receipt of the warranty notice. If the Contractor does not
pay the warranty within the agreed time limit, the Employer may entrust others to repair it.

 

2. If an emergency needs to be repaired, the contractor shall arrive
at the scene of the accident immediately after receiving the notice of the accident.

 

    	 	116	 

     

    

 

3. For quality problems involving structural safety, according to
the Regulations on Quality Management of Construction Projects, local construction administrative departments and relevant departments
shall be immediately reported to take safety precautions. At the same time, the original designer or designer with corresponding
qualification level shall put forward the warranty scheme, and the Contractor shall implement the warranty.

 

4. After the quality warranty is completed, the Employer will organize
the acceptance.

 

V Warranty fee

 

The cost of warranty shall be borne by the party responsible for
the quality defect.

 

VI Other engineering quality warranty items agreed by both parties:
The Contractor provides a warranty guarantee letter of 3% of the total settlement price of the project issued by the bank. Within
14 days from the date of completion of the quality warranty period, the Employer shall return the warranty guarantee letter to
the Contractor.

 

The project quality warranty shall be signed by the Contractor and
the Employer before the completion of the project, as an attachment to the construction contract, and the validity period will
expire until the warranty expires.

 

	Employer (seal): /s/ Seal of Tianjin Dairui Technology Co., Ltd.	 	Contractor (seal): /s/
    Seal of Zhejiang Dajing Construction Group Co., Ltd.
	Address: East side of Guda Road,

Jingbin Industrial Park, Wuqing

District, Tianjin   	 	Address: No. 8 Dongfang Avenue,

Linhai City, Zhejiang Province
	Legal representative (Signature): Chen Ou	 	Legal representative (Signature): Feng Jinrong
	Authorized Agent (Signature): Xing Wei	 	Authorized Agent (Signature):      
	/s/ Seal of Ou Chen	 	/s/ Seal of Jinrong Feng
	Telephone number: * * *	 	Telephone number: 0576-85382222
	Fax:           	 	Fax:  0576-85382200
	E-mail:  weix@jumei.com	 	E-mail:  djzhenhai@163.com
	Bank of deposit:  China Construction Bank Co., Ltd.

        Beijing Life Park Sub-branch
	 	Bank of deposit:  Linhai Branch of

China Construction Bank
	Account number:  * * *	 	Account number:  * * *
	Postal code:        	 	Postal code:   317000

 

    	 	117Wells Fargo & Company 8-K

Exhibit
4.1

 

[Face
of Note]

 

Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

 

	CUSIP NO. 95001H4G3	FACE AMOUNT:
    $________
	REGISTERED NO. ___	 

 

WELLS
FARGO FINANCE LLC

 

MEDIUM-TERM
NOTE, SERIES A

Fully
and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal
at Risk Securities Linked to the Lowest Performing of

the Russell 2000® Index and the EURO STOXX 50®
Index due May 4, 2029

 

WELLS
FARGO FINANCE LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (hereinafter
called the “Company,” which term includes any successor corporation under and as defined in the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity
Payment Amount (as defined below) on the Stated Maturity Date (as defined below), unless this Security is automatically called
prior to the Stated Maturity Date as provided below under “Automatic Call,” and to pay Contingent Coupon Payments
(as defined below) on the Face Amount of this Security to the extent provided herein on the Contingent Coupon Payment Dates specified
herein at the Contingent Coupon Rate (as defined below) until the earlier of the Stated Maturity Date and the Call Settlement
Date (as defined below), if any. The “Initial Stated Maturity Date” shall be May 4, 2029. If the Final Calculation
Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.”
If the Final Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial
Stated Maturity Date and (ii) three Business Days (as defined below) after the last Final Calculation Day as postponed.

 

“Face
Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its
“Face Amount.”

 

Automatic
Call

 

If
the Closing Level (as defined below) of the Lowest Performing Index (as defined below) on any of the quarterly Calculation Days
(as defined below) from May 2020 to February 2029, inclusive, is greater than or equal to its Starting Level (as defined below),
this Security will be automatically called by the Company, and on the related Call Settlement Date the Holder hereof

 

     

     

    

 

will receive
the Call Price (as defined below) plus a final Contingent Coupon Payment. Unless the Company defaults in the payment of the Call
Price plus the final Contingent Coupon Payment, this Security will cease to be outstanding on such Call Settlement Date, no additional
Contingent Coupon Payments will be payable on this Security and the Holder hereof will have no further rights under this Security
after such Call Settlement Date. The Holder hereof will not receive any notice from the Company in the event this Security is
automatically called pursuant to the terms hereof. The “Call Price” is equal to the Face Amount of this Security.
The “Call Settlement Date” for a Calculation Day shall be three Business Days after such Calculation Day, as
such Calculation Day may be postponed as provided herein. If a Calculation Day is postponed with respect to one or both Indices,
the related Call Settlement Date will be three Business Days after the last Calculation Day as postponed.

 

Payment
of Contingent Coupon Payments, the Maturity Payment Amount and the Call Price

 

On
each quarterly Contingent Coupon Payment Date, the Company shall pay a Contingent Coupon Payment if, and only if, the Closing
Level of the Lowest Performing Index on the related Calculation Day is greater than or equal to its Coupon Threshold Level (as
defined below). A “Contingent Coupon Payment,” if payable as provided herein, shall be equal to (i) the product
of the Face Amount of this Security and the Contingent Coupon Rate, (ii) divided by 4. The “Contingent Coupon Payment
Dates” shall be the third Business Day following each Calculation Day, as each such Calculation Day may be postponed
as herein provided, provided that the Contingent Coupon Payment Date with respect to the Final Calculation Day will be the Stated
Maturity Date. If a Calculation Day is postponed with respect to one or both Indices, the related Contingent Coupon Payment Date
will be three Business Days after the last Calculation Day as postponed. The “Contingent Coupon Rate” is 8.50%
per annum. Any Contingent Coupon Payments will be rounded to the nearest cent, with one-half cent rounded upward. If a Contingent
Coupon Payment Date is postponed, the Contingent Coupon Payment, if any, due on that Contingent Coupon Payment Date will be made
on that Contingent Coupon Payment Date as so postponed with the same force and effect as if it had been made on the originally
scheduled Contingent Coupon Payment Date, with no additional amount accruing or payable as a result of the postponement.

 

Any
Contingent Coupon Payment so payable, and punctually paid or duly provided for, on any Contingent Coupon Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such Contingent Coupon Payment next preceding such Contingent Coupon Payment
Date. The Regular Record Date for a Contingent Coupon Payment Date shall be the date one Business Day prior to such Contingent
Coupon Payment Date.

 

Any
Contingent Coupon Payment not punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities
of this series

 

    2 

     

    

 

may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

 

Payment
of any Contingent Coupon Payment on this Security will be made in immediately available funds at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota; provided, however, that, at the option of the Company, payment
of any Contingent Coupon Payment may be paid by check mailed to the Person entitled thereto at such Person’s last address
as it appears in the Security Register or by wire transfer to such account as may have been designated by such Person. Payments
of any Contingent Coupon Payment and the Maturity Payment Amount or the Call Price, as applicable, on this Security at Maturity
will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City
of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. Notwithstanding the foregoing,
for so long as this Security is a Global Security registered in the name of the Depositary, any payments on this Security will
be made to the Depositary by wire transfer of immediately available funds.

 

Payment
of the Maturity Payment Amount or the Call Price, as applicable, and any Contingent Coupon Payments on this Security will be made
in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts.

 

Definitions
Relating to Maturity Payment Amount, the Call Price and Contingent Coupon Payments

 

If
this Security is not automatically called prior to the Stated Maturity Date as provided above under “Automatic Call,”
the “Maturity Payment Amount” of this Security will equal:

 

		•	if
                                         the Ending Level of the Lowest Performing Index on the Final Calculation Day (as defined
                                         below) is greater than or equal to its Downside Threshold Level: the Face Amount; or

 

		•	if
                                         the Ending Level of the Lowest Performing Index on the Final Calculation Day is less
                                         than its Downside Threshold Level:

  

	 	 	Face
    Amount x	 	Performance
                                         Factor of the Lowest Performing

        Index
        on the Final Calculation Day
	 	 

 

 

All
calculations with respect to the Maturity Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths
rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent,
with one-half cent rounded upward.

 

“Index”
shall mean each of the Russell 2000 Index and the EURO STOXX 50 Index.

 

The
“Pricing Date” shall mean April 25, 2019.

 

    3 

     

    

 

The
“Lowest Performing Index” for any Calculation Day will be the Index with the lowest Performance Factor on that
Calculation Day (as such Calculation Day may be postponed for one or both Indices as provided herein).

 

The
“Performance Factor” with respect to an Index on any Calculation Day is its Closing Level on such Calculation
Day divided by its Starting Level (expressed as a percentage).

 

The
“Starting Level” with respect to the Russell 2000 Index is 1575.612, its Closing Level on the Pricing Date,
and with respect to the EURO STOXX 50 Index is 3491.92, its Closing Level on the Pricing Date.

 

The
“Ending Level” of an Index will be its Closing Level on the Final Calculation Day.

 

The
“Coupon Threshold Level” with respect to the Russell 2000 Index is 1181.709, which is equal to 75% of its Starting
Level, and with respect to the EURO STOXX 50 Index is 2618.94, which is equal to 75% of its Starting Level.

 

The
“Downside Threshold Level” with respect to the Russell 2000 Index is 945.3672, which is equal to 60% of its
Starting Level, and with respect to the EURO STOXX 50 Index is 2095.152, which is equal to 60% of its Starting Level.

 

The
“Closing Level” with respect to each Index on any Trading Day means the official closing level of that Index
reported by the relevant Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the
licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the
decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to
the provisions set forth below under “—Market Disruption Events,” “—Adjustments to an Index”
and “—Discontinuance of an Index.”

 

“Index
Sponsor” shall mean the sponsor or publisher of an Index.

 

“Business
Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or regulation to close in New York, New York.

 

The
“Calculation Days” shall be the 1st day of each February, May, August and November commencing August
2019 and ending February 2029, and the Final Calculation Day. If any such day is not a Trading Day with respect to either Index,
such Calculation Day for each Index will be postponed to the next succeeding day that is a Trading Day with respect to each Index.
A Calculation Day for an Index is also subject to postponement due to the occurrence of a Market Disruption Event (as defined
below) with respect to such Index on such Calculation Day. The “Final Calculation Day” is May 1, 2029. If a
Market Disruption Event occurs or is continuing with respect to an Index on any Calculation Day, then such Calculation Day for
such Index will be postponed to the first succeeding Trading Day for such Index on which a Market Disruption Event for such Index
has not occurred and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading
Day for such Index after the originally scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation
Day for such Index. If a Calculation Day has been postponed eight Trading Days for

 

    4 

     

    

 

an Index after the originally scheduled Calculation
Day and a Market Disruption Event occurs or is continuing with respect to such Index on such eighth Trading Day, the Calculation
Agent will determine the Closing Level of such Index on such eighth Trading Day in accordance with the formula for and method
of calculating the Closing Level of such Index last in effect prior to commencement of the Market Disruption Event, using the
closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such security,
its good faith estimate of the value of such security at (i) with respect to the Russell 2000 Index, the Scheduled Closing Time
of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such
Relevant Stock Exchange or (ii) with respect to the EURO STOXX 50 Index, the time at which the official Closing Level of such
Index is calculated and published by the relevant Index Sponsor) on such date of each security included in such Index. As used
herein, “closing price” means, with respect to any security on any date, the Relevant Stock Exchange traded
or quoted price of such security as of (i) with respect to the Russell 2000 Index, the Scheduled Closing Time of the Relevant
Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock
Exchange or (ii) with respect to the EURO STOXX 50 Index, the time at which the official Closing Level of such Index is calculated
and published by the relevant Index Sponsor. Notwithstanding the postponement of a Calculation Day for one Index due to a Market
Disruption Event with respect to such Index on such Calculation Day, the originally scheduled Calculation Day will remain the
Calculation Day for the other Index if such other Index is not affected by a Market Disruption Event on such day.

 

“Calculation
Agent Agreement” shall mean the Calculation Agent Agreement dated as of May 18, 2018 between the Company and the Calculation
Agent, as amended from time to time.

 

“Calculation
Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among
other things, the determination of whether this Security will be automatically called prior to stated maturity and whether a Contingent
Coupon Payment will be made, the Call Price, if any, and the Maturity Payment Amount, if any, which term shall, unless the context
otherwise requires, include its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells
Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from
time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying
the Holder of this Security.

 

Certain
Definitions 

 

A
“Trading Day” with respect to the Russell 2000 Index means a day, as determined by the Calculation Agent, on
which (i) the Relevant Stock Exchanges with respect to each security underlying the Russell 2000 Index are scheduled to be open
for trading for their respective regular trading sessions and (ii) each Related Futures or Options Exchange with respect to the
Russell 2000 Index is scheduled to be open for trading for its regular trading session.

 

A
“Trading Day” with respect to the EURO STOXX 50 Index means a day, as determined by the Calculation Agent,
on which (i) the relevant Index Sponsor is scheduled to publish the level of the EURO STOXX 50 Index and (ii) each Related Futures
or Options

 

    5 

     

    

 

Exchange with respect to the EURO STOXX 50 Index is scheduled to be open for trading for its regular trading session.

 

The
“Relevant Stock Exchange” for any security underlying an Index means the primary exchange or quotation system
on which such security is traded, as determined by the Calculation Agent.

 

The
“Related Futures or Options Exchange” for an Index means an exchange or quotation system where trading has
a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to
such Index.

 

Adjustments
to an Index

 

If
at any time the method of calculating an Index or a Successor Equity Index, or the closing level thereof, is changed in a material
respect, or if an Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of
the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the Calculation
Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to be calculated,
make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive
at a level of an index comparable to such Index or Successor Equity Index as if those changes or modifications had not been made,
and the Calculation Agent will calculate the closing level of such Index or Successor Equity Index with reference to such index,
as so adjusted. Accordingly, if the method of calculating an Index or Successor Equity Index is modified so that the level of
such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or
reverse split in such equity index), then the Calculation Agent will adjust such Index or Successor Equity Index in order to arrive
at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not occurred).

 

Discontinuance
of an Index

 

If
an Index Sponsor discontinues publication of an Index, and such Index Sponsor or another entity publishes a successor or substitute
equity index that the Calculation Agent determines, in its sole discretion, to be comparable to such Index (a “Successor
Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company,
the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity
for purposes of calculating the Closing Level of such Index on any date of determination. Upon any selection by the Calculation
Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security.

 

In
the event that an Index Sponsor discontinues publication of an Index prior to, and the discontinuance is continuing on, a Calculation
Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will
calculate a substitute Closing Level for such Index in accordance with the formula for and method of calculating such Index last
in effect prior to the discontinuance, but using only those securities that comprised such Index immediately prior to that discontinuance.
If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for such Index, the Successor
Equity

 

    6 

     

    

 

Index or level will be used as a substitute for such Index for all purposes, including the purpose of determining whether
a Market Disruption Event exists.

 

If
on a Calculation Day an Index Sponsor fails to calculate and announce the level of an Index, the Calculation Agent will calculate
a substitute Closing Level of such Index in accordance with the formula for and method of calculating such Index last in effect
prior to the failure, but using only those securities that comprised such Index immediately prior to that failure; provided
that, if a Market Disruption Event occurs or is continuing on such day with respect to such Index, then the provisions set
forth above under the definition of “Calculation Days” shall apply in lieu of the foregoing.

 

Market
Disruption Events 

 

A
“Market Disruption Event” with respect to the Russell 2000 Index means any of the following events as determined
by the Calculation Agent in its sole discretion:

 

		(A)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by the Relevant Stock Exchanges or otherwise relating to securities which then comprise
                                         20% or more of the level of such Index or any Successor Equity Index at any time during
                                         the one-hour period that ends at the Close of Trading on that day, whether by reason
                                         of movements in price exceeding limits permitted by those Relevant Stock Exchanges or
                                         otherwise.

 

		(B)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by any Related Futures or Options Exchange or otherwise in futures or options contracts
                                         relating to such Index or any Successor Equity Index on any Related Futures or Options
                                         Exchange at any time during the one-hour period that ends at the Close of Trading on
                                         that day, whether by reason of movements in price exceeding limits permitted by the Related
                                         Futures or Options Exchange or otherwise.

 

		(C)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, securities that then comprise 20% or more of the level of such
                                         Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during
                                         the one-hour period that ends at the Close of Trading on that day.

 

		(D)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, futures or options contracts relating to such Index or any
                                         Successor Equity Index on any Related Futures or Options Exchange at any time during
                                         the one-hour period that ends at the Close of Trading on that day.

 

		(E)	The
                                         closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities
                                         that then comprise 20% or more of the level of such Index or any 

 

    7 

     

    

 

Successor
Equity Index are traded or any Related Futures or Options Exchange with respect to such Index or any Successor Equity Index prior
to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related Futures or
Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular trading
session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline
for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution
at such actual closing time on that day.

 

		(F)	The
                                         Relevant Stock Exchange for any security underlying such Index or Successor Equity Index
                                         or any Related Futures or Options Exchange with respect to such Index or Successor Equity
                                         Index fails to open for trading during its regular trading session.

 

For
purposes of determining whether a Market Disruption Event has occurred with respect to the Russell 2000 Index:

 

		(1)	the
                                         relevant percentage contribution of a security to the level of such Index or any Successor
                                         Equity Index will be based on a comparison of (x) the portion of the level of such Index
                                         attributable to that security and (y) the overall level of such Index or Successor Equity
                                         Index, in each case immediately before the occurrence of the Market Disruption Event;

 

		(2)	the
                                         “Close of Trading” on any Trading Day for such Index or any Successor
                                         Equity Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect
                                         to the securities underlying such Index or Successor Equity Index on such Trading Day;
                                         provided that, if the actual closing time of the regular trading session of any such
                                         Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day,
                                         then (x) for purposes of clauses (A) and (C) of the definition of “Market Disruption
                                         Event” above, with respect to any security underlying such Index or Successor Equity
                                         Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close
                                         of Trading” means such actual closing time and (y) for purposes of clauses (B)
                                         and (D) of the definition of “Market Disruption Event” above, with respect
                                         to any futures or options contract relating to such Index or Successor Equity Index,
                                         the “Close of Trading” means the latest actual closing time of the regular
                                         trading session of any of the Relevant Stock Exchanges, but in no event later than the
                                         Scheduled Closing Time of the Relevant Stock Exchanges;

 

		(3)	the
                                         “Scheduled Closing Time” of any Relevant Stock Exchange or Related
                                         Futures or Options Exchange on any Trading Day for such Index or any Successor Equity
                                         Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related
                                         Futures or Options Exchange on such Trading Day, without regard to after hours or any
                                         other trading outside the regular trading session hours; and

 

		(4)	an
                                         “Exchange Business Day” means any Trading Day for such Index or any
                                         Successor Equity Index on which each Relevant Stock Exchange for the securities underlying 

 

    8 

     

    

 

such
Index or any Successor Equity Index and each Related Futures or Options Exchange with respect to such Index or any Successor Equity
Index are open for trading during their respective regular trading sessions, notwithstanding any such Relevant Stock Exchange
or Related Futures or Options Exchange closing prior to its Scheduled Closing Time.

 

A
“Market Disruption Event” with respect to the EURO STOXX 50 Index means any of (A), (B), (C) or (D) below,
as determined by the Calculation Agent in its sole discretion:

 

		(A)	Any
                                         of the following events occurs or exists with respect to any security included in such
                                         Index or any Successor Equity Index, and the aggregate of all securities included in
                                         such Index or Successor Equity Index with respect to which any such event occurs comprise
                                         20% or more of the level of such Index or Successor Equity Index;

 

		●	a
                                         material suspension of or limitation imposed on trading by the Relevant Stock Exchange
                                         for such security or otherwise at any time during the one-hour period that ends at the
                                         Scheduled Closing Time for the Relevant Stock Exchange for such security on that day,
                                         whether by reason of movements in price exceeding limits permitted by the Relevant Stock
                                         Exchange or otherwise;

 

		●	any
                                         event, other than an early closure, that materially disrupts or impairs the ability of
                                         market participants in general to effect transactions in, or obtain market values for,
                                         such security on its Relevant Stock Exchange at any time during the one-hour period that
                                         ends at the Scheduled Closing Time for the Relevant Stock Exchange for such security
                                         on that day; or

 

		●	the
                                         closure on any Exchange Business Day of the Relevant Stock Exchange for such security
                                         prior to its Scheduled Closing Time unless the earlier closing is announced by such Relevant
                                         Stock Exchange at least one hour prior to the earlier of (i) the actual closing time
                                         for the regular trading session on such Relevant Stock Exchange and (ii) the submission
                                         deadline for orders to be entered into the Relevant Stock Exchange system for execution
                                         at the Scheduled Closing Time for such Relevant Stock Exchange on that day.

 

		(B)	Any
                                         of the following events occurs or exists with respect to futures or options contracts
                                         relating to such Index or any Successor Equity Index:

 

		●	a
                                         material suspension of or limitation imposed on trading by any Related Futures or Options
                                         Exchange or otherwise at any time during the one-hour period that ends at the close of
                                         trading on such Related Futures or Options Exchange on that day, whether by reason of
                                         movements in price exceeding limits permitted by the Related Futures or Options Exchange
                                         or otherwise;

 

		●	any
                                         event, other than an early closure, that materially disrupts or impairs the ability of
                                         market participants in general to effect transactions in, or obtain 

 

    9 

     

    

 

market
values for, futures or options contracts relating to such Index or Successor Equity Index on any Related Futures or Options Exchange
at any time during the one-hour period that ends at the close of trading on such Related Futures or Options Exchange on that day;
or

 

		●	the
                                         closure on any Exchange Business Day of any Related Futures or Options Exchange prior
                                         to its Scheduled Closing Time unless the earlier closing time is announced by such Related
                                         Futures or Options Exchange at least one hour prior to the earlier of (i) the actual
                                         closing time for the regular trading session on such Related Futures or Options Exchange
                                         and (ii) the submission deadline for orders to be entered into the Related Futures or
                                         Options Exchange system for execution at the close of trading for such Related Futures
                                         or Options Exchange on that day.

 

		(C)	The
                                         relevant Index Sponsor fails to publish the level of such Index or any Successor Equity
                                         Index (other than as a result of the relevant Index Sponsor having discontinued publication
                                         of such Index or Successor Equity Index and no Successor Equity Index being available).

 

		(D)	Any
                                         Related Futures or Options Exchange fails to open for trading during its regular trading
                                         session.

 

For
purposes of determining whether a Market Disruption Event has occurred with respect to the EURO STOXX 50 Index:

 

		(1)	the
                                         relevant percentage contribution of a security included in such Index or any Successor
                                         Equity Index to the level of such Index will be based on a comparison of (x) the portion
                                         of the level of such index attributable to that security to (y) the overall level of
                                         such index, in each case using the official opening weightings as published by the relevant
                                         Index Sponsor as part of the market opening data;

 

		(2)	the
                                         “Scheduled Closing Time” of any Relevant Stock Exchange or Related
                                         Futures or Options Exchange on any Trading Day means the scheduled weekday closing time
                                         of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading
                                         Day, without regard to after hours or any other trading outside the regular trading session
                                         hours; and

 

		(3)	an
                                         “Exchange Business Day” means any Trading Day on which (i) the relevant
                                         Index Sponsor publishes the level of such Index or any Successor Equity Index and (ii)
                                         each Related Futures or Options Exchange is open for trading during its regular trading
                                         session, notwithstanding any Related Futures or Options Exchange closing prior to its
                                         Scheduled Closing Time.

 

Calculation
Agent

 

The
Calculation Agent will determine whether this Security will be automatically called prior to stated maturity and whether a Contingent
Coupon Payment will be made, the Call Price, if any, and the Maturity Payment Amount, if any. In addition, the Calculation Agent
will

 

    10 

     

    

 

(i) determine if adjustments are required to the Closing Level of an Index under the circumstances described in this Security,
(ii) if publication of an Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available,
determine the Closing Level of such Index under the circumstances described in this Security, and (iii) determine whether a Market
Disruption Event has occurred.

 

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to this Security.

 

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

 

Redemption
and Repayment

 

This
Security is not subject to repayment at the option of the Holder hereof prior to May 4, 2029. Except as set forth above under
“Automatic Call,” this Security is not subject to redemption prior to May 4, 2029. This Security is not entitled to
any sinking fund.

 

Acceleration

 

If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment
Amount (calculated as set forth in the next two sentences) of this Security may be declared due and payable in the manner and
with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture
will be equal to the Maturity Payment Amount hereof calculated as provided herein, plus a portion of a final Contingent Coupon
Payment, if any. The Maturity Payment Amount and any final Contingent Coupon Payment will be calculated as though the date of
acceleration were the Final Calculation Day. The final Contingent Coupon Payment, if any, will be prorated from and including
the immediately preceding Contingent Coupon Payment Date to but excluding the date of acceleration.

 

 

 

Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

 

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature
or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    11 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

DATED:

 

	 	WELLS FARGO FINANCE LLC
	 	 	 
	 	By:	 
	 	 	 
	 	 	Its:

 

	 	Attest:	 
	 	 	 
	 	 	Its:

 

	TRUSTEE’S
    CERTIFICATE OF AUTHENTICATION This is one of the Securities of the series designated therein described in the within-mentioned
    Indenture.	 
	 	 	 
	CITIBANK,
    N.A.,	 
	 	as Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 
	 	 	 
	 	OR	 
	 	 	 
	WELLS FARGO
    BANK, N.A.,	 
	as Authenticating Agent for the Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 

 

    12 

     

    

 

[Reverse
of Note]

 

WELLS
FARGO FINANCE LLC

 

MEDIUM-TERM
NOTE, SERIES A

Fully
and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal
at Risk Securities Linked to the Lowest Performing of the Russell 2000® Index

and the EURO STOXX 50® Index due May 4, 2029

 

This
Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an indenture dated as of April 25, 2018, as amended or supplemented from time to
time (herein called the “Indenture”), among the Company, as issuer, Wells Fargo & Company, as guarantor
(the “Guarantor”) and Citibank, N.A., as trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor,
the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series of the Securities designated as Medium-Term Notes, Series A, of the Company. The
amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity-
or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic or financial
performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed
rate or a floating rate. The Securities of this series may mature at different times, be redeemable at different times or not
at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

 

The
Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented by one
or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued
to and registered in the names of, the beneficial owners or their nominees.

 

The
Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security.

 

Guarantee

 

The
Securities of this series are fully and unconditionally guaranteed by the Guarantor as and to the extent set forth in the Indenture.

 

Modification
and Waivers 

 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the Guarantor and the rights of the Holders of the Securities of each series to be affected under the Indenture
at any time by the

 

    13 

     

    

 

Company, the Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of
the Securities at the time Outstanding of all series to be affected, acting together as a class. The Indenture also contains provisions
permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain
provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance
by the Company or the Guarantor with those provisions of the Indenture. Certain past defaults under the Indenture and their consequences
may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series. Solely for the purpose of determining whether any consent,
waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given
or taken by the Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security
will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Security.

 

Defeasance

 

Section
403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating to
defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon compliance
by the Company or the Guarantor with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

 

Authorized
Denominations

 

This
Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which
is an integral multiple of $1,000.

 

Registration
of Transfer

 

Upon
due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis,
Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for
an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject
to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental
charge imposed in connection therewith.

 

This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it
is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after
the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that
this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event
of Default with respect

 

    14 

     

    

 

to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, bearing interest at
the same rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating
a like amount.

 

This
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary
or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

 

Prior
to due presentment of this Security for registration of transfer, the Company, the Guarantor, the Trustee and any agent of the
Company, the Guarantor or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the Guarantor, the Trustee nor any such agent shall
be affected by notice to the contrary.

 

Obligation
of the Company Absolute

 

No
reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Contingent Coupon Payments, if any, and the Maturity Payment Amount or
the Call Price, as applicable, on this Security at the times, place and rate, and in the coin or currency, herein prescribed,
except as otherwise provided in this Security.

 

No
Personal Recourse

 

No
recourse shall be had for the payment of any Contingent Coupon Payments or the Maturity Payment Amount or the Call Price, as applicable,
on this Security or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or
any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future,
of the Company or any successor corporation or of the Guarantor or any successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly waived and released.

 

Defined
Terms

 

All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless
otherwise defined in this Security.

 

Governing
Law

 

This
Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws.

 

    15 

     

    

 

ABBREVIATIONS

 

 The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations:

 

	TEN
    COM 	--	as tenants in common	 
	 	 	 	 
	TEN ENT	--	as tenants by the entireties	 
	 	 	 	 
	JT TEN	--	as joint tenants with right

    of survivorship and not

    as tenants in common	 

   

UNIF
GIFT MIN ACT -- ______________________________ Custodian _____________________________

(Cust)                                                                        (Minor)

 

	Under
    Uniform Gifts to Minors Act	 
	 	 
	(State)	 

 

Additional
abbreviations may also be used though not in the above list.

 

FOR
VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

 

Please
Insert Social Security or

Other
Identifying Number of Assignee

 

	 	 
	 	 
	 	 

(Please
print or type name and address including postal zip code of Assignee)

 

    16 

     

    

 

the
within Security of WELLS FARGO FINANCE LLC and does hereby irrevocably constitute and appoint __________________ attorney to transfer
the said Security on the books of the Company, with full power of substitution in the premises.

 

	Dated:	 	 	 
	 	 	 	 
	 	 	 	 

 

NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever.

 

    17

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