国际BOT投资合同格式（英）

AGREEMENT OF BOT PROJECT

Whole Doc.

This Agreement is made and entered into by and between

The government  of_____________（hereinafter  called  “B”）  representedby________（hereinafter called “A”）

And __________Corporation， a company duly organized and existing under thelaws  of  the  People’s  Republic  of  China  with  its  principal  officeat___________（hereinafter called “C”）。

Whereas， A and C concluded the Memorandum Concerning __________Project on the ____________and C had been given Exclusive Right from  B  to  carry out investigation and implement ____________Project （hereinafter called“the Project”） by way of joint financing between C and B （so called BOT）。

Whereas， the loan agreement， guarantee agreement， letter of guarantee，etc. shall constitute integral components of this Agreement. The Project’s installed capacity is __________.

Now therefore， the parties hereby agree as follows：

1. Definition and Interpretation

“Project”  means  the  planning，  feasibility   study，   design   and engineering， construction， equipping， completion，  testing，  commissioning and operation of the infrastructure project.

“Project Cost” means the cost specified in Clause 3.

“Operation Period” means the period specified in Clause 10.1 from  the starting date of commercial operation of the infrastructure project.

“Completion Date” means the  day  upon  which  C  certifies  that  the infrastructure project has successfully  completed  its  testing  and  can start Operation Period.

“Force Majeure” shall have the meaning specified in Clause 16.

“Project Scope” means the  scope  of  supply  and  services  of  C  in connection with the execution of the Project as described in Annex 2.

“Site”  means  the  site  for  the  infrastructure  project  including ___________， special roads， and other areas for construction as  specified in Annex 2.

“Transfer Date” means the day following the last day of the  Operation Period.

“New Company” means the  Company  to  be  established  between  C  and ________entity as specified in Clause 5.

“Investment Agreement” means the Agreement on Mutual Encouragement and Protection of Investment between the Government of the  People’s  Republic of China and the Government of the ___________.

“Exclusive Right” means the special power granted to C or New  Company in the Memorandum， Agreement and its annex.

“Day” means the solar calendar day.

2. The Project

2.1 The Project shall be named as “________”。

2.2  The  infrastructure  project  is  intended  to  be  located   at __________. The exact  location  of  the  infrastructure  project  may  be adjusted at the stage of detailed design  in  consideration  of  the  site condition.

2.3 The Project  shall  be  implemented  on  Building，  Operation  and Transfer Basis.

2.4 The Project shall be composed of ____________________，  _________，_________， the details of which shall be as attached Annex 2  -  Scope  of the Project.

2.5 The final feasibility  study  report  and  detailed  design  after acceptance of B and C shall form basis for the development and  completion of the Project.

3. The Project Cost

3.1 The project cost is $______， interest of the  construction  periodis $______， the total project cost is  $__________，  and  the  details  of which are shown in Annex 3 - Project Cost.

3.2 The total project cost shall  comprise  but  not  limited  to  the following costs and the details of the project cost shall be  as  attached Annex 3 - Project Cost：

1） Cost for  feasibility  study，  design  and  engineering  and  other consulting services；

2） Cost for construction and installation；

3） Cost for purchasing equipment and materials；

4） Cost for administration including overseas expenses；

5） Overhead and miscellaneous expenses；

6） Contingencies；

7） Interest during the construction period （__________% per annum plus bank commission）；

8） Premium for construction insurance and export credit insurance.

3.3 The Project Cost shall be based on the  feasibility  study  report andin case of a substantial variation in investment arising from geologic reasons， the additional part to the Project Cost shall be approved  by  B. An additional investment agreement or contract should be concluded between B and C.

4. Responsibilities for Project Execution

4.1 C shall be responsible for the  following  provided  that  if  and after New Company is established， responsibilities shall be transferred to New Company and be shared by the members of New Company：

1）  the  design  and  engineering，  procurement，   construction   and commissioning of the Project；

2） all costs in connection with the  building  of  the  infrastructure project and the arrangement of all necessary funding；

3） operation of the infrastructure project；

4） transfer of the infrastructure project to B on the Transfer Date；

4.2 B shall be responsible for：

1） the arrangement of：

the  provision  of  all  necessary  development  approvals，  permits，consents， site leases， access and  other  rights  for  C  or  New  Company together with the fulfillment of essential requirements  such  as  company registration， import license and exemption of customs duties and the like；

the provision of all necessary or desirable aids for C to  obtain  the loan；

obtaining of all regulatory， statutory and other consents，  approvals，authorizations， tax concessions and  investment  incentives  as  described hereinafter which are necessary or desirable for the implementation of the Project；

obtaining of all necessary permits and  approvals  from  the  relevant _____________authorities for C or New Company to  repatriate  capital  and dividends in US Dollars from ______；

obtaining  of  resident  visas，  work  permits  and  other  necessary approvals from the relevant authorities for C or New Company’s  personnel，design， manufacturing， installation and construction personnel as well  as their direct relatives including the travel in ___________；

the provision of all  necessary  approvals  and  permits  relating  to extension of the infrastructure project  and  the  Project  facilities  in order to increase _________________production if C or New Company  intends to do so；

the provision of all necessary security measures for construction  and operation personnel and Project facilities till the Transfer Date；

the provision  of  communications  and  transport  facilities  of  the Project construction and the operation of the infrastructure project；

2） the assistance in the operation of the infrastructure project.

3） providing C and/or New Company with free use of the Site， including but  not  limited  to  the  area  of  construction  site，   access   road，transmission line right of way， __________and etc.

4）  the  negotiation  and  conclusion  of  service   agreement   with ___________Government or other countries’governments jointly  with  C  or new Company， the People’s  Insurance  Company  of  China  representatives，whose presence in the negotiation B shall ensure，  and  whose  approval  B Shall obtain；

5） the exportation of ________________percent of  __________  produced by the infrastructure project to __________or any third country；

6） the assignment of its  representatives  at  Site  and  to  the  New Company to assist C or New Company and make necessary coordination between B and C or New Company.

4.3 B ensures that the Operation Period of the Project  shall  be  not less than _______years. However if IRR （Inter Rate  of  Return）  does  not reach _______percent， both parties will discuss the  proper  extension  of the Operation Period until the year IRR reaches _______%.

4.4 Conditions Precedent

B shall be responsible for the provision of  the  following  documents for C to make available any part of this  Agreement  within  _______months from the date of signing this Agreement and such documents shall be  valid and effective to New Company：

1）  a  power  guarantee   issued   by   ___________________parliament acceptable to C in the form defined in Annex 7， which shall be returned to B on the Transfer Date；

2） warranty to be issued and loan agreement to be concluded  with  theproposal made by B for bearing __________percent of the Project Cost，  the Bank of ______________as the loanee and __________Finance Ministry as  the guarantor and acceptable to the Bank of China and the  People’s  Insurance Company of China， and a letter of credit or  letter  of  guarantee  to  be issued as required by the Bank  of  China  provided  that  the  length  of maturity is__________ years including a  _______year  construction  period and loan interest  is  ________percent  per  annum；  B  may  make  earlier reimbursement；

3） loan guarantee and warranty for  C’s  sharing  __________%  of  the Project Cost including interest of the construction period to be issued by the Bank of _____________ and ______________Finance Ministry respectively，acceptable to the People’s Insurance Company of China and the Lending Bank and valid until to the Transfer Date （__________）， providing all necessary assistance in enabling C to  obtain  the  loan  from  international  prime banks；

4） the legal certificate issued by _____________President  of  Supreme Court  and  the  legal  certificate  issued  by______________   Procurator General， certifying that this Agreement shall  be  valid  and  enforceable under the laws of _____________in every respect in  the  form  defined  in Annex  8；  the  certificate  of  approval  issued  by  the  Government  of _____________， certifying that the Project is lawful and legitimate；

5） B shall permit the construction machinery， material  and  equipment necessary  for  the  Project  to   be   transported   into   __________via _____________by sea， and/or by road through __________as Well as  by  air，ensuring  facilities  from  the  __________border  control   and   customs authorities.

4.5 B warrants and undertakes that B shall not change or permit others to change  the  environment  of  the  Site  which  adversely  affects  the construction or operation of the Project. Such change shall  include，  but not limited to， _____________.

4.6 Buyer’s Credit for B’s sharing __________%  of  the  Project  Cost shall be provided by the Chinese side， payment terms of which to C are  as follows：

1）________% of the credit shall be paid within _________days after the date of the conclusion of this Agreement；

2）_______% of the credit shall be paid by ____________；

3）_______% of the credit shall be paid by  ____________；

……

4.7 The parties shall provide each other sufficient  information  that enables each party to have a clear understanding of the  principal  issues that affect matters associated with the Project.

4.8 The parties hereto shall mutually collaborate with each  other  in order to achieve the objectives of this Agreement and the  performance  by each party of their respective obligations.

5. New Company

5.1 The parties agree to establish a New Company at the time when  the members of New Company are ready to invest their portions， but before  the completion of the Project and for  this  purpose  B  shall  recommend  and designate a _______________entity which will be a member of New Company. C having _____________ percent of equity， shall be the leading  company  and shall appoint chairman of New Company. The  remaining  portion  of  equity shall be shared by _______entity.

5.2 Design and Construction of the Project shall be executed by C.  At monthly intervals until ___________day （subject to  postponement  in  case of______） of each month， C shall  execute  a  statement  of  a  claim  for progress payment based on the prices for the construction  works  done  in the preceding month to B  and  such  statement  shall  be  the  conclusive evidence proving fairness of such claim except manifest calculation error.

5.3 B shall make its effort to assist in registering  New  Company  at authority concerned in __________and to obtain  all  required  permits  or approvals from the relating authorities in ___________.

5.4 New Company shall be granted the same privileged rights  as  those granted  to  C  specified  in  Clause  9.2   and   C’s   obligations   and responsibilities specified in this Agreement shall be transferred  to  New Company and be shared by the members of New Company.

The members of New Company shall  describe  the  provisions  on  their rights and responsibilities in the articles of incorporation to be made on the basis of  the  provisions  in  this  Agreement  at  the  time  of  the establishment of New Company.

5.5 If members of New Company do not  reach  an  agreement  about  any matters in relation with the Project， the  opinion  and  decision  of  the major shareholder shall be final and binding upon the other members of New Company.

6. Construction of the infrastructure project

6.1 In pursuance of its obligations in relation with the  construction of the infrastructure project under clause 4.1， C shall do followings with its full right in consultation with B：

1） to prepare detailed design and engineering in conformity  with  the national standards of P.R.China in force；

2） to appoint consultants and professional advisers；

3）  to  purchase  equipment  and  materials  including   construction equipment， the specification of which and installation and  testing  shall meet the national standards of P.R.China in force；

4） to appoint， organize and direct staff；  manage  and  supervise  the Project；

5） to enter into contracts for the supply of equipment  and  materials and services；

6） to do all other thins necessary or desirable for the completion  of the infrastructure project in accordance with the engineering standards；

7） to select subcontractors；

6.2 B shall be entitled at its own cost to monitor  the  progress  and quality of the construction and installation work and for this  purpose  C shall：

1） ensure that B and any experts appointed by B in connection with the Project are afforded reasonable access to  the  Site  provided  that  such access does not materially interfere with the works；

2） make available copies of plans and designs for  inspection  at  the Site；

3） after ________months of the completion of  the  Project，  supply  B with ______sets of copies of “as built” drawings and other documents.

6.3 B shall ensure that all infrastructure requirements and  utilities necessary for the  completion  of  the  infrastructure  project  are  made available in a timely fashion and  accordingly  shall  at  its  own  cost，interalia：

1） give free possession of the  Site  to  C  during  the  construction period；

2） ensure that custom clearance system is available  to  C  to  import equipment  and  materials  for  the  Project   without   any   delay   and interference；

3）  ensure  that  C  will  use  electricity  for   construction   and communication facilities in ________， the cost of the utilization of which shall be for C’s account  at  __________current________________  rate  and shall be included in the Project Cost as cost for construction or cost for administration   as   stipulated   in   Clause   3.2；    C    shall    pay _____________charge to ______________authority every other  months  during the construction period；

4） ensure that C  will  build  transmission  line  from___________  or another still nearer  place  to  the  Site  for  the  use  of  _________in construction， which will  be  used  to  transmit  _____________  from  the infrastructure project after the completion of the Project；

5） jointly with C negotiate with  _______________or  other  countries’governments to take necessary actions  for  the  ___________________to  be connected， received and supplied in those  countries  through  the  proper transmission line without any interference at the time  of  completion  of the Project.

6.4 B shall ensure that during construction period C shall be  granted the exemption of

1） customs duties， government taxes and local levies relating  to  the importation of all kinds of equipment and  materials  such  as  generating equipment， construction equipment， vehicles including cars，  jeeps，  etc.，tools， construction materials and other goods for the construction of  the infrastructure project as well as accommodation facilities；

2） company sales tax， income  tax  and  so  on  to  be  imposed  on  C construction  activities  for   the   Project   in   _____________by   the _____________authorities.

7. Project Schedule

7.1 The parties shall work together in order to endeavour  to  achieve the timely completion of  the  Project  in  accordance  with  the  Project Schedule as Annex 4 according to which the construction  period  shall  be _________years from the commencement  date.  However，  C  may  extend  the construction period upon the agreement of B.

7.2 The commencement date shall be the ______day  after  _______months from the Effective Date of this Agreement provided that C can  start  work for access road， survey， investigation， clean-up work around the site，etc. before the commencement date. However， if  C  commences  construction work in accordance with the provision of Clause 9.1， the commencement date shall be the date where C materially starts the construction  work，  which shall be notified to B by C.

7.3 Upon substantial completion of the infrastructure project，  C  may request to New Company  or  its  representative  that  the  infrastructure project has successfully completed its testing and  that  accordingly  the Completion Date has occurred.

7.4 If there is a variation to the Project and such variation  affects the construction time of the infrastructure project， then C shall get  the approval of B to extend the construction period， B shall not  unreasonably withhold its approval.

8. Testing

8.1 The parties shall meet and agree procedures and  a  programme  for the testing of the infrastructure project in accordance with  the  Chinese standards.

8.2 C shall give  to  B  ________days’notice  of  its  intention  to commence any testing.

8.3 B and/or its experts shall be entitled to be  present  at  testing which is agreed upon by the parties.

8.4 Forthwith upon the completion of any testing， C shall  request  to New Company or  its  representative  whether  or  not  the  infrastructure project has satisfied such test and shall provide B with a  copy  of  such certificate.

9. Effective Date and Privileged Right

9.1 This Agreement shall become in full force and  effect  as  of  the date of signing this Agreement provided that C has the right of  reserving the fulfillment of its obligations until the fulfillment of the  following conditions：

1） Handing over the Site to C free from rental charge and issuing by B of the letter to that effect valid till the expiration of BOT；

2） Fulfillment of the provisions of Clause 4.4.

Upon execution and signing of this Agreement， B’s right  to  terminate the Exclusive. Right provided in the Memorandum mentioned in the  preamble of this Agreement shall Lapse.

9.2 C shall be given following privileged rights in  written  document from the authorities concerned by the arrangement of  B  thereof  and  the same privileged rights shall be transferred to or enjoyed concurrently  by New Company as the case may be， when it is established.

1）  Approved  by  the   Bank   of   the   __________________and   the _________Finance Ministry for：

the repatriation of C’s investment including， but not limited to，  the profits of such investment in US Dollars.

2） The Government of  _______________approval  of  the  employment  of foreign nationals in supervisory， technical and advisory positions and for the  positions  of  chairman，  treasurer  and  general  manager  or  their equivalent until the Transfer Date.

3） Other national and local approvals as may be necessary  to  proceed with the Project.

4） Approval of tax exemption as below by the authorities concerned  in __________：

Full exemption of customs duties and other levies （if any）  throughout BOT period for  the  importation  of  equipment，  materials，  construction machinery and other goods for the Project；

_____________percent exemption of profit tax，  additional  tax，  local tax，  and  business  tax  for  ______years   starting   from   the   first profit-making year and  _________percent  profit  tax  exemption  for  the subsequent years.

5） Free remittance of investment including， but not  limited  to，  the profits of such investment in US Dollars and/or  receipt  of  payments  or sales proceeds in US Dollars， without withholding tax， remittance  tax  or any other taxes leviable under________ laws.

6） The approval by the relevant  _________________Government  agencies for the immediate importation into _____________of all equipment  for  the Project.

7） C  shall  register  its  subsidiary  or  affiliated  or  associated companies in _____________. A certificate of Registration issued by the  B in relation to the Project， confirming that C including its subsidiary  or affiliated or associated companies is a registered  enterprise  under  the Law on Foreign Investment in the __________.

8） Free remittance abroad of  the  remuneration  in  US  Dollars  with exemption from individual income tax， remittance tax or  any  other  taxes thereon.

10. Operation of the infrastructure project

10.1 New Company shall be responsible for the  management，  operation，maintenance， repair and overhaul of the infrastructure project during  the Operation Period， namely ______years from the starting date of  commercial operation of the infrastructure project and shall use its best  endeavours to ensure the infrastructure project is in good condition and  capable  of producing _______in a safe and stable manner. The extension of  the  above mentioned Operation Period shall be discussed by both parties  if  the____ percent IRR is not accomplished within __________years‘ Operation Period.

10.2 In order to undertake necessary overhaul， maintenance， inspection and repair，  New  Company  shall  perform  downtime  each  year  from  the Completion Date.

10.3 In pursuance of its obligation under  Clause  10.1，  New  company shall have full right to：

1） enter into contracts  for  the  supply  of  material  and  services including  purchase  of   replacement   equipment   and   participate   in negotiations on operation and service agreement conclusion；

2） appoint， organize  and  direct  staff；  manage  and  supervise  the infrastructure project；

3） establish and maintain regular inspection， maintenance and overhaul procedures；

4） do all other things necessary or desirable for the operation of the infrastructure project；

10.4 B and New Company shall， from time to time， meet and discuss  and agree safety guidelines for the operation of the infrastructure project.

10.5  New  Company  shall  operate  the  infrastructure  project   in accordance with all __________and local laws and regulations in  force  at the date of signing this Agreement.

If any changes or new legislations of laws and regulations would：

1） result in the infrastructure project being  unable  to  operate  in normal conditions；

2） result in the interest of New  Company  being  materially  reduced，prejudiced or otherwise adversely affected；

Then the parties shall meet and endeavour to agree  on  amendments  to this Agreement.

10.6 B shall be entitled to appoint and allocate its experts  agencies to monitor the operation of the infrastructure project by New  Company  at B’s cost and expense. The monitoring  shall  not  interfere  the  ordinary operation of the infrastructure project by New Company.

11. Supply of Service offered by the Infrastructure project

11.1  New  Company  shall  supply  the  produced  _________________to ___________or other countries as stipulated  therein.  In  case  that  the power purchaser is other country than _____________， a  service  agreement shall be concluded.

11.2 If B intends to distribute part of the produced_________ to local market on demand， B shall use such ______________as royalty stipulated  in Clause 12.4 and if B needs more _____________than that of royalty  portion it shall be agreed upon by New Company to that effect  provided  that，  in such case， _______________charge shall  be  paid  to  New  Company  in  US Dollars as stipulated in Clause 12.

12. Service Charge and Income Distribution

12.1 In order to accomplish the purposes specified in Clauses 4.2.4），4.2.5），  6.3.4）  and  11.1，  B  shall  undertake  responsibility  for  the negotiation  with  ________Government  and  the  conclusion   of   service agreement. B shall  provide  such  information  and  data  as  useful  and necessary for the negotiation and appoint a person to cooperate  with  the representatives from C or New Company and the People’s  Insurance  Company of China in charge of the negotiation.

The persons in charge shall do their duty according to the  procedures as below：

1） to submit basic concept and overall  plan  of  the  Project  within _______days from the date of singing this Agreement；

2） to start detailed technical negotiation and discussion on the  rate of service charge within  _________days from  the  date  of  signing  this Agreement；

3） to conclude relevant  matters  and  enter  into  service  agreement within  _______months from the date of signing this Agreement.

C or New Company shall fully assist and  support  B  and  provide  all technical  data，  information  and  materials，  etc.  necessary  for   the negotiation. In case that the parties send a delegation to negotiate  with a service purchaser， they should appoint the person  or  persons  who  are competent for the delegation at all points in experience and specialty.

12.2 B and C or New Company agree as a negotiation point that  payment for _________export shall be received on monthly basis and directly to New Company’s bank account  in_________  denominated  by  New  Company  in  US Dollars without any withholding taxes or fees.

12.3 Income from sales  of  _______shall  be  distributed  by  C，  the leading company of New Company， in the following order of priority：

1） Royalty to B stipulated in Clause 12.4；

2） Operation and maintenance cost；

3）  Loan  principal  and  interest  to  construct  the  infrastructure project；

4） Dividend to the members of New Company.

The parties agree and acknowledge to cause New Company not to make any deduction of depreciation or establishment of any reserves and  to  ensure payment of principal and interest to construct the infrastructure  project after the payment of the items specified in Clauses I） and 2）。

The People’s Insurance Company of China will act as the undertaker  of the export credit insurance and treasurer of the New  Company  during  the repayment period to ensure the reimbursement of  the  loan  principal  and interest.

12.4 The amount of income to be distributed to B and  the  members  of New Company shall be calculated by using as reference the Basic Case-Annex 1.

The proportion of the amount payable to B as royalty shall be as below and readjusted based on the service agreement and the Project Cost：

___________percent during the first __________years of  the  Operation Period：

____________percent  during  the  remaining  years  of  the  Operation Period.

The above mentioned royalty to B  covers，  but  not  limited  to，  B’s provision  of  C  or  New  Company’s  free  use  of  the  Site，  technical assistance， administrative arrangement and support  and  other  assistance and support specified in this Agreement.

12.5 In case that main equipment should be replaced，  the  members  of New Company shall  agree  to  increase  their  investment  amount  in  the proportion  of  their  share  to  New  Company  for  the  procurement  and installation of that replacing equipment. Cost for replacement  parts  and equipment  of  which  durable  year，  determined  by  the  internationally accepted accounting principle， exceeds  Transfer  Date，  shall  be  shared between B and New Company in proportion of the years beyond Transfer  Date and the years falling within Transfer Date.

13. Transfer of Ownership

13.1 Before the establishment of New Company， C and  B  shall  be  the proprietary owners of the  infrastructure  project  or  any  part  thereof during the construction period  and/or  the  Operation  Period  and  shall possess and exercise all rights， privileges， titles to  and  interests  in the infrastructure project. Such ownership shall be shared by the  members of New Company until the Transfer Date in proportion of the percentage  of their share of equity when New Company is established.

B acknowledges such ownership and guarantees that such ownership shall be respected and protected by B under the laws of ___________and  B  shall make resolutions， issue orders or execute any action which is required  to protect such ownership. B guarantees that under any  circumstance  or  for any cause， the ownership of the infrastructure project and other assets of C or New Company， during construction or after Completion Date， shall  not be condemned， confiscated， nationalized or restricted by B unless C or New Company abandons the Project.

Abandonment in this Clause means that i） C or New Company  notifies  B of their definite intent to neglect the infrastructure project and  ii）  C or New Company‘s neglect of the infrastructure  project  lasts  more  than _____________months without cause.

During the construction period  and/or  operation  period，  C  or  New Company shall at  its  own  discretion  and  necessity  cause  a  lien  or encumbrance  to  be  created  on  the  infrastructure  project  and  other facilities forming the Project，  and  B  shall  not  raise  any  objection thereto.

13.2 On the Transfer Date New Company shall transfer to B，  free  from any lien or encumbrance created by New Company and without the payment  of any  compensation，  all  its  right，  title  to  and   interest   in   the infrastructure project， unless otherwise specified in the Agreement or any supplementary agreement.

13.3 __________year prior to the Transfer  Date，  B  and  New  Company shall  discuss  the  necessary  procedure  for   the   transfer   of   the infrastructure project and ______months prior to the Transfer Date， B  and New Company  shall  meet  and  agree  the  inventories  involved  and  the mechanics of transfer.

13.4 The infrastructure project and all  other  equipment  transferred pursuant to Clause 13 shall be transferred on an “as is” basis  and  after the Transfer Date New Company shall be under no liability whatsoever to  B in respect of the operation of the infrastructure project by B or a person designated by B.

13.5 B shall be responsible for all costs  and  expenses  （  including legal fees and taxes or duties） incurred in connection with  the  transfer referred in Clause 13 and shall at its  own  cost  obtain  or  effect  all governmental and other approvals， licenses， registrations and filings  and take such other actions as may be necessary for the transfer  contemplated in Clause 13， and reimburse New Company on demand for all such  costs  and expenses incurred by New Company in respect of such transfer.

14. Liability

14.1 C or New Company shall be under no responsibility or liability to compensate any damages except direct  damages  incurred  due  to  material breach of its obligations under this Agreement.

14.2 In circumstance provided above in Clause 14.1 C  or  New  Company shall， at its sole option and discretion， be entitled to transfer to B all or part of C or New Company’s proprietary  rights  and  ownership  of  the infrastructure project， under construction or after  Completion  Date，  as liquidated damages， in lieu  of  computing  and  compensating  the  actual damages provided that such transfer shall be conducted  of  C’s  own  free will or rendered in the arbitration award  as  stipulated  in  clause  23. However， any transfer shall be subject to the confirmation and approval of the People’s Insurance Company of China and the lending bank.

In above case， C or New Company’s liability to B shall be  limited  to transfer of the proprietary right  and  ownership  of  the  infrastructure project and B’s claim against C or New Company demanding the damages shall be extinguished and nullified.

15. Documents and Patents

15.1 Nothing  contained  in  this  Agreement  shall  be  construed  as transferring any patent or copyright in equipment covered by the Agreement and all such rights are hereby expressly reserved to the true  and  lawful owners thereof. C or New Company shall retain all rights with  respect  to the specifications， plans， drawings and other documents and  B  undertakes not to disclose the same or divulge any information contained  therein  to any third country without the prior written consent of C or New Company.

15.2 All commercial and technical documents  such  as  agreements  and proposals  pertinent  to  the  Project  shall  be  kept  confidential.   B undertakes not to disclose the same or divulge any  information  contained therein to any third country or party without prior written consent  of  C or New Company.

16. Force Majeure

16.1 No failure or omission to carry out or observe any or the  terms，provisions or conditions of this Agreement shall be deemed to be breach of this Agreement if the same is caused by or arises out of Acts  of  God  or any conditions of similar nature beyond reasonable control  of  C  or  New Company， including， but not limited to， the following：

a. war， hostilities （whether war be declared or not）， invasion， act of foreign enemies；

b. rebellion， revolution， insurrection， or military or usurped  power，or civil war；

c. ionizing radiation， or contamination  by  radio-activity  from  any nuclear fuel， or from any nuclear waste from  the  combustion  of  nuclear fuel， radio-active toxic explosive， or other hazardous properties  of  any explosive nuclear assembly or nuclear component thereof；

d. pressure waves caused by aircraft or other aerial devices traveling at sonic or supersonic speeds；

e. riot， commotion， disorder， strike， sabotage， lockout or  any  other industrial action by  employees  affecting  C  or  New  Company  or  their subcontractors；

f. export or import  restrictions  by  any  governmental  authorities，closing of harbours， docks， canals；

g.  fire，  unusual  flood，  earthquake，  mud   avalanche，   collapse，landslide， storm， lightning or any other unreasonably severe weather；

h. accidents of navigation or breakdown or injury of vessels；

i. epidemic， quarantine；

j. shortage of raw materials， unforeseen shut-down of major sources of supply；

k. unreasonable delay of more than _________days  in  unloading  ships and clearing systems；

l. concealed conditions encountered below the surface of the Site.

16.2 Notwithstanding Clause 16.1， B shall not be entitled to claim for itself in respect of any Force Majeure in Clause 16.1.

16.3 The party invoking Force Majeure shall：

a. notify the other parties as soon as possible in writing the  nature of the Force Majeure and the extent to which the  Force  Majeure  suspends the affected party’s obligations under this Agreement； and

b. resume performance of its obligations as soon as possible after the Force Majeure condition no longer exists.

16.4 If the Force Majeure applies prior to the  Completion  Date，  the parties will meet to discuss a revised timetable for the completion of the Project.

16.5 If the Force Majeure applies during  the  Operation  Period，  the Operation Period shall be extended by a period equal to that during  which the effect of the Force Majeure applies.

16.6 Notwithstanding Clauses 16.4 and 16.5， if the Force Majeure lasts for a period in excess of ____________days， the parties hereto  will  meet to discuss the basis and terms upon which this Agreement can be  continued and if the parties conclude that this Agreement cannot be continued，  then the parties shall discuss the solution to reduce their loss.

16.7 The parties hereto will consult with  each  other  and  take  all reasonable steps to minimize the losses of either party resulting from the Force Majeure.

16.8 If any event of the Force Majeure occurs which causes  damage  to the Project or the infrastructure project， then C or New Company shall not be obliged to reinstate the same， or， as the case  may  be，  complete  the same， until the parties  hereto  have  agreed  upon  the  terms  for  such reinstatement or completion.

17. Insurance

C  or  New  Company  shall  take  out  insurance  required  for   the construction or operation of the infrastructure project.

18. Change in Circumstances

In the  event  that  as  a  result  of  any  laws  or  regulations  of ___________or any agency or other body under the control of the Government of ____________or any regional or municipal authority thereof， coming into effect after the  date  hereof  or  as  a  result  of  any  such  laws  or regulations （including any official interpretation thereof  C  has  relied upon in entering into this Agreement） in force at the  date  hereof  being amended， modified or repealed， the interest of C in the Site， the  Project or the infrastructure project and/or C‘s economic return on its investment is materially reduced， prejudiced or otherwise adversely affected（including， without limitation， any restriction on the  ability  to  remit funds in US Dollars outside of_____________） then the parties hereto shall meet and endeavour to agree amendments to this Agreement.

19. Notices

Any notice to be given under this Agreement shall be  in  writing  and shall be delivered  personally  or  sent  by  registered  mail，  telex  or facsimile transmission to the following：

To    B：_______________.

Address： _________________.

Telephone： __________________.

Facsimile： ________________.

To    C：_____________.

Address： __________.

Telephone： ___________.

Facsimile： _________.

Any party may change such  address  or  attention  by  not  less  than _______days’notice to the other party in  accordance  herewith  and  such change shall take effect on receipt of such notice by the other party.

20. Dispute Resolution

20.1 Throughout the term of  this  Agreement  representatives  of  the parties shall meet regularly at not less  than  semi-yearly  intervals  to discuss  the  progress  of  the  Project  and   the   operation   of   the infrastructure project in order to ensure that the arrangement between the parties hereto proceeds on a mutually satisfactory basis.

The operation of the infrastructure project in order  to  ensure  that the  arrangement  between  the  parties  hereto  proceeds  on  a  mutually satisfactory basis.

20.2 The parties hereto agree that in the  event  that  there  is  any dispute or difference between them arising out of this Agreement or in the interpretation of any of the provisions hereof  they  shall  endeavour  to meet in an effort to resolve such dispute by discussion between  them  but failing such resolution the  representatives  of  parties  shall  meet  to resolve such dispute or difference and the joint decision by them shall be binding upon the parties hereto and in the event that a settlement of  any such dispute or difference is not reached pursuant  to  this  Clause  then provisions of Clause 23 shall apply.

20.3 In the event any dispute should arise between the parties  as  to any technical matter in regard to the construction  or  operation  of  the infrastructure project， design and production standards shall be  provided and the case shall forthwith be referred to the expert chosen by agreement of both parties. Subject to arbitration，  as  hereinafter  provided，  such decision shall be final and binding upon the parties.

if the expert fails to render his decision within  such_________  days or if either of the parties is dissatisfied with any  such  decision，  the party may， within ______days  after  the  expiration  of  the  first-named period of _______days or after receiving notice of such decision，  as  the case may be， refer the dispute to arbitration as provided in Clause 23.

21. Waiver of Sovereign Immunity

B represents and warrants that this Agreement is the commercial rather than public or governmental act and that  B  waives  its  right  to  claim immunity from legal proceedings with respect  to  itself  or  any  of  its assets on the ground of sovereignty or otherwise under any law or  in  any jurisdiction whether an action may be brought for the enforcement  of  any of the obligations arising under this Agreement.

22. Law and Language

This Agreement shall be governed by and construed in  accordance  with the laws of ____________except technical  specifications.  This  Agreement has six （6） originals in ____________language and each party holds three（3）。

23. Arbitration

All disputes， controversies， or differences which  may  arise  between the parties， out  of  or  in  relation  to  or  in  connection  with  this Agreement， or for the breach thereof shall  be  settled  through  amicable consultation. If three occasions  of  consultation  fail  to  settle，  the Agreement on Mutual Encouragement and Protection of Investment between the Government of the  People’s  Republic  of  China  and  the  Government  of ______________________shall  apply.  In  case  the  issue  remains  to  be settled， it shall be finally settled by arbitration pursuant to the  Rules of Conciliation and Arbitration of the International Chamber of  Commerce，by three （3） arbitrators designated in accordance with the said Rules.

Arbitration  shall  be  held  in  ______________and  shall  use   the ____________language.

The award rendered by arbitrators shall be final and binding upon  the parties concerned.

In witness whereof， the parties hereto have  caused  their  respective duly authorized representatives to execute the Agreement on the  ______day of _______in the year of ________.

For and on behalf of the B          For and on behalf of the C

Annex （sketch）