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12.1.2the technical service fee is as specified in appendix 7-5 （thesupplier's engineer's technical services and working conditions）hereto.
12.2the contract price shall be a firm lumpsum not subject to anyalteration except in the event of a change in the works specified inarticle 36.1 hereof or as otherwise provided in the contract.
12.3the contract price includes the supply of spare parts required upto the acceptance of the contract plant as described inarticle 8.2 hereof and appendix 7-1 （scope of works and supply）hereto.however， the contract price does not cover the supply of any other spareparts， including those recommended by the supplier as required for theperiod of _________ years' operation of the contract plant from the date ofthe acceptance as described in article 8.3 hereof and appendix 7-1 （scopeof works and supply）hereto. the buyer shall pay to the supplier the priceof such spare parts， including the purchase price therefor and other costsand expenses relating to the supply of the same， in addition to thecontract price specified in article 12.1.1 above. such price and otherterms and conditions for the supply of such spare parts shall beseparately agreed in writing between the buyer and the supplier when theidentity， specifications and quantities of the said spare parts have beendetermined in accordance with article 8.3 hereof.
article 13.terms of payment
13.1the contract price and the technical service fee shall be paid bythe buyer to the supplier at the times， in the manner， and in accordancewith the provisions of appendix 2 （payment terms）hereto and appendix 7-5（the supplier's engineer's technical services and working conditions)hereto， respectively.
13.2the buyer shall， not later than _________ days after the signingdate of this agreement， deliver to the supplier a letter of credit and aletter of guarantee issued by a first class bank acceptable to thesupplier， in the form of appendix 3 （form of letter of credit/guarantee)hereto and shall maintain such letter of credit and such letter ofguarantee throughout the contract.
in the event that the contract changes after the issue of the letterof credit and the letter of guarantee， the buyer shall arrange for suchletters to be amended to reflect such change as soon as possiblethereafter.
13.3no payment made by the buyer hereunder shall be deemed toconstitute acceptance by the buyer of the works or any part（s）thereof.
13.4in the event that the buyer fails to make any payment on itsrespective due date or within the period set forth in the contract， thebuyer shall pay to the supplier interest on the amount of such delayedpayment at the rate（s）shown in appendix 2 （payment terms）hereto for theperiod of delay until payment in full， whether before or after judgment orarbitral award.
article 14.bonds
14.1issuance of bonds
the supplier shall provide the bonds specified below in favor of thebuyer at the times， and in the amount， manner and form specified below.
14.2advance payment bond
14.2.1the supplier shall deliver to the buyer not later than_________ days after the effective date， a bond in the form of appendix4-1 （advance payment bond）hereto issued by a bank acceptable to the buyerfor a sum equal to the amount of the advance payment calculated inaccordance with appendix 2 （payment terms）hereto.
14.2.2the amount of the bond shall be reduced in proportion to theprice for the equipment under article 12.1.1 hereof actually delivered bythe supplier from time to time and shall automatically become null andvoid upon the date of the last major shipment.
14.2.3the bond shall be returned to the supplier immediately afterits expiry.
14.3performance bond
14.3.1the supplier shall deliver to the buyer not later than _________days after the effective date， a bond in the form of appendix 4-2（performance bond）hereto for the due performance of the contract issuedby a bank acceptable to the buyer for a sum equal to _________ per cent ofthe contract price. the bond shall be reduced to _________ per cent of thecontract price on the date of the last major shipment and shallautomatically become null and void _________ months after the date of thelast major shipment or _________ months after the date of the acceptance ofthe contract plant， whichever comes earlier.
notwithstanding the foregoing， if the defect liability period isextended with respect to any part of the equipment in accordance witharticle 27.2.7 hereof， the supplier shall arrange for the bond to remainvalid until the expiration of the defect liability period with respect tosuch part in an amount equal to _________ per cent of the contract price ofthat part.
14.3.2the bond shall be returned to the supplier immediately afterits expiry.
14.4retention bond
14.4.1if the contract provides for retention money to be withheld bythe buyer from the payments of the contract price， the supplier mayprovide to the buyer a retention bond（s）in the form of appendix 4-3（retention bond）hereto issued by a bank acceptable to the buyer for a sumequal to the retention money withheld by the buyer.
upon receipt of the bond（s)， the buyer shall immediately pay to thesupplier all the retention money withheld up to the sums guaranteed by thebond（s).
14.4.2the bond shall automatically become null and void on _________months after the date of the last major shipment or the date of theacceptance of the contract plant， whichever comes earlier.
14.4.3the bond shall be returned to the supplier immediately after its expiry.
14.5claim under bond
if the buyer considers itself entitled to any claim under any bond， itshall so notify the supplier specifying the default of the supplier uponwhich it bases its claim. subject to full compliance with the requirementsand procedures stated in the applicable bond， the buyer may claim underthe bond to the extent of the loss or damage incurred by the buyer byreason of such default.
article 15.taxes and duties
15.1except as otherwise specifically provided in the contract， thesupplier shall bear and pay all taxes， duties， levies and charges assessedon the supplier， its sub-contractors or their employees by all local，state or national government authorities in connection with the works inand outside the country where contract plant is located. the buyer shall be entitled to deduct withholding tax requiredunder applicable tax laws of the country where the contract plant islocated and the "agreement between the government of the people's republicof china and the government of _________ for the avoidance of doubletaxation and the prevention of fiscal evasion with respect to taxes onincome" for the account of the supplier from payment of the paid uplicense fee， the basic design fee and the technical service fee and to paythe same to the appropriate taxing authority. in such case， the buyershall furnish the supplier with an official tax receipt or otherappropriate evidence issued by such taxing authority.
15.2notwithstanding article 15.1 above， the buyer shall bear andpromptly pay all customs， import and export duties， value added taxes andbusiness taxes on the works， and withholding tax on any sum payable exceptthe paid up license fee， the basic design fee and the technical servicefee imposed by the laws of the country where the contract plant islocated.

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