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（2）abnormal test data:any abnormal test data which is not compatible with other significantdata shall be ignored or the test data in question may be taken again ifpractical from the contract plant operating conditions.
（3）tolerances:the performance of the contract plant shall be evaluated on the basisof the average performance over the entire period of the performance testand after adjustment with due regard to tolerances in instrument readings.
（4）report of test results:the supplier shall submit to the buyer a report on the performancetest in writing， indicating whether the process performance guaranteeshave been met.the report shall include;
（a）test results，
（b）analysis，
（c）the supplier's evaluation， and
（d）reference information supporting the evaluation.
（5）reasons for failure:if the performance test results shown that the performance test wasunsuccessful， the supplier shall state probable reasons for such failure.
（6）buyer's response to report:within _________ days after receipt of the performance test report， thebuyer shall signify in writing agreement or comments.
（7）supplier's action in the case of performance test failure:if the evaluation of performance test results shown that the failureof the performance test is the supplier's fault， then the supplier shalladvise the buyer of his intention as to whether he wishes to pay theliquidated damages or take corrective measures and repeat the performancetest in accordance with article 28.4 of the agreement.
4.5additional performance test
（1）if， due to the supplier's default， any part of the processperformance guarantees is not met and the supplier takes correctiveactions to enable the contract plant to satisfy the process performanceguarantees concerned， an additional performance test shall be conductedpursuant to article 28 （process performance guarantees）of the agreement.
（2）modifications of contract plant:before repetition of any performance test the supplier shall take thefollowing actions;
（a）to investigate the cause for non-fulfillment of the processperformance guarantees， and
（b）to offer the buyer to change the operating conditions of thecontract plant， and/or
（c）to make such changes， modifications or additions totheengineering or equipment of the contract plant as considered necessary tomeet the process performance guarantees.
（3）buyer's permission:the buyer shall allow the supplier necessary time to carry out anyactions deemed necessary by the supplier and the buyer shall make thecontract plant available for that purpose and operate the contract plantin such conditions as requested by the supplier.
（4）additional test:after the remedial actions stated above are completed the performancetest shall be repeated in the modified part of the contract plant andshall be carried out under the same conditions as provided for the firstperformance test.the performance test shall be repeated as often as the supplier deemsnecessary from the date when the buyer and the supplier shall confirm thatthe contract plant is ready for the performance test pursuant to article25.1.6 of the agreement.
5.failure in guarantees and liquidated damages
5.1failure to attain guaranteed values/levels
（1）for _________ unit:if the actual production capacity of _________ obtained in theperformance test （or any repeated run thereof）is less than the guaranteedvalue of production capacity of _________ specified in paragraph 3.1 （a）above， but is not less than the minimum level specified in paragraph 5.2（a）below， and/or if the actual average quality of _________ produced duringthe performance test fail to meet the guaranteed levels of quality of_________ specified in paragraph 3.1 （b）above， but meet the minimum levelsspecified in paragraph 5.2 （b）below， and in each/either case the supplierelects to pay liquidated damages to the buyer in lieu of making changes，modifications and/or additions to the _________ unit pursuant toarticle 28.4 of the agreement， then the supplier shall pay liquidateddamages as follows:
（a）production capacity:at the rate of _________ for every complete one per cent （1%） of thedeficiency in the production capacity of the _________ unit.
（b）quality of _________: （sketch）
（2）for _________ unit:if the actual production capacity of _________ obtained in theperformance test （or any repeated run thereof）is less than the guaranteedvalue of production capacity of _________ specified in paragraph 3.2 （a）above， but is not less than the minimum level specified in paragraph 5.2（a）below， and/or if the actual average quality of _________ producedduring the performance test fail to meet the guaranteed levels of qualityof _________ specified in paragraph 3.2 （b）above， but meet the minimumlevels specified in paragraph 5.2 （b）below， and in each/either case thesupplier elects to pay liquidated damages to the buyer in lieu of makingchanges， modifications and/or additions to the _________ unit pursuantto article 28.4 of the agreement， then the supplier shall pay liquidateddamages as follows:
（a）production capacity:at the rate of _________ for every complete one per cent （1%） of thedeficiency in the production capacity of the _________ unit.
（b）quality of _________: （sketch）
5.2minimum levels
notwithstanding the provisions of this paragraph， if as a result ofthe performance test （or any repeated run thereof）the following minimumlevels of process performance guarantees are not attained by the supplier，the supplier shall at its own cost make good any deficiencies until the_________ unit and/or the _________ unit reach any of such minimum performancelevels， pursuant to article 28.3 of the agreement:
（a）the minimum levels of the production capacity of the _________ unitand/or the _________ unit attained in the performance test:_________ per cent of the guaranteed production capacity for each/eitherunit.
（b）the minimum levels of the product quality of the _________ and ofthe _________ are as follows: （sketch）
5.3limitation of liability
subject to paragraph 5.2 above， the supplier's aggregate liability topay liquidated damages for failure to attain the process performanceguarantees shall not exceed _________ per cent of the contract price.
general:
the process licence（s）granted by the supplier pursuant to article 16（licence/use of technical information）of the agreement are as follows:
licence conditions for process a （for process owned by third party)
1.definitions
"process a" means a process developed by （inventor'sname） for（theproduction of products）by （process).
"process a unit" means a unit employingprocessawhichistobeinstalled in （name of contract plant）at （factory）in （city)，（state/county)， （country)， having the design capacity of （capacity).
"patent rights" means patents [in any country for inventionsrelatingto process a]/[in country （ies)] for which thesupplierisentitledtogrant licences， and applications for such patents ifandtotheextentthat the patent application was filed before the cut- off date.
"process information"meansthedesign，drawings，specifications，manuals， instructions， data and other technicalinformationprovidedbythe supplier to the buyer in connection with the process design a unit.

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