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GENERAL CONDITIONS OF THE QUALITY CONTROL PLAN This Quality Control Plan [QCP] stipulates the specific documentation

s ubmissions, testing, witnessing and final quality record requirements the Supplier is contractually committed to follow. The QCP defines the minimum programme of tests and inspections to be carried out on the specified equipment that shall be integrated into the Suppliers Quality Control Plan. These stipulations are defined herein th rough the Quality Control Matrix and I&C Quality Control Table. The Suppliers QCP shall contain, for each qualit y control operation, the following minimum details: Type / Method of Check; Quantum of Check; Reference Documents; Acceptan ce Norms; Notification Points. The Buyer reserves the right to mark-up the Suppliers QCP with additional notific ation points as may be required. 1.0 General rules 1.1 Inspection, supervision and performance test must be carried out o n the equipments provided by the Supplier during contract execution to ensure that the equipments are in conform ity with the contract and related standards. 1.2 The Supplier must provide equipments testing, commissioning, performance te st, acceptance and check to verify the equipments in accordance with the technical and performance requirements in this contract. 1.3 All equipments must be carried out inspection in accordance with the requir ements in this technical agreement. Related to any equipment, inspection and test must be submitted to the Buyer for review and approval. 1.4 The procedures and detail of inspection must be made by the Supplier and ap proved by the Buyer. 1.5 According to this contracts scope, all site the testing, commissioning of eq uipment should be performed by the Buyer under the instruction of the Supplier. 1.6 According to this contracts scope, the performance tests of equipme nt should be conducted by testing institution and the Supplier, the Supplier must participate in. 1.7 For the other equipments that designed by the Supplier but not s upplied by the Supplier, the Supplier must cooperate with the Buyer for the performance test. 1.8 The Supplier shall, in accordance with the requirements of this C ontract, have a set of complete quality assurance system and compile quality control documents adaptive to proj ect, so as to ensure that the requirements of this Contract are measured up to. The Buyer is entitl ed to examine any aspect of the quality assurance system and require the modification to it. The Suppliers obse rvance of its obligation related to the quality assurance system shall not relieve or mitigate its other obligations und er this Contract. 1.9 Within 60 days after the effectiveness of this Contract, the Supp lier shall provide the Buyer the list of Codes &Standards in English used by manufacture and inspection (valid versions). 1.10 The Buyer is entitled to, at any reasonable time during the perf ormance of this Contract, carry out the examination, verification and inspection of Equipment, materials, process and performance provided in accordance with this Contract at the workshop, the Suppliers manufacture place or other places. Whether the examination or inspection is carried out at the location of the Supplier or its

sub-the Supplier, the Supplier shall provide all documents and other relevant materials necessary to such examination or inspection free of charge, and provide the assistance, labor, materials, electricity, fuel, warehouse, inst rument and meters necessary to the effective examination or inspection. The Buyer is entitled to dispatch factory-stationed representatives at any time during the manufacture of Equipment to get to know the information about th e assembly, inspection and test of Equipment and the package quality of Equipment. The Buyers participation in the examination does not mean to mitigate or relieve any guarantee or liability & obligation of the Suppl ier. 1.11 The Supplier shall decide the time and place for the examination or inspection of any Equipment according to this Contract together with the Buyer. As to the witness inspection or examinati on participated by the Buyer, the Supplier shall uniformly deploy the instructions and plan, and relevant departme nts of the Supplier shall offer full cooperation for the Buyers inspection and acceptance and provide all convenience. 1.12 Where the Buyer confirms there is defect in Equipment, materials or package quality or the non-conformity to this Contract during the witness, the Buyer may reject such Equipment or materia ls and shall immediately notify the Supplier to explain the reasons. The Supplier shall immediately repair the a bove defect and ensure that its compliance to this Contract. Whether the Buyer requires or not, the S upplier shall be responsible for timely report to the Buyer any major quality defect or problem during the manufacture, and the method for the solution of such defect or problem shall be approved by the Buyer; however, the Buyers app roval to the solution shall not relieve or mitigate the Suppliers liabilities to Equipment and the delivery on ti me. Where the Buyer carries out the re-inspection on such Equipment or materials shall follow the same terms and conditions. Where the expense caused by such rejection and re-inspection shall be born by th e Supplier. Where the Buyer fails to participate in the examination or inspection at the decided time and place, the Supplier shall deem that the Buyer is present and shall carry out the examination or inspection, and shall pr ovide the Buyer with the copy of relevant examination or inspection result as soon as possible. 1.13 Whether the Buyer participates in the manufacture supervision and test witness or confirms the inspection & test report or not, it shall not be deemed to relieve or mitigate t he quality assurance liability that should be shouldered by the Supplier. Any the Buyer suggestion, inspection, verification, testing, agree, approval of similar act (including no denial) shall not relieve or mitigate the Suppliers any inheren t liability, including the liability for its mistake, omission, error and failing to follow the technical specifications stipulated in this Contract. 1.14 All the Supplier provided Equipment and parts/components under this Contract shall have the Certificate of Compliance issued by Supplier upon ex-factory. 1.15 The Supplier shall be responsible for controlling and managing the quality of outsourced parts/components in the 2nd and 3rd tier components; however, it must carry out the inspection befor

e their entrance into the factory and keep the inspection records for the Buyers examination. The Buyer is entitled to carry out the quality review and witness on outsourced parts/components of Equipment. The quality in spection of all components shall be organized and carried out by the Suppliers dispatched personnel and the related q uality certification documents shall be provided. 1.16 Where the Buyers representatives and the Suppliers representatives fail to re ach a consensus on the result of shop inspection, any party may apply to a quality inspection institution designated by the State for inspection. The standards agreed in this Contract or compulsively stipulated in laws shall b e applied on this. The inspection certificate issued by the institution shall be the final inspection result with legal force and binding to both parties, the inspection expense shall be born by the responsible party. 1.17 After the arrival of goods at the Site, the Buyer is entitled to carry out the unpacking and receiving inspection by itself. The inspection & acceptance result and the Site unpacking report shall b e the valid evidence for the Buyer to ask the Supplier for shortage of parts, repair or substitution. 1.18 During Site unpacking, installation, commission or trial run, where it is discovered that due to the Suppliers reason, there is any damage, defect, shortage or quality, quantity doe s not conform with the Contract, the Supplier shall make timely repair, substitution or supplementation in ac cordance with the General Terms, the relevant expenses related to manufacture, repair, freight, premium and duty thus arise shall be born by the Supplier. The Buyer is entitled to deduct them from the outstanding payment and shall provide relevant receipts for them. 1.19 In principle, the time for the Suppliers repair, substitution or supplementa tion shall not affecting the progress of the work and shall not be later than 1 month after the defect, damage or shortag e is discovered; the time for the re-supply of key parts/components shall be decided by both parties through negot iation. 1.20 Where the Supplier entrusts the Buyer to repair the damaged Equip ment, all expenses arising from the repair shall be born by the Supplier; where the Supplier fails to timely or completely perform the above obligation, the Buyer is entitled to settle the issue by directly taking the measures what the Buyer considers is proper, the expenses thus arise shall be deducted from the payment for Equipment or from the bond. 1.21 Making no negative opinions on any Equipment, material, design or process s hall not affect the Buyers right to reject such Equipment, material, design or process. 1.22 Where Equipment passes all kinds of inspection required in this Contract an d comply with the requirements of this Contract, or the Supplier has made the substitution or repair ag ainst the defected Equipment as to the Buyers requirements, the quality assurance liability that should be born by the S upplier in accordance with the General Terms, Technical Agreement and Quality Clauses which shall not be affect ed. 1.23 The Supplier should keep friendly relationship with the Buyer to

ensure the equipment witness test execution smoothly. Any refusal or un-timely notification to the Buyer for test witness da te will lead to the Buyer failing to participate in this test. If this is the case, it is the mandatory for the Supplier to conduct test for the Buyer witness. The 10~ 50 % of the quality assurance cash deposit will be deducted or totally reject to payment if the situation is really worse. 1.24 The fee for the Buyer to re-witness test due to the Supplier reason will be deducted from the contract value. 1.25 Any additional cost happened due to the Supplier witness test place change will be deducted from the contract value. 1.26 The Buyer have the right to check and audit the Suppliers performance to man age the equipment quality, If the Supplier fail to meet the contract requirement due to fatal quality problem, the audit expense will be deducted from the equipment contract value. And the Supplier will be listed in the black list. 1.27 The Buyer reserves the right to conduct audits in the Supplier s and Sub-Su ppliers works to verify satisfactory operation of the Suppliers quality system and observance of schedule co mmitments at any time during the contract. The Supplier should submit Sub-Suppliers list to the Buyer for approva l. The Supplier should ensure the consistency of Sub-supplier with list during execution; the Supplier can not use the Sub-suppliers who are not on the approved Sub-suppliers list. 1.28 Upon the Buyer request, the supplier will make the assessment reports of hi s sub-suppliers available. 1.29 Sub-suppliers of critical components/material, such as major valves, alloy piping/fittings, castings, forgings, pressure vessels, shafts, impellers, large motors and main steel structure shall be monitored in accordance with the approved supplier quality control plan.