ESTABLISHMENT OF A DEDICATED FLOATING LIQUEFIED NATURAL GAS TERMINAL AT PORT QASIM

IMPLEMEMTATION AGREEMENT

between PORT QASIM AUTHORITY & PAKISTAN GASPORT LIMITED

April 2007

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TABLE OF CONTENTS

Page # Article 1 Article 2 Article 3 Article 4 Article 5 Article 6 Article 7 Article 8 Article 9 Article 10 Article 11 Article 12 Article 13 Article 14 Article 15 Article 16 Article 17 Article 18 Article 19 Article 20 Article 21 Interpretation and Definitions Execution of Agreement Grant of License: Right and Concession Consents Insurance, Indemnities and Risk Management Land Lease Construction Phase Immigration and Controls Safety and Security, Emergency and Hazards Custom Duties and Import Controls Foreign Exchange and Transfer of Funds Assignment and Transfer Force Majeure Operations Termination and Compensation Resolution of Disputes Notices Miscellaneous Overriding Provisions Tariff Arrangements Royalty and its Payment 1 6 7 12 13 15 17 18 19 21 22 23 24 26 27 28 29 30 35 36 37

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IMPLEMENTATION AGREEMENT
This Agreement is made on this _______________________ day of ____________________ 2007 between the Port Qasim Authority, established under the Port Qasim Authority Act, 1973 (Act XLIII of 1973) and having its headquarters at Port Muhammad Bin Qasim, Karachi (hereinafter referred to as “PQA” which expression shall include its successors in-interest and assigns) of the one part. AND The Pakistan GasPort Limited, a Company incorporated under the Law of Pakistan having its registered office at 7 Egerton Road Lahore, 54000 (hereinafter referred to as the “Company” which expression shall include its successors in-interest and assigns) of the other part; WHEREAS: (A) M/s. Associated Group (AG), hereinafter referred as the Sponsors, being desirous of establishing a dedicated Floating Liquefied Natural Gas Terminal at Port Qasim on Build, Operate and Transfer basis, submitted proposals as per PQA Guidelines. The Sponsors vide their letter No. 1350/06 dated January 12, 2007 accepted terms and conditions of the Guidelines and agreed to finance, design, construct, manage, operate and maintain the Floating LNG Terminal. The Company has been formed in accordance with the laws of Pakistan for the purpose of financing, planning, designing, constructing, operating, maintaining and managing the Floating LNG Terminal subject to terms and conditions set forth herein which have been mutually agreed upon and are, therefore, binding on both the parties.

(B)

(C)

NOW IT IS HEREBY AGREED AS FOLLOWS: Article 1 Interpretation and Definitions In this Agreement, 1.1 1.2 1.3 1.4 1.5 Expressions defined in Article 1.6 shall bear the respective meanings set out therein; The headings of Articles, clauses, schedules are for convenience only and shall be ignored in interpreting this Agreement; The singular includes the plural and vice versa; References to Articles, clauses, and schedules are, unless the context otherwise requires, references to Articles and clauses of, and schedules to this Agreement; and References to any Agreement, enactment, ordinance or regulation include any amendment thereof or any replacement of it in whole or in part.

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1.6

Definitions “Agreement” – means this Implementation Agreement between PQA and the Company including the following Schedules which shall form an integral part thereof: SCHEDULES SCHEDULE 1 - Implementation Schedule SCHEDULE 2 - Project Execution Guidelines SCHEDULE 3 - Project Scope SCHEDULE 4 - Site Plans SCHEDULE 5 - Proforma of Certificate of Successful Commissioning SCHEDULE 6 - Indenture of Lease SCHEDULE 7 - Form of Performance Bond SCHEDULE 8 - The Financial Model SCHEDULE 9 - Financing Plan SCHEDULE 10 - Letter of Intent SCHEDULE 11 - The Proposal SCHEDULE 12 - Consents SCHEDULE 13 - Schedule Formula of Royalty Payments to PQA by the Company SCHEDULE 14 - Draft of Security Manual SCHEDULE 15 - Draft of Port Operation Manual SCHEDULE 16 - Draft of Accident Prevention and Safety Manual SCHEDULE 17 - Draft of Emergency Manual SCHEDULE 18 - Schedule of Charges to be paid to PQA by the Company SCHEDULE 19 - Draft of Environmental Impact Assessment SCHEDULE 20 - Schedule of Depreciation of Assets SCHEDULE 21 - Schedule of Tariff SCHEDULE 22 - Integrity Pact "Company Representative" - means the chief executive of the Company or any other nominee duly appointed and notified in writing by the Company from time to time. "Concession" shall have the meaning as set forth in Article 3.1 (a). "Concession Period" means the duration of concession set out in Article 3.23. "Completion Date" - means the date of completion of the project as evidenced by the certificate of successful commissioning. "Consents" - means undertakings, all approvals, consents, Agreements, permits, decisions or matters required from Government of Pakistan (GOP) or any relevant authority. Consultants" - mean any Consultant(s) experienced in LNG, LPG & NGL Terminal design, its engineering and appointed by the Company under intimation to PQA from time to time to carry out Investigations and to perform such other engineering and consultancy services for various components of the project as the Company may require. "Contractors" - means all Contractors engaged by the Company in the performance of the Project including Contractors under the engineering procurement and construction Contract(s) (and their respective Sub-Contractors) in their respective capacities as such and their respective successors and permitted assigns as notified from time to time by the Company to PQA. "Customers" - means all the persons/companies who intend to or allowed to use the facility.

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means the depth of water a ship draws required to keep it afloat. "Implementation Schedule" . "Facility" . testing and commissioning of various facilities for the project. construction and erection of works and erection. overall capital.denotes dead weight tonnage. or appointed by the International Chamber of Commerce Paris (ICC). trestle / submerged pipeline. "Draught" . "Guidelines" . appointed by the Company. "Dispute" . /var/www/apps/conversion/tmp/scratch_3/168075692. completion.means the guidelines issued by PQA for the Project. "GOS" .means the date indicated in this implementation Agreement. as contained in schedule 9.doc (3) . working capital. “Expert” . financial cost.means the timetable for the implementation of the project set forth in Schedule I. Procurement and Construction (EPC) Contract” – means the Agreements to be entered into between the Company and the Contractor for design. "Financial Closing" .means an internationally experienced design engineer of LNG. "Date of Effectiveness” – means the date from which this implementation Agreement becomes effective as defined in Article 2.means the Agreement or Agreements and documents (to be) entered into between the Company and certain local and foreign lenders for the purpose of providing the funds necessary to complete the Project including any and all Agreements and documents providing for security for such financing. "Financial Model". "Financing Plan" .means the lawful currency of the United States of America. "Dollar" and "$" . upon the disagreement of the parties on the appointment of the expert.bears the meaning attributed thereto in Article 16. under the ICC rules for expertise. engineering. The expenses for appointment of the experts in either case shall be on account of the Company. piping and other allied facilities. procurement.means the signing of the Financing Agreements for the Project and the fulfillment of all conditions precedent to the first disbursement of funds there under.means the Government of Sindh.means a calendar day.means the schedule of the cost of the project including interest during construction. "DWT" . equity subscriptions. "GOP" .means the model contained in schedule 8 to this Agreement. as recommended by the Consultants and agreed by PQA. LPG & NGL handling facilities. “Engineering."Day" .includes the jetty. "Financing Agreements" . "Date of Signing" .means the Government of Pakistan.

includes port dues. pilotage. financing. policies and notifications made pursuant thereto. wharfage. "Project Scope" . or any other nominee duly appointed and notified in writing by PQA from time to time. "PQA Engineer" . "PQA Act" . "Performance Bond" . fire fighting service charges.means (i) the parties who have made or will make available to the Company credit in the form of loan(s). a loading/unloading platform. any political or administrative subdivision thereof and all rules. “Land Lease” – means the Agreement to lease and the indenture of lease to be entered into between the PQA and the Company in the form of Schedule 6 for leasing of the site to the Company. appointed from time to time and notified in writing to the Company to act as PQA Engineer. charges of utilities and other common services. light dues.means the Port Qasim Authority Act. including the Jetty. lease charges. PQA . without limitation. berthing and mooring fees. capable of handling upto 75000 DWT vessels in accordance with the project scope including. /var/www/apps/conversion/tmp/scratch_3/168075692.means the unconditional bond to be issued by a scheduled bank of Pakistan having AA rating and furnished by the Company to PQA in the form as prescribed in schedule 7 in accordance with the terms of Article 3.means the scope of work of the project as set forth in schedule 3.means the DG (P&CW) PQA. mooring and berthing dolphins loading/unloading arrangements. start up. export credit(s) or other financing Agreement(s).means DGM (PSP).18. engineering. operation. from time to time make other credit facilities available to the Company. systems and parts incidental thereto. royalty. maintenance. drawing. dues and charges pursuant to PQA Act as promulgated from time to time.“Jetty” – means the jetty to be constructed by the Company at Port Muhammad Bin Qasim between Link Creek (Asad) & Korangi Creek. completion. extra pilotage. any other duly authorized representative of PQA. constructing. "Project" .doc (4) . “PQA Consultants” – means the Consultant carrying out the business as Consulting Engineer(s) under the laws of Pakistan or any professional appointed by PQA pursuant to Clause 3. “Laws of Pakistan” – means all laws of Pakistan or.means a month according to the gregorian calendar. tug charges. together. in each case. trestle structure. 1973 (XLIII of 1973) duly amended from time to time. to finance the project pursuant to the financing Agreements and (ii) parties who. storage area and development after designing. regulations. "PQA Representative" . "PQA Charges" . supply.or. "Month" . and other PQA scale of rates. with their respective successors and assigns.16. ancillary structures. commissioning.means the establishment of a dedicated Floating LNG terminal and will also handle LPG & NGL at Port Qasim Karachi. procurement. "Lenders" . where applicable. pipelines whether underground or otherwise and all other sections. and management of the facility by the Company and all activities incidental thereto. insurance.

"Successful Commissioning" .G. /var/www/apps/conversion/tmp/scratch_3/168075692. trestle / submerged pipeline. all as are particularly described and shown on the "Site Plan" schedule 4 of this Agreement.). through. (CDGK) Karachi Water and Sewerage Board (KWSB). the insurance policies. power. "Tariff' . "Royalty" . Water and Power Development Authority (WAPDA).shall have the meaning as set forth in Article 20. including the Jetty.includes GOP. “Security Package” means: (i) (ii) (iii) (iv) (v) (vi) (vii) this Agreement.means the agreed amount the Company shall pay to PQA as set forth in schedule 13. institution or agency of GOP or GOS and. Central Board of Revenue (CBR). water.doc (5) . "Services" . Consents including GOP concessions. to the customers. Sindh Environmental Pakistan Agency (SEPA). and the securities to be established under or pursuant to the Financing Agreements. railways and the sea. Pakistan Navy and Pakistan Customs. piping and any other associated facility and equipment required to handle LNG.26.means the Associated Group (A.means the lawful currency of Pakistan.e. Karachi. "Terminal" . the engineering. LPG & NGL as per project scope defined in schedule-3 of this Agreement. Lahore. procurement and construction Contract(s) (the "EPC Contracts").shall have the meaning as set forth in Article 3. Pakistan Telecommunications Company (PTCL). the land lease. Karachi Electricity Supply Corporation (KESC). “Sponsor” . "Rupee" .means all those services which are rendered by the Company and are not compensated by the tariff including but not limited to the supply of utilities i. and all easements. labour etc.means an area of adequate space to accommodate the facility at Port Muhammad Bin Qasim. or on any part of which.means the dedicated Floating LNG Terminal to be developed for the Project at Port Muhammad Bin Qasim. above or below the ground on which. any of the Company's assets and/or liabilities and usage Agreements with customer's of the Company. rights of way and access from public highways. the facility is to be built and operated. "Year" . the State Bank of Pakistan (SBP). together with any ancillary project on."Relevant Authority" . authority. Pakistan Railways.means a year according to the Gregorian calendar. Oil & Gas Regulatory Authority (OGRA). GOS or any department. shall include City District Government. without limitation. Sui Southern Gas Company Limited (SSGCL). "Site" .

Article 2 - Execution of Agreement 2.1 This Agreement shall become effective on the date when all the events referred to in Article 2.3 have taken place (hereinafter referred to as date of effectiveness), provided that Article 6 will become effective on the date of signing. In case all the events as mentioned in Article 2.3 have not taken place within 180 (one hundred and eighty) days from the date of signing then the parties shall mutually agree to extend the period for all the event in Article 2.3 to be fulfilled. Before the date of signing the following events will have taken place: 1. 2. 3. 2.3 Preliminary financing plan would have been provided to PQA. Performance bond as per schedule 7 effective from the date of signing will have been furnished. Written approval of the board of directors of the Company and PQA for entering into this Agreement obtained.

2.2

The Date of Effectiveness, is achieved when all the following events will have taken place: 1. 2. 3. 4. 5. Agreement to Lease is executed by the parties and vacant possession of the site given in accordance with the terms of Agreement to lease Financing Agreement in place. EPC Contracts executed. Insurance Policies obtained. The consents, as mentioned in schedule 12 are obtained.

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Article 3 - Grant of License: Right and Concession 3.1 (a) PQA hereby grants to the Company the effective concession right and license. (i) to design, finance, insure, construct, test, commission, complete, operate, manage and maintain the dedicated Floating LNG Terminal at Port Qasim on build, operate and transfer (BOT) basis in accordance with project scope and the terms and conditions, contained in this Agreement. The concession to operate Floating LNG Terminal is being offered on a nonexclusive basis. PQA shall retain its right to offer setting up of similar LNG, LPG & NGL Terminal to other parties at Port Qasim.

(ii)

3.2

The Terminal shall be sufficiently complete to be capable of handling 75,000 DWT vessels and have the capability to handle (import, produce, export and distribute subject to relevant Government authorities approvals) not less than 3 million tonnes of LNG, LPG & NGL per year. PQA shall maintain sufficient depth in the channel at all times to accommodate ships drawing draft upto 12 meters. The Company shall be responsible for the capital dredging of the berthing basin, the approach channel & turning basin for Floating LNG Terminal. The Company however, shall be responsible for the maintenance dredging of the berthing basin only as illustrated in the sketch attached to the Schedule No. 4 and maintain the berthing basin. PQA shall be responsible for the maintenance dredging of the approach channel and the turning basin. Location for the dumping of dredged material shall be decided between PQA and the Company based on relevant studies by the Company. The cost of capital dredging of turning basin only shall be recovered by the Company by paying 50% of applicable royalty to PQA in the amount equal to the capital dredging cost thereof. The Company will not charge any interest on the amount so adjustable, from PQA. The quantities of the capital dredging in respect of the turning basin only shall be verified by the PQA hydrographic department. All work for the construction of the facility and any expansion or modification thereof shall be undertaken in a manner that does not unreasonably interfere with the safety of navigation, or pose an unreasonable threat to human safety or health or to the environment. Construction of the facility shall be undertaken diligently and expeditiously. The Company shall allow Inspection of the construction, operation and maintenance of the facility at any time by the PQA or its duly authorized representatives and by GOP or other relevant government officials, pursuant to their responsibilities under the laws of Pakistan. The Company shall cooperate with all such inspection personnel and shall provide them such access, facilities, services and information as they reasonably may require in the performance of their responsibilities, but it shall not diminish or reduce the obligation of the Company to design, construct, maintain, manage, operate the facility without any interference or interruption. Jetty operations, will be governed by the Port Qasim Authority Regulation 1981, published in the extra ordinary gazette of Pakistan dated 'October 17, 1981 and operations manual which shall be developed and be completed during construction of the facility. PQA is allowed use of the jetty in case of any special requirement, free of cost. The facilities constructed by the Company shall conform to the standards of Oil & Gas Regulatory Authority (OGRA) and Sindh Environmental Pakistan Agency (SEPA). The Company, during the process of constructing its facilities and later on during the operation of the Facility, will comply with all federal and provincial regulations as well as rules and bye-laws framed by PQA consistent with the notified statutory standards, Including International Maritime Organization (IMO) and International Maritime Dangerous Goods (IMDG) regulations related to the protection of the environment and to discharge from the premises any trade or other effluent.

3.3 3.4.1

3.4.2 3.4.3 3.5

3.6

3.7

3.8

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3.9

Before the date of effectiveness, the Company shall have submitted to PQA a firm financing plan describing the financial structure of the Project sources and amounts of both debt and equity, and the schedule upon which financing shall be secured. The Company shall adopt all measures necessary to prevent hazards to human safety and health property and to the environment that may arise from any activity concerning the construction, operation or maintenance of all or any part of the facility. Neither the rights stipulated in Article 3.1 nor any right or privilege offered hereby, except as provided in Article 12.2 shall be assigned or transferred by the Company without the prior consent of PQA which consent shall not be unreasonably withheld. The Company shall not amend or supplement. any document approved by PQA without the consent of PQA. PQA shall arrange passage, berthing, sailing and shifting of ships carrying liquid or any cargo to be handled at the facility strictly on first come first served basis, subject to PQA operational exigencies. However, sequence of berthing of ships calling at the terminal will be as per terminal's operating policy, as mutually agreed to between the Company and PQA.

3.10

3.11

3.12 3.13

3.14 3.15

PQA shall use its best endeavors to provide safe movement to and from the berths at the jetty for all vessels. PQA shall be responsible for the provision of all necessary pilotage, tugs, mooring launches, at PQA's normal charges. Assistance for fire fighting shall be provided on request. Design and drawings of civil works shall be provided by the Company to PQA. Final design, specifications, cost breakdown, drawings of all electrical and mechanical works of the project and any later additions, alterations thereto, prepared by the Company, shall be subject to PQA Engineer's approval for compliance with project scope. PQA Engineer shall within thirty (30) days of receipt of such plans or alterations thereto, return them to the Company as compliant or if otherwise with detailed remarks indicating any noncompliance and in case these are not returned within thirty (30) days as aforesaid, these shall be deemed to have been approved. The Company shall however ensure that all features of the facility are according to the accepted international practices, standards and specifications.

3.16

3.17.1 The construction of the project shall be monitored by the PQA Engineer and PQA Consultant to ensure compliance of specification and the implementation schedule. 3.17.2 PQA shall appoint the Consultant to carry out the duties as specified by PQA with respect to monitoring construction activities and providing quality audit; 3.17.3 The Company shall pay to PQA Consultant a Lump Sum fee of US$ 200,000, converted to Pakistani Rupees at the official buying rate on the date of signing of I.A. 3.18 3.19 The Company shall pay to PQA all charges as specified in schedule 18. The Company, on the date of signing of this Agreement shall provide to PQA in the first instance an unconditional and irrevocable performance bond issued by scheduled bank of Pakistan having AA rating, in the value of USD 1 million (converted in Pak Rupees at the official exchange rate; selling TT/OD prevailing on the date of issuance of the Performance Bond by the Bank), valid until one (1) year, in the form as set forth in schedule 7. The Company shall provide a new performance bond of the same value and form not less than one (1) month before the expiry of the so provided performance bond (8)

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which shall be valid until one (1) year after successful commissioning of the project in accordance with the Project Scope and this Agreement. 3.20 3.21 Completion of the project (completion date) will be within thirty (30) months from the date of effectiveness. (a) (b) The data and various documents/reports etc. handed over to PQA or the Company, as the case may be, will be kept strictly confidential. All reports and drawings provided to PQA by way of evidence of compliance with Schedule 3 shall first be submitted in a draft form. Construction drawings shall be provided when PQA completes its review and accords approval for compliance with Article 3.21(e). "As-Built" drawings shall be submitted within three months after completion of construction. The Company shall submit to PQA monthly reports on the progress of work in a mutually agreed form. The Company/PQA shall exercise all reasonable skill, care and diligence in the discharge of their duties and in so far as any of their duties are discretionary it shall act fairly between PQA/the Company and concerned third parties. Neither the Company nor PQA shall take any action which may seriously jeopardize the works or may lead to unnecessary disputes, arbitration or litigation between third parties/ PQA or the Company. Documents/designs/drawings/schedules requiring PQA’s review and approval for compliance with the project scope will be submitted to PQA in accordance with the Implementation Schedule. Article 3.16 of this Agreement and the “Project Execution Guidelines” schedule 2 have more detailed procedures to deal specifically with PQA compliance reviews and both parties shall be bound by the said procedures.

(c) (d)

(e)

3.22

PQA will provide all available hydrographic and soil data regarding the site and the navigation channel to the Company within seven (7) days from the date of notice given by the Company requesting such data. PQA will also assist the Company if it requests by collecting any other hydrographic data that may be required for the detailed designing of the project and that can be collected by PQA through its own resources/owned equipment, subject to the payment of its charges by the Company. The Company should also make best endeavours to ascertain the authenticity of the data, so provided by PQA, or other government agencies. PQA without any Financial Liability shall help the Company in obtaining all the requisite permissions/licenses from the relevant authorities.

3.23

3.24a. The concession for handling LNG, LPG and NGL as mentioned in Article 3.1 and the indenture of lease mentioned in Article 6 are granted by PQA to the Company for thirty (30) years from the date of effectiveness (constituting the concession period) extendible by a further period of thirty (30) years on mutually agreed terms and conditions . Negotiations to arrive at such mutual Agreement shall commence five (5) years prior to the expiry of the first thirty (30) years period and shall be completed within a period of two (2) years thereafter. In the event no mutual Agreement can be arrived at, then this matter will be referred for arbitration with each side appointing an arbitrator. The Umpire shall be appointed by the two arbitrators. The decision of the arbitration shall be binding on the parties. In case decision of the Umpire is not acceptable to the Company, the assets will be transferred to PQA for a token consideration of Rupee one only.

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25 The Company shall provide a suitably furnished. The Company shall submit a copy of audited annual report to PQA every year. iv) v) c.b. gate and security office etc. by loading or unloading one tanker. Within thirty (30) days of the date of the Consultant's certificate. diesel generator sets etc. etc. but not limited to the following: Land leased by PQA for the construction of the Terminal facility inclusive of the right of way for trestle/submerged pipeline upto shore establishment. walkways.doc (10) . sewerage. booster pumps. LPG & NGL handling performance parameters specified in Schedule 3. upon the Company demonstrating to PQA.26 (b) /var/www/apps/conversion/tmp/scratch_3/168075692. air conditioners. and 3. Infrastructure viz. upto shore establishment. equipped and maintained office space of reasonable size at the site for exclusive use of PQA representative and his staff during the construction period. networks of electricity. PQA shall issue the “Certificate of Successful Commissioning” in the form of schedule 5 or give their reasons as to why this certificate of successful commissioning can not be issued. valves and fittings. that the facility is capable of performing in accordance with the LNG. ii) iii) Furniture and fixtures at the above facilities including office furniture. telecom system. "Successful Commissioning" will occur when: (a) The Consultant certifies to the PQA Engineer that the work included in the project scope (schedule 3) has been functionally completed in all respects and the facility is capable of performing in accordance with schedule 3. The Company shall review the reasons and remove them to the satisfaction of PQA. fire fighting. Structures comprising of central control building. computers. Stores and spares pertaining to above listed items only. pipelines. Additions/alterations in the assets of the Project made during project period. i) The project assets shall include. 3. road. various office fixtures and equipment. Trestle / submerged pipeline. All equipments/materials installed for the project including MLA or other mutually agreed loading/unloading arrangement. parking area. All construction on the above land comprising. water. breasting and mooring dolphins. Jetty comprising platform. fenders and bollards etc.

doc (11) . The cost and expenditure on the appointment of such expert shall be borne by the Company. LPG & NGL handling facilities to inspect the facility. The date on which the expert certifies the capability of the facility to perform in accordance with the LNG. the Company shall forthwith agree to appoint an expert (the "Expert") internationally experienced in the design of LNG. LPG & NGL handling performance parameters specified in schedule 3 shall be the date of successful commissioning and the expert's certificate shall be deemed to be the certificate of successful commissioning issued as contemplated in this Agreement.(c) In the event the Company does not agree with the reasons for not issuing the "Certificate of Successful Commissioning" as advanced by PQA. /var/www/apps/conversion/tmp/scratch_3/168075692.

procure. equip. PQA will provide the provision of berthing facilities to the Company and its Contractors from existing berths and moorings at Port Qasim for the purposes of unloading. operate. goods. consents and approvals under the PQA Act or otherwise within its power and jurisdiction necessary for the Company to construct. equipment. PQA shall not be responsible for any delays in obtaining consents. handling and storage of all plant. the Company may construct. own. rest houses for operational staff for upto 24 hours/day stay may be allowed.5 /var/www/apps/conversion/tmp/scratch_3/168075692.3 4.Consents 4. Construction and maintenance of the residential accommodation for the employees of the Company and/or its Contractors will not be allowed. 4.1 The Company shall make all applications (whether initial or renewal applications) for any further consents required to the appropriate relevant authorities and shall diligently pursue all such applications.Article 4 . PQA without any Financial or any other Liability. With the approval of PQA. However.doc (12) .2 4. and maintain its office on the site. insure. operate and maintain the facility. maintain and expand the facility in accordance with the project scope and this Agreement. or cause to be constructed. PQA without any Financial or any other Liability. vehicles and cargo imported in connection with and related to the construction. PQA without any Financial or any other Liability. assist the Company in the performance of its obligations to design. shall promptly issue or cause to be issued all permits. However. if and when requested by the Company. operation and maintenance of the facility subject to payment of normal PQA charges and subject to availability of berths/moorings. shall assist in expediting the said applications with the relevant authorities. Such office will be constructed and maintained in compliance with applicable health and safety standards.4 4. construct and complete. whenever and wherever necessary. shall.

Insurance. its agents and servants or the failure of PQA to take reasonable steps in mitigation thereof. operation or maintenance of the project and/or the facility resulting from any negligent act or omission of PQA.1 The Company will bear responsibility for loss of or damage to berths. such approvals not to be unreasonably withheld. death or injury (or any claim in respect thereof) to the extent that it was caused by any act or omission of the Company and/or its Contractors or the failure of the Company and/or its Contractors to take reasonable steps for mitigation thereof. death or injury to any person (or any claim against the Company and/or its Contractors in respect thereof) during the design. services or any other property. The Company shall insure against but not limited to the following. PQA will bear responsibility and shall indemnify the Company for loss of or damage to property. The indemnity shall not extend to any loss. construction. The Company shall produce to PQA. its agents. its agents and servants or the failure of PQA to take reasonable steps in mitigation thereof. Indemnities and Risk Management 5. damage. the Company shall insure against all losses or damages from whatsoever cause arising for which the Company and PQA are legally liable under the terms of this Agreement and in such manner that PQA and the Company are both covered from the commencement to the completion of construction of the project and during operation of the facility. The construction plant and other items brought on to the site by the Company to the replacement value of such construction plant 5. operation or maintenance of the Project and/or the Facility resulting from any negligent act or omission of the Company.2 (b) (c) (d) (ii) Such insurance shall be effected with reputable Company/companies for which the panel of insurance companies along with terms of insurance would require prior approval of PQA.Article 5 . damage. the policy or policies of insurance and the receipt for payment of the current premiums. identifiable risks: (i) The works for the time being executed to the estimated current contract value thereof or such additional sum as may be specified therein by the Company together with the material for incorporation in the work at its replacement value. The Company will hold PQA fully indemnified in respect thereof. The said indemnity shall not extend to any loss. death or injury to any person (or any claim against PQA in respect thereof) during the design. save and except in case of “Force Majeure”. Without limiting its obligations and responsibilities under sub-clauses (a) and (b) above. (a) Subject to Port Qasim Authority Act 1973. From the commencement of work till completion of the project and during operation of the facility. death or injury (or any claim in respect thereof) to the extent that it was caused by any act or omission of PQA. the Company shall take full responsibility for the care thereof so that the facility shall be in good order and condition and in conformity with every respect with the requirements of this Agreement. employees and/or its Contractors without recourse to PQA. or the PQA's representative. /var/www/apps/conversion/tmp/scratch_3/168075692.doc (13) . construction.

2(c) at its cost during construction phase will be: i.6 Neither party to this Agreement shall have any liability to pay compensation or damage to the other.5 during the periods mentioned therein.5. The Company shall not be in breach of its obligations thereunder if and to the extent that any particular Insurance is unavailable for reasons other than any negligence or default by the Company. The following cross liability clause shall be made a part of the policies: "In the event of claims being made by reason of (i) personal and/or bodily injuries suffered by any employee or employees of one insured hereunder for which another Insured hereunder is or may be liable. iii. or (ii) damage to property belonging to any insured hereunder for which another insured is or may be liable. Marine Cargo Insurance Contractors All Risk Insurance Workmen's Compensation and Employer's Liability Insurance Third Party Liability Insurance Vehicle and vessel Insurance 5. iv. then this policy shall cover such insured against whom a claim is made or may be made in the same manner as if separate policies have been issued to each insured hereunder.2 extend to indirect or consequential damages. howsoever a cause of action may be framed and including. 5. except with respect to the limits of insurance". The Company at its sole cost and expense.3 5. shall obtain and maintain during the term of this Agreement.4 In no case shall the indemnities set out in Articles 5. vi. 5.1 and 5. iii. Property All Risk Insurance Machinery Insurance Workmen's Compensation Policy & Employer’s Liability Insurance Public/Third Party. PQA acknowledges that the lenders may require to be designated as the loss payees. Each party shall promptly notify the other party of any claim or proceeding in respect of which it is entitled to be indemnified under this Article 5.5 as the case may be.7 /var/www/apps/conversion/tmp/scratch_3/168075692. provided that this provision is not intended to constitute a waiver of any rights of one party against the other in respect of matters unrelated to this Agreement or any activity contemplated by this Agreement.doc (14) . ii. iv.2(a) will be covered by the Insurance.5 The insurance to be taken out by the Company as per obligation imposed under Article 5. v. liability in negligence except pursuant to or for breach of this Agreement. Such notice shall be given as soon as reasonably practicable. v. without limitation.2(d) at its cost to cover the operation of the facility will be: i. but in any event within fifteen (15) days after the relevant party becomes aware of the same. The insurance to be taken out by the Company as per obligation imposed under Article 5. ii. the insurance set forth in Article 5. beneficiaries or additional insured under such policies mentioned in Article 5. including Cargo Liability Insurance Vehicle and vessel Insurance Burglary Insurance The Public/Third Party Liability Insurance will be arranged by the Company in such a manner that obligations imposed on PQA under Article 5.

including stamp duty and registration fee. annual land rent and other charges as applicable in the circumstances in respect of various areas of land included in the land lease. until all moneys. PQA shall continue to retain first and prior lien on above assets for occupancy 6. or the scheme and arrangements devised by or for PQA in connection with the grant of leases of its property.doc (15) . charge or mortgage.24. transfer. All the interests and rights of the Company under the land lease shall be assignable and transferable in favour of the lenders or their nominees. shall be payable by the Company to PQA as of the dates on which vacant possession of the various portions of land is taken by the Company from PQA. Such rent and other charges as applicable in the circumstances.Article 6 . The Company shall be responsible for all payments to be made in connection with the registration of the indenture of lease in accordance with the laws of Pakistan. (unless the Lenders otherwise agree). The Company shall pay occupancy charges. In the event of such assignment. The Company shall exclusively be the owner of the buildings. the land lease shall not terminate. it is agreed between the parties hereto that the land lease shall incorporate the following terms and conditions and. PQA (as lessor) shall grant to the Company (as lessee) an indenture of lease in respect of the site (the "Land Lease") and the parties shall cause completion.3 (b) (c) (d) /var/www/apps/conversion/tmp/scratch_3/168075692. However.1 Upon the request of the Company. structures and constructions raised by it on the Site and all facilities established by it. accordingly. PQA shall ensure that appropriate actions. secured and outstanding to the lenders are repaid notwithstanding the termination of this Agreement. The indenture to lease shall terminate in any event on the date of its expiry unless renewed in accordance with (a) above.Land Lease 6. All such assignment /transfers/charges/ mortgages shall be duly recognized by PQA and duly registered. Notwithstanding/anything contained herein.2 6. The renewal shall be applicable provided that mutual Agreement regarding extension of operation has been reached under Article 3. steps and measures are taken to give effect to the same as the paramount terms and conditions of the land lease: (a) The indenture of lease shall be for a period of thirty (30) years effective from the date of effectiveness with further renewals for a period of thirty (30) years. For any assignment and transfer and or creation of charges or mortgage as aforesaid any fees or charges shall be payable in respect of any of the said matters as applicable. with all due dispatch of such formalities as are incidental to the execution and registration of the Indenture of lease granted by PQA in the format as attached in Schedule 6. and charges and mortgages over the said interest and rights of the Company may also be created in favour of the lenders or their nominees with the consent of PQA which shall not be unreasonably withheld.

the mortgage of the site being owned by PQA shall not be permitted but the leasehold rights of the Company and its assets created over the as aforesaid shall be permitted to be mortgaged etc. or during any subsequent extensions thereto. subject always to the Company's established personnel policies and standards. as per reserved quota of 12%. subject to payment by the Company of PQA dues and charges.4 Throughout the term of the indenture of lease. maintenance and operation of the facility and all ancillary and incidental facilities.doc (16) . which policies and standards shall prevail.15 of this Agreement. as provided in (c) above.charges. Except for those matters provided in Article 4. or subject always to the requirements of the service Contractors relating to qualifications. /var/www/apps/conversion/tmp/scratch_3/168075692. Further. the Company shall be required to submit all drawings to PQA for approval which shall be dealt with in accordance with the provisions of Article 3. rent and other charges. (f) (g) 6.16 of this Agreement. commencing on the date of issue of the certificate of successful commissioning. the provision of a temporary rest house for its employees etc.13 and 3. Employment of workers for the purposes of the Company shall exclusively be undertaken by the Company without any restriction being imposed by PQA or any other authority. skills and experience as the case may be. will provide the services as listed under Articles 3. It is being understood. that the Company will consider to employ or encourage its service Contractors to employ dependents of PQA's employees/locals of the area. management. all in accordance with the items and conditions of the land lease and this Agreement.. including for construction.4 of this Agreement. (e) The Company shall have the unfettered right and entitlement to use the site and/or rights attached with it and/or the infrastructure related thereto for its exclusive use and enjoyment.

1 The Company shall engage the Contractor(s) having relevant experience and being competent enough to undertake the envisaged job to design. The Company shall cause the Contractor(s) to adhere to the implementation schedule (schedule – 1).doc (17) .2 7.4. however. the Contractor(s) will be required to demonstrate compliance with timely output of such system. information with the Company's system and co-operate with the Company to establish an interface procedure between the two systems. Allocation of an area in the vicinity of the construction site. equipment and materials needed for construction of the proposed works subject to availability. test. Access to an existing PQA berth for unloading plant. construct. engineer.3 Co-ordination of the movement of craft around the site. 7.4.4 Overall Project Schedule Milestone Schedule 7.4. 7.2 7.4.Construction Phase 7. Allocation of suitable and adequate area for Contractor(s) as close to the construction site as possible at the request of the Company.Article 7 . The provision of a PQA berth on priority basis for use by the Company for loading barges and work boats subject to availability and on payment of normal port charges. start up and commission the project in accordance with the project scope and as per Agreement and as per international practices.3 During the construction phase. The Company's project execution guidelines (as per Schedule 2) will be provided to the Contractor(s) and the Company shall require strict conformity with the implementation schedule. standards and specifications and notify PQA accordingly. PQA shall ensure.1 7.4 7. The Contractor(s) may utilize their own project management system. subject to Hydraulic & Environmental study for the disposal of dredged material or other spoil and debris.4.5 /var/www/apps/conversion/tmp/scratch_3/168075692. The minimum output will be: 7.

for foreign nationals involved in project. dependent’s passes. if necessary. In making such application. assist in expediting work permits. PQA shall.doc (18) . In the event any permits or approvals are required from PQA. if requested. employment passes.Article 8 – Immigration and Controls The Company shall make applications to the relevant authorities as per their procedures. /var/www/apps/conversion/tmp/scratch_3/168075692. PQA will grant such permits and approvals promptly and not unreasonably withhold such permits or approvals. the Company shall comply with all laws of Pakistan applicable thereto. visas and other permits.

plant and all things relating to the Project under its control on/off site. adverse weather. In this respect the Company shall take all reasonable and proper steps for protecting. life saving equipment. lighting and watching all places on. requirements for personnel protective equipment. 9. shall be detailed in an accident prevention and safety manual which will specify and incorporate the responsibilities and obligations of the Company. securing. natural disasters. industrial hygiene. employees. personnel. medical casualty. spills and in relation to dealing with such emergency situations or spill hazards will be included in a manual. its servants. Such security forces if provided by GOP or GOS will be under the exclusive control and direction of GOP or GOS with the consent of PQA.6 PQA and the Company are responsible for accident prevention and safety in their respective areas of jurisdiction within the meaning of this Agreement. Measures for fire protection.4 9. explosion. works. The Company will endeavor to ensure that no contraband or drugs are allowed anywhere on the facility. handling of hazardous materials. all other off-shore operational safety measures will be the responsibility of PQA. crane operation. The policies and administration of the Company's safety program covering accident prevention and safety procedures will include the co-ordination of these with PQA. in turn will obtain necessary clearance from the PQA and Customs. machinery guarding procedures. The responsibilities and obligations of PQA and the Company in connection with the prevention of emergency situations.Article 9 . off or about the Project which may be dangerous due to natural. All other provisions related to security requirements of the Project on. shall be allowed at the facility. The Company will have a fenced area which will be out of bounds for unauthorized personnel. Emergency handling procedures designed to mobilize employees in a planned manner to respond immediately to emergency situations arising out of tanker casualty. Emergency and Hazards 9. accidental and criminal causes to the Company Employees or to any other person whomsoever. casualties arising out of damage to the port and its facilities by accidents such as fire. Except those pertaining to Company’s onshore and offshore establishment facilities assets and equipment. overboard and driving 9. No such request by the Company shall forfeit the Company’s right to invoke Clause 13 should conditions occurring at site so require nor shall GOP's or GOS's providing such security forces be deemed an admission or Agreement by PQA that Force Majeure has occurred. offshore personnel transfer. The Company's internal security arrangements and policies will be included in a manual. completion. including but not limited to. Unauthorized persons and cargo will also not be allowed entry at the Jetty without proper authorization from the Company who. operation and maintenance of the Project. jetty facility.1 The Company shall be solely responsible for protecting and securing the site. aircraft disaster. Under extraordinary circumstances the Company may itself provide or request additional security forces from GOP or GOS or private security services to meet unusual security requirements. accident prevention policies and procedures.2 9.3 9. gas accumulation and explosion prevention will be covered in the manual.5 9. agents and representatives.Safety and Security.7 /var/www/apps/conversion/tmp/scratch_3/168075692. off or about the facility and in respect of vessels using the jetty. except authorized security guards. No person with arms and explosives. on-shore/offshore and inside/outside Port Qasim area during the execution.doc (19) .

Use of mobile phones.10 9. 9. serious and non-serious injuries. Through its control and communication center (referred to as the Control Tower) PQA will be responsible for communicating timely warnings regarding such situation. shut down procedures. will be permitted at the facility by PQA unless restricted or forbidden by GOP. fatalities. walkie-talkies. 9.9 9. methods of dealing with accidents arising out of natural. Both PQA and the Company will organize their own teams and procedures for dealing with various types of medical casualties. pager systems etc. The alarm types and systems to be used by PQA and the Company will be coordinated through the control center of PQA. In addition. PQA and the Company will develop a joint program for emergency drills on regular basis. The Company will document and publicize evacuation contingency procedures. a station bill indicating clearly the emergency duties of all personnel will be posted prominently at the facility. spill contingency plans etc.doc (20) . accidental and criminal causes.8 PQA has primary role to play in any emergency situation.accidents are of general applicability to both PQA and the Company and will be detailed in the manual.11 /var/www/apps/conversion/tmp/scratch_3/168075692. The Company will be responsible for fire-fighting within the facility.

LPG & NGL or other products handled and/or transmitted through the Floating LNG Terminal which are not owned by the Company. customs duties.1 The Company shall have no liability whatsoever in respect of payment of any import license fees.doc (21) . Iqra and import and export licences for both within and outside Pakistan attributable to Company and to follow the Import/Export sales of the GOP/GOS issued/levied through Pakistan Central Board of Revenue and other Departments/Organizations. sale Tax. Iqra surcharge.2 /var/www/apps/conversion/tmp/scratch_3/168075692. fees. surcharges and levies. 10.Custom Duties and Import Controls 10.Article 10 . charged or levied on the LNG. The company will be fully responsible for timely payments of all custom duties. Octroi or other GOP/GOS Levy/Tax whatsoever.

as amended.Article 11 . /var/www/apps/conversion/tmp/scratch_3/168075692.1 The foreign currency exchange and transfer abroad of all funds shall be governed by the State Bank of Pakistan under Foreign Exchange Regulation Act.Foreign Exchange and Transfer of Funds 11.doc (22) . and rules and regulations made thereunder and other applicable laws of Pakistan. 1947.

10 the Company may assign or create any security/charge(s) over its rights and interests in under or pursuant to (a) this Agreement.2 Neither party may assign or transfer this Agreement or its rights or obligations hereunder without the prior written consent of the other party. Notwithstanding Articles 3. The holder of any security created under this Article 12. which shall not be unreasonably withheld.A). (b) any other Agreement. PQA shall continue to retain first and prior lien on above assets for land occupancy charges. However. document or instrument included within the security package. Unless the lenders otherwise agree. as provided herein subject to the consent of the PQA. without limitation.Article 12 .Assignment and Transfer 12. The mortgage of the site being owned by PQA shall not be permitted but the leasehold rights of the Company and its immovable assets created over and on the site as aforesaid shall be permitted to be mortgaged. the security/charge so created (including.2 shall not be prevented or impeded by PQA from enforcing such security/charge in accordance with its terms.doc (23) .1 12. the leasehold interest in respect of the site under the land lease) shall survive the termination of this Agreement until the repayment in full of all obligations of the Company under its financing Agreements. annual rent and other charges payable under this Implementation Agreement (I. and/or (d) the facility. (c) its leasehold interest in and to the site. charged and secured. /var/www/apps/conversion/tmp/scratch_3/168075692.1 and 3.

any event or circumstances of a nature or having an effect analogous to any of the foregoing. act of war (whether declared or undeclared). if the event of force majeure results in a breakdown of communications rendering it not reasonably practicable to give notice within the applicable time limit specified herein. civil commotion. (v) (vi) (vii) Notice of Force Majeure (a) The party claiming ‘Force Majeure’ shall give notice to the other party of any event of force majeure as soon as reasonably practicable. Without limitation to the generality of the foregoing. radioactive contamination or ionizing radiation.Article 13 . the following events and circumstances to the extent that they satisfy the above requirements shall be deemed to be events of Force Majeure. provided that either party may not invoke such material and adverse effect if it has occurred due to the failure of such party to perform its obligations under this Agreement. Notwithstanding the above. fire. but not later than one (1) working day after such reinstatement. materials. embargo. (i) (ii) (iii) (iv) any material effect of the natural elements. armed conflict or act of foreign enemy. then the party claiming force majeure shall give such notice as soon as reasonably practicable after the reinstatement of communications. any event or circumstances or combination of events or circumstances beyond the control of such party materially and adversely affecting the performance by such party of its obligations or the enjoyment by such party of its rights under or pursuant to this Agreement. A delay in the performance of any contractor.2 Late delivery of plant. earthquake. including lightning.doc (24) . blockage. tsunami. force majeure events shall expressly not include the following conditions. and Lack or unavailability of money or changes in market condition. insurrection.1 In this Agreement "Force Majeure" means with respect to any party. except to the extent resulting from another Force Majeure Event: (i) (ii) (iii) (iv) 13. act of terrorism or sabotage. machinery. typhoon or tornado.Force Majeure 13. cyclone. flood storm. epidemic or plague. but not later than seven (7) working days after the date on which such party knew or should reasonably have known of the commencement of such event of force majeure. Any event or circumstance of a nature or having an effect analogous to any of the foregoing. riot. equipment. revolution. spare parts or consumables for the Project. /var/www/apps/conversion/tmp/scratch_3/168075692. explosion resulting from an act of war. invasion.

4 from the commencement of the relevant event of Force Majeure.2(a) shall have been given. subject to the provision of Article 15. and (ii) the cessation of the effects of such event of force majeure on the enjoyment by such party of its rights or the performance by it of its obligations under this Agreement as soon as practicable after becoming aware of each of (i) and (ii) above but. a party shall not be liable for any failure or delay in complying with its obligations under or pursuant to the Agreement to the extent that such failure has been caused. provided.4 Consequence of ‘Force Majeure’ Subject as provided in Article 13. Other than the obligations set forth herein or for breaches of this Agreement. for a period of thirty (30) consecutive days then PQA and the Company shall consult with each other with a view towards resolving the condition created by any such an event of Force Majeure in a mutually satisfactory manner. such party shall be excused for such failure or delay pursuant to Article 13. this Agreement shall immediately terminate. Until this Agreement is so terminated.doc (25) . A party shall not be excused.2(a) within seven (7) working days after becoming so aware. that no relief shall be granted to a party pursuant to this Article 13. If PQA and the Company do not agree on any mutually satisfactory action within a period of ninety (90) days thereof then if such Force Majeure event still prevails the Company may terminate this Agreement by giving written notice to PQA and to the lenders. /var/www/apps/conversion/tmp/scratch_3/168075692.4. 13. 13. mutatis mutandis. in each case (subject.4 to the extent that such failure or delay would have nevertheless been experienced by such party had such event of force majeure not occurred. A party affected by an event of force majeure shall not have any liability to the others for any liquidated damages obligations in respect of which such liquidated damages would be payable pursuant to this Agreement. for any failure or delay in complying with its obligations under or pursuant to this Agreement until the notice mentioned in Article 13.3 Mitigation The parties shall use their reasonable endeavors to mitigate the effects of any event of force majeure affecting the enjoyment by each of them of their rights or the performance by them of their respective obligations under this Agreement and shall consult with each other with a view toward resolving the condition created by such force majeure in a mutually satisfactory manner. pursuant to Article 13. whereupon.(b) The party claiming force majeure shall give notice to the other party of (i) the cessation of the relevant event of force majeure.5 If the event of force majeure having caused the construction or operation of the Facility to cease. as the case may be.2(a). by one or more event(s) of force majeure or its or their effects or by any combination thereof.2(c). a party shall not bear any liability for any loss or expense suffered by the others as a result of an event of force majeure. and without prejudice to the parties' rights to indemnification pursuant to Article 5. if the said notice shall have been given within the period mentioned in Article 13. or materially contributed to. (c) 13. that. however. nothing herein shall excuse the Company and PQA from fulfilling their respective obligations thereunder which are not materially affected by the said event of force majeure. provided however. to the second sentence of Article 13.

PQA will maintain a well documented weather advisory service and will relay the weather reports to vessels as well as to the control centre. the Company and any other future terminal that PQA may setup. after Agreement with PQA. This manual will also describe the detailed methodology of operation of the terminal and the interfaces of the Company's procedure with PQA's operational procedures and regulations. the equipment requirements of the vessels. etc. free of cost.Operations 14. pilotage and tuggage. PQA/the Company shall have the right not to accept the vessel for unloading. Iron Ore Coal Berth (IOCB). rules. If a vessel does not have equipment that conforms to the minimum standards to be set out in the ‘Operations Manual’.3 14.doc (26) .1 Operation of the terminal will be governed by an Operation Manual which will be developed jointly by PQA and the Company by the completion date. The procedure for navigation through the fairway.5 /var/www/apps/conversion/tmp/scratch_3/168075692. Oil Companies International Marine Forum (OCIMF). In case of detention of any vessel due to non-payment of PQA Charges.2 14. judicial arrest. frequencies and channels will be incorporated in the operations manual after Agreement with PQA. marked by buoys. This operation manual will recognize the existence of the Port Qasim Authority Regulations. 1981 and relevant International Maritime Organization (IMO). Relevant clauses will be communicated to the PQA well in time. of Pakistan (GOP) regulations and practices applicable for commodities and attempts to elaborate on the policies already being followed. Govt. 14. or immobilization of a vessel for repairs.4 14. 1981. or has cargo unacceptable/unsuitable for unloading at the terminal. define new provisions/ modifications to the existing provisions that will be necessitated on account of the berthing facility. The broadcast procedures. Oil & Gas Regulatory Authority (OGRA). PQA/the Company will endeavor to ensure that the vessel is removed from the terminal. published in the Extraordinary Gazette of Pakistan.Article 14 . dated October 17. PQA will use the principle of safety first/operational policy basis to provide the use of the navigational channel. The weather advisory service will be provided by PQA to the Company. Channel will be defined. and the responsibilities of the pilots will be incorporated in the operations manual. Qasim International Container Terminal (QICT). to all ships destined for and arriving at the outer anchorage of Port Qasim including but not limited to the ships berthing at Fauji Oil Terminal Company (FOTCO). and maintained by PQA. PQA will provide Pilots and navigational assistance to vessels through the safe channel to the berth. etc.

being the book value of total assets and PQA will pay such transfer value to the Company.26. operate & transfer (BOT) licence granted by PQA to the Company. In the event of termination. Immediately thereafter.26. until either the compensation amounts or transfer value.Article 15 – Termination and Compensation 15.1 The right to build.3 15. subject to the approval of PQA. In the event of failure to agree on the compensation amounts or transferable value.5 and 18.26 become applicable or the parties mutually agree to terminate prior to successful commissioning and commencement of operation of the facility. the dispute shall be resolved pursuant to Article 16 of this Agreement. either under the provisions of Article 13.5 or 18. the Company will be entitled to assign its rights to this Agreement to a third party. which approval would not be unreasonably withheld. In the event of Agreement being terminated on or after successful commissioning and commencement of operations of the facility. hereunder. are paid to the Company or appropriately secured to be paid within one year of termination. including but not limited to mobilization. manage and operate the facility and be entitled to receive all charges and other payments under this Agreement.5 or 18. pursuant to Article 3.doc (27) . the Company shall continue to own. 15. lenders pre-payment fees. Prima facie. Such fee shall not be payable if termination occurs pursuant to Article 18. a joint survey and audit will be carried out of all movable and immovable assets of the Company and a transfer value will be determined.1 of this Agreement shall. PQA shall immediately take over the management of the facility. demobilization and pre-contract costs plus a fee in the amount of a percentage of said costs and outstanding commitments to be mutually agreed. In case PQA is not willing to take over the facility as explained above. the termination of this Agreement is not foreseen. only be terminable in accordance with the specific provisions of this Agreement contained in Article 13. as the case may be.5 /var/www/apps/conversion/tmp/scratch_3/168075692. the Company will be entitled to assign its rights to this Agreement to a third party subject to the approval of PQA which would not be unreasonably withheld. In case PQA is not willing to take over the project as explained above. If either provisions of Articles 13.4 15. and outstanding commitments incurred in connection with the project by the Company. if such an event does occur the matter of compensation will be settled according to the rules as provided hereinafter. However.26 becoming applicable or by mutual Agreement of parties.2 15. the compensation amount payable to the Company shall be the sum of all the Company costs.

(b) and (c) above. Notwithstanding any provisions under (a). one to be appointed by each party and an umpire appointed jointly by the arbitrators before entering upon the reference in accordance with the Pakistan Arbitration Act.doc (28) . 1940 and any amendment or reenactment thereof. 16.2(c). (i) the Company undertakes to continue the construction.1 If any dispute or difference of any kind whatsoever (the "Dispute") shall arise between PQA and the Company in connection with or arising out of this Agreement.Resolution of Disputes 16. the parties shall attempt to settle such dispute in the first instance within fifteen (15) days by mutual discussions between the Company and PQA. The rights and obligations of the parties under or pursuant to this Agreement shall be governed by and construed according to the laws of Pakistan.Article 16 . (a) If the dispute cannot be settled within fifteen (15) days or any mutually extended period by mutual discussions. operation and maintenance of the facility and (ii) PQA undertakes to continue to perform its services and obligations. The venue of the arbitration proceedings shall be the city of Karachi in Pakistan and the arbitration proceedings shall be held in the English language. in either case without any stoppage/impediment either during the discussions between the parties or pending any arbitration proceedings pursuant to this Article 16.2 (b) (c) (d) /var/www/apps/conversion/tmp/scratch_3/168075692. development. then the dispute shall be finally settled under the provisions of Article 16. Any dispute arising out of or in connection with the Agreement or even the termination thereof shall (regardless of the nature of the Dispute) be referred to arbitration of two arbitrators.

1 All notices or other communications (together the "Notices") to be given or made hereunder shall be in writing. Port Qasim Authority Tel. All notices given by fax shall be confirmed in writing delivered or sent as aforesaid but the failure to so confirm shall not vitiate the original notice.Notices 17. No. : Attention: or such other addresses. Port Qasim Karachi +92(021) 9272111 +92(021) 473 0108 and (021) 473 0109 Chairman. be addressed for the attention of the person indicated below and shall either be delivered personally or sent by registered post or fax. Lahore-54000 +92(042) 6306106 and 6306108 +92(042)6368742 Chairman Pakistan GasPort Limited Tel. /var/www/apps/conversion/tmp/scratch_3/168075692. and fax number as either party may previously have notified to other party upon actual delivery or receipt thereof at the address for ' service mentioned above. : Fax No. The addresses for service of parties and their respective telex and fax number shall be: (a) In the case of PQA : Address: Port Qasim Authority P. 7 Egerton Road.O. : Attention: (b) In the case of the Company: Address: Pakistan GasPort Limited Associated House. : Fax No.Article 17 .doc (29) . No.

5 shall not apply to : a) b) any information in the public domain otherwise than by breach of this Agreement. amendments and variations to this Agreement shall be binding only if in writing and signed by duly authorized representatives of the parties. information in the possession of the receiving party thereof before divulgence as aforesaid. management and financing of the project and any other information which is of a confidential nature and shall not (save as required by GOP/GOS or prospective lenders or investors or to the professional advisors of the parties hereto or of such lenders or investors as aforesaid or to the Contractors) publish or otherwise disclose or use the same for its own purposes. operation. conditions and provisions of this Agreement or time or other indulgence granted by one party to the other shall not thereby act as a waiver of such breach or acceptance of any variation. Each of the parties shall hold in confidence all documents and other information whether technical or commercial supplied to it by or on behalf of the other party relating to the construction.3 The failure by either party to insist on any occasion upon the performance of the terms. and which is not obtained under any obligation of confidentiality. otherwise than as may be required to perform its obligations under this Agreement. No waiver by either party of any default by the other in the performance of any of the provisions of this Agreement: a) b) shall operate or be construed as a waiver of any other or further default whether of a like or different character.1 18. and shall be effective unless executed by an authorized representative of such party . This Agreement represents the entire understanding between the parties in relation to the project and will supersede the guidelines. and information obtained from a third party who is free to divulge the same.2 All additions. 18.6 c) /var/www/apps/conversion/tmp/scratch_3/168075692. maintenance. and which was not obtained under any obligation of confidentially.doc (30) . proposal and the LOI in so far as any of their provisions are inconsistent with or contrary to the provisions of this Agreement. 18.4 This Agreement shall not be terminated except in the circumstances expressly set out in this Agreement. The provision of Article 18.Article 18 . 18.Miscellaneous 18.5 18.

He shall not.8 18. furnish to PQA two (2) copies of its complete financial statement for such financial year (which are in Agreement with its books of accounts and prepared in accordance with accounting principles which are generally accepted in Pakistan and consistently applied). /var/www/apps/conversion/tmp/scratch_3/168075692. The Company shall. to any person or Company to procure this Agreement. 18.doc (31) .15 The PQA Engineer shall perform all such duties as are required to be performed under this Agreement. The Company shall provide a Certificate to this effect in line with the text as enclosed in Schedule 22. PQA shall in all matters be represented by the PQA representative and the Company shall from time to time be advised in writing of the PQA representative. Directors.10 The Company and PQA declare and affirm that it has not paid/received nor has it undertaken to pay/receive any commission. each of which shall be deemed an original. report any change in the appointment of its Chief Executive. The cost of services of PQA Consultant will be a Lump Sum amount of US$ 200. all in accordance with the requirements of the Companies Ordinance. The Company shall. but all of which together shall constitute one and the same Agreement. together with an auditors report thereon. Schedule of payments shall be specified in the separate agreement with the PQA Consultant.9 18. 18.7 The Company shall make arrangements for the appointment of a firm of independent chartered accountants as auditors. pay-off or kick-back and that it has not in any other way or manner paid/received any sums. The Company and PQA undertakes not to engage in any of the said or similar acts during the term of this Agreement.000 equivalent to Pak Rupees at the official exchange rate (buying of the date of payments).18.13 Except as may otherwise be provided. within fourteen (14) days of its becoming effective. 18. bribe. 1984 and any subsequent amendment thereto. whether in Rupee or foreign currency and whether in Pakistan or abroad. 18. as soon as available but in any event within one hundred and eighty (180) days after the end of each financial year. certificates and orders as are specified in this Agreement to be performed by PQA. or in any other manner given or offered or taken to give/receive any gifts and presents in Pakistan or abroad. delegate to the PQA Engineer any of the powers and the authorities vested in him and shall furnish to the Company a copy of all such written delegation of power and authorities.12 PQA shall appoint the PQA Consultant. 18.11 This Agreement may be executed in two (2) counterparts.16 The PQA representative may from time to time in writing. Chief Financial Officer and Secretary. 18. except as expressly provided in the Agreement amend any work involving delay or any extra payment by PQA or make any variation of or in the works. 18.14 The PQA representative shall carry out such duties in issuing decision.

trademark or name or other protected rights in respect of any construction plant.doc (32) . design. any such matters in so far as the Company is responsible thereof. its provision shall be invoked should such eventuality occur and in such case the forum stated in Article aforementioned shall have jurisdiction for adjudicating any dispute arising hereunder.20 All fossils. costs. 18. used for or in connection with Project or any of them and from and against all claims proceedings. 18.19 From the commencement of the project till expiry of the land lease. employees etc. 18. acquaint PQA of such discovery. The Company shall be responsible for any such damage to highway or bridge due to moving construction plant. The Company shall keep PQA indemnified against all penalties and liabilities of any kind for breach by the Company. damages. rules. The Company undertakes to abide by all laws. before removal.22 All operations necessary for the execution of the project shall. PQA shall take all necessary measures to facilitate all such operations by the Company and its Contractors as may be appropriate for the execution of the project. machinery or material etc.21 The Company shall save harmless and indemnify PQA from and against all claims and proceedings for or on account of infringement of any patent rights. damages. 18. coins. charges and expenses in relation /var/www/apps/conversion/tmp/scratch_3/168075692. the Company shall take full responsibility for the care thereof. The Company shall save harmless and indemnify PQA in respect of all claims proceedings. as the case may be. regulations in force in Pakistan and the bye-laws. in conformity with the laws of Pakistan and. 18. ordinance or law. instructions and ordinances issued thereunder by the competent authority from time to time unless otherwise exempted from any such laws and regulations.17 This Agreement shall in all respect be read and construed and shall operate as a contract. machinery. Articles of value or antiquity and structures and other remains or things of geological or archaeological interest discovered on the site of the project shall be deemed to be the absolute property of PQA. orders. material and equipment for the Project and the Company shall indemnify PQA in respect of all claims demands proceedings. charges and expenses whatsoever arising out of or in relation to. subject to Article 16. The Company shall take reasonable precautions to prevent workmen or any other persons from removing or drawing any such Article or thing and shall immediately upon discovery thereof and.23 The Company shall use every reasonable means to prevent any of the highways or bridges communicating with or on the routes to the Site from being damaged by moving special load or otherwise or injured by any traffic. so far as compliance with the requirement of the Project permits. be carried on so as not to interfere unnecessarily or improperly with the convenience of the public or the access to use and occupation of public or private roads and footpaths to or of properties in the PQA area whether in the possession of PQA or of any other person. damages cost charges and expenses whatsoever in respect thereof and in relation thereto.18.18 The language shall be English according to which this Agreement is to be construed and interpreted. its Contractors. of any statute. regulation or bye-law. costs. 18. directives. agents.

26 If the Company shall have: a) b) c) d) e) f) abandoned the project/facility without sufficient cause. PQA will assist the Company in this regard. The recovery of such damages shall not relieve the Company from the obligation to complete the project or from any other of its obligations and liabilities under this Agreement.19 hereof as a result of default attributable to the Company and not attributable to any act or omission of PQA then the Company shall be liable to pay liquidated damages for every day of delay such damages not exceeding Rs. dock.25 If the Company shall fail to achieve completion of the project in time pursuant to Article 3. Where the nature of the work is such as to require the use by the Company of water borne transport the foregoing provisions of this Article 18. The Company would only allow person(s) abiding the Company’s HSE rules. gone into liquidation. unless the Company before the aforesaid sixty (60) days remedies or rectifies the situation.thereto if such damage has been caused by the neglect of the Company or its Contractor. charges/rates payable by the Company to PQA under this Agreement as may have accrued upto date of such termination and PQA shall be liable to take over the Facility upon payment of compensation as specified in Article 15. 100. PQA may without prejudice to any other method of recovery invoke for encashment of the performance bond for the recovery of such liquidated damages. made a general arrangement with or assignment in favor of the Company's creditors detrimental to the interests of PQA. the Company shall be liable only to pay to PQA such dues.24 The Company shall.23 shall be construed as though highway included a lock.doc (33) . a final receiving order made against it. in accordance with the requirements of PQA. 18. afford all reasonable access for carrying out their work to any other Contractors/ companies employed by PQA and their workmen and to the workmen of PQA who may be employed near the site for any work not included in this Agreement or ancillary to the works herein in case it is essential for such persons to access through or upon the Site. 18. and shall abide by and conform to them. employees or sub-Contractors or their agents or employees are made acquainted with and abide by all such rules and orders. PQA shall be entitled upon giving sixty (60) days notice to the Company. sea wall or other structure related to a waterway. 18. assigned all its rights under this Agreement without the consent of PQA. The Company will further ensure and be responsible for ensuring that its agents. 18.000 (Rupees one hundred thousand only) per day upto a maximum of Rs.27 a) Since the site and all the area of PQA is classified as a restricted area the Company shall acquaint itself with the provisions of the Official Secrets Act. /var/www/apps/conversion/tmp/scratch_3/168075692. 1923 as applicable in Pakistan or any statutory modification or re-enactment thereof and other security provisions prevailing in the area in which it is working. to terminate this Agreement and in the event of such termination. filed petition for winding-up.000.000 only (Rupees thirty million only). 30.

Subject to Article 18. the Contractors. PQA shall issue passes to allow admission to the Company. its agent. Intimation and copy of photographs taken shall be forwarded to PQA. The Company shall not bring on site any unauthorized person. The Company/PQA or its employees will not disclose whole or any part of the project to any unauthorized person or persons. the Company/PQA and its employees will keep in strict security all project details. To conform to the requirements of the suppliers of specialized machinery & equipment supporting data. Correspondence between PQA and the Company shall not be divulged to or passed onto unauthorized third parties. their employees and work people to the site or any part thereof and the Company shall.27.doc (34) . The taking of photographs except as provided for under this Agreement is forbidden. c) d) e) f) /var/www/apps/conversion/tmp/scratch_3/168075692. on demand by PQA submit list of its employees. The Company will to the best of its knowledge. issued to the Company or the Contractors as well as photographs of structures shall remain the property of PQA and may be retained by them only with the express approval of PQA. PQA shall supply to the Company the details of the procedures to be adopted for ensuring compliance with provision of this Article 18. Passes shall remain the property of PQA and shall be returned at any time on demand by PQA. the Contractors and their employees employed on the work and shall satisfy PQA as to the genuineness of such personnel.5.b) All drawings on which port facilities are depicted. ensure that the antecedents of persons employed by it are clear from blemish. literature of such specialized machinery and equipment being subject to the suppliers proprietary rights and as such shall not be used on for other works nor shall be divulged to or passed on the any unauthorized third parties.

4 The Company shall be responsible for the care. shall devise an information format for the purpose of providing PQA at regular intervals of atleast one month. requires any additional information related to the Facility. The Company shall be responsible for the maintenance and repair of all works executed by them. structures. water and telephone shall be payable by the Company within due date of appropriate invoices from Karachi Electric Supply Corporation (KESC). facilities upon the site and the Company shall also be exclusively responsible for fulfillment of its duties under the terms and conditions of employment of its employees. has complied fully with all other applicable laws of Pakistan. All consumption charges for utility services. judgment. in consultation with PQA. the Company.2 PQA and the Company agree that if amendments. provide PQA with the information required. modify and revise the Agreement. its assets or its business and as of the date of the grant of the land lease to the Company. The Company shall also be liable for any damage to PQA's property resulting due to the negligence of the Company after the take over of the site. the Company shall. with statistics and information required by the PQA for Port Management and Planning.3 19. is existing and has complied fully with the requirements of said Act in so far as is material to the Company.Article 19 . as far as possible. delivery and performance of this Agreement does not and will not constitute a violation of any statute. for electricity. 19.doc (35) . PQA and the Company shall promptly consult and take all action necessary under the circumstances in good faith to amend. i. executed and delivered by it and constitutes the legal. free and clear of any charge or encumbrance of any kind and has the power to grant the land lease.Overriding Provisions 19. Prior to the commencement of operations. gas. valid and binding obligations of it.1 PQA represents and warrants to the Company that as of the date of Signing: i) it is duly created pursuant to the PQA Act 1973. ii) iii) iv) 19. if the information is available. the execution. PQA shall have good and marketable title to the site including all easements and rights of way ancillary thereto. modifications or revision to this Agreement may become necessary or desirable to satisfy the requirements of the implementation of the Project. The Company shall be responsible for repairs and maintenance of all machinery/appliances at the facility. at the direction of the Government. along or below the ground or water. In the event that PQA. not attributable to PQA. this Agreement has the approval of the competent authority and as far as it is aware. this Agreement has been fully authorized. custody and security of all equipment and machinery brought upon the site of the facility. its servants and agents. Karachi Water Supply & Sewerage Board (KW&SB) Pakistan Telecommunication Company Limited (PTCL).5 /var/www/apps/conversion/tmp/scratch_3/168075692. through. the buildings. 19.e. order decree or regulation or rule of any court. Sui Southern Gas Company Limited (SSGCL). governmental authority or arbitrator of competent jurisdiction applicable or relating to it.

1 The Company shall receive for its account all handling charges for cargo using the facility.2 20. ancillary and other related services. in the event the Company decides to handle third party cargo. The Company shall not be handling cargoes of any third party at the Terminal and as such not have the right to demand any tariff from such third party.3 /var/www/apps/conversion/tmp/scratch_3/168075692. the tariff arrangements shall be mutually agreed between PQA & the Company.Tariff Arrangements 20. PQA's charges and levies on vessels using the jetty will be according to the gazette notification issued by the GOP and will be collected by PQA directly. 20. berth-age. The Company will also charge and receive for its account Income from shipping lines and consignee/consignors and other parties using the services of the Facility for the services provided.doc (36) .Article 20 . These include but are not limited to stevedoring (such as hose-pipe/loading arm. However. connection/disconnection).

1 21.3 21.2 21. /var/www/apps/conversion/tmp/scratch_3/168075692. A surcharge at the rate of 1% above State Bank of Pakistan discount rates per month shall be paid by the Company in respect of the amount of royalty not paid by the due date. The Company shall pay the royalty to PQA on monthly basis by 15th day of every month in respect of vessels berthed during the preceding calendar month.Article 21 .doc (37) .4 21. The royalty payable to PQA shall be as setforth in schedule 13.5 The Company shall pay to PQA. The officials surcharge rate (selling TT/OD) as prevailing on the date of berthing of every vessel shall be applicable for conversion of USD into Pak Rupees.Royalty and its Payment 21. Royalty against grant of concession under this Agreement.

Date:______________________________ Vice Adm. Port Qasim Authority In the presence of: 1.doc (38) . Asad Qureshi (H. acting through their duly authorized representatives.IN WITNESS whereof the parties. have caused this Agreement to be signed in their respective names in Karachi. ____________________________ /var/www/apps/conversion/tmp/scratch_3/168075692.I) M Chairman. Pakistan on the date written opposite each party's name. M.

doc (39) .ESTABLISHMENT OF A DEDICATED FLOATING LIQUEFIED NATURAL GAS TERMINAL AT PORT QASIM IMPLEMEMTATION AGREEMENT (SCHEDULES) between PORT QASIM AUTHORITY & PAKISTAN GASPORT LIMITED April 2007 /var/www/apps/conversion/tmp/scratch_3/168075692.

Schedule of Charges to be paid to PQA by the Company SCHEDULE 19 . 14.The Proposal SCHEDULE 12 .Form of Performance Bond .Indenture of Lease . 15.Consents SCHEDULE 13 .Schedule of Tariff SCHEDULE 22 – Integrity Pact Notes: 1.Site Plans .doc (40) .Project Execution Guidelines .Draft of Accident Prevention and Safety Manual SCHEDULE 17 .Financing Plan SCHEDULE 3 .Draft of Security Manual SCHEDULE 15 .Letter of Intent SCHEDULE 11 .Draft of Port Operation Manual SCHEDULE 16 . 16 and 17 which are Manuals required during operation are to be prepared and made ready before the commencement of operation. 2.Proforma of Certificate of Successful Commissioning . Schedule No.Draft of Emergency Manual SCHEDULE 18 .Project Scope SCHEDULE 10 .LIST OF SCHEDULES SCHEDULE 1 SCHEDULE 2 SCHEDULE 4 SCHEDULE 5 SCHEDULE 6 SCHEDULE 7 SCHEDULE 8 SCHEDULE 9 .The Financial Model . /var/www/apps/conversion/tmp/scratch_3/168075692.Environmental Impact Study SCHEDULE 20 .Implementation Schedule . The detailed Project Execution Guidelines are to be prepared and made ready before the Date of Effectiveness.Schedule Formula of Royalty Payments to PQA by the Company SCHEDULE 14 .Schedule of Depreciation of Assets SCHEDULE 21 .

doc (41) .SCHEDULE – 1 Implementation Schedule /var/www/apps/conversion/tmp/scratch_3/168075692.

doc (42) .SCHEDULE – 2 Project Execution Guidelines The detailed project execution guideline shall be developed by the Company in Consultation with the PQA before the date of effectiveness. /var/www/apps/conversion/tmp/scratch_3/168075692.

LPG & NGL vessel upto 75.DRAFT SCHEDULE . /var/www/apps/conversion/tmp/scratch_3/168075692. The Terminal will have the designed annual capacity of handling not less than 3 million tonnes of LNG.3 Project Scope The Project pertains to the establishment of dedicated Floating LNG Terminal in Link Creek (Asad). Operate & Transfer (BOT) basis. The Terminal shall be built on a 30 years Build.000 DWT.doc (43) . extendable for another period of 30 years. LPG & NGL. subject to terms and conditions of Implementation Agreement of the Project. Port Muhammad Bin Qasim. The Project shall comprise of state-of-the-art facility for handling LNG.

doc (44) .SCHEDULE – 4 SITE PLANS /var/www/apps/conversion/tmp/scratch_3/168075692.

doc (45) . LPG & NGL handling parameters specified for the Project in Schedule – 3. Yours faithfully. Based on the above. We have taken due note of the fact that it has been demonstrated to the PQA Engineer that the Facility is capable of performing in accordance with LNG. specifying that the work included in the Project Scope (Schedule – 3) has been functionally completed in all respects and the Facility is capable of performing in accordance with its designated functions. Karachi.SCHEDULE – 5 Karachi: _______________________ ---------------------------------------------------------------------------------------Attention: Subject: Dear Sir. we hereby certify that the Facility has been successfully commissioned as contemplated in the Implementation Agreement dated ____________ Between Port Qasim Authority and ____________________ for establishment of dedicated Floating LNG Terminal at Port Qasim. We are in receipt of the Certificate dated ____________ from the Consultant to Pakistan GasPort Limited. for PORT QASIM AUTHORITY CERTIFICATE OF SUCCESSFUL COMMISSIONING /var/www/apps/conversion/tmp/scratch_3/168075692.

SCHEDULE – 6 INDENTURE OF LEASE /var/www/apps/conversion/tmp/scratch_3/168075692.doc (46) .

RECITALS 1. WHEREAS the Lessor is the lawful owner of and/or otherwise well and sufficiently entitled to all the piece or parcel of land more particularly described hereunder bearing No. AND WHEREAS the Lesser has entered into an Implementation Agreement (IA) with the Lessee dated _______ (hereinafter referred to as the I. _________________________________________________________________.INDENTURE OF LEASE PARTIES ____________ THIS INDENTURE OF LEASE made and entered into at Karachi ________________ this day of the month of ____________________200__ BETWEEN THE PORT QASIM AUTHORITY INCORPORATED AND ESTABLISHED UNDER THE PORT QASIM AUTHORITY ACT. (hereinafter referred to as the " LESSOR") which expression wherever the context requires or deems shall include its successors in interest assigns and such person for the time being entitled to the reversion immediately and expectant on the term hereby granted) of the one part AND M/S.A " a copy where of is attached herewith as Appendix D) in respect of the aforesaid property under the Terms of which the Lessee shall enter upon the said property and build and complete the structure(s) building(s) and other works thereon in accordance with the plans and specifications and to the value duly approved by the Lesser and thus became entitled to a lease in respect of the said property. (Act XLIII of 1973). 1973. and measuring _________ (___) acres ( m 2) situate within the _________________ Zone Port Qasim Area (hereinafter referred to as the “Lessor’s Property”). ____ and measuring ____________ acres ( m 2) situated in the ____________ Zone Port Qasim area and within the jurisdiction authority of __________ police station within the registration District and sub-district of Karachi more particularly delineated upon the plan annexed here to and bounded as follows:On the North by _________________ On the South by _________________ /var/www/apps/conversion/tmp/scratch_3/168075692. a company incorporated under the Companies Ordinance 1984 whose registered office is situated At ____________________________________________________________________ (hereinafter referred to as the "LESSEE" which expression wherever the context so requires or deems shall include its successors in interest) of the other part represented by Mr. AND WHEREAS in consideration of the aforesaid and in consideration of the rent hereby reserved and the covenants to be performed and observed by the Lessee as herein contained the Lessor does hereby demise unto the Lessee all that piece and parcel of land bearing No. ___________________ duly authorized vide letter dated ______________ appendix as Appendix “B” hereto.doc (47) .

LESSEES RIGHT OF ENTRY. gas and electricity from and to the. night soil.doc (48) . (b) Subject to the Lessor's approval as aforesaid the right so far as may be necessary to enter on any adjoining or neighboring land of the lessor at such times for such purposes and subject to such conditions as may be authorized in writing by the Lessor or as may be agreed between the parties concerned for the purpose of repairing cleansing maintaining and amending the walls and any other parts of the premises and the roads paths or ways sewers drains gutters water courses and pipes serving the premises the lessee making good and reinstating any damage done to such a land or buildings and fixtures fittings furniture and stock in trade therein and paying compensation for any interference with the user thereof and taking all precaution necessary to protect the said land and buildings and other things aforesaid and the occupiers there of or the persons using the same and public from damage or injury during the course of the work and until the reinstatement of such land or buildings as aforesaid EXCEPT AND RESERVING to the Lessor and its successors in title and its Lessees licensees and/or others deriving title or such right from the lessor: /var/www/apps/conversion/tmp/scratch_3/168075692.On the East by On the West by _________________ _________________ (Hereinafter referred to as “the premises" for use and enjoyment of the said demised premises together with the building(s) and other works thereon and may as from the date hereof use the premises for the purpose of establishment of Floating LNG Terminal and no other purpose whatsoever except with the previous consent of the Lessor in writing AND TOGETHER IN COMMON with others having the like rights:PASSAGE OF SERVICES. . (a) Subject to the approval of the lessor in writing first being-obtained the right to uninterrupted passage and running water. premises through the gutters pipes sewers drains water courses wires and cables laid constructed or to be constructed laid or to be laid or erected in under upon or over adjoining or neighbouring land or property for the convenience of the Lessee and others and subject to the Lessor's approval as aforesaid and to such conditions the Lessor may at the time or from to time deem fit to impose to make connections with such gutters pipes sewers drains water courses wires and cables or any of them which may exist for the purpose of exercising such right subject to making good any damage or disturbance caused to the adjoining land in the exercise of such right and upon paying such fees and charges to the Lessor as if may deem fit to charge.

/var/www/apps/conversion/tmp/scratch_3/168075692. RIGHT TO ENTRY (iii) Full right at all reasonable times on giving three days notice to the Lessee except that no notice shall be required in the case of emergency to enter upon the premises to view the state and condition of and to excavate build erect repair and maintain adjoining premises and adjoining roadways the work upon which shall not otherwise be reasonably practicable causing as little damage and inconvenience as possible subject to making good ail damage and disturbance so caused but the lessee shall not be entitled to make any claim or claims on the Lessor in respect of its exercising the right on the Lessor in respect of its exercising the right herein reserved.LESSOR'S RETAINED-RIGHTS (i) The free and uninterrupted right of passage and running of water and night soil gas electricity and other services as are now or may at any time hereafter be used and enjoyed from or to other buildings and land of lessor its successors in title or their lessees or others as aforesaid through the gutters pipes sewers drains water courses wires and cables in under upon or over the premises TOGETHER with the right to lay construct and maintain (or permit to be laid constructed maintained) in under upon or over the premises such further gutters pipes sewers drains water courses wires and cables manholes stopcocks inspection chambers and similar apparatus as may in the opinion of the lessor be necessary or desirable during the term hereinafter referred to AND TOGETHER ALSO with the right for the lessor and its agents and all other persons lawfully authorised with or without workmen and others at all reasonable times but with fourteen days prior notice to the lessee except that no notice shall be required in the case of emergency to enter upon the premises or any part thereof for the purpose of laying constructing inspecting maintaining repairing renewing any gutter pipe sewer drain water course manhole stopcock wire cable inspection chamber or similar apparatus the Lessor or such other persons as aforesaid causing as little inconvenience as possible and making good all damage caused to the premises by reason of the carrying out of any such works but the Lessee shall not be entitled to make any claim or claims on the Lessor in respect of it exercising its right herein reserved. LIGHT AND AIR (ii) Full right and liberty-at any time hereafter or from time to time to execute works and make erections upon or erect rebuild or alter any buildings or erections on the land of the Lessor adjoining or near to the premises and to use such adjoining and neighboring land in such manner as the Lessor may think fit notwithstanding that the access of light and air for the time being appertaining to or enjoyed with the premises or any part thereof or any building for the time being thereon may thereby be interfered with.doc (49) .

forming integral part of this "Indenture of Lease". (ii) COMPENSATION FOR NON-PAYMENT (b) Without prejudice to the other rights of the Lessor here in if any payment due under this agreement (whether legally demanded or not) is not received by the Lessor within 30 days of the due date then it shall be entitled to receive such moneys together with a penalty calculated as compound interest thereon at one percent (1 %) per annum above the Commercial Bank rate at the time the payment falls due (with three monthly rests) from the Lessee. in advance as per Appendix A.doc (50) . The Lessee hereby covenants with the Lessor as follows that is to say:- PAYMENTS OR RENTS (a) That the Lessee shall during the continuance of the term hereby granted pay the said yearly rents hereby reserved at the times and in the manner herein provided without any deduction whatsoever including increased or revised rents as aforesaid notwithstanding any dispute action litigation or claim which may be in contemplation or before any court of law or other tribunal. RENTAL. OCCUPANCY AND OTHER CHARGES (c) (i) TO HOLD the premises unto the Lessee for the term of 30 years from the _______ day of ______________ SUBJECT nevertheless to the provisions for re-entry hereinafter contained and the Lessee YIELDING AND PAYING during the said term the annual rent and other charges etc. During the said period of Lease during which the Lessee remains in occupation of the said premises to pay rental and other charges as specified in Appendix A. /var/www/apps/conversion/tmp/scratch_3/168075692. II.TERMS OF YEARS. PAYMENT INSURANCE PREMIUMS AND ALSO YIELD AND PAY unto the Lessor on demand by way of additional of a sum equal to all such sums as the Lessor may from time to time pay for insuring and keeping insured the premises against loss or damage by fire and other insurable risks in case the Lessee shall make default in insuring or keeping insured the premises pursuant to the covenants herein after contained.

Such sums to be recoverable as if they were rent due hereunder. PAYMENT OF PORT DUES AND CHARGES. permanently or temporally beached or otherwise be placed or lie upon the foreshore or any other place outside the limits of the premises. Such rights and powers reserved to the Lessor hereunder are without prejudice to any right powers or privileges conferred upon it by statute or any other regulation or provision whatsoever or reserved to it elsewhere.CLIENT OF OTHER CHARGES (b) That the Lessee shall from time to time and at all times during the said terms pay and discharge all rates taxes duties charges assessments and outgoing whatsoever which are now or may at any time hereafter be assessed charged levied or imposed upon or payable in respect of the premises or the use thereof or upon the Lessee and an apportioned part of any such moneys together with a penalty calculated as compound interest thereon at one percent (1 %) per annum above the Commercial Bank rate at the time the payment falls due (with three monthly rests) from the Lessee. (c) The Lessee will be required to pay any and all dues and charges levied or charged by the Lessor in its capacity as the Port Authority in respect of any ship or craft or cargo or any part thereof whatsoever which the Lessee may be working upon own lease or use or which is within his/their control for the time being or which he/they is/are entitled to control own use lease or work upon whether directly or indirectly as may enter use pass repass lie at anchor in or be moored or moved or sunk in any of the waterways back waters or creeks below high water line. The Lessee shall also pay to the Port Authority such sums as it may levy upon him/them in respect of any ship or craft or cargo or any part thereof which may have been . /var/www/apps/conversion/tmp/scratch_3/168075692.doc (51) .

ALL RISK INSURANCE (e) To insure the premise with an insurance company to be approved in writing by the Lessor in a sum to be approval in writing by the Lessor and to keep the same so insured against loss or damage by fire flood tempest storm impact explosion earthquake damage by aircraft or articles dropped there from and all other insurable risks to the full reinstatement value. YIELD UP OR RENEWAL OF LEASE (j) That the Lessee will at the expiration or sooner determination of the said term quietly yield up the premises unless the Lease is renewed for an other 50 years our such terms and conditions as may be mutually agreed by the parties. AMENITY COVENANTS AND ARBORICULTURE (g) Without prejudice to the generality of Clause (II) sub-clause (f) above the Lessee will through out the term hereby granted perform and observe the Amenity covenants specified in the second schedule here to and shall carry out and maintain an arboricultural scheme approved by the Lessor within six months of the date of this demise.doc (52) . DECORATION COVENANTS (h) That the Lessee shall paint grain varnish whitewash and colour all of the external wood plaster cement brick stone concrete and ironwork and other parts usually painted grained varnished whitewashed or coloured of the I premises once in every fifth year at least of the said term and also on the ' last year howsoever determined with two coats or good quality paint of other suitable materials in a good and workman like manner and once in every seventh year at least of the said term and also in the last year howsoever determined paint grain paper varnish whitewash or colour in the manner all the inside parts of the premises usually painted papered varnished whitewashed and coloured. Should no new lease be granted the Lessor may-require the Lessee to clear the premises at the Lessee's own expense of all or any buildings or structures or works or any part or parts there of as the Lessor may deem fit and shall give notice in writing to the Lessee to that effect such notice to be served upon the Lessee by registered post at least one calendar month '1 before the expiration or sooner determination of this lease in which case the Lessee shall pay the premises so cleared of buildings or structures or works or such part or parts there of as are specified in the notice and leave premises leveled and cleared of all obstructions and clean and tidy at the date of such determination. the notice /var/www/apps/conversion/tmp/scratch_3/168075692. PREPARING COVENANTS (f) That through out the whole term the Lessee will keep the premises and all parts there of and all authorized buildings and structures there on and additions there to and the compound walls there of and all the fixtures drains night soil and other pipes and wires and sanitary and water apparatus there of in good and substantial repair and conditions. Should the Lessor decide in its sole discretion that any buildings or structures or works or part or part there of shall remain upon the premises after the date of determination the Lessor shall give notice to that effect to h the Lessee.

All costs incurred by the Lessor shall be recoverable on demand or in default of payment to be recoverable as if they were rent due here under. INSPECTION AND NOTICE OF DISREPAIR (k) That the Lessee shall permit the Lessor and/or their officers. /var/www/apps/conversion/tmp/scratch_3/168075692. ALTERATION AND ADDITION (m) That the Lessee shall not at any time during the said term erect or permit to be erected any building structure or rection or make any alteration or addition to any building structure or erection whatsoever in or upon the premises or any part there of other than internal partitions and other internal works of an non.doc (53) . structures or agents with or without workmen and others' at reasonable business hours and after seven days notice in writing to enter upon the premises and every' part there of view the state and condition of the same and if some fault or disrepair or breach of the repairing or decoration covenants be discovered the Lessee shall carry out the repairs or other works as may be directed or required by notice in writing from the Lessor to remedy the breach. (g) & (h) herein. DANGEROUS STRUCTURES (n) In the event that a building or structure or any part there of shall be or become neglected or dangerous the Lessor shall be at liberty to enter upon the premises and at the Lessee's expense demolish support repair and/or rebuild as in the opinion of the Lessor shall be necessary and recover the costs from the Lessee as if the same were rent reserved here In.structural nature or make or change the existing external design or appearance of the premises except upon such terms and conditions as the Lessor ma)' decide and in accordance with plans elevation sections and specification previously submitted to and approved by the Lessor and upon payment of the Lessor's fee as laid down by it from time to time nor make any access to the adjoining roads without the prior consent in writing of the Lessor and in the event of an breach of this condition becoming apparent to the Lessor then the Lessor shall thereupon be at liberty and at the Lessee's expenses to remove all such un-authorized building structure erection alterations and additions as may be found and recover the costs from the Lessee as if they were rent reserved here in. COMPLIANCE WITH NOTICE OF DISREPAIR (l) That the Lessee will within two months after such notice aforesaid substantially repair and make good to the satisfaction of the Lessor all defects decays and wants or reparation to the premises as directed and required as aforesaid at their own costs absolutely and in default the compliance with the said notice the Lessor may enter and carry out or cause to be carried out such repairs at the Lessee's own cost.to be in writing and served upon the Lessee by registered post at least one calendar month before the date of such determination and if the Lessor so elects the buildings structures and works or part or part there of being in such condition as specified in sub clauses (II) (t). In the event that the Lessor so requires the Lessee to leave such things as aforesaid the Lessor shall pay to the Lessee a sum equivalent to the Lessors own assessment of the estimated market value of any salvageable material after the deduction of the Lessor's estimate of the costs of reclamation transport and selling the salvageable material and leaving the premises levelled and cleared and clean and tidy.

/var/www/apps/conversion/tmp/scratch_3/168075692. LIVING ACCOMMODATION (q) Not to allow labourers workmen or other to live upon the premises except if specially approved by the Lessor and even then only in an area or areas approved by the Lessor and in accommodation constructed to the Lessor's satisfaction specially of that purpose. CHANGE OF USE (p) Not at any time during the said term use or permit or suffer to be used the premises or any part there of for any purpose other than that of without the previous consent in writing of the Lessor which consent if granted shall be on such terms and conditions as the Lessor alone shall decide. MINERALS (r) Not to sell or dispose of any earth clay gravel or mineral of any kind from the premises or permit or suffer any of the same to be removed.SIGNS (o) Not to exhibit on the exterior of the walls or roofs or any part of the demised premises or of any building or structure thereon any electric or illuminated sign signboard or hanging sign fascia advertisement display card sky sign or lettering except such as may previously have been approved in writing by the Lessor and upon payment of the Lessor's fees as laid down by it from time to time in this connection and in default the Lessor may enterer and remove the same at the Lessee's cost as if the same were an un-authorized new building.doc (54) . The ownership of all these things shall remain vested in the Lessor.

Should there be any encroachment in contravention here of the Lessor will be entitled to recover from the Lessee a sum equivalent to Rs. The Lessee shall provide all requisite equipment materials and things and do all things necessary to prevent soiling despoliation or pollution of the atmosphere waterways backwaters foreshores beaches or land within or outside the premises but should any such soiling despoliation or pollution occur whether it arises through negligence or improper use or bona fide use or from any other cause or should any such nuisance or annoyance or encroachment occur then the Lessee shall do all j necessary to eliminate the same and shall desist from all things causing or likely to cause anything in contravention of this subsection and upon written notice from the Lessor or any contravention there of the Lessee shall forthwith execute all works called of and do all things necessary to prevent such contravention and in default of this t}:}e Lessor may execute all such works and do all things called of at the Lessee's cost and expense recovering such costs and expenses as though they were rent reserved here In.NUISANCE AND POLLUTION (s) Not to permit or suffer to be done in or upon the premises or any part there of any thing which may be or become a nuisance or annoyance to the Lessor or the Lessees or occupiers of neighbouring land or any other person whatsoever nor to allow any dense smoke offensive vapours gas or particles to emit from the premises nor to encroach or allow other to encroach upon any other land than that within the boundaries of the premises. 100 (Rupees one hundred only) or such enhanced sum or may be notified by the lessor per square meter per day of the area covered by such encroachment and the Lessor shall have the right to recover such sum as provided herein.doc (55) . /var/www/apps/conversion/tmp/scratch_3/168075692. Should any such mortgage or assignment be executed directly or indirectly by reconstitution or by any other means in breach hereof this agreement shall automatically stand terminated save in so far as any claim or claims or any other remedy open to the Lessor hereunder are concerned. ASSIGNMENT (t) The Lessee shall not mortgage transfer or assign any right title or interest or part with possession of the premises or part thereof without the prior consent in writing of the Lessor which consent shall be at the absolute discretion of the Lessor and in the event of the Lessor granting consent the Lessee shall be liable for payment of any fee that may be levied by the Lessor in connection with such consent and shall continue to be liable for the performance of the several agreements conditions and stipulations here in contained until grant of the lease here in before referred to PROVIDED ALWAYS THAT any such consent shall not relieve the Assignee hereof from complying to and with the full provisions of this agreement and any such grant shall be on such terms and conditions as the Lessor shall alone determine.

(ii) At his/their own cost comply with all requirements of or made under or deriving validity from any Act or Order or any regulations made thereunder or any rule regulation or requirement of the Lessor or any other competent authority which is now or may hereafter come in to force whether as to the premises or any employment there in of any person or in connection with any fixture machinery plant or chattel there in not to do or omit to do or permit or suffer to be done or omitted to be done anything in or about the premises whereby the Lessor may become exposed to the liability to pay any penalty damages compensation costs charges or expenses and to keep the Lessor indemnified against all such liabilities. The Lessee shall forthwith after receiving notice from the Lessor carry out all necessary repairs improvements or such other works as the Lessor may deem fit and in default of the Lessee complying with such notice the Lessor may at its discretion forthwith enter upon the premises and take possession and close down all operation thereon without prejudice to its other legal rights and remedies whether provided here in or not. /var/www/apps/conversion/tmp/scratch_3/168075692.doc (56) .LAWS & SANITARY REGULATIONS (u) (i) Comply with all byelaws rules and regulations laid . (iii) Upon receipt of any notice order direction or other thing from a competent authority affecting or likely to affect the premises whether the same shall be served directly on the Lessee or the original or a copy thereof be received by any other person whatsoever the Lessee will so far as such notice order direction or other things or the Act regulations or other instrument under and b)' virtue of which it is issued or the provisions thereof required the: Lessee to do so comply therewith at the Lessee's own expense and will forthwith deliver to the Lessor a copy of such notice order direction or other thing. The Lessee shall ensure that adequate suitable and water-tight sanitary drainage and sewerage works are carried out and maintained in good repair and condition.down in any way relating to health and sanitation which may be In force from time to time or at all times and to the Lessor's satisfaction the Lessee shall provide sufficient sanitary accommodation for the labourers and workmen and other employed upon the premises. TOWN PLANNING SCHEMES (iv) At all times during the subsistence of this lease comply with all requirements of or having validity under any planning or other schemes which may now or from time to time be adopted by the Lessor or any other competent authority or any modification thereof now or for the time being in force and any rules regulations orders and directions made thereunder.

Should the Lessor be satisfied in any respect whatsoever that effluent being discharged on or from the premises is not in its opinion of a suitable nature content temperature condition or quantity or in any way does not comply with its rules or regulations which it shall alone have power to lay down then the Lessor shall have the right to enter upon the premises at any time and close down immediately to whole or any part of the Lessee's operation process making manufacturing or any or all activities thereon as it may at its sole discretion decide. /var/www/apps/conversion/tmp/scratch_3/168075692. FIRE PRECAUTIONS (w) Comply with all orders of regulations issued by the Lessor or any competent authority in respect of fire precautions on or at the premises. DISCHARGE OF ANY TRADE OR THEIR EFFLUENT (x) Not to discharge from the premises any trade or other effluent without the prior written authority of the Lessor and the Lessee shall comply from time to time and at all times and in all respects with such rules regulations and requirements as are now or in the future may be laid down by the Lessor in its sole discretion in regard to trade and/or other effluent. The Lessee shall provide all plants equipment drains chambers or other things and carry out any treatment or pre-treatment of trade or other effluent as the Lessor in its sole discretion may require. potable water supply.INFRASTRUCTURE (v) Not the require the Lessor to provide any infrastructure except roads. The Lessee may after obtaining the written approval of the Lessor procure to the satisfaction of the Lessor any infrastructural elements to satisfy his/their own needs at his/their own cost and expense provided that the use of these or any of them may not be reserved to the Lessee alone.doc (57) . The Lessor shall have the right and liberty to enter upon the premises with or without notice during business or working hours and take away such samples and carry out such tests on or all the premises as the Lessor in its sole discretion may require. The Lessee shall maintain the infrastructural elements procured by him/them in good repair and condition and in default the Lessor may at any time repair them or cause them to be repaired and carry out any maintenance work which the Lessor may consider necessary. The Lessee shall provide to the Lessor as often as the Lessor may require samples and test reports of effluent being discharged from any machine process building land or any other thing or place whatsoever and also shall furnish the Lessor with any bio-data required by it for analysis testing study or any other purpose. drains and underground sewers.

/var/www/apps/conversion/tmp/scratch_3/168075692. The Lessee shall be solely responsible for any injury or damage caused to any person property or thing arising out of the discharge of effluent on or from the premises and shall keep the Lessor indemnified against any claim or action arising therefrom. Toxic and other hazardous waste effluent will be suitably treated by the Lessee prior to discharge in to the sewerage/drainage system laid by the Lessor.doc (58) . EASEMENT III. If the said rent hereby reserved or any part there of or any other moneys due under this demise shall be unpaid for the period of 15 days next after 'any of the days here in before appointed for payment (whether the same shall have been legally demanded or not) or if default shall be made in the performance or observance of any of the covenants or conditions here in contained or the Lessee shall suffer any distress or execution to be levied on the Lessee's goods then and in any such case if shall be lawful for the Lessor or any person or persons duly authorised by it in that behalf to re-enter upon the premises or any part thereof to have and again repossesses and enjoy as in its first and former estate anything here in contained to the contrary notwithstanding and thereupon the term hereby created shall cease without prejudice to any right of action or remedy of the Lessor in respect of any antecedent breach of any of the covenants by the Lessee. The Lessee shall not be or become entitled to any right of access or light or air to the premises or to any other right privilege or easement save as here in specifically granted which would restrict or interfere with the use of any adjoining or neighbouring land or building or any other purpose. SEPARATE AGREEMENT REGARDING DISPOSAL Of DANGEROUS SUBSTANCES (y) The Lessee shall where the Lessor deems it necessary enter into a separate agreement regulating the discharge and/or disposal of dangerous or noxious substances trade and/or other effluent couched in such terms and including such provisions and conditions as the Lessor alone may decide. which if may arise or be incurred as a direct or indirect result of the exercise of its powers set out herein.Notwithstanding the foregoing the Lessor shall not be in any way liable or responsible to the Lessee or any third part for any loss or damage. NON-PAYMENT IV.

PEACEABLE ENJOYMENT VII.doc (59) . /var/www/apps/conversion/tmp/scratch_3/168075692. Any notice decision direction approval authority permission or consent which may be given by the Lessor under this lease shall be valid and effectual if signed by the Lessor or such officer or agent ad the Lessor may from time to time designate for the purpose and shall be deemed to have been validly served on or conveyed to the Lessee if posted at the premises and is certified as having been so posted by an employee of the Lessor and any such notice required to be served upon the Lessor shall be effected by the Lessee by sending the same by prepaid registered post to the Lessor's chief office where it shall from time to time be located. SERVICE OF NOTICE VIII. Should the Lessee being a company go into or be taken into liquidation by institution of legal proceeding or in any other manner or commit any act of insolvency or bankruptcy or the Lessee being and individual or partnership be adjudged insolvent or bankrupt or enter into any arrangement with his/their creditors this lease shall terminate forthwith and the Lessor shall be entitled to reenter and take possession of the premise without notice and shall have first charge lien and priority over and in respect of the Lessee's properties goods chattels and assets thereon to the full extent on the Lessor's claim. l infringement. INSOLVENCY OR BANKRUPTCY VI. The Lessee hereby agrees to indemnify and keep indemnified the Lessor from and against all liability in respect of loss damage actions proceedings suits claims demand costs damages liability and expenses in respect of any injury to or the death of any person damage to any property movable or immovable the.NON-AVAILABILITY INSURANCE V. disturbance or destruction of any rights easements or privilege or otherwise by reason of destruction of any rights easements or privilege or t otherwise by reason of or arising in any way directly or indirectly out of the repair state of repair condition of the aforesaid premises and to effect or cause to be effected the necessary third party and public liability insurance with an insurance company to be approved by the Lessor in the joint names of the Lessee and Lessor to cover this indemnity and at least in such minimum sum as shall be determined by the Lessor from time to time and to provide such policies and receipts for premiums to the Lessor as required in respect of the all risks insurance. The Lessor hereby covenants with the Lessee that the Lessor paying the rents herein before reserved and performing and observing the covenants and : conditions and agreements on the part of the Lessee herein before contained shall and may peaceably and quietly hold and enjoy the premises for the term hereby granted without interruption from or by the Lessor or any person lawfully claiming through or under them.

PROVIDED AL WAYS that the lessor reserves the right to withdraw/cancel/revoke the allotment of the-Lessee if Lessee commits any breach or violates any of the terms & conditions agreed upon between the Lessee and the Lessor under this agreement or any other agreement.LAW APPLICABLE IX. The Lessee shall arrange to obtain proper stamp paper for execution of this indenture and shall also pay the registration charges. purpose for which allotment was accorded is not being fulfilled. MASTER CLAUSE XIII. STATUS & BYELAWS XI. the Port Qasim Authority lands and Buildings (Recovery of Possession) Rules 1975 and Magistrates conferred with jurisdiction thereunder shall have full power and jurisdiction to enforce any claim right liability or obligation of the parties hereunder. It is further provided that Lessor also reserves the right to amend/modify the terms of this agreement as and when considered necessary. The lessee shall carry out the whole of the works in accordance with any relevant statutes byelaws regulations or rules governing the works as laid down/prescribed by the Lessor and/or any competent authority or body subject to the Lessee having obtained the necessary approvals or consents. The Lessee shall pay to tile Lessor upon the signing hereof all its costs in preparing this lease including legal fees a negotiation fee and fees in respect of approval of plans and the inspection by the Lessor as the work proceeds in accordance with the schedule of fees as laid down by the Lessor from time to time. the Port Qasim Authority cc Act 1973" and the rules framed thereunder. or if in the opinion of the lessor. the Ports Act 1908 and the Port Authorities Lands and Buildings (Recovery of Possession) Ordinance 1962. COSTS AND CHARGES X. The Terms of the Agreement to lease earlier signed by the Lessor and Lessee inso-far as they are not reflected in this lease shall be deemed to form part of and be read along with this lease.doc (60) . All rights. obligations and liabilities of the parties shall be governed in accordance with the terms of this lease and the Transfer of Property Act. TERMS OF AGREEMENT TO LEASE XII. /var/www/apps/conversion/tmp/scratch_3/168075692.

2.A Appendix – B Appendix – C Appendix – D Appendix – E Land Charges Authorization Letter Site Plan Implementation Agreement Schedule of Amenity Covenants Witness 1. month and year first above written.doc (61) . 2. ___________________________ ___________________________ /var/www/apps/conversion/tmp/scratch_3/168075692. 4. 3.IN WITNESS WHEREOF: The parties hereto have affixed their respective hands and seals to this Agreement on the day. 5. Appendix . LESSOR LESSEE Enclosure: 1.

Not at any time to load or permit or suffer to be loaded any part of the floor of any building or any structure and being on the premises or any part of the roof of any such building or erection to a weight in excess of that for which it shall be designed which shall in the opinion of Lessor constitute a danger to the said building or floors there of. 7. Not to stack or deposit boxes cartons crates or containers of any description or other materials on any portion of the premises used for access purposes or car parking. 5. To keeps in good order and repair any hard standing provided for the parking of motor vehicles and any other land forming part of the premises and used for car parking or otherwise not covered with authorized buildings. LESSOR LESSEE 2.doc (62) . 6.Appendix E SCHEDULE OF AMENITY COVENANTS 1. Not without the consent in writing of the Lessor make any access way through the compound walls of the premises. The Lessee shall not permit his/their own vehicles or those of his/their servants and workmen or any other persons visiting the premises to cause any obstruction on any adjoining road and ensure that vehicles belonging to the Lessee or other persons as aforesaid shall observe all regulations and instructions made or given by the Lessor with regard to the parking of vehicles on the said roads or in spaces reserved for the parking of vehicles. 3. /var/www/apps/conversion/tmp/scratch_3/168075692. Not to use or suffer to be used the premises or any part thereof for the manufacture or storage of beers. wines spirits or intoxicants. Not to form any refuse dump or rubbish heap on the premises but to remove not less frequently than one every three days all refuse scrap tins cans bottles boxes and other containers or packaging materials which may have accumulated on/or in the building or on the premises and generally in conformity with the preceding paragraph here of to keep such parts of the premises as remain for the time being un built upon clean and in good order PROVIDED that nothing here in shall prevent the storage in neat and proper order upon any parts of the premises as aforesaid or any material returnable packing cases boxes or other protective covering used by the Lessee in connection with his/their operations. 4.

THE CONDITIONS of this Bond are such that: If the Company shall duly perform and observe all the terms. will give this irrevocable and unconditional Performance Bond in the sum mentioned herein above. operate and transfer the Floating Liquefied Natural Gas (LNG) Terminal at Port Qasim (hereinafter called the "Project"). such amount representing the security amount to be furnished by the Company for the due fulfillment of the Company's obligations in respect of the Project as described in the IA in letter and spirit. Whereas. _____________________________ (hereinafter called "Bank").7 Form of Performance Bond Guarantee No: _______________ Date of issue: ________________ USD 1.00 million. payable in equivalent Pak Rupees Amount: ___________________ Expiry Date:__________________ By THIS we M/s. conditions and stipulations of the IA on the company's part to be performed and observed according to the true purpose. (hereinafter called the "Authority") in the sum of Rs.SCHEDULE . this Bond will be revoked in full and become null and void one year after the date of signing of this Performance Bond (hereinafter called "the Date of Issue") as provided in Article 3. this Bond shall remain valid in full period until the Date of Expiry. /var/www/apps/conversion/tmp/scratch_3/168075692. the Bank. then this obligation shall be null and void. _______________________ (hereinafter called the "Company") and the Authority have entered into an Implementation Agreement (hereinafter called "lA") to build. but no alteration and terms of IA by mutual consent between the Authority and the Company or any forbearance in or in respect of any matter or thing concerning the IA on the part of the Authority shall in any way release the Bank from any liability under the above written Bond. provisions. duly notified to the bank in writing by the authorized representative of the Authority during the period from the Date of Issue until one year after the Date of Issue ("hereinafter called "Date of Expiry") as described in the IA unless arbitration has already commenced between the parties according to the lA. in case of default by the Company of which default the Authority shall be the sole judge. _________ (_________________________________ only) for the payment of which sum the bank bind themselves.doc (63) . otherwise. the Bank shall pay to the Authority upto the amount of this Bond without reference to the Company or anyone else raising the question whether any default has taken place or not.19 of the IA. in conformity with the provisions of the IA. NOW. NOW THEREFORE. Whereas such lA entered into and based upon our representation we. their successors and assigns by these presents. whose registered office is situated at ________________________ are held firmly bound unto the PORT QASIM AUTHORITY. intent and meaning thereof.

irrespective whether or not the original of this Bond is returned to the Bank for cancellation. this Bond shall become null and void ultimately on ………………… unless extended by the Bank. /var/www/apps/conversion/tmp/scratch_3/168075692. Irrespective of anything mentioned hereinabove. Claim received after the expiry date will not be honoured.This Performance Bond is binding on the Bank and is irrevocable. SEALED AND DELIVERED BY THE BANK Seal and date ………………………………. For and on behalf of ………………………………. SIGNED.doc (64) .

SCHEDULE – 8 The Financial Model /var/www/apps/conversion/tmp/scratch_3/168075692.doc (65) .

doc (66) .SCHEDULE – 9 Financing Plan /var/www/apps/conversion/tmp/scratch_3/168075692.

doc (67) .SCHEDULE – 10 Letter of Intent /var/www/apps/conversion/tmp/scratch_3/168075692.

1350/06 dated January 12. __________________________ dated ____________________. 2007 read with subsequent clarifications submitted under letter No.SCHEDULE – 11 The Proposal The Proposal submitted to Port Qasim Authority by M/s. /var/www/apps/conversion/tmp/scratch_3/168075692. Associated Group under its forwarding letter No.doc (68) .

SCHEDULE – 12 Consents /var/www/apps/conversion/tmp/scratch_3/168075692.doc (69) .

SCHEDULE 13 Schedule of Royalty Payments to PQA by the Company 1.00 / tonne /var/www/apps/conversion/tmp/scratch_3/168075692.50 11-15 yr $/ tonne 0. Royalty payable on account of LNG and NGL shall be as follows (Import and Export handling).doc (70) .80 21-25 yr $/ tonne 0. 1-5 yr $/ tonne 0.10 2.95 26-30 yr $/ tonne 1. Royalty on account of LPG (Import handling) Year 1-5 6-10 11-15 15-30 US$/ tonne 3 4 5 6 3. Royalty on account of LPG (Export handling) US$ 1.40 6-10 yr $/ tonne 0.65 16-20 yr $/ tonne 0.

DRAFT SCHEDULE – 14 Security Manual /var/www/apps/conversion/tmp/scratch_3/168075692.doc (71) .

DRAFT SCHEDULE .doc (72) .15 Port Operation Manual /var/www/apps/conversion/tmp/scratch_3/168075692.

DRAFT SCHEDULE – 16 Accident Prevention and Safety Manual /var/www/apps/conversion/tmp/scratch_3/168075692.doc (73) .

DRAFT SCHEDULE – 17 Emergency Manual /var/www/apps/conversion/tmp/scratch_3/168075692.doc (74) .

doc (75) .SCHEDULE – 18 Schedule of Charges to be Paid to PQA by the Company /var/www/apps/conversion/tmp/scratch_3/168075692.

SCHEDULE – 19 Environmental Impact Assessment /var/www/apps/conversion/tmp/scratch_3/168075692.doc (76) .

doc (77) .SCHEDULE – 20 Schedule of Depreciation of Assets /var/www/apps/conversion/tmp/scratch_3/168075692.

DRAFT SCHEDULE .doc (78) .21 Schedule of Tariff As per Article 20 /var/www/apps/conversion/tmp/scratch_3/168075692.

director. interest. privilege or other obligation or benefit from the Government of Pakistan (GOP)/PQA or any administrative subdivision or agency thereof or any other entity owned or controlled by the GOP/PQA including the Employer through any corrupt business practice. sponsor or subsidiary. finder’s fee or kickback given by the Applicant as aforesaid for the purpose of obtaining or inducing the procurement of any contract. The Company certifies that it has made and will make full disclosure of all agreements and arrangements with all persons in respect of or related to the transaction with the GOP / PQA or the Employer and has not taken any action nor will it take any action to circumvent the above declaration. Without limiting the generality of the foregoing. any commission. contract or other instrument be avoidable at the option of the GOP / PQA or the Employer. weather described as consultation fee or otherwise. The Company accepts full responsibility and strict liability for making any false declaration. privilege for other obligation or benefit whatsoever the GOP/PQA or the Employer. not making full disclosure. agrees to indemnify GOP/PQA and the Employer for any loss or damage incurred by them on account of its corrupt business practices and further pay compensation to the GOP / PQA and/or the Employer in an amount equivalent to ten times the sum of any commission. interest. 2. bribe.SCHEDULE – 22 Integrity Pact The _____________________ [hereinafter called the ‘Company’] hereby declares that it has not obtained or induced the procurement of any contract. right. representation or warranty. the Applicant represents and warrants that it has fully declared the brokerage. privilege or other obligation or benefit whatsoever from GOP/PQA or the Employer. finder’s fee or kickback.. paid or payable to anyone and not given or agreed to give and shall not give or agree to give to anyone within or outside Pakistan either directly or indirectly through any natural or juridical persons. bribe. right. fees etc. without prejudice to any other right and remedies available to the GOP /PQA or to the Employer under any law. gratification. representation and warranty. right. associate. ____________________________ /var/www/apps/conversion/tmp/scratch_3/168075692.doc (79) . notwithstanding any rights and remedies exercised by the GOP/PQA in this regard. The Company. commission. with the object of obtaining or including the procurement of a contract. agent. right. promoter shareholder. interest. interest. broker. including its affiliate. privilege or other obligation or benefit obtained or procured as aforesaid shall. except the which has been expressly declared pursuant hereto. misrepresenting facts or taking any action likely to defeat the purpose of this declaration. gratification. The Applicant agrees that any contract. consultant.

Ahmad Date: _________________ Pakistan GasPort Limited In the presence of: 1. ____________________________ /var/www/apps/conversion/tmp/scratch_3/168075692. ____________________________ 2.AND Mr. Iqbal Z.doc (80) .

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