BiZ Contract Translation _ chapter 3

ARTICLE 1 -

WARRANTY

13.1

CONTRACTOR warrants and guarantees that the WORKS shall be performed in a
professional manner in accordance with good and sound offshore engineering and industry
practices and with the requirements and conditions of this CONTRACT.

13.2

CONTRACTOR warrants that the design, equipment and products supplied under this
CONTRACT comply with the technical specifications, are free from defects in materials, free
from defects in workmanship, fit and suitable for the purpose and use for which they are
intended as stated in this CONTRACT.

13.3

Notwithstanding anything contrary under this CONTRACT, if the defects appear within
the warranty period as described above, CLIENT shall notify CONTRACTOR of the defects. At
CLIENT's option, CLIENT may instruct CONTRACTOR to repair or replace or remedy the
defective WORKS at no charge to CLIENT. Alternatively, CLIENT may repair or replace or
remedy the defective WORKS and any/all expenses incurred by CLIENT for such repair or
replacement or remedy work shall be reimbursed by CONTRACTOR.

13.4

The scope of CONTRACTOR’s warranty shall cover all expenses incurred in the repair,

after invoicing for all such costs. In any events, CONTRACTOR shall guarantee the WORKS in
the same term provided in the foregoing Articles.

END OF ARTICLE

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ARTICLE 2 10.1

10.2

INSURANCE

CONTRACTOR shall at its own cost and expense carry and maintain in full force
throughout the duration of this CONTRACT at least the following insurances with companies
satisfactory to CLIENT. Nothing contained herein shall serve in any way to limit or waive
CONTRACTOR's responsibility under this CONTRACT. The insurances to be carried by
CONTRACTOR are as follows:
(a)

Workmen's Compensation and/or Employer's Liability Insurance or similar
statutory social insurance as required by law at the Work Site where the WORKS will
be performed and which may be applicable covering all CONTRACTOR'S employees
engaged in accomplishing the WORKS.

(b)

Comprehensive General Third Party Liability Insurance covering all operations
hereunder against bodily injury, death, loss of, or property damage with minimum limits

of one insured Party incurring liability to any of the other insured Parties, the insurance shall
apply for the benefit of the Party against whom claim is or may be made in the same manner
as if separate policies had been issued to each insured Party.

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10.3

All deductibles, exceptions, and exclusions applicable to the foregoing insurances resulting
from any act or omission of CONTRACTOR shall be for the account of and be paid by
CONTRACTOR. Any breach of conditions and/or warranties contained in such policies of
insurances shall also be for the account of CONTRACTOR.

10.4

CONTRACTOR shall fully indemnify CLIENT against loss or damage arising out of any failure
to effect or maintain such insurances specified by this CONTRACT or out of any act or
omission which invalidates the said insurances.

10.5

CONTRACTOR shall within fourteen (14) days of the award of this CONTRACT furnish to
CLIENT certified copies of certificates of insurance provided for in ARTICLE 10.1 hereof
including evidence of premiums payments thereof. No insurance shall be materially changed
or cancelled while the WORK(S) is in progress without prior written approval by CLIENT.
Policies and/or extension certificates or documents shall be furnished to CLIENT.
If requested by CLIENT, CONTRACTOR shall permit CLIENT to examine copies of its
and its Sub-contractors original insurance policies and current premium receipts.


Sub-contractor's insurance shall be for the sole responsibility of CONTRACTOR.

10.10 The amounts of CONTRACTOR furnished insurance called for herein shall be the minimum
and not the maximum limits of liability. CONTRACTOR may provide other insurance coverage
or higher limits of coverage. CLIENT will bear no financial liability attributable to deficient
insurance coverage by CONTRACTOR.
10.11 CONTRACTOR shall not commence the shipment of equipment and materials or commence
WORKS until all the insurances that CONTRACTOR is required to provide are in full force.
END OF ARTICLE

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