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Subcontract Number: page 9 / 9SUB-CONTRACT AGREEMENTHeavy Lifting with Site Supervision ServiceSUB-CONTRACTOR NUMBER:BETWEENCOMPANY LTD. OF CHINA AND CHUNJO CONSTRUCTION SAUDI COMPANYSUBCONTRACT AGREEMENTThis contract is entered into by and between AndChunjo Construction Saudi Company, P.O. Box 2626, Al-Jubail, hereinafter called Chunjo.Whereas XXX has made a construction contract with DAELIM Saudi Arabia Co. Ltd (hereinafter called DAELIM) for Mechanical Works under the standard contractual terms and conditions of Saudi Kayan Petrochemical Complex (hereinafter called Owner) HDPE Project, in Al Jubail, wherein XXX desires that the Works known as Supply of Heavy Lifting and Site Supervision Service with Necessary Cranage Equipment / Devices shall be executed by Chunjo, and has accepted a proposal for execution and completion of the works.The both parties, hereby, in consideration of the mutual negotiations set forth herein, agree as follows:In this Agreement, works and expressions shall have the same meanings as are respectively assigned to them in the Terms and Conditions of the Agreement hereinafter referred to.The following documents shall be deemed to form and be read and construed as part of this Agreement and the priority of the document shall be in the order as given below:(a) Sub-Contract Agreement(b) Clarifications(c) Terms and Conditions(d) Proposal of the WorksThe Subcontract Amount shall be the fixed Lump Sum of USD630, 000.00 (six hundred and thirty thousand only), which is equal to SAR2, 362,500.00(two million three hundred and sixty two thousand five hundred only) at the fixed currency exchange rate of USD1=SAR3.75. Subcontract Amount adjustment, if any, shall be proposed by Chunjo and agreed/ accepted by XXX as per Terms and Conditions.The Subcontract duration shall be commenced from May 1ST, 2009 upto May 31ST, 2009, including Fridays and holidays. Extending of the subcontract shall be proposed by Chunjo and accepted/agreed by XXX as per Terms and Conditions.In witness whereof the Parties hereto have caused this Agreement signed by the following representatives.For and onbehalf of XXX For and onbehalf of Chunjo_ _XXX Project ManagerTerms and ConditionsI Scope of Work1.1 Heavy Lifting WorkChunjo will supply heavy cranes with all necessary assemblies/ accessories/ spare parts to XXX designated location on the agreed date to perform lifting work for the following equipment and install them onto the assigned locations with compliance to the DAELIM and/or Owners standards and specifications, such lifting work shall be directed by XXX site supervisors:List of Equipment to be lifted:s/nEquipment DescriptionWeightLocationEquipment No.TypeSize1PV R-26121V4900mmID x 15400mmH187.7 TonSee attached DWG2PV R-26122V4900mmID x 15400mmH186.4 TonSee attached DWG3PV R-26124V4900mmID x 15400mmH190.3 TonSee attached DWG4PV V-26131V4900mmID x 21000mmH119.4 TonSee attached DWGTotal 683.9 Ton1.2 Site Management Work1.2.1 Chunjo will assign sufficient numbers of competent personnel to organize its own site crew, including but not limited to:Site SuperintendentSite Coordinator (handling safety issues and supporting XXX HSE department)Crane OperatorsRiggers for each crane if mobilizedHelper for site supporting and housekeeping1.2.2 Chunjo site crew will strictly follow the Rigging Plan approved by XXX and DAELIM/ Owner during their work of:Cranes mobilization/ demobilization, cranes assembly/disassembly, third party inspection of the cranes (if required by XXX), lifting, and other work items stated in the approved rigging plan.1.2.3 Chunjo site crew shall report to XXX regularly for his progress on performing of the lifting work by written form.II Schedule2.1 Scheduled DurationThe lifting work shall be performed as per XXX formal notice.The service duration shall be commenced from May 1st, 2009, starting from site preparation, crane assembly, etc., and shall be completed upon May 31st, 2009 when all Chunjos equipment exits the XXX work site.Any time / schedule change, forwarding and/or postponing, has been predicted by Chunjo in his proposals and rigging schedule. 2.2 Overall Rigging Schedule Chunjo will submit separately an overall rigging schedule which will be subject to approval of XXX with comprehensive comparison of the master construction schedule made by DAELIM and/or Owner. Such Overall rigging schedule shall include but not limited to:Mobilization of all cranes with necessary assemblies/ accessories/ spare parts,Assembly / disassembly of master/main lifting crane,Assembly disassembly of tailing / supporting crane,Lifting sequence and time estimation,2.3 Schedule ExtensionThe Schedule shall only be extended due to the following reasons:- If, with the sole fault of DAELIM and/or Owner for late arrival of the equipment to be lifted and listed in the above Lifting List, and/or any other reasons that is beyond XXXs control, the lifting schedule is delayed, and consequently, the lifting work could not be completed with the agreed duration, namely before the date of May 31st, 2009, the schedule shall be extended for a certain period. Duration of such extended period shall be calculated in accordance with the Subcontract Agreement.- Severe WeatherChunjo shall immediately report to XXX, officially, since the first day of suffering such conditions. Such conditions shall be reported case by case, cumulative days in difference cases affecting by such conditions during the whole duration of site works shall not be accepted. Such conditions shall include, heavy rain /snow that all lifting work will not be allowed by DAELIM and/or Owner, strong wind that all lifting work will not be allowed by DAELIM and/or Owner, sand storm that all lifting work will not be allowed by DAELIM and/or Owner, only.Construction duration shall be extended, for each case under above circumstances, for the same period between the first and the last reporting days of such conditions that are accepted by XXX. Odd day shall be calculated as part of the day by means of hours. One working day shall be 10(ten hours) only.The Schedule shall not be extended due to the following reasons:- Suspending time for regular and/or unexpected site auditing, by XXX and DAELIM/Owner, during construction, on construction progress, safety, and quality shall not be compensated and/or extended.- Time lost due to Chunjos responsibilities, like repetition of works due to poor quality, site suspending due safety regulation violations, improper site organization, workers on striking and etc., whenever it is confirmed by XXX, shall not be compensated and/or extended.III. Site Safety Control and House Keeping3.1 Chunjo shall provide all employees, working on the site, proper regular PPE and/or special safety stuff/facilities whenever they are required by XXX.3.2 Chunjo shall assign safety coordinator as per request of XXX for supervising of site working.3.3 Chunjo shall organize site safety within the construction area where Chunjo site crew are working, as per SABIC standards and/or XXX specifications.3.4 Chunjo shall make housekeeping, including but not limited to: material piling/keeping, equipment with attached pipes/hose/wires/cables laying, solid and/or fluid waste collecting and disposing, according to SABIC standards and/or XXX specifications.3.5 PermitsXXX will prepare Work Permits for Chunjos site activities. All site activities shall be reported to XXX at least 24 hours prior to commencement, if there is any special requirement that is regulated by DAELIM / Owner for application of work permit, the requirement shall be prevailed.IV. Site Quality Control4.1 Chunjo shall supply site quality coordinators as per XXX requests for supervising of site working.4.2 Chunjo shall organize site quality for the works performed by Chunjo site crews work as per SABIC standards and/or XXX specifications.V. Document Control5.1 Chunjo shall prepare and submit to XXX the Rigging Plan for approval prior to site working.5.2 Chunjo shall prepare and submit to XXX the safety and/or quality related Check List requested by XXX for approval during site working.5.3 Chunjo shall prepare and submit to XXX the turnover document packages requested by XXX for approval after completion of site working. XXX will comment /approve submissions made by XXX within 12(twelve) working days of its receipt.VI. Payment Schedule6.1 XXX will not release advance payment to Chunjo prior to and/or post its mobilization.6.2 XXX will release 85% of the contract amount / Subcontract Price to Chunjo as the progress payment within 15(fifteen) working days after completion of site lifting work of the four equipment listed in the Lifting List. The payment shall only be released against full supporting document.6.3 XXX will release 15% of the contract amount / Subcontract Price to Chunjo as the final progress payment within 30 (thirty) working days after XXXs official notice for acceptance of turnover document packages is issued by XXX.VII. Claims and Back-chargesThe site construction would subject to changes/verifications on delay of material delivery, engineering modifications, and other occurrences that will induce claims on commercial compensation and/or schedule extension. The following claims shall be rejected by XXX if raised by Chunjo:7.1 Construction drawings updating and/or revising, by DAELIM/Owner and/or Vendor, on the scoped / proposed portion if it does not delay /change Chunjos defined/proposed scope of work.7.2 construction error and/or quality defects due to Chunjos responsibilities solely.7.3 Idle time for manpower and/or equipment for site construction suspending due to violation of site safety and/or quality principles in accordance to SABIC standards and/or XXX regulations.7.4 Increasing of manpower and/ or equipment/ tools for, in total numbers and/ or capacities/ categories so as to catch up and/ or make up and /or shorten construction schedule/ duration due to and/or by Chunjos own decisions.7.5 Introducing and/or adopting diffe

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