Article 4 Contract Price

4.1 Price - The total price for the work specified in Article 3 shall be * United States Dollars (U.S.$).

[Note that this is a lump sum clause. Depending on the circumstances, it may be appropriate to have a separate price (i.e., equipment vs. labour price), estimated prices, bonus charges, a currency clause linking the price to the exchange rate, price escalation provision or hardship clause which specifies the maximum amount of price escalation which permits the Seller to renegotiate or terminate the contract.]

Article 5 Payment

5.1 Payment - The Buyer shall effect payment to the Seller by means of an irrevocable letter of credit which the Buyer shall cause to be opened by a bank in *, U.S. in favour of the Seller, within * (*) working days of receipt from the Seller of this Agreement containing the authorized signature of the Seller.

5.2 Letter of Credit - The letter of credit shall be in the total amount of U.S. $ *. [If acting for the Buyer and you have inserted the option to the Buyer to increase the order in paragraph 3.1 and a letter of credit is being used, the following should be inserted: which may subsequently be increased up to U.S. $ * if the Buyer exercises the option provided in paragraph 3.1] and shall remain available for drafts drawn thereon (subject to the terms thereof), up to *. The letter of credit shall, among other things, provide as follows:

(a) Drafts shall be drawn at sight against presentation of shipping and title documents covering each shipment [INCOTERM and place of shipment should be specified, or such other delivery which has been agreed upon] in conformance with this Agreement and the terms of the letter of credit.

(b) Shipping documents shall include any inspection certificate provided for in paragraph *.

[(c) If the minimum quantity set forth in the shipment schedule referred to in paragraph * of this Agreement is not delivered within the period allowed for such minimum quantity, the letter of credit shall cease to be available for that or any subsequent shipment.]

[Delete subparagraph (c) above whenever a shipment schedule is not required.]

(d) Amendments to the letter of credit shall only be made in conformance with amendments to this Agreement. The Buyer shall request the opening bank to effect any such amendments to the letter of credit by notifying the advising bank by [telex or telecopy]. The Seller agrees to confirm the acceptance of the initial letter of credit to the advising bank and of any amendments thereto made in conformance with this Agreement within [*] days of telex advice by the advising bank to the Seller.

(e) Notwithstanding the foregoing, in the event that the Seller requires amendments to the letter of credit to permit use of changed shipment schedules or for other urgent reasons which the Buyer approves, amendments to such terms may be made by [telex or telecopy] exchanged between the Seller and the Buyer, and the Buyer shall amend the letter of credit in conformance therewith. [Provisions, if any, for any performance bonds, partial/final payments against delivery/timely completion or other special payment provisions should be stated in this paragraph.]