Wgndoc01-#1581098-V5-Maritime Nz Meosar Epc Agreement

8/11/2019 Wgndoc01-#1581098-V5-Maritime Nz Meosar Epc Agreement

1/54

MEOSAR Engineering,

Procurement andConstruction

Agreement

Maritime New Zealand

[insert name]


2/54

CONTENTS

1 DEFINITIONS AND CONSTRUCTION 1

1.1 e!ined terms 11." Construction #

1.$ Priorit% 11

2 OVERVIEW 12

".1 &erm 1"

"." A''ointment1"

".$ Sale and 'urc(ase 1"

".) No e*clusi+it% 1"

". Per!ormance -ond 1"

3 MNZ RESPONSIBILITIES 12

$.1 MNZ n'uts 1"

$." Site access 1"

$.$ Remedies 1"

4 SUPPLIER RESPONSIBILITIES 13

).1 /or0s and Solution1$

)." Resources 1$

).$ S0ill and care 1$

).) Coo'eration and remediation 1$

). 2ealt( and Sa!et% 1$

).3 4aws, Consents and Standards 1$

).5 Securit% 1)).6 Personnel 1)

).# Ot(er S%stems 1)

).17 No in!ringement 1

).11 ue diligence 1

5 RISK AND TITLE 15

.1 Ris0 1

." &itle 1

6 PROJECT MANAGEMENT 16

3.1 Pro8ect Re'resentati+es 13

3." Meetings 13

3.$ Progress re'orts 13

7 PROJECT RISKS AND ADJUSTMENTS 17

5.1 Pro8ect Ris0s15

5." Ad8ustment 15

5.$ Assessment 15

5.) Re+iew -% Pro8ect Re'resentati+es 16

5. Ad8ustment Notice 16

5.3 is'ute Notice 16

5.5 E!!orts to mitigate 1#

1777"61""91617#6.


3/54

8 SITE COMPLETION 1

6.1 ns'ection 1#

6." Site Com'letion 1#

6.$ Ac0nowledgement 1#

ACCEPTANCE TESTING 2!

#.1 Pre'aration o! test 'lans "7

#." Re+iew and !inalisation o! test 'lans "7

#.$ Acce'tance &esting "7

#.) &est results and noti!ication "1

#. Milestones "1

#.3 Ac0nowledgement "1

1! "ANDOVER 21

17.1 Prere:uisites !or 2ando+er "1

17." Re:uest !or 2ando+er Certi!icate"$

17.$ ssue o! 2ando+er Certi!icate "$

17.) Res'onsi-ilit% !rom 2ando+er "$

17. Ac0nowledgement "$

17.3 4i:uidated damages ")

11 DEFECTS 24

11.1 e!ects Correction Period ")

11." /arrant% ")

11.$ E*clusions ")

11.) Remed% "

12 PRICE AND PA#MENT 25

1".1 Contract Price "

1"." &a*es "

1".$ n+oicing "3

1".) Su''orting in!ormation "3

1". Pa%ment "3

1".3 E!!ect o! 'a%ment "3

1".5 4ate 'a%ments "5

1".6 Pa%ment dis'utes "5

1".# O+er'a%ments "5

1".17 Ac0nowledgement "5

13 RECORDS AND INFORMATION 27

1$.1 Record0ee'ing "5

1$." Pu-lic Records Act "5

1$.$ O!!icial n!ormation Act "5

1$.) Access to ot(er in!ormation "6

14 AUDIT 28

1).1 Rig(t to audit "6

1)." Audit Notice "6

1).$ Auditor "#

1).) Access to 'remises "#

1777"61""91617#6.


4/54

1). Access to materials"#

1).3 Costs "#

1).5 ;o+ernment O!!icials $7

15 INTELLECTUAL PROPERT# 3!

1.1 Pree*isting P $7

1." Rig(ts owned -% MNZ $7

1.$ Rig(ts owned -% Su''lier $7

1.) 4icence !or MNZ $7

1. 4icence !or Su''lier $7

1.3 So!tware $1

1.5 /arranties $1

1.6


5/54

21 INSURANCE 37

22 DISPUTE RESOLUTION 37

"".1 is'utes $5""." Notice and consultation $5

"".$ Escalation $5

"".) Mediation $5

"". Ar-itration $6

"".3 Per!ormance and remedies $6

23 OT"ER MATTERS 38

"$.1 Notices and communications $6

"$." Corrections $#

"$.$ Assignment $#

"$.) Su-contracting $#

"$. >urt(er assurances $#

"$.3 4egal nature o! relations(i' $#

"$.5 Pri+it%$#

"$.6 4aw and 8urisdiction $#

"$.# No /ai+er )7

"$.17 Amendments )7

"$.11 Entire Agreement )7

"$.1" Se+era-ilit% )7

"$.1$ Counter'arts)7

SIGNATURES 4!

SC"EDULE 1% WORKS DESCRIPTION 41

SC"EDULE 2% TIMETABLE 42

SC"EDULE 3% SITE 43

SC"EDULE 4% CONTRACT PRICE 44

SC"EDULE 5% C"ANGE PROCESS 45

SC"EDULE 6% FORM OF PERFORMANCE BOND 47

SC"EDULE 7% SOLUTION RE$UIREMENTS 48

SC"EDULE 8% SOFTWARE LICENCE TERMS 4

1777"61""91617#6.


6/54

1777"61""91617#6. 1

MEOSAR ENGINEERING& PROCUREMENT AND CONSTRUCTION AGREEMENT

Date:

PARTIES

M'()*)+, N,- Z,'.'/0, a Crown entit% continued under t(e Maritime &rans'ort Act 1##),

wit( o!!ices at 4e+el 17, O'timation 2ouse, 1 ;re% Street, /ellington @MNZ

insert name[insert details] @Supplier

BACKGROUND

A n consultation wit( MNZ, t(e Australian Maritime Sa!et% Aut(orit% @AMSA issued an

A''roac( to Mar0et !or MEOSAR Ca'a-ilit% !or New Zealand and Australia @ATM on

or a-out [date]. Su''lier res'onded to t(at A&M wit( a 'ro'osal to MNZ and AMSA

dated [date] @Proposal.

= n reliance on t(e Pro'osal and su-se:uent 'resentations and clari!ications recei+ed

!rom Su''lier, MNZ wis(es to a''oint Su''lier to carr% out t(e /or0s, including t(e

'rocurement, installation, con!iguration, testing and commissioning o! t(e Solution.

&(is agreement sets out t(e terms and conditions o! t(at a''ointment.

T"E PARTIES AGREEas !ollowsB

1 DEFINITIONS AND CONSTRUCTION

1.1 D,)/,0 *,(+

n t(is agreement, unless t(e conte*t re:uires ot(erwiseB

Acceptance means acce'tance -% MNZ in accordance wit( clause #.

Acceptance Tests andAcceptance Testing (a+e t(e meanings gi+en in clause #.".

Affiliate in relation to an entit%, means an% ot(er mem-er o! t(at entit%?s ;rou',

and an% Contractor or Personnel o! an% mem-er o! t(at entit%?s ;rou'.

Adjustment (as t(e meaning gi+en in clause 5.".

Adjustment Event meansB

@a a dela% or !ailure -% MNZ to 'ro+ide an MNZ n'ut wit(in t(e time!rames

re:uired -% t(is Agreement

@- a -reac( -% MNZ o! its ot(er o-ligations under t(is Agreement

@c an e+ent o! >orce Ma8eure and9or

@d a !ailure -% MNZ to 'ro+ide access to t(e Site as re:uired -% t(is Agreement.


7/54

1777"61""91617#6. "

Agreement means t(is MEOSAR Engineering, Construction and Procurement

Agreement, including its Sc(edules.

AMSA means t(e Australian Maritime Sa!et% Aut(orit%, esta-lis(ed under t(eAustralian Maritime Sa!et% Aut(orit% Act 1##7.

Approved Test Plan (as t(e meaning gi+en in clause #.".

ATM (as t(e meaning gi+en in t(e =ac0ground to t(is Agreement.

Audit (as t(e meaning gi+en in clause 1).1.

Audit Notice (as t(e meaning gi+en in clause 1).".

Auditor (as t(e meaning gi+en in clause 1).$.

Business Day means an% da% e*cluding Saturda%s, Sunda%s and statutor% (olida%s

in New Zealand.

!ange means a c(ange to t(e /or0s escri'tion, &imeta-le, Contract Price, MNZ

n'uts, A''ro+ed &est Plan, or an% ot(er 'ro+ision o! t(is Agreement.

!ange "mpact #eport (as t(e meaning gi+en in section "o! t(e C(ange Process.

!ange Memorandum means a DC(ange Memorandum e*ecuted -% -ot( Parties,

identi!%ing t(e C(ange Re:uest to w(ic( it relates, and clearl% stating t(at it !orms

'art o! and amends t(is Agreement.

!ange #e$uest (as t(e meaning gi+en in section 1o! t(e C(ange Process.

!ange Process means t(e 'rocess set out in [Sc(edule ].

!ange Memorandum means a DC(ange Memorandum e*ecuted -% -ot( Parties,

identi!%ing t(e C(ange Re:uest to w(ic( it relates, and clearl% stating t(at it !orms

'art o! and amends t(is Agreement.

onfidential "nformation o! a Part% @%&ner, means an% in!ormation in t(e

'ossession or control o! t(e ot(er Part% @'older or its A!!iliates, w(ic(B

@a was originall% ac:uired -% t(e 2older or its A!!iliates t(roug( disclosure@s

made -% or at t(e re:uest o! t(e Owner or its A!!iliates

@- was originall% ac:uired -% t(e 2older or its A!!iliates t(roug( an% +iewing,

ins'ection or e+aluation o! 'remises, !acilities, documents, s%stems or ot(er

assets owned or controlled -% t(e Owner or an% o! its A!!iliates and9or

@c is deri+ed !rom in!ormation o! a 0ind descri-ed in 'aragra'( @a or @- a-o+e

-ut e*cludes an% suc( in!ormation w(ic( t(e 2older can s(owB


8/54

1777"61""91617#6. $

@c was law!ull% ac:uired -% t(e 2older or its A!!iliates, entirel% inde'endentl% o!

t(eir acti+ities in connection wit( t(is Agreement, and is !ree o! an% ot(er

o-ligation o! con!idence owed to t(e Owner or its A!!iliates and9or

@d (as -een inde'endentl% de+elo'ed -% t(e 2older or its A!!iliates wit(out

re!erence to t(e Owner?s Con!idential n!ormation, and wit(out -reac(ing an%

ot(er o-ligation o! con!idence owed to t(e Owner or its A!!iliates.

onsent means an% consent, licence, 'ermit, a''ro+al or t(e li0e, including t(e

Consents identi!ied in t(e /or0s escri'tion as items o-tained @or to -e o-tained

-% MNZ.

ontractor means, in relation to an% mem-er o! a Part%?s ;rou', an% com'an% or

ot(er entit% engaged to carr% out wor0 necessar% !or or ancillar% to t(e 'er!ormance

o! t(at Part%?s o-ligations under t(is Agreement, w(et(er directl% or t(roug( one or

more intermediaries, and w(et(er under an e*isting contract or a contract entered

into s'eci!icall% !or t(e 'ur'oses o! t(is Agreement.

ontract Price means t(e total 'rice 'a%a-le -% MNZ !or t(e com'letion o! t(e

/or0s and t(e su''l% and im'lementation o! t(e Solution, as s'eci!ied in

[Sc(edule ) @Contract Price], as amended or +aried !rom time to time in accordance

wit( t(is Agreement.

ospas(Sarsat Documentation means t(e C9S documentation a+aila-le at

(tt'B99cos'assarsat.org.

Defects orrection Period means a 'eriod o! [ ] mont(s, commencing on t(edate@s s'eci!ied in clause 11.1, as e*tended !rom time to time in accordance wit(

t(at clause.

Developed "P Material means, in relation to a Part%, an% P Material created solel% or

'redominantl% -% t(at Part% @or its Contractors or Personnel in connection wit( t(is

Agreement, including w(ere t(at P Material is an ada'tation or deri+ati+e o!, or a

modi!ication or en(ancement to, t(e ot(er Part%?s Pree*isting P Material@s.

Dispute Notice (as t(e meaning gi+en in clause "".

Dispute #esolution Process means t(e 'rocess in clause "".

Due Date means a due date s'eci!ied in t(e &imeta-le.

Early )arning Notice means a notice gi+en in accordance wit( t(e re:uirements o!

clause 5.1.

Encum*rance means an% securit% interest @as t(at term is de!ined in PPSA, an%

ot(er mortgage, c(arge, lien or ot(er encum-rance, and an% agreement to create

an% o! t(e !oregoing.

Escro& Agreement (as t(e meaning gi+en in t(e SAM Agreement.
http://cospas-sarsat.org/http://cospas-sarsat.org/


9/54

1777"61""91617#6. )

Escro& Agent (as t(e meaning gi+en in t(e SAM Agreement.

Escro& Pac+age (as t(e meaning gi+en in t(e SAM Agreement.

,orce Majeure means an%B

@a act o! ;od, !ire, eart(:ua0e, storm, !lood, or landslide

@- e*'losion or nuclear accident

@c terrorism, sa-otage, riot, ci+il distur-ance, insurrection, e'idemic, national

emergenc% @w(et(er in !act or law or act o! war @w(et(er declared or not

@d wit(out limitation -% re!erence to t(e !oregoing, an% ot(er cause -e%ond t(e

reasona-le control o! t(e Part% claiming relie!,

-ut does not includeB

@e !ailures o! Plant or e:ui'ment

@! non a+aila-ilit% o! la-our, goods, materials, e:ui'ment or ot(er resources

@g stri0es or ot(er industrial dis'utes in+ol+ing t(e Su''lier?s Personnel

@( ad+erse weat(er conditions, or une*'ected ad+erse site conditions, e*ce't to

t(e e*tent t(e /or0s escri'tion e*'ressl% 'ro+ides t(at t(ese conditions are

at MNZ?s ris0

@i an% o! t(e e+ents in @a to @d a-o+e, or an% ot(er e+ent or circumstances, to

t(e e*tent t(at it could (a+e -een 're+ented, allowed !or or o+ercome -% t(e

a!!ected Part% @or w(ere a''lica-le its Contractors or Personnel e*ercising a

reasona-le standard o! !oresig(t, 'lanning and care @including, in t(e case o!

Su''lier and its Contractors and Personnel, t(roug( t(e a''lication o! ;ood

ndustr% Practice

@8 a lac0 o! !unds !or an% reason, including -% reason o! an% o! t(e e+ents in

@a to @d a-o+e or

@0 an% dela%, !ailure or ot(er de!icienc% on t(e 'art o! an% Contractors or

Personnel o! t(e a!!ected Part%, e*ce't to t(e e*tent due to e+ents or

circumstances -e%ond t(e reasona-le control o! t(ose Contractors or

Personnel and not e*cluded -% @e to @8 a-o+e.

-ood "ndustry Practice means at least t(e standard o! 'ractice generall% e*'ected

glo-all% in t(e same or similar circumstances, !rom a s0illed, e*'erienced,

reasona-le and 'rudent contractor engaged in similar acti+it% in similar

circumstances.


10/54

1777"61""91617#6.

-overnment %fficial means an% regulator, go+ernment audit o!!icial, om-udsman or

similar o!!icer entitled to audit or ins'ect an% 'remises, assets, s%stems, records or

data, and includes t(e irector o! MNZ @or (is9(er nominee acting under an% 4aw.

-roup in relation to an% entit%, means t(at entit% and eac( o! its Drelated

com'anies wit(in t(e meaning o! section "@$ o! t(e Com'anies Act 1##$. &o a+oid

dou-t, MNZ is t(e sole mem-er o! its ;rou'.

-ST (as t(e meaning gi+en in t(e ;S& Act.

-ST Act means t(e ;oods and Ser+ices &a* Act 1#6 @NZ.

'andover (as t(e meaning gi+en in clause 17.).

'andover ertificate (as t(e meaning gi+en in clause 17.".

'andover Punc!list (as t(e meaning gi+en in clause 17.$@c.

"nsolvency Event in relation to an entit%, means t(at t(e entit%B

@a ceases, or t(reatens to cease, all or su-stantiall% all o! its -usiness

@- is @or is deemed to -e insol+ent or -an0ru't, or (as a recei+er, li:uidator,

administrator, -an0ru'tc% trustee, statutor% manager or similar o!!icer

a''ointed in res'ect o! all or an% o! its 'ro'ert%

@c ma0es an assignment !or t(e -ene!it o!, or ma0es an% arrangement orcom'osition wit(, its creditors and9or

@d 'asses an% resolution, or is t(e su-8ect o! 'roceedings commenced, !or its

amalgamation wit( an% ot(er entit%, e*ce't !or t(e 'ur'oses o! -ona !ide

sol+ent restructuring.

"ntellectual Property #ig!ts means all 'resent and !uture rig(ts, title and interest in

an% intellectual 'ro'ert% in an% 8urisdiction, includingB

@a 'atents, trademar0s, ser+ice mar0s, co'%rig(t, registered designs, trade

names, rig(ts in domain names, and an% ot(er rig(ts in s%m-ols and logos

@- an% rig(ts to a''l% !or, and an% rig(ts in an a''lication !or, an% registered

'atent, trademar0, ser+ice mar0 and9or design

@c an% ot(er rig(ts o! a 'ro'rietar% nature in res'ect o! tools, tec(ni:ues,

com'uter 'rogram code, data in+entions, disco+eries, de+elo'ments, trade

secrets, in!ormation and logical se:uences @w(et(er or not reduced to writing

or ot(er mac(ine or (uman reada-le !orm and

@d all renewals and e*tensions o! an% o! t(e !oregoing.


11/54

1777"61""91617#6. 3

"nterest #ate means t(e rate o! two 'ercentage 'oints o+er t(e a+erage -u%ing rate

!or #7 da% -an0 -ills 'u-lis(ed on Reuters 'age =


12/54

1777"61""91617#6. 5

@c correcting damage to, or !aults or de!ects in, t(e Site, t(e /or0s, t(e Solution

or an% Ot(er S%stem, w(ere t(e damage, !aults or de!ects occurred in t(e

course o!, or as a direct result o!, t(e -reac(

@d re'lacing goods or materials t(at were lost, stolen or damaged -e%ond re'air

in t(e course o!, or as a direct result o!, t(e -reac( and9or

@e tendering, e+aluating, negotiating, im'lementing and9or transitioning to t(e

su''l% o! re'lacement goods or ser+ices !rom an alternate source, eit(er on a

tem'orar% -asis w(ile t(e -reac( is -eing remedied, or w(ere MNZ (as

e*ercised a rig(t o! termination arising !rom t(e -reac(.

%*ject ode means so!tware in t(e 're!erred !orm !or e*ecuting t(at so!tware in a

li+e 'roduction en+ironment, to t(e e*tent t(at t(is di!!ers !rom Source Code.

%pen Boo+ in t(e conte*t o! an% 'rice, cost or e*'ense 'resented or claimed -%

Su''lier, means t(e 'ro+ision to MNZ o! a !ull, accurate and detailed -rea0down o!

t(e underl%ing com'onents and met(odologies w(ic( contri-ute to t(e calculation o!

t(at 'rice, cost or e*'ense, including !ull details o! all rele+ant e:ui'ment costs,

materials costs, licence !ees, salar% costs, e*ternal la-our or 'ro!essional ser+ices

c(arges, o+er(eads, margins, costs o! ca'ital, ris0 'remiums, and 'ro!it elements,

wit( eac( o! t(e !oregoing -ro0en down into se'arate com'onents !or Su''lier, eac(

mem-er o! Su''lier?s ;rou', and t(eir res'ecti+e Contractors.

%ff(t!e(S!elf Soft&are means t(e so!tware s'eci!icall% identi!ied as DO!!t(eS(el!

So!tware in t(e /or0s escri'tion.

%t!er System means an% (ardware, so!tware, !irmware or radio or

telecommunications e:ui'ment o'erated -% or !or MNZ or AMSA in con8unction wit(

t(e Solution, -ut e*cluding t(e Solution itsel!.

Party means Su''lier or MNZ, as t(e conte*t re:uires.

Permanent )or+s means t(ose 'arts o! t(e /or0s t(at are intended to -e

constructed, erected or installed at t(e Site on a 'ermanent -asis.

Personnel means in res'ect o! an entit%, an% indi+idual w(o is a director, o!!icer,

em'lo%ee, contracted sta!! mem-er or ot(er wor0er o! t(at entit%, or o! t(at entit%?s

Contractors or agents alt(oug( a re!erence to t(e Personnel o! one Part% will not

include an% 'erson w(o :uali!ies under t(e !oregoing de!inition solel% -% reason o!

t(e ot(er Part%?s status as a Contractor or agent o! t(e !irst Part%. &o a+oid dou-t,

MNZ?s Personnel include &(e irector o! Maritime New Zealand.

Plant means all materials, su''lies, a''aratus, mac(iner%, 'arts, tools,

com'onents, s'ares, a''liances, +e(icles and a''urtenances !orming 'art o! t(e

Permanent /or0s.

PPSA means t(e Personal Pro'ert% Securities Act 1###.


13/54

1777"61""91617#6. 6

Pre(e0isting "P means an% ntellectual Pro'ert% Rig(ts t(at arise, or (a+e arisen,

inde'endentl% o! t(e acti+ities o! eit(er Part% and its Contractors and Personnel in

connection wit( t(is Agreement.

Pre(e0isting "P Material means, in relation to a Part%, an% P Material created or

ac:uired -% t(at Part% or its Contractors or Personnel inde'endentl% o! t(eir

acti+ities under t(is Agreement @regardless o! w(et(er t(at Part% later decides to

use t(at P Material !or t(e 'ur'oses connected wit( t(is Agreement.

Price "ncrease means an increase in t(e Contract Price, assessed in accordance wit(

clause 5.

Project #epresentative means t(e re'resentati+e a''ointed -% a Part% 'ursuant to

clause 3.1.

Project #is+ means an% e+ent or circumstances t(at a reasona-le and 'rudent

contractor would regard as carr%ing a real ris0 o! (indering or dela%ing t(e /or0s, or

increasing t(e cost or di!!icult% to Su''lier o! carr%ing out t(e /or0s in accordance


#ates means t(e rates s'eci!ied in section [ ] o! [Sc(edule ) @Contract Price].

SAM Agreement means t(e MEOSAR Su''ort and Maintenance Agreement e*ecuted

-% MNZ and t(e Su''lier on or a-out t(e date o! t(is Agreement.

Scope #eduction means an ad8ustment to t(e /or0s escri'tion or Solution

Re:uirements reducing t(e time, e!!ort and9or cost to Su''lier o! com'leting t(e/or0s in accordance wit( t(is Agreement.

Site means t(e DSite identi!ied in [Sc(edule $].

Site ompletion means t(e issuing o! a certi!icate in accordance wit( clause 6."@a

or 6."@c.

Site Punc!list (as t(e meaning gi+en in clause 6."@c.

Soft&are means t(e DSo!tware as de!ined in t(e /or0s escri'tion.

Solution means all com'uter (ardware, so!tware, !irmware and radio and

telecommunications e:ui'ment wit(in t(e sco'e o! t(e DSolution as de!ined in t(e

/or0s escri'tion, including all ca-ling and ot(er ancillar% items -ut e*cluding an%

'ermanent !i*tures !orming 'art o! land.

Solution #e$uirements means MNZ?s re:uirements and s'eci!ications !or t(e

Solution, as set out or re!erred to in [Sc(edule 5].

Source ode means so!tware e*'ressed in t(e 're!erred !orm !or ma0ing c(anges

to t(at so!tware.


14/54

1777"61""91617#6. #

Stage means eac( grou' o! Solution com'onents identi!ied in t(e /or0s escri'tion

as a DStage to -e su-8ected to Dacce'tance tests.

Stage Punc!list (as t(e meaning gi+en in clause #.).

Standard means an% a''lica-le tec(nical standard, code o! 'ractice, s'eci!ication or

rule, including t(ose s'eci!ied in t(e /or0s escri'tion.

Structure means a 'ermanent -uilding, structure or ot(er im'ro+ement made to or

erected on land, -ut e*cludes an% c(attels.

Supplier Default means an% -reac( o! t(is Agreement, or an% negligent act,

negligent omission, or wil!ul misconduct, -% Su''lier or its A!!iliates in connection


Supplier #esources means all 'remises, materials, 'lant, e:ui'ment, (ardware,

so!tware, telecommunications ser+ices, contractors, 'ersonnel, 'rocesses,

'rocedures, documentation and ot(er resources t(at Su''lier and9or its Contractors

utilise, or need to utilise, in order to carr% out t(e /or0s and su''l% and im'lement

t(e Solution 'ursuant to t(is Agreement, irres'ecti+e o! w(o owns or controls t(ose

resources, -ut e*cluding an% Ot(er S%stem or an%t(ing owned -% MNZ or AMSA.

Tec!nical Documentation means user guides, tec(nical manuals, designs, data

con+ersion s'eci!ications, !unctional s'eci!ications, inter!ace s'eci!ications, coding

standards, re+ision (istories, 'rogrammer?s notes and ot(er documentation.

Term means t(e term o! t(is Agreement as contem'lated in clause ".1.

Time E0tension means an e*tension o! t(e ue ates !or one or more Milestones,

assessed in accordance wit( clause 5.

Timeta*le means t(e timeta-le in [Sc(edule " @&imeta-le].

1irusmeans an% +irus, -om-, &ro8an (orse, tra' door, or ot(er malicious so!tware,

scri'ting or com'uter 'rogramming code, designed to im'air, den% or ot(erwise

ad+ersel% a!!ect an% electronic ser+ice or com'uter s%stem, or allow unaut(orised

access to an% electronic ser+ice or com'uter s%stem.

)or+s means t(e wor0s descri-ed in t(e /or0s escri'tion, including t(e

'rocurement, installation, con!iguration, testing and commissioning o! t(e Solution.

)or+s Description means [Sc(edule 1 @/or0s escri'tion].

1." C/*(*)/

n t(e construction o! t(is agreement, unless t(e conte*t re:uires ot(erwiseB

lauses and Sc!edulesB a re!erence to a clause or a sc(edule is to a clause or

sc(edule o! t(is agreement, and a re!erence in a sc(edule to a clause is a re!erence

to a clause in t(at sc(edule


15/54

1777"61""91617#6. 17

urrencyB a re!erence to an% monetar% amount is to New Zealand currenc%

Defined TermsB words or '(rases a''earing in t(is agreement wit( ca'italised initial

letters are de!ined terms and (a+e t(e meanings gi+en to t(em in t(is agreement

DocumentsB a re!erence to an% document, including t(is agreement, includes a

re!erence to t(at document as amended or re'laced !rom time to time

'eadingsB (eadings a''ear as a matter o! con+enience and do not a!!ect t(e

construction o! t(is agreement

"nclusionsB a re!erence to Dincludes is a re!erence to Dincludes wit(out limitation,

and Dinclude, Dincluded and Dincluding (a+e corres'onding meanings

No ontra Proferentem onstructionB t(e rule o! construction 0nown as t(e contra

'ro!erentem rule does not a''l% to t(is agreement

PartiesB a re!erence to a 'art% to t(is agreement or an% ot(er document includes

t(at 'art%?s 'ersonal re'resentati+es9successors and 'ermitted assigns

PersonB a re!erence to a 'erson includes a cor'oration sole and also a -od% o!

'ersons, w(et(er cor'orate or unincor'orate

PriorityB t(e clauses o! t(is Agreement will 're+ail o+er t(e 'ro+isions o! t(e

Sc(edules, -ut onl% to t(e e*tent necessar% to resol+e con!lict -etween t(em, and

su-8ect to an% 'ro+isions in a Sc(edule w(ic( are e*'ressl% identi!ied as o+erriding

t(e -od% o! t(is Agreement

#elated TermsB w(ere a word or e*'ression is de!ined in t(is agreement, ot(er

'arts o! s'eec( and grammatical !orms o! t(at word or e*'ression (a+e

corres'onding meanings

Sc!edulesB t(e sc(edules !orm 'art o! t(is agreement

Singular2 Plural and -enderB t(e singular includes t(e 'lural and +ice +ersa, and

words im'orting one gender include t(e ot(er genders

Statutes and #egulationsB a re!erence to an enactment or an% regulations is a

re!erence to t(at enactment or t(ose regulations as amended, or to an% enactment

or regulations su-stituted !or t(at enactment or t(ose regulations

TimeB a re!erence to time is a re!erence to New Zealand a%lig(t Sa+ings &ime and

)ritingB a re!erence to Dwritten or Din writing includes all modes o! 'resenting or

re'roducing words, !igures and s%m-ols in a tangi-le and 'ermanentl% +isi-le !orm.


16/54

1777"61""91617#6. 11

1.$ P()()*

&o t(e e*tent necessar% to resol+e an% con!lict -etween t(e +arious 'arts o! t(is

agreement, t(e% will -e read in t(e !ollowing @descending order o! 'recedenceB

@a t(e -od% o! t(is agreement t(en

@- [Sc(edule 5 @Solution Re:uirements] t(en

@c [Sc(edule 1 @/or0s escri'tion] t(en

@d [Sc(edule " @&imeta-le] t(en

@e [Sc(edule $ @Site Access Re:uirements] t(en

@! [Sc(edule ) @Contract Price] t(en

@g [Sc(edule @C(ange Process] t(en

@( [Sc(edule 3 @>orm o! Per!ormance =ond] t(en

@i [Sc(edule 6 @So!tware 4icence &erms].


17/54

MEOSAR EN;NEERN;, PROCFREMEN& AN CONS&RFC&ON A;REEMEN&

1777"61""91617#6. 1"

" OVERVIEW

".1 T,(+

&(is Agreement will commence immediatel% u'on e*ecution, and unless terminatedearlier in accordance wit( clause 15, will continue until t(e end o! t(e e!ects

Correction Period, w(en it will e*'ire immediatel% and automaticall%.

"." A99)/*+,/*

MNZ a''oints Su''lier, and Su''lier agrees, to carr% out t(e /or0s and su''l% and

im'lement t(e Solution, su-8ect to and in accordance wit( t(e terms and conditions

o! t(is Agreement.

".$ S'., '/0 9(:',

Su''lier agrees to sell, and MNZ agrees to 'urc(ase, eac( com'onent o! t(e

Solution, su-8ect to and in accordance wit( t(e terms and conditions o! t(is

Agreement.

".) N ,;.)


18/54


1777"61""91617#6. 1$

) SUPPLIER RESPONSIBILITIES

).1 W(> '/0 S.*)/

&(is is a !i*ed 'rice, lum' sum, single 'oint o! res'onsi-ilit% contract. Su''lier willcarr% out t(e /or0s and su''l% and im'lement t(e Solution in accordance wit( t(e

/or0s escri'tion and &imeta-le, so as to satis!% all t(e Solution Re:uirements and

ac(ie+e eac( Milestone on or -e!ore its ue ate. &(is includes all ser+ices,

!unctions and res'onsi-ilities t(at are incidental to, or necessar% or customar% !or,

t(at 'ur'ose, e*ce't !or an%t(ing w(ic( t(is Agreement s'eci!icall% identi!ies as t(e

res'onsi-ilit% o! MNZ.

)." R,(,

Su''lier will 'ro+ide at its own cost all 'remises, 'ersonnel, contractors, materials,

'lant, e:ui'ment, la-our, s'are 'arts, telecommunications ser+ices, (ardware,

so!tware, 'rocesses, 'rocedures, documentation and ot(er resources @w(et(er o! a

'ermanent or tem'orar% nature needed to 'er!orm its o-ligations in accordance

wit( t(is Agreement, e*ce't !or an%t(ing w(ic( t(is Agreement s'eci!icall% re:uires

MNZ to 'ro+ide.

).$ S>).. '/0 '(,

Su''lier will 'er!orm its o-ligations and acti+ities under t(is Agreement wit( all due

s0ill, care, diligence and e!!icienc%, and in all res'ects to a standard t(at meets or

e*ceeds ;ood ndustr% Practice.

).) C?9,('*)/ '/0 (,+,0)'*)/

n t(e course o! its acti+ities under t(is Agreement, Su''lier will coo'erate wit(

MNZ and its Contractors as reasona-l% re:uired -% MNZ !rom time to time. Su''lierwill 'rom'tl% remed% an% dela%, !ailure or ot(er de!icienc% in t(e 'er!ormance o! its

o-ligations under t(is Agreement.

). ",'.*: '/0 S',*

Su''lier will ensure t(at all acti+ities carried out -% Su''lier or its A!!iliates under

t(is Agreement are underta0en in a manner t(at com'lies wit( t(e 2ealt( and

Sa!et% in Em'lo%ment Act 1##" @'SEA, all regulations made under t(e 2SEA, and

all a''lica-le codes o! 'ractice. Su''lier will com'l% wit( all instructions, 'olicies

and 'rocedures reasona-l% noti!ied -% MNZ !rom time to time !or t(e 'ur'ose o!

ensuring com'liance -% MNZ wit( its own o-ligations under t(e 2SEA in connection

wit( t(ose same acti+ities.

).3 L'-& C/,/* '/0 S*'/0'(0

@a n t(e course o! acti+ities under t(is Agreement, Su''lier will com'l%, and will

ensure t(at its A!!iliates com'l%, wit( all a''lica-le 4aws, Consents and Standards.

@- Su''lier will ensure t(at at 2ando+er t(e /or0s and Solution com'l% wit( all

a''lica-le 4aws, Consents and Standards 're+ailing at t(at time.

@c Su''lier will o-tain all Consents necessar% to 'er!orm its o-ligations in accordance

wit( t(is Agreement, e*ce't !or an% Consents w(ic( t(is Agreement s'eci!icall%

re:uires MNZ to 'ro+ide. E*ce't w(ere t(is Agreement e*'ressl% states ot(erwise,

Su''lier is not entitled to rel% on an% Consents (eld -% MNZ.


19/54


1777"61""91617#6. 1)

).5 S,()*

>rom t(e time w(en access to t(e Site is a+aila-le in accordance wit( [Sc(edule $

@Site], until 2ando+er, Su''lier will -e res'onsi-le !or securit% o! t(e Site, including

0ee'ing unaut(orised 'ersons o!! t(e Site.

).6 P,(//,.

@a Su''lier will ensure t(at eac( o! its Personnel and Contractors is suita-l% :uali!ied

and a''ro'riatel% s0illed to carr% out t(eir role in t(e 'er!ormance o! Su''lier?s

o-ligations to t(e le+el re:uired -% t(is Agreement.

@- On re:uest -% MNZ !rom time to time, Su''lier will 'ro+ide to MNZ a list o! all

Contractors and Personnel w(o are t(en engaged in 'er!orming, or assisting or

ad+ising Su''lier in relation to t(e 'er!ormance o!, t(e /or0s.

@c Su''lier will ensure t(at all its Contractors and Personnel carr% out t(eir wor0 wit(

due care, s0ill and diligence and in accordance wit( Su''lier?s o-ligations under t(is

Agreement. &(is includes ensuring t(at t(e 'er!ormance o! t(eir wor0 does create

an% unnecessar% (aHards, t(at an% (aHards created are managed and mitigated as

!ar as reasona-l% 'ossi-le, and t(at all reasona-le ste's are ta0en to a+oid an%

nuisance, damage to 'ro'ert% or incon+enience to t(e 'u-lic.

@d Su''lier will ensure t(at w(ile onsite at an% 'remises under t(e control o! MNZ or

its Contractors, Su''lier?s Personnel com'l% wit( an% reasona-le sa!et% and securit%

re:uirements noti!ied to t(em, and an% reasona-le directions gi+en -% MNZ and its

Contractors.

@e &o t(e e*tent t(at t(e /or0s in+ol+e an% interaction wit( mem-ers o! t(e 'u-lic,Su''lier will ensure t(at its Personnel e*tend e+er% reasona-le courtes% and co

o'eration to t(e 'u-lic, and Su''lier will 'rom'tl% ad+ise MNZ o! an% ad+erse or

negati+e incidents in+ol+ing mem-ers o! t(e 'u-lic.

).# O*:,( S*,+

&o t(e e*tent t(at t(e /or0s in+ol+e or re:uire an% integration o! t(e Solution wit(

an% Ot(er S%stems, Su''lier willB

@a o-tain and !ollow MNZ?s reasona-le instructions -e!ore connecting an%t(ing to

an% Ot(er S%stem

@- maintain and im'lement sa!eguards and 'rocedures, to a le+el consistent wit(

;ood ndustr% Practice, to 'rotect against t(e introduction o! Iiruses into t(e

Solution or an% Ot(er S%stem, and to 'rotect against unaut(orised access to

t(e Solution or an% Ot(er S%stem

@c ta0e all reasona-le ste's to ensure t(at t(e /or0s and Solution will not

damage or im'air t(e 'er!ormance o! an% Ot(er S%stem, and +ice +ersa and

@d ensure t(at t(e Solution is designed and -uilt so as to -e com'ati-le wit( t(e

Ot(er S%stem.


20/54


1777"61""91617#6. 1

).17 N )/()/@,+,/*

n t(e course o! acti+ities under t(is Agreement, Su''lier will not, and will ensure

t(at its A!!iliates do not, in!ringe t(e ntellectual Pro'ert% Rig(ts o! an% t(ird 'art%.

).11 D, 0).)@,/,

@a Su''lier warrants t(at t(e 'er!ormance o! its o-ligations under t(is Agreement will

not con!lict wit( an% o-ligation or dut% owed -% Su''lier to an% t(ird 'art%, or

in!ringe t(e rig(ts o! an% t(ird 'art%.

@- Su''lier is res'onsi-le !or resol+ing an% error, omission, con!lict, discre'anc% or lac0

o! clarit% in an%, or -etween an%, documents !orming 'art o! or related to t(is

Agreement, and none o! t(e !oregoing will entitle Su''lier to an% e*tension o! ue

ates, or an% ad8ustment to t(e Contract Price or ot(er 'a%ment or reim-ursement.

@c &(e in!ormation in t(e A&M is 'ro+ided solel% !or t(e con+enience o! Su''lier, and

MNZ assumes no res'onsi-ilit% !or t(e su!!icienc% or accurac% o! t(at in!ormation.

@d Su''lier warrants t(at in entering into t(is Agreement and9or an% su-se:uent

C(ange Memoranda or contract +ariations, it (as relied @and will rel% solel% on its

own e*'ertise and 8udgment, and it (as 'er!ormed @and will 'er!orm its own due

diligence in res'ect o! t(e Site, /or0s, Solution, Ot(er S%stems, and all ot(er

matters w(ic( ma% a!!ect t(e cost or di!!icult% o!, or time or resources re:uired !or,

'er!ormance o! its o-ligations under t(is Agreement.

@e E*ce't to t(e e*tent t(is Agreement 'ro+ides ot(erwise, Su''lier will not -e e*cused

!rom, or relie+ed o! an% lia-ilit% !or, an% dela% or !ailure in com'l%ing wit( its

o-ligations, warranties or underta0ings in t(is Agreement, -% +irtue o! an% re+iew,a''ro+al, consent, acce'tance, con!irmation, ins'ection or testing @or an% lac0

t(ereo! -% MNZ or its Contractors or Personnel.

RISK AND TITLE

.1 R)>

Su''lier will ta0e !ull res'onsi-ilit% !or t(e care o! t(e /or0s until 2ando+er.

/it(out limiting t(e 'ro+isions o! t(e SAM Agreement, ris0 in eac( com'onent o! t(e

Permanent /or0s and Solution will 'ass to MNZ on t(e date o! 2ando+er. &o a+oid

dou-t, t(is does not a!!ect Su''lier?s lia-ilit% !or damage resulting !rom an% Su''lier

e!ault, w(et(er it occurs -e!ore or a!ter 2ando+er.

." T)*.,

@a &itle in eac( com'onent o! t(e Permanent /or0s and Solution will 'ass to MNZ on

t(e earliest o! t(e !ollowing e+ents, namel%B 'a%ment o! an% 'ortion o! t(e Contract

Price w(ic( [Sc(edule $ @Contract Price] identi!ies as attri-uta-le to t(at

com'onent deli+er% o! t(at com'onent to t(e Site or 2ando+er.

@- Su''lier warrants t(at title in eac( com'onent o! t(e Permanent /or0s and Solution

will 'ass to MNZ at t(e times s'eci!ied in t(is Agreement, wit(out reser+ation and

!ree o! all Encum-rances. >rom t(at time, Su''lier will ensure t(at eac( com'onent

o! t(e Solution is (eld se'aratel% !rom Su''lier?s own 'ro'ert%, and is clearl%

mar0ed as t(e 'ro'ert% o! MNZ.


21/54


1777"61""91617#6. 13

3 PROJECT MANAGEMENT

3.1 P(,* R,9(,,/*'*)


22/54


1777"61""91617#6. 15

5 PROJECT RISKS AND ADJUSTMENTS

5.1 P(,* R)>

/(ene+er Su''lier -ecomes aware o! a Pro8ect Ris0, Su''lier will 'rom'tl%, and inan% e+ent wit(in =usiness a%s, gi+e an Earl% /arning Notice to MNZ. &(e notice

must 'ro+ide reasona-le details o! t(e nature and origins o! t(e Pro8ect Ris0 and its

li0el% im'act on t(e /or0s @including a -rea0down o! t(e im'act on 're+ious

'lanning and assum'tions !or t(e /or0s, and t(e ste's a+aila-le to eac( Part% to

o+ercome or mitigate t(e Pro8ect Ris0. ! t(e Pro8ect Ris0 is an Ad8ustment E+ent,

t(e notice must include a clear statement to t(at e!!ect.

5." A0*+,/*

/(ere Su''lier gi+es an Earl% /arning Notice in res'ect o! an Ad8ustment E+ent,

Su''lier will -e entitled to a &ime E*tension, a Price ncrease, a Sco'e Reduction, or

a com-ination o! t(e !oregoing @in eac( case, anAdjustment, su-8ect to and in

accordance wit( t(e ot(er 'ro+isions o! t(is clause 5. &(is is Su''lier?s sole remed%

!or t(e e!!ects o! an Ad8ustment E+ent in terms o! t(e cost, resource, time and e!!ort

re:uired in order !or Su''lier to com'lete t(e /or0s and im'lement t(e Solution in

accordance wit( t(is Agreement.

5.$ A,+,/*

&(e !orm and :uantum o! an% Ad8ustment will -e determined -% MNZ, acting

reasona-l%, o-8ecti+el% and in consultation wit( Su''lier, on t(e !ollowing -asisB

@a Su''lier will -e entitled to Ad8ustments to t(e e*tent reasona-l% necessar% to

allow !or or o!!set t(e li0el% direct im'act o! t(e Ad8ustment E+ent on t(e

time, cost and resources re:uired !or Su''lier to com'lete t(e /or0s andim'lement t(e Solution in accordance wit( t(is Agreement, acting e!!icientl%,

'rudentl% and in accordance wit( ;ood ndustr% Practice. &(is will -e

assessed -ased on a reasona-le estimate, 'lus a reasona-le contingenc%.

@- MNZ will ne+er -e o-liged to allow a Sco'e Reduction @as o''osed to a &ime

E*tension and9or Price ncrease, -ut ma% do so @acting reasona-l% w(ere it

wis(es to reduce t(e &ime E*tension and9or Price ncrease re:uired.

@c Price ncreases will -e calculated in accordance wit( t(e met(odolog%

s'eci!ied !or t(at 'ur'ose in [Sc(edule " @Contract Price].

@d Ad8ustments ma% -e assessed su-8ect to one or more assum'tions or

de'endencies, t(e nonsatis!action o! w(ic( will -e deemed to constitute

!urt(er Ad8ustment E+ents. A contingenc% allowed !or in t(is wa% need not -e

!actored into an% Ad8ustments !or t(e initial Ad8ustment E+ent.

@e Ad8ustments will -e reduced to t(e e*tent t(at an Ad8ustment E+ent or its

conse:uences are contri-uted to or e*acer-ated -% an% Su''lier e!ault.

@! Su''lier will not -e entitled to a &ime E*tension in relation to an% ue ates

w(ic( (a+e alread% 'assed w(en Su''lier !irst gi+es an Earl% /arning Notice

in relation to t(e rele+ant Ad8ustment E+ent.


23/54


1777"61""91617#6. 16

@g Su''lier?s onl% entitlement to an Ad8ustment in res'ect o! an% e+ent or

circumstance o! >orce Ma8eure will -e a &ime E*tension, e*ce't to t(e e*tent

t(at t(e same e+ent or circumstance also :uali!ies as an Ad8ustment E+ent on

grounds ot(er t(an >orce Ma8eure.

@( ! Su''lier !ails to gi+e an Earl% /arning Notice wit(in "7 =usiness a%s o!

-ecoming aware o! a Pro8ect Ris0 t(at is an Ad8ustment E+ent, Su''lier will

not -e entitled to an Ad8ustment !or t(at Ad8ustment E+ent.

5.) R,


24/54


1777"61""91617#6. 1#

@e ! t(e Ad8ustment Notice was not Com'liant, t(en t(e Ar-itrator will determine

w(at modi!ications would (a+e -een necessar% to ac(ie+e Com'liance, and

Su''lier will -e entitled to Ad8ustments modi!ied accordingl%. n t(is case,

MNZ will -ear t(e cost o! t(e Ar-itrator?s !ees and e*'enses, and willreim-urse Su''lier !or t(e reasona-le legal !ees, internal costs and outo!

'oc0et e*'enses incurred -% Su''lier in 're'aring !or and attending t(e

ar-itration.

@! Once t(e Ad8ustments (a+e -een determined in accordance wit( t(is

clause 5.3, t(e /or0s escri'tion, Solution Re:uirements, &imeta-le and

Contract Price will -e deemed to (a+e -een ad8usted accordingl%.

5.5 E(* * +)*)@'*,

/(ere+er Su''lier antici'ates or -ecomes aware o! a Pro8ect Ris0, or ot(erwise !ails

to meet a Milestone, Su''lier will use and continue to use all reasona-le endea+ours

to com'lete t(e /or0s in accordance wit( t(is Agreement and minimise an% !urt(er

dela%s and costs, e*ce't w(ere e*'ressl% instructed ot(erwise -% MNZ. &(is a''lies

w(et(er or not Su''lier is entitled to an Ad8ustment, and does not in an% wa%

detract !rom Su''lier?s ot(er o-ligations under t(is Agreement.

6 SITE COMPLETION

6.1 I/9,*)/

/(en Su''lier considers t(at it (as com'leted t(e /or0s at t(e Site, Su''lier will

'rom'tl% gi+e notice to MNZ. /it(in =usiness a%s o! t(at notice, t(e 'arties will

carr% out a 8oint ins'ection o! t(e /or0s at t(e Site @Site "nspection.

6." S)*, C+9.,*)/

/it(in =usiness a%s o! com'leting t(e Site ns'ectionB

@a i! Su''lier (as com'leted t(e /or0s at t(e Site, MNZ will issue a certi!icate to

t(at e!!ect

@- i! Su''lier (as not com'leted t(e /or0s at t(e Site, MNZ will gi+e notice to

Su''lier to t(at e!!ect, identi!%ing t(e incom'lete or de!ecti+e items

're+enting com'letion, in w(ic( case Su''lier will 'rom'tl% remed% t(ose

items and gi+e a !urt(er notice to MNZ under clause 6.1 or

@c i! Su''lier (as com'leted t(e /or0s at t(e Site sa+e !or minor incom'lete or

de!ecti+e items w(ic( in t(e reasona-le o'inion o! MNZ will not inter!ere wit(

MNZ?s ta0ing o+er and use o! t(e Permanent /or0s and9or t(e o'eration o!

t(e Solution, MNZ will issue a certi!icate to t(at e!!ect, accom'anied -% a list

o! t(e outstanding items @Site Punc!list, and Su''lier will remed% eac( item

on t(e Site Punc(list as soon as reasona-l% 'ractica-le t(erea!ter.

6.$ A>/-.,0@,+,/*

Site Com'letion does not amount to acce'tance -% MNZ t(at Su''lier (as met its

o-ligations under t(is Agreement, and Su''lier will remain lia-le !or t(e !ull 'eriod

'ermitted -% law !or an% un!ul!illed o-ligations.


25/54


1777"61""91617#6. "7

# ACCEPTANCE TESTING

#.1 P(,9'('*)/ *,* 9.'/

>or eac( Stage, Su''lier will 're'are a dra!t 'lan descri-ing t(e 'ro'osed useracce'tance testing to -e carried out on t(e rele+ant com'onents o! t(e Solution

@Draft Test Plan, and will su-mit t(at 'lan to MNZ wit(in t(e time!rame s'eci!ied !or

t(at 'ur'ose in t(e &imeta-le, or i! none is s'eci!ied, t(en wit(in a reasona-le time

o! commencement o! t(e /or0s. Su''lier will ensure t(at t(e tests and testing

'rocedures descri-ed in eac( ra!t &est Plan areB

@a o-8ecti+e, +eri!ia-le and consistent wit( ;ood ndustr% Practice !or 'ro8ects o!

com'ara-le com'le*it%, scale and ris0

@- com'liant wit( an% testing or acce'tance re:uirements set out in t(e /or0s

escri'tion

@c reasona-l% suita-le !or t(e 'ur'ose o! testing w(et(er t(e Stage com'lies

wit( all a''lica-le re:uirements o! t(is Agreement, including all a''lica-le

re:uirements set out in t(e /or0s escri'tion and

@d wit(out limiting t(e !oregoing, in t(e case o! t(e DCommissioning Stage

re!erred to in t(e /or0s escri'tion, consistent wit( t(e commissioning

'rocesses and standards in t(e Cos'asSarsat ocumentation.

#." R,


26/54


1777"61""91617#6. "1

accordance wit( t(e A''ro+ed &est Plan, under t(e o-ser+ation o! one or more

nominated MNZ re'resentati+es.

@c Su''lier will com'lete t(e Acce'tance &ests !or eac( Stage wit(in t(e 'eriodsallowed -% t(e A''ro+ed &est Plan. Su''lier will 'rom'tl% 'ro+ide MNZ wit( co'ies

o! all test results and test re'orts, and will su''l% all assistance and e*'lanations

reasona-l% re:uested -% MNZ !or t(e 'ur'ose o! understanding and +alidating t(ose

results and re'orts @Testing Artefacts.

#.) T,* (,.* '/0 /*))'*)/

/it(in 17 =usiness a%s o! (a+ing recei+ed all t(e &esting Arte!acts !or a StageB

@a i! t(e Stage (as 'assed all its Acce'tance &ests, MNZ will noti!% Su''lier

accordingl%, and t(e Stage will -e ta0en to -e Acce'ted

@- i! t(e Stage (as not 'assed all its Acce'tance &ests, MNZ will gi+e notice to

Su''lier outlining t(e !ailures, and Su''lier will correct eac( !ailure and

resu-mit t(e entire Stage to MNZ under clause #.$as soon as reasona-l%

'ractica-le t(erea!ter

@c i! t(e Stage (as 'assed all its Acce'tance &ests ot(er t(an s'eci!ied !aults

w(ic( MNZ @in its a-solute discretion considers su!!icientl% minor to allow

Su''lier to remed% a!ter Acce'tance, MNZ will gi+e notice to Su''lier to t(at

e!!ect, accom'anied -% a list o! t(e outstanding items @Stage Punc!list, in

w(ic( case t(e Stage will -e ta0en to -e Acce'ted, Su''lier will 'rom'tl%

remed% eac( item on t(e Stage Punc(list to MNZ?s reasona-le satis!action,

and until t(en MNZ ma% wit((old a corres'onding 'ortion o! t(e ContractPrice as determined -% MNZ in its reasona-le discretion.

#. M).,*/,

/(ere a Milestone in+ol+es t(e 'er!ormance o! Acce'tance &ests, t(e Milestone will

not -e ta0en to (a+e -een com'leted unless and until t(e rele+ant Stage (as -een

acce'ted -% MNZ in accordance wit( t(is clause #.

#.3 A>/-.,0@,+,/*

MNZ will not in an% circumstances -e ta0en to (a+e acce'ted an% Stage e*ce't in

accordance wit( t(is clause #. Acce'tance does not amount to acce'tance -% MNZ

t(at Su''lier (as met its o-ligations under t(is Agreement, and Su''lier will remain

lia-le !or t(e !ull 'eriod 'ermitted -% law !or an% un!ul!illed o-ligations.

17 "ANDOVER

17.1 P(,(,))*, ( "'/0


27/54


1777"61""91617#6. ""

@c t(e Permanent /or0s and Solution can -e used !or t(eir intended 'ur'ose and

o'erated 'ro'erl% and con+enientl% -% or !or MNZ, in accordance wit( all

4aws, Consents and Standards, and wit(out !urt(er reliance on Su''lier ot(er

t(an as contem'lated in t(e SAM Agreement

@d Su''lier (as to t(e e*tent 'ermitted -% law trans!erred all a''lica-le

Consents to MNZ in a !orm w(ic( ena-les MNZ to o-tain t(e -ene!it con!erred

-% t(em, including =uilding Act "77) code com'liance certi!icates, and all

ot(er certi!icates re:uired !or o'eration or maintenance o! t(e Permanent

/or0s and Solution

@e Su''lier (as 'aid all dela% and 'er!ormance related li:uidated damages to

MNZ in accordance wit( clause 17.3

@! Su''lier (as deli+ered to MNZ all documents and in!ormation re:uired under

t(is Agreement, and all documents and in!ormation re:uired !or MNZ to

launc(, o'erate and maintain t(e Permanent /or0s and Solution @recognising

Su''lier?s ongoing role under t(e SAM Agreement, includingB

@i all documents re:uired -% t(e /or0s escri'tion

@ii dra!t as-uilt drawings

@iii Plant s'eci!ications and descri'tions

@i+ training manuals, and dra!t o'erating and maintenance manuals

@+ so!tware licences, 'asswords, codes and ot(er items re:uired under

section [ ] o! t(e /or0s escri'tion and

@+i documents re:uired to satis!% all regulator% a''ro+als

@g Su''lier (as demonstrated to MNZ?s reasona-le satis!action t(at it is read% to

commence 'ro+ision o! t(e Ser+ices under t(e SAM Agreement

@( Su''lier (as signed an Escrow Agreement in accordance wit( t(e SAM

Agreement and de'osited t(e Escrow Material wit( t(e Escrow Agent

@i Su''lier (as 'ro+ided MNZ will all in!ormation re:uired !or MNZ?s !inal !i*ed

asset register in res'ect o! t(e Permanent /or0s and Solution

@8 all Su''lier?s 'ersonnel, su''lies, e:ui'ment, waste materials, ru--is( and

tem'orar% !acilities (a+e -een remo+ed !rom t(e Site, e*ce't !or t(ose

reasona-l% re:uired !or com'letion o! items on t(e 2ando+er Punc(list

@0 Su''lier (as assigned to MNZ all t(e warranties and guarantees re!erred to in

section [ ] o! t(e /or0s escri'tion and

@l Su''lier (as met an% additional 'rere:uisites !or 2ando+er set out in t(e

/or0s escri'tion.


28/54


1777"61""91617#6. "$

17." R,,* ( "'/0rom t(at time @'andover, Su''lier?s access to and continued

'resence at t(e Site under t(is Agreement will -e at MNZ?s con+enience and !or t(e

'ur'ose o! remed%ing items on t(e 2ando+er Punc(list and !ul!illing an% ot(er

outstanding Su''lier o-ligations under t(is Agreement.

17. A>/-.,0@,+,/*

2ando+er ma% onl% occur 'ursuant to t(is clause 17, and MNZ will not -e deemed to

(a+e ta0en o+er t(e Permanent /or0s or Solution unless MNZ (as ta0en t(em o+er

in t(eir entiret% in accordance wit( t(is clause 17, or (as !ailed to issue a 2ando+er

Certi!icate w(en it was re:uired to do so under t(is clause 17. &(e issuing o! a

2ando+er Certi!icate does not amount to acce'tance -% MNZ t(at Su''lier (as met

its o-ligations under t(is Agreement, and Su''lier will remain lia-le !or t(e !ull

'eriod 'ermitted -% law !or an% un!ul!illed o-ligations.


29/54


1777"61""91617#6. ")

17.3 L))0'*,0 0'+'@,

@a ! Su''lier !ails to ac(ie+e 2ando+er -% t(e a''lica-le ue ate, t(en !or eac(

calendar da% a!ter t(at ue ate u' to -ut e*cluding t(e da% on w(ic( 2ando+er

actuall% ac(ie+ed, Su''lier will 'a% MNZ li:uidated damages at t(e rate set out in[Sc(edule $ @Contract Price].

@- Su''lier will 'a% t(ese li:uidated damaged regardless o! w(et(er Su''lier considers

itsel! entitled to one or more &ime E*tensions in res'ect o! t(e ue ate !or

2ando+er, -ut i! a &ime E*tension is su-se:uentl% agreed or determined in

accordance wit( clause 5, MNZ will 'rom'tl% re!und an% 'ortion o! t(ose li:uidated

damages t(at would not (a+e -een 'a%a-le (ad t(e &ime E*tension -een agreed or

determined -e!ore t(e ue ate.

@c &(e Su''lier ac0nowledges t(at t(ese li:uidated damages re'resent a genuine 're

estimate o! t(e minimum loss t(at MNZ e*'ects to incur in connection wit( dela% in

2ando+er, and t(at suc( li:uidated damages are !air and reasona-le in t(e

circumstances.

11 DEFECTS

11.1 D,,* C((,*)/ P,()0

&(e e!ects Correction Period will commence on 2ando+er, e*ce't t(atB

@a t(e e!ects Correction Period !or items on t(e 2ando+er Punc(list will

recommence on t(e com'letion o! t(ose items

@- t(e e!ects Correction Period !or items re'aired or re'laced under t(ewarrant% in clause 11."will recommence on com'letion o! t(e re'air or

re'lacement

@c w(ere 'art o! t(e Permanent /or0s or Solution are not a+aila-le to -e used

law!ull% and con+enientl% !or t(eir intended 'ur'ose until t(e com'letion o!

wor0 re!erred to in su-clause @a or @- a-o+e, t(e e!ects Correction Period

!or t(at 'art o! t(e Permanent /or0s or Solution will -e e*tended -% a 'eriod

e:ual to t(e duration o! t(at una+aila-ilit%.

11." W'(('/*

Su''lier warrants t(at !rom 2ando+er until t(e e*'ir% o! t(e e!ects Correction

Period, t(e Permanent /or0s and Solution will -e !ree !rom de!ects in title, material,

manu!acturing and wor0mans(i', and will com'l% in all material res'ects wit( t(e

a''lica-le 'ro+isions o! clause ) and t(e descri'tions and re:uirements set out in

t(e /or0s escri'tion and9or Solution Re:uirements. ! wit(in t(e e!ects

Correction Period MNZ noti!ies Su''lier o! an instance o! noncom'liance wit( t(is

warrant%, Su''lier will 'rom'tl% alter, re'air or re'lace @as reasona-l% determined

-% MNZ t(e de!ecti+e 'ortion o! Permanent /or0s and9or Solution.

11.$ E;.)/

&(e warrant% in clause 11."does not co+er re'airs or alterations made -% MNZ or a

t(ird 'art% wit(out Su''lier?s consent, or damage, deterioration or !ailure resulting

a!ter 2ando+er !rom normal wear and tear, and9or a-normal en+ironmental


30/54


1777"61""91617#6. "

conditions o+er and a-o+e w(at would ordinaril% -e e*'ected at t(e Site, e*ce't to

t(e e*tent t(ose conditions are caused or contri-uted to -% Su''lier e!ault.

11.) R,+,0! Su''lier !ails to recti!% a de!ect and directl% resulting damage as soon as

reasona-l% 'ractica-le a!ter noti!ication under clause 11.", MNZ ma% gi+e notice to

Su''lier re:uiring recti!ication -% a date reasona-l% determined -% MNZ and

s'eci!ied in t(at notice. ! Su''lier !ails to recti!% t(e de!ect and9or damage -% t(at

date, t(e !ailure will constitute a material -reac( o! t(is Agreement, andB

@a MNZ ma% recti!% t(e de!ect or damage itsel! or t(roug( its ot(er Contractors,

and Su''lier will reim-urse MNZ on demand !or t(e costs reasona-l% incurred

-% MNZ in doing so or

@- MNZ ma% determine a reasona-le reduction in t(e Contract Price, deduct t(at

amount !rom an% a+aila-le 'ortion o! t(e Contract Price %et to -e 'aid to

Su''lier, and re:uire Su''lier to re!und on demand an% outstanding 'ortion o!

t(at reduction or

@c i! t(e de!ect and directl% resulting damage su-stantiall% reduces t(e -ene!it,

or su-stantiall% increases t(e -urden, o! t(is Agreement !or MNZ, t(en MNZ

ma% terminate t(is Agreement in accordance wit( clause 15.$.

1" PRICE AND PA#MENT

1".1 C/*('* P(),

MNZ will 'a% t(e Contract Price to Su''lier in accordance wit( t(is clause 1"and t(ea''lica-le 'ro+isions o! [Sc(edule ) @Contract Price]. E*ce't as e*'ressl% 'ro+ided

in t(is Agreement, MNZ will not -e lia-le to Su''lier !or an% additional amount !or

t(e /or0s and9or t(e 'er!ormance o! an% ot(er o-ligations -% Su''lier under t(is

Agreement. &(e Contract Price will -e ad8usted onl% as e*'ressl% 'ro+ided in t(is

Agreement.

1"." T';,

@a Fnless e*'ressl% stated ot(erwise, all amounts set out in or :uoted under t(is

Agreement are stated -e!ore t(e addition o! ;S&. ! an% ;S& is c(argea-le on a

su''l% made under t(is Agreement, t(en Su''lier ma% in+oice t(at ;S& at t(e same

time and in t(e same manner as t(e Contract Price !or t(at su''l%, and MNZ will 'a%

t(at ;S& at t(e same time and in t(e same manner as t(at Contract Price.

@- &o t(e e*tent t(at amounts 'a%a-le to Su''lier under t(is Agreement are e*'ressed

to -e calculated -% re!erence to an% e*'ense, cost or ot(er outgoing @#elevant

E0pense, t(en !or t(e 'ur'ose o! calculating t(ose amounts, t(e Rele+ant E*'ense

will -e reduced -% an amount e:ual to an% in'ut ta* credit a+aila-le to Su''lier in

res'ect o! t(e Rele+ant E*'ense. n t(is conte*t, Din'ut ta* credit means a credit

!or in'ut ta* or ot(er deduction !rom out'ut ta* under t(e ;S& Act.

@c Aside !rom ;S&, all ot(er ta*es, duties, im'osts and le+ies assessed or le+ied on

Su''lier in relation to t(is Agreement @including 'enalties t(ereon are deemed to

-e included in t(e Contract Price.


31/54


1777"61""91617#6. "3

@d MNZ is entitled to 'a% Su''lier net o! an% wit((olding or deduction !or, or on

account o!, an% 'resent or !uture ta* t(at MNZ is o-liged to wit((old or deduct !rom

amounts 'a%a-le to Su''lier under t(is Agreement. Nonet(eless, !or t(e 'ur'oses

o! t(is Agreement, MNZ will -e regarded as (a+ing 'aid Su''lier t(e gross amount'rior to an% suc( deduction or wit((olding.

1".$ I/or in+oices recei+ed -% MNZ on a =usiness a% no

later t(an t(e t(da% o! a calendar mont(, t(e due date is t(e "7t(o! t(e same

mont( @or t(e !irst =usiness a% t(erea!ter. >or all ot(er in+oices, t(e due date is

t(e "7t(o! t(e !ollowing calendar mont( @or t(e !irst =usiness a% t(erea!ter.

1".3 E,* 9'+,/*

Pa%ment o! an in+oice will -e ta0en onl% as 'a%ment on account and is not e+idence

or an admission t(at an% 'art o! t(e /or0s or Solution (as -een su''lied in

accordance wit( t(is Agreement or ot(erwise acce'ted -% MNZ, nor an admission o!

lia-ilit% or concession to an% claim in res'ect o! t(e in+oice, its su-8ect matter or an%

as'ect o! t(is Agreement or t(e Parties? relations(i' under it.


32/54


1777"61""91617#6. "5

1".5 L'*, 9'+,/*

/(ere MNZ !ails to 'a% an% amounts due and 'a%a-le under t(is Agreement -% t(e

a''lica-le due date !or 'a%ment, MNZ will 'a% Su''lier interest on t(e o+erdue

amount on a dail% -asis at t(e nterest Rate, !rom and including t(e a''lica-le duedate, u' to -ut e*cluding t(e date o! 'a%ment.

1".6 P'+,/* 0)9*,

! MNZ dis'utes an% amount in+oiced under t(is Agreement, t(en so long as MNZ

noti!ies Su''lier -e!ore t(e a''lica-le due date !or 'a%ment, gi+ing reasona-le

details o! t(e dis'uted amount and t(e reasons !or t(e dis'ute, MNZ ma% wit((old

t(e dis'uted amount, and will 'a% an% undis'uted amounts -% t(e a''lica-le due

date. /(ere it is determined in accordance wit( t(e is'ute Resolution Process t(at

some or all o! t(at amount wit((eld -% MNZ was in !act 'a%a-le on t(e a''lica-le

due date, MNZ will 'a% t(at amount to Su''lier toget(er wit( interest calculated in

accordance wit( clause 1".5.

1".# O,,9)/@

Su''lier will 0ee' !ull, accurate and u'todate records, -oo0s o! account and

documentation in relation to all material as'ects o! its acti+ities under t(is

Agreement, including t(e /or0s, t(e Solution, t(e Su''lier Resources and t(e

Contract Price, to a le+el o! detail, com'leteness and accurac% consistent wit( ;ood

ndustr% Practice. Su''lier will retain t(e same !or not less t(an 5 %ears a!ter t(e

end o! t(e &erm.

1$." P=.) R,(0 A*

Su''lier ac0nowledges t(at MNZ is su-8ect to t(e Pu-lic Records Act "77 and an%

mandator% standards issued under t(at Act @collecti+el%, t(e P#A. &o t(e e*tent

t(at an% records w(ic( Su''lier creates and9or (olds in relation to t(is Agreement

are D'u-lic records under t(e PRA, Su''lier will ensure t(at t(ose records are

treated in a manner w(ic( com'lies wit( t(e PRA.

1$.$ O))'. I/(+'*)/ A*

Su''lier ac0nowledges t(at MNZ is su-8ect to t(e O!!icial n!ormation Act 1#6"

@%"A. ! during t(e &erm or at an% time t(erea!ter Su''lier or its Contractors

recei+e an% re:uest !or Do!!icial in!ormation @as de!ined in t(e OA in connection


33/54


1777"61""91617#6. "6

wit( t(is Agreement or MNZ, Su''lier s(all immediatel% re!er t(e re:uest to MNZ.

Notwit(standing an%t(ing else in t(is Agreement, w(ere Su''lier (olds in!ormation

t(at MNZ reasona-l% considers must -e disclosed 'ursuant to a re:uest under t(e

OA, t(en at MNZ?s re:uest Su''lier will 'rom'tl% 'ro+ide co'ies o! t(at in!ormationto MNZ. MNZ will 'a% Su''lier its reasona-le costs o! 'ro+iding t(at in!ormation,

-ut onl% to t(e e*tent t(at MNZ is a-le to reco+er t(ose costs under t(e OA.

1$.) A, * *:,( )/(+'*)/

@a /it(out limiting an% o! Su''lier?s ot(er o-ligations under t(is Agreement, -ut

su-8ect to clauses 1$.)@-and 1$.)@c, Su''lier will 'ro+ide MNZ or its dul%

aut(orised agents @as t(e case ma% -e wit( an% documentation, in!ormation and

e*'lanations re:uested -% MNZ on reasona-le notice, regarding t(e Site, t(e /or0s,

t(e Solution, and9or an% in+oice issued under t(is Agreement.

@- Clause 1$.)@awill not o-lige Su''lier to disclose an% in!ormation t(at is con!idential

to Su''lier?s ot(er customers or su''liers, alt(oug( Su''lier will use reasona-le

endea+ours to minimise an% con!identialit% restrictions assumed in res'ect o!

in!ormation t(at ma% -e re:uested under clause 1$.)@a. /(ere suc( restrictions do

e*ist, Su''lier will use reasona-le endea+ours to o-tain 'ermission !rom t(e

rele+ant t(ird 'art% to disclose suc( in!ormation to MNZ, w(ere s'eciall% re:uested

-% MNZ.

@c &o t(e e*tent t(at t(e amount o! wor0 re:uired o! Su''lier in order to collate and9or

'ro+ide suc( in!ormation will e*ceed (ours in an% calendar mont(, Su''lier will

'ro+ide MNZ wit( a :uote !or t(e reasona-le costs re:uired !or t(e e*cess wor0, and

will 'ro+ide t(e in!ormation onl% i! MNZ agrees to reim-urse Su''lier !or t(ose costs

in accordance wit( t(at :uote. &o a+oid dou-t, t(is clause 1$.)@cdoes not entitleSu''lier to c(arge !or 'ro+iding in!ormation w(ere Su''lier is alread% o-liged to do

so under anot(er 'ro+ision o! t(is Agreement.

1) AUDIT

1).1 R)@:* * '0)*

uring t(e &erm and9or t(e $ %ears a!terwards, MNZ ma% !rom time to time initiate

an audit o! Su''lier in accordance wit( t(is clause 1)@Audit, !or t(e 'ur'ose o!B

@a auditing t(e accurac% o! Su''lier?s in+oices under t(is Agreement

@- auditing t(e accurac% o! Su''lier?s re'orting o! its 'er!ormance against t(e

re:uirements o! t(is Agreement and9or

@c ot(erwise +eri!%ing w(et(er Su''lier is com'l%ing wit( its o-ligations under

t(is Agreement.

1)." A0)* N*),

MNZ ma% initiate an Audit -% gi+ing not less t(an =usiness a%s? notice to Su''lier

@Audit Notice. MNZ will not initiate more t(an one Audit in an% si* mont( 'eriod,

alt(oug( Audits w(ic( re+eal nontri+ial o+erc(arging or noncom'liance -% Su''lier

will not count towards t(is total. MNZ will ensure t(at eac( Audit Notice 'ro+ides a

reasona-le outline o! t(e sco'e and 'ur'ose o! t(e Audit in :uestion.


34/54


1777"61""91617#6. "#

1).$ A0)*(

Eac( Audit will -e carried out -% an inde'endent and re'uta-le 'ro+ider o! auditing

ser+ices nominated -% MNZ @Auditor. >or t(e 'ur'oses o! t(e Audit, MNZ will

'rocure t(at t(e Auditor enters into a con!identialit% deed in !a+our o! Su''lier w(ic(im'oses con!identialit% o-ligations on t(e Auditor w(ic( are as strict as t(ose

im'osed on MNZ under t(is Agreement, -ut to a+oid dou-t t(e Auditor will not -e

're+ented !rom disclosing an% in!ormation to MNZ, or !rom retaining an% notes or

ot(er in!ormation to t(e e*tent necessar% !or t(e Auditor to maintain its 'ro!essional

indemnit% insurance co+er.

1).) A, * 9(,+),

Su''lier s(all grant t(e Auditor access to an% 'remises under t(e control o! Su''lier

or its Contractors w(ic( t(e Auditor reasona-l% considers rele+ant to t(e Audit, at

an% time during w(ic( t(e rele+ant 'remises are ordinaril% o'en !or -usiness, so

long as t(e Auditor 'ro+ides not less t(an two =usiness a%s? notice, agrees to

com'l% wit( Su''lier?s reasona-le securit% and sa!et% re:uirements !or t(ose

'remises, and 'roduces a''ro'riate identi!ication i! re:uested -% an% Personnel

res'onsi-le !or controlling access to t(ose 'remises. MNZ will ensure t(at an% Audit

acti+ities conducted at suc( 'remises are carried out in a reasona-le manner, wit( a

+iew to minimising an% disru'tion to Su''lier?s -usiness.

1). A, * +'*,()'.

Su-8ect to clause 1).), to t(e e*tent reasona-l% re:uired -% t(e Auditor !or t(e

'ur'oses o! an Audit, Su''lier will 'ermit and arrange !or t(e Auditor toB

@a e*amine an% 'remises, (ardware, so!tware, e:ui'ment, in+entor%, s%stems,

data or ot(er records, documents, 'rocesses or in!ormation in t(e 'ossessionor control o! Su''lier or its Contractors and relating to t(is Agreement @Audit

Su*ject Matter

@- ta0e '(otogra'(s or co'ies @as a''lica-le o! an% Audit Su-8ect Matter, e*ce't

to t(e e*tent t(at t(is would result in Su''lier -reac(ing t(e intellectual

'ro'ert% or con!identialit% rig(ts o! an% t(ird 'art% @alt(oug( Su''lier will use

all reasona-le endea+ours to o-tain an% t(ird 'art% consents necessar% !or

suc( '(otogra'(% and co'%ing and9or

@c inter+iew, and recei+es ade:uate e*'lanations !rom, Su''lier?s Personnel, in

relation to an% Audit Su-8ect Matter and9or Su''lier?s acti+ities in connection


1).3 C*

! t(e Audit s(ows t(at Su''lier (as o+erc(arged MNZ -% more t(an G o! t(e

corrected +alue o! an% in+oice, or i! t(e Audit s(ows t(at Su''lier is in -reac( o! t(is

Agreement @e*cluding tri+ial matters, t(en Su''lier will reim-urse MNZ !or t(e

reasona-le !ees and e*'enses 'a%a-le to t(e Auditor in res'ect o! t(e Audit, and

MNZ will not -e c(arged an% !ees or costs -% Su''lier or an% o! its Contractors in

relation to an% ins'ection, co'%ing or access underta0en -% MNZ or its Auditor !or

t(e 'ur'oses o! an Audit. n an% ot(er case, MNZ will reim-urse Su''lier !or an%

costs reasona-l% incurred -% Su''lier in coo'erating wit( t(e Audit, -ut onl% to t(e

e*tent t(at t(ose costs (a+e -een a''ro+ed in ad+ance -% MNZ -ased on a


35/54


1777"61""91617#6. $7

-rea0down and estimate 'ro+ided -% Su''lier. MNZ will not unreasona-l% wit((old

suc( a''ro+al.

1).5 G


36/54


1777"61""91617#6. $1

accordance wit( t(is Agreement, and su-8ect to an% restrictions noti!ied to Su''lier

at t(e time t(e P Material is 'ro+ided -% MNZ. Su''lier ma% e*ercise its rig(ts

under t(is licence t(roug( its Contractors and Personnel.

1.3 S*-'(,

Su''lier grants MNZ t(e licences to t(e So!tware set out in [Sc(edule 6 @So!tware

4icence &erms].

1.5 W'(('/*),

@a Su''lier warrants t(at it (as @or will (a+e at t(e rele+ant time all t(e necessar%

rig(ts and aut(orit% to grant @and 'rocure its Contractors and Personnel to grant

t(e assignments and licences in clauses 1.", 1.)and 1.3.

@- MNZ warrants t(at it (as @or will (a+e at t(e rele+ant time all t(e necessar% rig(ts

and aut(orit% to grant @and 'rocure its Contractors and Personnel to grant t(e

assignments and licences in clauses 1.$and 1..

1.6 K/- :-

Not(ing in t(is Agreement will restrict eit(er Part% !rom de+elo'ing or using an%

tec(ni:ues, ideas, conce'ts, in!ormation or 0now(ow relating to met(ods or

'rocesses o! general a''lication, so long as t(e de+elo'ment or use does not in+ol+e

identi!%ing t(e ot(er Part%.

13 CONFIDENTIALIT#

13.1 O=.)@'*)/ /)0,/,

Su-8ect to clause 13.", eac( Part% will 0ee' t(e ot(er Part%?s Con!identialn!ormation in t(e utmost con!idence, and will use or disclose t(at Con!idential

n!ormation onl% to t(e e*tent necessar% to 'er!orm its o-ligations, and9or ta0e t(e

intended -ene!it o! its rig(ts, under t(is Agreement.

13." P,(+)**,0 , '/0 0).(,

Clause 13.1will not 'ro(i-itB

@a eit(er Part% !rom using or disclosing an% in!ormation wit( t(e e*'ress 'rior

consent o! t(e ot(er Part%

@- use or disclosure o! in!ormation t(at (as -ecome generall% 0nown to t(e'u-lic ot(er t(an t(roug( a -reac( o! t(is Agreement

@c eit(er Part% !rom disclosing in!ormation to its Contractors and Personnel wit(

a need to 0now, so long as t(e rele+ant Contractors and Personnel use t(e

in!ormation solel% to ena-le t(at Part% to 'er!orm its o-ligations and9or ta0e

t(e intended -ene!it o! its rig(ts under t(is Agreement, and so long as t(at

Part% in!orms t(ose Contractors and Personnel o! t(e con!idential nature o!

t(e in!ormation

@d MNZ !rom using and9or disclosing generic tec(nical, 'rocedural and9or

o'erational in!ormation a-out t(e /or0s or Solution, to t(e e*tent reasona-l%

necessar% as 'art o! an% MNZ 'rocurement 'rocess


37/54


1777"61""91617#6. $"

@e disclosure re:uired -% an% statute or regulations, or an% court order and9or

@! disclosure -% MNZ at t(e re:uest o! an o!!icer o! 'arliament, a 'arliamentar%

select committee, a ro%al commission, or a minister o! t(e Crown @including!or t(e 'ur'oses o! a 'arliamentar% :uestion.

13.$ P=.))*

Su''lier will ensure t(at, e*ce't w(ere MNZ directs ot(erwise, all media en:uiries

and 'u-lic en:uiries regarding t(e /or0s or Solution are directed to MNZ wit(out

an% comment !rom Su''lier. Su''lier will not issue an% 'u-licit% or 'romotional

material relating or re!erring to t(is Agreement or an% acti+ities under it, e*ce't wit(

MNZ?s 'rior 'ermission @w(ic( will not -e unreasona-l% wit((eld or dela%ed, -ut ma%

-e granted su-8ect to an% conditions reasona-l% s'eci!ied -% MNZ.

13.) R,*(/ C/)0,/*)'. I/(+'*)/

At t(e end o! t(e isengagement Period, eac( 2older will return or destro% @at t(e

Owner?s election all Con!idential n!ormation in t(e 'ossession or control o! t(e

2older or its Contractors, and will con!irm to t(e Owner w(en it (as done so.

2owe+er, not(ing in t(is clause 13.)will re:uire t(e return or destruction o!B

@a an% in!ormation w(ic( t(e 2older reasona-l% re:uires !or t(e 'ur'oses o!

isengagement, unless and until it is no longer re:uired !or t(at 'ur'ose

@- an% in!ormation to t(e e*tent stored in electronic -ac0u's made -% t(e 2older

or its Contractors w(ic( cannot easil% -e 'urged o! t(e Con!idential

n!ormation

@c an% in!ormation w(ic( t(e 2older reasona-l% -elie+es will -e needed -e%ond

t(e end o! t(e isengagement Period in order !or it toB

@i use, re'air, maintain, integrate, en(ance and9or e*tend an% assets

w(ic( t(e Owner or its A!!iliates are to trans!er or return to t(e 2older

or its A!!iliates as 'art o! isengagement

@ii en!orce or ta0e t(e -ene!it o! an% rig(ts arising under or in connection

wit( t(is Agreement and sur+i+ing termination or e*'ir%

@iii resol+e an% is'ute in 'rogress or reasona-l% antici'ated as at t(ee*'ir% o! t(e isengagement Period and9or

@i+ com'l% wit( an% 4aws

@d in t(e case o! Su''lier as t(e 2older, an% Su''lier Owned e+elo'ments

@e+en i! originall% 'ro+ided -% MNZ, or an% MNZ 4icensed P Material in

res'ect o! w(ic( Su''lier continues to (a+e a licence under t(is Agreement

and

@e in t(e case o! MNZ as t(e 2older, an% MNZ Owned e+elo'ments @e+en i!

originall% 'ro+ided -% Su''lier, or an% Su''lier 4icensed P Material in

res'ect o! w(ic( MNZ continues to (a+e a licence under t(is Agreement.


38/54


1777"61""91617#6. $$

15 TERMINATION

15.1 M'*,()'. =(,': = S99.),(

MNZ can terminate t(is Agreement -% gi+ing notice to Su''lier, i! at t(e time o! t(enotice Su''lier is materiall% in -reac( o! an% o-ligation, warrant%, re'resentation or

underta0ing in t(is Agreement, and (as !ailed to remed% t(at -reac( wit(in

1 =usiness a%s a!ter recei+ing notice !rom MNZ outlining t(e su-stance o! t(e

-reac(, stating t(at MNZ regards t(e -reac( as material, and re:uiring Su''lier to

remed% t(e -reac(. ! Su''lier commits a series o! related -reac(es w(ic(

collecti+el% (a+e an im'act t(at is e:ui+alent to t(e im'act o! a material -reac(,

t(ose -reac(es will toget(er -e deemed to constitute a Dmaterial -reac( !or t(e

'ur'oses o! t(is Agreement.

15." D,.' = S99.),(

/it(out limiting clause 15.1, MNZ can terminate t(is Agreement -% gi+ing notice to

Su''lier, i! at t(e time o! t(e notice a Milestone is o+erdue -% more t(an

$7 =usiness a%s -e%ond its ue ate, a!ter ta0ing into account an% &ime

E*tensions to w(ic( Su''lier is entitled under t(is Agreement.

15.$ B(,': 0,,* -'(('/*

MNZ can terminate t(is Agreement -% gi+ing notice to Su''lier, in t(e circumstances

'ermitted -% clause 11.)@c.

15.) N/?9'+,/* = MNZ

Su''lier can terminate t(is Agreement -% gi+ing notice to MNZ, i! at t(e time o! t(e

noticeB

@a more t(an J7,777 @e*cluding ;S& o! t(e Contract Price is o+erdue -% more

t(an $7 =usiness a%s, e*cluding an% amounts wit((eld under clause 1".6

@- Su''lier (as gi+en notice to MNZ, clearl% mar0ed !or t(e attention o! D&(e

irector, Maritime New Zealand, setting out t(e o+erdue amount, stating t(at

it is o+erdue, and e*'ressl% reser+ing Su''lier?s rig(t to terminate under t(is

clause 15.) and

@c at least 17 =usiness a%s (a+e 'assed since t(e recei't o! t(at notice, and

more t(an J7,777 @e*cluding ;S& o! t(e amount remains un'aid.

15. I/.orce Ma8eure, and t(ose &ime E*tensions toget(er amount to

#7 da%s or more, MNZ ma% gi+e notice to Su''lier terminating t(is Agreement.


39/54


1777"61""91617#6. $)

15.5 T,(+)/'*)/ SAM A@(,,+,/*

! t(e SAM Agreement is +alidl% terminated !or an% reason, t(e w(ole o! t(is

Agreement will -e deemed to (a+e -een +alidl% terminated, -% t(e same Part%. &o

a+oid dou-t, w(ere one Part% +alidl% terminates t(e SAM Agreement !or t(e ot(erPart%?s de!ault, t(e same de!ault will also -e deemed a de!ault under t(is

Agreement, and t(e !irst 'art% will -e deemed to (a+e terminated t(is Agreement

!or t(at de!ault.

15.6 C/


40/54


1777"61""91617#6. $

16.) T,(+)/'*)/ 9'+,/*

! MNZ terminates under clause 15.3or 15.6, or Su''lier terminates under

clause 15.)or 15., t(en once Su''lier (as com'lied wit( its o-ligations under

clause 16.$and 'aid an% li:uidated damages or ot(er amounts 'a%a-le to MNZunder t(is Agreement, Su''lier ma% in+oice MNZ !orB

@a a !air and reasona-le 'ro'ortion o! an% remaining 'art o! t(e Contract Price

w(ic( Su''lier was not %et entitled to in+oice as at t(e time o! termination, as

determined -% MNZ in its reasona-le discretion and a!ter consultation wit(

Su''lier, ta0ing into accountB

@i t(e 'ro'ortion o! t(e /or0s ac(ie+ed 'rior to t(e e!!ecti+e date o!

termination and

@ii an% costs reasona-l% incurred or committed -% Su''lier in t(e

e*'ectation o! com'leting t(e /or0s, or an% lesser cancellation or

transaction costs re:uired to a+oid or reco+er t(e costs alread% incurred

or committed 'lus

@- t(e reasona-le costs incurred -% Su''lier in com'l%ing wit( its o-ligations

under clause 16.$, su-8ect to Su''lier using all reasona-le endea+ours to

minimise t(ose costs.

16. C/*)/)/@ 9(


41/54


1777"61""91617#6. $3

1#." T:)(0 9'(* .')+ '@')/* S99.),(

MNZ will indemni!% Su''lier and its Personnel and Contractors @Supplier "ndemnified

Parties on an ongoing -asis against an% claim or 'roceeding -roug(t -% an% t(ird

'art% arising out o!, or in res'ect o!, an% -odil% in8ur% to or deat( o! a 'erson, an%damage to real 'ro'ert%, an% in!ringement o! t(ird 'art% ntellectual Pro'ert% Rig(ts,

and9or an% damage to or t(e!t o! tangi-le 'ersonal 'ro'ert%, in eac( case caused -%

MNZ?s -reac( o! t(is Agreement, or -% an% ot(er negligent act, negligent omission

or wil!ul misconduct o! MNZ or an% o! its Contractors or Personnel in connection wit(

t(is Agreement, and will (old eac( Su''lier ndemni!ied Part% (armless against an%

8udgments, awards or lia-ilities arising !rom t(at claim or 'roceeding, and an%

losses, costs or e*'enses reasona-l% incurred -% eac( Su''lier ndemni!ied Part% in

de!ending and9or settling t(at claim or 'roceeding. MNZ?s lia-ilit% under t(is

clause 1#."will not in an% circumstances e*ceed J,777,777 'er e+ent or series o!

related e+ents.

1#.$ M)*)@'*)/

Eac( Part% must use all reasona-le endea+ours to mitigate an% lia-ilities, losses,

costs or e*'enses !or w(ic( it see0s to -e indemni!ied under t(is clause 1#.

"7 LIABILIT#

"7.1 E;.)/ .)'=).)*

Su-8ect to clause "7.), neit(er Part% will -e lia-le under or in connection wit( t(is

Agreement !or an% loss o! 'ro!its, re+enue, re'utation, -usiness o''ortunit%,

antici'ated sa+ings or antici'ated gains, an% -usiness interru'tion, an% loss or

corru'tion o! data, an% s'ecial or 'uniti+e damages, or an% indirect or conse:uential

loss -ut to a+oid dou-t t(is will not e*clude an% lia-ilit% Su''lier ma% (a+e !or MNZRemedial Costs.

"7." S99.),( .)'=).)*

Su-8ect to clause "7.), t(e total com-ined lia-ilit% o! Su''lier to MNZ under or in

connection wit( t(is Agreement, in res'ect o! all t(e e+ents t(at occur at an% time

-e!ore, during or a!ter t(e &erm, will not in an% circumstances e*ceed J[ ].

"7.$ MNZ .)'=).)*

Su-8ect to clause "7.), t(e total com-ined lia-ilit% o! MNZ to Su''lier under or in

connection wit( t(is Agreement, in res'ect o! all t(e e+ents t(at occur at an% time

-e!ore, during or a!ter t(e &erm, will not in an% circumstances e*ceed J[ ].

"7.) E;,9*)/

None o! t(e e*clusions and limitations in t(is clause "7will a''l% to or ta0e into

accountB

@a an% lia-ilit% t(at cannot law!ull% -e limited or e*cluded -% contract

@- an% lia-ilit% eit(er Part% ma% (a+e in connection wit( t(e SAM Agreement

@c an% lia-ilit% eit(er Part% ma% (a+e !or !raud, deceit, wil!ul de!ault, -reac( o!

con!identialit%, or in!ringement o! ntellectual Pro'ert% Rig(ts


42/54


1777"61""91617#6. $5

@d an% !ees, c(arges, li:uidated damages, ser+ice credits or ot(er amounts w(ic(

t(is Agreement e*'ressl% re:uires one Part% to 'a% to t(e ot(er or

@e an% lia-ilit% eit(er Part% ma% (a+e under an indemnit% set out in t(isAgreement.

"7. A99.)'*)/ .)+)*'*)/ '/0 ,;.)/

Su-8ect to clause "7.), t(e limitations and e*clusions in t(is clause "7a''l% to all

lia-ilit% arising under or in connection wit( t(is Agreement, w(et(er in contract, tort

@including negligence, e:uit% or under an% ot(er law or legal t(eor%. Eac( o! t(e

limitations and e*clusions in t(is clause "7 is se'arate and inde'endent, and will -e

a''lied on a cumulati+e -asis wit( all ot(er a''lica-le e*clusions and limitations.

"1 INSURANCE

[To *e negotiated2 ta+ing into account insurance regime proposed in Supplier3s ATM

response2 financial su*stance of Supplier2 si4e of Supplier3s performance *ond2 and

&!et!er Supplier provides a parent company guarantee5]

"" DISPUTE RESOLUTION

"".1 D)9*,

An% dis'ute, contro+ers% or claim arising -etween t(e Parties out o! or in connection

wit( t(is Agreement, or in relation to an% :uestion regarding its e*istence, -reac(,

termination or in+alidit%, @in eac( case, a Dispute will -e settled in accordance wit(

t(is clause "".

""." N*), '/0 /.*'*)/

/(ere a is'ute arises, eit(er Part% ma% gi+e written notice to t(e ot(er outlining

t(e is'ute and re:uesting a !ormal meeting wit( a +iew to resol+ing it @Dispute

Notice, in w(ic( case -ot( MNZ and Su''lier will 'rom'tl% attem't to resol+e t(e

is'ute -% consultation at t(e lowest 'ractica-le le+el o! escalation.

"".$ E'.'*)/

! t(e is'ute (as not -een resol+ed wit(in 17 =usiness a%s @or an% longer 'eriod

agreed -% t(e Parties !ollowing recei't o! t(e is'ute Notice, t(en eit(er Part% ma%

gi+e notice re!erring t(e is'ute to MNZ?s [title] and Su''lier?s [title]@Escalation

Notice, in w(ic( case eac( Part% will use reasona-le endea+ours to ensure t(at

t(ose re'resentati+es meet 'rom'tl% t(erea!ter wit( a +iew to resol+ing t(e is'ute.

"".) M,0)'*)/

! t(e is'ute is not resol+ed wit(in 17 =usiness a%s @or an% longer 'eriod agreed

-% t(e Parties o! recei't o! t(e Escalation Notice, eit(er Part% ma% gi+e notice

re!erring t(e is'ute to mediation @Mediation Notice. &(e mediation will -e

conducted in /ellington, in accordance wit( t(e t(encurrent Standard Mediation

Agreement o! 4EAR New Zealand nc. &(e mediator and (is or (er !ee will -e as

agreed -% t(e Parties or, !ailing agreement wit(in =usiness a%s o! recei't o! t(e

Mediation Notice, determined -% t(e C(air !or t(e time -eing o! 4EAR New Zealand

nc @or (is or (er nominee.


43/54


1777"61""91617#6. $6

"". A(=)*('*)/

! t(e is'ute is not resol+ed wit(in 1 =usiness a%s @or an% longer 'eriod agreed

-% t(e Parties o! recei't o! t(e Mediation Notice, eit(er Part% ma% gi+e notice

re!erring t(e is'ute to ar-itration @Ar*itration Notice. &(e ar-itration will -econducted -e!ore a single ar-itrator in /ellington, New Zealand. &(e ar-itrator will

-e agreed -etween t(e Parties or, !ailing agreement wit(in =usiness a%s o!

recei't o! t(e Ar-itration Notice, a''ointed -% t(e President o! t(e Ar-itrators? and

Mediators? nstitute o! New Zealand. &(e ar-itration will -e conducted in accordance

wit( t(e Ar-itration Act 1##3.

"".3 P,((+'/, '/0 (,+,0),

E*ce't to t(e e*tent t(is Agreement e*'ressl% 'ermits ot(erwise, eac( Part% will

continue to 'er!orm its o-ligations under t(is Agreement notwit(standing t(e

e*istence o! an% is'ute. 2owe+er, not(ing in t(is clause ""will 're+ent eit(er

Part% !rom see0ing urgent interim relie! !rom a court o! com'etent 8urisdiction, or

re:uire eit(er Part% to re!rain !rom e*ercising an% rig(ts or remedies a+aila-le in

connection wit( t(is Agreement.

"$ OT"ER MATTERS

"$.1 N*), '/0 ++/)'*)/

@a An% notice, consent, 'ermission, a''ro+al, agreement, instruction, underta0ing,

re'ort or ot(er communication gi+en -% a Part% !or t(e 'ur'oses t(is Agreement

@Notice will -e o! no e!!ect unless gi+en in writing and addressed to t(e reci'ient at

t(e address last noti!ied -% t(e reci'ient to t(e ot(er Part%. Fntil a c(ange o!

address is so noti!ied, t(e address o! eac( Part% is as !ollowsB

MNZ

[Address]

AttnB [ ]

EmailB [ ]

S99.),(

[Address]

AttnB [ ]

EmailB [ ]

@- eli+er% o! Notices ma% -e e!!ected -% (and, -% 'ost wit( 'ostage 're'aid, or -%

email. Su-8ect to clause "$.1@c, a Notice will -e deemed to (a+e -een recei+edB

@i in t(e case o! (and deli+er% or 're'aid 'ost, at t(e time o! actual deli+er% to

t(e reci'ient?s address

@ii in t(e case o! deli+er% -% email, no later t(an 1 =usiness a% a!ter t(e email

is dis'atc(ed !rom t(e sender?s email ser+er, unless wit(in t(at time t(e

sender?s email ser+er recei+es a noti!ication t(at t(e email (as not -een

deli+ered, or an automated Dout o! o!!ice or similar noti!ication indicating t(at

t(at t(e reci'ient is una+aila-le or

@iii in t(e case o! deli+er% -% !acsimile, no later t(an t(e time o! transmission

s'eci!ied in a transmission re'ort !rom t(e sending mac(ine w(ic( indicates

t(at t(e !acsimile was sent in its entiret% to t(e !acsimile num-er o! t(e

reci'ient.


44/54


1777"61""91617#6. $#

@c ! a Notice is recei+ed or deemed to (a+e -een recei+ed a!ter 'm on a -usiness

da% in t(e 'lace to w(ic( it is sent, or on a da% w(ic( is not a -usiness da% in t(at

'lace, it will -e deemed not to (a+e -een recei+ed until t(e ne*t -usiness da% in t(at

'lace.

"$." C((,*)/

MNZ ma% -% notice to Su''lier correct an% error or omission in an% 're+ious Notice

gi+en -% MNZ. &o t(e e*tent t(at Su''lier (as reasona-l% relied on t(at Notice, and

as a result t(e correction is li0el% to cause Su''lier to incur un!oreseen cost or dela%

in t(e /or0s, t(en Su''lier must 'rom'tl% noti!% MNZ, in w(ic( case t(e correction

w