Common use of Third Party Sampling Clause in Contracts

Third Party Sampling. 9.1.1 The Third Party Sampling facility shall be extended as an option to the buyers from sources other than Cost Plus. Third Party Sampling is mandatory for supplies from Cost Plus Sources. In case third party sampling could not be carried out for any reason, carrying out joint sampling shall be mandatory. 9.1.2 Notwithstanding anything to the contrary contained herein, the Purchaser shall be required to inform the Seller in writing on the Signature Date whether it proposes to avail third party sampling from a Third Party Agency in accordance with the terms hereof. Purchaser who is not desirous of availing the option of third party sampling shall give an undertaking to this effect. 9.1.3 In the event the Purchaser intimates the Seller that it is desirous of availing third party sampling by the Third Party Agency, such facility shall be allowed as per following conditions. (i) The facility shall be extended at the Delivery Point only and such third party sampling shall be undertaken for the supplies against this FSA in accordance with the procedure for third party sampling for non- power consumers as per Annexure VII. (ii) If for any reason whatsoever, the third party sampling cannot be conducted in accordance with the procedure for third party sampling for non- power consumers as per Annexure VII, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the Delivery Point in accordance with the modalities for joint sampling as noted in Annexure VII. However, failure of the purchaser to be present will not invalidate or be a ground for disputing the sampling and analysis carried out by the seller. (iii) If for any reason whatsoever, the third party sampling/ joint sampling cannot be conducted in accordance with the procedure for third party sampling for non- power consumers as per ▇▇▇▇▇▇▇▇ ▇▇▇, the said consignment will be treated in the manner as in case of buyers not desirous of third party sampling. However, the same is not applicable in case of Cost Plus sources. (iv) For commencement of third party sampling a Tripartite agreement shall be signed by the purchaser, seller and the third party within a time frame as decided mutually by the parties involved as per format available with Coal Company. Till such time 9.1.3(ii) or 9.1.3 (iii) shall be applicable as the case may be. (v) 50% share of the cost of third party sampling shall be borne by the purchaser in terms of the tripartite agreement. Such payment shall be made by the purchaser directly to the third party agency. 9.1.4 In case of a variation of Grade of Coal (decided on the basis of third party sampling by a the Third Party Agency/joint sampling/referee lab as applicable) as compared to the contracted grade of coal, the winning premium shall be added on the Modulated Price of the supplied grade of coal as illustrated below: Illustration: Contracted Grade G6 Reserve Price (Rs./ Tonne) (B) 2,280 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 13.16 Actually Supplied Grade G7 Modulated Price of Supplied Grade (Rs./ Tonne) (E) 1,920 Premium of Supplied Grade (Rs./ Tonne) (F=E*D) 252.67 For coking coal [delete if not applicable]: Contracted Grade Washery Grade II Reserve Price (Rs./ Tonne) (B) 3,210 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 9.35 Actually Supplied Grade Washery Grade III Modulated Price of Supplied Grade (Rs./ Tonne) (E) 2,750 Premium of Supplied Grade (Rs./ Tonne) (F=E*D) 257.1 Price Payable for Washery III Grade (Rs/Tonne) (I = E+F) 3007.1 A similar procedure to calculate the applicable price will be followed in case of upward variation in the Contracted Grade of Coal. For non-coking coal [Delete if not applicable]: Notwithstanding the above, it is clarified that if pursuant to the third party sampling by a Third Party Agency, the test results establish that the Grade of Coal supplied falls outside the categorization stipulated in Table I of the Ministry of Coal notification dated June 16, 1994, as modified from time to time, then the supplied coal shall be deemed to be non-coking coal. Such non-coking coal shall be graded on GCV bands and the grade for such non-coking coal shall be established on the GCV band within which it falls. Accordingly, in such a case, the winning premium (insert in numbers)% [(insert in words) per cent.] shall be added on the Modulated Price of the supplied grade of non- coking coal. Note: It is clarified that the winning premium shall be rounded to the nearest second decimal.

Third Party Sampling. 9.1.1 The Third Party Sampling facility shall be extended as an option to the buyers from sources other than Cost Plus. Third Party Sampling is mandatory for supplies from Cost Plus Sources. In case third party sampling could not be carried out for any reason, carrying out joint sampling shall be mandatory. 9.1.2 Notwithstanding anything to the contrary contained herein, the Purchaser shall be required to inform the Seller in writing on the Signature Date whether it proposes to avail third party sampling from a Third Party Agency in accordance with the terms hereof. Purchaser who is not desirous of availing the option of third party sampling shall give an undertaking to this effect. 9.1.3 In the event the Purchaser intimates the Seller that it is desirous of availing third party sampling by the Third Party Agency, such facility shall be allowed as per following conditions. (i) The facility shall be extended at the Delivery Point only and such third party sampling shall be undertaken for the supplies against this FSA in accordance with the procedure for third party sampling for non- power consumers as per Annexure VII▇▇▇▇▇▇▇▇ ▇▇▇. (ii) If for any reason whatsoever, the third party sampling cannot be conducted in accordance with the procedure for third party sampling for non- power consumers as per Annexure VII, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the Delivery Point in accordance with the modalities for joint sampling as noted in Annexure VII. However, failure of the purchaser to be present will not invalidate or be a ground for disputing the sampling and analysis carried out by the seller. (iii) If for any reason whatsoever, the third party sampling/ joint sampling cannot be conducted in accordance with the procedure for third party sampling for non- power consumers as per ▇▇▇▇▇▇▇▇ ▇▇▇, the said consignment will be treated in the manner as in case of buyers not desirous of third party sampling. However, the same is not applicable in case of Cost Plus sources. (iv) For commencement of third party sampling a Tripartite agreement shall be signed by the purchaser, seller and the third party within a time frame as decided mutually by the parties involved as per format available with Coal Company. Till such time 9.1.3(ii) or 9.1.3 (iii) shall be applicable as the case may be. (v) 50% share of the cost of third party sampling shall be borne by the purchaser in terms of the tripartite agreement. Such payment shall be made by the purchaser directly to the third party agency. 9.1.4 In case of a variation of Grade of Coal (decided on the basis of third party sampling by a the Third Party Agency/joint sampling/referee lab as applicable) as compared to the contracted grade of coal, the winning premium shall be added on the Modulated Price of the supplied grade of coal as illustrated below: Illustration: Contracted Grade G6 Reserve Price (Rs./ Tonne) (B) 2,280 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 13.16 Actually Supplied Grade G7 Modulated Price of Supplied Grade (Rs./ Tonne) (E) 1,920 Premium of Supplied Grade (Rs./ Tonne) (F=E*D) 252.67 For coking coal [delete if not applicable]: Contracted Grade Washery Grade II Reserve Price (Rs./ Tonne) (B) 3,210 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 9.35 Actually Supplied Grade Washery Grade III Modulated Price of Supplied Grade (Rs./ Tonne) (E) 2,750 Premium of Supplied Grade (Rs./ Tonne) (F=E*D) 257.1 Price Payable for Washery III Grade (Rs/Tonne) (I = E+F) 3007.1 A similar procedure to calculate the applicable price will be followed in case of upward variation in the Contracted Grade of Coal. For non-coking coal [Delete if not applicable]: Notwithstanding the above, it is clarified that if pursuant to the third party sampling by a Third Party Agency, the test results establish that the Grade of Coal supplied falls outside the categorization stipulated in Table I of the Ministry of Coal notification dated June 16, 1994, as modified from time to time, then the supplied coal shall be deemed to be non-coking coal. Such non-coking coal shall be graded on GCV bands and the grade for such non-coking coal shall be established on the GCV band within which it falls. Accordingly, in such a case, the winning premium (insert in numbers)% [(insert in words) per cent.] shall be added on the Modulated Price of the supplied grade of non- coking coal. Note: It is clarified that the winning premium shall be rounded to the nearest second decimal.

Third Party Sampling. 9.1.1 The Third Party Sampling facility shall be extended as an option to the buyers from sources other than Cost Plus. Third Party Sampling is mandatory for supplies from Cost Plus Sources. In case third party sampling could not be carried out for any reason, carrying out joint sampling shall be mandatory. 9.1.2 Notwithstanding anything to the contrary contained herein, the Purchaser shall be required to inform the Seller in writing on the Signature Date whether it proposes to avail third party sampling from a Third Party Agency in accordance with the terms hereof. Purchaser who is not desirous of availing the option of third party sampling shall give an undertaking to this effect. 9.1.3 In the event the Purchaser intimates the Seller that it is desirous of availing third party sampling by the Third Party Agency, such facility shall be allowed as per following conditions. (i) The facility shall be extended at the Delivery Point only and such third party sampling shall be undertaken for the supplies against this FSA in accordance with the procedure for third party sampling for non- power consumers as per Annexure VII. (ii) If for any reason whatsoever, the third party sampling cannot be conducted in accordance with the procedure for third party sampling for non- power consumers as per Annexure VII, joint sampling and analysis shall be carried out by the Seller in presence of the Purchaser at the Delivery Point in accordance with the modalities for joint sampling as noted in Annexure VII. However, failure of the purchaser to be present will not invalidate or be a ground for disputing the sampling and analysis carried out by the seller. (iii) If for any reason whatsoever, the third party sampling/ joint sampling cannot be conducted in accordance with the procedure for third party sampling for non- power consumers as per ▇▇▇▇▇▇▇▇ ▇▇▇, the said consignment will be treated in the manner as in case of buyers not desirous of third party sampling. However, the same is not applicable in case of Cost Plus sources. (iv) For commencement of third party sampling a Tripartite agreement shall be signed by the purchaser, seller and the third party within a time frame as decided mutually by the parties involved as per format available with Coal Company. Till such time 9.1.3(ii) or 9.1.3 (iii) shall be applicable as the case may be. (v) 50% share of the cost of third party sampling shall be borne by the purchaser in terms of the tripartite agreement. Such payment shall be made by the purchaser directly to the third party agency. 9.1.4 In case of a variation of Grade of Coal (decided on the basis of third party sampling by a the Third Party Agency/joint sampling/referee lab as applicable) as compared to the contracted grade of coal, the winning premium shall be added on the Modulated Price of the supplied grade of coal as illustrated below: Illustration: Contracted Grade G6 Reserve Price (Rs./ Tonne) (B) 2,280 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 13.16 Actually Supplied Grade G7 Modulated Price of Supplied Grade (Rs./ Tonne) (E) 1,920 Premium of Supplied Grade (Rs./ Tonne) (F=E*D) 252.67 For coking coal [delete if not applicable]: Contracted Grade Washery Grade II Reserve Price (Rs./ Tonne) (B) 3,210 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 9.35 Actually Supplied Grade Washery Grade III Modulated Price of Supplied Grade (Rs./ Tonne) (E) 2,750 Premium of Supplied Grade (Rs./ Tonne) (F=E*D) 257.1 Price Payable for Washery III Grade (Rs/Tonne) (I = E+F) 3007.1 A similar procedure to calculate the applicable price will be followed in case of upward variation in the Contracted Grade of Coal. For non-coking coal [Delete if not applicable]: Notwithstanding the above, it is clarified that if pursuant to the third party sampling by a Third Party Agency, the test results establish that the Grade of Coal supplied falls outside the categorization stipulated in Table I of the Ministry of Coal notification dated June 16, 1994, as modified from time to time, then the supplied coal shall be deemed to be non-coking coal. Such non-coking coal shall be graded on GCV bands and the grade for such non-non- coking coal shall be established on the GCV band within which it falls. Accordingly, in such a case, the winning premium (insert in numbers)% [(insert in words) per cent.] shall be added on the Modulated Price of the supplied grade of non- coking coal. Note: It is clarified that the winning premium shall be rounded to the nearest second decimal.

Third Party Sampling. 9.1.1 10.1.1 The Third Third-Party Sampling sampling facility shall be extended as an option to the buyers from sources other than Cost Plus. Third Party Sampling is mandatory for supplies from Cost Plus Sources. In case third party sampling could not be carried out for any reason, carrying out joint sampling shall be mandatoryPurchaser. 9.1.2 10.1.2 Notwithstanding anything to the contrary contained herein, the Purchaser shall be required to inform the Seller in writing on the Signature Execution Date whether it proposes to avail third party Third-Party sampling from a Third Third-Party Agency in accordance with the terms hereof. In the event the Purchaser who is not desirous of availing the option of third third-party sampling shall give an undertaking to this effect. 9.1.3 10.1.3 In the event the Purchaser intimates the Seller that it is desirous of availing third party Third- Party sampling by the Third Third-Party Agency, such facility shall be allowed as per following conditions.: (i) 10.1.3.1 The facility shall be extended at the Delivery Point only and such third party Third-Party sampling shall be undertaken for the supplies against this FSA Agreement in accordance with the procedure for third party Third-Party sampling for non- non-power consumers as per Annexure VIIANNEXURE V . (ii) 10.1.3.2 If for any reason whatsoever, the third party Third-Party sampling cannot be conducted in accordance with the procedure for third party Third-Party sampling for non- non-power consumers as per Annexure VII, set out in ANNEXURE V joint sampling and analysis shall be carried out by the Seller in the presence of the Purchaser at the Delivery Point in accordance with the modalities for joint sampling as noted in Annexure VII. ANNEXURE V However, failure of the purchaser Purchaser to be present will not invalidate or be a ground for disputing the sampling and analysis carried out by the sellerSeller. (iii) 10.1.3.3 If for any reason whatsoever, the third party Third-Party sampling/ joint sampling cannot be conducted in accordance with the procedure for third party Third-Party sampling for non- power consumers as per ▇▇▇▇▇▇▇▇ ▇▇▇, set out in ANNEXURE V the said consignment will be treated in the manner as in case of buyers Purchaser not desirous of third availing third-party sampling. However, the same is not applicable in case of Cost Plus sources. (iv) 10.1.3.4 For commencement of third party sampling Third-Party sampling, a Tripartite tripartite agreement shall be signed by the purchaserPurchaser, seller Seller and the third party Third-Party within a time frame timeframe as decided mutually by the parties involved as per format available with Coal Companythe Seller. Till such time 9.1.3(ii) Clause 10.1.3.1 or 9.1.3 (iii) Clause 10.1.3.2 shall be applicable as the case may be. 10.1.3.5 Fifty percent (v50%) 50% share of the cost of third party Third-Party sampling shall be borne by the purchaser Purchaser in terms of the tripartite agreement. Such payment shall be made by the purchaser Purchaser directly to the third party agencyThird-Party Agency. 9.1.4 10.1.4 In case of a variation of Grade of Coal (decided on the basis of third party Third-Party sampling by a the Third Third-Party Agency/joint sampling/referee lab as applicable) as compared to the contracted grade Contracted Grade of coalCoal, the winning premium Winning Premium shall be added on the Modulated Price of the supplied grade of coal Coal as illustrated below: Illustration: Contracted Grade G6 Reserve Price (Rs./ TonneModulated Price) (Rs./Tonne) (B) 2,280 3187 Winning Premium at the time of auction (Rs./ TonneRs./Tonne) (C) 300 150 Winning Premium (in % terms at the time of auction) (D=C/B) 13.16 4.71% Actually Supplied Grade G7 (Downward Variation) W-V Modulated Price of Supplied Grade (Rs./ Tonne) (E) 1,920 Premium of 2586 Actually Supplied Grade (Rs./ TonneUpward Variation) (F=E*D) 252.67 For coking coal [delete if not applicable]: Contracted Grade Washery Grade II Reserve Price (Rs./ Tonne) (B) 3,210 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 9.35 Actually Supplied Grade Washery Grade W-III Modulated Price of Supplied Grade (Rs./ Tonne) (EH) 2,750 Premium of Supplied Grade (Rs./ Tonne) (F=E*D) 257.1 Price Payable 3354 10.1.5 In the event the Purchaser does not opt for Washery III Grade (Rs/Tonne) (I = E+F) 3007.1 A similar procedure to calculate Third Party sampling on the applicable price will be followed in case of upward variation in the Contracted Grade of Coal. For non-coking coal [Delete if not applicable]: Notwithstanding the aboveExecution Date, it may once exercise this option subsequently, any time during the Term of the Agreement. It is clarified that if pursuant to the third party sampling by a Third Party Agency, the test results establish further provided that the Grade of Coal supplied falls outside Purchaser opting for Third-Party sampling on either on Execution Date or subsequent date may be allowed to discontinue the categorization stipulated in Table I arrangement subject to written consent of the Ministry Purchaser. However, once the Purchaser opts out of Coal notification dated June 16Third-Party sampling after availing it, 1994, as modified from time it shall not be allowed to time, then opt for Third-Party sampling again during the supplied coal shall be deemed to be non-coking coal. Such non-coking coal shall be graded on GCV bands and the grade for such non-coking coal shall be established on the GCV band within which it falls. Accordingly, in such a case, the winning premium (insert in numbers)% [(insert in words) per cent.] shall be added on the Modulated Price entire Term of the supplied grade of non- coking coal. Note: It is clarified that the winning premium shall be rounded to the nearest second decimalAgreement.

Third Party Sampling. 9.1.1 10.1.1 The Third Third-Party Sampling sampling facility shall be extended as an option to the buyers from sources other than Cost Plus. Third Party Sampling is mandatory for supplies from Cost Plus Sources. In case third party sampling could not be carried out for any reason, carrying out joint sampling shall be mandatoryPurchaser. 9.1.2 10.1.2 Notwithstanding anything to the contrary contained herein, the Purchaser shall be required to inform the Seller in writing on the Signature Execution Date whether it proposes to avail third party Third-Party sampling from a Third Third-Party Agency in accordance with the terms hereof. In the event the Purchaser who is not desirous of availing the option of third third-party sampling shall give an undertaking to this effect. 9.1.3 10.1.3 In the event the Purchaser intimates the Seller that it is desirous of availing third party Third- Party sampling by the Third Third-Party Agency, such facility shall be allowed as per following conditions.: (ia) The facility shall be extended at the Delivery Point only and such third party Third-Party sampling shall be undertaken for the supplies against this FSA Agreement in accordance with the procedure for third party Third-Party sampling for non- non-power consumers as per Annexure VII▇▇▇▇▇▇▇▇ ▇ . (iib) If for any reason whatsoever, the third party Third-Party sampling cannot be conducted in accordance with the procedure for third party Third-Party sampling for non- non-power consumers as per Annexure VII, set out in ANNEXURE V joint sampling and analysis shall be carried out by the Seller in the presence of the Purchaser at the Delivery Point in accordance with the modalities for joint sampling as noted in Annexure VII. ANNEXURE V However, failure of the purchaser Purchaser to be present will not invalidate or be a ground for disputing the sampling and analysis carried out by the sellerSeller. (iiic) If for any reason whatsoever, the third party Third-Party sampling/ joint sampling cannot be conducted in accordance with the procedure for third party Third-Party sampling for non- power consumers as per ▇▇▇▇▇▇▇▇ ▇▇▇, set out in ANNEXURE V the said consignment will be treated in the manner as in case of buyers Purchaser not desirous of third availing third-party sampling. However, the same is not applicable in case of Cost Plus sources. (ivd) For commencement of third party sampling Third-Party sampling, a Tripartite tripartite agreement shall be signed by the purchaserPurchaser, seller Seller and the third party Third-Party within a time frame timeframe as decided mutually by the parties involved as per format available with Coal Companythe Seller. Till such time 9.1.3(iiClause 10.1.3(a) or 9.1.3 (iiiClause 10.1.3(b) shall be applicable as the case may be. (ve) Fifty percent (50% %) share of the cost of third party Third-Party sampling shall be borne by the purchaser Purchaser in terms of the tripartite agreement. Such payment shall be made by the purchaser Purchaser directly to the third party agencyThird-Party Agency. 9.1.4 10.1.4 In case of a variation of Grade of Coal (decided on the basis of third party Third-Party sampling by a the Third Third-Party Agency/joint sampling/referee lab as applicable) as compared to the contracted grade Contracted Grade of coalCoal, the winning premium Winning Premium shall be added on the Modulated Price of the supplied grade of coal Coal as illustrated below: Illustration: Contracted Grade G6 Reserve Price (Rs./ TonneModulated Price) (Rs./Tonne) (B) 2,280 2586 Winning Premium at the time of auction (Rs./ TonneRs./Tonne) (C) 300 150 Winning Premium (in % terms at the time of auction) (D=C/B) 13.16 5.80% Actually Supplied Grade G7 (Downward Variation) W-VI Modulated Price of Supplied Grade (Rs./ Tonne) (E) 1,920 Premium of 2496 Actually Supplied Grade (Rs./ TonneUpward Variation) (F=E*D) 252.67 For coking coal [delete if not applicable]: Contracted Grade Washery Grade II Reserve Price (Rs./ Tonne) (B) 3,210 Winning Premium at the time of auction (Rs./ Tonne) (C) 300 Winning Premium (in % terms at the time of auction) (D=C/B) 9.35 Actually Supplied Grade Washery Grade III W-IV Modulated Price of Supplied Grade (Rs./ Tonne) (EH) 2,750 Premium 3187 10.1.5 In the event the Purchaser does not opt for Third Party sampling on the Execution Date may once exercise this option subsequently, any time during the Term of Supplied Grade (Rs./ Tonne) (F=E*D) 257.1 Price Payable the Agreement. It is further provided that the Purchaser opting for Washery III Grade (Rs/Tonne) (I = E+F) 3007.1 A similar procedure Third-Party sampling on either on Execution Date or subsequent date may be allowed to calculate discontinue the applicable price will be followed in case arrangement subject to written consent of upward variation in the Contracted Grade Purchaser. However, once the Purchaser opts out of Coal. For nonThird-coking coal [Delete if not applicable]: Notwithstanding the aboveParty sampling after availing it, it is clarified that if pursuant shall not be allowed to opt for Third-Party sampling again during the third party sampling by a Third Party Agency, the test results establish that the Grade of Coal supplied falls outside the categorization stipulated in Table I entire Term of the Ministry of Coal notification dated June 16, 1994, as modified from time to time, then the supplied coal shall be deemed to be non-coking coal. Such non-coking coal shall be graded on GCV bands and the grade for such non-coking coal shall be established on the GCV band within which it falls. Accordingly, in such a case, the winning premium (insert in numbers)% [(insert in words) per centAgreement.] shall be added on the Modulated Price of the supplied grade of non- coking coal. Note: It is clarified that the winning premium shall be rounded to the nearest second decimal.