WORK AND TO ORDER CERTAIN MATERIALS AND COMPONENTS (''THE PRELIMIN –
IN ARY WORK'') FOR THE PROJECT BEFORE EXECUTION OF THE CONTRACT. THIS EVENT YOU WILL SUBMIT TO US A SCHEEDULE (THE SCHEDULER WORK? OF THE PRELIMINARY WORK FOR CUR AGREEMENT AND FOR THE PRIOR WRITTEN APPROVAL OF OUR BOARD OF DIRECTORS OF EACH ITEM OF COMMITMENT.
4. FOR SCHEDULED WORK SO APPROVED DURING THE VALIDITY OF THIS LETTER
AND SUBSEQUENTLY DISCONTINUED,
(A) WE WILL REIMBURSE YOU WITHIN 30 DAYS OF RECEIVING YOUR INVOICE FOR ALL COSTS AND EXPENSES WHICH YOU HAVE PROPERLY INCURRED OR TO WHICH YOU HAVE BECOME LIABLE IN CARRYING OUT THE SCHEDULED WORK, ANY AMOUNTS TO BE LIMITED TO THE AMOUNTS APPROVED AS PER PARAGRAPH 3 ABOVE.
(B) SUCH INVOICE SHALL BE ACCOMPANIED BY ALL REASONABLE EVIDENCE
SUPPORTING THE COST AND EXPENDITURE INCURRED BY YOU, AND SHALL B SUBJECT TO AUDIT IF WE DESIRE.
(C) YOU WILL TAKE ALL REASONABLE STEPS TO MITIGATE ANY LIABILITY FOR EXPENDITURE PARTICULARLY BY NEGOTIATING THE LOWEST POSSIBLE CANCELLATION CHARGES FOR MATERIALS ORDERED AND BY DISPOSING OF SUCH MATERIALS SO AS TO MINIMISE OUR LIABILITY HEREUNDER.
(D) ANY DISPUTE OR DIFFERENCE BETWEEN OURSELVES AND YOU IN RELATION HERETO SHALL BE SETTLED IN ACCORDANCE WITH THE PROVI3108
FOR ARBITRATION CONTAINED IN THE CONTRACT.
5. THE RIGHTS, BENEFITS AND OBLIGATIONS HEREUNDER MAY BE ASSIGNED BY US TO A COMPANY OR COMPANIES TO BE ORGANISED FOR THE PURPOSE INTER-ALIA OF OWNING, CONSTRUCTING, OPERATING AND MAINTAINING THE CASTLE PEAK POWER STATION.
6. THIS LETTER SHALL REMAIN IN FORCE UNTIL 31ST MAY 1979 OR SUCH
LATER DATE AS MAY BE AGREED BETWEEN THE BRITISH GOVERNMENT, YOURSELVES AND OURSELVES.
7. IF THIS LETTER CORRECTLY EXPRESSES YOUR UNDERSTANDING OF OUR AGREEMENT, WE WILL BE PLEASED IF YOU WILL SIGN BOTH COPIES OF THIS LETTER AND RETURN ONE OF THEM TO US.
ENDS
MORRISON