9. pants

For any logistic support,

supplies or service not provided free of charge in accordance

with STANAG 3113 or by mutual consent, the relevant authorities

of each Supplying Participant and each Receiving Participant can

negotiate a 'reimbursable transaction' or payment in 'equal

value' to be defined in monetary terms only. Accordingly, each

Requesting Participant will pay each Supplying Participant in

accordance with either paragraph 9.a, or 9.b below as well as the

more general provisions stated in the remainder of this

Annex:

a. Reimbursable Transactions. The

Receiving Participant will pay outstanding balances no later than

30 days after receipt of invoice in the currency specified by the

Supplying Participant. In pricing reimbursable transactions, the

Participants accept the following principles:

(1) The NSE of the Receiving Participant and the Supplying

Participant will establish a price.

(2) When a definitive price is not established in advance of the

order, the order will stipulate a maximum limitation of liability

for the Receiving Participant who will be ordering the logistic

support, supplies or service, pending negotiation of a final

price. The NSEs of the Participants will promptly enter into

negotiations to establish a final price, which may under certain

circumstances exceed the initial maximum limitation of liability.

The burden of justifying the increase will rest with the

Participant seeking to exceed the maximum. In the event that the

relevant authorities of the Participants have difficulty in

negotiating a final price, they may consider

replacement-in-kind.

(3) At the time accounts are settled, neither Participant will

make or retain any profit resulting from the transactions being

settled.

(4) In the case of specific acquisitions by the Supplying

Participant from local contractors on behalf of the Receiving

Partici

pant, the cost will be no less favourable than the

price charged to the Supplying Participant for identical support,

supplies and services. However, the price charged may take into

account differentials due to delivery schedules, points of

delivery and other similar considerations.

(5) In the case of the transfer from the Supplying Participant's

own resources, the amount paid by the Receiving Participant for

logistic support, supplies and services provided will be the same

as the Supplying Participant charges its own forces as of the

date the order is accepted.

b. Equal Value. Participants will maintain records of all

transactions, and the Requesting Participant will pay the

Supplying Participant, by transferring to the latter's forces,

logistic support, supplies, or services that are equal in value

to the logistic support, supplies, or services delivered or

performed by the Requesting Participant and which are

satisfactory to the Supplying Participant. If the Requesting

Participant does not pay in 'equal value' within the terms of the

exchange schedule, approved or in effect at the time of the

original transaction (with time frames which may not exceed six

(6) months from the date of the original transaction), the

transaction will be deemed a reimbursable transaction and

governed by Sub-Paragraph 9.a above.