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 Participant, 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.