TERMS AND CONDITIONS OF QUOTATION

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1 TECHNICAL PROPOSAL QUOT. NO. RFQ NO. Q (REV.0) INQ-D16049-PME _001 Page. 1 OF 9 TERMS AND CONDITIONS OF QUOTATION CUSTOMER : 이테크건설 PROJECT : S-OIL RUC Project Incineration Package2 REQ. NO. : INQ-D16049-PME _001 ISSUED DATE : ( Total 9 pages including this cover sheet ) st ISSUE T.H.KIM J.H.KIM H.J.KIM REV.NO. DATE DESCRIPTION PREPARED CHECKED APPROVED * MANUFACTURING PLACE : 106, Yongyeon-ro, NAM-GU,ULSAN, , KOREA. UBEC Inc.

2 Page. 2 OF 9 C O N T E N T S 1. General and Commercial Terms and Conditions Page 2. CODE AND STANDARD Page 2.1 Code and Standard Page 2.2 Local Regulation Page 2.3 Code & Stamp Page 2.4 Material Code Page Pressure Parts Page Non-pressure Parts Page 2.5 Pipe Code Page 2.6 Fitting Code Page 2.7 Measuring Unit Page 2.8 Materials Chemical Composition Page 3. SCOPE OF WORK AND SUPPLY ,5 Page 3.1 Scope of Work Page Design Page Fabrication Page 3-2 Scope of Supply ,6 Page 3-3 Materials Supplied by the Purchaser Page 3-4 Spare Parts Page 4. INSPECTION AND TEST Page 5. RUST-PROOFING AND PAINTING Page 5.1 Rust Proofing Page 5.2 Painting on External Surface Page 6. PACKING FOR SHIPPING AND TRANSPORTATION Page 7. GUARANTEE Page 8. DOCUMENT SUBMISSION Page 9. DEVIATION AND CLARIFICATION Page 10. ATTACHED DOCUMENT Page

3 Page. 3 OF 9 1. GENERAL AND COMMERCIAL TERMS AND CONDITIONS. GENERAL The Terms and Conditions stated hereunder are based on the inquiry and/or requisition sheets provided by the purchaser, except for deviations and/or exceptions. When this quotation would result in an order, manufacturing will be excuted in accordance with these Terms and Conditions unless otherwise specified by purchase order, which is accepted by us. COMMERCIAL TERMS AND CONDITIONS 1. Price 1-1. Total Amount : Please refer to the attached Price Sheet 1-2. The value added tax is not included in this quoted price and should be reimbursed in addition to this price by the purchaser in case it is levied on. 2. Terms of Payment Down Payment Progress Payment -. 10% of Contract amount will be paid upon purchase order (P/O) -. 30% of Contract amount will be paid upon receipt of main material(plate) at vendor sho Progress Payment -. 50% of Contract amount will be paid upon delivery against an irrevocable Letter of Cred Final Payment -. 10% of Contract amount will be paid upon submitted Manufacturing Data Book. 3. Validity Period This quotation is valid until 06-Nov-16 Thereafter, it is subject to our confirmation on the further extension. 4. Delivery 4-1. Time of Delivery : Delivery Conditions : DDP at JOB SITE ( 현장지정상차도 ) NOTE : Article mark [ ] shall apply to the EQUIPMENT to be supplied by the vendor and/or shall be included in the vendor's scope of supply. Article mark [ ]is not applicable and excluded from the vendor's scope of supply.

4 2. CODE AND STANDARD Page. 4 OF Code and standard [ ] ASME Code sec. VIII, Div.1 (Latest Edition) [ ] ASME Code sec. VIII, Div.2 (Latest Edition) [ ] ASME SEC.IX : Welding & Brazing [ ] ASME SEC.V : NDE [ ] ASTM & ASME SEC. II : Material [ ] ANSI B16.5 for 24" flanges and smaller [ ] ASME Series A16.47 for 26" to 60" [ ] WRC Bulletin 107/297 [ ] ASCE 7-95/UBC-94 : Wind & Seismic [ ] TEMA Class "R", "C" & "B" [ ] API Standards 650 [ ] JPI Code & Standards [ ] JIS B8243 Construction of Pressure Vessel [ ] JIS B8501 Welded Steel Tanks of Oil Storage [ ] JIS B8249 Construction of Heat Exchanger [ ] JIS B Local Regulation [ ] High Pressure Gas Control Law of Korea (HPGCL) [ ] Energy Utilization Rationalization Law of Korea (EURL) [ ] Korea Industrial Safety and Health Law (KISHL) [ ] Government Approval & Inspection in accordance with Local Regulation / Law [ ] Excluded government regulation but provide Documntation only. 2.3 Codes & stamp [ ] Not Required [ ] Required ASME Code Stamp "U" "U2" "S" "PP" "H" ISO Certification OHSAS Materials Code Pressure Parts ASME ASTM KS JIS BS DIN Non-Pressure Parts ASME ASTM KS JIS BS DIN 2.5 Pipe Code ANSI KS JIS BS DIN 2.6 Fitting Code ANSI KS JIS API BS DIN 2.7 Measuring Unit MKS Unit SI Unit US Unit 3. SCOPE OF WORK AND SUPPLY 3.1 Scope of Work Engineering and Design [ ] Thermal and Hydraulic Performance Calculation [ ] Mechnical Strength Calculation in accordance with Applicable Code & Regulation [ ] Fabrication Detail Drawings [ ] Ladder & Platform Drawing (Optional price)

5 3.1.2 Fabrication Page. 5 OF 9 [ ] Fabrication Shop Fab. Job-Site Pre-fabrication at Shop [ ] Post Weld Heat Treatment or Stress Relief per Code and Spec. [ ] 3rd party Inspection (The cost and expenses for TPIA shall be done by the Purchaser.) [ ] Insulation Work [ ] Assembly of internal at shop Tray Trial Assembly at Shop Demister Tray Assembly Top Flow Distributors Wire mesh Screens Bed Support Grating for Packing Support Catalyst Support Support Plate for packing Support Internal coil w / Support Hold Down Plates Outlet collect Packing Perforated Cylinder [ ] Running Test for Agitator [ ] Supervising Work and Fee at Shop & Field [ ] Internal Lining & Coating P.T.F.E Lining 내산페인트 Item : STK [ ] Refractory Lining works [ ] Field construction and work Supervision for Assembly Work Refractory Work Supervision for Erection Work Painting Work (at Field) Temporary Work Attaching Work for Internals and Externals Foundation Work Utilities for Site Works (Water, Electric, Air etc.) Equipment Erection Work Installation Work of Platform and Ladder Insulation Work 3.2 Scope of supply [ ] Equipment proper with standard accessories [ ] Skirt, Saddles, Legs, Lugs [ ] Nozzles, Manhole & Hand hole [ ] Internals Removable Part & Attachments Trays Demister Packing & Packing Support Downcomer Bars Support Grid & Bed Limiter Downcomer bottom Floors Distributor Seal Pan Hold Down Grating Perforated Plate Re-Distributor External Coils Gas Injection plate Chimney Tray Bed Support Outlet Collector Internal Gas Riser Pipe Filter Elements Wire Mesh Screen Internal ladder rungs for maintenance Internal flange with bolt, nut and gasket Internal Pipe with Support Support Rings, Lugs for Tray, Demister, Packing and Others Support for Reboiller Internal Baffle Plate w/support Vortex Breaker Bearing Pad For Support Internal Baffle with Support Internal Conical Support rings for all internals Expansion joint Sealing Strip Tie Rod & Spacer Setting bolts & nuts for stacked heat exchangers Baffle plate Shim plate(3t,3t,6t) for stacked heat exchangers Jack Screw Impingement plate, Weir plate, Stilling baffle Dummy Rod Bolts/nuts and Gaskets between nozzles for stacked heat exchangers Pulling eye bolts for tube sheet of removable bundles with shoulder pug

6 [ ] External Attachments Page. 6 OF 9 Support clips for platform, ladder & piping Support ring & clip for insulation Fire Proofing lugs on skirt In / Out side and uninsulated bottom head Earth Lug Name plate with brackets Lifting lugs and tailing lugs Stiffener Rings, if Any Top Angle Reinforcing beam of skirt base block for equipment erection [ ] Platform and Ladder <<Optional price per ton : KRW 6,000,000 / ton>> Platform Packing (Wooden skid type) Ladder Grating (Zinc Galvanized) Handrail Checke Plate Type Spiral Stairway Painting (Primer coat only for C.S part) [ ] Davit Top davit Manhole Davit or Handhole Hinge Heat Exchanger Davit [ ] Others Anchor or Setting Bolts and Nuts (if required) Sliding Plate, Liner and Lubrite Plate (if any) Blind Flange and its Bolt, Nut and Gasket for Blind Nozzle Companion Flange with Bolt, Nut and Gasket Template and Gauge Plate for Anchor bolt (if required) Welding Rod for Site Work Special Tools, Jigs and Fittings for Owner's field Erection Works, if Any Steam Trace Coil with Coil Supports Valves and Gauges Test Ring for Heat Exchanger (When Required) Sight Glass (if any) Spray Nozzle Bird screen Inter Connecting Duct Vent/Drain Nozzle on Tube Sheet (to be Vertical Exchanger) Dummy shell [ ] Agitator for Drum ( Maker ; ) Motor Mechanical Seal Agitator with Impeller Invertors [ ] Equipment Accessories Flame Arrester Heating Coil Breather Valve Emergency cover Gauge Hatch Level Gauge Suction Heater 3.3 Materials supply by the purchaser [ ] No supply by the purchaser [ ] The following materials to be supplied by the purchaser [ ] Refer to our attached "Quotation condition sheet"

7 3.4 Spare parts Page. 7 OF 9 [ ] Not to be supplied [ ] Supply as defined below Part Name Construction & Commissioning spare part Two(2) year operation spare part as an option [ ] Supply of Gasket Gasket for Girth Flange Gasket for Manhole Gasket for Blind Nozzle Gasket for Spare Nozzle Gasket for Hand hole Gasket for Agitator conn. Flange [ ] Supply of Bolt and Nut Bolt and Nut for Girth Flange 200% 200% ( Min sets) 200% 200% ( Min sets) Bolt and Nut Manhole and Handhole 10% ( Min 2 sets) 10% ( Min 2 sets) Bolt and Nut for Blind Nozzle Flange 10% ( Min 2 sets) 10% ( Min 2 sets) Bolt and Nut for Agitator conn. Flange Bolt and Nut for F.Bearing & M.Setting Bolt and Nut for Internal Flange [ ] Supply of others Sight Glass Mechanical Seal Tubes 4. INSPECTION AND TEST [ ] The inspection and test shall be executed in accordance with the application codes and standards The cost and expenses for TPIA shall be done by the Purchaser. Radiographic & Ultrasonic Test per Code & Spec. Impact test per Code, if required Magnetic Particle & Liquid Penetration Test per Code Hardness Test per Code & Spec. Hydrostatic test per Code & Spec. Required Inspection per Code and Spec. Material Certificates Raw Material inspection included impact test per Code & Spec. Material identification Welder's & welding operator's performance qualification test per Code & Spec. Welding procedure qualification test per Code & Spec. Edge preparation inspection per Code & Spec. Liquid penetrant examination and/or Magnetic particle examination per Code & Spec. Visual and dimensional inspection Leakage test per Code & Spec. Vacuum Test per Code & Spec. Pneumatic test on reinforcement pad per Code & Spec. Rust prevention & painting inspection per Code & Spec. Mechanical running test for agitator per Code & Spec.

8 5. RUST-PROOFING AND PAINTING Page. 8 OF Rust Proofing [ ] Rust prevention of inner surface [ ] VCI 309 or Eq.( Volatile Corrosion Inhibitors ) [ ] Desiccant [ ] Internal sanding with coating [ ] N2 gas purge [ ] Buffing for channel inside of #80 #200 #250 #300 #350 #400 [ ] Electric Polishing [ ] Surface preparation of outer surface for c.s part and low alloy steel parts SSPC-SP-3 Power tool cleaning SSPC-SP-6 Commercial blast cleaning SSPC-SP-10 Near white blast cleaning To be done as per the customer's specification [ ] Surface preparation of surface for stainless steel parts Pickling or Acid cleaning Passivation 5.2 Painting of outer surface [ ] Rust-proof painting of coats Inorganic zinc primer (D.F.T 75 μm ) To be painted as per the customer's specification (Spec. no. : SP-0006-R0) [ ] Finish painting of coats Not to be painted To be painted as per the customer's specification (Spec. no. : SP-0006-R0) 6. PACKING FOR SHIPPING AND TRANSPORTATION [ ] Nozzle opening Blanked and protected with steel cover Blanked and protected with wooden cover [ ] Body Packed in case Packed in crate Packed on skid (Wooden Skid) [ ] Spare parts Packed in case Packed in crate 7. GUARANTEE [ ] Manufacturer will guarantee the equipment to be free from defective materials, workmanship and faulty design for a period of 12 months after the equipment has been placed in operating, or 24 months after date of shipment from manufacturer's work shop, whichever comes earlier. And such defect proved to be clearly attributable to the manufacturer's responsibility after clarification between the purchaser and manufacturer, the manufacturer will supply free of charge, only replacing parts of damaged parts included in the manufacture's scope of supply of Section 3 basis and, if necessary, dispatch, free of charge, a supervisor required for the repair work.

9 8. DOCUMENTS TO BE SUBMITTED AFTER CONTRACT / AFTER COMPLETION OF MANUFACTURING Page. 9 OF 9 [ ] Reference to job spec. & Vendor data requirement list [ ] Fabrication Procedure [ ] Loading Data [ ] Assembly Drawing [ ] Fabrication Detail Drawing [ ] Parts Drawing [ ] Strength Calculation [ ] Spare Parts List [ ] Welding Procedure < Including P.Q.R > [ ] Inspection and Test Procedure [ ] Inspection and Test Record [ ] Inspection Certificate [ ] Manufacturing Schedule [ ] Packing List [ ] Shipping Schedule [ ] Sub-vendor List 9. DEVIATIONS FROM THE CUSTOMER'S SPECIFICATION [ ] There is no deviations from the customer's specification. [ ] Refer to attached Deviation and clarification list". 10. ATTACHED DOCUMENT [ ] Deviation and Clarification List [ ] Mechanical Data Sheet [ ] Preliminary Fabrication schedule [ ] Spare Part List [ ] Design Data For Quotation 11. OUT OF SCOPE [ ] Thermal design [ ] Foundation work [ ] Erection work [ ] Field painting [ ] Insulation material and work [ ] Fire protection material and work [ ] Refractory Lining works