GAIL (India) Limited MECON LIMITED

The term "Force Majeures" as employed herein shall mean actsof God, earthquake, war (declared or undeclared), revolts, riots,fires, floods, rebellions, explosions, hurricane, sabotage, civilcommotions and acts and regulations of respective Governmentof the two parties, namely the EMPLOYER and theCONTRACTOR.Upon the occurrence of such cause(s) and upon its termination,the party alleging that it has been rendered unable as aforesaidthereby, shall notify the other party in writing immediately but notlater than 72 (Seventy-two) hours of the alleged beginning andending thereof giving full particulars and satisfactory evidence insupport of its claim.Time for performance of the relative obligation suspended by theForce Majeures shall then stand extended by the period for whichsuch cause lasts.If deliveries of bought out items and/or works to be executed bythe CONTRACTOR are suspended by Force Majeure conditionslasting for more than 2 (two) months the EMPLOYER shall havethe option to terminate the CONTRACT or re-negotiate thecontract provisions.26.2 OUTBREAK OF WAR26.2.1 If during the currency of the CONTRACT there shall be anout-break of war whether declared or not, in that part of the Worldwhich whether financially or otherwise materially affect theexecution of the WORK the CONTRACTOR shall unless anduntil the CONTRACT is terminated under the provisions in thisclause continue to use his best endeavour to complete theexecution of the WORK, provided always that the EMPLOYERshall be entitled, at any time after such out-break of war toterminate or re-negotiate the CONTRACT by giving notice inwriting to the CONTRACTOR and upon such notice being giventhe CONTRACT shall, save as to the rights of the parties underthis clause and to the operation of the clauses entitled settlementof Disputes and Arbitration hereof, be terminated but withoutprejudice to the right of either party in respect of any antecedentbreach thereof.26.2.2 If the CONTRACT shall be terminated under the provisions of theabove clause, the CONTRACTOR shall with all reasonablediligence remove from the SITE all the CONTRACTOR'sequipment and shall give similar facilities to hisSUB-CONTRACTORS to do so.27 Price reductionschedule:27.1 Time is the essence of the CONTRACT. In case theCONTRACTOR fails to complete the WORK within the stipulatedperiod, then, unless such failure is due to Force Majeure asdefined in Clause 26 here above or due to EMPLOYER'sdefaults, the Total Contract price shall be reduced by ½ % of thetotal Contract Price per complete week of delay or part thereofsubject to a maximum of 5 % of the Total Contract Price, by wayof reduction in price for delay and not as penalty. The saidamount will be recovered from amount due to the Contractor/Contractor’s Contract Performance Security payable on demand.