Common use of Life cycle cost Clause in Contracts

Life cycle cost. For each item of Goods, Supplier shall provide a document called “Life Cycle Cost” (hereinafter “LCC”) at the latest on the date of the Contract entering into force. This document shall specify all costs related to maintenance operations and shall be registered in the data base selected by Purchaser. It shall form part of the contractual documents of the Contract. Supplier shall, in the LCC, make a commitment on the following parameters, which shall be defined in the Contract: - corrective maintenance: Reliability rate (medium kilometer between each failure or MKBF); - Medium Time To Repair the Equipment (MTTR) and raw medium cost (price of each partmultiplied by its own reliability rate) or a fixed repair price; - preventive maintenance: medium cost per kilometer on 2 years,5 years and 10 years; - costs of main maintenance operations and recommended frequency for those main maintenance operations. A LCC review shall be made by the Parties two (2) years after the commissioning by the Customer and before the end of warranty period defined in Article 16 (“Warranty”) herebove, and then every two (2) years to assess the consumption, the frequency of spare parts changes, the unit price and mounting and dismounting time. If pursuant to these reviews it appears that actual maintenance cost on the elapsed years is for the same period greater than the LCC initially submitted, Supplier shall: - analyze the causes of this gap; - implement an action plan to remedy this gap; - bear costs related to this action plan if the gap is attributable to Supplier. The price for the parts and spare parts specified in the LCC shall be a maximum price for those parts in the after-series phase.

Life cycle cost. For each item of Goods, Supplier shall provide a document called “Life Cycle Cost” (hereinafter “LCC”) at the latest on the date of the Contract entering into force. This document shall specify all costs related to maintenance operations and shall be registered in the data base selected by Purchaser. It shall form part of the contractual documents of the Contract. . (i) Supplier shall, in the LCC, make a commitment on the following parameters, which shall be defined in the Contract: - : (ii) corrective maintenance: Reliability rate (medium kilometer between each failure or MKBF); - Medium Time To Repair the Equipment (MTTR) and raw medium cost (price of each partmultiplied part multiplied by its own reliability rate) or a fixed repair price; - ; (iii) preventive maintenance: medium cost per kilometer on 2 years,5 years and 10 years; - ; (iv) costs of main maintenance operations and recommended frequency for those main maintenance operations. A LCC review shall be made by the Parties two (2) years after the commissioning by the Customer and before the end of warranty period defined in Article 16 (“Warranty”) herebove), and then every two (2) years to assess the consumption, the frequency of spare parts changes, the unit price and mounting and dismounting time. If pursuant to these reviews it appears that actual maintenance cost on the elapsed years is for the same period greater than the LCC initially submitted, Supplier shall: - analyze : (i) analyse the causes of this gap; - ; (ii) implement an action plan to remedy this gap; - ; (iii) bear costs related to this action plan if the gap is attributable to Supplier. The price for the parts and spare parts specified in the LCC shall be a maximum price for those parts in the after-series phase.

Life cycle cost. For each item of Goods, Supplier shall provide a document called “Life Cycle Cost” (hereinafter “LCC”) at the latest on the date of the Contract entering into force. This document shall specify all costs related to maintenance operations and shall be registered in the data base selected by Purchaser. It shall form part of the contractual documents of the Contract. Supplier shall, in the LCC, make a commitment on the following parameters, which shall be defined in the Contract: - corrective maintenance: Reliability rate (medium kilometer between each failure or MKBF); - Medium Time To Repair the Equipment (MTTR) and raw medium cost (price of each partmultiplied part multiplied by its own reliability rate) or a fixed repair price; - preventive maintenance: medium cost per kilometer on 2 years,5 years and 10 years; - costs of main maintenance operations and recommended frequency for those main maintenance operations. A LCC review shall be made by the Parties two (2) years after the commissioning by the Customer and before the end of warranty period defined in Article 16 (“Warranty”) herebove, and then every two (2) years to assess the consumption, the frequency of spare parts changes, the unit price and mounting and dismounting time. If pursuant to these reviews it appears that actual maintenance cost on the elapsed years year is for the same period greater than the LCC initially submitted, Supplier shall: - analyze the causes of this gap; - implement an action plan to remedy this gap; - bear costs related to this action plan if the gap is attributable to Supplier. The price for the parts and spare parts specified in the LCC shall be a maximum price for those parts in the after-series phase.

Life cycle cost. For each item of Goods, Supplier shall provide a document called “Life Cycle Cost” (hereinafter “LCC”) at the latest on the date of the Contract entering into force. This document shall specify all costs related to maintenance operations and shall be registered in the data base selected by Purchaser. It shall form part of the contractual documents of the Contract. Supplier shall, in the LCC, make a commitment on the following parameters, which shall be defined in the Contract: - corrective maintenance: Reliability rate (medium kilometer between each failure or MKBF); - Medium Time To Repair the Equipment (MTTR) and raw medium cost (price of each partmultiplied by its own reliability rate) or a ora fixed repair price; - preventive maintenance: medium cost per kilometer perkilometer on 2 years,5 years and 10 years; - costs of main maintenance operations and recommended frequency for those main maintenance operations. A LCC review shall be made by the Parties two (2) years after the commissioning by the Customer and before the end of warranty period defined in Article 16 (“Warranty”) herebove, and then every two (2) years to assess the consumption, the frequency of spare parts changes, the unit price and mounting and dismounting time. If pursuant to pursuantto these reviews it appears that actual maintenance cost on the elapsed years actualmaintenance xxxxxx theelapsedyears is for the same period greater than the LCC initially submitted, Supplier shall: - analyze the causes of this gap; - implement an implementan action plan to remedy this gap; - bear costs related to this action plan if the gap is gapis attributable to Supplier. The price for the parts and spare parts specified in the LCC shall be a maximum price for those parts in the after-series phase.

Life cycle cost. For each item of Goods, Supplier shall provide a document called “Life Cycle Cost” (hereinafter “LCC”) at the latest on the date of the Contract entering into force. This document shall specify all costs related to maintenance operations and shall be registered in the data base selected by Purchaser. It shall form part of the contractual documents of the Contract. Supplier shall, in the LCC, make a commitment on the following parameters, which shall be defined in the Contract: - corrective -corrective maintenance: Reliability rate (medium kilometer between each failure or MKBF); - Medium -Medium Time To Repair the Equipment (MTTR) and raw medium cost (price of each partmultiplied part multiplied by its own reliability rate) or a fixed repair price; - preventive -preventive maintenance: medium cost per kilometer on 2 years,5 years and 10 years; - costs -costs of main maintenance operations and recommended frequency for those main maintenance operations. A LCC review shall be made by the Parties two (2) years after the commissioning by the Customer and before the end of warranty period defined in Article 16 (“Warranty”) herebovehereabove, and then every two (2) years to assess the consumption, the frequency of spare parts changes, the unit price and mounting and dismounting time. If pursuant to these reviews it appears that actual maintenance cost on the elapsed years is for the same period greater than the LCC initially submitted, Supplier shall: - analyze analyse the causes of this gap; - implement an action plan to remedy this gap; - bear costs related to this action plan if the gap is attributable to Supplier. The price for the parts and spare parts specified in the LCC shall be a maximum price for those parts in the after-after- series phase.