Common use of Pricing Principles Clause in Contracts

Pricing Principles. 3.1 The amount determined for the commissions for the domestic materials procurement services and the standardized charges therefor under this Agreement shall not exceed 3% of the contract volume of the relevant materials procurement. 3.2 The amount determined for the commissions for the imported materials procurement services and the standardized charges therefor under this Agreement shall not exceed 1% of the contract volume of the relevant materials procurement. 3.3 The pricing criteria in respect of part of the direct purchase of materials sold by Netcom Group to CNC China as set forth under this Agreement shall be governed by the principle in this provision and in the following order: those that are fixed by the State shall follow the government-fixed price; those that have the government guidance price shall follow the said guidance price; those that have no fixed price nor government guidance price yet have a market price shall follow the market price; those that none of the above said is applicable shall follow the pricing method agreed upon by both Parties, however, the said pricing method should be calculated with regard to the reasonable cost and reasonable profit of the service, whereby “reasonable cost” means the cost agreed by both Parties. The “government-fixed price” follows the Pricing Law of the People’s Republic of China, which is set by the governmental pricing department or other related departments based on the pricing limits and range. The “government guidance price” follows the Pricing Law of the People’s Republic of China, which provides guidance to business operators by the governmental pricing department or other related departments based on the pricing limits, basic price range and its floating range. The “market price” means the rate determined by the business operator and attained through market competition. The market price shall be determined by the following order: (1) the rate charged by any independent third party providing the same kind of service in the same or surrounding area under normal situation; or (2) the rate charged by any independent third party providing the same kind of service within the PRC under normal situation. 3.4 The prices and/or criteria of pricing in respect of the commission for the related storage, warehousing and transportation in relation to the materials procurement services and the direct materials procurement should be determined according to the market prices. The market prices referred herein means the prices set out by the business operators on their own through the market competitions.and should be set out in the following sequence: (1) the prices charged by an independent third party in respect of providing those services under normal circumstances of transaction in its region of provision or other nearby regions; or (2) the prices charges by an independent third party in respect of providing those service under normal circumstances of transaction in the territory of PRC. 3.5 The Parties can enter into a separate execution document, which should stipulate clearly the actual services or materials in which CNC China needs at that time and they should also stipulate the binding principles, criteria and conditions under this Agreement. 3.6 The specific amount of service charge agreed upon under this Agreement shall from time to time be calculated by the accounting principles applicable in the PRC (if applicable). 3.7 Both Parties shall, before December 31 of every calendar year, conduct a review on the price of every item of services and facilities stated in this Agreement for the next accounting year (if necessary).

Pricing Principles. 3.1 The amount determined for pricing of the commissions for the domestic materials procurement ancillary telecommunications services and the standardized charges therefor and/or charging rate under this Agreement shall not exceed 3% of the contract volume of the relevant materials procurement. 3.2 The amount determined for the commissions for the imported materials procurement services and the standardized charges therefor under this Agreement shall not exceed 1% of the contract volume of the relevant materials procurement. 3.3 The pricing criteria in respect of part of the direct purchase of materials sold by Netcom Group to CNC China as set forth under this Framework Agreement shall be governed by determined with reference to the principle principles and order set forth in this provision and in the following orderarticle: those that are fixed by the State shall follow the government-fixed priceprice if there is any; those that have the government guidance price shall follow the said guidance pricegovernment-recommended price if there is any; those that have follow the market price if there is no government-fixed price nor government guidance government-recommended price; if there is no government-fixed price, government-recommended price yet have a nor market price, the price shall follow be determined through consultation by both parties. However, the market price; those that none agreed price should be composed of the above said is applicable shall follow reasonable costs and the pricing method agreed upon by both Partiesreasonable profits, however, among which the said pricing method should be calculated with regard “reasonable costs” refers to the reasonable cost and reasonable profit of the service, whereby “reasonable cost” means the cost costs agreed by both Partiesparties after consultation. The “government-fixed price” follows in this article refers to the Pricing price set up by the price administrations or other related departments according to the Price Law of the People’s Republic of China, which is set by and the governmental pricing department or other related departments based on authority and scope of the pricing limits and rangepricing. The “government guidance government-recommended price” follows in this article refers to the Pricing price set up by the operators according to the Price Law of the People’s Republic of China, which provides guidance to business operators and guided by the governmental pricing department benchmark price and its floating rate provided by the price administrations or other related departments based on according to the pricing limits, basic price range authority and its floating rangescope. The “market price” means in this article refers to the rate determined price set up by the business operator operators and attained formed through market competition. The market price shall be is determined by according to the following order: (1) the rate charged by any independent third party providing the same kind of service in the same or surrounding area under normal situation; or (2) the rate charged by any independent third party providing the same kind of service within the PRC under normal situation. 3.4 The prices and/or criteria of pricing in respect of the commission for the related storage, warehousing and transportation in relation to the materials procurement services and the direct materials procurement should be determined according to the market prices. The market prices referred herein means the prices set out by the business operators on their own through the market competitions.and should be set out in the following sequence: (1) the prices price charged by an independent third party in respect of providing those services the service under normal circumstances of transaction trading conditions in its region of the service provision areas or other nearby regionsthe neighborhoods; or (2) the prices charges price charged by an independent third party in respect of providing those the service under normal circumstances of transaction trading conditions in the territory of PRC. 3.5 The Parties can enter into a separate execution document, which should stipulate clearly the actual services or materials in which CNC China needs at that time and they should also stipulate the binding principles, criteria and conditions under this Agreement. 3.6 3.2 The specific amount of service charge agreed upon under this Agreement Framework Agreement, shall from time to time be calculated by the in accordance with related accounting principles applicable in of the PRC (if applicable)) which are applicable from time to time. 3.7 3.3 Both Parties shall, before December 31 of every calendar year, parties shall conduct a review on the price pricing standard of every item next fiscal year for each service and facility which are provided under this Framework Agreement before December 31 of services and facilities stated in this Agreement for the next accounting each year (if necessary). 3.4 It is estimated that both parties will formulate concrete implementation document from time to time on providing related service according to the needs; this concrete implementation document should record the specific service needed by Party B at that time, as well as the binding principles, guide lines, terms and conditions of this Framework Agreement.

Pricing Principles. 3.1 The amount determined for the commissions for the domestic materials procurement services and the standardized charges therefor under this Agreement shall not exceed 3% of the contract volume of the relevant materials procurement. 3.2 The amount determined for the commissions for the imported materials procurement services and the standardized charges therefor under this Agreement shall not exceed 1% of the contract volume of the relevant materials procurement. 3.3 The pricing criteria in respect of part of the direct purchase of materials sold by Netcom Group Party B to CNC China Party A as set forth under this Agreement shall be governed by the principle in this provision and in the following order: those that are fixed by the State shall follow the government-fixed price; those that have the government guidance price shall follow the said guidance price; those that have no fixed price nor government guidance price yet have a market price shall follow the market price; those that none of the above said is applicable shall follow the pricing method agreed upon by both Partiesparties, however, the said pricing method should be calculated with regard to the reasonable cost and reasonable profit of the service, whereby “"reasonable cost” " means the cost agreed by both Partiesparties. The “government-fixed price” "State Rate" follows the Pricing Law of the People’s 's Republic of China, which is set by the governmental pricing department or other related departments based on the pricing limits and range. The “"government guidance price” " follows the Pricing Law of the People’s 's Republic of China, which provides guidance to business operators by the governmental pricing department or other related departments based on the pricing limits, basic price range and its floating range. The “market price” means the rate determined by the business operator and attained through market competition. The market price shall be determined by the following order: (1) the rate charged by any independent third party providing the same kind of service in the same or surrounding area under normal situation; or (2) the rate charged by any independent third party providing the same kind of service within the PRC under normal situation. 3.4 The prices and/or criteria of pricing in respect of the commission for the related storage, warehousing and transportation in relation to the materials procurement services and the direct materials procurement should be determined according to the market prices. The market prices referred herein means the prices set out by the business operators on their own through the market competitions.and should be set out in the following sequence: (1) the prices charged by an independent third party in respect of providing those services under normal circumstances of transaction in its region of provision or other nearby regions; or (2) the prices charges by an independent third party in respect of providing those service under normal circumstances of transaction in the territory of PRC. 3.5 The Parties can enter into a separate execution document, which should stipulate clearly the actual services or materials in which CNC China needs at that time and they should also stipulate the binding principles, criteria and conditions under this Agreement. 3.6 The specific amount of service charge agreed upon under this Agreement shall from time to time be calculated by the accounting principles applicable in the PRC (if applicable). 3.7 Both Parties shall, before December 31 of every calendar year, conduct a review on the price of every item of services and facilities stated in this Agreement for the next accounting year (if necessary).

Pricing Principles. 3.1 The amount determined pricing and/or charging standards for the commissions for the domestic materials procurement support services and the standardized charges therefor under this Framework Agreement shall not exceed 3% of follow the contract volume of the relevant materials procurement. 3.2 The amount determined for the commissions for the imported materials procurement services principles and the standardized charges therefor under this Agreement shall not exceed 1% of the contract volume of the relevant materials procurement. 3.3 The pricing criteria in respect of part of the direct purchase of materials sold by Netcom Group to CNC China as set forth under this Agreement shall be governed by the principle procedures stipulated in this provision and in clause. Where the following order: those that are Government fixes a price for such a service, the price fixed by the State Government shall follow be followed. Where the Government recommends (or sets a guidance price) a price for such a service, the price shall be determined with the reference to the price recommended by the Government. Where there is neither a government-fixed price; those that have price nor a government-recommended price but there is a market-based price for such a service, the government guidance price shall follow be determined with reference to the said guidance market-based price; those that have no . Where there is neither a government-fixed price nor government guidance price yet have a market price shall follow government-recommended price, nor the market market-based price; those that none of the above said is applicable shall follow the pricing method agreed upon by both Parties, however, the said pricing method should be calculated with regard to the reasonable cost and reasonable profit of the service, whereby “reasonable cost” means the cost agreed by both Parties. The “government-fixed price” follows the Pricing Law of the People’s Republic of China, which is set by the governmental pricing department or other related departments based on the pricing limits and range. The “government guidance price” follows the Pricing Law of the People’s Republic of China, which provides guidance to business operators by the governmental pricing department or other related departments based on the pricing limits, basic price range and its floating range. The “market price” means the rate determined by the business operator and attained through market competition. The market price shall be determined by the following orderParties through negotiations. The negotiated price shall be determined on a reasonable cost plus reasonable profit basis. The reasonable cost shall be the cost agreed by the Parties through negotiations. The government-fixed price referred in this clause is the price fixed by the price administration authorities of the Government or other related agencies within their pricing purview and scope in accordance with the provisions of the Price Law of the PRC. The government-recommended price (or government-guidance price) referred in this clause is a basic price and floating ranges set by the price administration authorities of the Government or other related agencies within their pricing purview and scope in accordance with the provisions of the Price Law of the PRC. The enterprises could, within the limits of the guidance, make their own decisions on prices. The market-based price referred in this clause is the price set by the enterprises with consideration to the competition in the market. The market-based price shall be determined in the follow procedures: (1) the rate price charged by any the independent third party for providing such a service at the same kind of service place or in the same or surrounding area neighbouring areas under normal situationmarket conditions; or (2) the rate price charged by any the independent third party for providing the same kind of such a service within the PRC under normal situation. 3.4 The prices and/or criteria of pricing in respect of the commission for the related storage, warehousing and transportation in relation to the materials procurement services and the direct materials procurement should be determined according to the market prices. The market prices referred herein means the prices set out by the business operators on their own through the market competitions.and should be set out in the following sequence: (1) the prices charged by an independent third party in respect of providing those services under normal circumstances of transaction in its region of provision or other nearby regions; or (2) the prices charges by an independent third party in respect of providing those service under normal circumstances of transaction in the territory of PRC.China under normal market conditions; 3.5 The Parties can enter into a separate execution document, which should stipulate clearly the actual services or materials in which CNC China needs at that time and they should also stipulate the binding principles, criteria and conditions under this Agreement. 3.6 3.2 The specific amount of service charge agreed upon fees under this Framework Agreement shall from time to time be calculated by in accordance with the accounting principles applicable in standards of the PRC (if applicable)) from time to time. 3.7 Both Parties shall, 3.3 Party A and Party B shall audit the pricing standards for the next financial year for every service and facility provided under this Framework Agreement before December 31 of every calendar year, conduct a review on the price of every item of services and facilities stated in this Agreement for the next accounting year (if necessary). 3.4 It is expected that Party A and Party B shall conclude specific implementation agreements for related services from time to time as necessary. This specific implementation agreements shall identify the specific services required by Party B and contain provisions in relation to the binding principles, standards, terms and conditions of this Framework Agreement.