(b) a result of any Works being used by the Employer:

(i) for a purpose other than that indicated by, or reasonably to be inferred
from, the Contract, or
(ii) in conjunction with any thing not supplied by the Contractor, unless such
use was disclosed to the Contractor prior to the Base Date or is stated
in the Contract.

The Contractor shall indemnify and hold the Employer harmless against and from any
other claim which arises out of or in relation to (i) the Contractor's design,
manufacture, construction or execution of the Works, (ii) the use of Contractor's
Equipment, or (iii) the proper use of the Works.

If a Party is entitled to be indemnified under this Sub-Clause, the indemnifying Party

may (at its cost) conduct negotiations for the settlement of the claim, and any litigation
or arbitration which may arise from it. The other Party shall, at the request and cost of
the indemnifying Party, assist in contesting the claim. This other Party (and its
Personnel) shall not make any admission which might be prejudicial to the
indemnifying Party, unless the indemnifying Party failed to take over the conduct of any
negotiations, litigation or arbitration upon being requested to do so by such other
Party.

17.6
Limitation of Liability Neither Party shall be liable to the other Party for loss of use of any Works, loss of
profit, loss of any contract or for any indirect or consequential loss or damage which
may be suffered by the other Party in connection with the Contract, other than under
Sub-Clause 16.4 [Payment on Termination] and Sub-Clause 17.1 [Indemnities].

The total liability of the Contractor to the Employer, under or in connection with the
Contract other than under Sub-Clause 4.19 [Electricity, Water and Gas], Sub-Clause
4.20 [Employer's Equipment and Free-Issue Material], Sub-Clause 17.1 [Indemnities]
and Sub-Clause 17.5 [Intellectual and Industrial Property Rights], shall not exceed the
sum stated in the Particular Conditions or (if a sum is not so stated) the Accepted
Contract Amount.

This Sub-Clause shall not limit liability in any case of fraud, deliberate default or
reckless misconduct by the defaulting Party.
ONLY FOR STATKRAFT A.S. NORWAY UNTIL END 2009

18.1
18
Insurance

General Requirements In this Clause, "insuring Party" means, for each type of insurance, the Party responsible
for Insurances for effecting and maintaining the insurance specified in the relevant Sub-Clause.

Wherever the Contractor is the insuring Party, each insurance shall be effected with
insurers and in terms approved by the Employer. These terms shall be consistent with
any terms agreed by both Parties before the date of the Letter of Acceptance. This
agreement of terms shall take precedence over the provisions of this Clause.

Wherever the Employer is the insuring Party, each insurance shall be effected with
insurers and in terms consistent with the details annexed to the Particular Conditions.

If a policy is required to indemnify joint insured, the cover shall apply separately to
each insured as though a separate policy had been issued for each of the joint
54 Conditions of Contract for Plant and Design-Build
 insured. If a policy indemnifies additional joint insured, namely in addition to the
insured specified in this Clause, (i) the Contractor shall act under the policy on behalf
of these additional joint insured except that the Employer shall act for Employer's
Personnel, (ii) additional joint insured shall not be entitled to receive payments directly
from the insurer or to have any other direct dealings with the insurer, and (iii) the
insuring Party shall require all additional joint insured to comply with the conditions
stipulated in the policy.

Each policy insuring against loss or damage shall provide for payments to be made in
the currencies required to rectify the loss or damage. Payments received from insurers
shall be used for the rectification of the loss or damage.

The relevant insuring Party shall, within the respective periods stated in the Appendix
to Tender (calculated from the Commencement Date), submit to the other Party:

(a) evidence that the insurances described in this Clause have been effected, and
(b) copies of the policies for the insurances described in Sub-Clause 18.2
[Insurance for Works and Contractor's Equipment] and Sub-Clause 18.3
[Insurance against Injury to Persons and Damage to Property].

When each premium is paid, the insuring Party shall submit evidence of payment to
the other Party. Whenever evidence or policies are submitted, the insuring Party shall
also give notice to the Engineer.

Each Party shall comply with the conditions stipulated in each of the insurance
policies. The insuring Party shall keep the insurers informed of any relevant changes
to the execution of the Works and ensure that insurance is maintained in accordance
with this Clause.

Neither Party shall make any material alteration to the terms of any insurance without the
prior approval of the other Party. If an insurer makes (or attempts to make) any alteration,
the Party first notified by the insurer shall promptly give notice to the other Party.

If the insuring Party fails to effect and keep in force any of the insurances it is required to
effect and maintain under the Contract, or fails to provide satisfactory evidence and
copies of policies in accordance with this Sub-Clause, the other Party may (at its option
and without prejudice to any other right or remedy) effect insurance for the relevant
ONLY FOR STATKRAFT A.S. NORWAY UNTIL END 2009

coverage and pay the premiums due. The insuring Party shall pay the amount of these
premiums to the other Party, and the Contract Price shall be adjusted accordingly.

Nothing in this Clause limits the obligations, liabilities or responsibilities of the

Contractor or the Employer, under the other terms of the Contract or otherwise. Any
amounts not insured or not recovered from the insurers shall be borne by the
Contractor and/or the Employer in accordance with these obligations, liabilities or
responsibilities. However, if the insuring Party fails to effect and keep in force an
insurance which is available and which it is required to effect and maintain under the
Contract, and the other Party neither approves the omission nor effects insurance for
the coverage relevant to this default, any moneys which should have been recoverable
under this insurance shall be paid by the insuring Party.

Payments by one Party to the other Party shall be subject to Sub-Clause 2.5
[Employer's Claims] or Sub-Clause 20.1 [Contractor's Claims], as applicable

18.2
Insurance for Works and The insuring Party shall insure the Works, Plant, Materials and Contractor's
Contractor’s Equipment Documents for not less than the full reinstatement cost including the costs of
General Conditions 55
 demolition, removal of debris and professional fees and profit. This insurance shall be
effective from the date by which the evidence is to be submitted under sub-paragraph
(a) of Sub-Clause 18.1 [General Requirements for Insurances], until the date of issue
of the Taking-Over Certificate for the Works.

The insuring Party shall maintain this insurance to provide cover until the date of issue
of the Performance Certificate, for loss or damage for which the Contractor is liable
arising from a cause occurring prior to the issue of the Taking-Over Certificate, and for
loss or damage caused by the Contractor in the course of any other operations
(including those under Clause 11 [Defects Liability] and Clause 12 [Tests after
Completion]).

The insuring Party shall insure the Contractor's Equipment for not less than the full
replacement value, including delivery to Site. For each item of Contractor's
Equipment, the insurance shall be effective while it is being transported to the Site and
until it is no longer required as Contractor's Equipment.

Unless otherwise stated in the Particular Conditions, insurances under this Sub-
Clause:

(a) shall be effected and maintained by the Contractor as insuring Party,

(b) shall be in the joint names of the Parties, who shall be jointly entitled to receive
payments from the insurers, payments being held or allocated between the
Parties for the sole purpose of rectifying the loss or damage,
(c) shall cover all loss and damage from any cause not listed in Sub-Clause 17.3
[Employer's Risks],
(d) shall also cover loss or damage to a part of the Works which is attributable to
the use or occupation by the Employer of another part of the Works, and loss
or damage from the risks listed in sub-paragraphs (c), (g) and (h) of Sub-Clause
17.3 [Employer's Risks], excluding (in each case) risks which are not insurable
at commercially reasonable terms, with deductibles per occurrence of not more
than the amount stated in the Appendix to Tender (if an amount is not so stated,
this sub-paragraph (d) shall not apply), and
(e) may however exclude loss of, damage to, and reinstatement of:

(i) a part of the Works which is in a defective condition due to a defect in

its design, materials or workmanship (but cover shall include any other
ONLY FOR STATKRAFT A.S. NORWAY UNTIL END 2009

parts which are lost or damaged as a direct result of this defective

condition and not as described in sub-paragraph (ii) below),
(ii) a part of the Works which is lost or damaged in order to reinstate any
other part of the Works if this other part is in a defective condition due to
a defect in its design, materials or workmanship,
(iii) a part of the Works which has been taken over by the Employer, except
to the extent that the Contractor is liable for the loss or damage, and
(iv) Goods while they are not in the Country, subject to Sub-Clause 14.5
[Plant and Materials intended for the Works].

If, more than one year after the Base Date, the cover described in sub-paragraph
(d) above ceases to be available at commercially reasonable terms, the Contractor
shall (as insuring Party) give notice to the Employer, with supporting particulars.
The Employer shall then (i) be entitled subject to Sub-Clause 2.5 [Employer's
Claims] to payment of an amount equivalent to such commercially reasonable
terms as the Contractor should have expected to have paid for such cover, and (ii)
be deemed, unless he obtains the cover at commercially reasonable terms, to have
approved the omission under Sub-Clause 18.1 [General Requirements for
Insurances].
56 Conditions of Contract for Plant and Design-Build
 18.3 The insuring Party shall insure against each Party's liability for any loss, damage, death
Insurance against Injury or bodily injury which may occur to any physical property (except things insured under
to Persons and Damage Sub-Clause 18.2 [Insurance for Works and Contractor's Equipment]) or to any person
to Property (except persons insured under Sub-Clause 18.4 [Insurance for Contractor's
Personnel]), which may arise out of the Contractor's performance of the Contract and
occurring before the issue of the Performance Certificate.

This insurance shall be for a limit per occurrence of not less than the amount stated
in the Appendix to Tender, with no limit on the number of occurrences. If an amount
is not stated in the Appendix to Tender, this Sub-Clause shall not apply.

Unless otherwise stated in the Particular Conditions, the insurances specified in this
Sub-Clause:

(a) shall be effected and maintained by the Contractor as insuring Party,

(b) shall be in the joint names of the Parties,
(c) shall be extended to cover liability for all loss and damage to the Employer's
property (except things insured under Sub-Clause 18.2) arising out of the
Contractor's performance of the Contract, and
(d) may however exclude liability to the extent that it arises from:

(i) the Employer's right to have the Permanent Works executed on, over, under,
in or through any land, and to occupy this land for the Permanent Works,
(ii) damage which is an unavoidable result of the Contractor's obligations to
execute the Works and remedy any defects, and
(iii) a cause listed in Sub-Clause 17.3 [Employer's Risks], except to the
extent that cover is available at commercially reasonable terms.

18.4
Insurance for The Contractor shall effect and maintain insurance against liability for claims,
Contractor’s Personnel damages, losses and expenses (including legal fees and expenses) arising from injury,
sickness, disease or death of any person employed by the Contractor or any other of
the Contractor's Personnel.

The Employer and the Engineer shall also be indemnified under the policy of
insurance, except that this insurance may exclude losses and claims to the extent that
they arise from any act or neglect of the Employer or of the Employer's Personnel.
ONLY FOR STATKRAFT A.S. NORWAY UNTIL END 2009

The insurance shall be maintained in full force and effect during the whole time that
these personnel are assisting in the execution of the Works. For a Subcontractor's
employees, the insurance may be effected by the Subcontractor, but the Contractor
shall be responsible for compliance with this Clause.

19.1
19
Force Majeure

Definition of Force In this Clause, "Force Majeure" means an exceptional event or circumstance:
Majeure
(a) which is beyond a Party's control,
(b) which such Party could not reasonably have provided against before entering
into the Contract,
(c) which, having arisen, such Party could not reasonably have avoided or
overcome, and
(d) which is not substantially attributable to the other Party.
General Conditions 57