Article 1 (Objective)

This Agreement, by and between DOOSAN (hereinafter referred to as "the Company") and User (hereinafter referred to as "the User") defines the rights and obligations of the said Parties related to the Internet e-Sourcing (hereinafter referred to as "e-Sourcing") operated by the Company.

Article 2 (Definitions)

• 1. "e-Sourcing" refers to the virtual business office set up by the Company in which goods can be traded through computers and any other information and communication devices.
• 2. "Services" refer to all Internet services on the e-Sourcing site provided by the Company.
• 3. "User" refers to members and nonmembers who are provided with the services of the e-Sourcing according to this Agreement.
• 4. "Member" refers to a person who has registered for membership by providing personal information to the Company. Member is provided with Company information and can use the services offered by the Company on a continuous basis.
• 5. "Nonmember" refers to a person who has not registered for membership but uses some of the services offered by the Company.
• 6. "L/C" refers to a Letter of credit and means an irrevocable letter of credit.
• 7. "T/T" refers to Telegraphic Transfer which means a foreign currency cash account transfer.
• 8. "User ID" refers to the combination of characters and numbers selected by the Member and registered with the company to use the services.
• 9. "Password" refers to the combination of characters and numbers selected by the Member and registered with the company for member identification as well as to protect rights and privacy of the member.
• 10. Others: The definition of terminology used in this Agreement is based on general transaction practices.

Article 3 (Notice and Modification of the Agreement)

• 1. This Agreement shall be posted on the service screen to notify the User of it.
• 2. In the event the Company revises any terms or conditions of this Agreement, the Company shall specify the applicable date, a description of modification, and the reason for modification and give notice of such details at least seven (3)days before the applicable date in the same manner as stated in Clause 1.
• 3. The Member may withdraw from membership in the manner stated in Clause 1, Article 6, if the Member does not agree to the revision of this Agreement, and shall be deemed to have agreed to the revised Agreement if the Member does not raise any objection by the date preceding the applicable date.
• 4. Any issue not specified in this Agreement and interpretation of the Agreement shall be subject to related laws and regulations and/or the general commercial practices of Korea.

Article 4 (Membership Eligibility)

• Membership eligibility is as follows.
• 1. End user at a place of business outside of Korea
• 2. Trading company with place of business in Korea that has been designated by the Company (hereinafter referred to as "Trading Company")

Article 5 (Membership Application)

• 1. This Agreement is entered when a prospective Member expresses his agreement to the Agreement and applies for membership, and the Company delivers the approval of the membership application to the Member.
• 2. The person who wishes to apply for membership shall accurately and truthfully record the following in the application form the company offers on-line. However, items 8 and 10 provided below are applied only to Trading Company.
  • 1) Company name (English)
  • 2) Company representative's name (English) and company e-mail address
  • 3) Name of a person in charge of purchase and his contact point
  • 4) Duns Number
  • 5) Password
  • 6) Business office address
  • 7) Name of the bank you do business with
  • 8) Business license number (For Korean members only)
  • 9) Type of business as stated on business license (For Korean members only)
  • 10) Business items as stated on business license (For Korean members only)
• 3. The Company shall notify the approval decision to the applicant either through e-mail or any other means and grant a User ID to the successful applicant.
• 4. The Company reserves the right to reject any membership application in the following cases. In such cases the Company will notify the applicant of the reasons of rejection via e-mail or any other means.
  • 1) Duplicate company names or business license numbers.
  • 2) Falsification, missing information or mistakes in the information provided by the applicant.
  • 3) The applicant is found to be in arrears, in bankruptcy, or in similar state of bad credit.
  • 4) The applicant is found to be a former Member who lost his membership less than one year ago in accordance with Clause 3, Article 6 under this agreement.
  • 5) The applicant is a company that produces and sells the same products as the Company, thus the Company has reason to believe that the market could be disturbed if its membership application was approved.
  • 6) Others: The applicant's intention is to disturb the operation of the e-Souring.

Article 6 (User ID, Password)

• 1. The member can access the e-Sourcing by using his User ID and Password, and purchase items through the services the Company offers.
• 2. The Member shall manage User ID and password under his responsibility, and shall not transfer or grant the use of his Customer Code, User ID or password to others.

Article 7 (Delay in Acceptance)

Provided that the Company completes the production and the Member fails to accept the contracted products, the Company shall be entitled to make a claim for storage fees equivalentto a certain percentage of the contract price set by the Company for the delayed period or dispose of the products through consultation with the Member, and also claim damages for direct and indirect losses incurred to the Company as well as storage fees.

Article 8 (Payment and Settlement)

• 1. When the Member requests to use cash payment method, he shall deposit a portion of the Contract Price into the bank account designated by the Company before the order form is sent to plants, and the remaining sum shall be paid by the specified date theCompany notifies of the Member after it completes production. When the Member fails to make payment by the deadline, the Company may cancel the Contract and not make a shipment.
• 2. When the Member requests to use Letter of Credit payment method, he shall open an irrevocable letter of credit any time during the period before the order form is sent to plants and before loading, and the opening date shall be determined by the credit ratingof the Member.
• 3. After concluding a contract under agreement with the Company in connection with the Member requesting a settlement condition other than the above items 1 and 2, the Trading Company shall open a domestic letter of credit for the Contract Amount before loading, and deposit the transportation fee in foreign currency by the date designated by the Company. In the transaction involving the above Member, the Trading Company is responsible for following the procedures of the Foreign Currency Transaction Act and other related statures.

Article 9 (Product Liability)

• 1. The Company shall be liable for damage caused to human life, human body or property by the products supplied by the Company; provided, however, that the Company shallnot be liable for damage in the following instances: (newly included August 23,2002) When the Company supplied the products to the Member in compliance with the agreement therewith and damage was caused by the use of the products in a way or for the use that the Company does not know of or was not able to know of; or (newly included August 23,2002)
  • 1) When the products are supplied for the business purpose of the Member and damageis caused to the business property of the Member. (newly included August 23,2002)
• 2. The Member shall defend any damages claims or lawsuits brought against it in connection with the product supplied by the Company, and shall bear expenses incurred in connection with defending the claims or lawsuits; provided, however, that the Member may seek indemnification from the Company when such damage is not attributable to the Member. (newly included August 23,2002)
• 3. The Company and the Members shall cooperate with each other in preventing, defending or taking measures against the claims or lawsuits in connection with the product liability. (newly included August 23,2002)

Article 10 (Claims/Complaints)

• 1. The Member shall examine the quantity and quality of the contracted products immediately after he receives them, and in the event the provided products are found to be defective or lacking in number, the Member should promptly inform the Company of such fact and claim for compensation.
• 2. Compensation, in principle, shall be made in cash.
• 3. The member shall provide physical evidence for his claims when the Company conducts a field investigation related to the defective products.

Article 11 (Management of Members' Credit Rating)

For the purpose of ensuring the security and credibility of transactions on the e-Market, the Company reserves the right to conduct an independent evaluation of members' financial status.

Article 12 (Transportation and Delivery)

• 1. The Company shall transport the ordered goods to the place the Member specified based on the delivery terms.
• 2. The Company shall comply with the promised shipping date, and should the shipment be delayed due to ship assignment schedules, the Company shall inform the member of the reasons for delay, so that the two parties can re-discuss a shipping date.

Article 13 (Indemnification and Bidding Restriction)

• 1. In the event the Member intentionally performs an act of disturbance against the operation of the e-Sourcing, the Company may hold the member accountable for civil and criminal liability.
• 2. If the Member fails to make payment through bank deposit by the deadline or open letter of credit within the specified period, the Company may take actions including bidding restrictiosn and User ID termination under its internal rules and regulations.
• 3. The Company may impose bidding restrictions on the member and claim for compensation, provided that losses are incurred due to contract cancellation and other reasons. In this case, the advances paid in cash shall be considered to be an estimate for damages.