Koh Kong Sugar Industry Company may ask to renew the agreement 1 year prior to its expiration. The renewal can only be made once an approval has been obtained from the Government, at the request of the Ministry for Agriculture, Forestry and Fisheries and according to the mutual agreement from Koh Kong Sugar Industry Company on the terms and conditions of the new contract.
Koh Kong Sugar Industry Company has the obligation to implement business activities as planned including cultivation and maintenance by following sustainable conditions for natural resources of the location and environmental impact caused by business production.
Koh Kong Sugar Industry Company has an obligation to allow the Cambodian Ministry of Agriculture, Forestry and Fisheries and relevant institutions to monitor and evaluate its activities regarding environmental impact and subsequently follow their instructions to protect the environment
Machinery equipment, spare parts and chemical materials that are imported for the purpose of business production will incur taxes according to the law of the Kingdom of Cambodia
Before clearing the land for the development activities, Koh Kong Sugar Industry Company shall obtain approval from the Ministry of Agriculture, Forestry and Fisheries for the logging, processing or transporting of trees found on the lands and pay royalties and premiums to the Ministry in accordance with the principles and Forestry Law in force
Koh Kong Sugar Industry Company shall pay the land fee annually from the fifth year from the signing date (02/08/2006) onwards. The land fee is, per hectare, US$ 1 for the years 5-15, US$ 2 for the years 16-30, US$ 3 for the years 31-50, and US$ 4 for the years 51-90. The fee shall be paid annually to the State budget through the account of the Ministry of Agriculture, Forestry and Fisheries no later than 31 January of each year. A 2% late fee will be charged monthly if there is delay in paying the fee. Koh Kong Sugar Industry Company agrees to pay the fee until the termination of the agreement.
If during the implementation of the investment project on the land concession any land conflict between Koh Kong Sugar Industry Company and local residents/people arises, competent authorities have the right to suspend the conflict land concession area for solving the problems and protecting the interests of people. For any conflict that occurs between the military and local residents/people, the resolution shall be considered fairly.
Koh Kong Sugar Industry Company has an obligation to focus on the livelihood, health and education of its employees, workers and their families by building suitable houses, hospital, temple, school and recreation center
Koh Kong Sugar Industry Company must use the local labor force. In the event that there is no Khmer expert available, the right to hire foreign experts shall be granted under the law of the Kingdom of Cambodia.
Protections or benefits for employees, dependents, or others
Koh Kong Sugar Industry Company has an obligation to focus on the livelihood, health and education of its employees, workers and their families by building suitable houses, hospital, temple, school and recreation center
The land which contains national and cultural heritage sites, mountains, reservoirs, traditional forests and other natural protected areas shall be excluded from Koh Kong Sugar Industry Company's use and preserved in their natural conditions
Koh Kong Sugar Industry Company shall be allowed to carry out all construction activities on the location in accordance with the laws in force of the Kingdom of Cambodia and in harmony with the objectives article 3 (article 3 outlines the production-business goal and location usage schedule). All construction of infrastructure such as dams and canals that may affect the surrounding areas shall be permitted by the Cambodian Ministry of Agriculture, Forestry and Fisheries and relevant institutions. All building and infrastructure constructed by Koh Kong Sugar Industry Company shall be under the control of Koh Kong Sugar Industry Company until the termination of the agreement. All machinery, equipment and vehicles used by Koh Kong Sugar Industry Company for the activities specified in the agreement, including boats for storing machinery, freighters and accessories, shall belong to Koh Kong Sugar Industry Company.
The land that is legally owned by local residents is not available for Koh Kong Sugar Industry Company unless a mutual agreement is reached. In the event of an illegal violation of the ownership of this land, Koh Kong Sugar Industry Company reserves the right to file a lawsuit with the competent institution.
In case of disputes during the execution of the agreement, the two parties shall mediate and settle the dispute based on the rights and obligation of each party as set out in the agreement. If the parties cannot mediate or settle the dispute within 60 days, the dispute shall be submitted to the Council for the Development of Cambodia for mediation and reconciliation. If the dispute cannot be settled by the Council for the Development of Cambodia within 60 days, either party shall have the right to refer to the arbitration. Any decision or award given by the arbitrators shall be final, conclusive and binding on the parties.
Koh Kong Sugar Industry Company is entitled to make a transfer to its successors. Legal successors refer to individuals who have been authorized by the law in force to inherit from Koh Kong Sugar Industry Company, or those individuals recognized by the law to as its affinity. Notification on rights transfer or any decision regarding the handover to the successors shall be given to the Cambodian Ministry of Agriculture, Forestry and Fisheries at least 6 months before the execution. If Koh Kong Sugar Industry Company transfers the agreement, it shall be in accord with the investment law of the Kingdom of Cambodia and have obtained the approval of the Council for the Development of Cambodia at the request of the Cambodian Ministry of Agriculture, Forestry and Fisheries.
If Koh Kong Sugar Industry Company faces a situation beyond its control, it has the right to withdraw from the whole project or part of the project, provided it has received approval for the withdrawal from the Cambodian Ministry of Agriculture, Forestry and Fisheries. If Koh Kong Sugar Industry Company withdraws without approval, it shall be held responsible according to the Investment Law of the Kingdom of Cambodia. If Koh Kong Sugar Industry Company fails to use its best effort to implement the activities set out in the agreement within 1 year starting from the completion of the survey specified in article 1.4, the Cambodian Ministry of Agriculture, Forestry and Fisheries shall have the right to terminate the agreement unconditionally and without compensation for damages. The deposit paid by Koh Kong Sugar Industry Company will also become State property. If the Cambodian Ministry of Agriculture, Forestry and Fisheries is not able to perform its duties in relation to providing interventions to address any problems involving those who commit offense and violate the rights of Koh Kong Sugar Industry Company and resolving conflict pursuant to article 6, Koh Kong Sugar Industry Company shall have the right to terminate the agreement. If the agreement is terminated, Koh Kong Sugar Industry Company has the right to harvest the principle crops product (sugar cane) of the last season.C65
"Force majeure" refers to fire, flood, storm, war, earthquake, civil unrest, insurgency, strike, explosion, epidemic and other events or circumstances beyond the control of the two parties. If Koh Kong Sugar Industry Company is not able to perform its duties in part or in whole pursuant to the terms and conditions of this agreement due to force majeure, it shall notify the Cambodian Ministry of Agriculture, Forestry and Fisheries in writing, specifying the reasons and its obligations shall be temporarily suspended during this period.
The Cambodian Ministry of Agriculture, Forestry and Fisheries has the right to monitor the implementation of the agreement, and the technical work and business production program of Koh Kong Sugar Industry Company. Koh Kong Sugar Industry Company has an obligation to report to the Cambodian Ministry of Agriculture, Forestry and Fisheries the achievement of the implementation of the investment works in semi-annual and annual periods.