9. Article

For any logistic support, supplies or service not provided free of charge in accordance with STANAG 3113 or by mutual consent, the relevant authorities of each Supplying Participant and each Receiving Participant can negotiate a 'reimbursable transaction' or payment in 'equal value' to be defined in monetary terms only. Accordingly, each Requesting Participant will pay each Supplying Participant in accordance with either paragraph 9.a, or 9.b below as well as the more general provisions stated in the remainder of this Annex: a. Reimbursable Transactions. The Receiving Participant will pay outstanding balances no later than 30 days after receipt of invoice in the currency specified by the Supplying Participant. In pricing reimbursable transactions, the Participants accept the following principles: (1) The NSE of the Receiving Participant and the Supplying Participant will establish a price. (2) When a definitive price is not established in advance of the order, the order will stipulate a maximum limitation of liability for the Receiving Participant who will be ordering the logistic support, supplies or service, pending negotiation of a final price. The NSEs of the Participants will promptly enter into negotiations to establish a final price, which may under certain circumstances exceed the initial maximum limitation of liability. The burden of justifying the increase will rest with the Participant seeking to exceed the maximum. In the event that the relevant authorities of the Participants have difficulty in negotiating a final price, they may consider replacement-in-kind. (3) At the time accounts are settled, neither Participant will make or retain any profit resulting from the transactions being settled. (4) In the case of specific acquisitions by the Supplying Participant from local contractors on behalf of the Receiving Partici pant, the cost will be no less favourable than the price charged to the Supplying Participant for identical support, supplies and services. However, the price charged may take into account differentials due to delivery schedules, points of delivery and other similar considerations. (5) In the case of the transfer from the Supplying Participant's own resources, the amount paid by the Receiving Participant for logistic support, supplies and services provided will be the same as the Supplying Participant charges its own forces as of the date the order is accepted. b. Equal Value. Participants will maintain records of all transactions, and the Requesting Participant will pay the Supplying Participant, by transferring to the latter's forces, logistic support, supplies, or services that are equal in value to the logistic support, supplies, or services delivered or performed by the Requesting Participant and which are satisfactory to the Supplying Participant. If the Requesting Participant does not pay in 'equal value' within the terms of the exchange schedule, approved or in effect at the time of the original transaction (with time frames which may not exceed six (6) months from the date of the original transaction), the transaction will be deemed a reimbursable transaction and governed by Sub-Paragraph 9.a above.