The contract is in two recognizable languages, Khmer and English. If different ideas are caused by inappropriate translation, the agreement made in Khmer language must be taken as a basic document for further debate.
Pheapimex has the right to renew the contract after 70 years of production. The rental fee on renewal shall be changed according to principle and decision by the government. If the government or Pheapimex does not agree the newly assigned fee, both parties shall discuss with other companies who have done the same business in Cambodia, in order to determine the appropriate market prices necessary for continuous rent.
The government has the obligation to monitor environmental impacts.
Pheapimex must allow the Ministry of Agriculture, Forestry and Fisheries and concerned institutions to monitor and assess the environmental impacts and must implement according to the advices by the Ministry of Agriculture, Forestry and Fisheries and concerned institutions over the environmental related issues.
Pheapimex has the right and obligation to undertake exploitation through already prepared plans such as clear-cutting, roading, cropping, maintenance etc in respect to conditions of sustainable uses of concession and environmental impacts caused directly by business production
Pheapimex is obliged to pay other taxes to the government pursuant to the applicable laws. Pheapimex agrees to pay taxes or other charge fee that are obliged by the government including export duties compatible with the future laws.
Pheapimex must pay USD$ 20,000 for warranty of agreement security. Deposit must be paid not later than 3 months after its signature. This deposit shall be repaid when Pheapimex implements cropping completely.
If there are commercial trees remaining inside the concession area granted by the government, Pheapimex shall pay a royalty to the government depending upon the applicable forestry law
The contract has not determined the annual charge fee rate, because the fee rate shall be passed by the government. Therefore, at present government has not reserved the rights to collect the annual rental fee from this land concession. If the laws are made in the future, the contract shall be conformed to the passed laws and other decisions of the government; and the contract shall be re-signed for the charge fee.
Pheapimex is eligible to recruit either local worked or foreign experts in order to advise or train local workers about cropping techniques of business production according to their immediate needs respective to the Laws of the Kingdom of Cambodia, in case that experts are not available in the country
Pheapimex has the obligation to buy the agricultural products from Cambodian farmers depending on the product quality and the prices prevailing at the market
Pheapimex has the obligation to take care of living standards as well as health and education of staff, workers and their family members by assisting, by Pheapimex's ability, settlement buildings, hospital, religious buildings, school, and recreational centers
The total concession area includes land which is under the current legal ownership of local people, Pheapimex can cooperate with the people for agricultural production upon mutual agreement
During the forest clearance for business production, if finding mines such as gold, gemstone or the national heritage materials (on the ground or underground) must be maintained as the state property
Every construction of infrastructures like dams and canals vulnerably causing the severe environmental impacts to surrounding areas must be permitted by the government
Pheapimex must use the land as clarified in Art. 1 of the contract during 17 years from the date of its signature, as follows:
Year 1 : 5,000 hectares
Year 2 : 6,000 hectares
Year 3 : 7,000 hectares
Year 4 : 8,000 hectares
Year 5 : 9,000 hectares
Year 6 : 10,000 hectares
Year 7 : 11,900 hectares
Year 8 : 11,900 hectares
Year 9 : 11,900 hectares
Year 10 : 11,900 hectares
Year 11 : 11,900 hectares
Year 12 : 11,900 hectares
Year 13 : 11,900 hectares
Year 14 : 11,900 hectares
Year 15 : 11,900 hectares
Year 16 : 11,900 hectares
Year 17 : 11,900 hectares
The government has the right and obligation to seek the essential measures from concerned institutions in order to solve any incidents/problems for which any offenders violate Pheapimex under the terms and conditions of the contract, such as development, use of land concession locations, or claiming any part of concession area. If that controversy occurs during the time that the contract is still being implemented, the government and Pheapimex shall coordinate and solve the problems pursuant to the rights and obligations of each party as stipulated in the contract. If the government and Pheapimex can neither coordinate nor resolve these controversial problems for the period of 60 days, the controversial shall be filed to the Council for the Development of Cambodia for further coordination and resolution. The government and Pheapimex shall work out their differences with best regards in Cambodia.
Pheapimex can transfer the contract, cooperate over the land concession and part of their own properties to either their own successor or any appointed person which is agreed by the government. Pheapimex must inform the authority to cooperate to rent this land concession to the third party as long as that third party abide by the contract made by the government and Pheapimex.
Pheapimex has the right to withdraw the whole project of the contract or any parts that cannot be managed and shall be agreed by both parties. The government guarantees the safe return of foreign staff including their family members and the withdrawal of or sale of facilities, processing factories, machinery and commodity ships, all kinds of vehicles and equipment together with transportation means and fixed instrument must be done according to the applicable laws and regulations. If Pheapimex withdraws by itself, it must be fully responsible for article 23 of the Investment Law. If Pheapimex has not completely implemented in accordance with any term and condition of the contract or various decisions of the Kingdom of Cambodia, the government shall have the right to cancel the contract unconditionally and with no compensation. The cancellation will result in the seizure of deposit of Pheapimex to be the state property. If Pheapimex has not complied with the contract by not commencing the production operation on the land concession area 2 years after the date of its signatures, the government has the right to cancel the contract unconditionally and without any compensation. The cancellation will result in the confiscation of deposit of Pheapimex to be state property.
If the government and Pheapimex cannot perform their obligations in part or the whole in accordance with the various terms and conditions in the contract because of risk and uncertainty, Pheapimex must inform the government in writing declaring the reasons for risking. Pheapimex shall temporarily stop operating during a period of risk and uncertainty.
Risk and Uncertainty include fire, flood, storm, war, earthquake, civil disorder, revolutionary strike, riot, explosion, disease outbreak, as well as situations and circumstances beyond the capability range of reasonable management by both parties.