Time of Delivery

The Equipment specified in Appendix 1 of the present Contract is to be delivered within 2 (two) months from the date of opening the Letter of Credit specified in Clause 4 of this Contract.

The delivery date is understood to be the date of the clean Bill of Lading issued in the name of the Buyer, destination Odessa port of Ukraine.

Terms of Payment

Within thirty (30) days from the date of signing of this Contract, the Buyer is to open in favor of the Seller a Letter of Credit with Citibank, London, for hundred per sent (100%) of the total contract value. The Letter of Credit is to be valid for three (3) months.

Technical Documentation

Within five (5) days from the delivery date the Seller shall send two (2) sets of the technical documents as listed in Appendix 2 to the address of the Buyer.

All instructions on the drawings are to be in English, with all the instructions contained in items 1, 2, 3 and 4 of Appendix 2 translated into Russian.

Guarantee of the Quality of the Equipment

The guarantee period is twelve (12) months from the date of the start-up of the equipment, that is reflected in an appropriate Act signed by the representatives of the Parties of the present Contract, but not date of delivery of the equipment.

Packing

The equipment is to be shipped in export sea packing suitable for the type of equipment delivered. Packing should also be suitable for transshipment in transit and reasonable for long storage of the equipment.

The Seller is responsible to the Buyer for any damage to the equipment resulting from inadequate packing of the equipment.

Marking

All the containers are to be marked on three (3) sides. Each container should bear markings made in indelible paint (in Russian and English).

If a case requires special handling it should bear additional marks: “Top” or “This side up”, etc.

Insurance

The Seller is to take care of and cover expenses for insurance of the equipment under the Contract from the moment of its dispatch up to the moment of its arrival at the port of Odessa.

Sanctions

In the event of delay in delivery of the equipment the Seller is to pay the Buyer a penalty at the rate of 1,0% of the total contract value for every week of delay. However, the total amount of penalty for delay in delivery is not to exceed 10% of the total contract value.

While calculating penalty for delay, the amount the days, comprising over half of a calendar week is considered to be a fool week.