1. Subject of the Contract

Example I.

1.1. The Sellers have sold and the Buyers have bought on the conditions f.o.b.____________ franco-railway car-border______________ the following equipment: in Full conformity with the technical characteristics and in complete scope of supply specified in Appendix № ____

Example 2

1.1. The Sellers have sold and the Buyers have bought the equipment hereinafter referred to as "goods" on terms f.o.b.-stowed port __________________The Sellers will deliver to the Buyers' port, or will send by post to the address________________ the goods (description of equipment, instruments, etc., their technical specification or reference to quotation or to Catalogue number), complete with standard spare parts, required technical documentation and corresponding accessories.

2. Prices and Total Value

Example I.

1. The total value of the equipment, spare parts, tools, technical documentation and services in the volume of the present Contract amounts to __________________

2. The prices per item are specified in Appendices No, No ______

3. The prices are firm and subject to no alteration.

Example 2.

2.1.The total amount of the Contract is ______ The prices are firm for the duration of the Contract, not subject to any alterations and understood to be fob.

2.2.The sum including export sea packing, marking, port and dock duties on the cargo, attendance to custom formalities, loading into holds, crane, stevedoring, stowing of the cargo in the hold/or deck, lashing and securing as well as the cost of materials used for this purpose.

3. Sanctions

Example 1.

1. In the event of the Sellers' delay in the supply against the dates stipulated in the Contract the Sellers are to pay the Buyers penalty at the rate of 0, 5% of the value of goods not delivered in due time for every week of the delay within the first four weeks and 1% for every subsequent week but not more than 10% of the value of the equipment not delivered in due time.

2. The penalties will be deducted from the Sellers' invoices when they will be paid by the Buyers. In case the Buyers for any reason do not deduct the penalty when paying the Sellers' invoice the latter is obliged to pay the penalty amount at the first request of the Buyers.

3. Should the delay in delivery exceed four months the Buyers shall have the right to cancel the Contract or a part there of.

4. Should the shipment of the equipment not be notified with delay, the Sellers are to pay the Buyers penalty at the rate of 0, 1% of the value of the equipment already shipped.

Example 2.

3.1. If the delivery date stipulated by the Contract is not observed, the Sellers are to pay the Buyers penalty at the rate of______ % of the value of the equipment delayed for each commenced week for the first four weeks of delay, and _______ % for each following commenced week thereafter. However, the total amount of the penalty is not to exceed _______% of the value of the equipment delay.

3.2. In case of delay in delivery exceeding________ months the Buyers have the right to cancel the Contract wholly or partially without any compensation of the losses. The Sellers may sustain in connection with such a cancellation. In this case the Sellers are obligated to pay the Buyers penalty for delay in delivery at the rate of_______ % of the value of the delayed equipment and to return back all the amounts received from the Buyers prior to the cancellation of the Contract, plus_____% interest per annum.

3.3. The rate of the penalty is not subject to alterations by arbitration. The penalty amount is to be deducted from the Sellers' invoices when payment is effected by the Buyers. Should the Buyers fail to deduct the Sellers' invoice for some reason or other the Sellers are to pay it immediately at the Buyers' request.