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1.5 PAYMENT GUARANTEE GRANTED BY THE BANK

UNION BANK OF

SWITZERLAND

Haldenstrasse 118 3000 Bern 22 Switzerland

15th June 20__

SCIPELLI SPA, Milano

Cc: Vnesheconombank, Moscow

Banca Commerciale Italiana, Milano

Dear Sirs,

In accordance with Contract No. 33/A/51 of 23 May 20__signed between the Seller

– SCIPELLY SPA, Milano and the Buyer – Novoimport, Moscow, the Buyer undertakes to pay to the Seller for the fabric sold in U.S. Dollars the sum $ 450,000 representing 90 per cent of the contract value against drafts plus three percent annual interest for the granting of deferred payment.

We hereby unconditionally guarantee fulfillment by the Buyer of his obligations with regard to the payment of the sums against the Seller’s drafts on the dates stated in Article 3 of the present contract.

If the Buyer for some reason fails to effect payment in whole or in part or does not accept the drafts on the dates stipulated by Article 3 of the present Contract we shall pay to Banca Commerciale Italiana, Milano in favour of the Seller the amounts due to him under the present Contract on the Seller’s first demand.

Cont.

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The present Letter of Guarantee will be valid till the date of full payment to the Seller of the sums against the above mentioned drafts.

Yours very truly,

S..Schiller

S.Schiller

Union Bank of Switzerland

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