3. Shipment

3.1. If the goods are passed by the Buyers’ Inspector for shipment, the Inspector will furnish the Sellers with the Release Note for Shipment stating that the goods are passed for shipment.

3.2. The Sellers shall notify the Buyers and the Forwarding Agents in advance of... days of the readiness of the goods for shipment and the necessary data for booking space, i.e.:

• Contract No.;

• Description and quantity of the goods;

• Number of packages and kind of packing;

• Gross and net weight in kilos;

• Total value of the goods;

• Approximate loading dates.

3.3. Not later than within one day of the shipment of the equipment, the Sellers shall notify the Buyers of the following data:

• name of the nominated vessel, its position and Bill of Lading No. - for deliveries by sea;

• Railway Bill No. - for deliveries by railway;

• Airway Bill and Flight No. - for deliveries by plane;

• Way Bill No. - for deliveries by truck.

3.4. The Sellers are to ship together with equipment a complete set of instructions for mounting, operation, maintenance and service of the equipment.

4. Sanctions

4.1. In the event of the Sellers’ delay in the supply against the dates stipulated

in the contract the Sellers are to pay the Buyers agreed and liquidated damages

at the rate of 0.5% of the value of the goods not delivered in due time for every

week but not more than 10% of the value of the undelivered goods.

4.2. The penalties will be deducted from the Sellers’ invoices when they are

paid by the Buyers.

4.3. Should the delay exceed 4 months the Buyers shall have the right to cancel the contract or a part thereof.

4.4. Should the shipment of the equipment not be notified or be notified with delay, the Sellers are to pay the Buyers a penalty at the rate of 0.1% of the value of the equipment already shipped.

4.5. In addition the Buyers reserve the right to reject any goods delayed over ...

weeks, and such rejection of the goods shall not free the Sellers from their

liability to pay the Buyers agreed and liquidated damages.

5. Guarantee

5.1. The Sellers guarantee that the goods are in all respects in accordance with

the description, technical conditions and specifications contracted for, that they are free from defects in material, design and workmanship and that they conform to the highest world standards and first rate workmanship.

5.2. Should the goods prove defective within 2 months of the date of putting the equipment into operation but not more than 18 months of the date of shipment, the Sellers undertake:

1. to remedy the defects or to replace the faulty goods, freight prepaid, at

the Buyers option and free of charge;

b) or to refund the value of the goods paid by the Buyers.

6. Export licence

6.1. The Sellers shall bear all cares and expenses connected with the export licence for delivery to the Russian Federation of the equipment with the scope stipulated by the Contract.

6.2. Should the licence not be obtained or revoked by the appropriate authorities or should its validity expire prior to the complete execution of the Contract, the Buyers are entitled to cancel the non-executed part of the contract or the whole contract.