1. Subject of the contract

The Seller has sold and the Buyer has bought c.i.f. (f.o.b., f.o.r.)

the goods specified in the

enclosed appendix, showing specifications, quantities, prices and delivery times of the goods and constituting an integral part of the present contract.

2. Prices

The prices are fixed in and understood

c.ii, (f.o.b., f.o.r.) export packing

and marking included.

All expenses incurred¹ on the territory of

in connection with the present contract (duties, taxes, customs², etc.) are to be paid by the Buyer.

3. Quality

The quality of the goods under the present contract shall be in full conformity either with the State standards existing in Russia or with the technical conditions ruling at the manufacturing works³.

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4. Time of delivery

The goods sold under the contract shall be delivered within months after the signing of the contract.

The date of the Bill of Lading (or: Railway Bill) shall be considered as the date of delivery.

5. DELIVERY AND ACCEPTANCE OF GOODS

The goods are considered to be delivered by the Seller and accepted by the Buyer:

a) in respect of quantity—according to the number of cases and the weight as shown on the Bill of Lading (or on the Railway Bill);

b) in respect of quality — according to the Manufacturer's certificate issued by the manufacturing works or by the Seller.

6. Terms of payment

Payment for the goods to be delivered under the present

contract is to be effected in in accordance

with the Trade Agreement between the Governments of Russia

and dated the

by an irrevocable confirmed Letter of Credit

to be opened by the Buyer with the Bank for Foreign Trade of Russia, Moscow, in favour of the Seller within 10 days of receipt of the Seller's notification of the readiness of the goods for shipment. The Letter of Credit to be valid days.

The payment of the credit is to be made against the following documents:

Invoice.

Bill of Lading (or Railway Bill).

All expenses connected with the opening of the Letter of Credit are to be borne by the Buyer.

Part shipment and transhipment are permitted.

Insurance to be made to the amount of 110 per cent, of the value of the goods.

7. Packing and marking

The goods shall be secured and properly packed to withstand both overseas and overland transport as well as transhipment.

Each package shall be provided with marking showing the place of destination, name of Consignee, description of goods, contract number, case number, gross and net weight.

8. Guarantee

Any part or parts which may prove defective through faulty material or workmanship⁴ will be repaired or replaced by the Seller

c.i.f., f .o.b., f .o.r. free of charge within the period

of calendar months of the date of shipment

provided⁵ the defective part or parts have been returned to the Seller's works for examination, carriage paid.

This guarantee will be invalidated⁶ by the Buyer making, causing or allowing any alterations or repair to the goods without the Seller's consent⁷ and also if the damage is due to negligence or improper handling on the part of the Buyer or to any other causes outside the Seller's control including damage in transit from Russia to the place of destination.

Rapidly wearing⁸ parts as well as parts which have suffered from natural wear are excluded from the guarantee.