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1. Goods are to be packed in strong wooden case(s) then in container, suitable for long distance
ocean/parcel post/air freight transportation and change of climate, well protected against
moisture and shocks and rough portage. The Sellers shall be liable for any damage of the
commodity and expenses incurred on account of improper packing and for any rust attributable
to inadequate or improper protective measures taken by the Sellers in regard to the packing.
The wooden boxes must be labeled with "IPPC

2. The Sellers shall not be held responsible for any delay in delivery or non-delivery of the goods
due to Force Majeure. However, the Sellers shall advise the Buyers immediately of such
occurrence and within fourteen days thereafter, shall send by airmail to the Buyers for their
acceptance a certificate issued by competent government authorities of the place where the
accident occurs as evidence thereof. Under such circumstances, the Sellers, however, are still
under the obligation to take all necessary measures to hasten the delivery of the goods. In case
the accident lasts for more than ten weeks, the Buyers shall have the right to cancel this
Contract.

3. In case of delayed delivery except for force majeure cases, the Seller shall pay to the Buyer for
every week of delay penalty amounting to 0.5% of the total value of the goods whose delivery
has been delayed. Any fractional part of a week is to be considered a full week. The total
amount of penalty shall not, however, exceed 5% of the total value of the goods involved in
late delivery. The Seller grants a grace period of four weeks from the delivery date before
penalties shall be applied

4. In the event of late Delivery for reasons other than force majeure as defined in this Contract,
the SELLER shall pay as liquidated damages and not as a penalty the sum of 0.1% of the value
of the undelivered part per day of late Delivery up to a maximum of 10% of the Price payable
under Clause 10 below. Payment of liquidated damages shall be due without the BUYER
having to furnish proof of any loss, damages or injury.
Payment of liquidated damages shall constitute full and complete satisfaction of any claim of
the BUYER against the SELLER arising from or in connection with late Delivery of any
Goods. In particular the SELLER shall not be liable for any indirect or consequential loss or
damages, as defined in Clause 2.7 above, arising from or in connection with late delivery of
any Goods

5. If the Seller fails to deliver the Goods at the fixed date, the Buyer shall have the right to
demand from the Seller the payment of a penalty of 1% per day of the value of goods not
delivered. The Buyer has the right to cancel contract in case of delayed shipment exceeding 50
days from the fixed delivery time. The Seller shall pay back the Buyer the sum having been
paid plus interest rate and has to compensate all actual losses arising due to cancellation of
contract, however not exceeding 5% of the contract value.

6. The Manufacturer shall be liable to pay penalty in the following cases specified as breach of
contract:
In the event of late delivery: The Manufacturer has to pay as liquidated damages 2.5% of the
sum of performance bond if the Manufacturer delays 15 working days or more from the
planned time of shipment. If such delay exceeds 30 days, liquidated damages amounting up to
5% of the sum of performance bond shall be due. In any event, the total maximum claim
during the execution of this contract is capped at 5% of the sum of the performance bond.
 In the event of shortage of quantity no penalty shall be due. Instead the Buyer shall be entitled
to a reduction of the Contract Price equalling the difference between the goods delivered and
the goods the Manufacturer was liable to deliver.

7. Payment of liquidated damages by the Seller shall not preclude the Buyer from seeking
compensatory damages from the Seller for any loss, injury or damage arising from or in
connection with late Delivery of any Goods; in particular the Buyer shall be entitled to
compensation from the Seller for any indirect or consequential loss or damage, including but
not limited to loss of profit, loss of use or loss of contract, arising from or in connection with
late Delivery of any Goods.

8. If, under the terms of this Contract, the Buyer is to arrange for the vessel or vessel’s space, the
Buyer shall secure for the necessary vessel or vessel’s space on berth term basis and give the
Seller shipping instructions within a reasonable time prior to shipment, including but not
limited to, the name and detailed schedule of the vessel.

9. The validity of the export license shall be longer than the time of the Seller’s obligations under
this Contract by at least 60 days. The Seller shall at his own expenses and risks prolong the
validity of such export license by the time of any delay occurred in the execution of this
Contract.
10. Neither party shall be held responsible for any delay or failure in performance of any part of
this agreement to the extent such delay or failure is caused by fire, flood, explosion, war,
embargo, government requirement, civil or military authority, act of God, or other similar
causes beyond its control and without the fault or negligence of the delayed or non-performing
party.

11. In case of a force majeure event, the affected party shall notify the other party in writing within
ten (10) days after the beginning of any such cause that would affect its performance.
Notwithstanding, if a party’s performance is delayed for a period exceeding thirty (30) days
from the date the other party receives notice under this paragraph, the non-affected party shall
have the right, without any liability to the other party, to terminate this agreement".