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Pordenone, September 23rd, 2011

Client Address Country

PKTBA JSC

75, Pr. Podedy, Penza

RUSSIA

To the kind attention Mr. Slava Skachkov

16/00 OFFER No. 11616/00

Ball Matic - 36/CNC

Contact: L. Turcato
SAFOP S.P.A. Via Castelfranco Veneto, 65 33170 Pordenone - Italy Phone (39) 0434.378900 Telefax (39) 0434.378850 P.I. / VAT Reg. No. IT00066280934

Safop Ref: 08298


This document contains proprietary information of Safop S.p.A. not disclosable, not reproducible. All rights reserved.

PKTBA JSC PENZA BM-36/CNC LIST OF CONTENTS:


1 FOREWORD ......................................................................................................................................................... 4 1.1 1.2 1.3 1.4 2 Machine capacity ............................................................................................................................................ 4 Machine Main Features .................................................................................................................................. 4 Technical Preconditions ................................................................................................................................. 5 Quality, Regulations and Standards ................................................................................................................ 6

TECHNICAL DATA............................................................................................................................................. 7 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 Headstock ....................................................................................................................................................... 7 Bed for Tailstock and Carriage ....................................................................................................................... 7 Tailstock ......................................................................................................................................................... 7 Longitudinal Carriage for Turning and Grinding Unit Hydrostatic .............................................................. 8 Cross Carriage for Turning Unit Hydrostatic............................................................................................... 8 Turning Unit ................................................................................................................................................... 8 Cross Carriage for Grinding Unit Hydrostatic ............................................................................................. 9 Grinding Unit .................................................................................................................................................. 9 Electrical equipment ....................................................................................................................................... 9 Chip Conveyor and Coolant Unit ................................................................................................................. 10

TECHNICAL DESCRIPTION .......................................................................................................................... 11 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 Headstock ..................................................................................................................................................... 11 Bed for Tailstock and Carriage ..................................................................................................................... 11 Tailstock ....................................................................................................................................................... 11 Longitudinal Carriage for Turning and Grinding Unit Hydrostatic ........................................................... 12 Cross Carriage for Turning Unit Hydrostatic............................................................................................. 12 Turning Unit ................................................................................................................................................. 12 Cross Carriage for Grinding Unit Hydrostatic ........................................................................................... 13 Grinding Unit ................................................................................................................................................ 13 Numerical Control System ............................................................................................................................ 13 Electrical System with Conditioning Unit..................................................................................................... 15 Gap Control .................................................................................................................................................. 15 Workpiece Probe .......................................................................................................................................... 16 Chip Conveyor and Coolant Unit ................................................................................................................. 16 Protection Cabin ........................................................................................................................................... 16 Cups with Tool Holders ................................................................................................................................ 16

DOCUMENTATION .......................................................................................................................................... 17 4.1 4.2 4.3 Instruction books .......................................................................................................................................... 17 Foundation lay-out ........................................................................................................................................ 17 Information from the Buyer .......................................................................................................................... 18

TRAINING - INSTALLATION - ACCEPTANCE TESTS ............................................................................. 19 5.1 5.2 5.3 5.4 Training ........................................................................................................................................................ 19 Installation and Commissioning at Buyers Plant ......................................................................................... 19 Acceptance tests ........................................................................................................................................... 20 Expenses for Buyers and Safops personnel ................................................................................................ 20

SCOPE OF SUPPLY........................................................................................................................................... 21 6.1 6.2 Basic supply.................................................................................................................................................. 21 Exclusions..................................................................................................................................................... 21

GENERAL TERMS OF SALES ........................................................................................................................ 22 7.1 7.2 Budget Prices ................................................................................................................................................ 22 Delivery time ................................................................................................................................................ 22
Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

08298.doc

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PKTBA JSC PENZA BM-36/CNC


7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 Terms of delivery.......................................................................................................................................... 22 Terms of payment ......................................................................................................................................... 22 Warranty on materials................................................................................................................................... 23 Packing ......................................................................................................................................................... 23 Taxes, Duties and Levies .............................................................................................................................. 24 Coming into Force of the Contract ............................................................................................................... 24 Force Majeure............................................................................................................................................... 24 Arbitration .................................................................................................................................................... 24 Validity of the offer ...................................................................................................................................... 24

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 3

PKTBA JSC PENZA BM-36/CNC

FOREWORD

This offer concerns the supply of a Machining Centre Ball Matic 36/CNC (Machine) to be installed in the workshop of PKTBA JSC (Buyer). The Machine is one of SAFOP S.P.A. (Safop) most up-to-date product on the specific field of machining spherical bodies and namely the shutters of ball valves. The Machine performs the following operations: semi-finishing - finishing turning operations; grinding operations. The Machine can be also used as an heavy duty CNC lathe in case the machining of ball valves do not occupied entirely the machine. The design of the Machine is the result of Safops long experience as leader suppliers to the most important manufacturers of ball valves trough the world and the co-operation with the end users (see Reference List in Annex 1).

1.1

Machine capacity mm inches mm inches mm daN daN mm 152 914 6 36 225 1,370 9 54 1,800 (71) 10,000 67,000 13,000 x 6,500

- Min / max ID of the spheres

- Min / max OD of the spheres - Distance between centres - Maximum admitted weight of the part carried between centres - Machine total weight, approx - Machine overall dimensions, approx. (plant view)

1.2

Machine Main Features

The Machine satisfies the following conditions: Productivity The productivity is very high being the Machine a pure CNC controlled machining centre made for a specific use.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 4

PKTBA JSC PENZA BM-36/CNC Flexibility Just introducing simple information in the CNC the Machine modifies and adapts itself to all workpiece's design changes. In this way the Machine can produce different shapes and where the material of workpiece is changed, the Machine can learn and use new working parameters without any limitation using subprograms. Ergonomicity The Machine on its basic design takes as very important the ergonomic problem; it respects the man-operator relationship and namely: the loading/unloading operations are executed on the open side of the Machine with no interference; the working area during the turning operation and when using the grinding unit are fully enclosed in a protection cabin; chip's discharge, coolant system and filtering unit for the coolant are fully interfaced through PLC/CNC.

1.3

Technical Preconditions

1.3.1 Operating environment Temperature: 0/+40C Altitude: < 1,000 metres Relative Humidity: < 85% up to maximum 95% for 30 days in a year 1.3.2 Take Over Point

For the functioning of the Machine the Buyer will provide the following media and connection at the related points (Take Over Points): Media Electric Energy Compressed Air Telephone Line Characteristics 3 phases, 380 V 10% 50 Hz Industrial type Pressure 0.6 MPa Direct line Take Over Point At the incoming line of the electric switchboards Close to the electric energy incoming line Close to the electric energy incoming line

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 5

PKTBA JSC PENZA BM-36/CNC

1.3.3

Painting

If not otherwise requested by the Buyer, the Machine will be painted as follows: Machines Part Machine Electric switchboards Protections and handrails Hydraulic units Platforms and stairs Colour Blue Light grey Signal yellow Ochre brown Dull black Ral 5015 7032 1003 8001 9005

1.4

Quality, Regulations and Standards

1.4.1

Quality Management System

The Quality Management System of Safop conforms to the Quality Management System Standard EN ISO 9001:2008. 1.4.2 Regulations and Standards

With reference to the Quality, Safety and Environment requirements the equipment described in this Offer comply with the following Regulations and Standards in force: Directive on Machinery 2006/42/EC Directive on Low Voltage Electrical Equipment 2006/95/EC Directive on Electromagnetic Compatibility 2004/108/EC Directive on Simple Pressure Vessels 87/404/EEC

Note: During the executive stage Safop reserves the right to modify the technical characteristics of the Machine to improve its performances.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 6

PKTBA JSC PENZA BM-36/CNC

2
2.1

TECHNICAL DATA
Headstock mm size inches kW 300 15 6 60 3

- Spindle diameter at front bearing - Spindle nose (DIN 55026) - Centre flange (ASA type) - Power of the main A.C. variable speed motor - Number of infinitely variable ranges of spindle speeds - Spindle speeds ranges: * 1st range * 2nd range * 3rd range - Centre angle - Special driving units according to the type of spheres

rpm rpm rpm

1.19 30 100 2.38 60 200 4.76 119 400

To be specified To be specified

2.2

Bed for Tailstock and Carriage n mm mm mm 4 1,830 600 690

- Number of the ways - Width across ways - Width of tailstock ways - Width of carriage ways - Type of ways of carriage - Height of the bed

fully hydrostatic mm 630

2.3

Tailstock mm mm 230 290

- Diameter of the quill - Travel of the quill - Power rapid traverse of the: * tailstock

mm/1

1,450

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

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PKTBA JSC PENZA BM-36/CNC

* quill - Clamping force of the tailstock unit on the bed ways - Strain gauge capacity - Centre flange (ASA type) - Centre angle

mm/1 daN daN inches

450 40,000 12,000 5 60

2.4

Longitudinal Carriage for Turning and Grinding Unit Hydrostatic fully hydrostatic mm/1 Nm 0.5-15,000 42

- Sliding ways - Infinitely variable power feed - Torque of carriage A.C. servomotor

2.5

Cross Carriage for Turning Unit Hydrostatic fully hydrostatic mm/1 Nm mm mm 0.5-5,000 41.5 63 800

- Sliding ways - Infinitely variable power feed - Torque of carriage A.C. servomotor - Diameter of re-circulating ball screw for cross carriage - Cross carriage travel

2.6

Turning Unit Blade mm mm Capto 8 100 300

- Tool holder type - Width of the blade tool holder - Stroke of the blade - Tool attachment Sandvik type (manual)

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

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PKTBA JSC PENZA BM-36/CNC

2.7

Cross Carriage for Grinding Unit Hydrostatic fully hydrostatic mm/1 Nm mm mm 0.5-5,000 41.5 63 540

- Sliding ways - Infinitely variable power feed - Torque of carriage A.C. servomotor - Diameter of re-circulating ball screw for cross carriage - Cross carriage travel

2.7.1

Vertical Y axis Nm mm mm 22.4 100 1

- Torque of A.C. servomotor Y axis - Diameter of re-circulating ball screw - Y axis vertical travel

2.8

Grinding Unit mm kW rpm 340 60 8 270 700

- Main spindle diameter - Power of the main A.C. variable speed motor - Range of speeds

2.9

Electrical equipment IP IP V Hz V V 54 54 400 10% 50 2% 230 10% 24

- Steel cabinet protection - AC servomotors protection - Main voltage 3 phases (incoming line) - Frequency (incoming line) - Auxiliary units voltage - Inputs-outputs voltage

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 9

PKTBA JSC PENZA BM-36/CNC

2.10

Chip Conveyor and Coolant Unit mm mm l m l/min 450 1,200 2,000 25 200

- Width of the conveyor chain - Height of the chip discharge (above ground level) approx. - Coolant tank capacity - Filtration capacity - Max. coolant flowrate

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 10

PKTBA JSC PENZA BM-36/CNC

3
3.1

TECHNICAL DESCRIPTION
Headstock

The headstock is of hermetically closed type. The spindle is running on high precision bearings with double row of rollers, the inner ring is mounted on taper seat to control the backlash. The type of bearing are series NN, ultra precise. All shafts and gears (all grounded on the teeth profile) are made by using high alloy NiCr steel duly treated. The transmission to the main spindle has three gear ratio on true geometric progression driven by a A.C. motor to obtain a continuous range of speed values just to satisfy the cutting speed necessity. All parts are automatically lubricated and lubrication is monitored via PLC into the CNC screen. In case of fault of lubrication the Machine stops automatically and alarm appears on the CNC screen. A hydraulic device locks in the proper position the headstock gears as soon as the required spindle range is engaged. An electric safety system allows the starting of the headstock mechanism only when the above mentioned hydraulic locking has taken place.

3.2

Bed for Tailstock and Carriage

The bed is of 4 ways type. The two front square ways are used for the carriage with turning (option) and grinding units and are of hydrostatic type and are covered with telescopic protections. The two rear ways are flat and are used for the tailstock units. These ways are hardened and ground.

3.3

Tailstock

The tailstock unit, of massive structure and very modern design, incorporates: an extra heavy duty built-in roller bearing revolving seat for centre: two double row roller bearings with an extremely high carrying capacity, take the radial load, instead the axial thrust is carried by a special spherical roller bearings, conveniently preloaded; the tailstock centre is bolted to the above mentioned rotating seat and consequently it can be easily removed and replaced. The centre flange is according to the American Standard; a heat compensation system of the multi-disc-springs type is incorporated in the tailstock spindle and automatically allows the linear expansion of the workpiece; the tailstock quill is equipped with two ways power rapid traverse, individual motor driven type;

08298.doc

Offer N. 11616/00
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Page N. 11

PKTBA JSC PENZA BM-36/CNC a digital strain gauge system, complete of push buttons for the manual data input and readout display, enables to adjust and control the thrust of centre against the workpiece. Final adjustment of the thrust is carried out manually by hand-wheel; an hydraulic system operates the clamping and the unclamping of tailstock unit on bed ways, very simply and quickly, through corresponding push button controls; A.C. motor provides the movement of the tailstock basement.

On the other hand, the tailstock units incorporates the under listed safety systems: two microswitches automatically stop the tailstock spindle travel at both ends; a safety system prevents the power rapid traverse to the tailstock unit in case this one is still clamped on bed ways; a further safety system automatically stops the electric motor of the tailstock , as soon as the proper clamping is obtained; several warning lights and two oil pressure gauges continuously show the operating conditions of the various mechanisms; the electronic strain gauge mounted on the rear of the quill send to the display the value of thrust applied continuously. The lubrication system of tailstock unit includes an oil reservoir and a suitable pump incorporated on the tailstock base and provide a pressure lubrication to the tailstock ways on bed (the oil reservoir for the electro-hydraulic clamping mechanism is completely independent).

3.4

Longitudinal Carriage for Turning and Grinding Unit Hydrostatic

The longitudinal carriage is driven by AC servomotor brushless type very high torque - low inertia. The transmission to the longitudinal movement (Z-axis) is through a double pinion system in mesh with high precision rack. The guideways are of full hydrostatic lubrication type.

3.5

Cross Carriage for Turning Unit Hydrostatic

The cross carriage for turning unit is driven by AC servomotor brushless type very high torque low inertia. The transmission to the cross slide (X1-axis) is obtained through a zero backlash screw. The guideways are of full hydrostatic lubrication type.

3.6

Turning Unit

It consists of a support mounted on the cross carriage on which is allocated a blade tool carrier with manual positioning.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 12

PKTBA JSC PENZA BM-36/CNC The blade is driven by an hydraulic cylinder and can be positioned in 4 different position with steps of 100 mm. The end of the blade is carrying a manual clamping system.

3.7

Cross Carriage for Grinding Unit Hydrostatic

The cross carriage for grinding unit is driven by AC servomotor brushless type very high torque low inertia. The transmission to the cross slide (X2-axis) is obtained through a zero backlash screw. The guideways are of full hydrostatic lubrication type. 3.7.1 Vertical Y axis

Especially for the bigger spheres there could be a difference between the actual and theoretical center of the sphere due to the sag on the piece caused by its weight. This fact produce a lowering of the sphere center in comparison with the Machine center. Since the Machine cover a wide range of sphere sizes, this effect change with different spheres. To prevent this the top part of the cross slide includes a second slide mounted on a slope and driven by an independent servomotor through a zero backlash ball screw (Y axis) which allows a movement on vertical plane of the grinding unit. Thanks to this system the operator can easily move vertically the grinding unit to realign the sphere and the grinding cup.

3.8

Grinding Unit

This head has been expressly studied to be used in combination with the lathe for finishing of spherical portion of the plug. This extremely heavy unit horizontal type, has as main feature a very high spindle diameter to guarantee the maximum of rigidity to the grinding wheel. On the front side of above mentioned spindle is mounted a quick connecting device for the grinding wheel, just to reduce to the minimum the idle time when changing the plug diameter. The spindle drive is obtained by means of a set of belts for a very smooth rotation.

3.9

Numerical Control System

The CNC main board will be located just outside the protection cabin to allow the operator to work close to the tool area. The CNC will be SIEMENS 840D up to 4 axes, namely:

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 13

PKTBA JSC PENZA BM-36/CNC Z for longitudinal carriage for turning and grinding unit; X1 for cross carriage for turning unit; X2 for cross carriage for grinding unit; Y for vertical slide for grinding unit.

The following equipment and functions are foreseen: 12 colour screen TFT + USB port PCU 50 with: * 1.2 GHz * 256 Megabyte RAM memory * 10 Gigabyte Hard Disk * Win XP * Software HMI Advanced All options that Safop will select according to the specific operation needed on the spherical plugs; Programming is fulfilled in metric system in ISO alphanumeric code in increments and in absolute coordinates; Input of controlling program from system panel and USB port; Output of controlling program to USB port; Graphic control of controlling program on the system monitor; Mathematical service (Machine status check, programming errors check, etc.). Linear and circular interpolation Discreteness of dimension setting of 0.001 mm; Spindle override 50120% Feed axis override 0120% Zero offset programmable Tool offset programmable Backlash compensation Parametric programming with logical function (M functions): Constant cutting speed Working area limitation Standard cycles Integrated interface Diagnostic referring to: * CNC status * PLC status * transducers status * machine components status * part program errors * operating errors Language on screen English Ethernet port with LAN connection Teleservice

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Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 14

PKTBA JSC PENZA BM-36/CNC Remote diagnostic / Teleservice The Machine is equipped with the Remote diagnostics of PLC option consisting of: Modem unit; Testing program. The system connects the Machine with the Safops Service Centre allows: Remote diagnosis; Maintenance of the Machine components and PLC updating. Buyer will provide the telephone connection to the Machine. The Remote diagnostic / Teleservice system will be under the control of the Buyer and each connection with Safops Service Centre will be decided and authorized by the Buyer.

3.10

Electrical System with Conditioning Unit

The Machine is supplied with complete electrical equipment including: four A.C. brushless servo drives for Z, X1, X2 and Y axes; A.C. motors to drive the work-piece and the grinding cup; A.C. motors for lubrication, pressurized oil, chip conveyor, coolant oil etc. with full protection and interface; all connections, current collectors, grounding system to protect the rotating parts; push button station, complete; steel locker with automatic releases main switch interlocked with door's opening; interface using static logic. The main equipment is located on air conditioned cabinets connected to the Machine. The cabinets, with inside illumination, contain the converters for the brushless A.C. motors. All the feeding converters sets are of digital type.

3.11

Gap Control

The Machine includes also a special vibration sensor located on the tailstock which detects the contact of the grinding cup with the work-piece. This system reduces the machining time allowing the starting of grinding operations as soon as the contact between cup work piece is detected.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 15

PKTBA JSC PENZA BM-36/CNC

3.12

Workpiece Probe

The Machine is equipped with a workpiece probe to be manually mounted on the tool carrier of the turning blade. The probe is used to check the position of sphere on Z-axis before starting the operations. Transmission of signal is via radio.

3.13

Chip Conveyor and Coolant Unit

The coolant system is complete of tank, paper filter, magnetic separator, pumps and piping. The automatic chip conveyor is of the chains type and it is suitable for carbon steel, alloy steel, inconel chips.

3.14

Protection Cabin

The Machine is designed taking care of the safety and ergonomic specifications and it is fully enclosed in a protection cabin.

3.15

Cups with Tool Holders

Five cups complete with tool holders are included in the supply. The cups are for the following ID ball ranges: 6 - 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 .

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 16

PKTBA JSC PENZA BM-36/CNC

4
4.1

DOCUMENTATION
Instruction books

Safop will provide the Buyer with Instruction books including the following documentation: Sheets of geometric tests Technical specifications Installation, operation and maintenance manual Layout User manual Parts list for mechanical unit Assembling drawings with index Parts list for fluid units Index of fluid diagrams Fluid diagrams (hydraulic, pneumatic and lubrication) Tables of lubricating oils (type, quantity, etc.) Catalogues with use and maintenance instruction of main equipment components, according to the specific standard of each sub-supplier Siemens 840D programming instructions and operator's guide Manual of spindles and axis A.C. servomotors and digital drives Machine diagnostic Parts list of electrics Wiring diagrams PLC (Machine interface) The language of all documents will be English with exception of the market components documentation that shall be in original language or English if available.

4.2

Foundation lay-out

Safop will provide the Buyer with foundation lay-out (basic foundation drawings). The drawings shall show the static loads of the Machine, the erection reference marks, the list and lay-out of anchoring bolts. The civil works for the foundation, including the detailed foundation drawings, will be made by the Buyer.

08298.doc

Offer N. 11616/00
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Page N. 17

PKTBA JSC PENZA BM-36/CNC

4.3

Information from the Buyer

Within 3 months from the Coming into Force of the Contract Safop will send to the Buyer the Provisory Foundation Drawings for approval. Within 1 month their receipt Buyer will send to Safop the approval of the Provisory Foundation Drawings or the comments to allow Safop to prepare the Final Foundation Drawings. A delay of these information will effect the schedule of the project.

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Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 18

PKTBA JSC PENZA BM-36/CNC

5
5.1

TRAINING - INSTALLATION - ACCEPTANCE TESTS


Training

The training at Buyers Plant will be done during and/or after the completion of the Acceptance Tests. Training will be carried out for a period of one (1) week for the following Buyers personnel: Operators and application engineers; Mechanical and hydraulic engineers; Electric, electronic, diagnostic engineers.

5.2

Installation and Commissioning at Buyers Plant

Safop will send English speaking personnel for the installation and commissioning of the Machine. Before the arrival of Safops personnel Buyer has to confirm that the foundation for the Machine is completed and cleaned; the main reference axis of the foundation will be marked, so as to allow a quick check of conformity to the project drawings. During these activities Buyer shall provide at its charge the following: Suitably skilled manpower to assist Safops personnel; Check of the foundation stiffness according to data and procedures supply by Safop Safety provisions and management of safety on Site; Lifting and handling equipment to transport and install the Machine on site; Quick setting cement for the anchor bolts; Covers for the foundation channels-pits; Installation of the parts (plates, chutes, etc.) manufactured by the Buyer according to Safops drawings Arrangement of telephone/fax machine with international connection. All relevant cost and consumption bills will be paid directly by Buyer; Warehousing, preservation and storage before erection of the equipment and materials delivered by Safop; Provision of tools, equipment and facilities required for erection, erection consumables and supply at pre-agreed Take Over Points close to the erection areas of: - Electrical power - Compressed air - Telephone line Disposal for waste materials Medical Care with on-site first aid

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PKTBA JSC PENZA BM-36/CNC

5.3

Acceptance tests

5.3.1

Pre-Acceptance Tests at Safops plant

Before shipping the Machine will be tested at Safops plant. The Pre-Acceptance Tests will be carry out by Safop at the presence of Buyers engineers and will consist in: checking the completeness of the Machine and accessories to be according to the contract; geometrical, positioning and machining tests according to the Safop Tests Tables; functional tests. Safop will be responsible for: programming; supply the tools. If required a machining test on one suitable sphere will be carried out (only turning). In this case the sphere will be provided by the Buyer at its expenses. 5.3.2 Final Acceptance Tests at Buyers Plant

The Final Acceptance Tests at Buyers Plant will be carried out by the Safops personnel after installation with the aid of Buyers personnel and will consist in: repetition of the Pre-Acceptance Tests; machining of one test piece (sphere) to be agreed between Buyer and Safop. Buyer will be responsible for: arrange all items required for the tests including the test piece; supply the tools (if not included in the Safops supply) and preparation of the part program; machining of the test piece. For the machining of the test piece Safop will be responsible to make available presence of its personnel to guarantee the working order of the Machine. At the successful completion of the tests the Final Acceptance Certificate will be issued. 5.4 Expenses for Buyers and Safops personnel

Buyer and Safop will provide for their own personnel: Return air ticket Board and lodging Local transportation Working lunches will be provided by the host in its canteen.

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Offer N. 11616/00
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Page N. 20

PKTBA JSC PENZA BM-36/CNC

6
6.1

SCOPE OF SUPPLY
Basic supply

The basic supply includes the following: 1 headstock 1 bed for tailstock and carriage 1 tailstock 1 hydrostatic longitudinal carriage for turning and grinding unit 1 hydrostatic cross carriage for turning unit 1 turning unit 1 hydrostatic cross carriage for grinding unit 1 grinding unit 1 Numerical Control System 1 electrical system with conditioning unit 1 gap control system 1 workpiece probe to be mounted on the turning blade 1 chip conveyor 1 coolant unit 1 protection cabin for the enclosing of the Machine 6 cups, complete of tool holders for spheres ID 6 36 1 automatic lubricating system 1 set of leveling and anchoring bolts 1 set of wrenches and spanners for maintenance 2 sets of Technical Documentation including: - instruction books - foundation lay-out Training Installation and Acceptance Tests 6.2 Exclusions

In the Safops scope of supply the following items are excluded: Electrical, pneumatic and telephone connection to the Take Over Point (see item 1.3.2); Foundation works and related detailed foundation drawings; Foundation covers and other metallic parts to be placed on the foundation according to Safop drawings; Swarf bins; First oil filling up; Tools and consumables; Spares; Lifting and handling equipment to transport and install the Machine on site; Everything not expressly mentioned in this Offer.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 21

PKTBA JSC PENZA BM-36/CNC

7
7.1

GENERAL TERMS OF SALES


Budget Prices

7.1.1

Basic Supply

Budget Prices of the Basic Supply as per Scope of supply of Section 6 (machine for grinding operations): Description 1 (one) Ball Matic-36/CNC Ex works Safop Price (Euro) 1,230,000.=

7.2

Delivery time

The Machine shall be ready for testing in Safops works within 12 months from the Coming into Force of the Contract (date of issuing of Letter of Credit).

7.3

Terms of delivery

The Machine shall be delivered EXW Safop Pordenone Italy. All delivery terms are according to Incoterms 2010.

7.4

Terms of payment

The total Contract Price shall be paid through 100% Irrevocable and Confirmed Documentary Letter of Credit opened by the Buyer in favour of Safop. The Letter of Credit shall be opened for a sufficient period of validity and shall be payable at sight at the counters of Safop's Bank in Italy as follows: Thirty percent (30%) of the total Contract Price as Advance Payment to be paid upon signing of the Contract. Seventy percent (70%) of the total Contract Price against presentation of shipping documents. Letter of Credit shall be drawn by Safop at shipment against presentation of the following documents: - Invoice in two copies; - Packing list in two copies; - Usual shipping documents, such as Bill of Lading.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 22

PKTBA JSC PENZA BM-36/CNC The Letter of Credit shall be subject to the Uniform Customs and Practice for Documentary Credits, UCP latest version, Publication n. 600. In the event of any delay by Buyer in opening the Letter of Credit in accordance with the above schedule, Safop's Contract Time shall be extended by an adequate period of time. All bank charges and fees connected with issuing, confirming and extending the Letter of Credit and payment orders shall be for Buyer's account. Different terms of payment to be discussed.

7.5

Warranty on materials

The Safop warrants that the Machine is produced with the very best materials by specialized workmanship and shall be free from defects in workmanship and materials. The Warranty Period for the Machine shall be twelve (12) months from Final Acceptance of the Machine, but not more than eighteen (18) months from the readiness of the Machine at Safops plant which one occurs first. The warranty is limited to the repair and replacement free of charge of any part which are proven to be defective and does not apply for consumables and parts subject to wear. All expenses such air transportation, custom clearance, working time, intervention of Safops personnel will be born by Safop. The warranty does not apply if the Machine has been subjected to accident, neglect or abuse.

7.6

Packing

Packing is not included in the price of Machine.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 23

PKTBA JSC PENZA BM-36/CNC

7.7

Taxes, Duties and Levies

The prices of this proposal are to be considered net of any current or future taxes, levies, interest payments, personal or corporate taxes, or other charges (no matter what type) arising subsequent to the delivery levied by the Government and/or Authorities in Buyers country.

7.8

Coming into Force of the Contract

The Coming into force of the Contract shall be the date of receipt of Down Payment as per item 7.4.

7.9

Force Majeure

All external or extraordinary events not known at the moment of the signing of the Contract, which shall occur independently from the will and control of the Parties and whose effects cannot be avoided with the means as required by the damaged Party, can be considered as "Force Majeure". During the Force Majeure period, the obligations of both Parties shall be interrupted and the penalties foreseen for the non-fulfilment of the Contract shall not apply. Force Majeure shall include but not be limited to the following matters: war or hostilities, embargo, earthquake, flood, or other natural or sanitary disaster, strike or lock-out. The Party damaged by the event of Force Majeure shall have to prove the existence of the same by means of formal documents.

7.10

Arbitration

Any controversy which may arise between the Parties on the interpretation and execution of the Contract and which are not solved by the Parties through mutual discussions, shall be entrusted to the judgment of three arbitrators who shall reach their verdict which shall be inappellable and shall bind the Parties as if it had been agreed by them. Each Party shall appoint one arbitrator, while the third, acting as President, shall be chosen by the two aforementioned arbitrators. The arbitrators shall make an impartial judgment, without formalities. The arbitration site shall be Geneva-Switzerland. 7.11 Validity of the offer

This offer will be valid up to December 31st, 2011. After this date Safop shall be entitled to revise the prices and terms.

08298.doc

Offer N. 11616/00
THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SAFOP SPA NOT DISCLOSABLE, NOT REPRODUCIBLE. ALL RIGHTS RESERVED.

Page N. 24

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