Block 1

FOCUS 1

Contract No …

For Oil Products in Bulk, c.i.f. Terms

BLOCK 1

This contract is made between ZAO Rosexport, Moscow, hereinafter called “Sellers” and … hereinafter called “Buyers”, whereby it is agreed as follows:

1. SUBJECT OF THE CONTRACT. Sellers have sold and Buyers have bought c.i.f.: … … … … … … … … … … … … … … … … … … … … … ….

2. QUALITY. The goods under the present contract shall be of the following specification: … … … … … … … … … … … … … … … … … ….

3. PRICE. … … … … … … … … … … … … … … … … … … … ….

4. TIME OF DELIVERY. The goods sold under the present contract are to be delivered by Sellers and accepted by Buyers … … … … … … … ….

The date of the Bill of Lading to be considered as the date of delivery.

5. PAYMENT. Payment for the goods sold under the present contract is to be effected out of an irrevocable confirmed Letter of Credit to be opened by Buyers in US Dollars with … Bank, Moscow, or with … Bank in favour of Sellers for the value of each lot of the goods to be shipped plus 10 per cent. The Letter of Credit to be valid 45 days.

The Letter of Credit to be opened not later than 15 days before the agreed time of shipment of each lot of the goods. Expenses in connection with the opening, amendment and utilization of the Letter of Credit to be paid by Buyers.

Should Buyers fail to open the Letter of Credit in time, they are to pay Sellers a fine for each day of the delay, but not more than for 20 days, at the rate of 0.1 per cent of the amount of the Letter of Credit and in that case Sellers shall have the right not to load the tanker until the Letter of Credit has been opened. Should the delay in the opening of the Letter of Credit exceed 20 days, Sellers shall have the right to refuse to deliver the goods which were to be paid for out of this Letter of Credit. And in all the above cases demurrage and dead freight paid by Sellers in connection with the delay in the opening of the Letter of Credit are to be repaid by Buyers. Payment out of the Letter of Credit is to be made against presentation by Sellers to the Bank for Foreign Trade of Russia in Moscow of the following documents:

q Commercial Invoice.

q Insurance Policy or Certificate of Insurance.

q … … … … … … … … … … … … … … … … … …

The rate of exchange of U.S. dollars into.. … … … … … …

6. DELIVERY AND ACCEPTANCE. The goods are considered to be delivered by Sellers and accepted by Buyers in respect to quantity: as per weight indicated in the Bill of Lading in conformity with the measurements of the shore tanks at the port of loading, and in respect to quality: as per certificate of quality issued by a laboratory at the port of loading. The weight stated in the Bill of Lading is to be considered final and binding upon both parties.

Previous to loading the goods, 4 arbitration samples are to be taken from each of the shore tanks from which the goods are to be loaded in the carrying tanker. These samples are to be sealed by Sellers as well as by the Master of the vessel. 2 samples are to be handed over through the Master of the vessel to Buyers and the 2 other samples are to be retained by Sellers. Both parties shall keep these samples for 2 months from the date of delivery.

In case of a dispute on the quality of the goods in connection with divergency in the analyses of the arbitration samples made by Sellers’ and Buyers’ laboratories, an analysis which is final and binding upon both parties is to be made by a neutral laboratory agreed upon by the parties.

7. INSURANCE. Sellers are to insure the goods for their account against usual marine risks including risks of leakage exceeding 1 per cent with Ingosstrakh of Russia in accordance with the Transport Insurance Rules of Ingosstrakh for the amount of the invoice value of the goods plus 10 per cent. The goods may be insured against war and other risks upon special request of Buyers and for Buyers’ account. The Insurance Policy is to be made out in the name of Buyers or another person according to their instructions and is to be sent together with other shipping documents.