Guarantee

1. The Sellers guarantee that:

1.1. The equipment supplied and technological process, automation and mechanization are in full accordance with the highest world technical achievements and meet the highest standards for this type of the equipment existing at the time of delivery.

1.2. High quality of the materials used in the manufacture of the equipment and high quality of the manufacture and assembly.

1.3. The equipment to be supplied has been manufactured in full conformity with the description, technical specification and with the conditions of the Contract.

1.4. The completion of the equipment to be delivered and the technical documentation supplied is in accordance with the requirements specified in the Contract.

2. The period of guarantee of the normal and trouble-free operation of the equipment is to be 12 months from the date of putting it into operation but not later than 18 months from the date of shipment of the complete equipment. The above period will be accordingly extended if start-up of the equipment is deferred or the operation of the equipment is stopped.

3. If the defects cannot be eliminated, the Buyers have the right to reject the defective equipment or to request a corresponding reduction from its price. In case the Buyers reject the equipment the Buyers shell return the Sellers for the latter’s account the faulty equipment and the Sellers are to repay the Buyers with 7% interest per annum.

4. If during the commissioning period and/or during the guarantee period the equipment or technical documentation prove to be defective and/or incomplete and/or not in conformity with the Contract conditions, then irrespective of the fact that such deficiencies could be found during the Sellers’ or their subcontractors’ works, the Sellers undertake to eliminate at their expense the detected defects immediately at the Buyers’ request by means of repairing or replacing the defective equipment or parts thereof with new ones of good quality.

In this case the Buyers are entitled to demand from the Sellers payment of penalty for delay in delivery at the rate and in accordance with the procedure stipulated in the Contract, beginning from the date when the claim has been made till the date elimination of the defect or till the date of delivery of new equipment instead of the rejected one.

5. The replaced defective technical documentation, equipment and/or units are to be returned to the Sellers at their request for their account within the period agreed upon by the Parties. All the transport charges and other expenses connected with the return and/or the replacement of the defective equipment both on the territory of the Buyers’ country and the transit country as well as on the territory of the Sellers’ country are to be borne by the Sellers.