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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 roughly 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 nondelivery 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 majecure 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 will 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 has to pay back the Buyer the sum having been paid plus interest rate and has to compensate all actual and documents losts arising due to cancelling 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. In the event of late Delivery for reasons other than force majeure as defined in Clause 17 above, the Seller shall pay as liquidated damages and not as penalty the sum of 5% of the value of the undelivered part per Day of late Delivery up to a maximum of 25% of the price payable under Clause 9 below. Payment of liquidated damages shall be due without the Buyer having to furnish proof of any loss, damage or injury. 8. 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.