1 CONTRACT No.

67
-

Moscow

, 2014

The Corporation Hindustan Aeronautics Ltd, Sukhoi Engine Division, Koraput, India, hereinafter referred to as the CUSTOMER, on the one hand, and Avitronic Ltd., Moscow, Russia, hereinafter referred to as the SUPPLIER, on the other hand, have concluded the present Contract on the following:

1.

SUBJECT OF CONTRACT

1.1. The SUPPLIER undertakes to deliver to the CUSTOMER, and the CUSTOMER undertakes to accept and pay for, on the terms and conditions stipulated in this Contract, the goods in accordance with Annexes I, II to the present Contract.

2.

COST OF DELIVERED GOODS

2.1. The prices for the goods under the present Contract are quoted in US dollars and understood as CIF - port o f Visakhapatnam, India, according to INCOTERMS-2010 issued by International Chamber o f Commerce. 2.2.The amount payable for the goods to be delivered against Annex I to the present Contract is 387 604, 80 (three hundred eighty seven thousand six hundred four and 80/100) US dollars. 2.3. The delivery o f the goods is permitted in the limit o f +/- 10 per cent against each line of quantity specified in Annex I and the corresponding variation o f their amounts in USD will also be taken into account.

3.

DELIVERY TERMS

3.1. The goods mentioned in Annex I to the present Contract shall be delivered within 8 month from the date of signing the Contract. The date o f Bill o f Lading shall be considered as the date of the goods delivery. 3.2. Fourteen days prior to the supposed date o f shipment the SUPPLIER shall forward to CUSTOMER by fax/e-mail one set o f copies o f the following shipping documents in English: original commercial invoice - 1 copy; original bill o f lading - 1 copy; original quality certificate - 1 copy; original packing list - 1 copy; original insurance policy issued to the CUSTOMER'S name on terms CIF- port of the CUSTOMER - 1 copy. 3.3. Partial shipment is allowed. 3.4. In the event o f SUPPLIER failure to deliver the goods by the date specified in the Contract, the CUSTOMER may recover from the SUPPLIER as liquidated damages the sum o f 0.5% o f the Contract price of the undelivered Goods for delay o f each week or part o f week, but not more than 10% o f the undelivered Goods under Annex I to the present Contract. 3.5. Any demurrage charges paid by the clearing authority on account o f delayed delivery of requisite documents or error in the documents provided by the SUPPLIER & attributable to SUPPLIER, the same will be to the account o f SUPPLIER. 3.6. The CUSTOMER shall ensure acceptance o f the goods at the port o f destination and shall carry out all import and other formalities regarding import o f the goods to India. 3.7. The inscriptions on the goods and the shipping documents shall be made in English language. As an exceptional case in specific circumstances, it is allowed to prepare the shipping documents in Russian. 3.8. The goods are considered to be delivered to the CUSTOMER: by quantity and weight - according to the number o f cases and/or the weight indicated in the international shipping document (Bill o f Lading); CUSTOMER SUPPLIER