Contract№Coal-369dd21.06.2010betweenCrystallFluoriteMongoliaLLCandORIENT(HONGKONG)GROUPCO.LTDSELLER_____________________________BUYER____________________________Mr.SkuratovMaximMr.GuanJiEnPage1CONTRACTNo.COAL-369June21,2010ThefirmCrystallFluoriteMongoliaLLC,hereinafterreferredtoastheSeller,ontheonehand,and“ORIENT(HONGKONG)GROUPCO.LTD”,HongKong,China,hereinafterreferredtoastheBuyer,ontheotherhand,havedraftedandconcludedthepresentContract(TheContract)asfollows:1.SUBJECTOFTHECONTRACT1.1.TheSellerhassoldandtheBuyerhasbought600000metrictons+40%inSeller’soptionofcokingcoalinbulkshippedbytrucksproducedbythe“TavanTolgoi”Joint-StockCompany,Mongolia,hereinafterreferredtoasthe“Goods”,onthetermsDAFGantsModborderstationaccordingtothefollowingcontractspecification:MOISTUREasreceived,%ASHonairdrybasis,%SULPHURonairdrybasis,%VOLATILEondryashfreebasis,%PLASTOMETERINDEX“Y”GINDEX(G)ROGAINDEX(RI)CALORIFICVALUENET,kcal/kgSIZEMAX3,0MAX12,0MAX0,8MAX27MIN15MMMIN80MIN70MIN62000-300MMQualityoftheGoodsmustbeconfirmedbycertificatesofqualityissuedbyIndependentLaboratory(MiningInstitute)attheLoadingStationandIndependentLaboratory(CIQ,etc.)attheDischargingstation.2.PRICEOFTHEGOODSANDPERIODOFDELIVERY2.1.ThepriceoftheGoodsisUSdollarspermetrictononDAFGantsModborderstationaccordingwithIncoterms2000(ICCpublicationNo.600)shouldbeinAddendumstoTheContract.PriceshouldbeconfirmedeverythreemonthsbyThePartiesandindicatedinAddendumstoTheContract.Finalquantitysettlementwillbebasisofcustom’sscalesfromGantsModborderstation,andfinalqualitysettlementwillbebasisofIndependentLaboratory(CIQ,etc)fromGantsModborderstation.IncasetheresultsoftheCertificateofQualityattheLoading/Dischargingstationfalloutsidethespecificationlimitsasperclause1ofthepresentcontractthefollowingadjustmentswillbeappliedonDAFprice:A)Ash:Shouldtheashcontentonairdrybasisexceed12,0%upto16,0%thentheDAFpricepermetrictonshallbereducedbyUSD0,5PerMTforevery1,0%above12,0%withfractionprorata.Shouldtheashcontentonairdrybasisexceed16,0%upto23,0%thentheDAFpricepermetrictonshallbereducedbyUSD2,0PerMTforevery1,0%above16,0%withfractionprorata.Shouldtheashcontentonairdrybasisexceed23,0%thenrejectionofTheGoods.Contract№Coal-369dd21.06.2010betweenCrystallFluoriteMongoliaLLCandORIENT(HONGKONG)GROUPCO.LTDSELLER_____________________________BUYER____________________________Mr.SkuratovMaximMr.GuanJiEnPage2B)Sulphur:ShouldtheSulphurcontentonairdrybasisexceed0,8%thentheDAFpricepermetrictonshallbereducedbyUSD0,3PerMTforevery0,1%above0,8%withfractionprorata.C)VolatileMatter:ShouldtheVolatileMattercontentondryashfreebasisexceed27%upto30%thentheDAFpricepermetrictonshallbereducedbyUSD0,8PerMTforevery1,0%above27%withfractionProrata.ShouldtheVolatileMattercontentondryashfreebasisexceed30%upto35%thentheDAFpricepermetrictonshallbereducedbyUSD2,0PerMTforevery1,0%above30%withfractionProrata.ShouldtheVolatileMattercontentondryashfreebasisexceed35%thenrejectionofTheGoods.D)PlastometerIndexY:ShouldthecontentofPlastometerIndexYbelow15mmupto13mmthentheDAFpricepermetrictonshallbereducedbyUSD1,0perMTforevery1mmwithfractionprorata.ShouldthecontentofPlastometerIndexYbelow13mmupto10mmthentheDAFpricepermetrictonshallbereducedbyUSD2,0perMTforevery1mmwithfractionprorata.ShouldthecontentofPlastometerIndexYbelow10mmthenrejectionofTheGoods.E)GINDEX(G):ShouldtheGIndexGbelow80upto70thentheDAFpricepermetrictonshallbereducedbyUSD0,5perMTforevery1pointwithfractionprorata.ShouldthecontentofGindexGbelow70thenrejectionoftheGoods.Incasemonth'splanofdeliveringTheGoodswillbenon-fulfilledbySeller's,TheSellermustpaypenaltytoTheBuyeraccordingtothenextformula:Ifnon-deliveredquantityofTheGoodsisfrom1mtupto5000mtthen:Penalty=(50000-deliveredvolume)*1,0USDIfnon-deliveredquantityofTheGoodsisfrom5001mtupto10000mtthen:Penalty=(50000-deliveredvolume)*2,0USDIfnon-deliveredquantityofTheGoodsisfrom10001mtupto20000mtthen:Penalty=(50000-deliveredvolume)*3,0USDIfnon-deliveredquantityofTheGoodsismorethan20000mtthen:Penalty=(50000-deliveredvolume)*5,0USDandTheContractiscanceled.PenaltymustbepaidbyT/TbyTheSellerinaccordancewithBuyer’sinvoicewithinthreeworkingdaysafterreceivinginvoicebye-mailorfax.Incasecomplicatedweatherconditions(heavyrainorheavysnow)whichwerecauseofnon-fulfillmentofmonth’splanofdeliveringofTheGoodsPenaltywillnotbeapplied.SuchweatherconditionsshouldbeconfirmedbythecertificatefrommeteorologicalagencyofMongoliaissuedinEnglish.TheSellermustsendthiscertificatetoTheBuyerbye-mailwithinoneworkingdaysafterreceivingcertificatefrommeteorologicalagency.2.2.PeriodofshipmentJuly2010–July2011withthefollowingschedule:-upto70000mt,min50000mtineverymonth.AccuratevolumeforeverymonthsisindicatedinAddendumstoTheContract.TotalvolumeofTheContractisupto840000mt,minimumis600000mt.ThedateofdeliveryshallbethedateofstamponconsignmentnoteatthebordercrossingstationGantsMod.Thestationoftrans-loadingisGantsmod.Contract№Coal-369dd21.06.2010betweenCrystallFluoriteMongoliaLLCandORIENT(HONGKONG)GROUPCO.LTDSELLER_____________________________BUYER____________________________Mr.SkuratovMaxi