CONTRACT ON PROCESSING OF DAWAL RAW MATERIAL No.

______ ______

Executor: ______ in the person of ______ acting on the basis of the Charter, on the one hand,
and
The customer: ______, represented by the director ______ acting on the basis of the Charter,
on the other hand, referred to when the “Parties” are jointly mentioned, in accordance with the
current legislation, concluded this contract for the processing of raw material, hereinafter
referred to as the “Agreement” as follows:

1. THE SUBJECT OF THE AGREEMENT

1.1. Under the terms of this Agreement, the Customer instructs, and the Contractor undertakes
to perform work on the processing of raw material into the finished product. The Customer
undertakes to accept the finished product and pay the cost of the Contractor’s work.
1.2. The cost of the Contractor’s work is indicated in the Supplementary Agreements to this
Agreement.
1.3. The total cost of the Contractor’s work under this Agreement is determined by the sum of
the cost of the Contractor’s work under all Supplementary Agreements.

2. Daval raw materials

2.1. The manufacture of finished products is made from customer-supplied raw materials. The
name (assortment), quantity and quality of raw materials supplied by customer are specified in
the Supplementary Agreements, which are an integral part of this Agreement.
2.2. The total cost of the raw material supplied for processing and the price of each type of raw
material are indicated by the Parties in the Supplementary Agreements to this Agreement.
2.3. The quality of raw materials supplied by customer must comply with the technical
conditions (TU) and state standards (DSTU) operating in Ukraine and be confirmed by a
passport (certificate) of the quality of the manufacturer of the raw materials.
2.4. The raw materials supplied by customer shall be supplied by the Customer to the
Contractor according to the approved schedule, subject to the terms of delivery of the DDP -
______.
2.5. The customer makes the supply of raw materials in road or rail tankers. When supplying
raw materials in rail tank cars, only four-axle wagons are used. Shipment of customer-supplied
raw materials is carried out according to the details specified in the Supplementary
Agreements. The customer shall compensate the Contractor for the costs associated with the
rolling stock turnover, according to the Contractor’s invoice.
2.6. The date of delivery of raw materials supplied by the customer shall be the date indicated
in the acceptance certificate for the supply of raw materials supplied by the customer.
2.7. Acceptance of raw materials in terms of quantity and quality is performed at the
Contractor’s warehouse in accordance with clause 4.1. of this Agreement, with the participation
of the representative of the Customer.
2.8. In case of violation of the schedule for the supply of raw materials due to the fault of the
Customer, the latter is obliged to compensate the Contractor for all costs that have arisen in
connection with such a violation, within three banking days from the date of the presentation
of the relevant requirements by the Contractor. Compensation is made by transferring money
to the bank account of the Contractor, unless the Parties agree on a different method of
compensation.
2.9. When supplying low-quality raw materials, the Customer undertakes, within three banking
days after drawing up an act of non-compliance with the quality of the supplied raw materials,
to export a batch of such raw materials at its own expense. In this case, the Manufacturer shall
not be liable for violation of the terms for the manufacture of finished products. If the Parties
reach a mutual agreement on the processing of poor-quality raw materials, the Manufacturer
shall not be liable for the quality of the finished product.
2.10. The customer guarantees that the raw material for sale is exempt from the rights of third
parties and does not require customs clearance.
2.11. The contractor is fully liable for the safety of raw material, compliance with the
technology of its processing and excess losses.

3. READY PRODUCTS
3.1. The result of the work performed under this Agreement is the finished product. The name
(range), quantity and quality of finished products are specified in the Supplementary
Agreements, which are an integral part of this Agreement. Ownership of the finished product
belongs to the customer. The price and total cost of the finished product is indicated in the
Supplementary Agreements.
3.2. The quality of the finished product must comply with the technical specifications (TU) and
be confirmed by the manufacturer’s quality certificate (certificate).
3.3. From the delivered quantity of raw material, the quantity of finished products must be
made, which is determined according to the following order:
in the Contractor’s laboratory, the fractional composition of the raw materials obtained on a
customer’s basis, the number of losses and the remainder are determined by mass method;
The parties draw up an Addendum to this Agreement, in which they indicate the agreed
quantity of finished products, which are produced from the Customer’s customer-supplied raw
materials on the basis of laboratory analysis data. The amount of losses is increased by the
technological losses obtained in the industrial production of finished products, which are
______ and are subtracted from the share of light distillates of the lightest fraction.
3.4. The term processing raw materials into finished products
3.4. The term for processing raw material into finished products is specified in the
Supplementary Agreements to this Agreement.
3.5. The Contractor shall notify the Customer in writing of the readiness of the batch of finished
products for shipment within two banking days from the date of manufacture.
3.6. Acceptance of finished products by quantity and quality is made at the Contractor’s
warehouse in accordance with clause 4.1. of this Agreement, with the participation of the
representative of the Customer. The customer is obliged to accept the finished product and sign
the act of acceptance. If the acceptance process reveals any shortcomings in the finished
product, this should be reflected in the act. If the Customer accepted the work without
verification, he is deprived of the right to refer to such shortcomings, if they could be identified
with the usual method of acceptance.
3.7. Finished products must be supplied by the Contractor to the Customer on EXW terms - the
Contractor's free warehouse, according to Incoterms in the 2010 edition.
3.8. The date of delivery of finished products is the date specified in the act of reception and
transmission of finished products.
3.9. Within three banking days after the signing of the act of acceptance of the finished
product, the Contractor is obliged to submit to the Customer a report on the use of raw
materials supplied by the customer, information on waste (both suitable and not for further
sale).
3.10. The contractor makes the shipment of finished products to the customer in road or
railway tanks. When shipping finished products to rail tank cars, only four-axle cars are used.
The customer shall compensate the Contractor for the cost of the railway services in terms of
rolling stock turnover, according to the Contractor’s invoice.
3.11. The customer is obliged to choose finished products from the warehouse of the
Contractor within ______ banking days from the date of signing the act of receiving the transfer
of finished products.

4. RECEPTION OF RAW MATERIALS AND READY PRODUCTS

4.1. The Contractor performs acceptance of the Goods in accordance with the Instructions on
the procedure for receiving, transporting, storing, dispensing and accounting for oil and oil
products at enterprises and organizations of Ukraine. Approved by order of the Ministry of Fuel
and Energy of Ukraine, the Ministry of Economy of Ukraine, the Ministry of Transport and
Communications of Ukraine, the State Committees of Ukraine on Technical Regulation and
Consumer Policy of May 20, 2008 No. 281/171 / 578/ 155, in accordance with the current
legislation of Ukraine, as well as with the terms of this Agreement and its Supplementary
Agreements.
4.2. Unloading and processing of raw materials is carried out only after agreement and signing
of the Supplementary Agreement by the Parties. If the Additional Agreement is not signed
within two banking days from the moment the raw materials are received, the Customer is
obliged to export the raw materials in the manner specified in clause 2.9. actual agreement.

5. PROCEDURE FOR CALCULATIONS FOR PROCESSING OF THE DAWAL RAW MATERIALS

5.1. The cost of the Contractor’s services for processing one ton of raw material supplied by the
customer and the cost of the Contractor’s services for processing the raw materials supplied by
the customer are indicated in the Supplementary Agreements to this Agreement.
5.2. Payment for the services of the Contractor is carried out by non-cash payments to the bank
account of the Contractor, within two banking days from the date of delivery of raw material
supplied by the customer.
5.3. By mutual agreement of the Parties, payments for the processing of raw material can be
carried out by transferring a part of the customer’s raw material or a part of the finished
product to the Contractor’s property. The name, quantity and cost of raw materials or finished
products, which are transferred to the Contractor in the calculation for processing raw
materials, are specified in the Supplementary Agreements to this Agreement.
5.4. Final calculations between the Contractor and the Customer for the processing of raw
material supplied by the customer are made within five banking days from the date of delivery
of the finished product.
5.5. The parties monthly on the fifth day, make reconciliations of mutual settlements (with the
drawing up of reconciliation acts at the request of the Contractor) and the provision of each of
the Parties with the relevant primary documentation.
5.6. In connection with changes in costs, the Contractor may change the cost of processing raw
materials on a customer’s order, and he must notify the Customer in writing within ten
calendar days.

6. RESPONSIBILITY OF THE PARTIES

6.1. If the Contractor fails to deliver finished products to the Customer within the prescribed
period, the Contractor shall pay the Customer a penalty of 30% per year of the value of the
undelivered finished products for the period of delay.
6.2. In case of violation of the terms specified in clause 5.2., The Customer shall pay the
Contractor a penalty in the amount of the NBU double rate for the period of delay. The
contractor can stop the processing of raw materials or the shipment of finished products to the
full repayment of debt by the Customer and is not responsible for their actions.
6.3. Claims on the quality and quantity of raw materials and products supplied under this
Agreement shall be made by the parties in writing within three banking days from the moment
of discovery and confirmed by acts drawn up by an independent company
6.3. Claims on the quality and quantity of raw materials and products supplied under this
Contract are made by the parties in writing within three banking days from the moment of
discovery and confirmed by acts drawn up by an independent competent authority, which / e
are determined by the Parties in the Supplementary Agreements to this Contract.
6.64 The Contractor is responsible for the safety of raw materials, their incorrect use (in
violation of the approved processing technology) and the Customer’s finished products in the
amount of their value specified in the Supplemental Agreement to this Agreement.
6.7. The Parties shall compensate each other for losses incurred as a result of non-performance
or improper performance of obligations under this Agreement, except for non-performance of
obligations due to force majeure circumstances.
6.8. Payment of the penalty does not relieve the guilty Party from fulfilling its obligations under
this Agreement.

7. SETTLEMENT OF DISPUTES
7.1. In case of any disputes arising from the Agreement or in connection with it, the Parties
undertake to resolve them through negotiations.
7.2. If the Parties do not reach a consensus on any of the clauses of this Agreement, or on the
amendment or termination of the Agreement, the dispute shall be referred to the Economic
Court of Donetsk Region.

8. FORCE MAJEURE
8.1. The parties shall be released from liability for partial or complete non-fulfillment of
assumed obligations, if this non-fulfillment resulted from force majeure circumstances that
arose after the conclusion of this Agreement, as a result of extraordinary events that the parties
could neither foresee nor prevent by reasonable measures (hereinafter force majeure ).
8.2. Upon the occurrence and (or) termination referred to in clause 8.1., The Party that has
learned or should have learned about this fact is obliged to notify the other Party within fifteen
days, attaching the appropriate confirmation (certificate issued by the Ukrainian Chamber of
Commerce and Industry is sufficient confirmation of the presence and duration of force
majeure).
8.3. In the absence of timely notification, the guilty party is obliged to compensate the other
party for the losses caused by non-notification or late notification of the occurrence and (or)
termination of force majeure circumstances.
8.4. The onset of force majeure increases the period of execution of the Treaty for the duration
of such circumstances. If the specified circumstances will last more than a month, then the
Parties are obliged to agree on the further fulfillment of obligations under this Agreement or to
decide on its termination.

9. TERM OF CONTRACT AND OTHER TERMS

9.1. This Agreement enters into force from the moment of its signing by the Parties and is valid
until ______ year, and in terms of mutual settlements until their full completion.
9.2. In all other respects that are not stipulated in this Agreement, the Parties are guided by the
current legislation of Ukraine, as well as the conditions stipulated and interpreted in
accordance with the International Rules for the Interpretation of Commercial Terms Incoterms
2010.
9.3. This Agreement is made with the full understanding of the Parties to the subject of the
Agreement and replaces any agreement on this subject, previously concluded orally or in
writing. Any oral discussion regarding the subject matter of the Treaty is hereby excluded.
9.4. The text of this Agreement, any materials, information and communications that relate to
this Agreement are confidential and cannot be transferred to third parties without the prior
written consent of the other Party, unless such transfer is connected with obtaining official
permission, documents for the execution of this Agreement or paying taxes, other obligatory
payments, as well as in other cases stipulated by the legislation of Ukraine.
9.5. All Additional Agreements to this Agreement, as well as other documents formed during its
execution, are an integral part of it and are valid if they are made in writing, sealed and signed
by authorized representatives of the Parties.
9.6. The Parties undertake to notify each other in the event a decision is taken on the
liquidation, reorganization or bankruptcy of one of the Parties no later than three calendar days
from the date of the adoption of such a decision. At the same time, the Parties notify each
other about changes in postal, legal address or bank details.
9.7. This Agreement is drawn up on five pages in duplicate, one for each of the Parties. Both
copies have equal legal force.

10. LEGAL ADDRESSES AND BANKING DETAILS

Artist: ______

Customer: ______
SIGNATURES OF THE PARTIES