Article 9. Events of default

The occurrence of any of the following events shall constitute the event of default (hereinafter called ‘the Event of default’) hereunder;

1. If the Borrower fails to pay on the due date any sum which is expressed to be due and payable hereunder (unless such failure is due solely to technical reasons and does not last for a period of more than fifteen (15) days following the date of notice thereof from the Lender.

2. If the Borrower commits breach of or fails to observe any of its obligations or undertaking under this Agreement (other than 1.above) and such breach continuous for thirty (30) days after notice thereof has been received by the Borrower from the Lender.

3. If any representation, warranty, resolution or transactions made by the Borrower in or pursuant to this Agreement or in any document or statement delivered or made pursuant hereto is or becomes incorrect in any material respect and, if subject to cure, is not cured within fifteen (15) days from date of receipt by the Borrower of notice given by the Lender of such incorrectness.

4. If the Borrower fails to pay within fifteen (15) days as from its Letters of Credit, Letters of Guarantee and Loan Agreements with the Lender, the Lender’s affiliates or subsidiaries, the Lender’s parent company, Nisso Iwa Corporation, a Japanese corporation (‘NIC’) or NIC’s affiliate or subsidiaries, and such failure does not result from the introduction of any law in the country of the currency where the payment is to be made and making it unlawful or impossible for the Borrower to make such payment in such country.

5. If any order is made or an effective resolution is passed or analogous proceedings are taken for the liquidation or dissolution of the Borrower or if any event occurs which under the laws of Russia shall have an equivalent effect.

6. If the Borrow fails to observe any material term of any and all Letters of Credit, Letters of Guarantee and Loan Agreements with the Lender, the Lender’s affiliates or subsidiaries, the Lender’s parent company, Nisso Iwa Corporation, a Japanese corporation (‘NIC’) or NIC’s affiliate or subsidiaries to be performed or observed by the Borrower and if the effect of such failure is it permit the acceleration of any payment under such agreement.

Then, in any such event and at any time hereafter if any such event then continuous

the Lender may by notice to the Borrower;

a. If no drawing has been made hereunder, declare that the Agreement shall be cancel-

led whereupon the same shall be cancelled forthwith and all amounts payable and

hereunder shall become forthwith due and payable.

b. Declare the outstanding amount under this Agreement to be immediately due

and payable together with accrued interest and all other sums payable hereunder

whereupon the same shall become forthwith due and payable.

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