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Liabilities and Indemnities

General Terms and Definitions | Obligations of the Contractor | Representative Office of K | Payment Procedures |


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  1. Assets and liabilities
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8.1 The Contractor hereby guarantees that the quality of services provided in accordance with the present Contract will correspond to the existing standards and rules of environmental protection, fire precautions, safety rules and other obligatory requirements of the existing law.

 

8.2. The Contractor shall provide at its cost all required insurance related to the performance of the services by the Contractor (the Contractor Group) under this Contract, and shall indemnify the Customer from all costs, losses or suits related to monetary compensation (including pension, welfare, taxes, charges and other social payments) or death or personal injury of any member of the Contractor (the Contractor Group) involved in the performance of services under the present Contract. The Contractor shall bear all risks and liabilities for non-compliance with provisions of this Article.

 

8.3. In addition to the indemnity provided in Article 5.1 hereof, the Contractor shall defend, indemnify and hold harmless the Customer from and against all losses, liabilities, claims, or suits arising in connection with the performance of this Contract, including any fines and penalties that may be assessed as a result of or related to Contractor’s breach of this Contract, violations of Russian laws and regulations on safety, environment and other requirements of Russian law relating to Contract, or /and expenses caused by damage or loss of any Equipment.

Moreover in case the Customer becomes subject to any claims or suits in connection with the execution of the present Contract the Contractor (the Contractor Group) shall on the first demand on the part of the Customer provide him with all the required data and documentation related to the subject of above mentioned claims or suits, and also side with Customer in legal proceedings of such claims or suits.

If despite the provisions of the present article the Customer carries any expenses, fees, costs and other losses related to the execution by the Contractor (the Contractor Group) of services under this Contract, the Contractor shall immediately reimburse them to the Customer on the basis of written order presented by the Customer, and the Customer is authorized to decrease the amount of the succeeding payment under the present Contract for the amount of expenses, costs and other losses incurred.

 

8.4. The Contractor hereby guarantees on behalf of itself and the Contractor Group that the Contractor’s Equipment is in operational condition and corresponds to all the obligatory requirements that can be applied to such Equipment by the existing law.

 

8.5. Because of Customer being an enterprise with foreign investments, the Contractor hereby represents and warrants, on behalf of itself and the Contractor Group, that neither it nor any person (including employees, directors, officers, or agents thereof) acting at its direction has offered, promised, authorized or made any payment or gift in violation of applicable law (including, without limitation, the U.S. Foreign Corrupt Practices Act) to any governmental official, political party or official thereof, or candidate for political office for the purpose of influencing any act or omission in violation of a lawful duty in order to assist in obtaining advantages of any kind for it or in conducting the transactions herein contemplated.

 

8.6. The Contractor hereby represents and warrants that the Contractor and the Contractor Group are duly registered and have all permits and licenses to provide services under the present Contract.

 


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