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PURCHASE AGREEMENT Pursuant to the Agreement of October 7, 1994, between the Government of the United States of America and the Republic of Kazakhstan in regard to the disposition of highly-enriched uranium located at the Ulbinsky Metallurgical Facility, the Government of the United States of America (hereinafter "purchaser") desires to purchase and the Government of the Republic of Kazakhstan (hereinafter "seller") desires to sell the material described herein. The purchaser and seller agree more particularly as follows: ARTICLE I - AUTHORITY TO CONTRACT This agreement is entered into under the authority of the Atomic Energy Act of 1954, as amended, and pursuant to the Implementing Agreement of October 7, 1994, between the Government of the United States and the Republic of Kazakhstan amending the SSD Umbrella Agreement of December 13, 1993, in regard to the disposition of highly-enriched uranium located at the Ulbinsky Metallurgical Facility. ARTICLE II - DOCUMENT INCORPORATED BY REFERENCE The joint summary statement regarding the disposition of highly-enriched uranium located at the Ulbinsky Metallurgical Facility, shall be given the same effect as any article contained in this agreement. The seller shall furnish all supplies and services enumerated in the joint summary statement. The purchaser is not obligated to purchase supplies and services in excess of its actual requirements. Payment for supplies and services by the purchaser shall be by separate arrangement. ARTICLE III - DESCRIPTION OF MATERIAL The purchaser hereby agrees to purchase and the seller agrees to sell the material identified as highly enriched uranium located at the Ulbinsky Metallurgical Facility in Ust-Kamenogorsk, and further identified as approximately -187 kilograms of metal enriched to about 98 percent; - 25 kilograms of uranium oxide; - 170 kilograms of uranium-beryllium alloy fuel rods; - 156 kilograms scraps of uranium-beryllium broken fuel rods and powders. ARTICLE IV - PRICE OF MATERIAL The seller and purchaser hereby agree that in consideration of a firm fixed price of three million dollars (dollars 3,000,000) U.S., the seller will provide the material as identified herein. ARTICLE V - TERMS OF PAYMENT Payment shall be made by United States Treasury Check drawn in the amount of three million dollars (dollars 3,000,000.00) U.S. upon transfer of all subject material to a storage site designated by the purchaser. Payment shall be made to: Ulbinsky Metallurgical Plant Production Association City of Ust-Kamenogorsk, Eastern Kazakhstani Oblast Republic of Kazakhstan ARTICLE VI - PACKAGING, PACKING, AND MARKING FOR SHIPMENT The repackaging, repacking and marking of the material specified in Article III shall be the responsibility of the purchaser. ARTICLE VII - SUPERVISION OF INDIGENOUS WORKERS The United States Government shall not exercise any supervision or control over indigenous workers performing services under this agreement. Such workers shall not be accountable to the United States Government, but solely to the Government of Kazakhstan. Accordingly, the United States Government assumes no liability related to indigenous workers. ARTICLE VIII - PLACE OF DELIVERY Delivery to the purchaser of the material specified in Article III shall be made by the seller as specified in the joint summary statement referenced in Article II. ARTICLE IX - INSPECTION AND ACCEPTANCE OF MATERIAL Inspection and final acceptance of material specified in Article III shall be accomplished by representatives of the purchaser once custody is transferred by the seller to the purchaser. The purchaser shall assume custody of the material upon its being loaded into aircraft of the purchaser. ARTICLE X - NOTICES AND POINT OF CONTACT All notices or contacts concerning this agreement are to be made in writing, in English, and shall be submitted to the following address by (registered air mail, telex, or telefax), and subsequently acknowledged in writing. PURCHASER: Carol Rueter, Contracting Officer U.S. Department of Energy 1615 M Street, N.W. Washington, D.C. 20036 SELLER; Shkolnoye Shossay, 102 492026 Ust-Kamenogorsk Eastern Kazakhstan Oblast telegraphic address: Ust-Kamenogorsk, Series "p" "astra"; teletype number: 139169 "astra"; fax: 7-3232-640683 ARTICLE XI - DISPUTES Any dispute arising between the parties to this agreement concerning the application or interpretation of this agreement shall be settled by the parties by mutual agreement, and shall not be referred to a third party or international tribunal. ARTICLE XII - MODIFICATION OR TERMINATION OF AGREEMENT This agreement may only be modified or terminated by written agreement by the parties. ARTICLE XIII - U.S. OFFICIALS NOT TO BENEFIT No member of or delegate to the United States Congress shall be admitted to any share or part of this contract, or to any benefit arising from it. ARTICLE XIV - EXEMPTIONS FROM TAXES, DUTIES AND TARIFFS Consistent with Article IX of the Agreement between the United States of America and the Republic of Kazakhstan Concerning the Destruction of Silo Launchers of Intercontinental Ballistic Missiles, Emergency Response, and the Prevention of Proliferation of Nuclear Weapons of December 13, 1993, no taxes or duties shall apply to the United States Government under this agreement. ARTICLE XV - INCONSISTENCY BETWEEN ENGLISH VERSION AND TRANSLATION OF AGREEMENT In the event of inconsistency between any terms of this contract and any translation thereof into another language, the English language meaning shall control. ARTICLE XVI - ACCOUNTING AND APPROPRIATION DATA SELLER:** See Below Account Number: 000222601 East Kazakhstan Oblast National State Bank MFO Number 190901104 Ushanov Street, 3 492019 Ust-Kamenogorsk Foreign Currency Account Number: 001070215 East Kazakhstan Branch of Turanbank MFO Number 190901310 89X0243.91 GJ02 $500,000 CR-53-91 250 0S/TF 07068633 89X0224.95 400890000 $1,500,000 CR-54-93 250 0S/3Y 07069466 89X0224.95 400890000 $1,000,000 CR-50-93 250 0S/3T AGR 94-7628 07069528 Completed this 17-th day of November 1994 in two copies in the English and Russian languages, both texts being equally authenic.
United States of America
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