Commercial proposal Fiber-optic security system SOKOL (Falcon) Calculation do it of Customer (End User) data is 40 kilometers long and 10 Gates



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103d West Coast Road, Glen Eden TO: Ministry of Transport The Government Company Airports Iraq Baghdad, Iraq Ref. No.: 301\BGD-03-2015 Date 14 th of Mach 2015 Commercial proposal Fiber-optic security system SOKOL (Falcon) Calculation do it of Customer (End User) data is 40 kilometers long and 10 Gates Dear Sirs, Let me offer to your attention our commercial proposal of provisioning and supplying following: Total price 2 508 120 usd (two million five hundred and eight thousand one hundred and twenty dollars) for 40 km territory or 62 703 usd\1 km this price includes 1. SOKOL Fiber-optic boarding security system (number of security lines- 03 three lines of two underground one out on the fence) 2. LINE COMMUNICATION - Single-channel 10GbE fiber-optic communication line 3. Equipment, installation and commissioning (all details in Notes & Annex N-1). 4. The warranty for equipment is 1 year. 1 ShV S м к Portable IP ТА Fiber-optic communication line Portable optic or IP TA Video monitoring along the perimeter Connection points along the perimeter...ip telephon e WKS... Situation room Data display hardware complex: - video walls; - interactive displays and desks; - video documenting systems. Еt h RSOS 9700 Data base server Hardware START Brancher with FC interface socket Portable optic or IP TA Brancher with FC interface socket Portable optic or IP TA Brancher with FC interface socket Gate (wicket door) Security post Fiber-optic communication line... IP telephon e WKS... Optical TA On-duty guard room Cross-connection equipment Data transmission system KONUS hardware Video monitoring system Display means Data base server SOKOL-STCP system arrangement diagram Department network

SOKOL SOFTWARE 01 System software - licenses set 10 02 03 04 05 Basic software of the primary signal processing servers - SOKOL-S1 with complexity coefficient for the length of sensing element and operating system Basic software of the secondary signal processing servers - SOKOL-S2 with complexity coefficient for the length of sensing element and operating system Programming and application software of the secondary signal processing servers - SOKOL-S2 with complexity coefficient for the length of sensing element and operating system Programming and application software of the alarm signals formation controller set 9,60 06 Programming and application software of the automated workstation (WKS) SOKOL-SPO including the operating system SOKOL DESIHN AND COMISSIONING Project works for the programming and application software 07 SOKOL-SPO including the operating system 08 Installation supervision, testing 09 Project preparation Commissioning with a complexity coefficient for the actual 10 operating conditions 11 Sensors anchoring to the site 2 Test operation and adjustment with a complexity coefficient 12 for the actual operating conditions within the warranty period 13 Personnel training in the training center 14 Personnel training at site 15 Operational documents: data sheets, specification, operational manual, user manual, requirement for installation of the sensing element

Figure A diagram, illustrating installation of the warning security line The system is especially relevant for the objects with complex radio signal environment, objects with extended perimeter, where radio communication may be not possible at certain locations due to strong interference or challenging terrain, as well as for other objects, where limitations apply to usage of radio communication means (underground facilities, tunnels, rooms with fire and explosion hazard, etc.). 3 When buried to the ground, the linear part may be layed using two major procedures: Figure Types of cable laying equipment

Workstation of the system operator displays results of the security line monitoring with indication of the location, time and time of trespassing, visualizing such events on the territory map or diagram and informing the operator of system failures or fiber optic cable breaks. Results of such an event registration are stored in the archive. When the virtual sensor trips, the system, remaining in the standby mode, continue to perform monitoring of the remaining sensors, that are in the standby mode. 4 Calculation do it of Customer (End User) data is 40 kilometers long and 10 Gates

Notes: 1. Offer is valid until 01 th of April, 2015. 2. Prices are subject of the conditions are set below. In case of conditions changing prices will also be changed. 3. Price includes freight, shipping, insurance costs, customs duties, taxes, fees and other mandatory payments and are set on CPT Baghdad terms. 4. Time of equipment delivery, installation and putting into operation is 4 months from the date of the Contract signing by both parties. 5. Payment 30% of Total amount should be made within 10 calendar days after Contract signing by T/T bank transfer and 70% should be made as letter of credit of J.P. Morgan bank or equal with execution against provided signed Contract. 6. In case of payment delay for the delivered goods, works, the Supplier may require additional Customer's payment as penalty in the amount of 0,1% of the residual price on day of the penalty s payment for each day of delay. Customer is exempt from payment of the penalty, if he proves that the failure to fulfill such obligation was due to force majeure or the fault of the other party. 7. The Supplier undertakes to deliver the equipment to the Customer's warehouse and send their experts for equipment installation and putting system into operation in place of this system operation without any additional payment. 8. Customer shall: a) accept all purchased equipment b) provide appropriate space for the installation of purchased equipment, c) provide electricity connection to installed equipment, d ) provide network connection for data transfer, e ) provide access for supplier staff to areas where supplied equipment will be installed, f ) provide access for third party staff that can be held by the supplier (executor) for the execution of works for equipment supply and other works in the place where the equipment will be installed. E.g. employees of company which performs the delivery of equipment. 9. Supplier provides a guarantee of efficiency of the system within 12 months from the date of the installation complete and putting the equipment into operation. 10. Quality assurance for equipment and software does not apply to faults or damage caused by a violation of operating and storage conditions and self- upgrading. 11. Warranty for system operability includes supplier obligation as follows: a) To take the defective equipment for repair or replacement. b) Complete repair of faulty equipment or implement its full replacement of equipment with the same characteristics as the replaced or better. Repair period shouldn t be more than 20 days since the transfer of equipment to the service center of the Supplier (time for shipping of equipment to service center and back is not included into the timeframe mentioned above). c) Supplier should deliver repaired equipment or its replacements to place of operation for its own account. Supplier shall pass repaired equipment or replacement equipment to carrier within 2 days. Delivery time is determined by the capabilities of the carrier, but the supplier must choose such a carrier to make delivery time not more than 14 days. d ) Supplier has the right to organize the repair of the equipment by a third party in the nearest service center to repair faulty equipment. e ) The duty of the supplier does not include the obligation for delivery of faulty equipment to the service center and repaired equipment back from the service center, if the service center is located locally where the operation of System is carried out. f) Supplier shall provide the Customer with the necessary patches for the software in case of significant errors 5

in the software, leading to the inability to use the software and hardware complex. g) Warranty of Supplier shall apply to equipment and software specified for delivery in the quotation only. h) Warranty of Supplier shall not apply to hardware and software installed to Customer before current date. i) Technical maintenance of System is not included into the duty of the Supplier. 12. The Customer should appeal to service center of the manufacturer directly when the manufacturer's warranty period on the products exceeds the warranty period of the Supplier which is ended. 13. The Customer is entitled to apply a penalty in amount of 0.1% of the value of the goods which are subject of warranty to the Supplier for each day of delay in warranty service. 14. The total amount of fines for violations of the Supplier s warranty for the entire warranty period shall not exceed 10 % of the value of the goods delivered. E-mail vp@amgtrading.net Phone Russia +79062-375453 Phone Iraq +964-7709689969, +964-7801202996 Skype CAP.VPOPOV Executive Director Vladimir Popov 6