01.12.1998

"Any dispute or controversy which may arise, out of or in connection with the present contract shall be referred for settlement by arbitration, excluding the jurisdiction of the ordinary courts.

If the defendant in such a dispute or controversy is a Bulgarian physical or legal person, the arbitration proceedings shall be conducted by the Arbitration Court at the Bulgarian Chamber of Commerce and Industry in accordance with its Rules.

If the defendant in such a dispute or controversy is a Russian physical or legal person, the arbitration proceedings shall be conducted by the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation in accordance with its Rules.

The arbitration award to be rendered in accordance with this arbitration clause shall be final and binding upon both parties."