CONTRACT ON THE ORGANISATION OF MANAGEMENT OF TAXABLE PACKAGING WASTE No.__________________ _______________________ 201__ Vilnius _________________________________________________________________________________ (code at the Register of Legal Entities (Company registration number) _________________, address of the registered office ___________________________________________________________________________), represented by _________________________________________________________ acting in accordance with the articles of incorporation (hereafter referred to as the “Delegating Agent”) and Public Establishment (P.E.) „Žaliasis taškas“ (code at the Register of Legal Entities (company registration number) 110884687, address of the registered office A.Goštauto g. 40B, 03163 Vilnius, Lithuania), represented by Director General Kęstutis Pocius, acting in accordance with the articles of incorporation (hereafter referred to as the „Organisation”), hereafter collectively referred to as the “Parties” or individually as the “Party”, concluded the following Contract: I. DEFINITIONS USED IN THE CONTRACT 1. Unless the context of the Contract clearly suggests otherwise, the terms and definitions used in the Contract shall be interpreted as follows: Obligations of producers and importers (hereafter – Obligations) – obligations of producers and importers stipulated in the Law on the Management of Packaging and Packaging Waste and the Law on Waste Management of the Republic of Lithuania: 1) organisation of sorted collection, transportation, preparation for use and use of all packaging waste, originating from the use of packed products placed on the Internal Market of the Republic of Lithuania (hereafter – Internal Market), and (or) participation in organisation of management of such waste in the framework of household waste management systems run by local authorities; 2) raising public awareness and providing information on various aspects of waste management, in accordance with the procedures set forth by the Minister of Environment: on environmental damage and risks to human health resulting from inappropriate management of packaging waste, on various options of packaging waste management, etc.; 3) covering the expenses of collection, transportation, preparation for use and use of packaging waste as specified in Point 1) hereof, as well as the costs of organisation and implementation of public awareness activities specified in Point 2) hereof; 4) other obligations of producers and importers placing on the market products packed in taxable packaging, set forth in the Law on the Management of Packaging and Packaging Waste, the Law on Waste Management and other legal acts of the Republic of Lithuania, that the Organisation implements at request of the Delegating Agent or in accordance with the applicable legislation. Tax – environmental pollution tax on packaging waste established by Law on Pollution Tax of the Republic of Lithuania, payable by the Delegating Agent. Software – the software installed by the Organisation to be used by the Delegating Agent to place the Order with the Organisation and by the Organisation to accept it (the Order). Control Council – a council established in accordance with the Law on the Management of Packaging and Packaging Waste of the Republic of Lithuania on the basis of multilateral treaty, a party whereof is the Organisation; it consists of an equal number of representatives from the Organisation, associations of the 1 packaging waste collectors, packaging waste users (and exporters), as well as one representative from the Association of Local Authorities in Lithuania and one from the Ministry of Environment. Packaging Waste Management Tasks (or Tasks) – quantities of the packaging waste specified in the applicable legislation that, when managed according to the ways and procedures specified in the legislation, makes the Delegating Agent eligible to the Tax exemptions foreseen in the Law on Pollution Tax of the Republic of Lithuania. Type of Packaging – material (materials) the packaging is made of. Services – actions, works, etc., performed by the Organisation, or by the third parties at request of the Organisation, for the benefit of the Delegating Agent in order to fulfil or to aim at fulfilling the Obligations of the Delegating Agent and/or contractual Obligations of the Organisation defined herein, as well as other actions, works, etc., performed by the Organisation, or by the third parties at request of the Organisation, directly or indirectly related to the fulfilment of the Obligations and (or) contractual obligations of the Organisation, and of the Obligations and (or) rights of the Organisation or Delegating Agent, set forth by the legislation. Document of Approval – a document in the form established by the Government or other competent authority, confirming the fact of proper management of a certain quantity of packaging waste and the eligibility of the Delegating Agent to the Tax exemption, foreseen in the Law on Pollution Tax of the Republic of Lithuania. Subcontractor – third party involved by the Organisation for the fulfilment of its contractual obligations against the Delegating Agent at its own discretion and (or) in accordance with the acting legislation. Order – a request of the Delegating Agent sent to the Organisation via the Software or in writing, using a special form established by the Organisation, to organise the implementation of a packaging waste management Task or a part thereof (by Type of Packaging) on the basis of the Contract; it shall specify all quantities of packaging (by Type of Packaging) placed and (or) planned to be placed on the Internal Market within a calendar year, and on the basis thereof the Organisation shall calculate the quantities of packaging waste to be managed on behalf of the Delegating Agent in order to make the Delegating Agent eligible for the full or partial Tax exemption. Acceptance of the Order – confirmation by the Organisation via the Software or in writing, using a special form established by the Organisation, that it (the Organisation), on the basis of the present Contract, will organise the management of packaging waste corresponding to the quantities of packaging placed on the market (by Type of Packaging), as specified in the Order of the Delegating Agent, to make the Delegating Agent eligible for the full or partial Tax exemption. 2. Other terms used in the Contract shall be interpreted in accordance with the Law on the Management of Packaging and Packaging Waste, the Law on Waste Management, the Law on Pollution Tax, and other legal acts of the Republic of Lithuania regulating the management of the packaging waste. II. SUBJECT OF THE CONTRACT 3. The Organisation undertakes to provide Services to the Delegating Agent, and the Delegating Agent to cover the costs of these activities (i.e. to pay for the Services provided) and other expenses of the Organisation, related to the administration of its (Organisation‘s) activities on organising the management of packaging waste and fulfilment of other obligations of the Delegating Agent. III. DECLARATIONS AND CONFIRMATIONS OF THE PARTIES 4. Each Party shall declare to the other Party, that it has been properly established, has all the necessary permits and (or) licences for its activities and operates legally, in conformity with the law of the Republic of Lithuania. 5. The Parties shall understand and confirm that this Contract is concluded in order to implement the principle of producers‘ and importers‘ responsibility for the management of packaging waste and to enable the Delegating Agent, which packs products into the taxable packaging and (or) imports products packed into 2 taxable packaging and places them (packed products) on the Internal Market, to benefit from the Tax exemptions provided by the law. 6. The Delegating Agent has been informed and understands that the Organisation plans its activities with consideration of the interests of all producers and (or) importers, that have charged the Organisation with tasks, and of the fact that the Organisation shall provide its Services to all delegating agents on the basis of equal treatment. 7. The Parties confirm that an Order placed via the Software and (or) in writing, using a special form established by the Organisation, and the Acceptance of the Order via the Software and (or) in writing, using a special form established by the Organisation, shall be deemed an integral part of this Contract. 8. The Delegating Agent confirms that, prior to signing the Contract, it has examined and undertaken to follow the procedures for usage of the Software and of the “Žaliasis taškas” label ((“Green Point” - „DER GRŰNE PUNKT“) (Certificates No. 28870, 28871)), presented on the website of the Organisation, www.zaliasistaskas.lt. 9. The Delegating Agent has been informed, understands and accepts that: 9.1. The procedures referred to in the Article 8 of the Contract shall be deemed an integral part of the Contract, and any failure to follow their provisions (i.e. those of the procedures referred to in Article 8) shall be also deemed a breach of this Contract. 9.2. According to the provisions of the Law on the Management of Packaging and Packaging Waste of the Republic of Lithuania, the Organisation shall initiate the establishment of the Control Council to be responsible for the control of compliance to the contractual obligations hereof. Once the Control Council is established, the Delegating Agent shall undertake to provide the documents, data and information necessary to assess the compliance to the contractual obligations upon request of the Organisation. IV. RIGHTS AND DUTIES OF THE PARTIES 10. The Organisation shall undertake to: 10.1. organise management of the quantities and types of packaging waste specified in the Orders placed by the Delegating Agent and accepted by the Organisation in accordance with this Contract, so that the Delegating Agent becomes eligible to a complete or partial Tax exemption, by operating within the limits of the legal acts regulating its activities, choosing at its own discretion the forms and means of Contract implementation and acting to the best interest of the Delegating Agent; 10.2. ensure that the Delegating Agent and (or) competent authorities (if the applicable legal acts require reporting to the competent authorities) receive a Document of Approval on certain types of packaging waste managed on behalf of the Delegating Agent, or perform other actions as provided by the legal acts, that, according to the provisions of these legal acts, could be deemed equivalent to the provision of the Document of Approval to the Delegating Agent and (or) competent authorities; 10.3. inform the Delegating Agent about any circumstances posing a risk to the proper implementation of the Contract; 10.4. provide Services to the Delegating Agent on the same conditions as all other producers and (or) importers that have delegated tasks to the Organisation, including those participating in the management of the Organisation – its founders and (or) shareholders; 10.5. in accordance with the applicable legislation, provide competent authorities with the documents, information, reports, etc., proving that the Organisation has completely of partially fulfilled the Packaging Waste Management Tasks and other Obligations of the Delegating Agent on its behalf; 10.6. counsel the Delegating Agent on the record-keeping, management and labelling of packaging, on the Tax on environmental pollution with packaging waste and other issues relevant to the implementation of the Contract, or, if the Organisation has no competence to advice on the above-mentioned issues, to seek consultations with the competent authorities at request of the Delegating Agent; 10.7. provide the Delegating Agent with explanations and information on the activities of Organisation by placing it on the website www.zaliasistaskas.lt; 3 10.8. inform the Delegating Agent about any changes in the procedures referred to in Article 8 hereof, at least 10 days before they (the changes) come into effect; 10.9. provide possibilities for the Delegating Agent to become a participant in the Organisation and a member of its management body, in accordance with the law and Organisation’s articles of incorporation; 10.10. in case of dissolution of the Contract by any of the Parties, provide the Delegating Agent with the Services prepaid (by the Delegating Agent) to the Organisation, and take all actions listed in Point 10.2 of the Contract with regard to these Services or a part thereof; 10.11. advice the Delegating Agent on the placement of Orders and their updates, operating the Software and on the procedures of using the “Žaliasis taškas” label referred to in Article 8 of the Contract; 10.12. follow other contractual obligations. 11. The Organisation shall have the right to: 11.1.involve Subcontractors for the implementation of the Contract at its own discretion and (or) in accordance with the legislation (if applicable), without a separate notification to the Delegating Agent; 11.2. unilaterally reduce the Service tariffs referred to in Article 24 of the Contract, with at least 10 days prior notification to the Delegating Agent; 11.3. suspend the submission of the Document of Approval or other actions provided by the legal acts, that, according to the provisions of these legal acts, could be deemed equivalent to the submission of the Document of Approval to the Delegating Agent and (or) competent authorities, and (or) implementation of other contractual obligations for the benefit of the Delegating Agent, if the Delegating Agent fails to pay for the Services provided on the terms specified in the Contract and (or) is late with other payments for the Organisation; 11.4. represent the Delegating Agent before state and local authorities and at courts, regarding the implementation, non-implementation or inappropriate implementation of the Obligations of the Delegating Agent; 11.5. refuse providing Services of a part thereof to the Delegating Agent in the course of the current year, if the later (the Delegating Agent) fails to place the Order in conformity with the terms specified in Articles 14 to 16 of the Contract; 11.6. establish and amend: 11.6.1. the procedure for usage of the “Žaliasis taškas” label referred to in Article 8 of the Contract; 11.6.2. the procedure for usage of the Software referred to in Article 8 of the Contract. 12. The Delegating Agent shall undertake to: 12.1. pay for the Services provided by the Organisation the price specified in the Contract in accordance with the procedures set forth herein; 12.2. place the Order(-s) with the Organisation in accordance with the procedures specified in the Contract; 12.3. upon request of the Organisation, supply it (Organisation) without delay with the documents and (or) information necessary for the proper implementation of the Contract; 12.4. inform the Organisation about any circumstances posing a risk to the proper implementation of the Contract as soon as they (circumstances posing a risk to the proper implementation of the Contract) are discovered; 12.5. if competent state authorities annul, declare improper, etc. the Documents of Approval issued for the Delegating Agent on the basis of the Contract, or a part thereof, or take other actions resulting in the Documents of Approval issued for the Delegating Agent, or a part thereof, being annulled, declared improper, etc., or could be annulled, declared improper, etc.; or if the Delegating Agent finds out about other circumstances resulting in refusal or possible refusal by the state authorities to grant an exemption from the Tax on environmental pollution with packaging waste, it shall give written notification to the Organisation no later than on the next working day after the discovery of such information, and shall submit all the documents related to the circumstances referred to in this Point. 12.6. in presence of the circumstances described in Point 12.5. of this Article, at request of the Organisation, issue an authorisation (transferable power of attorney) to the Organisation or its designated person 4 to represent the Delegating Agent before state and local authorities and at courts, in order to avoid the consequences specified in Point 12.5. of this Article (annulment or declaration as improper of the Documents of Approval, withdrawal of Tax exemption, etc.) 12.7. follow other contractual obligations. 13. The Delegating Agent shall have the right to: 13.1. to mark the packaging placed on the Lithuanian market with the “Žaliasis taškas” label referred to in Article 8 of the Contract , indicating that the Delegating Agent participates in the organised system of packaging waste management. 13.2. receive information on the activities of Organisation as provided by this Contract, except the information on quantities of packed products placed or being placed on the Internal Market by other parties that have delegated the Organisation with waste management tasks or are participants of the Organisation, or the quantities of packaging used thereto. V. ORDERS – NOTIFICATION OF THE ORGANISATION ABOUT THE QUANTITIES OF TAXABLE PACKAGING PLANNED TO BE PLACED ON THE INTERNAL MARKET 14. The Delegating Agent shall, within 15 days after signing the Contract, supply the Organisation with information on the quantities of taxable packaging planned to be placed on the Internal Market in the current calendar year, by Type of Packaging, and information on the quantities of taxable packaging placed on the Internal Market during the calendar year prior to signing of the Contract, by Type of Packaging. 15. In all subsequent calendar years, following the year of the Contract signing, the Delegating Agent shall supply the Organisation with information on the quantities of taxable packaging planned to be placed on the Internal Market in the calendar year, by Type of Packaging, by 31 January of that calendar year. 16. At the end of the second and the third quarters of a calendar year, the Delegating Agent shall, within 15 calendar days, supply the Organisation with an updated information referred to in Articles 14 and 15 of the Contract (a declaration on the quantities of taxable packaging planned to be placed and (or) placed on the Internal Market in the current calendar year, by Type of Packaging). At the end of the last quarter of a calendar year, by the 10th of December, the Delegating Agent shall supply information on the total quantities of taxable packaging already placed and planned to be placed on the Internal Market in the current calendar year. At the end of the calendar year, by the 10th of January, the Delegating Agent shall supply the Organisation with information on the total quantities of taxable packaging placed on the Internal Market during the past calendar year. 17. Supply of the information referred to in Articles 14 to 16 of the Contract to the Organisation shall be regarded as a placement of the Order. 18. The Organisation, within 10 days after receipt of the information referred to in Articles 14 and (or) 15, and (or) 16 of the Contract, shall: 18.1. Confirm the Acceptance of the Order; or 18.2. Reject the Order or a part thereof (when the Organisation rejects a part of the Order, the remaining part of the Order shall be deemed accepted). 19. The Organisation shall inform the Delegating Agent about the Acceptance of the Order or rejection of the Order or a part thereof via the Software, e-mail or by letter. If the Order or a part thereof is rejected, the Organisation shall specify the reasons for rejection to the Delegating Agent. 20. The Organisation may reject the Order or a part thereof: 20.1. when it considers the information submitted by the Delegating Agent as incomplete and (or) incorrect; 20.2. when it (the Organisation) has no capacity to organise the management of the quantity of packaging waste or part thereof (by Type(-s) of Packaging) indicated in the Order; 20.3. when the Delegating Agent places the Order later than the deadlines specified in Articles 14 to16 of this Contract; 20.4. when the Delegating Agent, in accordance with Article 16 of the Contract, submits an updated information on the quantities of taxable packaging it (the Delegating Agent) intends to place and (or) has placed on the Internal Market in the calendar year, by Type of Packaging, and: 5 20.4.1. after the second quarter of the calendar year, the updated quantities of packaging, by Type of Packaging, planned to be placed on the Internal Market in the calendar year by the Delegating Agent are by 10 percent larger or smaller than the quantities of packaging planned to be placed on the Internal Market in the calendar year declared by the Delegating Agent at the time specified in Article 15 of the Contract, or at the time specified in Article 14 of the Contract (if the Contract has come into effect in the first or second quarter of the calendar year); 20.4.2. after the third quarter of the calendar year, the updated quantities of packaging, by Type of Packaging, planned to be placed on the Internal Market in the calendar year by the Delegating Agent are by 7 percent larger or smaller than the Order accepted by the Organisation, or part of the Order accepted by the Organisation, in the third quarter of the calendar year, or than the quantities of packaging planned to be placed on the Internal Market declared at the time specified in Article 14 of the Contract (if the Contract has come into effect in the third quarter of the calendar year); 20.4.3. in the fourth quarter of the calendar year, in December (by the 10th of December), the updated quantities of packaging, by Type of Packaging, planned to be placed on the Internal Market in the calendar year by the Delegating Agent are by 4 percent larger or smaller than the Order accepted by the Organisation, and (or) part of the Order accepted by the Organisation, at the time specified in Point 20.4.2., or than the quantities of packaging planned to be placed on the Internal Market declared at the time specified in Article 14 of the Contract (if the Contract has come into effect in the fourth quarter of the calendar year); 20.4.4. after the end of the calendar year, by the 10th of January, the updated quantities of packaging, by Type of Packaging, placed on the Internal Market in the calendar year are by 2 percent larger or smaller than than the quantities of packaging planned to be placed on the Internal Market declared at the time specified in Point 20.4.2. hereof or in Article 14 of the Contract (if the Contract has come into effect in the fourth quarter of the calendar year after the 10th of December); 20.5. it covers the period between the beginning of a calendar year (1 January of that calendar year) and the day of coming into power of the Contract (the provision of this Point is applicable only in the calendar year when the Contract is signed). 21. In cases specified in Points 20.1 to 20.5 of Article 20 of the Contract, the Delegating Agent, upon notification that its Order or part thereof have been rejected, may submit an updated Order to the Organisation. The resubmitted Order shall be subject to the provisions of Articles 14 to 20 hereof. 22. Neither Party can unilaterally cancel or modify the Order that has been accepted by the Organisation, or a part thereof. VI. PRICING OF SERVICES, SERVICE TARIFFS, PRICES, NOTIFICATION OF THE DELEGATING AGENT THEREOF, AND PAYMENTS 23. The price for the Delegating Agent shall consist of the costs of management of the packaging waste placed on the Internal Market and arrangement thereof, the costs of public information and awareness raising, Organisation's administrative costs, and other costs related to the obligations of producers and importers set forth in the Law on Waste Management, the Law on the Management of Packaging and Packaging Waste, and other legal acts of the Republic of Lithuania, implemented by the Organisation at request of the Delegating Agent. 24. Each calendar year, by the 24th of December, the Organisation shall submit to the Delegating Agent the list of Service tariffs, by Type of Packaging, per conditional unit of weight placed on the Internal Market, which shall be the tonne, for the coming calendar year or a part of the coming calendar year. The tariff for the management of a conditional unit of packaging waste placed on the Internal Market shall include all the costs listed in Article 23 of the Contract. Service tariffs for the coming calendar year or a part thereof shall be submitted in the form specified in the Annex 1 of the Contact. Service tariffs submitted by the Organisation to the Delegating Agent shall be deemed an integral part of this Contract and can be amended following the procedure set out in Article 11.2 of the Contract. 25. Upon Acceptance an Order or a part thereof, as specified in Articles 14 and 15 of the Contract, the 6 Organisation shall calculate, on the basis of tariffs referred to in Article 24 of the Contract, the total sum of money payable to it (the Organisation by the Delegating Agent for the Services for the calendar year, and based on these calculations invoices are produced and presented to the Delegating Agent in accordance with Article 26 hereof. 26. The Delegating Agent shall pay the Organisation for the Services the sum of money specified in Article 25 as follows: 26.1. in several instalments, at least once a month, within 15 days after the Organisation submits its invoice to the Delegating Agent; 26.2. following other procedure mutually agreed upon by the Parties. 27. Upon receipt of the information specified in Article 16 in accordance with the provisions thereof (Article 16) and Section V of the Contract, and upon Acceptance of the Order or a part of the Order, the Organisation shall, within 30 days after the Acceptance of the Order or a part thereof, recalculate the monthly amount payable by the Delegating Agent to the Organisation for the Services for the remaining part of the calendar year. The recalculated payment for the Services shall be paid in accordance with Article 26. 28. If at the end of a calendar year it turns out that the Delegating agent has paid the Organisation for that (last) calendar year less than the amount payable to the Organisation for the Services provided to the Delegating Agent, the Delegating Agent shall cover the outstanding debt within 10 days from the day of receipt of the Organisation’s invoice. 29. Each calendar year the Delegating Agent shall pay to the Organisation a Contract administration fee specified in Annex I of the Contract, if any, along with the first instalment. VIII. RESPONSIBILITY 30. The Parties undertake to properly fulfil their obligations under this Contract and to restrain from any activities that could harm to the other Party. 31. If a Party fails to fulfil its obligations under this Contract, or fails to fulfil them properly, it (the Party in breach of the Contract) shall pay a compensation to cover the losses of the other Party. 32. If the Organisation fails to implement an accepted Order or a part thereof for the benefit of the Delegating Agent, and (or) if competent authorities annul or declare improper the Document of Approval (or a part thereof) issued for the Delegating Agent on the basis of the Contract and (or) resolve to withdraw Tax exemption granted to the Delegating Agent as a result of failure by the Organisation to properly fulfil its contractual obligations, the losses of the Delegating Agent shall be deemed to be the Tax paid by the Delegating Agent in accordance with the Law on that quantity and type of packaging waste, as well as any fines and latepayment penalties (if any imposed) for the late payment of Tax, calculated in accordance with the Law on Tax Administration and other legal acts of the Republic of Lithuania. 33. The parties presume and accept that the Organisation shall be deemed to have properly fulfilled all its obligations set forth by this Contract, and that the Delegating Agent has experienced losses by its own fault: 33.1. if the Delegating Agent fails to fulfil obligations listed in Points 12.3-12.6 of Article 12 of the Contract; 33.2. if the Delegating Agent provided the Organisation with incorrect data about the quantities of packaging planned to be placed or placed by it (the Delegating Agent) on the Internal Market in the calendar year. 34. If the Delegating Agent fails to make timely payments as set forth in the Contract, the Organisation shall have the right to charge a late-payment penalty in amount of 0.02 percent of the payment due per each calendar day of the delay. 35. The late-payment penalty and other sanctions specified in this Section shall be paid by one Party to anther Party within 30 days upon the request of the corresponding Party. IX. FORCE MAJEURE 7 36. The Parties to the Contract shall be freed from full or partial performance of the contractual obligations, if they fail to adhere to the Contract due to a force majeure event, i.e. due to reasons that could not be foreseen by the Parties (flood, earthquake, military events, blockade, and other reasons beyond control of the Parties), under condition that these events have had direct impact on the performance of the Contract. In such case, the Contract shall be extended for the duration of the above-mentioned event. 37. The Party which is unable to adhere to the Contract due to the force majeure event shall notify the other Party thereof in writing within 10 calendar days out delay. The Party which fails to notify the other Party about the occurrence of a force majeure event shall not be freed from the fulfilment of its contractual obligations. 38. If the force majeure event lasts for more than 3 months, any of the Parties shall have the right to cancel the Contract. In such case neither of the Parties shall have the right to demand a compensation for the losses due to the cancellation of the Contract. X. CONFINENTIALITY 39. The contents of the Contract, except the Orders and information supplied by the Delegating Agent on the quantities of packaging placed by it (the Delegating Agent) on the Internal Market, and amounts of packaging waste managed on behalf of the Delegating Agent, shall remain open and any of the Parties may disclose it provisions to the third parties, publish on the Internet websites and other publicly available storage and (or) information media. 40. The Orders and information supplied therein on the quantities of packaging placed on the Internal Market by the Delegating Agent and amounts of packaging waste managed on behalf of the Delegating Agent, shall be deemed confidential and cannot be disclosed to third parties, except for the cases provided by law. XI. VALIDITY, DISSOLUTION AND AMENDMENT OF THE CONTRACT 41. The Contract shall come into effect on the day of signature and shall remain valid for an indefinite period of time. 42. Obligations of the Delegating Agent referred to in Points 12.5 and 12.6 of the Contract shall remain valid throughout the entire validity period of the Contract plus six year following the calendar year in which the Order of the Delegating Agent was completed, and (or) the last Document of Approval was issued to the Delegating Agent in accordance with this Contract, and (or) the Organisation submitted the last Document of Approval to the competent authorities, or the last action, resulting in exemption of the Delegating Agent from the Tax on environmental pollution with packaging waste, was performed. 43. The Contract may be cancelled, amended and/or extended by written agreement of the Parties. 44. A Party to the Contract shall have the right to cancel the Contract and (or) to withdraw the Order if the other Party commits a material breach of the Contract. A material breach of the Contract shall be deemed: 44.1. the circumstances referred to in Points 33.1 and 33.2 of Article 33 of the Contract; 44.2. the failure of the Delegating Agent to timely pay for the Services provided by more than 30 days; 44.3. failure by the Organisation, by its own fault, to fulfil the accepted Order or a part thereof; 44.4. refusal to grant or withdrawal of Tax exemption to the Delegating Agent by fault of the Organisation. 45. In absence of the circumstances referred to in Points 44.1 to 44.4 of Article 44 of this Section, any Party to the Contract shall have the right to cancel the Contract unilaterally on the 31 of December of each calendar year by notifying the other Party in writing no later than 3 (three) months in advance. XII. APPLICABLE LAW, INTERPRETATION OF THE CONTRACT AND DISPUTE RESOLUTION 46. The Contract shall be governed by the law of the Republic of Lithuania. 8 If any provision of the Contract contradicts Lithuanian legislation or if it becomes partly or completely invalid for some other reason, it shall not render other provisions of the Contract null and void. The Parties in such case agree to replace the invalid provision with a new and legitimate provision, which should have, to the highest extent possible, the same legal and economic effect as the provision it replaces. 48. In case of dispute, interpretation of the Contract shall always be made with consideration of the following: 48.1. the Organisation performs the Obligations of the Delegating Agent commissioned by means of this Contract in accordance with the requirements of the Contract and legal requirements applicable to the collective organisation of packaging waste management; 48.2. while performing the Obligations referred to in Point 48.1 hereof, the Organisation must take into consideration the interests of all producers and (or) importers, that have tasked the Organisation to fulfil their Obligations, and must plan its activities with these interests in mind; 48.3. the Organisation shall provide its Services to all producers and (or) importers, that have tasked the Organisation to perform the Obligations of producers and (or) importers on their behalf, on the basis of equal treatment. 49. Any dispute arising out of or in connection with this Contract shall be resolved by amicable efforts of both Parties. If the Parties fail to resolve the dispute by amicable mutual agreement, the dispute shall be referred to a competent Lithuanian court in accordance with the Law of the Republic of Lithuania. XIII. NOTIFICATIONS 50. All mutual correspondence between the Parties, except Orders and Acceptances of the Orders (if they are made by means of the Software and sent in accordance with Section V of the Contract), shall be sent to the addresses, fax numbers and e-mail addresses specified in Section XV of the Contract, or delivered in person, with signature, unless the Contract provides otherwise. 52. Notifications and other correspondence of a Party shall be deemed as received by the other Party: on the day of delivery if delivered in person, with signature; on the next day after delivery, of sent by registered mail; on the day of dispatch, if sent by fax or e-mail no later than 4:45 PM (if dispatched later, notification and other correspondence shall be deemed delivered on the day following the dispatch). The Parties agree that e-mail notifications sent to the e-mail addresses specified in this Contract shall be considered as properly delivered notifications under this Contract without an electronic signature, under the condition that the receiving Party sends a confirmation of receipt of the e-mail message. 53. The Parties shall undertake to notify each other immediately about any changes in contact information specified in Section XV hereof. XIV. FINAL PROVISIONS 54. Any amendments and extensions of the Contract, except Annex 1, shall be valid only if produced in writing and properly signed by the Parties. 55. Any amendments and extensions of the Contract produced in compliance with Article 54 hereof shall be deemed an integral part of this Contract. 56. The Organisation shall notify the Delegating Agent about tariff amendments referred to in Point 11.2 of the Contract by filling in the Annex 1 to the Contract and presenting it to the Delegating Agent in accordance with the procedures specified in Section XIII hereof. A notification of tariff changes made in accordance with Section XIII of the Contract (a filled-in Annex 1 to the Contract) shall be deemed an integral part of this Contract. 57. The Contract is concluded in English language in two copies, one for each Party, each copy being equally valid. 9 XV. THE PARTIES THE ORGANISATION: Public Agency “Žaliasis Taškas” Company’s code: 110884687 VAT payer’s code: LT 108846811 Register, where data on the Public agency “Žaliasis Taškas” are collected and stored – Register of Legal Entities of the Republic of Lithuania Registered address: A.Goštauto g. 40B, 03163 Vilnius Mailing address: A.Goštauto g. 40B, 03163 Vilnius Tel: +370 5 2331152, 2755907 Fax: +370 5 2336435 E-mail: biuras@ztl.lt Settlement account: LT70 7044060000982224 AB SEB Bankas DELEGATING AGENT: _____ ______________________ Company registration number ________________ VAT payer code _________________ Register where data about the Delegating Agent are gathered and stored – Register of Legal Entities of the Republic of Lithuania Registered address: ________________________ __________________________________________ Mailing address: ____________________ __________________________________________ Telephone _________________ Fax _________________ E-mail: _____________________________ Account: __________________________ Bank _____________________ Kęstutis Pocius Director General __________________________ ________________________________ Company Seal Company Seal 1 0