COMPENSATION TRADE CONTRACT.doc

编号: _COMPENSATION TRADE CONTRACT甲 方：_乙 方：_签订日期：_年_月_日ContractNo：DateofSigning：PlaceofSigning：ThetwoParties：PartyA：Address：Tel：Fax：E-mail：PartyB：Address：Tel：Fax：E-mail：WITNESSETHWhereasPartyBhasmachinesandequipment,whicharenowusedinPartyBsmanufacturingof,andiswillingtoselltoPartyAthemachinesandequipment；andWhereasPartyBagreestobuytheproducts,madebyPartyAusingthemachinesandequipmentPartyBsupplies,incompensationforthepriceofthemachinesandequipment,andWhereasPartyAagreestopurchasefromPartyBthemachinesandequipment,andWhereasPartyAagreestoselltoPartyBtheproducts,incompensationofthepriceofPartyBsmachinesandequipment；Nowtherefore,inconsiderationofthepremisesandcovenantsdescribedhereinafter,PartyAandPartyBagreeafollows：ARTICLE1TRANSACTIONSA）PartyBagreestoprovidePartyAwithmachinestobeusedinproduction,theirauxiliarymachinery,accessoriesandsparepartsandavarietyofmeasuringandtestinginstrumentsrequiredintheprocessofproductionThedetailsofthemodels,names,specifications,quantity,prices,packing,delivery,etcthereofshallbespecifiedinanadditionalequipment-importagreementtobeconcludedbyandbetweenbothpartieswhichshallserveasancomponentparthereofB）Thetotalvalueofthemachines,auxiliaryequipment,etcsuppliedbypartBshallbepaidoffbyPartyAwithpartofthemanufacturesmadetherewithand/orothergoods,orwith（designatename）productsmadein（Nameoftheplant）ifbothpartiesagreeThespecificname（s）,quantity,price,delivery,etcofthegoodsgrantedasthemake-uppaymentshallbedecidedinanadditionalcompensationgoods-supplyagreementmadebythepartieswhichshallserveasacomponentparthereofTheequipment-importagreementandcompensation-goods-supplyagreementaforesaidmaybemergedasonecalledsalesagreementoncompensationtrade（Seeappendix）ARTICLE2PAYMENTBothpartiesagreetoopenlettersofcreditinfavorofeachother,iePartyAwillopen,atregularintervals,longtermlettersofcreditinfavorofPartyBtopaybyinstallmentsthetotalcostofthemachinesandauxiliaryequipmentprovidedbyPartyB；whereasPartyBwillopensightlettersofcreditinfavorofPartyAtopaytheproductstobedeliveredbyPartyAPartyAshallpayforthetotalcostofthemachinesandauxiliaryequipmentwiththemoneyremittedbyPartyBasreimbursementfortheproductstobedeliveredbyPartyAIncasethesumtobepaidbyPartyBfailstocoverthevalueofthelong-termlettersofcreditopenedbyPartyA,thedifferenceshallbemadeupbyPartyBbypayingthatmuchtoPartyAinadvance,beforethelong-termlettersofcreditaredue,toenablePartyAtoreimburseontimethelong-termlettersofcredititopensThepaymentofthelong-termlettersofcreditopenedbyPartyAisbasedonPartyBsopeningasightletterofcreditundertheprovisionsandonitspayingtheadvancerequiredhereinThus,PartyBwarrants,guaranteesandcovenantsthatitwillopenthelettersofcreditandpaytheadvanceasprovidedhereinARTICLE3REIMBURSEMENTPartyAshallreimbursePartyBforallthemachinesandauxiliaryequipmentsuppliedbyPartyBbydeliveringgoodstoPartyBonamonthlybasisandthereimbursementwilllastforyear（s）andmonths（s）Thereimbursementshallstartapproximatelymonth（s）afterthefirstdeliveryofthemachinesand,inprinciple,themoneytobereimbursedpermonthshallbepercentofthetotalamountdueforthemachinesWithamonth（s）noticetoPartyB,PartyAmayreimbursePartyBinadvanceWithinthereimbursementperiod,PartyBshall,undertheprovisionsoftheadditionalsalesagreementaforesaid,open,sight,irrevocable,divisibleandassignablelettersofcredit,coveringthefullamount,infavorofPartyAARTICLE4STANDARDMONEYANDPRICESTANDARDThestandardmoneyforthistransactionis（Nameofcurrency）Allthemachinery,auxiliaryequipmentandmeasuringandtestinginstruments,etcprovidedbyPartyBshallbevaluedwith（Nameofcurrency）,whilethegoodsprovidedbyPartyAtoPartyBasreimbursementshallbevaluedwiththebasisprice（Nameofcurrency）ofthesamegoodsexportedbyPartyAatthetimewhenthisagreementisenteredinto,andthetotalprice（Nameofcurrency）shallbechangedintothatof（Nameofcurrency）inaccordancewiththeexchangeratethenARTICLE5INTRERESTPartyAshallpaytheinterestonitslong-termlettersofcreditandtheinterestonthecashinadvancerenderedbyPartyBTheannualinterestrateisagreeduponatARTICLE6TECHNICALSERVICEThemachinery,afterarrivalatitsdestination,shallbeinstalledbyPartyA,PartyBshalldispatchitstechnicianstorenderspotinstructionsandothernecessarytechnicalassistanceduringtheinstallationofthemainmachines,asmayberequestedbyPartyAincaseofnecessity,PartyBshallbeliableforthelossesresultedinsuchacourseofinstallationfromtechnicaldefaultonitspartARTICLE7ADDITIONALEQUIPMENTDuringtheenforcementofthisagreement,ifitisfoundnecessarythat,inadditiontothemachineryandequipmentlistedherein,somenewaccessoriesormeasuringandtestinginstrumentsareneededforcompletionoftheproject,（an）additionalorder（s）maybemadethroughnegotiationbythepartiesThenewitemsthusaddedshallbeincorporatedinagreementARTICLE8INSURANCEThemachineryandauxiliaryequipment,aftershipment,shallbeinsuredbyPartyBThetitlethereofshallbetransferredintoPartyBafterfullpaymentthereforeismadebyPartyB,thereafter,theunforeseeablelossesconcerningthemachineryandauxiliaryequipmentshallbeindemnifiedforfirstbytheInsuranceCompanytoPartyB,thenPartyBshallremitforPartyA,inproportion,thesumalreadypaidbyPartyAforthemachineryorequipmentinvolvedinthecontingencyARTICLE9LIABILITYFORBREACHOFAGREEMENTPartyBshall,ifitfailstocomplywiththisagreementtomakepurchaseofthegoodsdeliveredbyPartyAasreimbursement,orPartyAshall,ifitfailstocomplywiththisagreementtodeliverthegoodsitisduetoprovide,bedeemedliableforabreachofagreementandshallcompensatethenon-breachingPartyforthelosscausedthereuponandshallpaythenon-breachingPartyafineaccountingforofthetotalvalueofthegoodsinquestionARTICLE10PERFORMANCEGUARANTEEToguaranteetheimplementationofthisagreement,eachpartyshallsubmittotheotherpartyaletterofguaranteeissuedbyitsbankrespectivelyTheguaranteeingbankofPartyAisBank,whiletheguaranteeingbankofPartyBisBank,ARTICLE11AMENDMNETThemodificationofthisagreementinparticularcasesshallbeagreeduponbybothpartiesthroughnegotiationsARTICLE12ForceMajeureIncasethatoneorbothpartiesareimpossibletoperformthedutiesprovidedhereinonaccountofforcemajeure,theparty（orparties）incontingencyshallinformtheotherparty（oreachother）ofthecaseimmediatelyandmay,providedthecaseisdulyverifiedbythecompetentauthorities,delayinperformanceofornotperformtherelevantdutieshereunderthebepartiallyorentirelyexemptedfromtheliabilityforbreachofthisagreementARTICLE13ARBITRATIONAnydisputearisingfromorinconnectionwiththisContractshallbesubmittedtoChinaInternationalEconomicandTradeArbitrationCommission,ShenzhenCommissionforarbitrationwhichshallbeconductedinaccordancewiththeCommissionsarbitrationrulesineffectatthetimeofapplyingforarbitrationThearbitralawardisfinalandbindinguponbothpartiesa