COMPENSATION TRADE CONTRACT
contractno.:__________
dateofsigning:_________
placeofsigning:_______
thetwoparties:
partya:________________________________
address:________________________________
tel:_________________fax:_______________
e-mail:_________________________________
partyb:________________________________
address:_______________________________
tel:_________________fax:________________
e-mail:_________________________________
witnesseth
whereaspartybhasmachinesandequipment,whicharenowusedinpartyb"smanufacturingof_______,andiswillingtoselltopartyathemachinesandequipment;and
whereaspartybagreestobuytheproducts,_______,madebypartyausingthemachinesandequipmentpartybsupplies,incompensationforthepriceofthemachinesandequipment,and
whereaspartyaagreestopurchasefrompartybthemachinesandequipment,and
whereaspartyaagreestoselltopartybtheproducts,_______,incompensationofthepriceofpartyb"smachinesandequipment;nowtherefore,inconsiderationofthepremisesandcovenantsdescribedhereinafter,partyaandpartybagreeafollows:
article1transactions
a)partybagreestoprovidepartyawith_________machinestobeusedinproduction,theirauxiliarymachinery,,names,specifications,quantity,prices,packing,delivery,-importagreementtobeconcludedbyandbetweenbothpartieswhichshallserveasancomponentparthereof.
b)thetotalvalueofthemachines,auxiliaryequipment,/orothergoods,orwith(designatename)productsmadein(nameoftheplant)(s),quantity,price,delivery,-importagreementandcompensation-goods-supplyagreementaforesaidmaybemergedasonecalledsalesagreementoncompensationtrade(seeappendix).
article2payment
bothpartiesagreetoopenlettersofcreditinfavorofeachother,.partyawillopen,atregularintervals,longtermlettersofcreditinfavorofpartybtopaybyinstallmentsthetotalcostofthemachinesandauxiliaryequipmentprovidedbypartyb;-termlettersofcreditopenedbypartya,thedifferenceshallbemadeupbypartybbypayingthatmuchtopartyainadvance,beforethelong-termlettersofcreditaredue,-termlettersofcreditopenedbypartyaisbasedonpartyb",partybwarrants,guaranteesandcovenantsthatitwillopenthelettersofcreditandpaytheadvanceasprovidedherein.
article3reimbursement
partyashallreimbursepartybforallthemachinesandauxiliaryequipmentsuppliedbypartybbydeliveringgoodstopartybonamonthlybasisandthereimbursementwilllastfor___year(s)and____months(s).thereimbursementshallstartapproximately____month(s)afterthefirstdeliveryofthemachinesand,inprinciple,(s)noticetopartyb,partyamayreimbursepartybinadvance.
withinthereimbursementperiod,partybshall,undertheprovisionsoftheadditionalsalesagreementaforesaid,open,sight,irrevocable,divisibleandassignablelettersofcredit,coveringthefullamount,infavorofpartya.
article4standardmoneyandpricestandard
thestandardmoneyforthistransactionis(nameofcurrency).allthemachinery,auxiliaryequipmentandmeasuringandtestinginstruments,(nameofcurrency),whilethegoodsprovidedbypartyatopartybasreimbursementshallbevaluedwiththebasisprice(nameofcurrency)ofthesamegoodsexportedbypartyaatthetimewhenthisagreementisenteredinto,andthetotalprice(nameofcurrency)shallbechangedintothatof(nameofcurrency)inaccordancewiththeexchangeratethen.
article5intrerest
%.
article6technicalservice
themachinery,afterarrivalatitsdestination,shallbeinstalledbypartya,partybshalldispatchitstechnicianstorenderspotinstructionsandothernecessarytechnicalassistanceduringtheinstallationofthemainmachines,asmayberequestedbypartyaincaseofnecessity,partybshallbeliableforthelossesresultedinsuchacourseofinstallationfromtechnicaldefaultonitspart.
article7additionalequipment
duringtheenforcementofthisagreement,ifitisfoundnecessarythat,inadditiontothemachineryandequipmentlistedherein,somenewaccessoriesormeasuringandtestinginstrumentsareneededforcompletionoftheproject,(an)additionalorder(s).
article8insurance
themachineryandauxiliaryequipment,aftershipment,,thereafter,theunforeseeablelossesconcerningthemachineryandauxiliaryequipmentshallbeindemnifiedforfirstbytheinsurancecompanytopartyb,thenpartybshallremitforpartya,inproportion,thesumalreadypaidbypartyaforthemachineryorequipmentinvolvedinthecontingency.
article9liabilityforbreachofagreement
partybshall,ifitfailstocomplywiththisagreementtomakepurchaseofthegoodsdeliveredbypartyaasreimbursement,orpartyashall,ifitfailstocomplywiththisagreementtodeliverthegoodsitisduetoprovide,bedeemedliableforabreachofagreementandshallcompensatethenon-breachingpartyforthelosscausedthereuponandshallpaythenon-breachingpartyafineaccountingfor%ofthetotalvalueofthegoodsinquestion.
article10performanceguarantee
toguaranteetheimplementationofthisagreement,,______,whiletheguaranteeingbankofpartybis______bank,______.
article11amendmnet
themodificationofthisagreementinparticularcasesshallbeagreeduponbybothpartiesthroughnegotiations.
article12forcemajeure
incasethatoneorbothpartiesareimpossibletoperformthedutiesprovidedhereinonaccountofforcemajeure,theparty(orparties)incontingencyshallinformtheotherparty(oreachother)ofthecaseimmediatelyandmay,providedthecaseisdulyverifiedbythecompetentauthorities,delayinperformanceofornotperformtherelevantdutieshereunderthebepartiallyorentirelyexemptedfromtheliabilityforbreachofthisagreement.
article13arbitration
anydisputearisingfromorinconnectionwiththiscontractshallbesubmittedtochinainternationaleconomicandtradearbitrationcommission,shenzhencommissionforarbitrationwhichshallbeconductedinaccordancewiththecommission".
notwithstandinganyreferencetoarbitration,bothpartiesshallcontinuetoperformtheirrespectiveobligationsunderthecontractunlessotherwiseagreed.
articlelanguageandeffectivedate
therearetwooriginalshereofmaderespectivelyinchineseand______,bothofwhichareofthesameeffect.
,thepartiesmay,iftheychoose,extendthetermhereoffor_____yearsorexecuteanewcooperationagreement,providedtheyapplytoandapprovedbytheauthorityagenciesconcerned.
partyapartyb
representativeof___representativeof____
(authorizedsignature)___(authorizedsignature)