COMPENSATION TRADE CONTRACT

COMPENSATIONTRADECONTRACTContractNo.：____________DateofSigning：_________PlaceofSigning：________ThetwoParties：PartyA：_______________________________Address：_______________________________Tel：_________________Fax：_____________E-mail：________________________________PartyB：_______________________________Address：_______________________________Tel：_________________Fax：_____________E-mail：_________________________________WITNESSETHWhereasPartyBhasmachinesandequipment,whicharenowusedinPartyB''smanufacturingof_______,andiswillingtoselltoPartyAthemachinesandequipment；andWhereasPartyBagreestobuytheproducts,_______,madebyPartyAusingthemachinesandequipmentPartyBsupplies,incompensationforthepriceofthemachinesandequipment,andWhereasPartyAagreestopurchasefromPartyBthemachinesandequipment,andWhereasPartyAagreestoselltoPartyBtheproducts,_______,incompensationofthepriceofPartyB''smachinesandequipment；Nowtherefore,inconsiderationofthepremisesandcovenantsdescribedhereinafter,PartyAandPartyBagreeafollows：ARTICLE1TRANSACTIONSA）PartyBagreestoprovidePartyAwith_________machinestobeusedinproduction,theirauxiliarymachinery,accessoriesandsparepartsandavarietyofmeasuringandtestinginstrumentsrequiredintheprocessofproduction.Thedetailsofthemodels,names,specifications,quantity,prices,packing,delivery,etc.thereofshallbespecifiedinanadditionalequipment-importagreementtobeconcludedbyandbetweenbothpartieswhichshallserveasancomponentparthereof.B）Thetotalvalueofthemachines,auxiliaryequipment,etc.suppliedbypartBshallbepaidoffbyPartyAwithpartofthemanufacturesmadetherewithand/orothergoods,orwith（designatename）productsmadein（Nameoftheplant）ifbothpartiesagree.Thespecificname（s）,quantity,price,delivery,etc.ofthegoodsgrantedasthemake-uppaymentshallbedecidedinanadditionalcompensationgoods-supplyagreementmadebythepartieswhichshallserveasacomponentparthereof.Theequipment-importagreementandcompensation-goods-supplyagreementaforesaidmaybemergedasonecalledsalesagreementoncompensationtrade（Seeappendix）.ARTICLE2PAYMENTBothpartiesagreetoopenlettersofcreditinfavorofeachother,i.e.PartyAwillopen,atregularintervals,longtermlettersofcreditinfavorofPartyBtopaybyinstallmentsthetotalcostofthemachinesandauxiliaryequipmentprovidedbyPartyB；whereasPartyBwillopensightlettersofcreditinfavorofPartyAtopaytheproductstobedeliveredbyPartyA.PartyAshallpayforthetotalcostofthemachinesandauxiliaryequipmentwiththemoneyremittedbyPartyBasreimbursementfortheproductstobedeliveredbyPartyA.IncasethesumtobepaidbyPartyBfailstocoverthevalueofthelong-termlettersofcreditopenedbyPartyA,thedifferenceshallbemadeupbyPartyBbypayingthatmuchtoPartyAinadvance,beforethelong-termlettersofcreditaredue,toenablePartyAtoreimburseontimethelong-termlettersofcredititopens.Thepaymentofthelong-termlettersofcreditopenedbyPartyAisbasedonPartyB''sopeningasightletterofcreditundertheprovisionsandonitspayingtheadvancerequiredherein.Thus,PartyBwarrants,guaranteesandcovenantsthatitwillopenthelettersofcreditandpaytheadvanceasprovidedherein.ARTICLE3REIMBURSEMENTPartyAshallreimbursePartyBforallthemachinesandauxiliaryequipmentsuppliedbyPartyBbydeliveringgoodstoPartyBonamonthlybasisandthereimbursementwilllastfor___year（s）and____months（s）.Thereimbursementshallstartapproximately____month（s）afterthefirstdeliveryofthemachinesand,inprinciple,themoneytobereimbursedpermonthshallbe______percentofthetotalamountdueforthemachines.Witha______month（s）noticetoPartyB,PartyAmayreimbursePartyBinadvance.Withinthereimbursementperiod,PartyBshall,undertheprovisionsoftheadditionalsalesagreementaforesaid,open,sight,irrevocable,divisibleandassignablelettersofcredit,coveringthefullamount,infavorofPartyA.ARTICLE4STANDARDMONEYANDPRICESTANDARDThestandardmoneyforthistransactionis（Nameofcurrency）.Allthemachinery,auxiliaryequipmentandmeasuringandtestinginstruments,etc.providedbyPartyBshallbevaluedwith（Nameofcurrency）,whilethegoodsprovidedbyPartyAtoPartyBasreimbursementshallbevaluedwiththebasisprice（Nameofcurrency）ofthesamegoodsexportedbyPartyAatthetimewhenthisagreementisenteredinto,andthetotalprice（Nameofcurrency）shallbechangedintothatof（Nameofcurrency）inaccordancewiththeexchangeratethen.ARTICLE5INTRERESTPartyAshallpaytheinterestonitslong-termlettersofcreditandtheinterestonthecashinadvancerenderedbyPartyB.Theannualinterestrateisagreeduponat_____%.ARTICLE6TECHNICALSERVICEThemachinery,afterarrivalatitsdestination,shallbeinstalledbyPartyA,PartyBshalldispatchitstechnicianstorenderspotinstructionsandothernecessarytechnicalassistanceduringtheinstallationofthemainmachines,asmayberequestedbyPartyAincaseofnecessity,PartyBshallbeliableforthelossesresultedinsuchacourseofinstallationfromtechnicaldefaultonitspart.ARTICLE7ADDITIONALEQUIPMENTDuringtheenforcementofthisagreement,ifitisfoundnecessarythat,inadditiontothemachineryandequipmentlistedherein,somenewaccessoriesormeasuringandtestinginstrumentsareneededforcompletionoftheproject,（an）additionalorder（s）maybemadethroughnegotiationbytheparties.Thenewitemsthusaddedshallbeincorporatedinagreement.ARTICLE8INSURANCEThemachiner