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COMPENSATION TRADE CONTRACT

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关键字: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,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).
  
ARTICLE2PAYMENT
  Bothpartiesagreetoopenlettersofcreditinfavorofeachother,i.e.PartyAwillopen,atregularintervals,longtermlettersofcreditinfavorofPartyBtopaybyinstallmentsthetotalcostofthemachinesandauxiliaryequipmentprovidedbyPartyB;whereasPartyBwillopensightlettersofcreditinfavorofPartyAtopaytheproductstobedeliveredbyPartyA.PartyAshallpayforthetotalcostofthemachinesandauxiliaryequipmentwiththemoneyremittedbyPartyBasreimbursementfortheproductstobedeliveredbyPartyA.IncasethesumtobepaidbyPartyBfailstocoverthevalueofthelong-termlettersofcreditopenedbyPartyA,thedifferenceshallbemadeupbyPartyBbypayingthatmuchtoPartyAinadvance,beforethelong-termlettersofcreditaredue,toenablePartyAtoreimburseontimethelong-termlettersofcredititopens.Thepaymentofthelong-termlettersofcreditopenedbyPartyAisbasedonPartyB'sopeningasightletterofcreditundertheprovisionsandonitspayingtheadvancerequiredherein.Thus,PartyBwarrants,guaranteesandcovenantsthatitwillopenthelettersofcreditandpaytheadvanceasprovidedherein.
  
ARTICLE3REIMBURSEMENT
  PartyAshallreimbursePartyBforallthemachinesandauxiliaryequipmentsuppliedbyPartyBbydeliveringgoodstoPartyBonamonthlybasisandthereimbursementwilllastfor___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.
  
ARTICLE4STANDARDMONEYANDPRICESTANDARD
  Thestandardmoneyforthistransactionis(Nameofcurrency).Allthemachinery,auxiliaryequipmentandmeasuringandtestinginstruments,etc.providedbyPartyBshallbevaluedwith(Nameofcurrency),whilethegoodsprovidedbyPartyAtoPartyBasreimbursementshallbevaluedwiththebasisprice(Nameofcurrency)ofthesamegoodsexportedbyPartyAatthetimewhenthisagreementisenteredinto,andthetotalprice(Nameofcurrency)shallbechangedintothatof(Nameofcurrency)inaccordancewiththeexchangeratethen.
  
ARTICLE5INTREREST
  PartyAshallpaytheinterestonitslong-termlettersofcreditandtheinterestonthecashinadvancerenderedbyPartyB.Theannualinterestrateisagreeduponat_____%.
  
ARTICLE6TECHNICALSERVICE
  Themachinery,afterarrivalatitsdestination,shallbeinstalledbyPartyA,PartyBshalldispatchitstechnicianstorenderspotinstructionsandothernecessarytechnicalassistanceduringtheinstallationofthemainmachines,asmayberequestedbyPartyAincaseofnecessity,PartyBshallbeliableforthelossesresultedinsuchacourseofinstallationfromtechnicaldefaultonitspart.
  
ARTICLE7ADDITIONALEQUIPMENT
  Duringtheenforcementofthisagreement,ifitisfoundnecessarythat,inadditiontothemachineryandequipmentlistedherein,somenewaccessoriesormeasuringandtestinginstrumentsareneededforcompletionoftheproject,(an)additionalorder(s)maybemadethroughnegotiationbytheparties.Thenewitemsthusaddedshallbeincorporatedinagreement.
  
ARTICLE8INSURANCE
  Themachineryandauxiliaryequipment,aftershipment,shallbeinsuredbyPartyB.ThetitlethereofshallbetransferredintoPartyBafterfullpaymentthereforeismadebyPartyB,thereafter,theunforeseeablelossesconcerningthemachineryandauxiliaryequipmentshallbeindemnifiedforfirstbytheInsuranceCompanytoPartyB,thenPartyBshallremitforPartyA,inproportion,thesumalreadypaidbyPartyAforthemachineryorequipmentinvolvedinthecontingency.
  
ARTICLE9LIABILITYFORBREACHOFAGREEMENT
  PartyBshall,ifitfailstocomplywiththisagreementtomakepurchaseofthegoodsdeliveredbyPartyAasreimbursement,orPartyAshall,ifitfailstocomplywiththisagreementtodeliverthegoodsitisduetoprovide,bedeemedliableforabreachofagreementandshallcompensatethenon-breachingPartyforthelosscausedthereuponandshallpaythenon-breachingPartyafineaccountingfor%ofthetotalvalueofthegoodsinquestion.
  
ARTICLE10PERFORMANCEGUARANTEE
  Toguaranteetheimplementationofthisagreement,eachpartyshallsubmittotheotherpartyaletterofguaranteeissuedbyitsbankrespectively.TheguaranteeingbankofPartyAis______Bank,______,whiletheguaranteeingbankofPartyBis______Bank,______.
  
ARTICLE11AMENDMNET
  Themodificationofthisagreementinparticularcasesshallbeagreeduponbybothpartiesthroughnegotiations.
  
ARTICLE12ForceMajeure
  Incasethatoneorbothpartiesareimpossibletoperformthedutiesprovidedhereinonaccountofforcemajeure,theparty(orparties)incontingencyshallinformtheotherparty(oreachother)ofthecaseimmediatelyandmay,providedthecaseisdulyverifiedbythecompetentauthorities,delayinperformanceofornotperformtherelevantdutieshereunderthebepartiallyorentirelyexemptedfromtheliabilityforbreachofthisagreement.
  
ARTICLE13ARBITRATION
  AnydisputearisingfromorinconnectionwiththisContractshallbesubmittedtoChinaInternationalEconomicandTradeArbitrationCommission,ShenzhenCommissionforarbitrationwhichshallbeconductedinaccordancewiththeCommission'sarbitrationrulesineffectatthetimeofapplyingforarbitration.ThearbitralawardisfinalandbindinguponbothpartiesandtheapplicablelawisthemateriallawofP.R.C.
  Notwithstandinganyreferencetoarbitration,bothPartiesshallcontinuetoperformtheirrespectiveobligationsundertheContractunlessotherwiseagreed.
  
ARTICLELANGUAGEANDEFFECTIVEDATE
  
TherearetwooriginalshereofmaderespectivelyinChineseand______,bothofwhichareofthesameeffect.
  Thisagreementshallcomeintoeffectonthedatewhenbothpartiessettheirhandshereuntoandremaineffectivefor_____years.Uponitsexpiration,thepartiesmay,iftheychoose,extendthetermhereoffor_____yearsorexecuteanewcooperationagreement,providedtheyapplytoandapprovedbytheAuthorityagenciesconcerned.
  
  PartyA        PartyB

  Representativeof___Representativeof____

  (AuthorizedSignature)___(AuthorizedSignature)




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