Electrode Plate Supply Contract

 
Contract No.: CS-20100801-1
 
Signing Place: Changxing, Zhejiang

Party A: Changxing Chisen Electric Co., Ltd.
Party B: Anqing Borui Power Supply Co., Ltd.

On Party A’s production and operation demands and in the principle of mutual
benefit and common development, both parties hereby enter into this Contract and
hereby agree as follows:
1.
Subject Matters: every type of electrode plate used in electricity-powered
bicycle batteries, such as6-DZM-12

2.
Subject Matters and Delivery Method；

 

 
a.
With the development of the Market, Party A has obvious off and peak seasons on
demand of the subject matters, which will bring lots of inconvenience during the
cooperation process. Based on this condition, both parties do hereby indentify
the 1st, 2nd, 3rd, 7th, 8th and 9th month of each year as the peak season, and
the rest of the months as the off season; the goods supply volume in off season
will be 65% of that of the peak season.

 

 
b.
Party B shall promise that the goods supply volume will be not less than   sets
per day in peak season, with sets at least per day in off season. The specific
goods supply volume and specifications will be subject to the orders placed by
Party A.

 

 
c.
In order to ensure a smooth production, Part A should recognize goods supply
volume and specifications of next month between the 25th day and 30th day of
this month.

 

 
d.
Unless Party A permitted, Party B shall not enter into electrode plate supply
agreement with the third Party, or which will be deemed as the breach of
contract. Party A is entitled to warn or pose other punish measures on Party B
as per the terms specified in clause 2 under item 9.

 

 
e.
Delivery Site: Party B shall arrange the transportation vehicle by itself and
convey the average volume of each week to the place pointed by Party A.

 

 
f.
Delivery Term: Subject to the orders placed by Party A.

 
 
 

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3. Price and Payment Terms
 

 
a.
Unit Price: The price of electrode plates supplied by Party B should be the sum
of the average electrolytic lead price of Shanghai Nonferrous Metal Web (from
the first day to the last day of one month) and the processing charges which
is_RMB4200/ton.

 

 
b.
Since the electrolytic lead price will not be settled till the end of the month,
the billing price this month should be calculated according to the average
electrolytic lead price of last month. After the price is settled in the end of
this month, both parties should provide refund for any overpayment or a
supplemental payment for any deficiency according to the right price.

 

 
c.
The payment should be on weekly basis and the payment should be settled before
Friday based on tax receipt. (acceptance bill)

4.
Delivery Terms and Place

Party B should deliver products to the pointed place by Party A (within
Changxing City), and it is in Party B's charge.

5.
Packing Standards and the Supply & Recycling of Packing Materials

Party should make sure that all products should be delivered to Party A's
warehouse without any damage, and if any damage occurs, it is all on Party B’s
account.

6.
Quality Inspection Standards, Methods, Place and Time Limit

 
1.
After Party B delivers products to the pointed place, Party A should do sampling
inspection with 3 to 4 days according to the only standards, which is the pole
plate technique agreement signed by both parties. If the products are qualified,
Party should accept them into warehouse. If Party A finds any problems during
manufacturing with these products, Party B should settle the problems
immediately.

 
2.
Since it bears risk and relativity for Party A to do inspection within such
short time, the unchecked products do not mean qualified. Therefore, if Party A
find that Party B ‘s Products do not meet the qualified products standards set
by both Parties, Party B should reclaim and replace them , or have them disposed
on site.

7.
Risk Liability on Transportation

Any damage or risk shall be on Party B’s account before the products being
accepted by Party A.

8.
Confidential Items

Party B is responsible for keeping the electrode plate’s production
technologies, design, techniques, management and other operation related
documents confidential. If violated, Party B should indemnify all the damages
caused on Party A.  The confidential term will be long term and without time
limitations.

9.
Breach Liabilities

 
1.
Party B shall promise that the products meet the requirements set in another
electrode plate technology agreement. If not meet the requirement, Party A is
entitled to reject the products. In case Party B is not able to meet Party A’s
requirements over three times, Party A is entitled to terminate the contract
unilaterally.

 
 

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2.
Party B shall supply goods subject to the orders made by both Parties and ensure
the required quality and quantity. If any loss caused on Party A because of
supplying goods behind time, Party B should bear penalties of RMB 3 to 5/ set.

 
3.
In case Party A’s battery products have batched quality problems because of the
defective electrode plate supplied by Party B. Base on the recognition of both
Parties, Party B shall take all the loss caused on Party A if goods return and
replacement happens.

 
4.
Party A shall pay to Party B in a timely fashion according to the contract. If
Party A fails to pay off in time and the balance haven’t been settled on each
delivery before due date. If that caused the supply shortage , Party A shall not
pose any punish measures on Party B and shall compensate Party B 1‰ of the
delayed payment.

 
5.
Other breach liabilities shall be subject to the contract law.

10.Force Majeure
Due to the force majeure, causing the non-performance or the damages to either
party, either party should notify the other party in written (or fax) for its
confirm in one week. Both Parties could partly or wholly be indemnified from the
breach liability.

11.
Dispute Settlement

Any dispute shall be solved through negotiation. If no settlement can be
reached, the case in dispute shall be subjected to local People’s Court at the
signing place of this Contract.

12. The Contract is made in duplicate and come into effect after being signed
and sealed by the Parties. The fax copy of electrode plate technology agreement
orders signed by both Parties will be attached hereto. If other supplemental
agreement made shall bear same legal effect.

13.
Valid Term

The valid term of the contract is one year, starting from August 2, 2010 to
August 1, 2010. (the copy bears the same legal effect with the original.)
  
Party A: Changxing Chisen Electric Co., Ltd.
Representative:
August 2, 2010
  
Party B: Anqing orui Power Supply Co., Ltd.
Representative:
August 2, 2010

 
 

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