Document:

Steel and Iron Products Sale Contract of Shanxi Taigang Stainless Steel Co., Ltd.

	
Type of the Order: Y002

	
Order No.: 101684

	
Date of Execution: May 31, 2008

	
Place of Execution: Tai Yuan

	
Date of Delivery: June 30, 2008

	
Factory of Delivery: Hot Strip Rolling Factory

	
Seller

	
Name: Shanxi Taigang Stainless Steel Co., Ltd.

Address: #113 North Jiefang Road, Taiyuan

Zip Code: 030003 Fax: 0391-3130793 Tel.

Opening Bank: Industrial and Commercial Bank of China, Taiyuan Branch

Bank Account: 0502125109022

Tax I.D.: 140116701011888

Legal Representative or Authorized Representative of the Seller

Stamp

	
Purchaser

	
Name: Shanxi Guolian Pipe Industry Group Co., Ltd.

Address: Yuci Industrial Park

Zip Code: 030600

Fax:

Tel.: 0354-3966238

Opening Bank: Agricultural Bank, Jinzhong Branch, Daobei Sub-branch

Bank Account: 380001040009399

Tax I.D.:

Legal Representative or Authorized Representative of the Purchaser

Stamp

	
Other Contents

	
1. overage and shortage      ; where the increase or the decrease in the actual weight per piece exceeds the scope of overage and shortage,

2. In case of any special requirements in technical conditions,     ; and where the Seller handle the rail transportation for and on behalf of the Purchaser, the freight and miscellaneous charges shall be borne by the Purchaser.

3. In case of any inconsistence between the delivery and the Contract, the Purchaser shall launch the claim with the Seller within 10 days upon its receipt of the goods and shall keep the goods under the conditions existing at the time of delivery.

 

  

  

  

 

	 	

4. In case of any dispute, the parties shall raise the litigation with the local People’s court of the competent jurisdiction in the place where the Seller is located.

5. The Contract shall not be amended or rescinded unless agreed by the parties in writing through negotiations.

	
Remarks:

	
Terms of Payment: payment before the 10th day of the month; subject to the planned order.

	
Line No.

	
Name

	
Steel No.

	
Specifications

	
Ordered Quantity (Ton)

	
Standards

	
Tax-inclusive Price (RMB YUAN/Ton)

	
0010

	
Pipeline Steel Strip

	
X46

	
12,200 mm X1, 280.000 mm

	
1800.000

	
GB/T14164-2005

	
Market Price prevailing in Taiyuan at the time of delivery

	
Receiver

	
Shanxi Guolian Pipe Industry Group Co., Ltd.

	  	
Special Line

	  	
Arrival at the Destination Station

	
Self-pickup

	
Notes: packing code: ordinary; special requirement 1 from the client: PSL2 quality level set forth in the implemented standards; special requirement 2 from the client: RTO 5-360-524MPA; special requirement 3 from the client: N<=0.01%, AL: 0.025-0.055%, ex-factory upper deviation of thickness (+): 0.100 mm, ex-factory lower deviation of thickness (-): -0.300 mm

 

  

  

  

 

	
Line No.

	
Name

	
Steel No.

	
Specifications

	
Ordered Quantity (Ton)

	
Standards

	
Tax-inclusive Price (RMB YUAN/Ton)

	
0020

	
Pipeline Steel Strip

	
L200

	
6.300 mm X1, 500.000 mm

	
2010.000

	
GB/T14164-2005

	
Market Price prevailing in Taiyuan at the time of delivery

	
Receiver

	
Shanxi Guolian Pipe Industry Group Co., Ltd.

	  	
Special Line

	  	
Arrival at the Destination Station

	
Self-pickup

	
Notes: packing code: ordinary; special requirement 1 from the client: Charpy shock under -200C>=21Jl ; special requirement 2 from the client: RT0 5>=524MPA; special requirement 3 from the client: to deliver based on the component performance of S200 corresponding to the standards; ex-factory upper deviation of thickness (+): 0.000 mm, ex-factory lower deviation of thickness (-): -0.400 mm

	
Line No.

	
Name

	
Steel No.

	
Specifications

	
Ordered Quantity (Ton)

	
Standards

	
Tax-inclusive Price (RMB YUAN/Ton)

	
0030

	
Pipeline Steel Strip

	
B

	
12,200 mm X1, 280.000 mm

	
1200.000

	
GB/T14164-2005

	
Market Price prevailing in Taiyuan at the time of delivery

	
Receiver

	
Shanxi Guolian Pipe Industry Group Co., Ltd.

	  	
Special Line

	  	
Arrival at the Destination Station

	
Self-pickup

	
Notes: packing code: ordinary; special requirement 1 from the client: PSL2 quality level set forth in the implemented standards; special requirement 2 from the client:; special requirement 3 from the client: to deliver based on the component performance of S215 corresponding to the standards, ex-factory upper deviation of thickness (+): 0.100 mm, ex-factory lower deviation of thickness (-): -0.300 mm

	
In Total

	  	  	
Amount (RMB YUAN)

	  

 Notes: This Contract is a standard contract. The Purchaser is advised to carefully review the contract.

  

  

  

 

2008 Purchase and Sale Agreement on Hot Rolled Steel Strip (1250mm Unit)

Party A: Delong Steel Co., Ltd.

Party B: Shanxi Yuci Guolian Steel Pipe Co., Ltd.

In consideration of the purchase and sales of hot rolled steel strips in 2008, Party A and Party B agree to conclude the Agreement as below through adequate negotiations and based on the principles of “mutual benefits, risks sharing, long-term cooperation and interests sharing”.

	
I.

	
Allocation of Resources

	
1.

	
Party B purchases the hot rolled steel strips in a total quantity of 36,000 tons from Party A from January 2008 to December 2008. Party B shall order the goods in equal quantity in each month. The agreed quantity per month is 3,000 tons. The parties allow a deviation of +/- 10% in the annual quantity and the quantity delivered in each month.

	
2.

	
Due to the equipment of Party A, the specifications of the hot rolled steel strips supplied by Party A shall be subject to the specifications which Party A may produce currently. The other specifications shall be subject to the separate agreement by the parties.

	
II.

	
Security Deposit and Price

	
1.

	
Party B shall pay the security deposit as per the agreed total quantity (subject to the attached details of security deposit). Upon the achievement of the agreement total quantity, Party A will refund the security deposit in the form of goods.

	
2.

	
Party B shall effect about 70% monthly payment before the 25th day of each month to confirm the production plan of next month. The parties shall determine such details as specifications, quantity and date of delivery through negotiations. Party B shall pay the remaining amount before the 5th day of next month.

	
3.

	
The price shall be subject to the sale price of Party A prevailing on the date of payment arrival. Upon the arrival of the payment, the price shall not be increased if the sale price of Party A is raised but shall be decreased if the sale price of Party A is decreased. In case of any significant fluctuation in the market, the parties shall settle the problems so arising based on the principles of “mutual benefits and risks sharing”. The funds in excess of the amount for the agreed monthly quantity may be carried forward to the next month; provided that the price shall be subject to the then-current sale price of Party A.

  

 

  

   

	
4.

	
The preferential policies granted by Party A to the contractual clients shall apply to the hot rolled steel strips purchased by Party B within the agreed quantity based on the polices of Party A on hot rolled steel strips.

	
III.

	
Responsibilities and Obligations

	
1.

	
In case of any quality problem arising during the time when Party B uses the products of Party A, Party A shall arrive at the site of Party B in the possibly shortest time to confirm and settle the problems through negotiations.

	
2.

	
Party A is responsible and obligated to serve Party B for the whole process. Party A shall dispatch the business personnel on a regular basis to Party B to carry out the relevant marketing services.

	
3.

	
Party A and Party B shall frequently exchange the relevant information and communicate with each other based on the principles of “sharing market and information” so that Party A may better serve Party B.

	
IV.

	
Liabilities for Breaching the Agreement

	
  

	
1.

	
Party A agrees that one-month agreed quantity may be waived for the benefits of Party B during the term of the Agreement taking full account of the overhaul of the equipment and the other pertinent factors of Party B. Where Party B fails to achieve the agreed quantity for two months (including the month when the agreed quantity may be waived), Party A will deduct 50% security deposit. Where Party B fails to achieve the agreed quantity for three months (including the month when the agreed quantity may be waived), Party A will deduct 100% security deposit, cancel the qualification of Party B under the Agreement and charge the fees originally exempted under the preferential policies.

	
  

	
2.

	
One-month agreed quantity may also be waived for the benefits of Party A. Where Party A fails to deliver the agreed quantity for two months (including the month when the agreed quantity may be waived), Party A shall indemnify Party B at 50% of the security deposit. Where Party A fails to deliver the agreed quantity for three months (including the month when the agreed quantity may be waived), Party A shall indemnify Party B at 100% of the security deposit.

	
V.

	
Miscellaneous

	
  

	
1.

	
The Agreement shall be performed in Xingtai, Hebei Province.

  

 

  

	
  

	
2.

	
Any and all the disputes arising out of or in connection with the Agreement shall be settled by Party A and Party B through negotiations. Where no agreement may be reached by the parties through such negotiations, the parties shall submit the disputes to the local arbitration institution in the place where Party A in located for arbitration.

	
  

	
3.

	
Matters not mentioned herein shall be settled by Party A and Party B through negotiations.

	
  

	
4.

	
The Agreement shall be made in two counterparts. Party A and Party B shall hold one counterpart respectively. The Agreement shall take effect after duly signed and stamped by Party A and Party B and shall remain in effect from January 1, 2008 to December 31, 2008. Party A and Party B shall separately negotiate with each other regarding the renewal of the Agreement upon the expiry of the valid term hereof.

 

	
For and on behalf of

	
For and on behalf of

	
Party A: Delong Steel Co., Ltd.

	
Party B: Shanxi Yuci Guolian Steel Pipe Co., Ltd.

	
Signed by:

	
Signed by”

	
Jan.1, 2008

	
Jan.1, 2008

 

  

 

  

2009 Warehousing, Purchase and Sale Agreement on Medium-Width Steel Strips

Party A: Lingyuan Iron & Steel Co., Ltd.

Party B: Shanxi Guolian Spiral Tubulation Co., Ltd.

In consideration of the warehousing, purchase and sales of medium-width steel strips in 2009, Party A and Party B agree to conclude the Agreement as below through adequate negotiations and based on the principles of “mutual benefits, risks sharing, long-term cooperation and interests sharing”.

1. Quantity to be warehoused

1.1 Party B purchases the medium-width steel strips in a total quantity of 60,000 tons from Party A for the whole year. Party B shall order 5,000 tons in each month. The parties allow a deviation of +/- 10% in the annual quantity and the monthly quantity.

1.2 Party A guarantees that the stock to be warehoused by it for and on behalf of Party B will not be less than: 3,000 tons in Yuci, 1,000 tons in Xi’an and 1,000 tons in Taiyuan. The exact quantity is adjustable.

1.3 The specifications of the goods available for ordering shall be subject to the common specifications of the products of Party A. The special specifications shall be subject to the separate agreement by the parties.

1.4 Party A shall timely send the medium-width steel strips to the designated warehouses based on the plan of resources submitted by Party B.

2. Performance and Price

2.1 For the purpose of guaranteeing the performance of the warehousing agreement, Party B shall pay the performance bond (in cash or by acceptance) in an amount of RMB 500/ton based on the total monthly quantity (or RMB 2,500,000 in total). The performance bond is interest free and Party A shall refund the same in the form of goods upon the achievement of the total annual quantity.

2.2 Party B shall submit the purchase plan of medium-width steel strips for the next month in writing and specify the place of warehousing (Yuci, Taiyuan or Xi’an) before the 25th day of each month.

  

 

  

2.3 Party A entrusts Shanxi 525 Warehousing and Transportation Co., Ltd., Taiyuan East (address pending) and Shaanxi Assets Warehousing and Transportation Corporation to respectively store, keep, load and unload and transport the medium-width steel strips of Lingyuan Iron & Steel Co., Ltd.. Party A shall deliver the medium-width steel strips to the designated warehouses in due time as required by Party B.

2.4 Upon the achievement of the quantity to be pick up in the month as agreed herein, the preferential sales policies of Lingyuan Iron & Steel Co., Ltd. shall apply to the goods so picked up. (i.e. the price shall be decreased by at least RMB 20/ton (including tax) based on the sale price of Party A and the preferential amount shall be reduced at the time of settlement in the month where Party A notifies Party B of its adjustment to the preferential extent based on the market conditions before the settlement of the month.)

2.5 Party A shall determine the actual settlement price based on the market conditions in the month and the steel strips meetings of East China Region and shall promulgate the actual settlement price, in principle, before the 28th day of each month.

2.6 The funds for the quantity in excessive of the agreed quantity of supply of the month may be carried forward to the next month; provided, however, that the price shall be subject to the price policies of Lingyuan Iron & Steel Co., Ltd. in the next month rather than being locked.

2.7 The transportation subsidy of RMB 30/ton shall apply and shall be paid by bank acceptance bill without discount.

2.8 Party B shall effect the payment to the local business personnel of Lingyuan Iron & Steel Co., Ltd. and shall pick up the goods based on the valid delivery voucher issued by Lingyuan Iron & Steel Co., Ltd.. The payment shall be settled directly with Lingyuan Iron & Steel Co., Ltd.. Party B shall pick up the goods in an equal quantity in each month. The warehousing fee and the transportation fee shall be borne by Party B. Party A shall collect the warehousing fee and settle the same with the warehouse owners.

2.9 Where Party B requires for increased quantity, Party B shall buy out the quantity of warehousing before Party A may send the goods.

2.10 Party B shall buy out the one-month quantity of warehousing in due time if the quantity is within the agreed quantity. Party B shall be deemed to have breached the Agreement if it fails to buy out the stocks in the warehouses, which are within the agreed quantity, upon the expiry of the term of warehousing.

 

  

  

  

 

3. Responsibilities and ObligationsParty B shall guarantee the achievement of the monthly quantity of purchase upon its payment of the security deposit; provided however, that the following rules shall prevail upon the full consideration of the overhaul of the equipment and the other relevant factors of Party B:

3.1 Where Party B fails to achieve the agreed quantity in the first month, Party B will be relieved from its liabilities.

3.2 Where Party B fails to achieve the agreed quantity in the second month, a certain amount shall be deducted from the security deposit at RMB 10/ton based on the quantity not achieved in the month. i.e. amount to be deducted from the security quantity X RMB 10/ton.

3.3 Where Party B fails to achieve the agreed quantity in the third month, Party A will implement the policies for the non-contractual clients when settling the payments for the goods sent in the month and shall deduct the security deposit at RMB20/ton based on the agreed quantity of the month.

3.4 Where Party B fails to achieve the agreed quantity in the fourth month, Party A will implement the policies for the non-contractual clients when settling the payments for the goods sent in the month, deduct all the security deposit for the agreed quantity of the whole year, terminate the Agreement and require Party B to return all the amounts which have been exempted under the relevant preferential policies.

3.5 Where Party B fails to achieve the agreed quantity by the reasons attributable to Party A, Party B will be relieved from its liabilities.

3.6 In case of the goods of special specifications, which may be delayed in arrear in another month, the parties shall be deemed to have duly performed the Contract.

4. Miscellaneous

4.1 The Agreement shall be performed in Lingyuan, Liaoning Province.

4.2 Matters not mentioned herein shall be settled by Party A and Party B through negotiations. Where no agreement may be reached by the parties through such negotiations, the parties shall submit the matters to the Chaoyang arbitration commission in located for arbitration.

	
4.2

	
The Agreement shall be made in two counterparts. Party A and Party B shall hold one counterpart respectively. The Agreement shall take effect on and from April 1, 2009 after duly signed and stamped by Party A and Party B and the security deposit duly arrives at the account and shall end on March 31, 2010. Where either party intends to change the Agreement, it shall notify the other party one month in advance. The Agreement may not be changed unless and until otherwise agreed by the parties through negotiations.

  

 

  

 

	
For and on behalf of

	
For and on behalf of

	
Party A: Lingyuan Iron & Steel Co., Ltd.

	
Party B: Shanxi Guolian Spiral Tubulation Co., Ltd.

	
Signed by:

	
Signed by:

	
March 31, 2009

	
March 31, 2009

 

  

 

  

Purchase and Sale Contract

Contract No.: BGGL2008005

Place of Execution: Dalian

Date of Execution: August 5, 2008

 Seller: Dalian Binggong Trade Co., Ltd.

 Purchaser: Shanxi Guolian Pipe Industry Group Co., Ltd.

 I. Name, Trademark, Model, Manufacturer, Quantity, Amount, Date of Supply and Quantity of Supply

	
Name

	
Trademark

	
Specifications and Model

	
Manufacturer

	
Unit

	
Quantity (ton)

	
Unit Price (RMB YUAN)

	
Total Amount (RMB YUAN)

	
Date and Quantity of Delivery and Pickup

	
Hot Rolled Medium-Width Strip

	
Q235B

	
(5.6-9.5) * (520-750)

	
Linggang

	
Ton

	
5560

	

______________

Tax-inclusive ex warehouse price

	
_____

	
Subject to the Agreement (No.: BGGL002)

	
Total Amount (in capital): ____________(subject to the actual settlement amount)

	
II. Quality Standards: with reference to GB3274-88/GB700-88/GB709-88

	
III, Place of Delivery: to be transported by rail to the station of Yuci, Shanxi Province and the warehouse owned by Shanxi 525 Warehousing and Transportation Co., Ltd..

	
IV. Method of Transportation and Fees: Rail Transportation

	
V. Reasonable Loss and Method of Measurement: subject to the weight list of Linggang with the reasonable deviation of 0.3% in weight.

	
VI. Packing Standards: subject to the ex factory packing provided by Linggang.

	
VII. Standards and Methods of Inspection and Acceptance: with reference to Article 2 of the Contract.

 

  

  

  

 

	
VIII. Method and Period of Payment: The Purchaser shall pay the performance bond at 30% of the total amount in advance and effect all the payment of the goods before January 30, 2009 subject to the provisions on the practice and the period stipulated in the agreement between the parties (No.: BGGL002).

	
IX. Liabilities for Breaching the Contract: subject to the agreement between the parties (No.: BGGL002).

	
X. Execution and Performance of the Contract: The Contract shall become legally binding and the parties shall strictly perform the Contract on and from the date when the Contract is duly executed. The Contract shall be made in four counterparts. Each party shall hold two counterparts.

	
XI. Disputes Settlement: Any and all the disputes arising out of the performance of the Contract shall be settled by the parties through friendly negotiations. Where no agreement may be reached through such negotiations, the parties may launch litigation with the local People’s court in the place where the Seller is located.

	
XII. The Contract shall take effect after the parties duly sign and stamp the Contract.

	
Seller

	
Purchaser

	
Name (Stamp): Dalian Binggong Trade Co., Ltd.

Address: #158 Youhao Road, Zhongshan District, Dalian

Legal Representative:

Authorized Representative: Wang Zhe

Tel.: 0411-82520161

Telex and Registered Mail:

Opening Bank: Industrial and Commercial Bank, Dalian Zhongshan Square Sub-Branch

Account No.: 3400200129006435850

Zip Code: 116001

	
Name (Stamp): Shanxi Guolian Pipe Industry Group Co., Ltd.

Address: No. 1 Road, Yuci Industrial Park, Jinzhong

Legal Representative: Liu Xudong

Authorized Representative: Li Dehong

Tel.: 0354-3966170

Telex and Registered Mail:

Opening Bank: Agricultural Bank, Jinzhong Branch, Daobei Sub-branch

Account No.: 3800001040009399

Zip Code: 030600

	In 4 counterparts	Valid Term: August 5, 2008 to February 4, 2009   

 

  

 

  

Purchasing Agency Contract in Domestic Trade

Contract No.: ZG-UCGL;-080901-043

Place of Execution: Beijing

Date of Execution: September 28, 2008

Principal (Party A): Shanxi Guolian Pipe Industry Group Co., Ltd.

Address: Yuci Industrial Park, Jinzhong, Shanxi Pronvince

Tel. No.: 0354*3966238

Fax: 0354-3967668

Agent (Party B): Sinosteel Iron & Steel Co., Ltd.

Address: #8 Haidian Street, Haidian District, Beijing

Tel. No.: 010-62688717

Fax: 010-62688633

In consideration that Party A entrusts Party B to purchase the following goods, Party A and Party B conclude the following Contract in accordance with the Contract Law of the People’s Republic of China and the other applicable laws and regulations and through friendly negotiations.

	
Name

	
Specifications (mm)

	
Material

	
Quantity (ton)

	
Tax-Inclusive Unit Price (RMB YUAN/ton)

	
Manufacturer

	
Plain Carbon Steel

	
(6.2-12.3) * (1280-1610)

	
Q235B

	
5475

	
_________

	
Shanxi Taigang Stainless Steel Co., Ltd.

	
In total (MRB)

	
___________ (in capital) _______________

Notes: The price shall be subject to the actual settlement price between Party B and Shanxi Taigang Stainless Steel Co., Ltd. in the period.

  

 

  

2. Supplier: Shanxi Taigang Stainless Steel Co., Ltd.

3. Quality and Technical Requirements and Standards and Packing Requirement: subject to the standards of Shanxi Taigang Stainless Steel Co., Ltd..

4. Time and Conditions of Order:

Party B shall conclude the purchase and sale contract with Shanxi Taigang Stainless Steel Co., Ltd. (hereinafter referred to “Shangxi Taigang”) based on the standard contract of Shangxi Taigang within 3 working days upon its receipt of the performance bond from Party A, and shall effect the payment to Shangxi Taigang for and on behalf of Party A. Party A accepts any and all the provisions stipulated herein. Party B will effect the payment to Shangxi Taigang.

5. Delivery, Storage and Fees

Time of delivery: The goods shall be delivered at Shanxi Yuci 525 Warehouse within 60 days from the date when Party B effects the payment to the manufacturer. The receiver shall be Sinosteel Iron & Steel Co., Ltd.. The manufacturer shall handle the transportation at the risks of Party A. Party A shall pick up the delivery.

Place of Storage: Shanxi Yuci 525 Warehouse. As the place of storage is designated by Party A, Party A shall undertake the joint and several liabilities if the goods of Party B suffers from any shortage, damage or loss due to the improper management in the designated warehouse or the designated warehouse delivers the goods to Party A without the written order from Party B.

Any and all the shipment and transportation fees, port charges, warehousing fees, warehouse transfer fees, warehouse-out charges and other pertinent fees and expenses shall be borne by Party A. The goods control fees shall be borne by Party A. Party A shall pay such fees to Party B and Party B shall collect and pay the same to the relevant parties for and on behalf of Party A.

6. Commission and Interest

Party A shall pay the commission to Party B at 1.0% of the total payment of the goods (including tax). Party A shall also reimburse Party B the interests and the taxes generated by the advance payment effected by Party B by the method stipulated in Article 7 hereof.

7. Method and Schedule of Payment

(1) Performance Bond

  

 

  

Party A shall pay to Party B the performance bond at 20% of the total payment of the goods, i.e. RMB_____(in capital:___), within 3 days upon the execution of the Contract. Party B may apply the performance bond in the last payment of the goods or directly to offset the possible overdue interest, warehousing and storage fees and the other pertinent fees. Where the performance bond is inadequate to pay the said fees, Party A shall supplement the same in due time. Where the market price is decreased by more than 10% of the price of order, Party A shall pay additional performance bond to Party B at 10% of the total payment of the goods within 3 working days upon its receipt of the written notice from Party B. Where the market price continues to drop, Party A shall continue to pay addition performance bond at the said rate. Where Party A fails to pay the performance bond in due time, Party A shall be deemed to have breached the Contract and Party B has the right to immediately dispose the goods at its own discretion and not refund the performance bond to Party A. Party A shall indemnify Party B for the damage to or the loss of Party B caused by the disposal of the goods by Party B as above mentioned.

(2) Payment of the Goods

Party A shall pay off the payment of the goods, the commission and the relevant miscellaneous fees to Party B within 75 days from the date when Party B effects the payment of the goods to Shanxi Taigang. The title to the goods shall remain with Party B before Party A pays off the said amount.

Method of Payment: As Party B effects the payment to Shanxi Taigang Stainless Steel Co., Ltd. by different methods, Party A may effect the payment to Party B in cash or by bank acceptance bill with a maturity term of less than three months if Party B adopts the bank acceptance bill with a maturity term of six months; Party A shall effect the payment to Party B in cash if Party B adopts the bank acceptance bill with a maturity term of three months; and Party A shall effect the payment to Party B in cash and undertake the interests and the taxes arising from the date when Party B effects the payment to Shanxi Taigang Stainless Steel Co., Ltd. in cash to the date when Party A effects the payment to Party B in cash if Party B effects the payment in cash.

Method of Settlement: one ___  The settlement price between Party B and Party A is: the settlement price between Shanxi Taigang Stainless Steel Co., Ltd. and Party B + (1+1.0%) + the interest and the taxes arising from the payment in cash effected by Party B to Shanxi Taigang Stainless Steel Co., Ltd. + the interest and the taxes arising from overdue payment. The interest rate involved in the settlement, if any, shall be subject to the then-current interest rate (which is 7.2% currently).

8. Pickup

Party A may pick up the goods by itself after it pays all the amounts to Party B. Party A shall take the initiative to contact Party B, to enquire about the price and to confirm the arrival of the goods, the delivery of the goods and the pickup of delivery within the period of delivery and pickup. Where Party A effects the payment and picks up the delivery in installment, Party B will distribute the goods to Party A in the quantity corresponding to the amount paid by Party A.

 

  

  

  

 

9. Method of Weight Measurement, Standards of Inspection and Acceptance, Quality, Quantity and Disputes in Delivery

The weight shall be subject to the weight sheet issued by Shanxi Taigang Stainless Steel Co., Ltd., Party A shall inspect and accepts the goods as per the factory material list based on the State standards. The exact quantity, specifications and other matters of the goods at the time of delivery shall be subject to the contract concluded by and between Party B and Shanxi Taigang Stainless Steel Co., Ltd. as well as the quantity actually delivered by Shanxi Taigang Stainless Steel Co., Ltd.. Party A and Shanxi Taigang Stainless Steel Co., Ltd. shall directly settle and be responsible for the disputes in such matters as the quantity, the weight, the quality and the delivery of the goods and Party B shall render any and all the necessary assistance. Party B shall not refuse to effect the payment of the goods or to pay the various fees to Party B by the excuse of the disputes in such matters as the quantity, the weight, the quality and the delivery of the goods.

10. Reservation of Rights related to the Goods

In case of payment by Party A in installment, Party B has the right to control the goods in the value equivalent to the amount unpaid by Party A, deliver the goods in the corresponding quantity and proportion based on the amount paid by Party A and the proportion thereof and directly settle with Party A the payment of the goods, the overdue interests, the warehousing fees and the other relevant fees and charges.

11. Special Responsibilities and Liabilities

As Party A determines to purchase the goods from Shanxi Taigang Stainless Steel Co., Ltd. solely based on its own contact and negotiations with Shanxi Taigang Stainless Steel Co., Ltd. and its own investigation in the credit status of Shanxi Taigang Stainless Steel Co., Ltd., Party B is informed by Party A of the supply and credit status of Shanxi Taigang Stainless Steel Co., Ltd. and Party A entrusts Party B to conclude the purchase and sale contract with Shanxi Taigang Stainless Steel Co., Ltd. in the name of Party A and for and on behalf of Party A and requires Party B to effect the payment for Party A in advance, Party A is obligated to effect the payment to Party B and to pick up the goods as agreed herein as long as Party B performs its obligations under the purchase and sales contract and effects the advance payment. Party B is not obligated to undertake any and all the risks related to the supply of the goods, including but not limited to the non-delivery, the non-conforming delivery, the non-conforming quality and the late delivery. Party A has no right to claim against Party B for the same. Where Shanxi Taigang Stainless Steel Co., Ltd. breaches the contract, Party A shall claim directly against Shanxi Taigang Stainless Steel Co., Ltd. rather than claiming against Party B. In addition, Party A hereto and Shanxi Taigang Stainless Steel Co., Ltd. shall be jointly and severally liable to indemnify Party B in relation to any and all the claims raised by Party B hereto against Shanxi Taigang Stainless Steel Co., Ltd. for the pertinent matters including but not limited to the delivery, the refund, the liquidated damages and the interests.

  

 

  

12. Liabilities for Breaching the Contract

(1) Where Party A fails to pay the performance bond to Party B within the period agreed herein, Party B has the right to rescind the Contract and Party A shall pay the liquidated damages to Party B at 10% of the total amount of the Contract and Party B has the right to raise the further claims if the liquidated damages are insufficient to remedy the damage or the loss so suffered by Party B.

(2) Where Party A delays in paying any and all the amount payable to Party B such as the payment of the goods, the commission and the freight and miscellaneous charges, Party A shall obtain the written consent from Party B and shall pay the liquidated damages to Party B at 5%0 of the total outstanding amount for each day of delay as well as any and all the warehousing charges and other fees arising during the period of delay in pickup.

(3) Where Party A delays in payment without the written consent from Party B or still fails to pay any and all the amount payable to Party B such as the payment of the goods, the commission and the freight and miscellaneous charges during the grace period agreed by Party B, Party A shall be deemed to have materially breached the Contract and Party B has the right to rescind the Contract, dispose the goods at its own discretion and confiscate the performance bond. In such cases, Party A shall not require Party B to refund the performance bond and shall indemnify Party B for the damage or loss suffered by Party B due to its disposal of the goods as above mentioned (including direct loss and indirect loss) as well as the loss of interest caused by the overdue payment.

13. Third Party Liabilities

Where the parties are unable to perform the Contract or delay in performing the Contract in whole or in part or causes damage to or loss of the goods, the non-conformity in quality at the time of delivery, the quality defects of the goods or the other similar issues by the reasons attributable to the third party or the liabilities of the third party, Party B shall undertake no liabilities for the same and may assist Party A at the cost of Party A in requiring the third party to undertake the relevant liabilities

14. Disputes Settlement

  

 

  

Any and all the disputes arising out of or in connection with the performance of the Contract shall be settled by the parties through friendly negotiations. Where no agreement may be reached through such negotiations, the parties shall submit the disputes to the local court in Beijing where the Contract is executed. Any and all the reasonable fees caused by the winning party in order to settle the disputes including but not limited to attorney fees as well as the reasonable fees arising out of the efforts to minimize the damage or loss shall be borne by the failing party.

15. Transfer of the Obligations hereunder

Neither party may transfer any of its obligations hereunder to others without the prior written consent from the other party.

16. Counterparts and Effectiveness

The Contract shall be made in two counterparts. Each party shall hold one counterpart. The Contract shall take effect after the respective legal representatives or authorized representatives of the parties duly sign and stamp the Contract. No amendment to or rescission of the Contract shall take effect unless agreed by the parties in writing through negotiations. The original provisions of the Contract shall remain in effect before the parties agree on the amendment or rescission hereof. The facsimile copies of the documents generated by the parties during the execution or the performance of the Contract shall be valid; provided, however, that the party shall submit the original copies to the other party in due time.

 

	
Party A: Shanxi Guolian Pipe Industry Group Co., Ltd.

	
Party B: Sinosteel Iron & Steel Co., Ltd.

	
Authorized Representative

	
Authorized Representative

	
September 28, 2009

	
September 28, 2009

 

  

 

  

Purchase Contract of Shanxi Jiugang Jialijin Trade Co., Ltd. in May, 2008

May 26, 2008, Taiyuan                       Contract No.: 08005JPB001

	
Name

	
Brand

	
Specifications

(mm)

	
Quantity

(t)

	
Price (RMB YUAN/t)

	
Quality and Technical Standards

	
Pipeline Steel

	
X52

	
7.6*1380

	
3350

	
____

	
GB/T14164-2005, PSL2

	
Seller: Shanxi Jiugang Jialijin Trade Co., Ltd.

	  	
Purchaser (Stamp)

	
Shanxi Guolian Pipe Industry Group Co. Ltd.

	
Region No. and Tel. No.

	  	
Fax

	
(0351) 03516358276

	
Contract Personnel

	
Receiver

	
Shanxi 525 Warehousing and Transportation Co., Ltd.

	
Opening Bank

	
Bank of Communication

	
Account No.

	
41

	
Settled by

	  	  
	
Tax Registration Certificate No.

	
142622751508155

	
Authorized Representative

 

 

	  	
Settlement Bank

	
Agricultural Bank of china, Jinzhong Branch, Daobei Sub-Branch

	  
	
Station of Shipment

	  	  	  	
Account No.

	
380001040009399

	
Region No. and Tel. No.

	
38

	
Zip Code

	
03

	
Address

	
Taiyuan, Shanxi Province

	
Telex and Registered Mail

	  	
Tax ID

	
142401748578718

	
Zip Code

	  
	    1. Standards of Measurement: by grams	

Address

	 Building 1 Yuci Industrial Park

 

  

  

  

 

	
2. Disagreement Settlement: The purchaser shall raise the claim in writing with the Supplier regarding the quantity with the handover certificate, the reviewed weight list and the other relevant supporting documents issued by the transportation departments within 10 days upon the arrival of the goods and shall handle the pertinent matters as stipulated by the Supplier. The purchaser shall raise the claim in writing with the Supplier regarding the quality within 30 days upon the arrival of the goods. If the Purchaser fails to raise the claims regarding the quantity or the quality within the specified period, the quality or the quantity shall be deemed to be conforming to the Contract.

	
Station of Destination

	
Taiyuan Bureau Yuci Station

Special Line for Shanxi 525 Warehousing and Transportation Co., Ltd

	
Purchaser

	  
	
3. Where the Purchaser intends to amend, supplement, rescind or terminate the Contact, the Purchaser shall notify the Supplier in writing 10 days before the shipment.

	
Remarks

	
1. The price hereunder shall be paid equally by two methods, i.e. 50% by acceptance and 50% in cash. The payment of the goods in excessive of the said proportion shall be increased or decreased based on the then-current interest rate promulgated by the bank. The price includes the tax. The price is CIF price and all the amounts shall be settled in one invoice.

2. The shipment shall be completed before June 20.

	
4. Method of Transportation: rail transportation

	
5. The Purchaser shall effect the payment to the Supplier within three days upon the execution of the Contract; or otherwise the Supplier has the right to terminate the Contract or postpone the performance of the Contract. The Purchaser shall also indemnify the Supplier for the damage or loss so suffered by it. Where the Supplier is affected by significant accidents or transportation, the Supplier may postpone the performance of the Contract.

	
6. The goods shall be sold based on the principle of “payment first and goods later”. Where the payment effected by the Purchase fails to be fully applied during the term of the Contract or the funds of the Purchaser is hold up for a long time by other reasons, Party A shall undertake no liabilities.

 

  

  

  

 

	
7. Any and all the disputes arising during the performance of the Contract shall be settled by the parties through negotiations.

	
 

	
 

 

	

8. The Contract shall take effect after signed and stamped by the parties. The valid term of the Contract is from May 26, 2008 to June 20, 2008.

 

  

 

  

Purchase and Sale Contract

Contract No.: LY-0800819005

Place of Execution: Handan

Date of Execution: August 19, 2008

 Party A (Purchaser): Shanxi Guolian Pipe Industry Group Co., Ltd.

 Party B (Seller): Handan Lianying Materials Co., Ltd.

 I. Name, Materials, Model, Manufacturer, Quantity, Unit Price and Amount

	
Name

	
Material

	
Specifications and Model

	
Manufacturer

	
Unit

	
Quantity

	
Unit Price

	
Total Amount

	
Remarks

	
Rolled Plate

	
Q235B

	
14*1500

	
Tiantie

	
Ton

	
1300

	
____

	
_____

	
48 pieces

	
In total

	  	  	  	
Ton

	
1300

	
____

	
_____

	
48 pieces

	
Total Amount (in capital): ____________(subject to the actual settlement amount)

	
Remarks: The price is the tax-inclusive unit price in cash. Party B shall issue the value-added tax invoice. The advance payment is RMB ____. (in case of acceptance, a discount of RMB 35/ton will be granted in the first month; a discount of RMB 70/ton will be granted in the second month; a discount of RMB 100/ton will be granted in the third month, and later the price will be increased by RMB 30/ton each month.

	
II. Date of Delivery: set rolling and delivery at the end of the month. A deviation of +/- 2% is allowed in the quantity actually delivered.

III. Standards of Quality: subject to the State standards. The target thickness is 13.8mm to 13.9mm. Party A shall raise the disagreement within thirty days upon its receipt of the goods and Party B shall assist Party A in raising the claims regarding the quality with the manufacturer; or otherwise the goods shall be deemed as conforming upon inspection. (See the attached materials list.)

IV. Place and Method of Delivery (Pickup): Tiantie Warehouse. Party B is responsible for the transportation. The freight is RMB 85/ton (not including the transportation invoice).

V. Standards of Reasonable Loss and Method of Calculation: 3%0 shall be deemed as normal loss as per the international standards.

VI. The ownership to the subject matter, of which the payment has not been effected, shall remain with Party B before Party A effects all the payment to Party B.

 

  

  

  

 

	
VII. Method of Transportation, Arrival at the Station (Port) and the Fees: Party A shall pay the deposit of RMB ____ which shall be applied in the last payment. The resources and the price shall be fixed upon the execution of the Contract.

VIII. Method, Time and Place of Settlement: shipment upon payment.

IX. Conditions of Rescission: The Contract shall be automatically rescinded upon the completion of all the matters stipulated herein.

X. Liabilities for Breaching the Contract: In accordance with the Contract Law, Party A and Party B shall perform their respective obligations in strict accordance with the Contract and the breaching party shall undertake the liabilities for breaching the Contract. Where Party B is unable to deliver all the goods within the term of delivery stipulated herein, Party B shall return the payment and pay the liquidated damages to Party A within two days except for the events of force majeure. The disputes shall be settled by Party A and Party B through friendly negotiations. Where no agreement may be reached through such friendly negotiations, the parties shall legally raise the litigation with the People’s court.

XI. The Contract shall take effect on and from the date when the parties sign and stamp the Contract. The facsimile copy of the Contract shall have the same legal force and effect as the original copy. The Contract shall become invalid if altered without consent. The Contract shall be made in two counterparts. Each party shall hold one counterpart.

	
Seller

	
Purchaser

	  
	
Name: Handan Lianying Materials Co., Ltd.

Address:

Legal Representative:

Authorized Representative:

Mobile: 13832092075

Fax: 0310-5521621

Opening Bank: Agricultural Bank, Hanshan Sub-Branch

Account No.: 113001040015986

Account No. for Large Amount: 103127011309

Zip Code: 056003

	
Name: Shanxi Guolian Pipe Industry Group Co., Ltd.

Address: No.

Legal Representative:

Authorized Representative:

Mobile:

Fax

Opening Bank

Account No.

Zip Code

	
Comments of Certification (Public Notary)

 

 

Certification Organ (Public Notary) (Stamp)

Handled by:

 

August 19, 2008

 Account No. in Agricultural Bank: 62284 6175 00020 16612   Account Holder: Xu Lijuan

 

  

 

  

 

Purchase and Sale Contract of Tai’an Luzhong Taichang Trade Co., Ltd.

TCNO. 080927010

Place of Execution: Tai’an

Date of Execution: September 17, 2008

 Seller: Tai’an Luzhong Taichang Trade Co., Ltd.

 Purchaser: Shanxi Guolian Pipe Industry Group Co., Ltd.

 I. Details of the Steel Materials Purchased by the Purchaser

	
Name

	
Specifications and Model

	
Material

	
Place of Original

	
Quantity (Ton)

	
Unit Price (RMB YUAN/ton)

	
Total Amount

	
Hot Rolled Plate

	
12.1*1440

	
Q235B

	
Jigang

	
2060

	  	  
	
Hot Rolled Plate

	
9.05*1440

	
Q235B

	
Jigang

	
840

	  	  
	
Hot Rolled Plate

	
7.7*1440

	
Q235B

	
Jigang

	
40

	  	  
	
Hot Rolled Plate

	
7.5 *1440

	
Q235B

	
Jigang

	
60

	  	  
	
Hot Rolled Plate

	
6.0 *1440

	
Q235B

	
Jigang

	
100

	  	  
	
Hot Rolled Plate

	
8.7 *1440

	
Q345B

	
Jigang

	
100

	  	  
	
Hot Rolled Plate

	
5.8 *1440

	
Q345B

	
Jigang

	
40

	
____

	
_____

	
Freight

	  	  	  	
3240

	  	  
	
In total

	  	  	  	
3240

	  	  
	
In total

	
(in capital) ____(including tax and in cash)

 

  

  

  

 

	
II. Requirements on Quality: subject to the international standards. In case of any disagreement in the quality, the Purchaser shall raise the disagreement in writing within seven days. The Supplier shall render all the necessary assistance.

III. Method and Period of Payment: The Purchaser shall pay RMB ____ in advance before September 28, 2008 as the deposit. The Supplier will apply with the manufacturer to arrange the production upon the arrival of the deposit. The Purchaser shall effect all the payment before October 05, 2008, The Supplier will arrange the shipment after all the payment arrives. In case of any default by either party, the breaching party shall undertake any and all the fees so caused.

IV. Price: The price is fixed.

V. Address and Date of Delivery: Jigang. The Supplier shall deliver the goods on and before October 10, 2008 (provided that the delivery may be postponed for the special reasons of the manufacturer or the events of force majeure.)

VI. Method of Transportation: The Supplier shall transport the goods. The freight and the payment of the goods shall be settled separated in two invoices. (The freight shall be RMB 150/ton.)

VII. Standard of Inspection and Acceptance: subject to the weight list of Jigang. The deviation in the weight shall be subject to the international standards (+/- 3%),

VIII. Weight of Delivery: the weight to be delivered shall be the contractual weight plus or minus 10%.

IX. Disputes Settlement: Any economic disputes arising out of the Contract shall be settled by the parties through friendly negotiations. Where no agreement may be reached through such friendly negotiations, either party has the right to the local People’s court of the competent jurisdiction in Tai’an.

X. Other Agreements: The Contract shall take effect after duly signed and stamped by the parties. (The facsimile copy shall be valid.)

XI. Goods shall be delivered with positive deviation.

	
Seller

	
Purchaser

	
Name: Tai’an Luzhong Taichang Trade Co., Ltd.

Address:

Legal Representative:

Authorized Representative:

Tel. No.

Fax: 0538-8100559

Opening Bank:

Account No.:

Zip Code:

	
Name: Shanxi Guolian Pipe Industry Group Co., Ltd.

Address:

Legal Representative:

Authorized Representative:

Tel. No.

Fax

Opening Bank

Account No.

Zip Code

  

 

  

Purchase and Sale Contract

TCNO. 2008-10T-07

Place of Execution: Taiyuan, Shanxi

Date of Execution: October 16, 2008

 Seller: Shanxi Xinbang Trade Co., Ltd.

 Purchaser: Shanxi Guolian Pipe Industry Group Co., Ltd.

 Party A and Party B agree to conclude the Contract as below through friendly negotiations.

 I. Name, Trademark, Type, Model, Manufacturer, Quantity and Amount

 

	
Name

	
Type and Trademark

	
Specifications and Model

	
Manufacturer

	
Unit

	
Quantity

	
Tax-inclusive Unit Price of Taigang

	
Total Amount

	
Remarks

	
Hot Rolled Plate

	
Q345B

	
8.9 * 1600

	
Er Lian Ya

	
ton

	
150

	  	  	
No alteration without consent.

	
Hot Rolled Plate

	
Q345B

	
13.7 * 1500

	
Er Lian Ya

	
ton

	
240

	  	  
	
Hot Rolled Plate

	
Q235B

	
12.3 * 1600

	
Er Lian Ya

	
ton

	
150

	  	  
	  	
In total

	  	  	
540

	  	  	  	  
	In total	(in capital) ____	 	 

	
II. Requirements on Quality and Technology: subject to the standards of Taigang.

(in case of the goods of Q345B 13.7*1500, the order may be made as per the provision for Q345B in GB/T3274. S≤0.01%; Rel≥ 360MPa, Rm: 510-640Mpa, 00C Impact Force ≥341

	  	  

 

  

  

  

 

	
III. Method and Period of Payment: The Purchaser shall fully effect the payment before October 31. In case of bank acceptance bill, the relevant policies of Taigang on discounting shall apply.

IV. The goods shall be shipped in and before October, 2008 except for force majeure. The freight shall be borne by the Purchaser.

V. The Purchaser shall pick up the goods by itself.

VI. The quantity of the goods shall be subject to the quality warranty issued by Taigang.

VII. Disputes Settlement. The claims regarding quantity shall be raised within ten days and the claims regarding quality shall be raised within twenty days in writing upon the arrival of the goods. The Supplier shall assist the Purchaser in requiring the manufacturer to settle the problems. The Purchaser shall not refuse to pay the payment of the goods and the freight by the excuse of the claims regarding quantity or quality.

VIII. No amendment to or rescission of the Contract shall be valid unless and until agreed by the parties in writing through negotiations.

IX. Liabilities for Breaching the Contract; subject to the Contract Law.

X. Disputes Settlement: Any economic disputes arising out of the Contract shall be settled by the parties through friendly negotiations. Where no agreement may be reached through such friendly negotiations, either party has the right to the local People’s court in Jiancaoping District in Taiyuan.

XI. Other Agreements: The facsimile copy shall be valid.

XII. The Contract shall be made in two counterparts. Each party shall hold one counterpart.

	  	  

  

 

  

	
Seller

	
Purchaser

	 
	
Name: Shanxi Xinbang Trade Co., Ltd.

Address: #38 Fuxi Road, Taiyuan

Legal Representative:

Authorized Representative:

Opening Bank:

Account No.:

Zip Code:

Tel. No.: 0351-3555255

	
Name: Shanxi Guolian Pipe Industry Group Co., Ltd.

Address:

Legal Representative:

Authorized Representative:

Opening Bank

Account No.

 

	 

 The Contract shall remain in valid until November 1, 2008.Steel and Iron Products SaleContract of Shanxi Taigang Stainless Steel Co., Ltd.

	
Type of the Order: Y002

	
Order No.: 160408

	
Date of Execution

Jul.28, 2009

	
Place of Execution:

Tai Yuan

	
Date of Delivery:, 2009

	
Factory of Delivery: Hot Strip Rolling Factory(2250)

	
Seller

	
Name: Shanxi Taigang Stainless Steel Co., Ltd.

Address: #113 North Jiefang Road, Taiyuan

Zip Code: 030003 Fax: 0391-3130793 Tel.

Opening Bank: Industrial and Commercial Bank of China, Taiyuan Branch

Bank Account: 0502125109022

Tax I.D.: 140116701011888

Legal Representative or Authorized Representative of the Seller

Stamp

	
Purchaser

	
Name: Shanxi Guolian Pipe Industry Group Co., Ltd.

Address:

Zip Code: 030600

Fax:

Tel.: 0354-3966238

Opening Bank:

Bank Account:

Tax I.D.

Legal Representative or Authorized Representative of the Purchaser

Stamp

	
Other Contents

	
1. where the overage and shortage is +/- 3% of the total weight, ...     ; where the increase or the decrease in the actual weight per piece exceeds the scope of overage and shortage, the quantity actually delivered shall prevail. The scales difference ≤3%.

2. The special requirements in technical conditions, if any, shall be specified in the Contract; and where the Seller handle the rail transportation for and on behalf of the Purchaser, the freight and miscellaneous charges shall be borne by the Purchaser.

 

  

  

  

 

	  	
3. In case of any inconsistence between the delivery and the Contract, the Purchaser shall launch the claim with the Seller within 10 days upon its receipt of the goods and shall keep the goods under the conditions existing at the time of delivery.

4. In case of any dispute, the parties shall raise the litigation with the local People’s court of the competent jurisdiction in the place where the Seller is located.

5. The Contract shall not be amended or rescinded unless agreed by the parties in writing through negotiations.

	
Remarks:

	
Terms of Payment: payment before the 10th day of the month; subject to the planned order.

	
Line No.

	
Name

	
Steel No.

	
Specifications

	
Ordered Quantity (Ton)

	
Standards

	
Tax-inclusive Price (RMB YUAN/Ton)

	
0010

	
Pipeline Steel Strip

	
X52

	
10,300 mm X1, 350,000 ,,

	
2100.000

	
Q/TX3406-2609

	
Market Price prevailing in Taiyuan at the time of delivery

	
Receiver

	
Shanxi Guolian Pipe Industry Group Co., Ltd.

	  	
Special Line

	  	
Station of Destination

	
Self-pickup

	
Notes: packing code: ordinary; maximum weight: 30.0 TON, minimum weight: 20.0 TON; ex factory upper deviation in thickness: 0.000 mm; ex factory lower deviation in thickness: -0.500 mm; special requirements of the client on thickness: none

	
0020

	
Pipeline Steel Strip

	
X52

	
0.300 mm X1, 500.000 mm

	
2700.000

	
Q/TX3405-2008

	
Market Price prevailing in Taiyuan at the time of delivery

 

  

  

  

 

	  	
Receiver

	
Shanxi Guolian Pipe Industry Group Co., Ltd.

	  	
Special Line

	  	
Station of Destination

	
Self-pickup

	
Notes: (/km)<=0.82, packing code: ordinary; maximum weight: 30.0 TON, minimum weight: 20.0 TON; ex factory upper deviation in thickness: 0.000 mm; ex factory lower deviation in thickness: -0.500 mm; special requirements of the client on thickness: yes

	  	  	  	  	  	  	  
	
Receiver

	  	  	
Special Line

	  	
Station of Destination

	  
	  
	
In Total

	  	
Total weight in order (ton)

	
Amount (RMB YUAN)

	  

Notes: This Contract is a standard contract. The Purchaser is advised to carefully review the contract.

 

  

  

  

 

2009 Purchase and Sale Agreement on Hot Rolled Steel Strip (850mm Unit)

Party A: Delong Steel Co., Ltd.

Party B: Shanxi Guolian Pipe Industry Group Co., Ltd.

In consideration of the purchase and sales of hot rolled steel strips in 2009, Party A and Party B agree to conclude the Agreement as below through adequate negotiations and based on the principles of “mutual benefits, risks sharing, long-term cooperation and interests sharing”.

	
I.

	
Allocation of Resources

	
1.

	
Party B purchases the hot rolled steel strips in a total quantity of 6,000 tons from Party A from January 2009 to December 2009. Party B shall order the goods in equal quantity in each month. The agreed quantity per month is 5,000 tons. The parties allow a deviation of +/- 10% in the annual quantity and the quantity delivered in each month.

	
2.

	
Due to the equipment of Party A, the specifications of the hot rolled steel strips supplied by Party A shall be subject to the specifications which Party A may produce currently. The other specifications shall be subject to the separate agreement by the parties.

	
II.

	
Security Deposit and Price

	
1.

	
Party B shall pay the security deposit as per the agreed total quantity (subject to the attached details of security deposit). Upon the achievement of the agreement total quantity, Party A will refund the security deposit in the form of goods.

	
2.

	
Party B shall effect about 70% monthly payment before the 25th day of each month to confirm the production plan of next month. The parties shall determine such details as specifications, quantity and date of delivery through negotiations. Party B shall pay the remaining amount before the 5th day of next month.

	
3.

	
The price shall be subject to the sale price of Party A prevailing on the date of payment arrival. Upon the arrival of the payment, the price shall not be increased if the sale price of Party A is raised but shall be decreased if the sale price of Party A is decreased. In case of any significant fluctuation in the market, the parties shall settle the problems so arising based on the principles of  “mutual benefits and risks sharing”. The funds in excess of the amount for the agreed monthly quantity may be carried forward to the next month; provided that the price shall be subject to the then-current sale price of Party A.

 

  

  

  

 

	
4.

	
The preferential policies granted by Party A to the contractual clients shall apply to the hot rolled steel strips purchased by Party B within the agreed quantity based on the polices of Party A on hot rolled steel strips.

	
III.

	
Responsibilities and Obligations

	
1.

	
In case of any quality problem arising during the time when Party B uses the products of Party A, Party A shall arrive at the site of Party B in the possibly shortest time to confirm and settle the problems through negotiations.

	
2.

	
Party A is responsible and obligated to serve Party B for the whole process. Party A shall dispatch the business personnel on a regular basis to Party B to carry out the relevant marketing services.

	
3.

	
Party A and Party B shall frequently exchange the relevant information and communicate with each other based on the principles of “sharing market and information” so that Party A may better serve Party B.

	
IV.

	
Liabilities for Breaching the Agreement

	
  

	
1.

	
Party A agrees that one-month agreed quality may be waived for the benefits of Party B during the term of the Agreement taking full account of the overhaul of the equipment and the other pertinent factors of Party B. Where Party B fails to achieve the agreed quantity for two months (including the month when the agreed quantity may be waived), Party A will deduct 50% security deposit. Where Party B fails to achieve the agreed quantity for three months (including the month when the agreed quantity may be waived), Party A will deduct 100% security deposit, cancel the qualification of Party B under the Agreement and charge the fees originally exempted under the preferential policies.

	
  

	
2.

	
One-month agreed quantity may also be waived for the benefits of Party A. Where Party A fails to deliver the agreed quantity for two months (including the month when the agreed quantity may be waived), Party A shall indemnify Party B at 50% of the security deposit. Where Party A fails to deliver the agreed quantity for three months (including the month when the agreed quantity may be waived), Party A shall indemnify Party B at 100% of the security deposit.

	
V.

	
Miscellaneous

	
  

	
1.

	
The Agreement shall be performed in Xingtai, Hebei Province.

 

  

  

  

 

	
  

	
2.

	
Any and all the disputes arising out of or in connection with the Agreement shall be settled by Party A and Party B through negotiations. Where no agreement may be reached by the parties through such negotiations, the parties shall submit the disputes to the local arbitration institution in the place where Party A in located for arbitration.

	
  

	
3.

	
Matters not mentioned herein shall be settled by Party A and Party B through negotiations.

	
  

	
4.

	
The Agreement shall be made in two counterparts. Party A and Party B shall hold one counterpart respectively. The Agreement shall take effect after duly signed and stamped by Party A and Party B and shall remain in effect from January 1, 2009 to December 31, 2009. Party A and Party B shall separately negotiate with each other regarding the renewal of the Agreement upon the expiry of the valid term hereof.

	
For and on behalf of

	
For and on behalf of

	
Party A: Delong Steel Co., Ltd.

	
Party B: Shanxi Guolian Pipe Industry Group Co., Ltd.

	
Signed by:

	
Signed by

	  	  
	
January 1, 2009

	
January 1, 2009

 

  

  

  

 

2010 Warehousing, Purchase and Sale Agreement on Medium-Width Steel Strips

Party A: Lingyuan Iron & Steel Co., Ltd.

Party B: Shanxi Guolian Spiral Tubulation Co., Ltd.

In consideration of the warehousing, purchase and sales of medium-width steel strips in 2010, Party A and Party B agree to conclude the Agreement as below through adequate negotiations and based on the principles of “mutual benefits, risks sharing, long-term cooperation and interests sharing”.

1. Quantity to be warehoused

1.1 Party B purchases the medium-width steel strips in a total quantity of 36,000 - 60,000 tons from Party A for the whole year. Party B shall order 3,000 - 5,000 tons in each month.

1.2 Party A guarantees that the stock to be warehoused by it for and on behalf of Party B will not be less than 3,000 tons.

1.3 The specifications of the goods available for ordering shall be subject to the common specifications of the products of Party A. The special specifications shall be subject to the separate agreement by the parties.

1.4 Party A shall timely send the medium-width steel strips to the designated warehouses based on the plan of resources submitted by Party B.

2. Performance and Price

2.1 For the purpose of guaranteeing the performance of the warehousing agreement, Party B shall pay the performance bond (in cash or by acceptance) in an amount of RMB 500/ton based on the total monthly quantity (or RMB 2,500,000 in total). The performance bond is interest free and Party A shall refund the same in the form of goods upon the achievement of the total annual quantity.

2.2 Party B shall submit the purchase plan of medium-width steel strips for the next month in writing and specify the place of warehousing (Yuci, Taiyuan or Xi’an) before the 25th day of each month.

2.3 Party A entrusts Shanxi 525 Warehousing and Transportation Co., Ltd., Taiyuan East (address pending) and Shaanxi Assets Warehousing and Transportation Corporation to respectively store, keep, load and unload and transport the medium-width steel strips of Lingyuan Iron & Steel Co., Ltd.. Party A shall deliver the medium-width steel strips to the designated warehouses in due time as required by Party B.

 

  

  

  

 

2.4 Upon the achievement of the quantity to be picked up in the month as agreed herein, the preferential sales policies of Lingyuan Iron & Steel Co., Ltd. shall apply to the goods so picked up. (i.e. the price shall be decreased by at least RMB 20/ton (including tax) based on the sale price of Party A and the preferential amount shall be reduced at the time of settlement in the month where Party A notifies Party B of its adjustment to the preferential extent based on the market conditions before the settlement of the month.)

2.5 Party A shall determine the actual settlement price based on the market conditions in the month and the steel strips meetings of East China Region and shall promulgate the actual settlement price, in principle, before the 28th day of each month.

2.6 The funds for the quantity in excessive of the agreed quantity of supply of the month may be carried forward to the next month; provided, however, that the price shall be subject to the price policies of Lingyuan Iron & Steel Co., Ltd. in the next month rather than being locked.

2.7 The transportation subsidy of RMB 30/ton shall apply and shall be paid by bank acceptance bill without discount.

2.8 Party B shall effect the payment to the local business personnel of Lingyuan Iron & Steel Co., Ltd. and shall pick up the goods based on the valid delivery voucher issued by Lingyuan Iron & Steel Co., Ltd.. The payment shall be settled directly with Lingyuan Iron & Steel Co., Ltd.. Party B shall pick up the goods in an equal quantity in each month. The warehousing fee and the transportation fee shall be borne by Party B. Party A shall collect the warehousing fee and settle the same with the warehouse owners.

2.9 Where Party B requires for increased quantity, Party B shall buy out the quantity of warehousing before Party A may send the goods.

2.10 Party B shall buy out the one-month quantity of warehousing in due time if the quantity is within the agreed quantity. Party B shall be deemed to have breached the Agreement if it fails to buy out the stocks in the warehouses, which are within the agreed quantity, upon the expiry of the term of warehousing.

3. Responsibilities and Obligations

Party A and Party B shall confirm the plan of next month on the 25th day of each month (the planned quantity is 3,000 – 5,000 tons) and Party B shall guarantee the achievement of the monthly quantity of purchase upon its payment of the security deposit; provided however, that the following rules shall prevail upon the full consideration of the overhaul of the equipment and the other relevant factors of Party B:

 

  

  

  

 

3.1 Where Party B fails to achieve the agreed quantity in the first month, Party B will be relieved from its liabilities.

3.2 Where Party B fails to achieve the agreed quantity in the second month, a certain amount shall be deducted from the security deposit at RMB 10/ton based on the quantity not achieved in the month. i.e. amount to be deducted from the security quantity X RMB 10/ton.

3.3 Where Party B fails to achieve the agreed quantity in the third month, Party A will implement the policies for the non-contractual clients when settling the payments for the goods sent in the month and shall deduct the security deposit at RMB20/ton based on the agreed quantity of the month.

3.4 Where Party B fails to achieve the agreed quantity in the fourth month, Party A will implement the policies for the non-contractual clients when settling the payments for the goods sent in the month, deduct all the security deposit for the agreed quantity of the whole year, terminate the Agreement and require Party B to return all the amounts which have been exempted under the relevant preferential policies.

3.5 Where Party B fails to achieve the agreed quantity by the reasons attributable to Party A, Party B will be relieved from its liabilities.

3.6 In case of the goods of special specifications, which may be delayed in arrear in another month, the parties shall be deemed to have duly performed the Contract.

4. Miscellaneous

	
4.1

	
The Agreement shall be performed in Lingyuan, Liaoning Province.

4.2 Matters not mentioned herein shall be settled by Party A and Party B through negotiations. Where no agreement may be reached by the parties through such negotiations, the parties shall submit the matters to the Chaoyang arbitration commission in located for arbitration.

	
4.2

	
The Agreement shall be made in two counterparts. Party A and Party B shall hold one counterpart respectively. The Agreement shall take effect on and from April 1, 2010 after duly signed and stamped by Party A and Party B and the security deposit duly arrives at the account and shall end on March 31, 2011. Where either party intends to change the Agreement, it shall notify the other party one month in advance. The Agreement may not be changed unless and until otherwise agreed by the parties through negotiations.

 

  

  

  

 

	
For and on behalf of

	
For and on behalf of

	
Party A: Lingyuan Iron & Steel Co., Ltd.

	
Party B: Shanxi Guolian Spiral Tubulation Co., Ltd.

	
Signed by:

	
Signed by:

	
March 31, 2010

	
March 31, 2010

 

  

  

  

 

Purchase and Sale Contract

Contract No.: BGGL2009004

Place of Execution: Dalian

Date of Execution: September 17, 2009

Seller: Dalian Binggong Trade Co., Ltd.

Purchaser: Shanxi Guolian Pipe Industry Group Co., Ltd.

I. Name, Trademark, Model, Manufacturer, Quantity, Amount, Date of Supply and Quantity of Supply

	
Name

	
Trademark

	
Specifications and Model

	
Manufacturer

	
Unit

	
Quantity (ton)

	
Unit Price (RMB YUAN)

	
Total Amount (RMB YUAN)

	
Date and Quantity of Delivery and Pickup

	
Hot Rolled Medium-Width Strip

	
Q235B

	
(5.5-11.6) * (520-750)

	
Lingang

	
Ton

	
5827.105

	

___________

Tax-inclusive ex warehouse price

	
_____

	
Subject to the Agreement (No.: BGGL09001)

	
Total Amount (in capital): ____________(subject to the actual settlement amount)

	
II. Quality Standards: with reference to GB3274-88/GB700-88/GB709-88

	
III, Place of Delivery: to be transported by rail to the station of Yuci, Shanxi Province and the warehouse owned by Shanxi 525 Warehousing and Transportation Co., Ltd..

	
IV. Method of Transportation and Fees: Rail Transportation

	
V. Reasonable Loss and Method of Measurement: subject to the weight list of Lingang with the reasonable deviation of 0.3% in weight.

	
VI. Packing Standards: subject to the ex factory packing provided by Lingang.

	
VII. Standards and Methods of Inspection and Acceptance: with reference to Article 2 of the Contract.

 

  

  

  

 

	
VIII. Method and Period of Payment: The Purchaser shall pay the performance bond at 30% of the total amount in advance and effect all the payment of the goods before March 15, 2010 subject to the provisions on the practice and the period stipulated in the agreement between the parties (No.: BGGL09001).

	
IX. Liabilities for Breaching the Contract: subject to the agreement between the parties (No.: BGGL09001).

	
X. Execution and Performance of the Contract: The Contract shall become legally binding and the parties shall strictly perform the Contract on and from the date when the Contract is duly executed. The Contract shall be made in four counterparts. Each party shall hold two counterparts.

	
XI. Disputes Settlement: Any and all the disputes arising out of the performance of the Contract shall be settled by the parties through friendly negotiations. Where no agreement may be reached through such negotiations, the parties may launch litigation with the local People’s court in the place where the Seller is located.

	
XII. The Contract shall take effect after the parties duly sign and stamp the Contract.

	
Seller

	
Purchaser

	
Name (Stamp): Dalian Binggong Trade Co., Ltd.

Address: #158 Youhao Road, Zhongshan District, Dalian

Legal Representative:

Authorized Representative: Wang Zhe

Tel.: 0411-82520161

Telex and Registered Mail:

Opening Bank: Industrial and Commercial Bank, Dalian Zhongshan Square Sub-Branch

Account No.: 3400200129006435850

Zip Code: 116001

	
Name (Stamp): Shanxi Guolian Pipe Industry Group Co., Ltd.

Address: No. 1 Road, Yuci Industrial Park, Jinzhong

Legal Representative: Liu Xudong

Authorized Representative: Li Dehong

Tel.: 0354-3966170

Telex and Registered Mail:

Opening Bank: Agricultural Bank, Jinzhong Branch, Daobei Sub-branch

Account No.: 3800001040009399

Zip Code: 030600

In 4 counterparts                                                       Valid Term: September 17, 2009 to March 16, 2010

 

  

  

  

 

Steel and Iron Products Sale Contract of Qian’an Steel Co., Ltd.

Order No.: 231792  Valid Term of the Order: 2009-06-17 – 2009-07-05

The Contract is the sales contract between the Seller and the Purchaser regarding the sales of the steel products by the Seller to the Purchaser. The parties agree as below based on the principles of friendly and equal negotiations.

	
  

	
I.

	
Subject Matter, Quantity, Price, Technical Standards, Conditions of Transportation and the other relevant matters are specified in the attachment.

	
  

	
II.

	
The price of the subject matter is the listing price of the Seller less the discount of the batch corresponding to the quantity so ordered. The actual settlement price is subject to the policies promulgated by the Seller on the sales price in the month.

	
  

	
III.

	
Place of Performance: the place where the Seller is located. The place of delivery (pickup) is the place where the factory of the Seller is located.

	
  

	
IV.

	
Inspection and Acceptance upon Delivery: The Purchaser (or the person designated by it to pick up the goods) shall inspect the quantity based on the delivery list provided by the Seller upon its receipt of the steel products and the other products delivered by the Seller. In case of any difference between the quantity determined upon the inspection and the quantity so delivered exceeding 0.3%, the Purchaser shall keep the goods under the original conditions and raise the objection with the Seller within ten days. The parties shall settle such objections through negotiations.

	
  

	
V.

	
Amendment: The parties may not amend the Contract unless and until the parties so agree through negotiations.

	
  

	
VI.

	
The station of destination specified herein shall not be changed without the consent from the Seller. In case of any difference between the original price and the sales price adopted by the Seller in the region due to the change to the station of destination by the Purchaser without consent, the Seller has the right to settle the payment based on the price prevailing in the region where the actual station of destination is located.

	
  

	
VII.

	
Conditions of Effectiveness: The Contract shall take effect after the parties sign and stamp the Contract with the contract chop.

	
  

	
VIII.

	
Neither party may transfer the Contract without the consent from the other party.

 

  

  

  

 

	
  

	
IX.

	
Matters not mentioned herein shall be settled according to the Contract Law.

	
  

	
X.

	
In case of any dispute between the parties under the Contract, the parties shall launch the litigations with the local People’s court in the place where the Seller is located.

	
  

	
XI.

	
The transaction hereunder is expected to use RMB ______ and require for 4574.000 tons in total.

	
  

	
XII.

	
The receiver (or the person to pick up the goods): Shanxi Guolian Pipe Industry Group Co., Ltd.

	
  

	
XIII.

	
Method of Transportation: rail transportation

 Station of Designation: Yuci

 Special Line: Shanxi 525 Warehousing and Transportation Co., Ltd..

 Expected freight: RMB ___/ton

 Settlement method of Freight: to be collected and paid by the Seller for and on behalf of the Purchaser.

 Seller: Qian’an Steel Co., Ltd.

 Address: Binhe Village, Yang Dian Zi Township, Qian’an, Tangshan

 Zip Code: 064404      Tel., No.: 0315-7703063

 Opening Bank: Huaxia Bank, Shijingshan Sub-branch  Account No.: 801111960

 Legal Representative or Authorized Representative

 Purchaser:Shanxi Guolian Pipe Industry Group Co., Ltd.

 Address: Yuci Industrial Park, Jinzhong

 Zip Code: 030600 Tel. No.: 0654-3966200  Fax: 0354-3967668

 Tax ID: CN1412401748578718

 Opening Bank: Agricultural Bank, Jinzhong Branch, Daobei Sub-branch Account No.: 380001040009399

 Legal Representative or Authorized Representative

 Remarks:

 Date of Execution: June 17, 2009      Place of Execution: Shijingshan Beijing

 

  

  

  

 

Order No.: 231792        Unit of Specifications: mm           Unit of Quantity: ton Unit of Price: RMB YUAN/ton

	
Item

	
Brand Name

	
Brand

	
Specifications

	
Quantity

	
Tax-exclusive price

	
Standards

	
10

	
Hot rolled steel strip

	
L360NB

	
L*1250*7.10

	
1034.000

	  	
GB/T 14164-2005

	
Notes: 23.00 t 21.00 t 0.00 mm -0.30 mm

	
Item

	
Brand Name

	
Brand

	
Specifications

	
Quantity

	
Tax-exclusive price

	
Standards

	
20

	
Hot rolled steel strip

	
L360NB

	
L*1680*7.10

	
870.000

	  	
GB/T 14164-2005

	
Notes: 30.00 t 28.00 t 0.00 mm -0.30 mm

	
Item

	
Brand Name

	
Brand

	
Specifications

	
Quantity

	
Tax-exclusive price

	
Standards

	
 

30

	
Hot rolled steel strip

	
L360NB

	
L*1680*9.90

	
1050.000

	  	
GB/T 14164-2005

	
Notes: 30.00 t 28.00 t 0.00 mm -0.30 mm

	
Item

	
Brand Name

	
Brand

	
Specifications

	
Quantity

	
Tax-exclusive price

	
Standards

	
40

	
Hot rolled steel strip

	
L360NB (X52)

	
L*1500*9.00

	
520.000

	  	
GB/T 14164-2005

	
Notes: 30.00 t 28.00 t 0.00 mm -0.30 mm

	
Item

	
Brand Name

	
Brand

	
Specifications

	
Quantity

	
Tax-exclusive price

	
Standards

	
50

	
Hot rolled steel strip

	
L415

	
L*1250*11.90

	
1100.000

	  	
GB/T 14164-2005

	
Notes: 23.00 t 21.00 t 0.00 mm -0.30 mm

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