ASSEMBLY CONTRACT
No.01-4350
Date:October 10,2005
Hisonic Electronic Industries,Ltd.13 Hua Tai,Singapore(hereinafter ?referred? to as“Party A”)and Hong Xing Electronic Industries,Ltd.，5 Kunming Road,Guangzhou,Guangdong,China(hereinafter referred to as“Party B”)have discussed the matter of cooperation for assembling TVs and on the basis of equality and ?mutual? benefit concluded the Contract,the terms and conditions as follows:
1. Samples
Party B manufactured 15 sets of sample TVs in August 2005 with the components and auxiliary materials supplied by Party A according to the samples and blueprints sent by Party A.The representatives of Party A have examined and tested the samples made by Party B and are satisfied with the specifications of samples.The production in large quantities shall be carried on in accordance with the above said specifications.
2. Duration and Quantity
Both sides have agreed to conclude business by means of assembling supplied components.Party B shall assemble 60 000 TV sets in a year(March 2006—February 2007).The cooperation period is temporarily stipulated for three years(March 2006—February 2009).The output of the second and third year will be discussed in future.? 3. Responsibilities
Party A shall,at its own expenses,provide Party B with all components,auxiliary materials,blueprints and other technical data.Party B shall assemble them into finished products and then send to Party A.Most of the components,auxiliary materials and necessary technical data to be sent by Party A and used by Party B for the first year shall arrive at Guangzhou before the end of February,2006.
4. Assembly Fees
Through repeated discussion,both parties have agreed that the fee of ?assembly? for each set is US$30.00.Party A puts forward that Party B should consider a proper adjustment of assembly fee in the second and third year when monthly output comes up to 7 000 sets.Party B agrees to talk about this matter by then.
5. Terms of Transport
Through negotiations between both parties,it is provisionally decided that two shipments of the finished goods are to be made each month,all charges to be borne by Party A.
6. Terms of Payment
Party A shall remit Party B by draft once a month after receiving the finished goods dispatched by Party B.
7. Terms of Insurance
Party A shall insure the goods against All Risks with Warehouse to Warehouse Clause.However,while the goods are in the warehouse of Party B or during the course of assembly,Party B shall take the responsibility of insurance on behalf of Parly A.? 8. Compensation
Should Party A fail to supply the components and auxiliary materials in time or Party B fail to deliver the finished goods in time and should the opposite party sustain any loss,the responsible party shall compensate for the ?direct? loss.The concrete method will be decided through discussions between both parties.
9. Damage Allowance
In case damage is found in the components and auxiliary materials supplied by Party A,Party B shall inform Party A immediately so as to enable Party A to make a replacement.The allowance for damage of components and auxiliary ?materials? is 3 percent during the process of assembly.
10. Packing
One set is to be packed in a carton lined with waterproof and shockproof materials.? 11. Technical Support
After signing the Contract,Party B shall,at Party A’s expenses,dispatch 10 technicians and administrative personnel respectively to Party A’s factory to be trained.Party A’s factory should send 5 engineers to Party B’s factory for technical assistance.When necessary,two people of Party A shall make shuttle trips ?between? China and Singapore for exchange in technique.
12. Number of Contracts
There are 8 originals for the Contract.Party A and Party B each hold 2 originals.The rest shall be sent to the departments concerned in execution of the Contract.
Party A:Hisonic Electric Industries,Ltd.
Otto Pride,President
Party B:Hong Xing Electronic Industries,Ltd.
Wang Yinghui,President
