Equipment Purchase Contract
EXHIBIT
10.3
Contract
No: 2005-516
Buyer:
Winner Medical (Huanggang) Co., Ltd. (“Party A”)
Seller:
Zhengzhou Textile Machinery Co., Ltd. (“Party B”)
To
clarify the rights and responsibilities of each party and based on the principle
of free will, equality and good faithô
Party A
and Party B have reached the following agreement regarding the sale and purchase
of one set of equipment (composed of two production lines) for 100% cotton
spunlace medical gauze (the “Equipment”).
1. |
Name,
Quantity and Specification of the Equipment
|
(Please refer to the Attachment for detailed information). |
2. |
Total
Amount of This Contract
|
RMB 19.8 million (freight included). |
3. |
Terms
of payment
|
Within
half a month from the signing date of this Contract, Party A shall pay to Party
B 20% of the total value for one production line as down payment. This Contract
shall become effective receipt of the down payment by Party B (“Effective
Date”).
Within
three month from the Effective Date of this Contract, Party A shall pay 30%
of
the Total Amount to Party B.
Before
delivery of the Equipment, Party A shall pay 40% of the Total Amount to Party
B.
On
completion of installation and testing (‘Completion Date”), Party A shall pay 5%
of the Total Amount to Party B.
The
balance of the Total Amount shall be paid to Party B within six month from
the
Completion Date.
(Payments
for each of the two production lines shall be made according to the progress
relating to delivery.)
4. |
Term
of delivery
|
One
production line shall be delivered within six month from the Effective Date
while the other shall be delivered within ten month from the Effective
Date.
5. |
Quality
Criteria For the Equipment
|
Quality
criteria for the Equipment shall be the same with the enterprise standard for
Party B’s products.
6. |
Quality
Criteria For Products
|
Follow
the industry standard for spunlace non-woven cloth FZ/T64012.1-2001(Leather
Cloth) and the specification in the Attachment.
7. |
Packing
|
Standard
packing for products of Party B sold domestically. The packing material shall
not be returned and the packing cost is included in the Total Amount of this
Contract.
8. |
Term
of Transportation
|
Party
B
is responsible to deliver the Equipment to Party A’s factory located in
Huanggang, Hubei Province.
9. |
Destination
of Delivery:
|
Party
A’s
factory.
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10. |
Installation
and Testing
|
Party
B
shall be responsible for installation and testing of the Equipment free of
charge and Party A shall provide accommodation for the technical staff of Party
B.
11. |
Guarantee
Period
|
The
guarantee period is one year from the delivery date.
Within
the guaranty period, Party B is responsible to replace and maintain machine
parts damaged due to quality problem free of charge.
Party
B
agrees to provide maintenance assistance to Party A after expiry of the guaranty
period.
Party
B
agrees to provide replacement or maintenance for conveying pulley, large
wallboard, jointing of roll and speed reduction box damaged due to quality
problem within 3 years from the delivery date.
12. |
Party
B is responsible for providing technical information which includes
two
sets of instruction books, general drawing of the Equipment, electrical
diagram, etc.
|
13. |
Party
A is responsible for supply of electricity, water, gas, heat, and
other
specific materials needed by the production
lines.
|
14. |
This
Contract is signed in four originals with each party holding two
originals. This Contract shall become effective once it is singed
and
stamped by both parties and on Party B’s receipt of the down payment.
|
15. |
Settlement
of Dispute
|
By
mutual
consultation.
Party
A: Winner Medical (Huanggang) Co., Ltd,
Address:
Xx.0 Xxxxx Xxxxxx, Xxxxxxxxx Xxxx, Xxxxx Xxxxxxxx
Authorized
Representative (Signature): Xxxxxxxx Xx
Official
Seal
July
12th
2005
Party
B: Zhengzhou Textile Machinery Co., Ltd,
Address:
No. 16, Yinpin Road, Hi-tech Development Zone, Zhengzhou, Henan
Province
Bank:
Xxx
Xxxxxx of Industrial and Commercial Bank of China
Account:
1702020709200014220
Authorized
Representative (Signature): Xxxxxxx Xxx
Official
Seal
July
12th
2005
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