Purchase Contract

EX-10.53 272 v225684_ex10-53.htm CONTRACT BY AND BETWEEN CHANGXING CHISEN ELECTRIC CO., LTD. AND ZHEJIANG CHISEN

Purchase Contract

	Contract No. IJCS-20101118-1
	Place of Signing: Changxing , Zhejiang

Party A (Buyer): Changxing Chisen Electric Co., Ltd.

Party B (Supplier): Zhejiang Chisen Glass Co., Ltd.

After friendly consultation, the both Parties agree to come into and strictly abide by this Contract on components purchase.

1.	Party B shall provide Party A with the following products:

Product Name

Specification

Unit

Quantity

Unit Price

(17% tax

included)

Total

amount

Delivery

date

AGM Separate Plates

According to the orders

23.5 RMB/Kg

According to the orders

2.	Quality Warranty

Party B shall provide Party A with the products in compliance with Party A's quality and technical requirement.

3.	Delivery

Party B shall deliver the products to site appointed by Party A and bear the expenses arising therefrom.

4.	Acceptance Standard and Method

Party A shall inspect the goods in compliance with Party A’s technical standards and quality requirements. In case of any quantity or quality discrepancy, Party A is entitled to reject the goods and deduct the relevant amount for the defected goods accordingly.

5. Payment Terms

(1)	Party B shall deliver the products to Party A’s warehouse before the 25th day of the ordering month.

a)	Party A shall issue qualified goods inspection voucher to Party B;

b)	Party A shall issue warehouse voucher to Party B.

c)	Party A shall sign in acknowledgement of receipt for actual quantity received.

d)	VAT invoice with tax rate of 17% for products according to specification, quantity and amount listed in items a) b) c).

2) After Party A receiving the materials listed in Item (1) and Party A shall pay relevant amount to Party B between the 20th day and 25th day in the 4th month after recording the invoice of item (1) d) in Party A’s account. The same method should be applied to the payment terms of purchasing goods from the 25th day of this month to the 25th day of next month.

3) If Party B fails to deliver the (1) items to Party A before the 25th day of the ordering month, the payment should be delayed one month accordingly.

6. Breach Liabilities

Both Parties should strictly comply with the contract. Due to either party’s fault, if breaching the Contract, that party shall undertake the breach liability according to “The Contract Law of the People’s Republic of China”.

1)	If Party A failed to supply or short of supply to a large extent, Party A is not only entitled to terminate the contract, but also could indemnify Party B 2% of the aggregate amount of payment if caused impact on Party A’s production.

Party A shall strictly comply with the technical standards and quality requirements, if Party A returned the goods due to serious quality problems, (goods is allowed to be returned only once), if the goods were returned twice, Party B should pay penalty of 1% of the total amount. If over 3 times, the penalty will be 2% of the total amount, and so forth. If the goods returned over 3 times in one month, Party A is entitled to come up with corrective measures, disqualify suppliers or reevaluate suppliers’ qualification. Damages will be directly deducted from Party B’s payment for goods or paid off by Party B in one week once the damages occurred.

3)	Due to the quality and quantity problem from Party B, which caused loss on Party A during the production and sale process, Party B shall take the full responsibility.

7. 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.

8. Miscellaneous

(1)

If Party A have any modifications on product specifications, Party A should notify Party B immediately in order to do adjustment to its safe storage. Party A shall periodically adjust products price in accordance with the raw material price fluctuation. If special circumstances exist, both parties should negotiate.

(2)	Party A is permitted to detain RMB100,000 as guarantee for the contract performance .

(3)	If either Party wants to terminate the Contract, the Contract may be terminated by that Party by giving notice in written form 60 days in advance. Party A should pay off all the bills to Party B in 180 days.

9.	The Contract is made in duplicate, with each Party holding one original, and shall come into effect after being signed and sealed by the Parties. Fax is also effective.

	Party A: Changxing Chisen Electric Co., Ltd. (seal)
	Signature:
	Date: December 20, 2010

	Party B: Zhejiang Chisen Glass Co., Ltd.
	Signature:
	Date: December 20, 2010