Offset Printing Machine Assembly Line Design Research and Development Contract

Contract No. 20030307

 

 Offset Printing Machine Assembly Line

 

 

 

 

 

 

 

4. If the first performance acceptance test fails to meet one or more performance assurance indicators specified in Attachment 1 hereto, both parties shall jointly analyze reasons and identify the responsible party, which party shall take measures, and the second acceptance test shall be conducted within half month after completion of the first test.

 

5. If the equipment still fails to meet one or more performance assurance indicators specified in Attachment 1 hereto as found in the second performance acceptance test, both parties shall jointly analyze reasons and identify responsibility.

 

6. The demander will issue the final acceptance certificate as per Sub-clause 5.4 within 7 working days after the period from the issuing date of the preliminary acceptance certificate to its one-year anniversary and completion of compensation claim, regardless the performance acceptance test has been conducted for one or two times.

 

7. The preliminary acceptance certificate issued by the demander solely proves that the performance and parameters of the contract equipment from the supplier can be accepted pursuant to the contractual requirements as of the time of issuance of said certificate, but shall not be deemed as the evidence of relieving the supplier from the responsibility for potential defects of the contract equipment that may cause damages of the equipment and similarly, the final acceptance certificate shall also not be considered as such evidence. Potential defects refer to hidden problems of the contract equipment that cannot be normally found in the course of manufacturing and the supplier’s responsibility for correcting the defects shall be assured to last for the duration from end of the one-year warranty period to the first overhaul (which duration is normally one year). When such a potential defect is found (confirmed by both parties), the supplier shall provide free-of-charge repair or replacement.

 

1. Party B shall deliver equipment drawings within one and a half month after the Contract takes effect. All key pieces of equipment shall arrive at the plant in four and a half month and the time limit for completion of the entire Project shall be five and a half month from effectiveness of the Contract.

 

2. Party B must finish civil engineering of the shop and make all installation conditions available within four months after the Contract becomes effectiveness, or otherwise the time limit for the Project shall be extended accordingly.

 

1. The warranty period is normally one year from signing of the final acceptance certificate of the contract equipment.

 

2. The supplier warrants that the contract equipment it supplies is brand new and of advanced and mature technological level, and that all equipment models selected meet the requirement for safe, reliable and economic operation and easy maintainability. The supplier undertakes that the technical documents delivered pursuant to Attachment 2 hereto are complete, consistent, correct and accurate and are able to meet the design, installation, commissioning, operating and repair requirements of the contract equipment.

 

3. The supplier shall pay penalty in the event of failure to meet one or more assurance indicators set forth in Attachment 1 hereto due to the supplier’s reason after 3 occasions of acceptance tests.

 

4. If any material defect (failure to meet performance requirements, etc.) attributed to the supplier’s reason is found within the warranty period of the contract equipment, the warranty period will be re-started as one year from correction of the defect or replacement of the defective part.

 

5. In the event of the supplier’s delivery delay lasting for more than 7 days, the supplier shall pay 5‰ of the total design fee payable as penalty against each delayed day. The penalty will be deducted from the price of the equipment and shall not relieve the supplier from the obligation to further proceed with the delivery as per the Contract.

7. The sum of penalties assumed by the supplier in connection with the contract equipment, either for a single default or aggregately for more than one defaults, shall not exceed 10% of the total price of the contract equipment.

 

8. The supplier’s payment of penalty against late delivery shall not relieve it from the appropriate obligations set forth herein.

 

9. In the event that the demander (the user) rejects the contract equipment and refuses to pay the price thereof without due cause, it shall pay penalty to the supplier at thirty percent of the total price of the equipment.

 

10. If the demander fails to pay the price of the contract price within 5 working days after satisfaction of payment conditions and receipt of the inspection conformity report, it shall pay penalty to the supplier at 5‰ of the outstanding sum. The aggregate amount of penalties against late payment for each set of contract equipment shall not exceed 5% of the set’s total price.

 

1. The supplier shall bear the taxes it is supposed to pay in connection with the Contract in accordance with applicable taxation laws, regulations and requirements of the State.

 

Party B undertakes to provide one year’s quality warranty for all equipments effective from the date of their being brought into use. If problems occur in the course of use that are attributed to the reason of Party B, it shall solve them in a timely manner and shall reach the site within 24 hours if the problems have to be settled on the site, or it shall also provide active assistance in settling the problems when they are due to the reason of Party A. (If equipment installation and commissioning is prevented due to the reason of Party A, the quality warranty period shall be extended to up to 18 months from the arrival date of key equipment).

 

 

1. Party A undertakes to put the drawings, documents and software from Party B into its internal use only and not to disseminate them to third parties.

 

2. Party A shall provide board and lodging convenience to the personnel of Party B and Party B shall independently cover the cost thereof.

 

3. Party A shall take charge of on-site security in order to prevent unnecessary losses.

 

4. Party B shall be responsible for clarifying civil engineering drawings and if on-site clarification is needed, it shall be done within one week.

 

1.	The Contract shall take effect after signed and affixed with common seals by both parties’ representatives.

 

2.	The Contract is made in six identical copies, with each party holding three, all enjoying the same effectiveness.

 

3.

Both parties shall consult with each other in a friendly and cooperative manner and in accordance with the Contract Law to settle issues unexhausted herein and situations of delays of the Project caused by force majeure events. The resulting supplementary agreements shall enjoy the same effectiveness as the Contract.

 

4.	Attachments: The attachments to the Contract are the original technical terms and conditions required in the design and the fundamental basis of inspection and acceptance of equipments and the Line, and shall constitute an important part of the Contract.

 

5.	Term of Validity: The Contract shall remain valid until expiration of the equipment warranty period, and shall automatically lapse after payment of the quality warranty deposit.

Party A:

 

/s/ DuoYuan Digital Printing Technology Industry (China) Co., Ltd.

 

Legal Representative:

 

Authorized Representative:

 

Address: #3 Jinyuan Road, Daxing Industrial Development Zone, Daxing District, Beijing

 

Postcode: 102600

Party B:

 

/s/ Beijing Printing Machinery Research Institute

 

Legal Representative:

 

Authorized Representative:

 

Address: #5 Zaojiajienanli, Fengtai District, Beijing

 

Postcode: 100071