Steel Billet Purchase Agreement between Xingtai Longhai Steel Wire Ltd. and Xingtai Longhai Steel Group Ltd.

Contract Categories: Business Finance › Purchase Agreements
Summary

Xingtai Longhai Steel Wire Ltd. (the purchaser) and Xingtai Longhai Steel Group Ltd. (the seller) have entered into an agreement for the purchase of steel billets. The seller will supply steel billets meeting specified quality standards, with quantities based on the purchaser's market demand. Pricing is determined monthly, using the weighted average of the previous 10 days' sales prices minus a discount. The seller is responsible for delivering the billets to the purchaser's warehouse and must give advance notice if unable to meet demand. The purchaser must provide monthly production requirements in advance.

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EX-10.1 13 v178718_ex10-1.htm
 
Exhibit 10.1

Purchase Contract

Party A (Purchaser): Xingtai Longhai Steel Wire Ltd.
Party B (Seller): Xingtai Longhai Steel Group Ltd.

Concerning the purchase of steel billet, both parties friendly agree on a fair and free basis to the terms below:

1.
Contract objective: Steel Billet
2.
Quality: GB700-99, YB2011-83
3.
Quantity: will be based on Party A market demand
4.
Payment terms and price: Based on Party A’s estimated monthly billet consumption, as well as on the same product model market price at the beginning of the month, Part A will pay party B with purchase order on terms. The closing price will be set as the weighted average of prior 10 days sales prices of identical product less a 10 rmb per ton discount (as wholesale price).
5.
Delivery place: Party A raw material warehouse
6.
Both parties right and obligation:
 
a.
Party B will guarantee Party A has the exclusive priority right to purchase billet needed, if due to repair or other unforeseen reasons Party B cannot meet Party A’s demand quantities, Party B shall notify Party A in advance so they can properly schedule the purchase.
 
b.
Party B will produce Party A’s order according its product model, Party A should notify Party B on the 25th of every month next month production product model.
 
c.
Party B will be responsible for the delivery to Party A’s raw material warehouse, and the delivery fee will be the responsibility of Party B.

Party A (Purchaser): Xingtai Longhai Steel Wire Ltd.

Party B (Seller): Xingtai Longhai Steel Group Ltd.

Oct 1, 2008