PurchaseContract

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.