Industrial Product Sales Agreement between Shandong Shengda Chemical Machinery Co., Ltd and Shandong Shengda Chemical Co., Ltd (July 5, 2004)

Summary

This agreement is between Shandong Shengda Chemical Machinery Co., Ltd (Seller) and Shandong Shengda Chemical Co., Ltd (Buyer) for the sale of industrial equipment, including tanks and towers, totaling RMB 2,515,200. The Seller will deliver the goods to the Buyer's factory within 45 days of receiving an advance payment. The Buyer must pay in installments as specified. The Seller provides a one-year quality warranty, and ownership transfers upon delivery unless full payment is not made. Disputes will be resolved through discussion, mediation, or court if necessary.

EX-10.16 17 zec8kex1016033106.txt INDUSTRIAL PRODUCT SALES AGREEMENT Exhibit 10.16 SALES CONTRACT OF INDUSTRIAL PRODUCTS ------------------------------------- NO.: SIGNED AT: Tai'an DATE: July 5, 2004 This contract is made and entered into by and between Shandong Shengda Chemical Machinery Co., Ltd (hereinafter referred to as the Seller) and Shandong Shengda Chemical Co., Ltd (hereinafter referred to as the Buyer); whereby the Seller agree to sell and the Buyer agree to buy the commodity mentioned in this contract subject to the terms and conditions stipulated below: Article 1: Object, Quantity, Price and Date of Delivery NAME OF COMMODITY: Absorption Tower, Equalizer Tank, Surge Tank, Liquid Ammonia Tank UNIT: PIECE QUANTITY: Three, One, One, and Two Respectively UNIT PRICE: RMB 165,200 yuan, 431,000 yuan, 96,200 yuan, 746,200 yuan respectively. TOTAL AMOUNT: RMB 2,515,200 (two million, five hundred and fifteen thousand and two hundred) yuan DATE OF DELIVERY: Within forty-five days after receiving the advance payment. Article 2: QUALITY STANDARD Be subject to the GB 150 Trade Standard for Containers. In the case of the liquid ammonia tank, the crack detection will be done on a 100% basis and the whole tank has to be undergone heat treatment. Article 3: TERMS AND TIME LIMIT OF QUALITY ASSURANCE OF THE SELLER: 1 Year of Quality Warranty Article 4: TITLE TO THE GOODS SHALL BE PASSED UPON DELIVERY; HOWEVER, IF THE BUYER FAILS TO PERFORM THE OBLIGATION OF PAYING THE FULL AMOUNT OF PURCHASE PRICE, TITLE TO THE GOODS SHALL REMAIN WITH THE SELLER. Article 5: MEANS AND PLACE OF DELIVERY: The Buyer's factory. Article 6: MODE OF TRANSPORAT AND DESTINATION AND COST ALLOCATION: The Seller shall be fully responsible. Article 7: STANDARD, METHOD, and PLACE AND TIME LIMIT OF INSPECTION: The inspection will be done pursuant to the National Standards. Article 8: METHOD, TIME AND PLACE OF PAYMENT: 30% shall be paid after this contract becomes effective. 30% shall be paid after the objects have been completed 50%; and 85% of the total will be paid when the objects have been delivered. Article 9: TERMINATION OF THIS CONTRACT: After the remaining amount of money has been paid off. Article 10: BREACH LIABILITY: shall be governed by the provisions of the Contract Law. Article 11: METHOD OF SETTLING THE DISPUTE OVER THE CONTRACT: IN THE PERFORMING OF THIS CONTRACT, IF ANY DISPUTE ARISES, THE TWO PARTIES SHALL SETTLE IT THROUGH FRIENDLY DISCUSSIONS; THE DISPUTE CAN ALSO BE MEDIATED BY THE LOCAL INDUSTRIAL AND COMMERICAL ADMINISTRATION; IF NO SETTLEMENT COMES FROM THE DISCUSSIONS OR MEDIATATIONS, THE DISPUTE SHALL BE SETTLED BY LAWSUITS THROUGH THE PEOPLE'S COURT. Article 12: THIS CONTRACT SHALL BECOME EFFECTIVE after having been officially signed by the two parities. THE SELLER: THE BUYER: Shandong Shengda Chemical Machinery Co., Ltd Shandong Shengda Chemical Co., Ltd /s/ Zhang Shanhui /s/ Chen Zhongzhi - ------------------------- ---------------------------------- AUTHORISED SIGNATURE AUTHORISED SIGNATURE