COMPENSATION TRADE CONTRACT

article 3 reimbursement

party a shall reimburse party b for all the machines and auxiliary equipment supplied by party b by delivering goods to party b on a monthly basis and the reimbursement will last for___ year(s) and ____months(s). the reimbursement shall start approximately ____month(s) after the first delivery of the machines and, in principle, the money to be reimbursed per month shall be ______percent of the total amount due for the machines. with a ______month(s) notice to party b, party a may reimburse party b in advance.

within the reimbursement period, party b shall, under the provisions of the additional sales agreement aforesaid, open, sight, irrevocable, divisible and assignable letters of credit, covering the full amount, in favor of party a.

article 4 standard money and price standard

the standard money for this transaction is (name of currency). all the machinery, auxiliary equipment and measuring and testing instruments , etc. provided by party b shall be valued with (name of currency), while the goods provided by party a to party b as reimbursement shall be valued with the basis price (name of currency) of the same goods exported by party a at the time when this agreement is entered into, and the total price (name of currency) shall be changed into that of (name o f currency) in accordance with the exchange rate then.

article 5 intrerest

party a shall pay the interest on its long-term letters of credit and the interest on the cash in advance rendered by party b. the annual interest rate is agreed upon at_____%.

article 6 technical service

the machinery, after arrival at its destination, shall be installed by party a, party b shall dispatch its technicians to render spot instructions and other necessary technical assistance during the installation of the main machines, as may be requested by party a in case of necessity, party b shall be liable for the losses resulted in such a course of installation from technical default on its part.

article 7 additional equipment

during the enforcement of this agreement, if it is found necessary that, in addition to the machinery and equipment listed herein, some new accessories or measuring and testing instruments are needed for completion of the project, (an) additional order(s) may be made through negotiation by the parties. the new items thus added shall be incorporated in agreement.

article 8 insurance

the machinery and auxiliary equipment, after shipment, shall be insured by party b. the title thereof shall be transferred into party b after full payment therefore is made by party b, thereafter, the unforeseeable losses concerning the machinery and auxiliary equipment shall be indemnified for first by the insurance company to party b, then party b shall remit for party a,in proportion, the sum already paid by party a for the machinery or equipment involved in the contingency.