PROCUREMENT COOPERATION FRAME AGREEMENT
Exhibit
10.7
PROCUREMENT
COOPERATION FRAME AGREEMENT
Consignor:
Changshu Huaye Steel Strip Co., Ltd. (“Party A”)
Consignee:
Shanghai Huaye Iron & Steel Group Co., Ltd. (“Party B”)
Based
on
the friendly negotiation and mutual benefits, the Parties reach the following
agreement concerning procurement cooperation between the Parties:
| 1. |
Party
A agrees to entrust Party B to purchase source materials in the market
and
Party B agrees to accept such entrustment and promises to use its
own
purchase channels and personnel and try its best to purchase source
materials at the lowest price and
costs.
|
| 2. |
Party
B may, under its own name, negotiate and execute relevant contracts
with
the clients, provided that major contract provisions such as the
types,
specifications, unit price of the purchased source materials shall
be
notified to and agreed by Party A before any final agreement is
executed.
|
| 3. |
Party
B shall make sure that the purchased materials be delivered directly
to
the location of Party A. The costs for the transportation shall be
generally included in the total price of the purchased materials.
If under
some special circumstances, the transportation fees and costs shall
be
paid separately, such fees and costs shall be agreed upon by Party
A in
advance.
|
| 4. |
Upon
the delivery of the purchased materials by Party B, the Parties shall
enter into a separate detailed sales agreement based on the market
conditions concerning the quality and price of the purchased
materials.
|
| 5. |
The
term of this Agreement is one year, starting from January 1, 2007
and
ending on December 31, 2007. This Agreement will be automatically
terminated upon expiration. Where the Parties decide to continue
the
cooperation, a separate agreement shall be reached one month before
the
expiration of this Agreement.
|
| 6. |
For
any issues that are not covered under this Agreement, the Parties
may
conduct further negotiation. Where such issues cannot be settled
through
negotiation, they shall be subject to the Contract Law of
China.
|
| 7. |
This
Agreement is made in two originals, with each party holding one.
This
Agreement shall take effective upon
execution.
|
|
Changshu
Huaye Steel Strip Co., Ltd.
|
Shanghai
Huaye Iron & Steel Group Co., Ltd.
|
|
(Corporate
Seal)
|
(Corporate
Seal)
|
| Dated: December 7, 2006 | Dated: December 7, 2006 |