Exhibit 10.28
Certain portions of this Exhibit have been omitted pursuant to a request for
"Confidential Treatment" under Rule 24b-2 of the Securities and Exchange
Commission. Such portions have been redacted and bracketed in the request and
appear as [ ] in the text of this Exhibit. The omitted confidential information
has been filed with the Securities and Exchange Commission.
AGREEMENT FOR PURCHASE OF EQUIPMENT
Number: 2001BZD (2)-019
2001
CHAPTER I - GENERAL PRINCIPLES
1.1 This contract is made between the Beijing Zhong Dun Security Technology
Development Company, on behalf of the Ministry of Security No. 1 Research
Institute (hereinafter referred as Party A) and the American Pacific
Aviation Technology Company (hereinafter referred as Party B), based on
the principle of mutual benefit and through friendly negotiations, to
purchase from Party B by Party A the equipment for the production of the
contactless smartcards.
1.2 It is agreed that Party B shall provide a full set, brand new, and
state-of-art production line and the complete production technology,
technical information and software for the production of contactless
smartcards, which shall ensure that the strength and durability of the
mechanically tested cards produced by Party A meet the standards of
ISO/IEC7810, ISO/IEC10536, and ISO/IEC14443.
1.3 According to the laws and rules and regulations of the People's Republic
of China and based on the principle of mutual benefits, the provisions of
this agreement shall become effective and shall be executed at the same
time with the "Agreement of Technical Services and Licensing".
CHAPTER II - PARTIES
2.1 Party A: The Beijing Zhong Dun Security Technology Development Company
(The Ministry of Security No. 1 Research Institute)
Legal Address: 1 Shou Ti Road South, Haiding District, Beijing, China
Telephone: (86) 10-68420099-2857
Fax: (86) 10-68428709
Zip Code: 100044
2.2. Party B: American Pacific Aviation & Technology Corp.
Legal Address: Sansome Street, 19th Street
San Francisco, CA 94104, USA
Telephone: (415) 951-1078
1
Fax: (415) 951-1046
Zip Code: 550017
CHAPTER III - NAME, SPECIFICATIONS, QUANTITY, PRICE AND DELIVERY OF EQUIPMENT
3.1 Party B shall provide Party A with a complete brand new and state-of-art
production line (see Appendix I - "Equipment Functions and Technical
Specifications") for the production of contactless smart cards. Said
production lines shall be able to produce 2500 pieces of smart cards per
hour. The total cost of the equipment shall be US$[
] US Dollars), based on the CIF Beijing
Airport cost, which shall include the equipment, moulds, technical
service, patent and licensing, and accessories.
3.2 Before packaging said production line for shipment, Party A shall send
four technical staff to come to the United States to conduct preliminary
inspection of the equipment. See Appendix V, "Equipment Acceptance
Details" for preliminary inspection standards. Party B shall pay for the
expense of the two-way air tickets, and provide lodging and transportation
in the United States for the visiting staff of Party A. Staff of Party A
will stay in the United States for two weeks.
3.3 Delivery Date of the Equipment: Three and a half months after the
agreement is signed by both parties.
CHAPTER IV - PAYMENT
4.1 Within 15 working days upon the effect of this agreement, Party A shall
issue a Letter of Credit at [ ] of the total amount to Party B, that is,
US$[ ] US Dollars).
4.2 Upon approval of preliminary inspection made by Party A in the United
States and after Party B ship the equipment, Party B shall, based on the
shipment documents and preliminary inspection report, negotiate with Party
A for the portion of the amount of the Letter of Credit specified in 4.1,
that is, [ ] of the total price of the equipment, in the amount of
US$[ ]
2
[ ] US Dollars).
4.3 Upon completion of installation, test-run and acceptance when the
performance of the equipment is proven meeting the standards of "Appendix
V - Equipment Acceptance Details), both parties shall sign the "Receipt
and Acceptance Certificate". Party B shall, based on the Receipt and
Acceptance Certificate and letter of guarantee from the bank, negotiate
with Party A for the balance of the Letter of Credit specified in 4.1,
that is, [ ] of the total cost of the equipment, in the amount of
US$[ ] US Dollars).
CHAPTER V - SPECIFICATIONS AND TECHNICAL CONDITIONS OF THE EQUIPMENT
5.1 The production line supplied by Party B must be brand new, complete and
shall correspond to the specifications of Appendix I - "Equipment
Functions and Technical Specifications".
5.2 The performance and quality of the equipment shall meet the following
requirements:
5.2.1 The operation capacity of the equipment shall meet the
specifications of the manual of the equipment
5.2.2 The production capacity of the equipment: 2500 pieces/hour
5.2.3 Product Specification: 4 coil antenna, ISO7810 standard ID1_1
size (thickness excluded)
5.2.4 Product Acceptance Rate: Single set equipment, one time
acceptance rate >= 98%, total acceptance rate >= 97%
5.2.5 Product Quality: the strength and durability of the cards,
when mechanically and electronically tested, shall meet the
ISO/IEC7810, ISO/IEC10536, ISO/IEC14443 standards and product
standards specified by Party A in Appendix V, "Equipment
Acceptance Details" of the contract.
5.3 Party B shall deliver the following supplements along with the equipment:
5.3.1 Special operation tools, maintenance and repair tools and
testing tools (See Appendix IV)
5.3.2 Wearing parts of equipment (enough for one year normal
consumption) (See Appendix II)
5.3.3 Approved raw materials needed for the 54-hour production test
run (See Appendix 6) The fake chips used for 48 hours and real
chips will be
3
used for 6 hours during the test run period shall be purchased
by Party B in China.
5.4 Party B shall deliver the following technical documents when packaging and
shipping the equipment:
5.4.1 The quality approval certificate and the manual of the
equipment
5.4.2 The packaging list of the equipment
5.4.3 Manuals of installation, testing, operation and maintenance
5.4.4 The quality assurance certificate and documentation, as
specified in Chapter VII
5.4.5 Drawings of wearing parts and the list of accessories.
5.5 Upon effect of the contract, Party B shall, within 10 working days, mail a
technical layout drawing and power supply information to Party A for
technical design purpose.
5.6 Party B shall, two months before the installation and test running of the
equipment, mail the following documents to Party A or have staff work at
Party A's place to provide instructions:
5.6.1 The installation diagram and the foundation diagram
5.6.2 The power parameters (including power, compressed air, water
and stream) of the equipment, and the technical information of
power supply and special shop requirements
5.7 The power utilization standards shall correspond to those of the People's
Republic of China, that is, 380 (+ or -) 10 volts for the transformer, and
50 (+ or -) 5% hertz for the frequency.
CHAPTER VI - INSTALLATION, TROUBLE-SHOOTING, TEST RUNNING AND RECEIPT AND
ACCEPTANCE
6.1 Party B shall be responsible for installing and trouble-shooting the
equipment, and training the staff of Party A, ensuring that the
installation and trouble shooting of the equipment be completed within two
weeks after the arrival of the equipment in the shop. Party A shall
provide the necessary technical staff, workers and other necessities to
accommodate the project.
4
6.2 Methods and Procedures of Final Acceptance of the Equipment
(See Appendix V - Equipment Acceptance Details)
6.3 The test run period shall be seven working days, at eight hours per day.
The purpose of the test run is to inspect the production equipment, and to
examine whether the products produced meet the requirements specified in
Provision 5.2. After approval of test results by Parties A and B, the
receipt and acceptance certificate shall be signed.
6.4 During the test run period, if the acceptance rate of the product falls
under the level of 97%, a second testing shall be made to test the
equipment for another seven working days, the cost of the materials for
test run shall be assumed by Party B. If the acceptance rate is still
under 97%, a maximum of another seven working days can be extended. If it
still fails to meet the demand, Party A shall have the right to request
replacement and compensation.
6.5 Large volume of production shall not begin until receipt and acceptance is
completed.
6.6 Party B shall assume the cost of its staff during their period of working
in the factory. Party A shall provide food by the factory and
transportation within the city.
CHAPTER VII - QUALITY INSPECTION
7.1 Party B shall guarantee that the equipment is made by top craftsmanship
and of top materials. The quality, specification and performance of the
equipment shall meet the requirements specified in this contract.
7.2 Before delivery, Party B shall conduct a thorough and full inspection of
the quality, specification and performance, as well as the quantity/weight
of the equipment, and shall provide a certificate of inspection, along
with the details and results of the inspection confirming that the quality
and quantity of the equipment meets the requirements of this contract. A
quality and quantity inspection certificate shall be provided by Party B
when the equipment is delivered to Party A.
7.3 Upon arrival of the equipment at the destination, Party A shall, in
accordance to
5
the laws and rules and regulations of the People's Republic of China,
request that the Import and Export Inspection Bureau (hereinafter as
Inspection Bureau) to conduct an inspection. Parties A and B shall both be
present at said inspection. Party A shall notify Party B ten days in
advance about the inspection date and representative from Party B shall
arrive at the inspection site of A on said inspection date. In the event
Party B fails to show up on time or fails to send any representative to
participate in the inspection, the Inspection Bureau shall continue
inspection as scheduled and the result of which shall be notified by Party
A to Party B and Party B shall acknowledge the result accordingly.
7.4 In the event the inspection finds any quality or quantity error, or any
missing part that does not meet the requirements of this agreement, or any
damage due to packaging, Party B shall within six weeks make compensation,
or shall make repairs at its own cost. In the event that any damage is
caused by Party A, Party B shall replace the damaged item as soon as
possible, and the cost of replacement shall be paid by Party A.
7.5 In the event the inspection finds any serious quality or quantity problem
of the equipment, Party A shall have the right to return the equipment or
request compensation based on the provisions of Chapter IX.
7.6 The warranty period of the equipment shall be 12 months, commencing the
date when the equipment is received and accepted. During the warranty
period Party B shall be responsible for repairing the equipment if the
damage of the equipment is caused by the defects of the equipment.
CHAPTER VIII - PACKAGING AND SHIPMENT
8.1 When packaging, Party B shall use a new and solid wood container with
necessary measures taken to prevent moist, shock, rust and rough loading
and unloading of the equipment to ensure that the package is suitable for
long distance transportation.
If the package material used is of the conifruticeta type, Party B shall
provide proof that the material used has been fumigated.
If the package material used is of the non-conifruticeta type, Party B
shall provide description of the type of material used which will be used
by Party A
6
during the Custom process.
8.2 Packaging and Delivery Marks
Party B shall mark with non-erasable paint at the four sides of the
container such information as the number of the container, the size, gross
weight, net weight, destination, receipt code, "face up", "handle with
care", "no moist", "hoisting point" and "gravity point".
8.3 Shipment Information
8.3.1 Within two days after shipping, Party B shall fax Party A the
following information: A. Date of Shipment, B. Port of
Shipment, C. Port of Destination, D. Number, Name, Quantity,
Weight, Total Weight and Size of the Container.
8.3.2 Within two days after shipping, Party B shall send the
following information to Party A via express mail:
A. Invoice, with specification of the name and the quantity
of the merchandise;
B. Packaging Slip which specifies the number, size, weight
of the container, and the name, quantity, net weight of
the merchandise, and the date of shipment;
C. Air way bill.
D. The inspection certificate provided by the manufacturer,
as specified in Chapter VII.
E. Insurance policy
CHAPTER IX - COMPENSATION AND PENALTY
9.1 In the event Party A, within 90 days upon the arrival of the equipment at
the destination port, finds any disagreement of the specifications,
quality and quantity of the equipment as specified in this contract, Party
A shall, by presenting the inspection certificate of the Inspection
Bureau, request compensation from Party B.
9.2 Party A shall assume the actual cost of overtime for any delay of
installation and testing of the equipment caused by Party A.
9.3 In the event Party B fails to respond within 30 days after Party A makes
its claim
7
for compensation, it shall be considered that Party B accept the claim. In
the event Party B presents a timely written dispute, both parties shall
try to settle the dispute by negotiation. In the event the negotiation
fails to settle the dispute, either party shall have the right, according
to Article XI, request for arbitration.
9.4 Except for force majeure as specified in Provision 10.1, in the event the
seller fails to deliver the merchandise on time according to the contract,
Party A shall agree that Party B postpone delivery provided that Party B
shall pay a penalty at 0.5% of the total cost for every delayed week but
this penalty shall not exceed 5% of the total cost. In the event the delay
of delivery exceeds ten weeks of the scheduled date, Party A shall have
the right to terminate the contract and Party B shall still pay for the
penalty for the actual delayed days.
9.5 Without written agreement of Party B, Party A cannot transfer the patent
technology and licensing to any third party, nor Party A can duplicate the
equipment of Party B. In the event Party A allows any third party to use
said technology at its discretion, Party A shall pay Party B an amount of
US$[ ] for violation of the contract. In the event Party A duplicates
the technology of Party B, it shall pay Party B an amount of US$[ ]
for defaulting the contract. Payment of this amount does not waive the
right of Party B to prosecute against any third party or Party A for
violation of rights.
CHAPTER X - FORCE MAJEURE
10.1 During the time of manufacturing or in the process of shipping, in the
event of war, fire, flood, typhoon, earthquake or other force majeure
acknowledged by both parties that causes Party B fail or delay to execute
the provisions of this contract as schedule, Party B shall assume no
liability. In the event of force majeure, Party B shall notify Party A
immediately and shall within two weeks, send, via air mail, a government
issued certificate to Party A confirming said force majeure.
10.2 When the force majeure vanishes, both parties shall negotiate whether to
continue executing the contract.
CHAPTER XI - ARBITRATION
11.1 In the event there arises any dispute during the execution of this
agreement or
8
over this agreement and when both sides fail to settle the dispute by
friendly negotiation, said dispute shall be brought for arbitration. The
dispute shall be heard by the China International Economic and Foreign
Trade Arbitration Committee, in Beijing, according to the procedures set
by said committee.
11.2 The decision of the Arbitration Committee shall be final and shall have
binding effect upon both parties. Arbitration fee shall be paid by the
losing party.
11.3 During the period of arbitration, both parties shall continue to execute
other non-disputed terms of the contract.
CHAPTER XII - GOVERNING LAWS AND VALIDATY
12.1 When executing this agreement, both Parties A and B shall comply with the
laws and rules and regulations of the People's Republic of China.
12.2 This agreement shall become effective upon the date signed.
12.3 After this agreement becomes effective, both Parties A and B shall, if
needed, discuss revisions to accommodate the practicalities of executing
this agreement. These revisions shall become effective when signed by both
parties. Neither party can amend the agreement on its own.
CHAPTER XIII - DOCUMENTS
13.1 This agreement shall be written in Chinese.
13.2 This agreement is signed on _____ 2001.
13.3 This agreement contains eight original copies, with four copies in Chinese
and four copies in English.
PARTY A:
Bejing Zhong Dun Security Technology Development Company
(The People's Republic of China Ministry of Security No. 1 Research Institute)
Company Representative:
Signature: (signature)
9
PARTY B:
The American Pacific Aviation & Technology Corporation
Company Representative:
Signature: (signature)
10
SUPPLEMENTARY TO EQUIPMENT PURCHASE AGREEMENT
2001
Given the IC mould for the second generation identification cards for the
citizens of the People's Republic of China is being developed, the IC mould used
during the test run period will be different from said IC mould. After
negotiation by the People's Republic of China Ministry of Security No. 1
Research Institute (Party A) with The American Pacific Aviation and Technology
Company (Party B), it is agreed that when Party A finalizes its IC mould, Party
B shall replace and test run the hole punch machine, the IC pick and place
machine and related moulds at no charge.
PARTY A:
Being Zhong Dun Security Technology Development Company
(The People's Republic of China
Ministry of Security No. 1 Research Institute)
Company Representative:
Signature: (signature)
PARTY B:
The American Pacific Aviation & Technology Corporation
Company Representative:
Signature: (signature)
11
APPENDIX 1
Certain portions of this Exhibit have been omitted pursuant to a request for
"Confidential Treatment" under Rule 24b-2 of the Securities and Exchange
Commission. Such portions have been redacted and bracketed in the request and
appear as [ ] in the text of this Exhibit. The omitted confidential information
has been filed with the Securities and Exchange Commission.
EQUIPMENT FUNCTION & TECHNICAL SPECIFICATIONS
15
List of Production Line Equipment and Laboratory Instruments Included in This
Set of Production Line
- ---------------------------------------------------------------------------------------------------
Serial Quantity Name Model Price
No. of Equipment No. (in US$10,000)
- ---------------------------------------------------------------------------------------------------
Production 1 1 Hole Punch Machine CICC-001 [ ]
Line
-----------------------------------------------------------------------------------
2 3 Pick & Place With Module CICC-002 [ ]
Testing
-----------------------------------------------------------------------------------
3 2 Ultrasonic Wire Implanting CICC-003 [ ]
(4)
-----------------------------------------------------------------------------------
4 3 Welding With Testing Reader CICC-004 [ ]
-----------------------------------------------------------------------------------
5 2 Bonding Re-work Station CICC-005 [ ]
-----------------------------------------------------------------------------------
6 2 Tacker CICC-006 [ ]
-----------------------------------------------------------------------------------
7 4 Lamination System CICC-007 [ ]
-----------------------------------------------------------------------------------
8 4 Cooling System CICC-008 [ ]
-----------------------------------------------------------------------------------
9 1 Card Punching Machine CICC-009 [ ]
- ---------------------------------------------------------------------------------------------------
Laboratory 10 1 Flexion & Torsion Test System OASYS [ ]
-----------------------------------------------------------------------------------
11 1 Pull Tester MP5/230 [ ]
-----------------------------------------------------------------------------------
12 1 LCR Meter DEME-3010, [ ]
Frequency Analyzer DEWE-3010
- ---------------------------------------------------------------------------------------------------
13 Test Run Raw Materials (glue [ ]
400 pieces, wire coil, 160)
- ---------------------------------------------------------------------------------------------------
Total: US$[ ]
16
HOLE PUNCH MACHINE
1. FUNCTION: Working with varied moulds, able to hole punch the [ ]
PC, PET, PETG and PVC films into varied location holes and module holes
based on varied specifications, to be used for follow-up process. With
automatic protection device that will automatically stop during exceptional
cases.
2. SYSTEM SET: Three high precision moulds (to hole punch [ ]
materials and location holes respectively), safety protection device, hole
punch time controller.
3. MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
4. PRODUCTION CAPACITY: [ ] cards/hour
5. SYSTEM PARAMETERS:
- ---------------------------------------------- --------------------------------
Hole punch pressure [ ]
- ---------------------------------------------- --------------------------------
Punching process [ ]
- ---------------------------------------------- --------------------------------
Punching Mould Foundation [ ]
- ---------------------------------------------- --------------------------------
Effective punching and area [ ]
- ---------------------------------------------- --------------------------------
Punching precision [ ]
- ---------------------------------------------- --------------------------------
Power Supply [ ]
- ---------------------------------------------- --------------------------------
Maximum Electric Current [ ]
- ---------------------------------------------- --------------------------------
Power [ ]
- ---------------------------------------------- --------------------------------
Frequency [ ]
- ---------------------------------------------- --------------------------------
Electrical Machinery [ ]
- ---------------------------------------------- --------------------------------
Hydraulic Pressure Oil Capacity [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Pressure [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Flow [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Conditions [ ]
- ---------------------------------------------- --------------------------------
17
PICK AND PLACE
1. FUNCTION: Pick and place the moulds into corresponding holes of the PVC,
PC, PET and PETG films. The placement position can be adjusted and fixed by
adhesives. With automatic protection device that can automatically turn off
the machine in exceptional cases.
2. SYSTEM SET: Chip punched moulds, chip recognition sensor, high precision
gluing system, Adept robot, Pentium 4 computer, LCD Monitor, interchangable
drawer, safety protection device.
3. MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
4. CONSUMPTION MATERIALS: Adhesives, [ ]
5. PRODUCTION CAPACITY: [ ] cards/hour/set (based on three rows of the
module tapes)
6. SYSTEM PARAMETERS:
- ---------------------------------------------- --------------------------------
Width [ ]
- ---------------------------------------------- --------------------------------
Thickness [ ]
- ---------------------------------------------- --------------------------------
Height [ ]
- ---------------------------------------------- --------------------------------
Weight [ ]
- ---------------------------------------------- --------------------------------
Placement Area [ ]
- ---------------------------------------------- --------------------------------
Placement Precision [ ]
- ---------------------------------------------- --------------------------------
Power Supply [ ]
- ---------------------------------------------- --------------------------------
Maximum Electric Current [ ]
- ---------------------------------------------- --------------------------------
Power [ ]
- ---------------------------------------------- --------------------------------
Frequency [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Pressure [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Flow [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Conditions [ ]
- ---------------------------------------------- --------------------------------
18
WIRE IMPLANTING MACHINE
1. FUNCTIONS: Said machine uses the [
] directional movement [ ] ultrasound wire implanting
head to implant the enamel-insulated wire accurately into the PC, [
] material and coil into a wire coil The position,
size, shape, and the circles of coil can be set up by the computer. With
automatic protection device that can automatically turn off the machine in
exceptional cases.
2. SYSTEM SET: Second generation ultrasound wire implant head (with four
implanting heads in each station), Adept robot, Pentium 4 computer, LCD
monitor, interchangable drawer, safety protection device.
3. MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
4. PRODUCTION CAPACITY: [ ]
5. CONSUMPTION MATERIALS: Ultrasound head: [ ]
Wire: [ ] cards/spool
6. SYSTEM PARAEMTERS:
- ----------------------------------------------- -------------------------------
Width [ ]
- ----------------------------------------------- -------------------------------
Thickness [ ]
- ----------------------------------------------- -------------------------------
Height [ ]
- ----------------------------------------------- -------------------------------
Weight [ ]
- ----------------------------------------------- -------------------------------
Implanting Area [ ]
- ----------------------------------------------- -------------------------------
Power Supply [ ]
- ----------------------------------------------- -------------------------------
Maximum Electric Current [ ]
- ----------------------------------------------- -------------------------------
Power [ ]
- ----------------------------------------------- -------------------------------
Frequency [ ]
- ----------------------------------------------- -------------------------------
Condensed Air Pressure [ ]
- ----------------------------------------------- -------------------------------
Condensed Air Flow [ ]
- ----------------------------------------------- -------------------------------
Condensed Air Conditions [ ]
- ----------------------------------------------- -------------------------------
19
WELDING MACHINE
1. FUNCTIONS: Using the hot pressure welding method to weld the coil end
enamel -insulated wire with the module chips. Outputs of the welding
machine include constant power, constant electric current and constant
voltage, with automatic compensation adjustment function. Adept robot can
perform welding in any set position within the operation area. Welding
strength normally should exceed [ ], and minimum should be no less
than [ ]. With automatic function of polishing the chips. With
automatic protection device. Able to turn off the machine automatically in
exceptional cases.
2. SYSTEM SET: High precision electric current generator, Adept robot and its
Vision System, hydraulic (illegible) system, Pentium 4 Computer, LCD
Monitor, interchangable drawer, safety protection device.
3. MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
4. CONSUMPTION MATERIALS: [ ]
5. PRODUCTION CAPACITY: [ ] cards/hour/station
6. SYSTEM PARAMETERS:
- ---------------------------------------------- --------------------------------
Height [ ]
- ---------------------------------------------- --------------------------------
Width [ ]
- ---------------------------------------------- --------------------------------
Thickness [ ]
- ---------------------------------------------- --------------------------------
Weight [ ]
- ---------------------------------------------- --------------------------------
Welding Area [ ]
- ---------------------------------------------- --------------------------------
Power Supply [ ]
- ---------------------------------------------- --------------------------------
Maximum Electric Current [ ]
- ---------------------------------------------- --------------------------------
Power [ ]
- ---------------------------------------------- --------------------------------
Frequency [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Pressure [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Flow [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Conditions [ ]
- ---------------------------------------------- --------------------------------
20
BONDING RE-WORK STATION
1. FUNCTIONS: Reworking the problematic pieces from the welding machine.
2. SYSTEM SET: High precision current generator.
3. SYSTEM PARAMETERS:
- --------------------------------------------- ---------------------------------
Height [ ]
- --------------------------------------------- ---------------------------------
Width [ ]
- --------------------------------------------- ---------------------------------
Thickness [ ]
- --------------------------------------------- ---------------------------------
Weight [ ]
- --------------------------------------------- ---------------------------------
Power Supply [ ]
- --------------------------------------------- ---------------------------------
Maximum Electric Current [ ]
- --------------------------------------------- ---------------------------------
Power [ ]
- --------------------------------------------- ---------------------------------
Frequency [ ]
- --------------------------------------------- ---------------------------------
Condensed Air Pressure [ ]
- --------------------------------------------- ---------------------------------
Condensed Air Flow [ ]
- --------------------------------------------- ---------------------------------
Condensed Air Conditions [ ]
- --------------------------------------------- ---------------------------------
21
TACKER
1. FUNCTIONS: Using eight hot pressure heads hot pressing edges of materials
of varied thickness in layers together so that they will not be intricated
against each other.
2. SYSTEM SET: Eight automatic temperature adjustment hot pressure heads,
humidity controller, and time controller.
3. MATERIALS SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
4. PRODUCTION CAPACITY: [ ] cards/hour/station
5. SYSTEM PARAMETERS:
- ---------------------------------------------- --------------------------------
Height [ ]
- ---------------------------------------------- --------------------------------
Width [ ]
- ---------------------------------------------- --------------------------------
Thickness [ ]
- ---------------------------------------------- --------------------------------
Tacking Area [ ]
- ---------------------------------------------- --------------------------------
Power Supply [ ]
- ---------------------------------------------- --------------------------------
Maximum Electric Current [ ]
- ---------------------------------------------- --------------------------------
Power [ ]
- ---------------------------------------------- --------------------------------
Frequency [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Pressure [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Flow [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Conditions [ ]
- ---------------------------------------------- --------------------------------
22
LAMINATING MACHINE
1. FUNCTION: Able to laminate all card producing materials such as PC, PETG or
PVC. The temperature can be adjusted by the PLC controller, with the
capacity to control different segments in different time. Pressure can be
adjusted by the computer, with the capacity to control and show different
segments in different time. With zero pressure control system. The minimum
pressure is [ ]. With automatic protection device that can turn off
the machine in exceptional cases.
2. SYSTEM SET: Cooling system, three separating rooms/stations, power heater,
PLC control and display system, safety protection, over pressure and low
pressure safety protection devices. Six laminating boxes, 12 laminating
pads, and 66 laminating boards.
3. MATERIAL SPECIFICATIONS: Length x Width: [ ]
Scope of Thickness: [ ]
4. PRODUCTION CAPAICTY: [ ] cards/hour/station.
5. SYSTEM PARAMETERS:
- ------------------------------------------ -------------------------------------
Height [ ]
- ------------------------------------------ -------------------------------------
Width [ ]
- ------------------------------------------ -------------------------------------
Thickness [ ]
- ------------------------------------------ -------------------------------------
Weight [ ]
- ------------------------------------------ -------------------------------------
Size of Laminating Board [ ]
- ------------------------------------------ -------------------------------------
Laminating Area [ ]
- ------------------------------------------ -------------------------------------
Power Supply [ ]
- ------------------------------------------ -------------------------------------
Maximum Electric Current [ ]
- ------------------------------------------ -------------------------------------
Power [ ]
- ------------------------------------------ -------------------------------------
Frequency [ ]
- ------------------------------------------ -------------------------------------
Pressure [ ]
- ------------------------------------------ -------------------------------------
Pressure Precision [ ]
- ------------------------------------------ -------------------------------------
Maximum Temperature [ [ ] ]
- ------------------------------------------ -------------------------------------
Temperature Control Precision [ [ ] ]
- ------------------------------------------ -------------------------------------
Heater Board Thickness [ ]
- ------------------------------------------ -------------------------------------
Heater Board Separation Distance1 [ ]
- ------------------------------------------ -------------------------------------
Stabilizing Board Surface Temperature [ [ ] ]
Distribution
- ------------------------------------------ -------------------------------------
Condensed Air Pressure [ ]
- ------------------------------------------ -------------------------------------
Condensed Air Flow [ ]
- ------------------------------------------ -------------------------------------
Condensed Air Conditions [ ]
- ------------------------------------------ -------------------------------------
23
COOLING SYSTEM
1. FUNCTION: Working with the laminating machine to form a closed cooling
system for the provision of cooling effect.
2. SYSTEM SET: Low water level alarm device, constant temperature control
pump.
3. SYSTEM PARAMETERS:
- ----------------------------------------------------- -------------------------
Height [ ]
- ----------------------------------------------------- -------------------------
Width [ ]
- ----------------------------------------------------- -------------------------
Thickness [ ]
- ----------------------------------------------------- -------------------------
Weight [ ]
- ----------------------------------------------------- -------------------------
Power Supply [ ]
- ----------------------------------------------------- -------------------------
Maximum Electric Current [ ]
- ----------------------------------------------------- -------------------------
Power [ ]
- ----------------------------------------------------- -------------------------
Frequency [ ]
- ----------------------------------------------------- -------------------------
Water Flow Volume [ ]
- ----------------------------------------------------- -------------------------
Buffer Tank Volume [ ]
- ----------------------------------------------------- -------------------------
Cooling Water Temperature [ ]
- ----------------------------------------------------- -------------------------
24
CARD CUTTING MACHINE
1. FUNCTION: Automatically completing the location, cutting long pieces and
punching cards. Based on different needs, able to punch white cards or
printed cards. With the ability to correct deviation, placement error
within the scope. With automatic protection device that will turn off the
machine in exceptional cases.
2. SYSTEM SET: Automatic feeding system, touch screen, cutter knife, single
card punching mould, safety protection device.
3. MATERIAL SPECIFICATIONS: Standard Board Size: [ ]
Thickness of Material: [ ]
4. PRODUCTION CAPACITY: [ ] cards/hour/station
5. SYSTEM PARAEMTERS
- ---------------------------------------------- --------------------------------
Height [ ]
- ---------------------------------------------- --------------------------------
Width [ ]
- ---------------------------------------------- --------------------------------
Thickness [ ]
- ---------------------------------------------- --------------------------------
Weight [ ]
- ---------------------------------------------- --------------------------------
Power Supply [ ]
- ---------------------------------------------- --------------------------------
Maximum Electric Current [ ]
- ---------------------------------------------- --------------------------------
Power [ ]
- ---------------------------------------------- --------------------------------
Frequency [ ]
- ---------------------------------------------- --------------------------------
Hole Punch Area [ ]
- ---------------------------------------------- --------------------------------
Card Punching Location Precision [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Pressure [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Flow [ ]
- ---------------------------------------------- --------------------------------
Condensed Air Conditions [ ]
- ---------------------------------------------- --------------------------------
25
APPENDIX 2
SPARE PARTS & WEARING PARTS
26
CARD PUNCHING MACHINE
- -------------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- -------------------------------------------------------------------------------------------------------
1 1 [ ]
- -------------------------------------------------------------------------------------------------------
2 1 [ ]
- -------------------------------------------------------------------------------------------------------
3 1 [ ]
- -------------------------------------------------------------------------------------------------------
4 1 [ ]
- -------------------------------------------------------------------------------------------------------
5 1 [ ]
- -------------------------------------------------------------------------------------------------------
6 1 [ ]
- -------------------------------------------------------------------------------------------------------
7 1 [ ]
- -------------------------------------------------------------------------------------------------------
8 1 [ ]
- -------------------------------------------------------------------------------------------------------
9 1 [ ]
- -------------------------------------------------------------------------------------------------------
10 2 [ ]
- -------------------------------------------------------------------------------------------------------
11 1 [ ]
- -------------------------------------------------------------------------------------------------------
27
MODULE PLACEMENT MACHINE
- -------------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- -------------------------------------------------------------------------------------------------------
1 24 [ ]
- -------------------------------------------------------------------------------------------------------
2 30 [ ]
- -------------------------------------------------------------------------------------------------------
3 3 [ ]
- -------------------------------------------------------------------------------------------------------
4 3 [ ]
- -------------------------------------------------------------------------------------------------------
5 18 [ ]
- -------------------------------------------------------------------------------------------------------
6 3 [ ]
- -------------------------------------------------------------------------------------------------------
7 3 [ ]
- -------------------------------------------------------------------------------------------------------
8 3 [ ]
- -------------------------------------------------------------------------------------------------------
9 12 [ ]
- -------------------------------------------------------------------------------------------------------
10 3 [ ]
- -------------------------------------------------------------------------------------------------------
11 3 [ ]
- -------------------------------------------------------------------------------------------------------
12 3 [ ]
- -------------------------------------------------------------------------------------------------------
13 3 [
)]
- -------------------------------------------------------------------------------------------------------
14 3 [
]
- -------------------------------------------------------------------------------------------------------
15 9 [ ]
- -------------------------------------------------------------------------------------------------------
16 3 [ ]
- -------------------------------------------------------------------------------------------------------
17 9 [ ]
- -------------------------------------------------------------------------------------------------------
18 3 [ ]
- -------------------------------------------------------------------------------------------------------
19 3 [ ]
- -------------------------------------------------------------------------------------------------------
20 3 [ ]
- -------------------------------------------------------------------------------------------------------
21 3 [ ]
- -------------------------------------------------------------------------------------------------------
22 3 [ ]
- -------------------------------------------------------------------------------------------------------
23 3 [ ]
- -------------------------------------------------------------------------------------------------------
24 3 [ ]
- -------------------------------------------------------------------------------------------------------
25 3 [ ]
- -------------------------------------------------------------------------------------------------------
26 3 [ ]
- -------------------------------------------------------------------------------------------------------
27 3 [ ]
- -------------------------------------------------------------------------------------------------------
28 60 [ ]
- -------------------------------------------------------------------------------------------------------
28
WIRE IMPLANTING MACHINE
- -------------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- -------------------------------------------------------------------------------------------------------
1 12 [ ]
- -------------------------------------------------------------------------------------------------------
2 20 [ ]
- -------------------------------------------------------------------------------------------------------
3 2 [ ]
- -------------------------------------------------------------------------------------------------------
4 2 [ ]
- -------------------------------------------------------------------------------------------------------
5 2 [ ]
- -------------------------------------------------------------------------------------------------------
6 2 [ ]
- -------------------------------------------------------------------------------------------------------
7 2 [ ]
- -------------------------------------------------------------------------------------------------------
8 2 [ ]
- -------------------------------------------------------------------------------------------------------
9 6 [ ]
- -------------------------------------------------------------------------------------------------------
10 2 [ ]
- -------------------------------------------------------------------------------------------------------
11 2 [ ]
- -------------------------------------------------------------------------------------------------------
12 60 [ ]
- -------------------------------------------------------------------------------------------------------
13 36 [ ]
- -------------------------------------------------------------------------------------------------------
14 2 [ ]
- -------------------------------------------------------------------------------------------------------
15 6 [ ]
- -------------------------------------------------------------------------------------------------------
16 4 [ ]
- -------------------------------------------------------------------------------------------------------
17 2 [ ]
- -------------------------------------------------------------------------------------------------------
18 4 [ ]
- -------------------------------------------------------------------------------------------------------
19 4 [ ]
- -------------------------------------------------------------------------------------------------------
20 2 [ ]
- -------------------------------------------------------------------------------------------------------
21 2 [ ]
- -------------------------------------------------------------------------------------------------------
22 2 [ ]
- -------------------------------------------------------------------------------------------------------
23 2 [ ]
- -------------------------------------------------------------------------------------------------------
24 16 [ ]
- -------------------------------------------------------------------------------------------------------
29
WELDING AND REW0RKING MACHINE
- -------------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- -------------------------------------------------------------------------------------------------------
1 24 [ ]
- -------------------------------------------------------------------------------------------------------
2 30 [ ]
- -------------------------------------------------------------------------------------------------------
3 3 [ ]
- -------------------------------------------------------------------------------------------------------
4 3 [ ]
- -------------------------------------------------------------------------------------------------------
5 18 [ ]
- -------------------------------------------------------------------------------------------------------
6 3 [ ]
- -------------------------------------------------------------------------------------------------------
7 3 [ ]
- -------------------------------------------------------------------------------------------------------
8 3 [ ]
- -------------------------------------------------------------------------------------------------------
9 12 [ ]
- -------------------------------------------------------------------------------------------------------
10 3 [ ]
- -------------------------------------------------------------------------------------------------------
11 3 [ ]
- -------------------------------------------------------------------------------------------------------
12 3 [ ]
- -------------------------------------------------------------------------------------------------------
13 18 [ ]
- -------------------------------------------------------------------------------------------------------
14 9 [ ]
- -------------------------------------------------------------------------------------------------------
15 3 [ ]
- -------------------------------------------------------------------------------------------------------
16 3 [ ]
- -------------------------------------------------------------------------------------------------------
17 180 [ ]
- -------------------------------------------------------------------------------------------------------
18 18 [ ]
- -------------------------------------------------------------------------------------------------------
19 3 [ ]
- -------------------------------------------------------------------------------------------------------
20 3 [ ]
- -------------------------------------------------------------------------------------------------------
21 300 [ ]
- -------------------------------------------------------------------------------------------------------
30
LAMINATING MACHINE AND COOLING SYSTEM
- -------------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- -------------------------------------------------------------------------------------------------------
1 132 [ ]
- -------------------------------------------------------------------------------------------------------
2 24 [ ]
- -------------------------------------------------------------------------------------------------------
3 12 [ ]
- -------------------------------------------------------------------------------------------------------
4 4 [ ]
- -------------------------------------------------------------------------------------------------------
5 60 [ ]
- -------------------------------------------------------------------------------------------------------
6 36 [ ]
- -------------------------------------------------------------------------------------------------------
7 4 [ ]
- -------------------------------------------------------------------------------------------------------
8 4 [ ]
- -------------------------------------------------------------------------------------------------------
9 4 [ ]
- -------------------------------------------------------------------------------------------------------
10 12 [ ]
- -------------------------------------------------------------------------------------------------------
11 20 [ ]
- -------------------------------------------------------------------------------------------------------
12 40 [ ]
- -------------------------------------------------------------------------------------------------------
13 40 [ ]
- -------------------------------------------------------------------------------------------------------
14 20 [ ]
- -------------------------------------------------------------------------------------------------------
15 4 [ ]
- -------------------------------------------------------------------------------------------------------
16 4 [ ]
- -------------------------------------------------------------------------------------------------------
17 8 [ ]
- -------------------------------------------------------------------------------------------------------
18 4 [ ]
- -------------------------------------------------------------------------------------------------------
19 16 [ ]
- -------------------------------------------------------------------------------------------------------
20 4 [ ]
- -------------------------------------------------------------------------------------------------------
21 40 m [ ]
- -------------------------------------------------------------------------------------------------------
22 4 [ ]
- -------------------------------------------------------------------------------------------------------
23 4 [ ]
- -------------------------------------------------------------------------------------------------------
31
CARD PUNCHING MACHINE
- -------------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- -------------------------------------------------------------------------------------------------------
1 1 [ ]
- -------------------------------------------------------------------------------------------------------
2 1 [ ]
- -------------------------------------------------------------------------------------------------------
3 1 [ ]
- -------------------------------------------------------------------------------------------------------
4 1 [ ]
- -------------------------------------------------------------------------------------------------------
5 3 [ ]
- -------------------------------------------------------------------------------------------------------
6 1 set [ ]
- -------------------------------------------------------------------------------------------------------
7 1 set [ ]
- -------------------------------------------------------------------------------------------------------
8 5 m [ ]
- -------------------------------------------------------------------------------------------------------
9 1 set [ ]
- -------------------------------------------------------------------------------------------------------
10 1 set [ ]
- -------------------------------------------------------------------------------------------------------
11 1 set [ ]
- -------------------------------------------------------------------------------------------------------
12 1 [ ]
- -------------------------------------------------------------------------------------------------------
13 1 [ ]
- -------------------------------------------------------------------------------------------------------
14 1 [ ]
- -------------------------------------------------------------------------------------------------------
15 1 [ ]
- -------------------------------------------------------------------------------------------------------
16 1 set [ ]
- -------------------------------------------------------------------------------------------------------
32
APPENDIX 3
TECHNICAL DOCUMENTATION LIST
33
Accompanied documentations include:
1. Equipment Approval Certificate and Quality Certificate
2. Operation, Repair, Usage and Maintenance Manuals of Each Equipment
(including laboratory instruments)
3. Assembly Illustrations of Equipment
4. Theoretical Illustration and Wiring Illustration of the Electric System
5. Illustrations of Wearing Parts of the Equipment
6. Backup copy of the accompanied software
7. Backup copy of PLC Procedures
34
APPENDIX 4
TOOL LIST
35
- -------------------- --------------------------------- ----------------
NO. NAME OF TOOL QTY.
- -------------------- --------------------------------- ----------------
1. [ ] 1
- -------------------- --------------------------------- ----------------
2. [ ] 1 set
- -------------------- --------------------------------- ----------------
3. [ ] 1
- -------------------- --------------------------------- ----------------
4. [ ] 1 set
- -------------------- --------------------------------- ----------------
5. [ ] 1
- -------------------- --------------------------------- ----------------
6. [ ] 1
- -------------------- --------------------------------- ----------------
7. [ ] 1 set
- -------------------- --------------------------------- ----------------
8. [ ] 1 set
- -------------------- --------------------------------- ----------------
9. [ ] 1 set
- -------------------- --------------------------------- ----------------
10. [ ] 1
- -------------------- --------------------------------- ----------------
11. [ ] 1 set
- -------------------- --------------------------------- ----------------
12. [ ] 1
- -------------------- --------------------------------- ----------------
13. [ ] 1
- -------------------- --------------------------------- ----------------
14. [ ] 6
- -------------------- --------------------------------- ----------------
15. [ ] 1 set
- -------------------- --------------------------------- ----------------
16. [ ] 1
- -------------------- --------------------------------- ----------------
17. [ ] 39
- -------------------- --------------------------------- ----------------
18. [ ] 2
- -------------------- --------------------------------- ----------------
19. [ ] 10
- -------------------- --------------------------------- ----------------
20. [ ] 7
- -------------------- --------------------------------- ----------------
21. [ ] 5
- -------------------- --------------------------------- ----------------
22. [ ] 1
- -------------------- --------------------------------- ----------------
23. [ ] 20
- -------------------- --------------------------------- ----------------
24. [ ] 6
- -------------------- --------------------------------- ----------------
25. [ ] 1
- -------------------- --------------------------------- ----------------
26. [ ] 1
- -------------------- --------------------------------- ----------------
27. [ ] 3
- -------------------- --------------------------------- ----------------
28. [ ] 3
- -------------------- --------------------------------- ----------------
29. [ ] 3
- -------------------- --------------------------------- ----------------
30. [ ] 3
- -------------------- --------------------------------- ----------------
31. [ ] 1
- -------------------- --------------------------------- ----------------
32. [ ] 1
- -------------------- --------------------------------- ----------------
33. [ ] 6
- -------------------- --------------------------------- ----------------
34. [ ] 1
- -------------------- --------------------------------- ----------------
35. [ ] 2
- -------------------- --------------------------------- ----------------
36. [ ] 1
- -------------------- --------------------------------- ----------------
37. [ ] 2
- -------------------- --------------------------------- ----------------
38. [ ] 1
- -------------------- --------------------------------- ----------------
39. [ ] 1
- -------------------- --------------------------------- ----------------
40. [ ] 1
- -------------------- --------------------------------- ----------------
41. [ ] 1
- -------------------- --------------------------------- ----------------
36
Technical Agreement Appendix 5
EQUIPMENT ACCEPTANCE DETAILS
37
I. GENERAL PRINCIPLES
Materials used during the Acceptance shall be [ ], which can demonstrate [ ]
and [ ] Moulds used shall be moulds by [ ]. Production rate
shall be based on arrangement of [ ] cards. Acceptance shall be based on
[ ]
1.1 According to the Technical Agreement Appendix 1 "Equipment Functions
and Technical Specifications", a test run of the equipment and its
production capacity, and examination of the production acceptance
rate shall be performed. If necessary, Party A shall, based on the
Technical Agreement Appendix 1 and the ISO and IEC standards, and the
actual demands of the project, request that additional test runs be
performed.
1.2 If necessary, Party A shall, at the time of preliminary inspection
and acceptance of the equipment upon delivery, request that Party B
perform a second inspection according to the specifications of the
"Equipment Inspection Details and Results".
1.3 Equipment items to be inspected shall include:
o Information and material accompanied with the equipment
o Appearance
o Equipment functions
o Equipment system
1.4 Inspection shall be performed in two stages:
1.4.1 Preliminary inspection upon delivery of equipment
1.4.2 Inspection and acceptance of the equipment
2. METHODS AND PROCEDURES OF INSPECTION AND ACCEPTANCE
2.1 Preliminary Inspection of the Equipment To be performed in the shop
of Party B. Items to be inspected include:
o Equipment functions
o Equipment system
2.1.1 Inspection of Equipment Functions
Hole Punch Machine
38
a. Consistency of the size and the location of the punch hole
b. Any adhesive debris found in the hole punch area
Pick and Place with Module
a. Function of identifying and removing the unqualified modules
b. Smoothness of the hole punch and pick and place functions. Any
blocking situations due to halting of these functions
c. Function of adjusting the placement of the module
d. Smoothness of auto feeding and receiving pieces
e. Trouble shooting alarming system
f. Proper operation of the equipment display system
Wire Implanting Machine
a. Whether the ultrasonic rate meets the standard of [ ] times/
round
b. Adjustment of the position, size, forms and distance of the wire coil
c. Inspection and record of the frequency of wire breaking during
operation
d. Proper operation of the monitor system
e. Smoothness of auto feeding and receiving pieces
f. Trouble shooting alarming system
Welder
a. Inspect by samples, whether the pulling force meeting the standards
[
]
b. Whether the reader is able to check the success of the welding job
c. When welding is not successful, whether the bad card marker is able
to mark on the corresponding card
d. Function of auto polishing welded pieces
e. Proper operation of the monitor system
f. Adjustment and display functions of the power generator
g. Smoothness of auto feeding and receiving pieces
h. Automatic indication of replacement of welded pieces
i. Proper operation of the equipment display system
j. Trouble shooting alarming system
Laminator
a. Temperature control precision, when between [ ], should
be less
39
than [ ]; when between [ ], should be less
than [ ]
b. Pressure control precision [ ]
c. PLC device, and functions of adjusting the parameters of pressure,
temperature, etc.
d. High temperature up to [ ]
e. Whether machine will be automatically shut off when operation is not
in compliance with rules
f. Proper operation of the display system of the equipment
g. Trouble shooting the alarming system
Card Punching Machine
a. Trouble shooting any layered pieces during the auto feeding process
b. Smoothness of the punch card edge (Based on the ISO7810 standards, PC
material excluded)
c. Computation function
d. Positioning precision [ ]
e. Trouble shooting alarming system
f. Proper operation of display system of the equipment
2.1.2 Preliminary Inspection of the Equipment System
The stability, production capacity and production acceptance rate of
the equipment shall be tested. Fake modules shall be used for steady
operation for [ ], and real modules shall be used for [
]. Since the equipment includes separate machines, actual
operation can be performed units by units.
The [ ] operation using the fake modules and the [ ]
operation using the real modules must be run continuously. The time
spent in adjusting the software and technical parameters, and fixing
the hardware problems during the test run period must be included in
the operation time. Adjustment contents and frequency must be
recorded. All products (excluding test products during the repair
time) shall be included in the total production number. The one-time
acceptance rate of the pick and place machine, wire implanting
machine and the welding machine shall be at 98% or above. Each
equipment shall produce 2500 cards/hour. The total acceptance rate of
the final product shall be over 97%.
a. Inspect the Inspection Certificate (including inspection details and
results) and Quality Certificate provided by Party B.
40
b. Acceptance Rate of Production
The following items and indices shall be used to inspect the
acceptance rate of the products.
(1) N1 Welding Acceptance Rate
Multimeter shall be used to inspect the fake module card (those that
are rejected must be specified with reasons). Reader shall be used
to test the real module card. The computing acceptance rate shall
be N1.
(2) N2 Antenna Registration Acceptance Rate
The index of Direction X the direction of the long edge of the card)
shall be [ ]; of Direction Y, [ ]. Inspect by
sample, at [ ], of the hole punch cards. The computing acceptance
rate shall be N2x and N2y.
(3) N3 Punch Card Acceptance Rate (the inspected surface shall be the
punch marked surface) That is the variation of the card's printed
message center and the card geometry center. The index of Direction X
(the direction of the long edge of the card) shall be
[ ]; of Direction Y, [ ]. Inspect by sample,
at [ ], of the hole punch cards. The computing acceptance rate
shall be N3x and N3y.
(4) N4 Punch Card Inclination Acceptance Rate
The index shall be whether the long edge of the card is parallel to
the level of the printed message. The level should extend to both
ends. The distance of the two ending points toward the respective
card edges shall be less than [ ]. Inspect card by sampling,
at [ ]. The computing acceptance rate shall be N4.
(5) N5 Card Tilting Acceptance Rate
The index shall be [ ] (excluding thickness of card, see
ISO 7810). Inspect the punch card by samples, at [ ]. The
computing acceptance rate shall be N5.
(6) N6 Card Stripping Strength Acceptance Rate
The index shall be [ ]. Inspect [ ] pieces of punch card.
The computing acceptance rate shall be N6.
Total Acceptance Rate: N1 X N2 [u]x X N2[u]y X N3[u]x X N3[u]y
X N4 X N5 X N6 >= 97%.
2.3 Inspection and Acceptance of Equipment
To be performed at the shop of Party A. Items to be inspected
include:
o Information and material accompanied with the equipment
o Appearance
o Equipment functions
o Equipment system
41
2.3.1 INSPECTION OF THE INFORMATION AND MATERIALS
ACCOMPANIED WITH THE QUIPMENT
Verify with Appendix I of the Agreement, "List of Production Line
Equipment and Laboratory Devices"
Verify with Appendix 2 of the Agreement, "Equipment Parts and
Consumption Parts"
Verify with Appendix 3 of the Agreement, "List of Technical
Documents"
Verify with Appendix 4 of the Agreement, "List of Maintenance Tools"
Verify with the approved raw materials provided by Party B for
54-hour test run operation use.
2.3.2 INSPECTION OF APPEARANCE
Inspect the frame and the door. The structure of the equipment shall
be solid and the door switches shall be acute.
Inspect whether the equipment has been bumped or damaged. The cover
of the cover shall be in perfect condition. The paint of the cover
shall be bright and perfect. The plated surface of the conveyance
section of the equipment shall be polished, bright, with no defects
or rusty spots.
2.3.3 INSPECTION AND ACCEPTANCE OF THE EQUIPMENT FUNCTION
Inspect the Inspection Certificate (including inspection details and
results) and Quality Certificate provided by Party B.
Inspect the equipment functions based on 2.1.1.
2.3.4 INSPECTION AND ACCEPTANCE OF THE EQUIPMENT SYSTEM
Use fake modules for steady operation for six days, eight hours a
day. Use real modules on the 7th day for six hours. Since the
equipment includes separate machines, actual operation can be
performed units by units.
During the test run period, the time spent in adjusting the software
and technical parameters, and fixing the hardware problems period
shall be included in the operation time. Adjustment contents and
frequency must be recorded. Between intervals during the test run
period, for example, at noon or in the evening when the machine is
turned off, no adjustment of software or repair of hardware shall be
done. All products (excluding test products
42
during the repair time) shall be included in the total production
number. The one-time acceptance rate of the pick and place machine,
wire implanting machine and the welding machine shall be at 98% or
above. The total acceptance rate of the final product shall be over
97%.
a. Computation of Production Capacity
After test running 54 hours, the computed average production capacity
shall meet the standard of 2500 cards/hour.
b. Production Acceptance Rate
Items and indices same as 2.1.2
c. Schedules:
1st to 6th day:
a.m. - using fake modules, operate the machine continuously for
four hours
p.m. - using fake modules, operate the machine continuously for
four hours
The 7th day:
Using the real modules, - using real module, operate the machine
continuously for six hours
43