Exhibit 10.36
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 PURCHASE AGREEMENT
CHAPTER I - GENERAL PRINCIPLES
1.1 This contract is made between the Shangdong Lu Neng Huang Tai Industrial
Group Limited (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 This agreement is made in accordance to the pertinent Chinese laws and
rules and regulations, and based on the principle of mutual benefits, and
shall become valid and be executed with the "Agreement of Technical
Service and Patent Technology Licensing" at the same time.
1.3 This agreement contains the following attachments:
Attachment I: List of Equipment and Technical Specifications
Attachment II: List of Accessories
Attachment III: List of Technical Information
Attachment IV: List of Maintenance Tools
CHAPTER II - PARTIES
2.1 Party A: The Shandong Lu Neng Huang Tai Industrial Group Limited (on
behalf of the Shandong Lu Neng China Card Smart card Company Limited
[tentative name])
Legal Address: 230 Xin Jin Qiao Road, Jin Qiao Export Processing Region,
Pu Dong Xin District, Shanghai, T17-5-1
Telephone: (86) 21-68865658
Fax: (86) 21-68865258
2.2. Party B: American Pacific Aviation & Technology Corp.
Legal Address 1 Sansome Street, 19th Street
San Francisco, CA 94104, USA
Telephone: (415) 951-1078
Fax: (415) 951-1046
10
CHAPTER III - NAME, SPECIFICATIONS, QUANTITY, PRICE AND DELIVERY OF EQUIPMENT
3.1 Party B shall provide Party A with a complete brand new, full set and
state-of-art equipment and accessories for the production of contactless
smart cards. Said equipment shall be able to produce 2500 pieces of smart
cards per hour.
3.2 The total cost of the agreement shall be US$[ ] US
Dollars), based on the CIF Shanghai cost, which shall include the
equipment, moulds, technical service, patent technology licensing, and
accessories.
3.3 Before packaging said production line for shipment, Party A shall send
three technical staff to come to the United States to conduct preliminary
inspection of the equipment. Party B shall pay for the expense of the
two-way air tickets, and provide lodging and transportation in the United
States for the visiting staff of Party A. Staff of Party A will stay in
the United States for two weeks.
3.4 Delivery Date of the Equipment: March 1, 2002 to April 30, 2002.
CHAPTER IV - PAYMENT
4.1 Within 30 working days upon the effect of this agreement, Party B shall
issue a guarantee letter at [ %] of the total cost, that is, US$[
] US Dollars) to Party A. Party A shall
make payment to Party B by means of T/T.
4.2 Party A shall issue a Letter of Credit at [ %] of the total amount, that
is, US$[ ] US Dollars) to Party B,
two months before the delivery of the equipment.
4.3 Upon approval of preliminary inspection and before packaging for shipment,
Party B shall, by presenting the signed inspection approval by Party A,
the bill of lading, invoice, and quality warranty, negotiate for payment
by Party A of the Letter of Credit mentioned in 4.2.
11
4.4 Upon completion of test run and acceptance and one year quality warranty,
Party A shall pay the balance of [ %] of the agreement amount, that is,
US$[ ] Dollars) to Party B by T/T.
CHAPTER V - SPECIFICATIONS AND TECHNICAL CONDITIONS OF THE EQUIPMENT
5.1 The complete equipment supplied by Party B must be brand new, full set and
shall match the details of Appendix I - "List of Equipment 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, running at eight
consecutive hours shall be 2500 pieces/hour
5.2.3 Product Specification: meeting the ISO/Mifare standards
5.2.4 Product Quality: The strength and durability of the
mechanically tested card shall meet the ISO standards, and of
the electrically tested card shall meet the IEC standards
5.2.5 Acceptance rate of the consecutive processed product shall be
97% or above
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 Attachment 4)
5.3.2 Wearing parts of equipment (enough for one year normal
consumption) (See Attachment 2)
5.3.3 Approved raw materials needed for production test run (Fake
chips that do not have the read and write functions will be
used for 48 hours, and real chips will be used for 8 hours
during the 56-hour test run period) (See Attachment 2).
5.4 Party B shall deliver the following technical documents when packaging and
shipping the equipment (See Attachment 3):
5.4.1 The quality approval certificate and the operation manual of
the equipment (including contents of equipment structure,
performance,
12
installment and test run, operation, and repairs and
maintenance).
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 list of accessories.
5.5 Upon effect of the contract, Party B shall, within 30 working days, mail a
technical layout drawing of production area and power supply information
to Party A for the purposes of technical design and equipment acquisition
in China.
5.6 Party B shall, three 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+-10 volts for the transformer, and 50+-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 (with appropriate accommodation by Party A) after the arrival of the
equipment in the shop. Party A shall provide the necessary staff, space,
equipment to assist and accommodate the project.
6.2 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 pertinent requirements
specified. After approval of test run results by both Parties A and B, the
receipt and acceptance
13
paper shall be signed.
6.3 The process of accepting of the equipment, in addition to test run, shall
also include verification of the required documentation, the quality and
quantity of raw material accompanied with the equipment, and the
conditions of the wearing part.
6.4 During the test run period, if there is any breakdown or 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 until the
acceptance standards are met (Each equipment shall be able to continue
working at least six hours without any breakdown).
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 making delivery to Party A, 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 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. In
14
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 repairs or
replacement and shall assume all pertinent cost of damages. In the event
that any damage is caused by Party A, Party B shall repair or replace the
damaged item as soon as possible, and the cost of which 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 request compensation, or
to return the equipment and request compensation based on the provisions
of Chapter IX.
7.6 The warranty period of the equipment shall be 12 months, commencing the
date of acceptance of test run. 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. In the event the breakdown or
damages of parts or accessories are caused by Party A, Party B shall
provide timely repair and part service and the cost of which shall be
assumed by Party A. Regardless of the reasons, Party B shall, within five
days upon receipt of the notice, shall be present on site or provide
resolution.
CHAPTER VIII - PACKAGING AND SHIPMENT
8.1 When packaging, Party B shall use a new and solid wood container, which
meets the requirements of import quarantine, 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 during the Custom process.
15
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 three 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. Bill of Lading, and invoice, with specification of the
name and the quantity of the merchandise;
B. Packaging Slips (2 copies), which specify 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, and the certificate of the
original manufacturing place
E. Insurance policy
CHAPTER IX - COMPENSATION AND PENALTY
9.1 In the event Party A, 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.
16
9.3 In the event Party B fails to respond within 30 days after Party A makes
its claim 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, and shall return the amount paid by
Party A.
9.5 Without written agreement of Party B, Party A cannot transfer the patent
technology and licensing pertinent to the equipment provided by Party B to
any third party. In the event Party A allows any third party to use said
technology or to duplicate the equipment of Party B at its discretion,
Party A shall pay Party B 5% default penalty in the amount of US$[
] US Dollars). Payment of this amount by Party A
does not waive the right of Party B making claim against any third party
or Party A for violation of rights. In the event disclosure of
confidential information is caused by staff who has left the company, said
individual shall be liable to said disclosure.
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.
17
CHAPTER XI - ARBITRATION
11.1 In the event there arises any dispute during the execution of this
agreement or 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 by both Parties
A and B.
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 contains four original copies, with each party holding two
copies, and six duplicates, with each party holding three copies. All
copies bear equal validity.
PARTY A:
Shandong Lu Neng Huang Tai Industial Group (on behalf of the Shanghai Lu Neng
18
China Card Smartcard Company Limited [tentative name])
Company Representative: (signature)
PARTY B:
The American Pacific Aviation & Technology Corporation
Company Representative: (signature)
DATE SIGNED: September 6, 2001, at Pu Dong, Shanghai
19
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.
ATTACHMENT 1: List of Equipment and Technical Specifications
This agreement shall include the following production equipment and laboratory
instruments:
- -------------------------------------------------------------------------------------------------------
Serial Quantity Name Model Price
No. of Equipment No. (in US$10,000)
- -------------------------------------------------------------------------------------------------------
Production 1 1 Hole Punch Machine CICC-001 [ ]
Equipment
------------------------------------------------------------------------------------------
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 3 Lamination System CICC-007 [ ]
------------------------------------------------------------------------------------------
8 3 Cooling System CICC-008 [ ]
------------------------------------------------------------------------------------------
9 1 Card Punching Machine CICC-009 [ ]
- -------------------------------------------------------------------------------------------------------
Laboratory 10 1 Flexion & Torsion Test System OASYS [ ]
Instruments
------------------------------------------------------------------------------------------
11 1 Pull Tester MP5/230 [ ]
------------------------------------------------------------------------------------------
12 1 Frequency Analyzer DEME-3010, [ ]
DEWE-3010
- -------------------------------------------------------------------------------------------------------
13 2 Microscope System [ ]
- -------------------------------------------------------------------------------------------------------
Parts and others accompanied with the equipment (see list for details) [ ]
- -------------------------------------------------------------------------------------------------------
Backup parts for one year (to be delivered in March-April 2003) [ ]
- -------------------------------------------------------------------------------------------------------
TOTAL [ ]
- -------------------------------------------------------------------------------------------------------
22
HOLE PUNCH MACHINE
FUNCTION: Working with varied moulds, able to hole punch the [ ] PC,
PVC and PETG 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.
SYSTEM SET: Three high precision moulds (to hole punch [ ]
materials and to position the hole location), safety protection device, hole
punch time controller.
MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
PRODUCTION CAPACITY: [ ] cards/hour
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 [ ]
- --------------------------------------------------------------------------------------
23
PICK AND PLACE
FUNCTION: Pick and place the moulds into corresponding holes of the PC, PVC, 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.
SYSTEM SET: Chip punched moulds, chip recognition sensor, high precision gluing
system, Adept robot, P4 computer, LCD Monitor, interchangable drawer, safety
protection device.
MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
CONSUMPTION MATERIALS: Adhesives, [ ] cards/tube
PRODUCTION CAPACITY: [ ] cards/hour/set (based on three rows of the module
tapes)
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 [ ]
- --------------------------------------------------------------------------------------
24
WIRE IMPLANTING MACHINE
FUNCTIONS: Said machine uses the [ ]
directional movement [ ] ultrasound wire implanting head to
implant the enamel-insulated wire accurately into the PC, PVC, PET and PETG 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.
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.
MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
PRODUCTION CAPACITY: [ ] cards/hour/set.
CONSUMPTION MATERIALS: Ultrasound head: [ ] cards/head
Wire: [ ] cards/spool
SYSTEM PARAEMTERS:
- --------------------------------------------------------------------------------------
Width [ ]
- --------------------------------------------------------------------------------------
Thickness [ ]
- --------------------------------------------------------------------------------------
Height [ ]
- --------------------------------------------------------------------------------------
Weight [ ]
- --------------------------------------------------------------------------------------
Implanting Area [ ]
- --------------------------------------------------------------------------------------
Power Supply [ ]
- --------------------------------------------------------------------------------------
Maximum Electric Current [ ]
- --------------------------------------------------------------------------------------
Power [ ]
- --------------------------------------------------------------------------------------
Frequency [ ]
- --------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
- --------------------------------------------------------------------------------------
Condensed Air Flow [ ]
- --------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
- --------------------------------------------------------------------------------------
25
WELDING MACHINE
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 100
grams, 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.
SYSTEM SET: High precision electric current generator, Adept robot and its
Vision System, hydraulic (illegible) system, P4 Computer, LCD Monitor,
interchangable drawer, safety protection device.
MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
CONSUMPTION MATERIALS: Thermode: [ ] cards/piece
PRODUCTION CAPACITY: [ ] cards/hour/station
SYSTEM PARAMETERS:
- --------------------------------------------------------------------------------------
Width [ ]
- --------------------------------------------------------------------------------------
Thickness [ ]
- --------------------------------------------------------------------------------------
Height [ ]
- --------------------------------------------------------------------------------------
Weight [ ]
- --------------------------------------------------------------------------------------
Welding Area [ ]
- --------------------------------------------------------------------------------------
Power Supply [ ]
- --------------------------------------------------------------------------------------
Maximum Electric Current [ ]
- --------------------------------------------------------------------------------------
Power [ ]
- --------------------------------------------------------------------------------------
Frequency [ ]
- --------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
- --------------------------------------------------------------------------------------
Condensed Air Flow [ ]
- --------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
- --------------------------------------------------------------------------------------
26
BONDING RE-WORK STATION
FUNCTIONS: Reworking the problematic pieces from the welding machine.
SYSTEM SET: High precision current generator.
SYSTEM PARAMETERS:
- --------------------------------------------------------------------------------------
Width [ ]
- --------------------------------------------------------------------------------------
Thickness [ ]
- --------------------------------------------------------------------------------------
Height [ ]
- --------------------------------------------------------------------------------------
Weight [ ]
- --------------------------------------------------------------------------------------
Power Supply [ ]
- --------------------------------------------------------------------------------------
Maximum Electric Current [ ]
- --------------------------------------------------------------------------------------
Power [ ]
- --------------------------------------------------------------------------------------
Frequency [ ]
- --------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
- --------------------------------------------------------------------------------------
Condensed Air Flow [ ]
- --------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
- --------------------------------------------------------------------------------------
27
TACKER
FUNCTIONS: Using eight hot pressure heads hot pressing edges of materials of
varied thickness in layers together so that they will not be intricate against
each other.
SYSTEM SET: Eight automatic temperature adjustment hot pressure heads, humidity
controller, and time controller.
MATERIALS SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
PRODUCTION CAPACITY: [ ] cards/hour/station
SYSTEM PARAMETERS:
- --------------------------------------------------------------------------------------
Width [ ]
- --------------------------------------------------------------------------------------
Thickness [ ]
- --------------------------------------------------------------------------------------
Height [ ]
- --------------------------------------------------------------------------------------
Tacking Area [ ]
- --------------------------------------------------------------------------------------
Power Supply [ ]
- --------------------------------------------------------------------------------------
Maximum Electric Current [ ]
- --------------------------------------------------------------------------------------
Power [ ]
- --------------------------------------------------------------------------------------
Frequency [ ]
- --------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
- --------------------------------------------------------------------------------------
Condensed Air Flow [ ]
- --------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
- --------------------------------------------------------------------------------------
28
LAMINATING MACHINE
FUNCTION: Able to laminate all card producing materials such as PC, PVC, PET and
PETG. The temperature can be adjusted by the PLC controller, which can control
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.
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. With six laminating boxes, 12 laminating pads, and 66
laminating boards.
MATERIAL SPECIFICATIONS: Length x Width: [ ]
Scope of Thickness: [ ]
PRODUCTION CAPAICTY: [ ] cards/hour/station.
SYSTEM PARAMETERS:
- ------------------------------------------------------------------------------------------
Width [ ]
- ------------------------------------------------------------------------------------------
Thickness [ ]
- ------------------------------------------------------------------------------------------
Height [ ]
- ------------------------------------------------------------------------------------------
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 [ ]
- ------------------------------------------------------------------------------------------
29
COOLING SYSTEM
FUNCTION: Working with the laminating machine to form a closed cooling system
for the provision of cooling effect.
SYSTEM SET: Low water level alarm device, constant temperature control pump.
SYSTEM PARAMETERS:
- --------------------------------------------------------------------------------------
Width [ ]
- --------------------------------------------------------------------------------------
Thickness [ ]
- --------------------------------------------------------------------------------------
Height [ ]
- --------------------------------------------------------------------------------------
Weight [ ]
- --------------------------------------------------------------------------------------
Power Supply [ ]
- --------------------------------------------------------------------------------------
Maximum Electric Current [ ]
- --------------------------------------------------------------------------------------
Power [ ]
- --------------------------------------------------------------------------------------
Frequency [ ]
- --------------------------------------------------------------------------------------
Water Flow Volume [ ]
- --------------------------------------------------------------------------------------
Buffer Tank Volume [ ]
- --------------------------------------------------------------------------------------
Cooling Water Temperature [ ]
- --------------------------------------------------------------------------------------
30
CARD CUTTING MACHINE
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.
SYSTEM SET: Automatic feeding system, touch screen, cutter knife, single card
punching mould, safety protection device.
MATERIAL SPECIFICATIONS: Standard Board Size: [ ]
Thickness of Material: [ ]
PRODUCTION CAPACITY: [ ] cards/hour/station
SYSTEM PARAEMTERS
- --------------------------------------------------------------------------------------
Width [ ]
- --------------------------------------------------------------------------------------
Thickness [ ]
- --------------------------------------------------------------------------------------
Height [ ]
- --------------------------------------------------------------------------------------
Weight [ ]
- --------------------------------------------------------------------------------------
Power Supply [ ]
- --------------------------------------------------------------------------------------
Maximum Electric Current [ ]
- --------------------------------------------------------------------------------------
Power [ ]
- --------------------------------------------------------------------------------------
Frequency [ ]
- --------------------------------------------------------------------------------------
Hole Punch Area [ ]
- --------------------------------------------------------------------------------------
Card Punching Location Precision [ ]
- --------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
- --------------------------------------------------------------------------------------
Condensed Air Flow [ ]
- --------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
- --------------------------------------------------------------------------------------
31
ATTACHMENT 2: LIST OF PARTS
CARD PUNCHING MACHINE
- ---------------------------------------------------------------------------------------------------------
Price
--------------------
NO. QTY. Name Unit Total
- ---------------------------------------------------------------------------------------------------------
1 1 [ ]
- ---------------------------------------------------------------------------------------------------------
2 1 [ ]
- ---------------------------------------------------------------------------------------------------------
3 1 [ ]
- ---------------------------------------------------------------------------------------------------------
4 1 [ ]
- ---------------------------------------------------------------------------------------------------------
5 1 [ ]
- ---------------------------------------------------------------------------------------------------------
6 1 [ ]
- ---------------------------------------------------------------------------------------------------------
7 1 [ ]
- ---------------------------------------------------------------------------------------------------------
8 1 [ ]
- ---------------------------------------------------------------------------------------------------------
9 1 [ ]
- ---------------------------------------------------------------------------------------------------------
10 2 [ ]
- ---------------------------------------------------------------------------------------------------------
11 1 [ ]
- ---------------------------------------------------------------------------------------------------------
32
MODULE PLACEMENT MACHINE
- ---------------------------------------------------------------------------------------------------------
Price
--------------------
NO. QTY. Name Unit Total
- ---------------------------------------------------------------------------------------------------------
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 [ ]
- ---------------------------------------------------------------------------------------------------------
33
WIRE IMPLANTING MACHINE
- ---------------------------------------------------------------------------------------------------------
Price
--------------------
NO. QTY. Name Unit Total
- ---------------------------------------------------------------------------------------------------------
1 12 [ ]
- ---------------------------------------------------------------------------------------------------------
2 20 [ ]
- ---------------------------------------------------------------------------------------------------------
3 2 [ ]
- ---------------------------------------------------------------------------------------------------------
4 2 [ ]
- ---------------------------------------------------------------------------------------------------------
5 2 [ ]
- ---------------------------------------------------------------------------------------------------------
6 2 [ ]
- ---------------------------------------------------------------------------------------------------------
7 2 [ ]
- ---------------------------------------------------------------------------------------------------------
8 2 [ ]
- ---------------------------------------------------------------------------------------------------------
9 6 [ ]
- ---------------------------------------------------------------------------------------------------------
10 2 [ ]
- ---------------------------------------------------------------------------------------------------------
11 2 [ ]
- ---------------------------------------------------------------------------------------------------------
12 80 [ ]
- ---------------------------------------------------------------------------------------------------------
13 36 [ ]
- ---------------------------------------------------------------------------------------------------------
14 2 [ ]
- ---------------------------------------------------------------------------------------------------------
15 2 [ ]
- ---------------------------------------------------------------------------------------------------------
16 4 [ ]
- ---------------------------------------------------------------------------------------------------------
17 2 [ ]
- ---------------------------------------------------------------------------------------------------------
18 2 [ ]
- ---------------------------------------------------------------------------------------------------------
19 2 [ ]
- ---------------------------------------------------------------------------------------------------------
20 2 [ ]
- ---------------------------------------------------------------------------------------------------------
21 16 [ ]
- ---------------------------------------------------------------------------------------------------------
22 5 [ ]
- ---------------------------------------------------------------------------------------------------------
34
WELDING AND REW0RKING MACHINE
- ---------------------------------------------------------------------------------------------------------
Price
--------------------
NO. QTY. Name Unit Total
- ---------------------------------------------------------------------------------------------------------
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 [ ]
- ---------------------------------------------------------------------------------------------------------
35
LAMINATING MACHINE AND COOLING SYSTEM
- ---------------------------------------------------------------------------------------------------------
Price
--------------------
NO. QTY. Name Unit Total
- ---------------------------------------------------------------------------------------------------------
1 99+ [ ]
3*66
- ---------------------------------------------------------------------------------------------------------
2 18+ [ ]
3*12
- ---------------------------------------------------------------------------------------------------------
3 9+ [ ]
3*6
- ---------------------------------------------------------------------------------------------------------
4 3 [ ]
- ---------------------------------------------------------------------------------------------------------
5 45 [ ]
- ---------------------------------------------------------------------------------------------------------
6 27 [ ]
- ---------------------------------------------------------------------------------------------------------
7 3 [ ]
- ---------------------------------------------------------------------------------------------------------
8 3 [ ]
- ---------------------------------------------------------------------------------------------------------
9 3 [ ]
- ---------------------------------------------------------------------------------------------------------
10 9 [ ]
- ---------------------------------------------------------------------------------------------------------
11 15 [ ]
- ---------------------------------------------------------------------------------------------------------
12 30 [ ]
- ---------------------------------------------------------------------------------------------------------
13 30 [ ]
- ---------------------------------------------------------------------------------------------------------
14 15 [ ]
- ---------------------------------------------------------------------------------------------------------
15 3 [ ]
- ---------------------------------------------------------------------------------------------------------
16 3 [ ]
- ---------------------------------------------------------------------------------------------------------
17 6 [ ]
- ---------------------------------------------------------------------------------------------------------
18 3 [ ]
- ---------------------------------------------------------------------------------------------------------
19 12 [ ]
- ---------------------------------------------------------------------------------------------------------
20 3 [ ]
- ---------------------------------------------------------------------------------------------------------
21 30 m [ ]
- ---------------------------------------------------------------------------------------------------------
22 3 [ ]
- ---------------------------------------------------------------------------------------------------------
23 3 [ ]
- ---------------------------------------------------------------------------------------------------------
24 1500 kg [ ]
- ---------------------------------------------------------------------------------------------------------
36
CARD PUNCHING MACHINE
- ---------------------------------------------------------------------------------------------------------
Price
--------------------
NO. QTY. Name Unit Total
- ---------------------------------------------------------------------------------------------------------
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 [ ]
- ---------------------------------------------------------------------------------------------------------
ATTACHMENT 3: TECHNICAL DOCUMENTATION LIST
1. Equipment Approval Certificate and Quality Certificate
2. Approval Certificate of All Materials
3. Operation Manuals of Each Equipment (including laboratory instruments)
(including such contents as structure, performance, installation and test
run, operation, and repair and maintenance)
4. Technical Layout Information and Power Supply Information (including
equipment base installation diagram)
5. Assembly Illustrations of Equipment
6. Theoretical Illustration and Wiring Illustration of the Electric System
7. Theoretical Illustration of Gas Control
8. Illustrations of Wearing Parts of the Equipment (including processing
illustrations
37
of all moulds)
9. Packing Slips of Equipment
10. List of Equipment Parts (including name of supplier and price quote)
11. List of Tools
12. Backup copies of software accompanied the equipment
13. Backup copies of PLC programs
38
ATTACHMENT 4: LIST OF MAINTENANCE TOOLS
- ---------------------------------------------------------------------------------------------------------
Price
--------------------
NO. QTY. Name Unit Total
- ---------------------------------------------------------------------------------------------------------
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 [ ]
- ---------------------------------------------------------------------------------------------------------
39
SUPPLEMENTARY AGREEMENT ON PROVISION OF SPARE PARTS FOR THE PRODUCTION LINE OF
SMART CARDS
An agreement was signed by the China Card Smart Card (Shanghai) Company Limited
and the American Aviation and Technology Inc. in April 2000 for the provision of
an equipment for the production of smart cards. Production has begun since
December 2000. To meet the production needs and based on the utilization of the
production line, after negotiations by both parties, it was agreed that the
easily worn parts in the following table shall be provided:
- ---------------------------------------------------------------------------------------------------------
No. Qty. Name Remarks
- ---------------------------------------------------------------------------------------------------------
Pick and Place 1. 1 [ ]
- ---------------------------------------------------------------------------------------------------------
2. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
3. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
4. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
5. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
Embedder 6. 20 [ ]
- ---------------------------------------------------------------------------------------------------------
7. 4 [ ]
- ---------------------------------------------------------------------------------------------------------
8. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
9. 4 [
]
- ---------------------------------------------------------------------------------------------------------
10. 4 [
]
- ---------------------------------------------------------------------------------------------------------
11. 4 [ ]
- ---------------------------------------------------------------------------------------------------------
12. 4 [ ]
- ---------------------------------------------------------------------------------------------------------
13. 4 [ ]
- ---------------------------------------------------------------------------------------------------------
14. 4 [ ]
- ---------------------------------------------------------------------------------------------------------
15. 4 [ ]
- ---------------------------------------------------------------------------------------------------------
Welder 16. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
17. 18 [ ]
- ---------------------------------------------------------------------------------------------------------
18. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
19. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
20. 50 [ ]
- ---------------------------------------------------------------------------------------------------------
21. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
Welder 22. 15 [ ]
- ---------------------------------------------------------------------------------------------------------
23. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
24. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
25. 6 [ ]
- ---------------------------------------------------------------------------------------------------------
Laminator and 26. 6 [ ]
Colling System
- ---------------------------------------------------------------------------------------------------------
27. 3 [ ]
- ---------------------------------------------------------------------------------------------------------
28. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
29. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
30. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
31. 2 [ ]
- ---------------------------------------------------------------------------------------------------------
Checker 32. 18 [ ]
- ---------------------------------------------------------------------------------------------------------
40
- ---------------------------------------------------------------------------------------------------------
33. 8 [ ]
- ---------------------------------------------------------------------------------------------------------
Hole Puncher 34. 1 [ ]
- ---------------------------------------------------------------------------------------------------------
35. 10m [ ]
- ---------------------------------------------------------------------------------------------------------
General Spare 36. 8 [ ]
Parts
- ---------------------------------------------------------------------------------------------------------
37. 8 [ ]
- ---------------------------------------------------------------------------------------------------------
38. 30 [ ]
- ---------------------------------------------------------------------------------------------------------
39. 8 [ ]
- ---------------------------------------------------------------------------------------------------------
40. 24 [ ]
- ---------------------------------------------------------------------------------------------------------
Party A: China Card Smart Card (Shanghai) Company Limited Company
Representative: (signature)
Party B: American Pacific Aviation & Technology Inc. Company Representative:
(signature)
Date Signed: September 6, 2001, at Pu Dong, Shanghai
41