AGREEMENT FOR PURCHASE OF EQUIPMENT
Number: 2002BZD (2)-012
2002
April 2002
1
AGREEMENT FOR PURCHASE OF EQUIPMENT
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
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 smart cards.
1.2 It is agreed that Party B shall provide four full sets, brand new, and
state-of-art production line and the complete production technology,
technical information and software for the production of contactless smart
cards, 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 This contract is prepared in accordance to the pertinent laws and rules
and regulations of China, and based on the principles of mutual benefits.
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, People's
Republic of China
Telephone: (86) 10-88513404
Fax: (86) 10-68428709
Zip Code: 100044
2.2. Party B: American Pacific Technology Corp.
Legal Address: Sansome Street, 19th Street
San Francisco, CA 94104, USA
Telephone: (415) 951-1078
Fax: (415) 951-1046
CHAPTER III - NAME, SPECIFICATIONS, QUANTITY, PRICE AND DELIVERY OF EQUIPMENT
2
3.1 Party B shall provide Party A with four complete sets of brand new and
state-of-art production equipment and accessories (see Appendix I -
"Equipment Functions and Technical Specifications") for the production of
contactless smart cards. Said production equipment shall be able to
produce 2500 pieces of smart cards per hour. The total cost of the
equipment shall be US$6,000,000 (Six Million Dollars), based on the CIF
Beijing Airport cost, which shall include the equipment, moulds,
accessories, installation test-run, and equipment maintenance.
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: The equipment shall be delivered in two
phases: the delivery date of each phase shall be within 4-1/2 months upon
receipt of deposit from or issuance of Letter of Credit by Party A.
CHAPTER IV - PAYMENT
4.1 As payment shall be made by two installments, the first payment shall be
made upon delivery of two production lines in the first phase, the amount
of which shall be 50% of the contract's total; and the second payment
shall be made upon delivery of the other two production lines in the
second phase, the amount of which shall be 50% of the contract's total.
4.2 Within 15 days upon effect of this contract, when phase 1 is executed,
Party A shall issue Party B a Letter of Credit, which is 50% of the total
contract amount, that is, US$3,000,000 (Three Million US Dollars).
4.3 Upon approval of preliminary inspection made by Party A in the United
States and shipment of the equipment, Party A shall, based on the shipment
slip and preliminary inspection report, pay portion
3
of the amount of the Letter of Credit specified in 4.2, that is, 90% of
the total amount of the Letter of Credit, which is $2,700,000 (Two Million
and Seven Hundred Thousand US Dollars).
4.4 Upon completion of installation, test-run and acceptance that the
performance of the equipment meets the standards of "Appendix V -
Equipment Acceptance Details), and upon signing of the "Receipt and
Acceptance Certificate" by both parties, Party A shall pay Party B the
balance of the Letter of Credit specified in 4.1, that is, 10% of the
Letter of Credit amount, which is $300,000 (Three Hundred Thousand US
Dollars).
4.5 Upon delivery of the first phase equipment, Party A shall issue Party B a
Letter of Credit, which shall be 50% of the total contract amount, that
is, US$3,000,000 (Three Million US Dollars).
4.6 Upon approval of preliminary inspection made by Party A in the United
States and shipment of the equipment, Party A shall, based on the shipment
slip and preliminary inspection report, pay portion of the amount of the
Letter of Credit specified in 4.5, that is, 90% of the total amount of the
Letter of Credit, which is $2,700,000 (Two Million and Seven Hundred
Thousand US Dollars).
4.7 Upon completion of installation, test-run and acceptance that the
performance of the equipment meets the standards of "Appendix V -
Equipment Acceptance Details), and upon signing of the "Receipt and
Acceptance Certificate" by both parties, Party A shall pay Party B the
balance of the Letter of Credit specified in 4.1, that is, 10% of the
Letter of Credit amount, which is $300,000 (Three Hundred Thousand 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:
4
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)
Product Acceptance Rate: Single set equipment, one time acceptance
rate >=98%.
5.2.4 Product Quality: the strength and durability of the cards, when
mechanically and electronically tested, shall meet the
ISO/IEC7810, ISO/IEC10536, ISO/IEC14443 and 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 For test run purpose, provision of 16 hour consumption of fake
chips, and 8 hours consumption of real chips.
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
5
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 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.
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 three 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 98%, a second testing shall be made to test the
equipment for another three working days, the cost of the materials for
test run shall be assumed by Party B. If the acceptance rate is still
under 98%, a maximum of another three 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.
6
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 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
7
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 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. Airway bill.
D. The inspection certificate provided by the manufacturer, as
8
specified in Chapter VII.
E. Insurance Policy
F. Certification of original place of manufacture.
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 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$600,000 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$600,000
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.
9
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 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 issuance of Letter of
Credit.
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.
10
CHAPTER XIII - DOCUMENTS
13.1 This agreement includes four original copies, signed in Beijing, on April
28, 2002.
PARTY A:
Bejing Zhong Dun Security Technology Development Company (The Ministry of
Security No. 1 Research Institute)
Company Representative:
Signature: (signature)
4/28/2002
PARTY B:
The American Pacific Technology Corporation
Company Representative:
Signature: (signature)
4/28/2002
11
TECHNICAL SERVICES AND LICENSING AGREEMENT
Technical Services and Licensing Agreement
This agreement is made by the Beijing Zhong Dun Technology Development Company,
on behalf of the Ministry of Security No. 1 Research Institute (hereinafter
referred as Party A) and the American Pacific Technology Corporation
(hereinafter referred as Party B), based on the principle of mutual benefits and
through friendly negotiations, for the provision of technical services and
licensing (patent technology) by Party B to Party A for the production of
contactless smart cards.
1. Party B shall provide the full set of technology (including technical
process, operation rules, maintenance rules, inspecting and testing rules,
administration system and all drawings, information, software or patent
technology) for the production of contactless smart cards and shall
guarantee that the production equipment and products produced by Party A
meet the requirements of the "Agreement for Purchase of Equipment".
2. The patent technology and exclusive technology provided by Party B to Party
A shall not involve any industrial property right of other countries or
companies and Party A shall be legally protected that it has the legal right
of utilization.
3. Without written permission of Party B, Party A shall not transfer the patent
technology or exclusive technology to any third party, nor Party A shall
duplicate the equipment provided by Party B. Without the permission of Party
B, Party A shall not allow business or technical personnel of other party to
examine the production line or give any technical information from Party B
to any third party.
4. Party B shall be responsible for providing all technical services of
installation, trouble shooting, test running, receipt and acceptance, and
shall solve all technical problems before receipt and acceptance to
guarantee that the equipment will produce 2500 pieces/hour. Party A shall
provide lodging and food for technical experts of Party B and shall assign
special staff to coordinate the project to ensure that installation, trouble
shooting and test running go through smoothly. The period for installation
and test running the equipment shall be two weeks. The travel expenses of
experts from Party B shall be assumed by Party B.
5. Party B shall train the staff of Party A for a period of two weeks. Party A
shall
12
select qualified staff to receive training. In the event that members from
Party A fail to master the production technology during the training period,
said period can be extended to three or four weeks, the cost of such
extension shall be assumed by Party A.
6. Party B shall cover the cost of providing the complete technology (including
the cost of providing technical details, operation rules, maintenance rules,
inspection and testing rules, administration system, drawings and
information and software and the compensation and travel expenses of experts
from Party B coming to China) and the cost of patent technology and
exclusive technology licensing, and staff training. All these costs are
included in the equipment purchase cost paid by Party A. With the exception
of the equipment purchase cost, Party A shall pay no additional fee. In
addition, at least in the first half year after the actual production
starts, Party B shall send one to three technical staff to stay in Party A's
site to help Party A produce and to provide technical support. The cost of
which shall be assumed by Party B.
7. Default Both parties shall execute the provisions of the agreement
sincerely. In the event any party fails to execute any of the above
provisions that causes the economic loss of other party, the defaulting
party shall compensate the loss. Claims and penalties shall be executed
according to Chapter IX of the "Agreement for Purchase of Equipment".
8. Settlement of Dispute Any dispute over the agreement by Parties A and B
shall be settled through friendly negotiation. In the event negotiation
fails to settle the dispute, it shall be arbitrated by the China Economic
and Foreign Trade Arbitration Committee in Beijing. Fee for arbitration
shall be paid by the losing party.
9. This agreement shall become effective on the date signed by both parties.
10. This agreement contains four original copies.
PARTY A:
Being Zhong Dun Security Technology Development Company (The Ministry of
Security No. 1 Research Institute)
13
Company Representative:
Signature: (signature)
PARTY B:
The American Pacific Technology Corporation
Company Representative:
Signature: (signature)
14
APPENDIX 1
EQUIPMENT FUNCTION & TECHNICAL SPECIFICATIONS
15
Checklist of Equipment
-------------------------------------------------------------------------------------------------
Production
Equipment Serial Model Price
No. Qty. Equipment No. (in US$10,000)
------------------------------------------------------------------------------------
1 4 Hole Punch Machine CICC-001 4
------------------------------------------------------------------------------------
2 8 Pick & Place With Module Testing CICC-002 92
------------------------------------------------------------------------------------
3 8 Ultrasonic Wire Implanting (4) CICC-003 320
------------------------------------------------------------------------------------
4 8 Welding with Inline Testing CICC-004 180
------------------------------------------------------------------------------------
5 4 Bonding Re-work Station CICC-005 4
-------------------------------------------------------------------------------------------------
Total: US$6,000,000
16
IC HOLE PUNCH MACHINE
1. FUNCTION: Working with varied moulds, able to hole punch the 0.1mm-0.5mm 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.
Also included is the remnant collection system for easy machine cleaning, in
avoidance of polluting the surrounding environment.
2. SYSTEM SET: Three high precision moulds (to hole punch 0.1mm, 0.3mm
materials and location holes respectively), safety protection device,
remnant collection system, hole punch time controller.
3. MATERIAL SPECIFICATIONS: Length x Width: 512 x 402 mm
Thickness of Material: 0.1-0.5mm
4. PRODUCTION CAPACITY: 3,200 cards/hour
5. SYSTEM PARAMETERS:
- --------------------------------------------------------------------------------
Hole punch pressure 30 tons
- --------------------------------------------------------------------------------
Punching process 227-90 mm
- --------------------------------------------------------------------------------
Punching Mould Foundation 910 x 660 mm
- --------------------------------------------------------------------------------
Effective punching and area 4 x 10 rows of ID-I cards
- --------------------------------------------------------------------------------
Punching precision +0.02 mm
- --------------------------------------------------------------------------------
Power Supply 3 phase 380VAC+-5%
- --------------------------------------------------------------------------------
Maximum Electric Current 40 Amp
- --------------------------------------------------------------------------------
Power 3KVAz
- --------------------------------------------------------------------------------
Frequency 50/60H
- --------------------------------------------------------------------------------
Electrical Machinery 5Hp
- --------------------------------------------------------------------------------
Hydraulic Pressure Oil Capacity 90 Liter
- --------------------------------------------------------------------------------
Condensed Air Pressure 6bar
- --------------------------------------------------------------------------------
Condensed Air Flow 25NL/min
- --------------------------------------------------------------------------------
Condensed Air Conditions 5 micron filter, dry, oil free
- --------------------------------------------------------------------------------
17
IC 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. The advanced vision system allows the module be placed precisely
in the assigned position. With automatic protection device that can
automatically turn off the machine in exceptional cases.
2. SYSTEM SET: Chip punched moulds, thru-beam chip recognition sensor, high
precision gluing system with improved back-pressure regulator, Adept
Cartesian robot, Pentium 4 computer, LCD Monitor, articulated shuttle,
vision system, automated punch cleaning system, improved vacuum generation,
dual-discrete placement heads, interchangeable drawer, safety protection
device.
3. MATERIAL SPECIFICATIONS: Length x Width: (512-600) x (400-402) mm
Thickness of Material: 0.3 - 0.5 mm
4. CONSUMPTION MATERIALS: Glue: 2,500 cards/tube
5. PRODUCTION CAPACITY: 1,250 cards/hour/set (based on three rows of the module
tapes).
6. SYSTEM PARAMETERS:
- --------------------------------------------------------------------------------
Width 1800 mm
- --------------------------------------------------------------------------------
Thickness 1100 mm
- --------------------------------------------------------------------------------
Height 2000 mm
- --------------------------------------------------------------------------------
Weight 400 kg
- --------------------------------------------------------------------------------
Placement Area 4 x 10 rows of ID-I cards
- --------------------------------------------------------------------------------
Placement Precision 0.1 mm
- --------------------------------------------------------------------------------
Power Supply 3 phase 380VAC+-5%
- --------------------------------------------------------------------------------
Maximum Electric Current 25 Amp
- --------------------------------------------------------------------------------
Power 1.2 KVA
- --------------------------------------------------------------------------------
Frequency 50/60 Hz
- --------------------------------------------------------------------------------
Condensed Air Pressure 6bar
- --------------------------------------------------------------------------------
Condensed Air Flow 100NL/min
- --------------------------------------------------------------------------------
Condensed Air Conditions 5 micron filter, dry, oil free
- --------------------------------------------------------------------------------
18
IC WIRE IMPLANTING MACHINE
1. FUNCTIONS: Said machine uses the 70,000 vibration/second and X, Y, Z three
directional movement second generation ultrasound wire implanting head to
implant the enamel-insulated wire accurately into the PC, adhesive coated
PET, PETG and PVC 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
improved implanting heads in each station, which, when compared with the
current equipment, the function remains the same, but the size becomes
smaller), Adept Cartesian robot, Pentium 4 computer, integrated PC
controlled ultrasonic power supplies, improved vacuum generation, LCD
monitor, interchangeable drawer, safety protection device.
3. MATERIAL SPECIFICATIONS: Length x Width: (512-600) x (400-402) mm
Thickness of Material: 0.1-0.5 mm
4. PRODUCTION CAPACITY: 1,250 cards/hour/workcell.
5. CONSUMPTION MATERIALS: Ultrasound head: 670,000 cards/head
Wire: 6,250 cards/spool
6. SYSTEM PARAEMTERS:
- --------------------------------------------------------------------------------
Width 1700 mm
- --------------------------------------------------------------------------------
Thickness 1100 mm
- --------------------------------------------------------------------------------
Height 2000 mm
- --------------------------------------------------------------------------------
Weight 350 kg
- --------------------------------------------------------------------------------
Implanting Area 4 x 10 rows of ID-I cards
- --------------------------------------------------------------------------------
Power Supply 3 phase 380VAC+-5%
- --------------------------------------------------------------------------------
Maximum Electric Current 20 Amp
- --------------------------------------------------------------------------------
Power 1 KVA
- --------------------------------------------------------------------------------
Frequency 50/60 Hz
- --------------------------------------------------------------------------------
Condensed Air Pressure 6Bar
- --------------------------------------------------------------------------------
Condensed Air Flow 400NL/min
- --------------------------------------------------------------------------------
Condensed Air Conditions 5 micron filter, dry, oil free
- --------------------------------------------------------------------------------
19
IC 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 Cartesian robot can
perform welding in any set position within the operation area. Welding
strength normally should be no less than 100 grams. With automatic function
of polishing the chips. With automatic protection device. Able to turn off
the machine automatically in exceptional cases.
2. SYSTEM SET: Two Integrated PC controlled high precision electric current
generator, Adept Cartesian robot, dual-discrete bonding heads, one Vision
System per head, using tungsten thermode, automated weld head temperature
monitoring, Pentium 4 Computer, LCD Monitor, interchangeable drawer, safety
protection device.
3. MATERIAL SPECIFICATIONS: Length x Width:(512-600) x (400-420) mm
Thickness of Material: 0.1-0.5mm
4. CONSUMPTION MATERIALS: Thermode: 10,000 bonds/piece
5. PRODUCTION CAPACITY: 1,250 cards/hour/set
6. SYSTEM PARAMETERS:
- --------------------------------------------------------------------------------
Height 1800 mm
- --------------------------------------------------------------------------------
Width 1200 mm
- --------------------------------------------------------------------------------
Thickness 2000 mm
- --------------------------------------------------------------------------------
Weight 450 kg
- --------------------------------------------------------------------------------
Welding Area 4 x 10 rows of ID-I cards
- --------------------------------------------------------------------------------
Power Supply 3 phase 380VAC+-5%
- --------------------------------------------------------------------------------
Maximum Electric Current 30 Amp
- --------------------------------------------------------------------------------
Power 1.3 KVA
- --------------------------------------------------------------------------------
Frequency 50/60 Hz
- --------------------------------------------------------------------------------
Condensed Air Pressure 6Bar
- --------------------------------------------------------------------------------
Condensed Air Flow 100NL/min
- --------------------------------------------------------------------------------
Condensed Air Conditions 5 micron filter, dry, oil free
- --------------------------------------------------------------------------------
20
IC 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 1300 mm
- --------------------------------------------------------------------------------
Width 1000 mm
- --------------------------------------------------------------------------------
Thickness 1300 mm
- --------------------------------------------------------------------------------
Weight 250 kg
- --------------------------------------------------------------------------------
Power Supply 3 phase 380VAC+-5%
- --------------------------------------------------------------------------------
Maximum Electric Current 2 Amp
- --------------------------------------------------------------------------------
Power 3KVA
- --------------------------------------------------------------------------------
Frequency 50/60 Hz
- --------------------------------------------------------------------------------
Condensed Air Pressure 7Bar
- --------------------------------------------------------------------------------
Condensed Air Flow 100NL/min
- --------------------------------------------------------------------------------
Condensed Air Conditions 5 micron filter, dry, oil free
- --------------------------------------------------------------------------------
21
APPENDIX 2
SPARE PARTS & WEARING PARTS
22
IC HOLE PUNCH MACHINE
- ---------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- ---------------------------------------------------------------------------
1 4 Die for 0.3 mm
- ---------------------------------------------------------------------------
2 4 Die for 0.1 mm
- ---------------------------------------------------------------------------
3 4 Die for Location Pin
- ---------------------------------------------------------------------------
4 4 Start Cycle Button
- ---------------------------------------------------------------------------
5 4 Emergency Stop Button
- ---------------------------------------------------------------------------
6 4 Hydraulic Valve 600 psi Relief
- ---------------------------------------------------------------------------
7 4 4PDT/110V Relay
- ---------------------------------------------------------------------------
8 4 30A/RK5 Fuse
- ---------------------------------------------------------------------------
9 4 2.5A/500V Fuse
- ---------------------------------------------------------------------------
10 8 4A/500 V Fuse
- ---------------------------------------------------------------------------
11 4 Drop-in Oil Filter
- ---------------------------------------------------------------------------
12 40 Vacuum bags
- ---------------------------------------------------------------------------
23
MODULE PLACEMENT MACHINE
- ----------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- ----------------------------------------------------------------------------------------------------
1 48 Door Lock
- ----------------------------------------------------------------------------------------------------
2 120 Vacuum Bowl
- ----------------------------------------------------------------------------------------------------
3 8 Sheet Hand Vertical Limit Sensor
- ----------------------------------------------------------------------------------------------------
4 8 Sheet Hand Left and Right Limit Sensor
- ----------------------------------------------------------------------------------------------------
5 72 Controller's Fuse
- ----------------------------------------------------------------------------------------------------
6 4 Muffler
- ----------------------------------------------------------------------------------------------------
7 8 Sheet Hand Main Vertical Moving Cylinder
- ----------------------------------------------------------------------------------------------------
8 8 Sheet Hand Deputy Vertical Moving Cylinder
- ----------------------------------------------------------------------------------------------------
9 48 The Leaf for the Door
- ----------------------------------------------------------------------------------------------------
10 8 Soft Start-up Valve
- ----------------------------------------------------------------------------------------------------
11 8 Slides for Drawers
- ----------------------------------------------------------------------------------------------------
12 4 Guide unit for pulling reel (including 2 guides and their bushing)
- ----------------------------------------------------------------------------------------------------
13 8 Bad module recognizing unit (sensor, amplifier and fiber)
- ----------------------------------------------------------------------------------------------------
14 36 Plunger's tip
- ----------------------------------------------------------------------------------------------------
15 8 Hand Vacuum Valve Assembly
- ----------------------------------------------------------------------------------------------------
16 36 Finger Plunger Height Sensor
- ----------------------------------------------------------------------------------------------------
17 8 Relay for Dispenser
- ----------------------------------------------------------------------------------------------------
18 8 Adhesive Dispense Manifold
- ----------------------------------------------------------------------------------------------------
19 8 Adhesive Dispense Motor
- ----------------------------------------------------------------------------------------------------
20 8 Module Tape Index Sensor
- ----------------------------------------------------------------------------------------------------
21 8 Module Tape Reel Feed Sensor
- ----------------------------------------------------------------------------------------------------
22 8 Shuttle Position Sensor
- ----------------------------------------------------------------------------------------------------
23 8 Adhesive Pressure Regulator
- ----------------------------------------------------------------------------------------------------
24 8 24 VDC Power Supply
- ----------------------------------------------------------------------------------------------------
25 8 Vaccum Generator with Dual Sensor/Switch
- ----------------------------------------------------------------------------------------------------
26 8 Drawer Prox. Sensor
- ----------------------------------------------------------------------------------------------------
27 240 syringes Glue
- ----------------------------------------------------------------------------------------------------
24
IC WIRE IMPLANTING MACHINE
- ---------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- ---------------------------------------------------------------------------------------------
1 24 Door Lock
- ---------------------------------------------------------------------------------------------
2 80 Vacuum Bowl
- ---------------------------------------------------------------------------------------------
3 8 Sheet Hand Vertical Limit Sensor
- ---------------------------------------------------------------------------------------------
4 8 Sheet Hand Left and Right Limit Sensor
- ---------------------------------------------------------------------------------------------
5 8 Controller's Fuse
- ---------------------------------------------------------------------------------------------
6 8 Muffler
- ---------------------------------------------------------------------------------------------
7 8 Sheet Hand Main Vertical Moving Cylinder
- ---------------------------------------------------------------------------------------------
8 8 Sheet Hand Deputy Vertical Moving Cylinder
- ---------------------------------------------------------------------------------------------
9 24 The Leaf for the Door
- ---------------------------------------------------------------------------------------------
10 8 Soft Start-up Valve
- ---------------------------------------------------------------------------------------------
11 8 Slides for Drawers
- ---------------------------------------------------------------------------------------------
12 96 Ultrasound Horn
- ---------------------------------------------------------------------------------------------
13 144 Cutter Knife
- ---------------------------------------------------------------------------------------------
14 4 Head Drive System
- ---------------------------------------------------------------------------------------------
15 8 US Head Spool Dancer
- ---------------------------------------------------------------------------------------------
16 16 Spool Motor
- ---------------------------------------------------------------------------------------------
17 8 US Head Screw Assortment
- ---------------------------------------------------------------------------------------------
18 8 US Head Clamp Solenoid
- ---------------------------------------------------------------------------------------------
19 8 Vacuum Generator with Dual Sensor/Switch
- ---------------------------------------------------------------------------------------------
20 8 Drawer Prox. Sensor
- ---------------------------------------------------------------------------------------------
21 12 Spool Motor Speed Control
- ---------------------------------------------------------------------------------------------
22 12 Dancer Position Sensor
- ---------------------------------------------------------------------------------------------
23 64 rolls Wire
- ---------------------------------------------------------------------------------------------
25
IC WELDING AND REWORKING MACHINE
- ---------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
- ---------------------------------------------------------------------------------------------
1 48 Door Lock
- ---------------------------------------------------------------------------------------------
2 120 Vacuum Bowl
- ---------------------------------------------------------------------------------------------
3 8 Sheet Hand Vertical Limit Sensor
- ---------------------------------------------------------------------------------------------
4 8 Sheet Hand Left and Right Limit Sensor
- ---------------------------------------------------------------------------------------------
5 72 Controller's Fuse
- ---------------------------------------------------------------------------------------------
6 8 Muffler
- ---------------------------------------------------------------------------------------------
7 8 Sheet Hand Main Vertical Moving Cylinder
- ---------------------------------------------------------------------------------------------
8 8 Sheet Hand Deputy Vertical Moving Cylinder
- ---------------------------------------------------------------------------------------------
9 24 The Leaf for the Door
- ---------------------------------------------------------------------------------------------
10 8 Soft Start-up Valve
- ---------------------------------------------------------------------------------------------
11 8 Slides for Drawers
- ---------------------------------------------------------------------------------------------
12 8 Guide for Head's Vertical Moving
- ---------------------------------------------------------------------------------------------
13 72 Thermode Cleaning Brush
- ---------------------------------------------------------------------------------------------
14 36 Bad Card Marker
- ---------------------------------------------------------------------------------------------
15 8 Pressure Regulator
- ---------------------------------------------------------------------------------------------
16 8 Relay for Weld Trigger
- ---------------------------------------------------------------------------------------------
17 720 Dressing Stone
- ---------------------------------------------------------------------------------------------
18 72 Stamp Refill
- ---------------------------------------------------------------------------------------------
19 8 Vacuum Generator with Dual Sensor/Switch
- ---------------------------------------------------------------------------------------------
20 8 Drawer Prox. Sensor
- ---------------------------------------------------------------------------------------------
21 400 Thermode
- ---------------------------------------------------------------------------------------------
26
APPENDIX 3
TECHNICAL DOCUMENTATION LIST
27
Accompanied documentations include:
1. Equipment Approval Certificate and Quality Certificate
2. Operation, Repair, Usage and Maintenance Manuals of Each Equipment
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
28
APPENDIX 4
TOOL LIST
29
- --------------------------------------------------------------------------------------------
NO. NAME OF TOOL QTY.
- --------------------------------------------------------------------------------------------
1. Torque Wrench 2
- --------------------------------------------------------------------------------------------
2. US Head Shim Kit 2 set
- --------------------------------------------------------------------------------------------
3. Multi-meter 2
- --------------------------------------------------------------------------------------------
4. Precision Drill Set 2 set
- --------------------------------------------------------------------------------------------
5. Electrical Tape 2
- --------------------------------------------------------------------------------------------
6. Foam Mounting Tape 2
- --------------------------------------------------------------------------------------------
7. Assorted Tweezer Set 2 set
- --------------------------------------------------------------------------------------------
8. Scribe 2 set
- --------------------------------------------------------------------------------------------
9. Pick Set 2 set
- --------------------------------------------------------------------------------------------
10. Inspection Mirror 2
- --------------------------------------------------------------------------------------------
11. Snap Ring Pliers 2
- --------------------------------------------------------------------------------------------
12. Torpedo Level 2
- --------------------------------------------------------------------------------------------
13. Oiling Pen 2
- --------------------------------------------------------------------------------------------
14. Allen Wrench Sets 12
- --------------------------------------------------------------------------------------------
15. Socket Set 2 set
- --------------------------------------------------------------------------------------------
16. Machinist Square 2
- --------------------------------------------------------------------------------------------
17. Tap and Die Set 78
- --------------------------------------------------------------------------------------------
18. Ignition Wrench Set 4
- --------------------------------------------------------------------------------------------
19. Needle file Set 20
- --------------------------------------------------------------------------------------------
20. Bastard Files 14
- --------------------------------------------------------------------------------------------
21. Precision Pliers 10
- --------------------------------------------------------------------------------------------
22. Step Drill 2
- --------------------------------------------------------------------------------------------
23. Screw Driver Set 40
- --------------------------------------------------------------------------------------------
24. Angle Screw Driver Set 12
- --------------------------------------------------------------------------------------------
25. Drill Bit Set 2
- --------------------------------------------------------------------------------------------
26. Wire Stripper 2
- --------------------------------------------------------------------------------------------
27. Miniature Pliers 6
- --------------------------------------------------------------------------------------------
28. Adjustable Wrench Set 6
- --------------------------------------------------------------------------------------------
29. Locking Pliers 6
- --------------------------------------------------------------------------------------------
30. Pliers 6
- --------------------------------------------------------------------------------------------
31. Knife Set 2
- --------------------------------------------------------------------------------------------
32. Hacksaw 2
- --------------------------------------------------------------------------------------------
33. Hacksaw blades 12
- --------------------------------------------------------------------------------------------
34. Ball peen hammer 2
- --------------------------------------------------------------------------------------------
35. Wd-40 4
- --------------------------------------------------------------------------------------------
36. Flashlight 2
- --------------------------------------------------------------------------------------------
37. Wire Brushes 4
- --------------------------------------------------------------------------------------------
38. X-acid knife Set 2
- --------------------------------------------------------------------------------------------
39. Magnifying glass 2
- --------------------------------------------------------------------------------------------
40. 45 mm Steel Rule 2
- --------------------------------------------------------------------------------------------
41. Solding Iron Set 2
- --------------------------------------------------------------------------------------------
30
Technical Agreement Appendix 5
EQUIPMENT ACCEPTANCE DETAILS
31
I. GENERAL PRINCIPLES
Materials used during the Acceptance shall be PVC or PETG. Moulds used shall be
the MIFARE MOA2. Production rate shall be based on arrangement of 4 x 8 cards.
Acceptance shall be based on inlays that have not been laminated.
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.
1.2 Equipment items to be inspected shall include:
o Information and material accompanied with the equipment
o Appearance
o Equipment functions
o Equipment system
1.3 Inspection and acceptance shall be conducted in two phases:
1.3.1 Preliminary inspection of equipment delivered
1.3.2 Final inspection of 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.
2.1.1 Inspection of Equipment Functions
Hole Punch Machine
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
32
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 70,000 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
(sampling based on the GB2828 special inspection level S-3 AQL=0.65)
b. Whether the function of pog-pin welding is successful
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
2.1.2 Inspection of the Equipment System
Use the fake modules to test run steadily for two hours and use the real
modules to test run steadily for another two hours. Since the system is
a separate machine, actual operation can be carried on by items. The
operation of using the fake modules and 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. The time required for preparation and starting the machine is
excluded. 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
33
place machine, wire implanting machine and the welding machine shall be
at 98% or above.
After four hour of operation for each equipment, each equipment shall be
able to produce an average of 2500 cards per hour.
2.2 Final 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
2.2.1 Inspection Of The Information And Materials Accompanied With
The Equipment
o Verify with Appendix 1 of the Agreement, "List of Production Line
Equipment and Laboratory Devices"
o Verify with Appendix 2 of the Agreement, "Equipment Parts and
Consumption Parts"
o Verify with Appendix 3 of the Agreement, "List of Technical Documents"
o Verify with Appendix 4 of the Agreement, "List of Maintenance Tools"
o Verify with the approved raw materials provided by Party B for 24-hour
test run operation use.
2.2.2 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 plated
surface of the conveyance section of the equipment shall be polished,
bright, with no defects or rusty spots.
2.2.3 Inspection And Acceptance Of The Equipment Function
Inspect the Approval Certificate (including inspection details and
results) and Quality Certificate provided by Party B, based on the
requirements of 2.1.1.
34
<Page>
2.2.4 Inspection And Acceptance Of The Equipment System
Use fake modules for steady operation for two days, eight hours a day. Use
real modules on the third day for eight 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. The required time for preparation and starting the machine is
excluded. 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. The total acceptance rate of
products that have not been laminated shall be over 98%.
After test running 24 hours, the average production capacity shall be 2500
cards/hour.
35