CONTRACT FOR PROCESSING

　　Messrs: _________________________________
    INDUSTRY LTD. (hereinafter called Party A)
　　and
　　INDUSTRY LTD. (hereinafter called Party B)
　　have agreed that Party B shall manufacture Standard Magnetic
　　Compasses in____________ with all necessary parts and materials supplied by Party　A under the following terms and conditions:
　　1. Commodity and quantities for processing with supplied materials and assembling with supplied parts:
　　(1) Commodity-Standard Magnetic Compass;
　　(2) Quantity-____________sets in total.
　　2. All necessary parts and materials listed in the contract shall either be supplied by Party A or purchased in ____________ or by Party B;
　　3. The processing charge for each model is as follows:
　　(1) Standard Magnetic Compass of Type GLC-1 at U. S. $
　　____________(SAY: _________________U. S. D) each;
　　(2) Standard Magnetic Compass of Type GLC-2 at U. S. $
　　_____________(SAY: ________________ U. S. D) each;
　　(3) Standard Magnetic Compass of Type GLC-3 at U. S. $
　　____________(SAY: ___________U. $. D) each.
　　4. The main parts, consumables and materials required for processing will be sent to (place) by Party A and if there is any shortage or　damage, Party A should be held responsible for supplying replacements;
　　5. Party A should pay Party B by L/C or T/T covering the full amount of processing charges and costs of parts, consumables and materials purchased in__________or____________by Party B one month before shipment of the finished products;
　　6. Party B must complete the manufacturing of all Standard Magnetic Compasses of type GLC-1 and effect shipment within the agreed date without delay except in the occurrence of uncontrollable and unforceeable events ;
　　7. The damage rate of parts and materials:
　　The damage rate of parts and materials in processing is __________% and such a damage rate of parts and materials shall be supplied free by 　　Party A, should the damage rate exceed _____________ % , Party B shall supply additional materials
and necessary parts;
　　8. Should shipment of materials and parts sent by Party A be wrong or in excess, Party B shall return the excessive portion at the expense of Party A, in case of short shipment, Party A shall make up the shortage;
　　9. All parts and materials supplied by Party A for Standard Magnetic Compasses shall be processed by Party B strictly in accordance with the design without any modification;
　　10. Technical Service:
　　Party A agrees to send technicians to______________to help training Party B,s technicians at the request of the latter at any time and allows the technicians to remain with Party B for inspection of the finished products. In such case, Party B agrees to pay a monthly salary of U. S. $ ____________ for each person, all other expenses (including roun d trip tickets) will be borne by Party A;
　　11. All import and export formalities in connection with this contract should be handled by Party B;
　　12. All Standard Magnetic Compasses processed by Party B shall be shipped to the foreign buyers appointed by Party A at any
time;
　　13. Other terms and conditions:
　　(1) The trade marks of Standard Magnetic Compass shall be supplied by Party A, should there be any legal dispute, Party A shall be held fully responsible;
　　(2) The quality of parts and materials, if necessary, purchased in__________ or_____________ by Party B for Standard Magnetic Compasses must measure up to standard and be approved by Party A beforehand;
　　(3)For promotional purposes, Party B shall prepare samples of Standard Magnetic Compass at any time and send them to foreign Buyers appointed by Party A , all parts
and materials required would be supplied out of the stock supplied by Party A;
　　14. This contract shall be made in triplicate, Party A and Party B shall, both signing all copies, retain one copy and submit one to authorities concerned in (place) for registration.
　　INDUSTRY LTD.   INDUSTRY LTD.
　　________            ____________
　　Manager             Manager