Exhibit 10.30
Certain portions of this Exhibit have been omitted pursuant to a request for
"Confidential Treatment" under Rule 24b-2 of the Securities and Exchange
Commission. Such portions have been redacted and bracketed in the request and
appear as [ ] in the text of this Exhibit. The omitted confidential information
has been filed with the Securities and Exchange Commission.
AGREEMENT FOR PURCHASE OF EQUIPMENT
Number: 20010903MPS-CVIC
September 2001
CHAPTER I - GENERAL PRINCIPLES
1.1 This contract is made between the Beijing Bu Lu Dun High Tech Company
Limited, on behalf of the China Motor Vehicle Safety Inspection Center
(hereinafter referred as Party A) and the American Pacific Aviation
Technology Company (hereinafter referred as Party B), based on the
principle of mutual benefit and through friendly negotiations, to purchase
from Party B by Party A the equipment for the production of the
contactless smartcards.
1.2 It is agreed that Party B shall provide a full set, brand new, and
state-of-art production line and the complete production technology,
technical information and software for the production of contactless
smartcards, which shall ensure that the strength and durability of the
mechanically tested cards produced by Party A meet the standards of
ISO/IEC7810, ISO/IEC10536, and ISO/IEC14443.
1.3 According to the laws and rules and regulations of the People's Republic
of China and based on the principle of mutual benefits, the provisions of
this agreement shall become effective and shall be executed at the same
time with the "Agreement of Technical Services and Licensing".
CHAPTER II - PARTIES
2.1 Party A: The Beijing Bu Lu Dun High Tech Company Limited
Legal Address: 0, Xxx Xxx Xxxx, Xxxxxxx Xxxxxxxx, Xxxxxxx, Xxxxx
Telephone: (00) 00-00000000
Fax: (00) 00-00000000
Zip Code: 100083
2.2. Party B: American Pacific Aviation & Technology Corp.
Legal Address: Sansome Street, 19th Street
Xxx Xxxxxxxxx, XX 00000, XXX
Telephone: (000) 000-0000
Fax: (000) 000-0000
Zip Code: 550017
1
CHAPTER III - NAME, SPECIFICATIONS, QUANTITY, PRICE AND DELIVERY
OF EQUIPMENT
3.1 Party B shall provide Party A with a complete brand new and state-of-art
production line and accessories (see Appendix I) for the production of
contactless smart cards. Said production line shall be able to produce
2500 pieces of smart cards per hour. The total cost of the equipment shall
be US$[ ] US Dollars), based
on the CIF Beijing Airport cost, which shall include the equipment,
moulds, technical service, patent and licensing, and accessories.
3.2 Before packaging said production line for shipment, Party A shall send
four technical staff to come to the United States to conduct preliminary
inspection of the equipment. See Appendix V, "Equipment Acceptance
Details" for preliminary inspection standards. Party B shall pay for the
expense of the two-way air tickets, and provide lodging and transportation
in the United States for the visiting staff of Party A. Staff of Party A
will stay in the United States for two weeks.
3.3 Delivery Date of the Equipment: By air, to be delivered within four months
after the remittance of the first payment.
CHAPTER IV - PAYMENT
4.1 Within 20 working days upon the effect of this agreement, Party A shall
issue a Letter of Credit at [ ] of the total amount to Party B, that is,
US$[ ] US Dollars).
4.2 Upon approval of preliminary inspection made by Party A in the United
States and after Party B ship the equipment, Party B shall, based on the
shipment documents and preliminary inspection report, negotiate with Party
A for the portion of the amount of the Letter of Credit specified in 4.1,
that is, [ ] of the total price of the equipment, in the amount of
US$[ ] US Dollars).
4.3 Upon completion of installation and test run, Party A shall negotiate the
balance
2
of the Letter of Credit specified in 4.1, that is, [ ] of the total cost
of the equipment, in the amount of US$[ ]
US Dollars).
CHAPTER V - SPECIFICATIONS AND TECHNICAL CONDITIONS
OF THE EQUIPMENT
5.1 The production line supplied by Party B must be brand new, complete and
shall correspond to the specifications of Appendix I - "Equipment
Functions and Technical Specifications".
5.2 The performance and quality of the equipment shall meet the following
requirements:
5.2.1 The operation capacity of the equipment shall meet the
specifications of the manual of the equipment
5.2.2 The production capacity of the equipment: 2500 pieces/hour
5.2.3 Product Specification: 4 coil antenna, ISO7810 standard ID1_1
size (thickness excluded)
5.2.4 Product Quality: the strength and durability of the cards,
when mechanically and electronically tested, shall meet the
ISO/IEC7810, ISO/IEC10536, ISO/IEC14443 standards and product
standards specified by Party A in Appendix V, "Equipment
Acceptance Details"
5.2.5 Product Acceptance Rate: Single set equipment, one time
acceptance rate >= 98%, total acceptance rate >= 97%
5.3 Party B shall deliver the following supplements along with the equipment:
5.3.1 Special operation tools, maintenance and repair tools and
testing tools (See Appendix IV)
5.3.2 Wearing parts of equipment (enough for one year normal
consumption) (See Appendix II)
5.3.3 Approved raw materials needed for the 54-hour production test
run (See Appendix 6) The fake chips used for 48 hours and real
chips be used for 6 hours during the test run period shall be
purchased by Party B in China.
5.4 Party B shall deliver the following technical documents when packaging and
shipping the equipment:
5.4.1 The quality approval certificate and the manual of the
equipment
3
5.4.2 The packaging list of the equipment
5.4.3 Manuals of installation, testing, operation and maintenance
5.4.4 The quality assurance certificate and documentation, as
specified in Chapter VII
5.4.5 Drawings of wearing parts and the list of accessories.
5.5 Upon effect of the contract, Party B shall, within 10 working days, mail a
technical layout drawing and power supply information to Party A for
technical design purpose.
5.6 Party B shall, two months before the installation and test running of the
equipment, mail the following documents to Party A or have staff work at
Party A's place to provide instructions:
5.6.1 The installation diagram and the foundation diagram
5.6.2 The power parameters (including power, compressed air, water
and stream) of the equipment, and the technical information of
power supply and special shop requirements
5.7 The power utilization standards shall correspond to those of the People's
Republic of China, that is, 380(+ or -)10 volts for the transformer, and
50(+ or -)5% hertz for the frequency.
CHAPTER VI - INSTALLATION, TROUBLE-SHOOTING, TEST RUNNING
AND RECEIPT AND ACCEPTANCE
6.1 Party B shall be responsible for installing and trouble-shooting the
equipment, and training the staff of Party A, ensuring that the
installation and trouble shooting of the equipment be completed within two
weeks after the arrival of the equipment in the shop. Party A shall
provide the necessary technical staff, workers and other necessities to
accommodate the project.
6.2 Methods and Procedures of Final Acceptance of the Equipment (See Appendix
V - Equipment Acceptance Details)
6.3 The test run period shall be seven working days, at eight hours per day.
The purpose of the test run is to inspect the production equipment, and to
examine whether the products produced meet the requirements specified in
Provision 5.2.
4
After approval of test results by Parties A and B, the receipt and
acceptance certificate shall be signed.
6.4 During the test run period, if the acceptance rate of the product falls
under the level of 97%, a second testing shall be made to test the
equipment for another seven working days, the cost of the materials for
test run shall be assumed by Party B. If the acceptance rate is still
under 97%, a maximum of another seven working days can be extended. If it
still fails to meet the demand, Party A shall have the right to request
replacement and compensation.
6.5 Large volume of production shall not begin until receipt and acceptance is
completed.
6.6 Party B shall assume the cost of its staff during their period of working
in the factory. Party A shall provide food by the factory and
transportation within the city.
CHAPTER VII - QUALITY INSPECTION
7.1 Party B shall guarantee that the equipment is made by top craftsmanship
and of top materials. The quality, specification and performance of the
equipment shall meet the requirements specified in this contract.
7.2 Before delivery, Party B shall conduct a thorough and full inspection of
the quality, specification and performance, as well as the quantity/weight
of the equipment, and shall provide a certificate of inspection, along
with the details and results of the inspection confirming that the quality
and quantity of the equipment meets the requirements of this contract. A
quality and quantity inspection certificate shall be provided by Party B
when the equipment is delivered to Party A.
7.3 Upon arrival of the equipment at the destination, Party A shall, in
accordance to 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
5
representative to participate in the inspection, the Inspection Bureau
shall continue inspection as scheduled and the result of which shall be
notified by Party A to Party B and Party B shall acknowledge the result
accordingly.
7.4 In the event the inspection finds any quality or quantity error, or any
missing part that does not meet the requirements of this agreement, or any
damage due to packaging, Party B shall within six weeks make compensation,
or shall make repairs at its own cost. In the event that any damage is
caused by Party A, Party B shall replace the damaged item as soon as
possible, and the cost of replacement shall be paid by Party A.
7.5 In the event the inspection finds any serious quality or quantity problem
of the equipment, Party A shall have the right to return the equipment or
request compensation based on the provisions of Chapter IX.
7.6 The warranty period of the equipment shall be 12 months, commencing the
date when the equipment is received and accepted. During the warranty
period Party B shall be responsible for repairing the equipment if the
damage of the equipment is caused by the defects of the equipment.
CHAPTER VIII - PACKAGING AND SHIPMENT
8.1 When packaging, Party B shall use a new and solid wood container with
necessary measures taken to prevent moist, shock, rust and rough loading
and unloading of the equipment to ensure that the package is suitable for
long distance transportation.
If the package material used is of the conifruticeta type, Party B shall
provide proof that the material used has been fumigated.
If the package material used is of the non-conifruticeta type, Party B
shall provide description of the type of material used which will be used
by Party A during the Custom process.
8.2 Packaging and Delivery Marks
Party B shall xxxx 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
6
point" and "gravity point".
8.3 Shipment Information
8.3.1 Within two days after shipping, Party B shall fax Party A the
following information:
A. Date of Shipment, B. Port of Shipment, C. Port of
Destination, D. Number, Name, Quantity, Weight, Total Weight
and Size of the Container.
8.3.2 Within two days after shipping, Party B shall send the
following information to Party A via express mail:
A. Invoice, with specification of the name and the quantity
of the merchandise;
B. Packaging Slip which specifies the number, size, weight
of the container, and the name, quantity, net weight of
the merchandise, and the date of shipment;
C. Air way xxxx.
D. The inspection certificate provided by the manufacturer,
as specified in Chapter VII.
E. Insurance policy
CHAPTER IX - COMPENSATION AND PENALTY
9.1 In the event Party A, within 90 days upon the arrival of the equipment at
the destination port, finds any disagreement of the specifications,
quality and quantity of the equipment as specified in this contract, Party
A shall, by presenting the inspection certificate of the Inspection
Bureau, request compensation from Party B.
9.2 Party A shall assume the actual cost of overtime for any delay of
installation and testing of the equipment caused by Party A.
9.3 In the event Party B fails to respond within 30 days after Party A makes
its claim 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
7
fails to deliver the merchandise on time according to the contract, Party
A shall agree that Party B postpone delivery provided that Party B shall
pay a penalty at 0.5% of the total cost for every delayed week but this
penalty shall not exceed 5% of the total cost. In the event the delay of
delivery exceeds ten weeks of the scheduled date, Party A shall have the
right to terminate the contract and Party B shall still pay for the
penalty for the actual delayed days.
9.5 Without written agreement of Party B, Party A cannot transfer the patent
technology and licensing to any third party, nor Party A can duplicate the
equipment of Party B. In the event Party A allows any third party to use
said technology at its discretion, Party A shall pay Party B an amount of
US$[ ] for violation of the contract. In the event Party A duplicates
the technology of Party B, it shall pay Party B an amount of US$[ ]
for defaulting the contract. Payment of this amount does not waive the
right of Party B to prosecute against any third party or Party A for
violation of rights.
CHAPTER X - FORCE MAJEURE
10.1 During the time of manufacturing or in the process of shipping, in the
event of war, fire, flood, typhoon, earthquake or other force majeure
acknowledged by both parties that causes Party B fail or delay to execute
the provisions of this contract as schedule, Party B shall assume no
liability. In the event of force majeure, Party B shall notify Party A
immediately and shall within two weeks, send, via air mail, a government
issued certificate to Party A confirming said force majeure.
10.2 When the force majeure vanishes, both parties shall negotiate whether to
continue executing the contract.
CHAPTER XI - ARBITRATION
11.1 In the event there arises any dispute during the execution of this
agreement or 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
8
effect upon both parties. Arbitration fee shall be paid by the losing
party.
11.3 During the period of arbitration, both parties shall continue to execute
other non-disputed terms of the contract.
CHAPTER XII - GOVERNING LAWS AND VALIDATY
12.1 When executing this agreement, both Parties A and B shall comply with the
laws and rules and regulations of the People's Republic of China.
12.2 This agreement shall become effective upon the date signed.
12.3 After this agreement becomes effective, both Parties A and B shall, if
needed, discuss revisions to accommodate the practicalities of executing
this agreement. These revisions shall become effective when signed by both
parties. Neither party can amend the agreement on its own.
CHAPTER XIII - DOCUMENTS
13.1 This agreement shall be written in Chinese.
13.2 This agreement is signed in September, 2001.
13.3 This agreement contains four original copies.
PARTY A:
Bejing Bu Lu Dun High Tech Company Limited
Company Representative:
Signature: (signature)
September 3, 2001
PARTY B:
The American Pacific Aviation & Technology Corporation
Company Representative:
Signature: (signature)
September 3, 2001
9
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.
APPENDIX 1
EQUIPMENT FUNCTION & TECHNICAL SPECIFICATIONS
13
List of Production Line Equipment and Laboratory Instruments Included in This
Set of Production Line
-------------------------------------------------------------------------------------------------------
Serial Quantity Name Model Price
No. of Equipment No. (in US$10,000)
-------------------------------------------------------------------------------------------------------
Production 1 1 Hole Punch Machine CICC-001 [ ]
Line ---------------------------------------------------------------------------------------
2 3 Pick & Place With Module CICC-002 [ ]
Testing
-------------------------------------------------------------------------------------------------------
3 2 Ultrasonic Wire Implanting CICC-003 [ ]
(4)
-------------------------------------------------------------------------------------------------------
4 3 Welding With Inline Testing CICC-004 [ ]
-------------------------------------------------------------------------------------------------------
5 2 Bonding Re-work Station CICC-005 [ ]
-------------------------------------------------------------------------------------------------------
6 2 Xxxxxx CICC-006 [ ]
-------------------------------------------------------------------------------------------------------
7 4 Lamination System CICC-007 [ ]
-------------------------------------------------------------------------------------------------------
8 4 Cooling System CICC-008 [ ]
-------------------------------------------------------------------------------------------------------
9 1 Card Punching Machine CICC-009 [ ]
-------------------------------------------------------------------------------------------------------
Laboratory 10 1 Flexion & Torsion Test System OASYS [ ]
-------------------------------------------------------------------------------------------------------
11 1 Pull Tester MP5/230 [ ]
-------------------------------------------------------------------------------------------------------
12 1 Frequency Analyzer DEME-3010, [ ]
DEWE-3010
-------------------------------------------------------------------------------------------------------
Total: US$[ ]
14
HOLE PUNCH MACHINE
FUNCTION: Working with varied moulds, able to hole punch the [
] 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: Two sets of three high precision moulds to be used for MOA2, MPS
modules (for hole punching [ ] materials and location holes
respectively), 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 [ ]
--------------------------------------------------------------------------------------
15
PICK AND PLACE
FUNCTION: Pick and place the moulds into corresponding holes of the PVC, PC, PET
and PETG films. The placement position can be adjusted and fixed by adhesives.
With automatic protection device that can automatically turn off the machine in
exceptional cases.
SYSTEM SET: Chip punched moulds (MOA2, MCC2, MPS modules), chip recognition
sensor, high precision gluing system, Adept robot, Pentium 4 computer, LCD
Monitor, interchangable drawer, safety protection device.
MATERIAL SPECIFICATIONS: Length x Width: [ ]
Thickness of Material: [ ]
CONSUMPTION MATERIALS: Adhesives, [ ]
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 [ ]
--------------------------------------------------------------------------------------
16
WIRE IMPLANTING MACHINE
FUNCTIONS: Said machine uses the [
] [ ]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.
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 [ ]
--------------------------------------------------------------------------------------
17
IC MODULE 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 [
], 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, Pentium 4 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:
--------------------------------------------------------------------------------------
Height [ ]
--------------------------------------------------------------------------------------
Width [ ]
--------------------------------------------------------------------------------------
Thickness [ ]
--------------------------------------------------------------------------------------
Weight [ ]
--------------------------------------------------------------------------------------
Welding Area [ ]
--------------------------------------------------------------------------------------
Power Supply [ ]
--------------------------------------------------------------------------------------
Maximum Electric Current [ ]
--------------------------------------------------------------------------------------
Power [ ]
--------------------------------------------------------------------------------------
Frequency [ ]
--------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
--------------------------------------------------------------------------------------
Condensed Air Flow [ ]
--------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
--------------------------------------------------------------------------------------
18
IC MODULE BONDING RE-WORK STATION
FUNCTIONS: Reworking the problematic pieces from the welding machine.
SYSTEM SET: High precision current generator.
SYSTEM PARAMETERS:
--------------------------------------------------------------------------------------
Height [ ]
--------------------------------------------------------------------------------------
Width [ ]
--------------------------------------------------------------------------------------
Thickness [ ]
--------------------------------------------------------------------------------------
Weight [ ]
--------------------------------------------------------------------------------------
Power Supply [ ]
--------------------------------------------------------------------------------------
Maximum Electric Current [ ]
--------------------------------------------------------------------------------------
Power [ ]
--------------------------------------------------------------------------------------
Frequency [ ]
--------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
--------------------------------------------------------------------------------------
Condensed Air Flow [ ]
--------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
--------------------------------------------------------------------------------------
19
IC SMARTCARD LAMINATING MACHINE
FUNCTION: Able to laminate all card producing materials such as PC, PETG or PVC.
The temperature can be adjusted by the PLC controller, with the capacity to
control different segments in different time. Pressure can be adjusted by the
computer, with the capacity to control and show different segments in different
time. With zero pressure control system. The minimum pressure is [ ].
With automatic protection device that can turn off the machine in exceptional
cases.
SYSTEM SET: Cooling system, three separating rooms/stations, power heater, PLC
control and display system, safety protection, over pressure and low pressure
safety protection devices. Six laminating boxes, 12 laminating pads, and 66
laminating boards.
MATERIAL SPECIFICATIONS: Length x Width: [ ]
Scope of Thickness: [ ]
PRODUCTION CAPAICTY: [ ] cards/hour/station.
SYSTEM PARAMETERS:
--------------------------------------------------------------------------------------------
Height [ ]
--------------------------------------------------------------------------------------------
Width [ ]
--------------------------------------------------------------------------------------------
Thickness [ ]
--------------------------------------------------------------------------------------------
Weight [ ]
--------------------------------------------------------------------------------------------
Size of Laminating Board [ ]
--------------------------------------------------------------------------------------------
Laminating Area [ ]
--------------------------------------------------------------------------------------------
Power Supply [ ]
--------------------------------------------------------------------------------------------
Maximum Electric Current [ ]
--------------------------------------------------------------------------------------------
Power [ ]
--------------------------------------------------------------------------------------------
Frequency [ ]
--------------------------------------------------------------------------------------------
Pressure [ ]
--------------------------------------------------------------------------------------------
Pressure Precision [ ]
--------------------------------------------------------------------------------------------
Maximum Temperature [ ]
--------------------------------------------------------------------------------------------
Temperature Control Precision [ ]
--------------------------------------------------------------------------------------------
Heater Board Thickness [ ]
--------------------------------------------------------------------------------------------
Heater Board Separation Distance1 [ ]
--------------------------------------------------------------------------------------------
Stabilizing Board Surface Temperature Distribution [ ]
--------------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
--------------------------------------------------------------------------------------------
Condensed Air Flow [ ]
--------------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
--------------------------------------------------------------------------------------------
20
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:
---------------------------------------------------------------------------
Height [ ]
---------------------------------------------------------------------------
Width [ ]
---------------------------------------------------------------------------
Thickness [ ]
---------------------------------------------------------------------------
Weight [ ]
---------------------------------------------------------------------------
Power Supply [ ]
---------------------------------------------------------------------------
Maximum Electric Current [ ]
---------------------------------------------------------------------------
Power [ ]
---------------------------------------------------------------------------
Frequency [ ]
---------------------------------------------------------------------------
Water Flow Volume [ ]
---------------------------------------------------------------------------
Buffer Tank Volume [ ]
---------------------------------------------------------------------------
Cooling Water Temperature [ ]
---------------------------------------------------------------------------
21
IC SMARTCARD 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
-------------------------------------------------------------------------------------
Height [ ]
-------------------------------------------------------------------------------------
Width [ ]
-------------------------------------------------------------------------------------
Thickness [ ]
-------------------------------------------------------------------------------------
Weight [ ]
-------------------------------------------------------------------------------------
Power Supply [ ]
-------------------------------------------------------------------------------------
Maximum Electric Current [ ]
-------------------------------------------------------------------------------------
Power [ ]
-------------------------------------------------------------------------------------
Frequency [ ]
-------------------------------------------------------------------------------------
Hole Punch Area [ ]
-------------------------------------------------------------------------------------
Card Punching Location Precision [ ]
-------------------------------------------------------------------------------------
Condensed Air Pressure [ ]
-------------------------------------------------------------------------------------
Condensed Air Flow [ ]
-------------------------------------------------------------------------------------
Condensed Air Conditions [ ]
-------------------------------------------------------------------------------------
22
APPENDIX 2
SPARE PARTS & WEARING PARTS
23
CARD PUNCHING MACHINE
------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
------------------------------------------------------------------------------------------------
1 1 [ ]
------------------------------------------------------------------------------------------------
2 1 [ ]
------------------------------------------------------------------------------------------------
3 1 [ ]
------------------------------------------------------------------------------------------------
4 1 [ ]
------------------------------------------------------------------------------------------------
5 1 [ ]
------------------------------------------------------------------------------------------------
6 1 [ ]
------------------------------------------------------------------------------------------------
7 1 [ ]
------------------------------------------------------------------------------------------------
8 1 [ ]
------------------------------------------------------------------------------------------------
9 1 [ ]
------------------------------------------------------------------------------------------------
10 2 [ ]
------------------------------------------------------------------------------------------------
11 1 [ ]
------------------------------------------------------------------------------------------------
24
MODULE PLACEMENT MACHINE
------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
------------------------------------------------------------------------------------------------
1 24 [ ]
------------------------------------------------------------------------------------------------
2 30 [ ]
------------------------------------------------------------------------------------------------
3 3 [ ]
------------------------------------------------------------------------------------------------
4 3 [ ]
------------------------------------------------------------------------------------------------
5 18 [ ]
------------------------------------------------------------------------------------------------
6 3 [ ]
------------------------------------------------------------------------------------------------
7 3 [ ]
------------------------------------------------------------------------------------------------
8 3 [ ]
------------------------------------------------------------------------------------------------
9 12 [ ]
------------------------------------------------------------------------------------------------
10 3 [ ]
------------------------------------------------------------------------------------------------
11 3 [ ]
------------------------------------------------------------------------------------------------
12 3 [ ]
------------------------------------------------------------------------------------------------
13 3 [
]
------------------------------------------------------------------------------------------------
14 3 [
]
------------------------------------------------------------------------------------------------
15 9 [ ]
------------------------------------------------------------------------------------------------
16 3 [ ]
------------------------------------------------------------------------------------------------
17 9 [ ]
------------------------------------------------------------------------------------------------
18 3 [ ]
------------------------------------------------------------------------------------------------
19 3 [ ]
------------------------------------------------------------------------------------------------
20 3 [ ]
------------------------------------------------------------------------------------------------
21 3 [ ]
------------------------------------------------------------------------------------------------
22 3 [ ]
------------------------------------------------------------------------------------------------
23 3 [ ]
------------------------------------------------------------------------------------------------
24 3 [ ]
------------------------------------------------------------------------------------------------
25 3 [ ]
------------------------------------------------------------------------------------------------
26 3 [ ]
------------------------------------------------------------------------------------------------
27 3 [ ]
------------------------------------------------------------------------------------------------
28 60 [ ]
------------------------------------------------------------------------------------------------
25
IC MODULE WIRE IMPLANTING MACHINE
------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
------------------------------------------------------------------------------------------------
1 12 [ ]
------------------------------------------------------------------------------------------------
2 20 [ ]
------------------------------------------------------------------------------------------------
3 2 [ ]
------------------------------------------------------------------------------------------------
4 2 [ ]
------------------------------------------------------------------------------------------------
5 2 [ ]
------------------------------------------------------------------------------------------------
6 2 [ ]
------------------------------------------------------------------------------------------------
7 2 [ ]
------------------------------------------------------------------------------------------------
8 2 [ ]
------------------------------------------------------------------------------------------------
9 6 [ ]
------------------------------------------------------------------------------------------------
10 2 [ ]
------------------------------------------------------------------------------------------------
11 2 [ ]
------------------------------------------------------------------------------------------------
12 60 [ ]
------------------------------------------------------------------------------------------------
13 36 [ ]
------------------------------------------------------------------------------------------------
14 2 [ ]
------------------------------------------------------------------------------------------------
15 2 [ ]
------------------------------------------------------------------------------------------------
16 4 [ ]
------------------------------------------------------------------------------------------------
17 2 [ ]
------------------------------------------------------------------------------------------------
18 2 [ ]
------------------------------------------------------------------------------------------------
19 2 [ ]
------------------------------------------------------------------------------------------------
20 2 [ ]
------------------------------------------------------------------------------------------------
21 16 [ ]
------------------------------------------------------------------------------------------------
26
IC MODULE WELDING AND REW0RKING MACHINE
------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
------------------------------------------------------------------------------------------------
1 24 [ ]
------------------------------------------------------------------------------------------------
2 30 [ ]
------------------------------------------------------------------------------------------------
3 3 [ ]
------------------------------------------------------------------------------------------------
4 3 [ ]
------------------------------------------------------------------------------------------------
5 18 [ ]
------------------------------------------------------------------------------------------------
6 3 [ ]
------------------------------------------------------------------------------------------------
7 3 [ ]
------------------------------------------------------------------------------------------------
8 3 [ ]
------------------------------------------------------------------------------------------------
9 12 [ ]
------------------------------------------------------------------------------------------------
10 3 [ ]
------------------------------------------------------------------------------------------------
11 3 [ ]
------------------------------------------------------------------------------------------------
12 3 [ ]
------------------------------------------------------------------------------------------------
13 18 [ ]
------------------------------------------------------------------------------------------------
14 9 [ ]
------------------------------------------------------------------------------------------------
15 3 [ ]
------------------------------------------------------------------------------------------------
16 3 [ ]
------------------------------------------------------------------------------------------------
17 180 [ ]
------------------------------------------------------------------------------------------------
18 18 [ ]
------------------------------------------------------------------------------------------------
19 3 [ ]
------------------------------------------------------------------------------------------------
20 3 [ ]
------------------------------------------------------------------------------------------------
21 300 [ ]
------------------------------------------------------------------------------------------------
27
IC MODULE LAMINATING MACHINE AND COOLING SYSTEM
------------------------------------------------------------------------------------------------
NO. QTY. Spare Parts' Specifications
------------------------------------------------------------------------------------------------
1 132 [ ]
------------------------------------------------------------------------------------------------
2 24 [ ]
------------------------------------------------------------------------------------------------
3 12 [ ]
------------------------------------------------------------------------------------------------
4 4 [ ]
------------------------------------------------------------------------------------------------
5 60 [ ]
------------------------------------------------------------------------------------------------
6 36 [ ]
------------------------------------------------------------------------------------------------
7 4 [ ]
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8 4 [ ]
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9 4 [ ]
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10 12 [ ]
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11 20 [ ]
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12 40 [ ]
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13 40 [ ]
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14 20 [ ]
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15 4 [ ]
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16 4 [ ]
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17 8 [ ]
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18 4 [ ]
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19 16 [ ]
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20 4 [ ]
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21 40 m [ ]
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22 4 [ ]
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23 4 [ ]
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28
IC MODULE CARD PUNCHING MACHINE
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NO. QTY. Spare Parts' Specifications
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1 1 [ ]
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2 1 [ ]
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3 1 [ ]
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4 1 [ ]
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5 3 [ ]
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6 1 set [ ]
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7 1 set [ ]
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8 5 m [ ]
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9 1 set [ ]
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10 1 set [ ]
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11 1 set [ ]
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12 1 [ ]
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13 1 [ ]
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14 1 [ ]
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15 1 [ ]
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16 1 set [ ]
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29
APPENDIX 3
TECHNICAL DOCUMENTATION LIST
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Accompanied documentation include:
1. Equipment Approval Certificate and Quality Certificate
2. Operation, Repair, Usage and Maintenance Manuals of Each Equipment
(including laboratory instruments)
3. Mechanical Assembly Illustrations
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
31
APPENDIX 4
TOOL LIST
32
Appendix 5
EQUIPMENT ACCEPTANCE DETAILS
33
I. GENERAL PRINCIPLES
Materials used during the Acceptance shall be PETG, which can demonstrate PC and
PVC. Moulds used shall be moulds by Xxx Xxxx Company. Production rate shall be
based on arrangement of 4 x 8 cards. Acceptance shall be based on printed cards.
1.1 According to the Technical Agreement Appendix 1 "Equipment Functions
and Technical Specifications", a test run of the equipment and its
production capacity, and examination of the production acceptance
rate shall be performed. If necessary, Party A shall, based on the
Technical Agreement Appendix 1 and the ISO and IEC standards, and the
actual demands of the project, request that additional test runs be
performed.
1.2 If necessary, Party A shall, at the time of preliminary inspection
and acceptance of the equipment upon delivery, request that Party B
perform a second inspection according to the specifications of the
"Equipment Inspection Details and Results".
1.3 Equipment items to be inspected shall include:
o Information and material accompanied with the equipment
o Appearance
o Equipment functions
o Equipment system
1.4 Inspection shall be performed in two stages:
1.4.1 Preliminary inspection upon delivery of equipment
1.4.2 Inspection and acceptance of the equipment
2. METHODS AND PROCEDURES OF INSPECTION AND
ACCEPTANCE
2.1 Preliminary Inspection of the Equipment
To be performed in the shop of Party B. Items to be inspected
include:
o Equipment functions
o Equipment system
2.1.1 Inspection of Equipment Functions
Hole Punch Machine
34
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 (module
illustration and explanation be provided before October 10)
b. Smoothness of the hole punch and pick and place functions. Any
blocking situations due to halting of these functions
c. Function of adjusting the placement of the module
d. Smoothness of auto feeding and receiving pieces
e. Trouble shooting alarming system
f. Proper operation of the equipment display system
Wire Implanting Machine
a. Whether the ultrasonic rate meets the standard of [ ]
times/round
b. Adjustment of the position, size, forms and distance of the wire coil
c. Inspection and record of the frequency of wire breaking during
operation
d. Proper operation of the monitor system
e. Smoothness of auto feeding and receiving pieces
f. Trouble shooting alarming system
Welder
a. Inspect by samples, whether the pulling force meeting the standards
[
]
b. Whether the reader is able to check the success of the welding job
c. When welding is not successful, whether the bad card marker is able
to xxxx on the corresponding card
d. Function of auto polishing welded pieces
e. Proper operation of the monitor system
f. Adjustment and display functions of the power generator
g. Smoothness of auto feeding and receiving pieces
h. Automatic indication of replacement of welded pieces
i. Proper operation of the equipment display system
j. Trouble shooting alarming system
Laminator
a. Temperature control precision, when between [ ], should
be less than [ ]; when between [ ], should
be less than [ ]
35
b. Pressure control precision [ ]
c. PLC device, and functions of adjusting the parameters of pressure,
temperature, etc.
d. High temperature up to [ ]
e. Whether machine will be automatically shut off when operation is not
in compliance with rules
f. Proper operation of the display system of the equipment
g. Trouble shooting the alarming system
Card Punching Machine
a. Trouble shooting any layered pieces during the auto feeding process
b. Smoothness of the punch card edge (Based on the ISO7810 standards, PC
material excluded)
c. Computation function
d. Positioning precision [ ]
e. Trouble shooting alarming system
f. Proper operation of display system of the equipment
2.1.2 Preliminary Inspection of the Equipment System
The stability, production capacity and production acceptance rate of the
equipment shall be tested. Fake modules shall be used for steady
operation for four hours, and real modules shall be used for two hours.
Since the equipment includes separate machines, actual operation can be
performed units by units.
The four-hour operation using the fake modules and the two-hour operation
using the real modules must be run continuously. The time spent in
adjusting the software and technical parameters, and fixing the hardware
problems during the test run period must be included in the operation
time. Adjustment contents and frequency must be recorded. All products
(excluding test products during the repair time) shall be included in the
total production number. The one-time acceptance rate of the pick and
place machine, wire implanting machine and the welding machine shall be
at 98% or above. Each equipment shall produce 2500 cards/hour. The total
acceptance rate of the final product shall be over 97%.
a. Inspect the Inspection Certificate (including inspection details and
results) and Quality Certificate provided by Party B.
36
b. Acceptance Rate of Production
The following items and indices shall be used to inspect the acceptance
rate of the products.
(1) N1 Welding Acceptance Rate
Multimeter shall be used to inspect the fake module card (those that are
rejected must be specified with reasons). Reader shall be used to test the
real module card.
The computing acceptance rate shall be N1.
(2) N2 Antenna Registration Acceptance Rate
The index of Direction X (the direction of the long edge of the card)
shall be [ ]; of Direction Y, [ ]. Inspect by
sample, at [ ], of the hole punch cards. The computing acceptance
rate shall be N2x and N2y.
(3) N3 Punch Card Acceptance Rate (the inspected surface shall be the
punch marked surface) That is the variation of the card's printed message
center and the card geometry center. The index of Direction X (the
direction of the long edge of the card) shall be [ ]; of
Direction Y, [ ]. Inspect by sample, at [ ], of the hole
punch cards. The computing acceptance rate shall be N3x and N3y.
(4) N4 Punch Card Inclination Acceptance Rate The index shall be whether
the long edge of the card is parallel to the level of the printed message.
The level should extend to both ends. The distance of the two ending
points toward the respective card edges shall be less than [ ].
Inspect card by sampling, at [ ]. The computing acceptance rate
shall be N4.
(5) N5 Card Tilting Acceptance Rate
The index shall be [ ] mm (excluding thickness of card, see ISO 7810).
Inspect the punch card by samples, at [ ]. The computing acceptance
rate shall be N5.
(6) N6 Card Stripping Strength Acceptance Rate The index shall be [ ]
Inspect [ ] pieces of punch card. The computing acceptance rate shall
be N6.
Total Acceptance Rate: N[u]1 x N[u]2 x N[u]3 x N[u]4 x N[u]5 x N[u]6 >= 97%.
2.3 Inspection and Acceptance of Equipment
To be performed at the shop of Party A. Items to be inspected include:
o Information and material accompanied with the equipment
o Appearance
o Equipment functions
o Equipment system
2.3.1 INSPECTION OF THE INFORMATION AND MATERIALS
37
ACCOMPANIED WITH THE QUIPMENT
Verify with Appendix I of the Agreement, "List of Production Line
Equipment and Laboratory Devices"
Verify with Appendix 2 of the Agreement, "Equipment Parts and Consumption
Parts"
Verify with Appendix 3 of the Agreement, "List of Technical Documents"
Verify with Appendix 4 of the Agreement, "List of Maintenance Tools"
Verify with the approved raw materials provided by Party B for 54-hour
test run operation use.
2.3.2 INSPECTION OF APPEARANCE
Inspect the frame and the door. The structure of the equipment shall be
solid and the door switches shall be acute.
Inspect whether the equipment has been bumped or damaged. The cover of the
cover shall be in perfect condition. The paint of the cover shall be
bright and perfect. The plated surface of the conveyance section of the
equipment shall be polished, bright, with no defects or xxxxx spots.
2.3.3 INSPECTION AND ACCEPTANCE OF THE EQUIPMENT FUNCTION
Inspect the Inspection Certificate (including inspection details and
results) and Quality Certificate provided by Party B.
Inspect the equipment functions based on 2.1.1.
2.3.4 INSPECTION AND ACCEPTANCE OF THE EQUIPMENT SYSTEM
Use fake modules for steady operation for six days, eight hours a day. Use
real modules on the 7th day for six hours. Since the equipment includes
separate machines, actual operation can be performed units by units.
During the test run period, the time spent in adjusting the software and
technical parameters, and fixing the hardware problems period shall be
included in the operation time. Adjustment contents and frequency must be
recorded. Between intervals during the test run period, for example, at
noon or in the evening when the machine is turned off, no adjustment of
software or repair of hardware shall be done. All products (excluding test
products 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
38
machine and the welding machine shall be at 98% or above. The total
acceptance rate of the final product shall be over 97%.
a. Computation of Production Capacity
After test running 54 hours, the computed average production capacity
shall meet the standard of 2500 cards/hour.
b. Production Acceptance Rate
Items and indices same as 2.1.2
c. Schedules:
1st to 6th day:
a.m. - using fake modules, operate the machine continuously for
four hours
p.m. - using fake modules, operate the machine continuously for
four hours
The 7th day:
Using the real modules, - using real module, operate the machine
continuously for six hours
39
APPENDIX 6
PETG SPECIFICATIONS FOR ACCEPTANCE OF EQUIPMENT
1. Specifications of the PETG material used during the 54 hour test run period:
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Production Number Thickness ( m) Size (MD x MD) Quantity (kg)
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White PETG [ ] [ ] 600
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[ ] [ ] 600
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Transparent PETG [ ] [ ] 300
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2. Party B shall ensure that the quantity, performance index and technical
support provided should be the same as provided to Ministry of Security
Division I.
40
