Article 1 (Products and Processing Charge)

B process and delivers the finished product to A on the basis of the following Consignment Processing(CMT-Cutting, Making, Trimming)Charge.

Article 2 (Raw Materials and Subsidiary Materials)
(1) A supplies B the following raw materials and subsidiary which are necessary for manufacturing the products under Article 1 at non-commercial value.

(2) B shall use the above materials only to manufacture and process the products described at Article 1, and shall not take out them outside factory without permission A.

Article 3 (Management of Raw and Subsidiary Materials)
(1) B shall admit that the materials under the previous Article are the property of A and shall not hand them over others, shall not exchange them for others and shall maintain them as a bona-fide manager.

(2) B shall take an insurance to the insurance maned by A, at B's expenses for the raw and subsidiary materials and products being preserved.

Article 4 (Processing)
(1) B shall make the products in accordance with the samples & specifications presented by A and B shall obtain prior approval of A to any small changes.

(2) B shall nor make any other sub-consignment processing contract with others without A's approval.

(3) A can give B technical instruction or working orders at any time, relating to processing, packing and transporting the products, and B shall follow them.

Article 5 (Shipment)
(1) B, manufacturing the products Article 1, shall make custom clearance and ship them after designated inspection by A's order in accordance with the shipping schedule in Letter of Credit.

(2) A shall bear all costs and charges arising from warehouse to shipment.

Article 6 (Payment of Processing Charge)
A shall pay the processing without hesitation as B presents bill of lading and shipping documents required by Letter of Credit.

Article 7 (Claims)
On receiving disputes or complaint by buyer arising from B's export of the products. A shall notify it in writing to B and when such claims are to be certified as resulting from B's faults, B shall take all liabilities. In the case, A shall make an effort to reduce the claims as much as possible in consultation with B.

Article 8 (Arbitration)
All disputes, controversies, or differences which arise between the parties out of or in relation to or in connection with this contract or for the breach thereof, shall be finally settled by arbitration in Seoul, xxxxx in accordance with Commercial Arbitration Rules of the xxxxx Commercial Arbitration Board and under the Laws of xxxxx. The award rendered by arbitrator(s) shall be final and binding upon both parties concerned.

After both parties make and sign two copies of contract, A keeps original copy stamped on and B keeps the duplicate.