國際專利許可契約

甲方:_________

乙方:_________

鑒於

乙方擁有契約所述專利技術;

乙方有權,並且也同意將專利技術的使用權、製造權和契約產品的銷售權授予甲方;

甲方希望利用乙方的專利技術製造並銷售契約的產品;

雙方授權代表經友好協商,同意就以下條款簽訂本契約。

第一條 定義

本契約下列詞語的含義:

1.1 專利技術,系指乙方目前擁有的或未來獲得的和/或有權或可能有權控制的,或在本契約有效期間在世界任何國家許可轉讓的,適用於或可能適用於製造本契約產品的專利和專利申請。

1.2 契約產品,系指本契約附屬檔案二中規定的產品及其改進發展的產品。

1.3 甲方系指_________,或者該公司的法人代表、代理或財產繼承者;

1.4 乙方系指_________,或者該公司的法人代表、代理或財產繼承者;

1.5 契約工廠系指生產契約產品的場所,即_________;

1.6 備件,系指用以代替契約產品或其任何部分的備用件;

1.7 部件,系指乙方隨時書面允許甲方生產和銷售的契約產品的構件及零配件;

1.8 技術資料,系指列於附屬檔案一與製造和維修契約產品有關的工程、製造及原始資料,包括與製造設備、工具和裝置有關的圖紙、藍本、設計圖表、材料規格、照片、影印資料和一般資料,設計及其說明書等。但上述資料僅限於乙方擁有的資料和甲方用於本契約業務活動的資料;

1.9 淨銷售價,是指在扣除契約產品的包裝費、安裝費、運輸費、商業和數量折扣、佣金、保險旨和稅費之後的發票金額;

1.10 契約生效日,系指本契約雙方管理機構和有關權力機關中最後一方批准契約的日期。

第二條 契約的內容和範圍

2.1 甲方同意從乙方獲得,乙方同意向甲方轉讓契約產品的專利技術。這種技術應與乙方最新產品的技術完全一致。

2.2 乙方以非獨占方式許可甲方在中國設計和製造契約產品,以及銷售和出口產品的權利。

2.3 乙方須向甲方提供與契約產品有關的專利技術資料和樣機所需的配件,其具體內容和支付時間,詳見本契約附屬檔案二。

2.4 本契約產品不包括乙方外購件的專利技術,但乙方必須問甲方提供外購件的樣本和技術說明資料與製造廠商的名稱。

2.5 乙方有責任接收、安排甲方赴乙方培訓的技術人員,乙方應設法使其掌握上述契約產品專利技術。(詳見本契約附屬檔案五)

2.6 乙方負責自費派遣技術人員赴甲方進行技術服務。(詳見本契約附屬檔案六)

2.7 如甲方需要,乙方同意以最優惠的價格向甲方提供契約產品的零件、材料和配件等。具體內容雙方另行協商

2.8 乙方同意甲方有權使用其商標,在契約產品上亦可以採取雙方的聯合商標、或者標明根據售證方的許可製造字樣。

第三條 契約價格

3.1 按照第二條規定的內容和範圍。本契約採用提成方式計算價格,計價的貨幣為_________。

3.2 本契約提成費的計算時間從契約生效之日後的第_________個月開始,按日曆年度計算,每年的十二月三十一日為提成費的結算日。

3.3 提成費按當年度契約產口銷售後的淨銷售價格計算,提成率為_________%,契約產品未銷售出去的不應計算提成費。

3.4 在提成費結算日後10天之內甲方應以書面通知的形式向乙方提交上一年度契約產品的銷售數量、淨銷售額和應支付的提成費,淨銷售額和提成費的具體計算方法詳見本契約附屬檔案三。

3.5 甲方依據本契約的專利許可,銷售的契約產品一經付款則視為貨已售出。

3.6 若在交付專利權使用費後,已售契約產品被退回或折價,甲方有權在以後支付的專利權使用費中扣除因此而多支付的專利權使用費。

3.7 乙方如需查核甲方的帳目時,應在接到甲方依上述第3.4款規定開出的書面通知後10天內通知甲方、其具體的查帳內容和程式詳見本契約附屬檔案四。

第四條 支付條件

4.1 本契約第三條中規定的提成費,甲方將通過_________銀行(此處為甲方的業務銀行)和_________銀行(此處為乙方的業務銀行)支付給乙方,支付中使用的貨幣為_________。

4.2 乙方在收到甲方按第3.4條的規定發出的書面通知後應立即開具有關的單據,甲方在收到乙方出具的下列單據後三十天內。經審核無誤,即支付提成費給乙方:

(1)提成費計算單一式四份;

(2)商業發票一式四份;

(3)即期匯票一式一份。

4.3 按本契約規定,如乙方需要向甲方支付罰款或賠償時,甲方有權從上述支付中直接扣除。

第五條 技術服務和培訓

5.1 技術服務

(1)乙方在契約有效期內派遣一名技術專家到甲方,對契約產品的圖紙和技術資料進行解釋,並就產品設計、製造、調試和檢驗,以及維修等方面進行技術指導,以使甲方在保證契約產品性能的情況下,能儘快採用國產的材料和元器件,實現契約產品的生產。

(2)乙方在契約有效期內分兩次派遣技術人員赴甲方進行技術服務,共_________人日。

(3)第一次技術服務在契約生效後第六個月,乙方派遣技術人員1人赴甲方工廠,提供技術指導_________日。

(4)第二次技術服務在契約產品驗收期間。乙方派技術人員1人赴甲方工廠,提供技術服務,時間為_________日。

(5)乙方負擔其人員的旅差費。甲方負擔由駐地到工廠的交通工具和膳宿費。

5.2 技術培訓。

(1)乙方負責對甲方技術人員進行培訓,使甲方受訓人員掌握契約產品設計,性能測試,加工工藝,裝配工藝和質量檢查等技能,使甲方能用乙方提供的資料和專門知識,在契約工廠製造出與乙方產品質量相同的產品。乙方應設法安排甲方受訓人員參觀製造契約產品外購件的生產過程和契約產品的主要用戶。

(2)甲方受訓人員在協定期間分兩批,_________人日以內(翻譯除外)赴乙方接受培訓。

(3)首批培訓時間為契約生效後的第三至第四個月,甲方派技術人員_________人,翻譯_________人到乙方工廠接受為期_________人日(每周5天工作日)的培訓。內容為契約產品的設計和製造工藝。

(4)第二批培訓人員的培訓時間為契約生效後的第八至第九個月。甲方派技術人員_________人,翻譯_________人到乙方工廠接受為期_________人日(每周5天工作日)的培訓,培訓內容為契約產品的設計、加工工藝、裝配工藝和機器的調試。

(5)甲方負擔受訓人員的旅費。在乙方受訓期間的膳宿費及駐地和工廠之間的交通工具由乙方負責提供。

第六條 技術資料

6.1 以乙方應按本契約附屬檔案二規定的內容和時間,在_________交付技術資料。

6.2 _________的郵戳日期,為技術資料的實際交付日期。甲方將帶有到達印戳日期的空運提單影印本1份寄給乙方。

6.3 在每批技術資料發運後24小時內,乙方應將契約號、空運提單號、空運報單日期、資料項目、件數、重量、航班號和預計抵達日期用電報或電傳通知甲方。同時將空運提單和技術資料詳細清單各一式2份寄給甲方。

6.4 若技術資料在空運中丟失、損壞、短缺,乙方應在收到甲方書面通知後30天內,免費外寄或重寄給甲方。在甲方收到技術資料後60天內,如果沒有以書面形式提出資料不全或增補要求,則視為甲方驗收。

6.5 技術資料採用英文,計量單位以公制表示。

第七條 考核與驗收

7.1 契約產品的第一台樣機,由甲、乙雙方組成的聯合考核小組,按附屬檔案七規定的時間和內容進行考核。如果符合附屬檔案一規定的技術要求,即可驗收,並由雙方代表簽署契約產品考核驗收合格證書一式4份,雙方各執兩份。

7.2 如果契約產品的技術性能達不到規定的技術標準,雙方應友好協商,共同研究,分析原因,採取措施,消除缺陷,進行第二次性能考核。考核合格後,雙方簽署考核合格證書。

7.3 如果第一次考核不合格是乙方責任,乙方應自費再次派遣技術人員進特第二次考核。

7.4 經過第二次考核仍不能合格驗收,若責任在於乙方,剛乙方須賠償甲方遭受的直接損失。並採取措施艄除缺陷,進行第三次考核。

7.5 經過第三次考核仍不合格,如系乙方責任,則甲方有權終止契約,並接第九條的規定處理。若系甲方責任,則由雙方協商契約進一步執行的問題。

第八條 技術改進

8.1 乙方提供的技術資料,如有不適合甲方生產條件的(如設計標準、原材料、外購配件及共他生產設備等一,乙方有責任幫助甲方修改技術資料,閃加以確認。在不影響契約產品性能情況下,應採用中國產的原材料、配套元器件和設備。

8.2 在契約有效期內,雙方對契約產品的任何改進和創新,都免費將改進或創新的技術資料提供給對方。

8.3 改進或創新的技術所有權屬於改進或創新一方,另一方不得對其申請專利或將其轉讓給第三者。

第九條 保證和索賠

9.1 乙方保證所提供的技術資料是乙方經過實際使用的最新技術資料,並保證向甲方及時提供任何改進和發明的技術資料。

9.2 乙方保證所提供的技術資料是完整的、正確的、清晰的,並保證按時交付。

9.3 如果乙方提供的技術資料不符合第六條規定,乙方必須在收到甲方書面通知後30天內免費將所缺的技術資料,或清晰、正確的資料寄給甲方。

9.4 如乙方的技術資料不能按本契約附屬檔案二規定的時間交付,乙方則須按下列比例支付罰款給甲方:

(1)遲交1至4周,罰款為契約總價的_________%;

(2)遲交5至8周,罰款為契約總價的_________%;

(3)遲交超過8周,罰款為契約總價的_________%;

9.5 乙方按本條規定被罰款時,並不解除其繼續交付技術資料的義務。

9.6 如果動方遲交技術資料6個月以上,甲方有權終止契約。乙方須將甲方已給交付的全部金額,並加年利_________%的利息,一併退還甲方。

9.7 由於乙方責任,驗收不合格,造成甲方有能正常投產而終止契約時,乙方應退還甲方已經支付給乙方的全部金額,並加年利_________%的利息。

9.8 如因乙原因,產品部分性能指標沒能達到契約產品的規定時,機具體情況,乙方須按契約總價_________%予以賠償,但是,若因甲方原因產品沒能達到性能指標時,甲方應按契約規定支付金部金額。

第十條 保密

10.1 乙方根據本協定所提供的一切圖紙、設計、說明書及其他技術資料,甲方均須嚴格保密;未得到乙方的書面同意,不得以任何方式出售、轉讓或泄露給任何人,但不包括甲方為生產契約而使用技術資料的雇員。但是,甲方可以向分包契約人提供生產契約產品部件所必須的技術資料,分包人須書面保證對其所得到產技術資料承擔嚴格的保密義務。

10.2 若上述技術資料由乙方或任何第三方部分或全部公開,則甲方對已公開的技術不再承擔保密義務。

10.3 本契約終止後,甲方有權使用乙方所提供的專利,即甲方可以繼續設計、製造、使用、銷售和出口契約產品。

第十一條 侵權

11.1 乙方保證,它是依本契約條款轉讓給甲方的專利權的合法所有人,在法律上享有向甲方轉讓專利權的權利。若發生侵犯任何第三者權利的事件,則乙方應對侵權事件負責,並承擔由此而產生的全部法律和經濟責任。

11.2 本契約附屬檔案一列明乙方關於契約產品的專利和專利申清。契約生效後一個月內,乙方將向甲方提供2份專利證書和專利申請的影印本。

第十二條 稅費

12.1 凡因履行本契約而發生在甲方國家以外的一切稅費,均由乙方負擔。

12.2 乙方因履行本契約而在中國境內獲得的收入,必須按中國稅法納稅。

第十三條 不可抗力

13.1 簽約的任何一方,由於戰爭、嚴重水災、火災、颱風、地震以及雙方同意的其他不可抗力事故而無法按期執行契約時,則可延長契約的期限,延長期相當於事故所影響的時間。

13.2 受影響的一方應儘快將發生不可抗力事故的情況以電傳或電報通知對方,並於此天內以航空掛號郵件將有關當局出具的證明檔案提交另一方確認。

13.3 如不可抗力事故延續到120天以上,雙方應通過友好協商儘快解決契約繼續執行的問題。

第十四條 仲裁

14.1 因執行本契約所發生的或與本契約有的一切爭議,雙方應通過友好協商解決。如經協商仍達不成協定時,則應提交仲裁解決。

14.2 仲裁將在_________進行,由_________仲裁院根據該院的章程進行仲裁。

14.3 仲裁的裁決是終局的,對雙方均具有約束力。

14.4 仲裁費用由敗訴方負擔。

14.5 若仲裁的內容是契約的部分條款,契約的其他條款在仲裁期間應繼續執行。

第十五條 適用法律

本契約的解釋和執行以中華人民共和國的法律為依據。

第十六條 契約有效期

16.1 .本契約由雙方代表於_________年_________月_________日簽,契約簽訂後,由各方分別向本公司管理機構或本國政府當局申請批准,以最後一方的批准日期為契約生效日期。雙方應盡力在60天內獲得批准,用電傳通知對方,並用郵件確認。若本契約自簽字之日起6個月仍不能生效。雙方均有權解除契約。

16.2 .本契約效期十年,期滿時自動失效。

16.3 .本契約期滿時,雙方發生的未了債務不受契約期滿的影響,債務人應向債權人繼續支付未了債務。

本契約有中、英兩種文本。當對其中條款的解釋產生異議時,以中文本為準。

甲方(蓋章):_________乙方(蓋章):_________

代表(簽字):_________代表(簽字):_________

簽約地點:_________簽約地點:_________

_________年____月____日_________年____月____日

附屬檔案

附屬檔案一 專利資料的名稱、內容和申請情況

附屬檔案二 契約產品的型號、規格和技術參數

附屬檔案三 提成資的起算時間和計算方法

附屬檔案四 出讓方查帳的內容和方法

附屬檔案五 對甲方人員的培訓計畫

附屬檔案六 乙方派遣專家的技術服務計畫

附屬檔案七 產品考核驗收辦法

party a :_________

party b:_________

whereas

the patent right which said in the contract os owned by party b.

party b has the right and agreed to grant paryt a the rights to use,manufac-ture and sell the contract products of the ppatented technology;whereas party a hope to use the patented technology of party b to manufacture and sellthecontract products;

both parties au thorized representatives, through friendly negotiation, have agreeto en-ter into this contract under the ertms as stipulated below;

article 1 definitions

for the purpose of this contract, the following terms have the following meanings;

1.1 patented technologymeans those letters patent, and applications thereforpresently owned or hereafter acquired by party b and/or which party bhas or may have therigt to control or grant license thereof during the term hereof in any or all countriesof the world and which are applicable to or may be used in the manufacture of cotract products.

1.2 contract productsmians the products described in appendis2 annexed hereto,to-gether with all improvements and modifications thereof or developments with respectthere-to.

1.3 patty ameans_________. or his legal representative, agent and inhetitorto theproperty of the company.

1.4 party b means_________,or his legal representative,agent and inheritor,to the property of the company.

1.5 the contraet factory means the place which party party a manufactures thecontract products. that is_________.

1.6 spare p`menas replacement parts for contract products or for any part there-of.

1.7 componentsmeans those components and parts of contruct produets which par-tyb has agreed or may from time to time agree in writing to permit party a to manufactureor sell.

1.8 technical documentsmeane engineering, manufacturing and originatinginforna-tion relatiog to the manufacture and servicing of contract products, includingdrawings, blueprints,design sheets, material specifications, photographs, photostats and general da-ta, and designs and pecifications relating to manufacturing contract producdts, tools and fix-tures, but includes,however, onlysuch information as is available to party b and applicable to the operations of party aunder this contract which detaile as per appendis 1 to the con-tract.

1.9 net selling price menans remaining amount of invoice value of thecontractprod-ucts, after deduction of packahing, installation and freight charges,trade and discount,commission,insurance and taxes and duties. if any, directlyapplicable to the prdduct.

1.10 the date of coming into effect of the contractmeans the date of raificationofthe contract by the managing constructure of the parties or by the competentauthorities ofboth parties, whichever comes later.

article 2 scope of the contract

2.1 party a agrees to acquire from party b and party b agrees to transfer to party athe patented technology for contract products. such patented technology shall be in exactaccordance with the technologyof party bs latest products.

2.2 party b grants party a the non-exclusive right to design and manufacturecontractproducts in china and to markdt the said products in china and abroad.

2.3 party b shall be responsible& nbsp;to provide party a with documents relevant to thesaidpaptents and with special fittings of the samplemachine their concrete details andschedule ofdelivary being set out in appendix 2 to the contract.

2.4 the contract does not cover the patented technology for the parts from othercoun-tres.but party b shall provide party a with the specimens and the tecincal specifications andthe name of the manufacturers of the parts.

2.5 party b shall be responsible for the training of party as technicl personnelin party bs relevant facilities and also do its best to enable party as technicalpersonnel to masterthe patented technplogy of the aforesaid contract product (details asper appendix 5 to the contract).

2.6 party b is obliged to send at its own expense technical personnel to party asfacto-ry for technical service (details as per appendix 6 to the contract).

2.7 if it is required by party a. pafrty b shall be under an obligation to provideparty aat the most favourable price wity parts, accessories, raw materials, fittings,etc. for con-trade mark the two parties.

2.8 party b grants party a the rignt to use party bs trade mark, and use thecombinedtrade,mark of both parties or mark the wouding production according tolicensors licenceon the contract produets.

article 3 price of the contract

3.1 price of the contract shall be calculated on royalty in accordance with thecontent and scope sipulated in artice 2 to the contract and shall be paid in_________.

3.2 royalty under the contract shall be paid from_________months after the the dateofcoming into effect of the contract in terms of calendar year. the date of settlingaccountsshallbe 31,december of each year.

3.3 royalty at the rate of_________% (_________percent ) shall be calcuated interms ofnet selling price after the contract products are sold in this year,the contractproducts which not sold shall not be included.

3.4 the report of the selling quantity, net selling amount of the contract productsandroyalty which should be paid in last year shall be submitted to party b in writtenform by party a within 10 (ten) days after the date of settling accounts to royalty. thespecific methods which calculatenet selling amountand royalty are detailed in appendix 3to the contract.

3.5 the contract products sold by party a pursuant to the patent license hereingranted shall be deemed to have been sold when paid for.

3.6 if the contract products are returned or allowances made thereon after the royaltythereon has been paid party a shall be entitled to take ppropriate erdit for suchoverpay-mentagainst royalties thereafter accruing.

3.7 if party b demand to audit the accounts of party a,it shall no tice party a withinl0(ten) days after receiving the written notice of party a in accordance with article

3.4 of the contract.the speeific content and procedure of auditing accounts aredetailed in appendix 4 tothe contract.

article 4 couditions of payment

4.1 royalty stipulated in section 3 to the contract shall be effected by party a toarty bthrough the bank_________(here it is the business bank of party a, and the bank_________(here it is the busines bank of party b), payrnent shall be settled in_________.

4.2 party b shall immediately issue the related documents ofter receiving the writtennotieesubmitted by party a in accordance with artiele 3.4 of the contract, the royaltyshall be paid by party a to party b within 30(thirty) days after party a has received thefol-lowing documents whichare provided by party b and found them in confoumity with thestipulations of thcontract.

(1)four copies of the statement on calculation of the royalty;

(2)four copies of the commercial invoice;

(3)two copies of the sight draft.

4.3 party a shall have the right to deduct from any of the above mentioned payment theppenalties and/or compensations which party b shall pay in accordance with thestipulations ofthe contract.

article 5 technical service and training

5.1 technicgl service

(1)during the validity period of the contract, party b shall send a specialist topartya`s factory to explain the drawings and technical documents and to provide teehnicalservise indesigning.manufacturing, adjustment,inspection and maintenance of thecontracted pro-duet so to eheble party a to use, as fast as possible, home materialsand raw components without affeeting the properties of the products so manufactured.

(2)party b shall twice send its specialists to party as factory to provldetechnicalservice for a total of 30 working days man.

(3)the first technical service sha1l start in the sixth month after the contraytcomesinto effect. party b shall send a specialist to party as factory to providetechnical service for 12 working days/man.

(4)the second technical service shall start during the verification of thecortractedproduets.parth b shall send a specialist to party as factory to providetechnical servicefor18 working days/man.

(5)party b shall, for its specialists, bear their travelling expensee. parthashall be responsible for boarding and lodging and affording the means of conveyance fromthe lodgingplace to the factoty.

5.2 technical training

(1)party b shall train party as technical personnel so as to enable them tomasterparty bs design, performance test and technology in machining, erection andinspection of the contracted products, so that party a can use the technical documentsand know-how supplied by p arty b toproducethe same products in the contract factory. party b shall do its best to arrange for party as personnel to visit the majorusersand the manufacturing process of the components from other countries of the contractedproducts.

(2)party a shall send twice its technical personnel to party bs factory fortraining, andthe total number of the participants shall not exceed 320 days/man (excluding the inter-preter).

(3)the first training shall be from the third to the fourth month after thecontract comes into effect. there shall be 4 technical persons and an interpreterto besent to party b for training for 16o working days/man (5 days week). the training shallcover the design of the contracted products and manufacturing technology.

(4)the second training shall be from the eighth to the nineth month. party a shallsent 4 technical persons and an interpreter to party bs factory for training for 160working days/man (5 days per week). the training shall cover the designing, themanufacturing technology,erection and adjustment of the contracted products.

(5)party a shall bear the travelling expenses of its trainees; party b shallprovide party as trainees free of charge with boarding, lodging and means ofconveyance for travel- ling between the lodging place and the factory.

article 6 technical documents

6.1 party b shall, according to the delivery schedule and details stpulated inappendix 2to the contract, deliver the documents at_________.

6.2 the date stamped by the air transportation ageney at_________,shll be takenas the actual date of delivery paryt a shall send to party b a photostat copy of theairconsignment note shwing the stampde date of arrival.

6.3 within twenty-four hours after the despatch of each lot of the technical documente,party b shal1 notify party a by cable or telex of the contract number, number and dateof the air consignment note, items of the documents, number of pieces, airmail toparty a two copies of each of the air consignment note and detaikled list of thetechnical documents.

6.4 if the technical documents are foumd lost, damaged or mutilated during airtrans-portation, party b shall supply party a free of charge with a second lot ofdocuments within thechortest possible time but not later than thirty days after it hasreceived from party a the writtennotice. within sixty days after party a has receivedthe documents from party b,if party a does not declare the shortage and request tocover the same, it is considered asa-cepted.

6.5 the technical documents shall be in english and based on metric system ofmeasure-ments.

article 7 verification and acceptance

7.1 the verification test on the first samplemachine of the contracted&nbs p;product shallbe carried out by the joint group consisting of party as and party bs representativesaccordingto the schedule and contents stipulated in appendix 7 to the contract. lf theperformance of the contracted product is in conformity with the technical specificationsstipulated in ap-pendix 1, such testshall be considersd as qualified and therepresentatives of both parties shll sign the inspection and testing certificate for theproper performance of the contracted product in quadruplicate, 2copies for each party.

7.2 if the verification test demonstrates that the performance of the contractedprod-uct isnot in conformity with prescribed technical specifications, both partiesshall, throughamicable negotiations,make a joint study of and analyse the cause andtake measures to e-liminate the defects and carry out asecond test. when the second testdemonstuates tha the performance is qualified, both parties shall sign a testingcertificate for the proper perfot- mance

7.3 if party b is responsible for the failure of the first test, party b shall sendat ist own expense technical ersonnel for the second test.

7.4 if the second test fails again and the failure is attributed to party b, party bshallindemnify party a for any losses sustained and shall take effective measures toeliminate thedefects and carry out a third test.

7.5 if the third test again fails, and if party b is responsible for the failure,party a has the right to terminate the contract at its discretion and lodge claims asstipulated ih article9.if the responsibility for the failure lies with party a, the twoparties shall negotiate as tohow to further implement the contract.

article 8 technical improvements

8.1 if the technical documents provided by party b are not applicable to party asactualproduction condidions (such as design standards, raw materials, purchased partsfor the ma-chine, production facilitie), party b is obliged to assist party a inmodifying the technicaldocuments and confirm the same. upon the condition that theproperties of the contracted products are not affected, raw materials, fittings andequipmint of chinese origin may be used.

8.2 during the currency of the contract. if eithet of the two parties effets improve-ments on or developments of the products within the xcope stipulated in the contract,thd said party shall submit, free of charge, to the other party the technologicalinformation con-cernign such improvements or developments.

8.3 the ownership of such improvements on or developments of the ontracted productshall belong to the party who has effected such improvements or develpments. the otheparyt shall not apply for patent ortransfer the same to any third arty.

article 9 guarantees and claims

9.1 party b guarantees that the technical& nbsp;documents to be supplied by party b are thelatest technical information which has been put into practical use by party b. party balso undertakesto supply to party a in time the technical information relevant to anydevelop-ment of or improvement on the contracted product.

9.2 party b guarantees that the technical documents to be supplied by party b arecom-plete,correct,legible and are to be despatched in time.

9.3 if the documents suppied by party b are not in conformity with the stipulationin article 6, party b shall, within the shortext possible time but not later than 3odays after re-ceipt of party as written notice, despatch free of charge to party athe missing or the cor- rcet and legible technical socuments.

9.4 if party b fails to despatch the said documents within the stipulated period asper appendix 2 party b shall pay penalty to party a in the following proportions:

(1)percent of the total contract price for delay from 1 to 4 weeks.

(2)percent of the total contract price for delay form 5 to 8 weeks.

(3)percent of the total contract price for delay exceeding weeks;

9.5 the payment of penalties by party b to party a as stipulated in article 9 shllnot releve party b of its obligation to deliver the said documents.

9.6 whenever the delay in delivering the said documents exceeds 6 months, party ashall be entitled to terminate the contract at its discretion and party b shall beobliged to re- fund party a all its payments together with the corresponding ingerestat the rate of... per-cent per annum.

9.7 if the verification tests fail with the responsibility lying with party b andif,as theresult,party a cannot start normal production with the contract having to beterminated, party b shall erfund all the payments previously made by party a to party btogether with the interest at the rate of... percent per annum.

9.8 if only some aspects of the properties of the product are not up to the standardsasstipulated in the contract and the responsibility lies with party b, party b shallcompensate party a with ... percent of the total contract price according to concredtcircumstances. ifthe responsibility lies with party a, party a shall pay the totalcontract price in accordancewith the stipulations.

article 10 confidentiality

10.1 all drawings, designs, specifications and all other technical informationmade available under this contract by party b shall be kept strictly confidential byparty a who.shall not sell, transfer or divulge it in any manner to anyone exceptthose of its own employ-ees who will be using it in the manufacture of the products,without prior written consent ofparty b. party a may. however,supply such technicalinformation to its subcontractor to the extent necessary for such subcontractor tomanufacture parts of contract products,pro-vidingthat party a shall have suchsubcontractor agree, in writing, to hold suchnical information strictly in confidence.

10.2 ln case any part (s) or all of the above-mentioned technical information havebeen madepublic by party b or any third party. party a shall be thus released form theresponsi-bilityfor keeping secret the part(s) or all of the technology already published.

10.3 after the termination of the contract, party a shall have the rigbt to usetheatents supplide by b, i. e. paryt a shall still have the right to design,manufacture,use,and export contract products.

article 11 infringement

11.1 party b guarantees that it is the legitimate owner of the patent to thestipulations of the contract, and that it is lawfully in a position to transfer thepatent to party a. of accusation of infringing the rights of a third party occurs,party b shall be responsible for the matter and fully the legal andeconomicresponsibilities trising therefrom

11.2 a complete list of party bs patents and patent applications relevant tocontrarct product are specified in appendixl to the contract. within one month after thecontract has comeinto force party b shall despatch to party a two photostat copies ofthe letters patentsand patent application(s).

article 12 taxes and duties

12.1 ail taxes, customs duties and other excises arising in connection with theperfor-mance of the contract outside the territory of party as country shall be borneby partyb.

12.2 in the execution of the contract, any income made by party b within theterritory of china shall be subject to taxation according to the tax laws of the people`srepublic of china.

article 13 force majeure

13.1 if either of the contracting parties is prevented from executing the contractby forcer majeure events such as war, serious flood, fire, typhoon and earthquake,or other events agreed upon between both parties, the term for the execution of thecontract may be extenede by a period equal to that affected by the event(s).

13.2 the involred party shall notify the other party by telex or cable within theshortest possible time of the occurrence of the force majeure event and within l4 daysthereaftersend by registered airmail to the other party a certificate issued by therelevant competent authori- ties for confirmation by theother party.

13.3 should the force majeure event last more than one hundred and twenty(120)con-secutive days,both, parties shall settle the question of further exccution of thecontract through friendly negotiations as soonas possible.

article 14 arbitration

14.1 all disputes arisint from the execution of or in connection&nb sp;with the cotractshallbesettled through fricndly consultations between both parties. in case no settlementcan be reached through consultations, then the disputes shall be submitted toarbitration.

14.2 the arbitration shall take place in _________, _________, and be conducted bythearbitration tribunal of the _________ in accordance with thestatutes of the said tribunal.

14.3 the arbitration award shall be final and binding upon both parties.

14.4 the arbitiation fee shall be borne by the losing party.

14.5 if the arbitration involves only a part of the contract, then in the course ofarbitra-tion, the execution of the contract shall be continued except the part which isunder arbit ra-tion.

article 15 applicable law

this contract shall be governed by the laws if the peoples republic of china as totheinterpretation and performance of the contract.

articl 16 duration

16.1 the contrant os signed on may _________, _________, by authorized represenatives of botbpar-ties.after the contract has been signed, the two parties shall apply to their respectivethe managing onstructure of the parties or government authorities for apprval. the dateof ap-proval last obtained shall be taken as the date of effectiveness of the contract. both partfies shallexert their best efforts to obtain the approval within sixty (60)says and inform the oth-er party by telex and thereafter confirm the same by letter. ifthe contract can not come into affect within six (6) months after the date of signing,both parties are entitlid to consider themselves absolved from the contract.

16.2 tbe contract shall be valid for ten (10) years beginning from the date of itsbe-comingeffective, and shall become null and void automatically upon the expiry of thevalidity period of the contract.

16.3 the termination of this contract shall not affect in any way the outstandingclaims and the liabilities existing between the two parties upon the expiry of the validity of the contractandthe debtor shall be kept liable until he fully pays up his debts to the creditor.the contract is made out in chinese and in englsh. in case of doubt as totheinterpreta-tion of any provisions gerof, the chinese version shall be controlling.

party a (signature):_________party b(signature):_________

conclusion place:_________ conclusion place:_________

conclusion date:_________ conclusion date:_________

appendis 1 name, content of patent documents and application of the patents

appendix 2 models, specifications and technical lndices of the contract product

appendix 3 the starting date and counting methods of royalty

appendix 4 the content and method of licensors auditing

appendix 5 training of party as personnel

appendix 6 technical service or specialist send by party b

appendix 7 verification and acceptance of the contract product this contract madeon_________ day of_________,by and be-tween ,organized and existingunder the laws of the peoples republic of china. with rehistered office at (hereinafterreferred to as party a) of the first part and ,organized and existing underthe laws of _________,with its principal office at_________.