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.