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国际专利许可合同(中英对照)

Date:2009-3-24


国际专利许可合同(附英文)
中文文本
合同号:
签约日期:
签约地点:
目 录

第一条 定义 第九条 保证和索赔
第二条 合同围内容和范围 第十条 保密
第三条 合同价格 第十一条 侵权
第四条 支付条件 第十二条 税费
第五条 技术服务和培训 第十三条 不可抗力
第六条 技术资料 第十四条 仲裁
第七条 考核与验收 第十五条 适用法律
第八条 技术改进 第十六条 合同有效期

附 件

附件一 专利资料的名称、内容和申请情况
附件二 合同产品的型号、规格和技术参数
附件三 提成资的起算时间和计算方法
附件四 出让方查帐的内容和方法
附件五 对甲方人员的培训计划
附件六 乙方派遣专家的技术服务计划
附件七 产品考核验收办法

本合同于1993年__月__日在_____订立。合同一方为____公司,依中华人民共和国法
律组建、注册地址为:中国《以下简
称甲方);合同的另一方(以下简称乙方)。

此证:

鉴于乙方拥有合同所述专利技术;
鉴于乙方有权,并且也同意将专利技术的使用权、制造权和合同产品的销售权授予甲方;
鉴于甲方希望利用乙方的专利技术制造并销售合同的产品;
双方授权代表经友好协商,同意就以下条款签订本合同。

第一条 定义

本合同下列词语的含义:
1.1“专利技术",系指乙方目前拥有的或未来获得的和/或有权或可能有权控制的,或在本合同有效期间在世界任何国家许可转让的,
适用于或可能适用于制造本合同产品的专利和专利申请。
1.2“合同产品”,系指本合同附件二中规定的产品及其改进发展的产品。
1.3“甲方"系指____,或者该公司的法人代表、代理或财产继承者;
1.4“乙方”系指____,或者该公司的法人代表、代理或财产继承者;
1.5“合同工厂”系指生产合同产品的场所,即____;
1.6“备件”,系指用以代替合同产品或其任何部分的备用件;
1.7“部件”,系指乙方随时书面允许甲方生产和销售的合同产品的构件及零配件;
1.8“技术资料”,系指列于附件一与制造和维修合同产品有关的工程、制造及原始资料,包括与制造设备、工具和装置有关的图
纸、蓝本、设计图表、材料规格、照片、影印资料和一般资料,设计及其说明书等。但上述资料仅限于乙方拥有的资料和甲方用于本合同
业务活动的资料;
1.9“净销售价”,是指在扣除合同产品的包装费、安装费、运输费、商业和数量折扣、佣金、保险旨和税费之后的发票金额;
1.10“合同生效日”,系指本合同双方管理机构和有关权力机关中最后一方批准合同的日期。

第二条 合同的内容和范围

2.1甲方同意从乙方获得,乙方同意向甲方转让合同产品的专利技术。这种技术应与乙方最新产品的技术完全一致。
2.2乙方以非独占方式许可甲方在中国设计和制造合同产品,以及销售和出口产品的权利。
2.3乙方须向甲方提供与合同产品有关的专利技术资料和样机所需的配件,其具体内容和支付时间,详见本合同附件二。
2.4本合同产品不包括乙方外购件的专利技术,但乙方必须问甲方提供外购件的样本和技术说明资料与制造厂商的名称。
2.5乙方有责任接收、安排甲方赴乙方培训的技术人员,乙方应设法使其掌握上述合同产品专利技术。(详见本合同附件五)
2.6乙方负责自费派遣技术人员赴甲方进行技术服务。(详见本合同附件六)
2.7如甲方需要,乙方同意以最优惠的价格向甲方提供合同产品的零件、材料和配件等。具体内容双方另行协商
2.8乙方同意甲方有权使用其商标,在合同产品上亦可以采取双方的联合商标、或者标明“根据售证方的许可制造”字样。

第三条 合同价格

3.1按照第二条规定的内容和范围。本合同采用提成方式计算价格,计价的货币为___。
3.2本合同提成费的计算时间从合同生效之日后的第XX个月开始,按日历年度计算,每年的十二月三十一日为提成费的结算日。
3.3提成费按当年度合同产口销售后的净销售价格计算,提成率为XX%,合同产品未销售出去的不应计算提成费。
3.4在提成费结算日后10天之内甲方应以书面通知的形式向乙方提交上一年度合同产品的销售数量、净销售额和应支付的提成费,净
销售额和提成费的具体计算方法详见本合同附件三。
3.5甲方依据本合同的专利许可,销售的合同产品一经付款则视为货已售出。
3.6若在交付专利权使用费后,已售合同产品被退回或折价,甲方有权在以后支付的专利权使用费中扣除因此而多支付的专利权使用
费。
3.7乙方如需查核甲方的帐目时,应在接到甲方依上述第3.4款规定开出的书面通知后10天内通知甲方、其具体的查帐内容和程序详见
本合同附件四。

第四条 支付条件

4.1本合同第三条中规定的提成费,甲方将通过XXXX银行(此处为甲方的业务银行)和XXXX银行(此处为乙方的业务银行)支
付给乙方,支付中使用的货币为____。
4.2乙方在收到甲方按第3.4条的规定发出的书面通知后应立即开具有关的单据,甲方在收到乙方出具的下列单据后三十天内。经审核
无误,即支付提成费给乙方:
A.提成费计算单一式四份;
B.商业发票一式四份;
C.即期汇票一式一份。
4.3按本合同规定,如乙方需要向甲方支付罚款或赔偿时,甲方有权从上述支付中直接扣除。

第五条 技术服务和培训

5.1技术服务
5.1乙方在合同有效期内派遣一名技术专家到甲方,对合同产品的图纸和技术资料进行解释,并就产品设计、制造、调试和检验,以
及维修等方面进行技术指导,以使甲方在保证合同产品性能的情况下,能尽快采用国产的材料和元器件,实现合同产品的生产。
5.1.2.乙方在合同有效期内分两次派遣技术人员赴甲方进行技术服务,共30人日。
5.1.3.第一次技术服务在合同生效后第六个月,乙方派遣技术人员1人赴甲方工厂,提供技术指导12日。
5.1.4.第二次技术服务在合同产品验收期间。乙方派技术人员1人赴甲方工厂,提供技术服务,时间为18日。
5.1.5.乙方负担其人员的旅差费。甲方负担由驻地到工厂的交通工具和膳宿费。
5.2技术培训。
5.2.1.乙方负责对甲方技术人员进行培训,使甲方受训人员掌握合同产品设计,性能测试,加工工艺,装配工艺和质量检查等技能,
使甲方能用乙方提供的资料和专门知识,在合同工厂制造出与乙方产品质量相同的产品。乙方应设法安排甲方受训人员参观制造合同产品
外购件的生产过程和合同产品的主要用户。
5.2.2.甲方受训人员在协议期间分两批,320人日以内〔翻译除外)赴乙方接受培训。
5.2.3.首批培训时间为合同生效后的第三至第四个月,甲方派技术人员4人,翻译1人到乙方工厂接受为期160人日(每周5天工作日)
的培训。内容为合同产品的设计和制造工艺。
5.2.4.第二批培训人员的培训时间为合同生效后的第八至第九个月。甲方派技术人员4人,翻译1人到乙方工厂接受为期160人日(每
周5天工作日)的培训,培训内容为合同产品的设计、加工工艺、装配工艺和机器的调试。
5.2.5.甲方负担受训人员的旅费。在乙方受训期间的膳宿费及驻地和工厂之间的交通工具由乙方负责提供。

第六条 技术资料

6.以乙方应按本合同附件二规定的内容和时间,在____交付技术资料。
6.2.____的邮戳日期,为技术资料的实际交付日期。甲方将带有到达印戳日期的空运提单影印本1份寄给乙方。
6.3在每批技术资料发运后24小时内,乙方应将合同号、空运提单号、空运报单日期、资料项目、件数、重量、航班号和预计抵达日
期用电报或电传通知甲方。同时将空运提单和技术资料详细清单各一式2份寄给甲方。
6.4.若技术资料在空运中丢失、损坏、短缺,乙方应在收到甲方书面通知后30天内,免费外寄或重寄给甲方。在甲方收到技术资料后
60天内,如果没有以书面形式提出资料不全或增补要求,则视为甲方验收。
6.5.技术资料采用英文,计量单位以公制表示。

第七条 考核与验收

7.1.合同产品的第一台样机,由甲、乙双方组成的联合考核小组,按附件七规定的时间和内容进行考核。如果符合附件一规定的技术
要求,即可验收,并由双方代表签署合同产品考核 验收合格证书一式4份,双方各执两份。
7.2.如果合同产品的技术性能达不到规定的技术标准,双方应友好协商,共同研究,分析原因,采取措施,消除缺陷,进行第二次性
能考核。考核合格后,双方签署考核合格证书。
7.3.如果第一次考核不合格是乙方责任,乙方应自费再次派遣技术人员进特第二次考核。
7.4.经过第二次考核仍不能合格验收,若责任在于乙方,刚乙方须赔偿甲方遭受的直接损失。并采取措施艄除缺陷,进行第三次考
核。
7.5.经过第三次考核仍不合格,如系乙方责任,则甲方有权终止合同,并接第九条的规定处理。若系甲方责任,则由双方协商合同进
一步执行的问题。

第八条 技术改进

8.1.乙方提供的技术资料,如有不适合甲方生产条件的(如设计标准、原材料、外购配件及共他生产设备等一,乙方有责任帮助甲方
修改技术资料,闪加以确认。在不影响合同产品性能情况下,应采用中国产的原材料、配套元器件和设备。
8.2.在合同有效期内,双方对合同产品的任何改进和创新,都免费将改进或创新的技术资料提供给对方。
8.3.改进或创新的技术所有权属于改进或创新一方,另一方不得对其申请专利或将其转让给第三者。

第九条 保证和索赔

9.1.乙方保证所提供的技术资料是乙方经过实际使用的最新技术资料,并保证向甲方及时提供任何改进和发明的技术资料。
9.2.乙方保证所提供的技术资料是完整的、正确的、清晰的,并保证按时交付。
9.3.如果乙方提供的技术资料不符合第六条规定,乙方必须在收到甲方书面通知后30天内免费将所缺的技术资料,或清晰、正确的资
料寄给甲方。
9.4.如乙方的技术资料不能按本合同附件二规定的时间交付,乙方则须按下列比例支付罚款给甲方:
(1)迟交1至4周,罚款为合同总价的X%;
(2)迟交5至8周,罚款为合同总价的X%;
(3)迟交超过8周,罚款为合同总价的X%;
9.5.乙方按本条规定被罚款时,并不解除其继续交付技术资料的义务。
9.6.如果动方迟交技术资料6个月以上,甲方有权终止合同。乙方须将甲方已给交付的全部金额,并加年利X%的利息,一并退还甲
方。
9.7.由于乙方责任,验收不合格,造成甲方有能正常投产而终止合同时,乙方应退还甲方已经支付给乙方的全部金额,并加年利X%
的利息。
9.8.如因乙原因,产品部分性能指标没能达到合同产品的规定时,机具体情况,乙方须按合同总价X%予以赔偿,但是,若因甲方原
因产品没能达到性能指标时,甲方应按合同规定支付金部金额。

第十条 保密

10.1.乙方根据本协议所提供的一切图纸、设计、说明书及其他技术资料,甲方均须严格保密;未得到乙方的书面同意,不得以任何方
式出售、转让或泄露给任何人,但不包括甲方为生产合同而使用技术资料的雇员。但是,甲方可以向分包合同人提供生产合同产品部件所
必须的技术资料,分包人须书面保证对其所得到产技术资料承担严格的保密义务。
10.2.若上述技术资料由乙方或任何第三方部分或全部公开,则甲方对已公开的技术不再承担保密义务。
10.3.本合同终止后,甲方有权使用乙方所提供的专利,即甲方可以继续设计、制造、使用、销售和出口合同产品。

第十一条 侵权

11.1.乙方保证,它是依本合同条款转让给甲方的专利权的合法所有人,在法律上享有向甲方转让专利权的权利。若发生侵犯任何第三
者权利的事件,则乙方应对侵权事件负责,并承担由此而产生的全部法律和经济责任。
11.2.本合同附件一列明乙方关于合同产品的专利和专利申清。合同生效后一个月内,乙方将向甲方提供2份专利证书和专利申请的
影印本。

第十二条 税费

12.1.凡因履行本合同而发生在甲方国家以外的一切税费,均由乙方负担。
12.2.乙方因履行本合同而在中国境内获得的收入,必须按中国税法纳税。

第十三条 不可抗力

13.1.签约的任何一方,由于战争、严重水灾、火灾、台风、地震以及双方同意的其他不可抗力事故而无法按期执行合同时,则可延
长合同的期限,延长期相当于事故所影响的时间。
13.2.受影响的一方应尽快将发生不可抗力事故的情况以电传或电报通知对方,并于此天内以航空挂号邮件将有关当局出具的证明文
件提交另一方确认。
13.3如不可抗力事故延续到120天以上,双方应通过友好协商尽快解决合同继续执行的问题。

第十四条 仲裁

14.1.因执行本合同所发生的或与本合同有的一切争议,双方应通过友好协商解决。如经协商仍达不成协议时,则应提交仲裁解决。
14.2.仲裁将在瑞典斯德哥尔摩进行,由斯德哥尔摩商会仲裁院根据该院的章程进行仲裁。
14.3.仲裁的裁决是终局的,对双方均具有约束力。
14.4.仲裁费用由败诉方负担。
14.5.若仲裁的内容是合同的部分条款,合同的其他条款在仲裁期间应继续执行。

第十五条 适用法律

本合同的解释和执行以中华人民共和国的法律为依据。

第十六条 合同有效期

16.1.本合同由双方代表于1993年5月8日签,合同签订后,由各方分别向本公司管理机构或本国政府当局申请批准,以最后一方的批
准日期为合同生效日期。双方应尽力在60天内获得批准,用电传通知对方,并用邮件确认。若本合同自签字之日起6个月仍不能生效。双
方均有权解除合同。
16.2.本合同效期十年,期满时自动失效。
16.3.本合同期满时,双方发生的未了债务不受合同期满的影响,债务人应向债权人继续支付未了债务。
本合同有中、英两种文本。当对其中条款的解释产生异议时,以中文本为准。
甲方:______ 乙方:______
代表:____ 代表。:____




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英文文本

PATENT LICENSE CONTRACT


Con tract No:

Conclusion Date:

Conclusion Place:

INDEX


Article 1 Defininitions Article 9 Guarantees and Claims
Article 2 ScoPe of the Contract Article 10confidentiality
Article 3 Price of the Contract Article 11Infringements
Article 4 Conditions of Payment Article 12 Taxes andDuties
Articfe 5 Technical Service and Training Article 13 ForceMajeure
Article 6 Technical documentation Article 14 Arbitration
Article 7 Verification and Acceptance Article 15 App1icable LaW
Article 8 Technical Improvement Article 16 Duration

APPENDIXES

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 Licensor’s auditing
appendix 5 Training of Party A’s Personnel
appendix 6 Technical Service or Specialist Send by Party B
appendix 7 Verification and Acceptance of the Contract Product This Contract made____________on_____________ day
of____________,By and be-tween __________,
organized and existing under the laws of the People’s Republic of China. with rehistered office at (hereinafter
referred to as Party A) of the first part and __________,organized and existing under the laws of_____________,with its
principal office at________________.
WITNESSTH

Whereas the patent right which said in the Contract os owned by Party B.
Whereas 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 sell the Contract Products;
Both Parties authorized representatives, through friendly negotiation, have agree to en-ter
into this Contract under the ertms as stipulated below;

Artide 1 Definitions

For the purpose of this Contract, the following terms have the following meanings;
1.1.‘Patented Technology’means those letters patent, and applications therefor presently owned or hereafter
acquired
by Party B and/or which Party Bhas or may have the rigt to control or grant license thereof during the term hereof in
any or all countries of the world and which are applicable to or may be used in the manufacture of Cotract Products.
1.2. ‘Contract Products’mians the products described in Appendis2 annexed hereto, to-gether with all improvements
and modifications thereof or developments with respect there-to.
1.3. ‘Patty A’means____________. or his legal representative, agent and inhetitor to 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 the Contract Products. That
is_______________.
1.6. ‘Spare P’menas replacement parts for Contract products or for any part there-of. 1.7. ‘Components’means
those components and parts of Contruct Produets which Par-ty B has agreed or may from time to time agree in writing to
permit Party A to manufacture or sell.
1.8. ‘Technical documents’meane engineering, manufacturing and originating inforna-tion relatiog to the
manufacture and servicing of Contract Products, including drawings, blueprints,design sheets, material specifications,
photographs, photostats and general da-ta, and designs and specifications relating to manufacturing Contract Producdts,
tools and fix-tures, but includes,however, only such information as is available to Party B and applicable to the
operations of Party A under this Contract which detaile as per Appendis 1 to the Con-tract.
1.9 ‘Net Selling Price’ menans remaining amount of invoice value of the ContractProd-ucts, after deduction of
packahing, installation and freight charges, trade and discount, commission, insurance and taxes and duties. if any,
directly applicable to the Prdduct.
1.l0 ‘The Date of Coming into Effect of the Contract’means the date of raification ofthe Contract by the managing
constructure of the parties or by the competent authorities ofboth parties, whichever comes later.

Article2 Scope of the Contract

2.1. Party A agrees to acquire from Party B and Party B agrees to transfer to Party A the patented Technology for
Contract Products. Such Patented Technology shall be in exact accordance with the technologyof Party B’s latest
products. 2.2 Party B grants Party A the non-exclusive right to design and manufacture ContractProducts in China and
to markdt the said Products in China and abroad. 2.3 Party B shall be responsible to provide Party A with documents
relevant to the saidPaptents and with special fittings of the samplemachine their concrete details and schedule
ofdelivary being set out in Appendix 2 to the Contract.
2.4 The Contract does not cover the Patented technology for the parts from other coun-tres.But Party B shall provide
Party A with the specimens and the tecincal specifications and
the name of the manufacturers of the parts.
2.5 party B shall be responsible for the training of Party A’s technicl personnel in Party
B’s relevant facilities and also do its best to enable Party A’s technical personnel to masterthe Patented Technplogy
of the aforesaid Contract Product (details as per Appendix 5 to the Contract).
2.6 Party B is obliged to send at its own expense technical personnel to Party A’s facto-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 provide Party 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 B’s trade mark, and use the combinedtrade, mark of both parties
or mark the wouding ’production according to Licensor’s Licence’
on the Contract Produets.

Article 3 Price of the Contract

3.1 price of the Contract shall be calculated on Royalty in accordance with the content 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 date ofcoming into effect of the
Contract in terms of Calendar Year. The date of settling accountsshallbe 31, December of each year.
3.3 Royalty at the rate of__________ % (___________percent ) shall be Calcuated in terms ofnet Selling Price after
the Contract Products are sold in this year,the Contract Products which not sold shall not be included. 3.4 The
report of the selling quantity, net selling amount of the contract Products andRoyalty which should be paid in last year
shall be submitted to Party B in written form by Party A within 10 (ten) days after the date of settling accounts to
Royalty. The specific methods which calculate net selling amountand Royalty are detailed in Appendix 3 to the Contract.
3.5 The Contract Products sold by Party A pursuant to the patent license herein granted shall be deemed to have
been
sold when paid for.
3.6 If the Contract Products are returned or allowances made thereon after the royalty thereon has been paid Party A
shall be entitled to take appropriate erdit for such overPay-mentagainst royalties thereafter accruing.
3.7 If Party B demand to audit the accounts of Party A,it shall notice Party A within
l0(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 are detailed 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 to arty 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 written notiee
submitted by Party A in accordance with Artiele 3.4 of the Contract, the Royalty shall be paid by Party A to Party B
within 30(thirty) days after Party A has received the fol-lowing documents which are provided by Party B and found them
in confoumity with the stipulations of the Contract.
A. Four copies of the statement on calculation of the royalty;
B. Four copies of the commercial invoice;
C. Two copies of the sight draft.
4.3 Party A shall have the right to deduct from any of the above mentioned payment the ppenalties and/or
compensations which party B shall pay in accordance with the stipulations ofthe Contract.

ArticIe 5 Technical service and Training

5.1 Technicgl Service'
5.1. l During the validity period of the Contract, Party B shall send a specialist to PartyA’s factory to explain
the drawings and technical documents and to provide teehnical servise indesigning . manufacturing, adjustment,inspection
and maintenance of the Contracted Pro-duet so to eheble Party A to use, as fast as possible, home materials and raw
components without affeeting the properties of the Products so manufactured.
5.1.2 Party B shall twice send it’s specialists to Party A’s factory to provlde technicalservice for a total of 30
working days man.
5.l.3 The first technical service sha1l start in the sixth month after the Contrayt comesinto effect. Party B shall
send a specialist to Party A’s factory to provide technical service for 12 working days/man.
5.1.4 The second technical service shall start during the verification of the CortractedProduets. Parth B shall send
a specialist to Party A’s factory to provide technical service for18 working days/man.
5.1.5 Party B shall, for its specialists, bear their travelling expensee. ParthA shall be
responsible for Boarding and lodging and affording the means of conveyance from the lodgingplace to the factoty.
5.2 Technical Training
5.2 1 Party B shall train Party A’s technical personnel so as to enable them to masterParty B’s design,
performance test and technology in machining, erection and inspection of the Contracted Products, so that Party A can
use the technical documents and know-how supplied by Party B to producethe same products in the Contract
Factory. Party B shall do its best to arrange for Party A’s Personnel to visit the majorusers and the manufacturing
Process of the components from other countries of the Contracted Products.
5.2.2 Party A shall send twice its technical personnel to Party B’s factory for training, and the total number of
the participants shall not exceed 320 days/man (excluding the inter- preter).
5.2.3 The first training shall be from the third to the fourth month after the Contract comes into effect. There
shall be 4 technical persons and an interpreterto be sent to party B for training for 16o working days/man (5 days
week). The training shall cover the design of the Contracted Products and
manufacturing technology.
5.2.4 The second training shall be from the eighth to the nineth month. Party A shall sent 4 technical persons and
an interpreter to Party B’s factory for training for 160 working days/man (5 days per week). The training shall cover
the designing, the manufacturing technology, erection and adjustment of the Contracted Products.
5.2.5 Party A shall bear the travelling expenses of its trainees; Party B shall provide Party A’s trainees free of
charge with boarding, lodging and means of conveyance 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 in Appendix 2to the Contract, deliver
the documents at________________.
6.2 The date stamped by the air transportation ageney at____________,shll be taken as the actual date of delivery
paryt A shall send to Party B a photostat copy of the airconsignment 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 date of the air consignment note, items of the documents, number of
pieces, airmail to Party A two copies of each of the air consignment note and detaikled list of the technical documents.
6.4 If the technical documents are foumd lost, damaged or mutilated during air trans-portation, Party B shall supply
Party A free of charge with a second lot of documents within the chortest possible time but not later than thirty days
after it has received from Party A the written notice. Within sixty days after party a has received the documents from
Party B,if Party A does not declare the shortage and request to cover the same, it is considered asa-cepted.
6.5 The technical documents shall be in English and based on metric system of measure-ments.

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Article 7 Verification and Acceptance

7.1 The Verification Test on the first samplemachine of the Contracted Product shall be carried out by the joint
group consisting of Party A’s and Party B’s representatives accordingto the schedule and contents stipulated in
Appendix 7 to the Contract. lf the performance of the Contracted Product is in conformity with the technical
specifications stipulated in Ap-pendix 1, such test shall be considersd as qualified and the representatives of both
parties shll sign the Inspection and Testing Certificate for the
proper performance of the Contracted Product in quadruplicate,2copies for each party.


7.2 If the Verification Test demonstrates that the performance of the Contracted Prod-uct isnot in conformity with
prescribed technical specifications, both parties shall, throughamicable negotiations, make a joint study of and analyse
the cause and take measures to e-liminate the defects and carry out a second test. when the second test demonstuates tha
the performance is qualified, both parties shall sign a testing certificate for the proper perfot- mance
7.3 If Party B is responsible for the failure of the first test, Party B shall send at 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 B shallindemnify Party A for any
losses sustained and shall take effective measures to eliminate 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 as stipulated ih Article9.If the responsibility for the failure lies
with Party a, the two Parties 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 A’s actualproduction condidions
(such as design standards, raw materials, purchased Parts for the ma- chine, production facilitie), Party B is obliged
to assist Party A in modifying the technicaldocuments and confirm the same. upon the condition that the properties of
the Contracted Products are not affected, raw materials, fittings and equipmint 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 technological information con-cernign such improvements or developments.
8.3 The ownership of such improvements on or developments of the Contracted Product shall belong to the party who
has effected such improvements or develpments. The othe paryt 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 documents to be supplied by Party B are the latest technical information
which has been put into practical use by Party B. Party B also undertakesto supply to Party A in time the technical
information relevant to any develop-ment of or improvement on the Contracted Product.
9.2 Party B guarantees that the technical documents to be supplied by Party B are com-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 stipulation in Article 6, Party B shall,
within the shortext possible time but not later than 3O days after re-ceiPt of Party A’s written notice, despatch free
of charge to Party A the missing or the cor- rcet and legible technical socuments.
9.4 If Party B fails to despatch the said documents within the stipulated period as per Appendix 2 Party B shall pay
penalty to Party A in the following proportions:
(a)...percent of the total Contract price for delay from 1 to 4 weeks.
(b)...percent of the total contract price for delay form 5 to 8 weeks.
(c)...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 shll not 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 A shall be entitled to terminate the
Contract at its discretion and Party B shall be obliged to re- fund Party A all its payments together with the
corresponding ingerest at the rate of... per-cent per annum.
9.7 If the verification tests fail with the responsibility lying with Party B and if,as theresult, Party A cannot
start normal production with the Contract having to be terminated, Party B shall erfund all the payments previously made
by Party A to Party B together 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 standards asstipulated in the Contract
and the responsibility lies with Party B, Party B shall compensate Party A with ... percent of the total Contract price
according to Concredt circumstances. Ifthe responsibility lies with Party A, Party a shall pay the total Contract price
in accordancewith the stipulations.

Article 10 Confidentiality

10. 1 All drawings, designs, specifications and all other technical information made available under this Contract
by Party B shall be kept strictly confidential by Party A who.shall not sell, transfer or divulge it in any manner to
anyone except those 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 technical information to its subcontractor to the extent necessary
for such subcontractor to manufacture parts of Contract Products,pro-vidingthat Party A shall have such subcontractor
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 have been made public by Party B or
any third party. Party A shall be thus released form the responsi-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 use theatents 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 the stipulations of the Contract, and that
it is lawfully in a position to transfer the Patent 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 and economicresponsibilities trising therefrom
11.2 A complete list of Party B’s patents and patent applications relevant to Contrarct Product are specified in
Appendixl to the Contract. Within one month after the Contract has comeinto force Party B shall despatch to Party A two
photostat copies of the letters patentsand patent application(s).

Article l2 Taxes and Duties

12.1 AIl taxes, customs duties and other excises arising in connection with the perfor-mance of the Contract outside
the territory of Party A’s country shall be borne by PartyB.
12.2 In the execution of the Contract, any income made by Party B within the territory of China shall be subject to
taxation according to the tax laws of the People’s Republic of China.

Article l3 Force Majeure

13.1 If either of the contracting parties is prevented from executing the Contract by 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 the Contract 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 the shortest
possible time of the occurrence of the Force Majeure event and within l4 days thereaftersend by registered airmail to
the other party a certificate issued by the relevant 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 the Contract through friendly negotiations as soonas possible.

Article l4 Arbitration

14.1 All disputes arisint from the execution of or in connection with the Cotract shallbesettled through fricndly
consultations between both parties. In case no settlement can be reached through consultations, then the disputes shall
be submitted to arbitration.
14.2 The arbitration shall take place in Stockholm, Sweden, and be conducted by thearbitration tribunal of
theStockholm Chamber of Commerce in accordance with the statutes of the said tribunal.
14.3 The arbitration award shall be final and binding upon both parties.
l4.4 The arbitiation fee shall be borne by the losing party.
l4.5 If the arbitration involves only a part of the Contract, then in the course of arbitra-tion,the execution of
the contract shall be continued except the part which is under arbit ra-tion.

Article 15 Applicable law

This Contract shall be governed by the laws if the People’s Republic of China as tothe interpretation and
performance of the Contract.

Articl l6 Duration

16.1 The Contrant os signed on May 8, 1993, by authorized represenatives of botb par-ties.
after the Contract has been signed, the two parties shall apply to their resPective the managing
onstructure of the parties or government authorities for apPrval. The date of 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. If the 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 its be-comingeffective, and shall
become null and void automatically upon the expiry of the validity period of the Contract.
16.3 THe termination of this contract shall not affect in any way the outstanding claims and the liabilities
existing between the two parties upon the expiry of the validity of the Contractand the 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 to theinterpreta-tion of any provisions
gerof,
the Chinese version shall be controlling.
Party A :_________________ Party B:___________________
by_______________ by__________________

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