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CONTRACTFORJOINT-OPERATINGENTERPRISEINTECHNOLOGY

ARTICLE1ESSENCEOFCONTRACT

TwopartiesofthisContract:

PartyA:____________

LegalAddress:____________P.C:____________

Tel:____________Fax:____________

E-mail:________________________

LegalRepresentative:____________Title:____________

PartyB:____________

LegalAddress:____________P.C:____________

Tel:____________Fax:____________

E-mail:________________________

LegalRepresentative:____________Title:____________

PartyAandPartyB(hereinafterreferredtoasthe"Parties")agreetojointlyformaCo-operationVentureCompany(hereinafterreferredtoasthe"CVC")inaccordancewith"theLawof"and"Regulationsfortheimplementationof"andotherapplicablelawsandregulations.TheaimofCVCistointroducethePatentandengageinproductioncooperationinaccordancewiththetechnicalKnow-howspecifiedinthePatent.PartyAshallprovidethefactorybuildingandothernecessaryfacilitiesforproduction,andPartyBshallofferthetechnicalPatent.BothPartiesshalleachcontributetheirpaidincapitalincompliancewiththeitemsspecifiedintheappendixtotheContract.CVCshallberunbyPartyAonitsown,whilstPartyBshallundertaketheusageofthewholeprocessofthetechnicalpatentsoastoguaranteetheproductsmanufacturedareuptothestandardsstipulatedintheContract.ThetechnicalPatentsuppliedbyPartyBshallbecompensatedforbytheRoyalties.

ARTICLE2DEFINITIONS

ThetechnicaltermsdefinedintheContractandintheAnnexesattachedtheretoareincorporatedhereinbyreferenceasifsetforthhereininfull.Inadditiontosuchtechnicalterms,thefollowingtechnicaltermsusedhereinshallhavethemeaningssetforthbelow:

2.1."Products"shallmeantheproductslistedintheattachmenttothisContract.

2.2."Patents"shallmeanregisteredpatentrights,registeredutilitymodelrightsandanyapplicationsthereforelistedintheAttachmenttothisContract.

2.3"Technology"shallmeanalltechnicaldata,formulations,manufacturingprocedures,drawingsandspecifications,aswellasmanuals,cataloguesandallothertechnicalinformationwhichisnecessaryordesirableforthemanufacture,use,serviceandsaleoftheProductsandwhichPartyBpresentlyownsorwillhereaftersellortransfer.

2.4"Trademarks"shallmeanthetrademarkslistedintheattachmenttothisContract.

2.5"Technicalassistance"--DuringthetermofthisContractPartyBshallsendtotheCooperationVenture'smanufacturingfacilitytechnicalexpertsinthemanufactureanddevelopmentoftheProductsforaperiodtobeagreedbyCVCandPartyBineachyearofthisContract.ThesalaryandwagesofsuchspecialistsandtheirtravelexpensesbetweentheirregularplaceofemploymentandCVCmanufacturingfacilityshallbepaidbyPartyBandthecostoftheiraccommodation,mealsandlivingallowanceswhileinCVCshallbepaidbyCVC.AttherequestofCVC,PartyBwillsendtechnicalexpertsforareasonableperiodtobeagreeuponbythePartiestoprovidefurthertechnicalassistancetoCVCwithrespecttothemanufacture,useandsaleoftheProducts.CVCshallpaysuchexpertstravelexpensesbetweentheirregularplaceofemploymentandCVCmanufacturingfacilityandthecostoftheiraccommodation,mealsandlivingallowanceswhileinCVC.

2.6."Exchangeoftechnicalinformation"----DuringthetermofthisContractPartyBmayinformCVCofimprovementsrelatingtotheTechnology.CVCshallinformPartyBshouldCVCmakeanyimprovementtotheTechnologyduringthetermofitsusebyCVC.TheproprietaryrightstotheimprovedtechnologyshallbelongtothePartythatmadetheimprovementandshallbesubjecttotheconfidentialityprovisionssetforthinthisContract.

2.7.PartyBguaranteesthat:Thetechnicalinformationitprovidesshallbeaccurate,completeandclear,andshallincorporateup-to-datetechnologyutilizedbyPartyBatitshomefacilityandthattheTechnologyshallbeprovidedinaccordancewiththescheduleagreeduponbybothparties;subjecttotheconditionthatCVCcorrectlyappliesandTechnologyinaccordancewiththerequirementsofPartyBsothatCVCwillbeabletomanufactureProductstointernationalstandards.

ARTICLE3USEOFPATENTSANDTRADEMARKS

3.1.CVCshallnotusethePatents,TrademarksorTechnology,exceptforthemanufacture,useandsaleoftheProductsasprovidedherein,unlessotherwiseagreedtobyPartyB.

3.2.CVCshallnotmakeanymodificationstotheProductsitmanufactureswithoutthepriorwrittenconsentofPartyB.CVCshallmanufacturetheProductstothesamequalitystandardasisdonebyPartyB.PartyBshallhavetherighttotakewhateverstepsitdeemsnecessarytoinsurethattheProductsaremanufacturedtothespecifiedquality.

3.3.PartyBgrantstoCVC,foraperiodequaltothetermofCVCContract,therighttousetheTechnologyforthemanufactureandsaleoftheproductswithinandforthemanufactureoftheProductsforsalebyPartyBin________marketspursuanttheArticlesoftheContract.

3.4.CVCshall,attherequestofPartyB,takeallnecessaryactiontoregisterPartyB'snameinthe_________,thePatentsandanyotherpatentrightsofPartyBhereafterobtainedwithrespecttotheTechnologyprovidedbyPartyB,whensuchregistrationbecomespossible.

3.5.CVCmayusetheTrademarksrelatingtotheProductsitsellsinaccordancewiththewritteninstructionsunderLicenseofPartyB.

3.6.ThenamesanddesignationstobeutilizedforallProductssoldbyCVCaresetforthinAttachment.WiththepriorwrittenapprovalofPartyB,CVCmayadoptothertrade-namesforProductssoldbyCVCinthe________domesticmarket.

ARTICLE4THIRDPARTYCOUNTERFEITNGANDINFRINGEMENT

CVCshallinformPartyBimmediatelyofanycounterfeitingoftheProductsorinfringementofthePatentsorTrademarksofwhichCVCshallbecomeaware.AlthoughPartyBherebyreservestherightexclusivelytointroduceandpursueoneorseveralsuitsorotheractionsagainstcounterfeitersorinfringesoranytypewhatsoeverwhowronglyusetheProducts,PatentsorTrademarks,itshallgivedueconsiderationtoCVCrecommendationsregardingthese.Toaccomplishthis,PartyBmayusethenameofCVCasplaintifforco-plaintiff,eitherseparatelyorinconjunctionwithPartyB,subjecthowever,tothespecificwrittenapprovalofCVC,whichshallnotbeunreasonablywithheld.

ARTICLE5ROYALTIES

5.1.CVCshallcompensatePartyBduringthetermofthisContractfortheTechnologyandassistanceprovidedbyPartyBtoCVC.

5.2.WithrespecttotheProductslistedinAttachmentontheEffectiveDateofthisContractwithin______days,shallpayroyaltiesequaltothefollowing______%ofthegrossnetsalesofsuchproductsmanufacturedandsoldbyCVC.TheroyaltiesshallbecalculatedonthebasisoftheNetSellingPriceofsuchproducts.

5.3.TheroyaltyratesindicatedinAttachmentofContractshallbeapplicablefor______yearsfollowingthedateofreceiptofthetechnology,afterwhich,theywillbereducedby%percentperannum.

5.4.CVCshallkeepfullandaccuraterecordsfromwhichtheamountsduePartyBcanbedetermined,whichrecordsmaybeinspectedonPartyB'sbehalfbyanaccountantappointedbyPartyBbeginning_______,_______,andasalereportshallbemadetoPartyBwithin______daysoftheendofthecalendarquarterforeachcalendarquarterofeachyearduringthetermofthisContract.EachsalesreportshallshowtheamountandNetSellingpriceofeachProductsoldduringtheprecedingcalendarquarterandshallbeaccompaniedbythepaymentdueinaccordancewiththereport.ThesalesreportshallbesignedbythechieffinancialofficerofCVC.

5.5.ThepaymentstobemadebyCVCtoPartyBunderthisContractshallbemadeindollarstothecreditofPartyBatsuchbankasPartyBmaydesignatefromtimetotimeinwritinginaccordancewiththeAttachmentofContract.

ARTICLE6TECHNICALTRAINING

6.1.InaccordancewithCVCContract,PartyBwillprovideCVCwithcertaintrainingemployeesofCVC.

6.2.PartyBagreestoprovidetrainingtocertainselectedemployeesofCVCinthefollowingtechnicalareas:Development,manufacture,saleanduseof____of____type;Productionandrelatedfactorypracticeswithrespectto________processing;AndallotherrelevantareasasmaybeagreedbetweenCVCandPartyB.

6.3.PartyBshallnotberequiredtoprovidetraininginconnectionwithanymatternotdirectlyrelatedtothemanufacturer,saleorserviceoftheProductsorconnectionwithanymatterwithrespecttowhichPartyBisunderanobligationofsecrecywithathirdParty.

6.4.Thenumberofparticipantsinthetrainingandthecontent,location,durationandothermattersrelatingtosuchtraining,shallbediscussedandagreeduponbetweenCVCandPartyB.

6.5.IntheeventthatCVCrequestsPartyBtosendinstructors,technicalexpertsandassociatedmanagementpersonneltoCVCtoconducttheTrainingofCVCpersonneltoCVCtoconducttheTrainingofCVCpersonnel,CVCshallpaythecostofalltravelbetweentheirregularplaceofemploymentandtherelevantfacilityofCVCandcostoftheiraccommodation,mealsandlivingallowanceswhileinCVC.

6.6.AnyemployeeofCVCwhohassuccessfullyparticipatedintrainingprogramsprovidedbyPartyBpursuanttothisContractshallnotbepermittedtoresignfromCVCwithintheyearfollowingthecompletionofthemostrecenttrainingprograminwhichsuchemployeeparticipated.

ARTICLE7PREFERENTIALARTICLE

7.1.PreferenceshallbegiventoProductsmanufacturedin________inthepurchaseanduseofmaterial,equipmentandcomponentsrequiredbyCVCduringtheperiodofoperation,ifsuchProductsarecompetitiveintermsofquality,delivery,timeandprice.

7.2.PreferenceshallbegiveninthesigningofserviceContractswithrelevantorganizationsof________forvariousservicesrequiredbyCVCduringtheperiodofoperation,ifsuchorganizationsarecompetitiveintermsofcost,timeandqualityofservice.7.3.CVCshallgivepreferencetotheprocurementofgoodsandserviceswithrespecttoworkContractsundertakendirectlybyPartyAandPartyBsolongastheyarecompetitiveintermsofcost,timeandquality.

ARTICLE8CONFIDENTIALITY

8.1.CVCacknowledgesandagreesthatthetechnologyitwillreceivefromPartyBduringthetermofthisContractshallbekeptsecretandconfidential.

8.2.CVCagreesthatitandallofitsemployeesandpersonnelshallusetheTechnologyonlyforthepurposesspecifiedinthisContactandshallnotdiscloseinanywaywhatsoeveranyoftheTechnologytoanythirdPartyorPartieswithoutthepriorwrittenconsentofPartyB.SuchconfidentialityshallbemaintainedduringthetermsofthisContractandforaperiodof______yearsaftertheterminationofthiscontract.

ARTICLE9TERMOFCVC

9.1.ThetermofCVCshallbe_____years,commencingfromthedateonwhichitisissueditsbusinesslicense.

9.2.WiththeapprovalofrelevantgovernmentauthoritiesandaftergoingthroughregistrationproceduresinaccordancewiththeRegulationfortheImplementationoftheLaw,thetermofCVCshallcontinueforsuccessive________yearperiods,unlesssix(6)monthpriortotheendofthethencurrenttermthebothpartiesagreetoterminateCVC.

9.3.AlltechnologyandotherrightsgrantedtothePatentsandTrademarksshallbereturnedtoPartyBandneitherCVCnorPartyAshallhaveanyrightorprivilegetousefurtherthePatents,TrademarksorTechnologyrelatedtothiscontractortheco-operationVenturecontractinanymannerwhatsoeverwithoutthepriorwrittenconsentofPartyBrelatingtoanysuchfutureuse.

ARTICLE10ARBITRATION

10.1.AnydisputearisingfromorinconnectionwiththisContractshallbesubmittedtoChinaInternationalEconomicandTradeArbitrationCommissionforarbitrationwhichshallbeconductedinShenzeninaccordancewiththeCommission'sarbitrationrulesineffectatthetimeofapplyingforarbitration.ThearbitralawardisfinalandbindinguponbothpartiesandtheapplicablelawisthemateriallawofP.R.C.

10.2.Notwithstandinganyreferencetoarbitration,bothPartiesshallcontinuetoperformtheirrespectiveobligationsundertheContractunlessotherwiseagreed.

ARTICLE11FORCEMAJEURE

11.1.AnyeventorcircumstancebeyondthecontrolofthePartiesshallbedeemedandeventofForceMajeureandshallinclude,butnotberestrictedto,fire,storm,food,earthquake,explosion,war,rebellion,insurrection,epidemicandquarantinerestriction.IfeitherPartyispreventedfromperforminganyofitsobligationsunderthisContractduetoaneventofForceMajeure,thetimeforperformanceunderthisContractshallbeextendedbyaperiodequaltotheperiodofdelaycausedbysuchForceMajeure.

11.2.TheaffectedPartyshallimmediatelynotifytheotherPartyoftheoccurrenceofanyForceMajeurebyTelephoneandFaxandshallsendtotheotherPartybyregisteredairmail,withinfifteen(15)daysthereafter,acertificatefromtherelevantgovernmentauthoritiesordepartmentsconfirmingtheoccurrenceofthecauseofsuchForceMajeure.ShouldthedelaycausedbyaneventofForceMajeurecontinuef

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