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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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