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中外合作经营合同格式(中英)

2006-02-06 00:00   我要纠错 | 打印 | 收藏 | | |

  第一章 总 则

  中国________公司和________国(或地区)________公司,根据中华人民共和国有关法律、法规的规定,本着平等互利的原则,通过友好协商,同意在中华人民共和国________省________市,共同举办合作经营企业,特订立本合同。

  第二章 合 作 各 方

  第一条 本合同的各方为:

  中国________公司(以下简称甲方),在中国________省________市登记注册,其法定地址在________省_________市________区________路_________号。

  法定代表:姓名________

  职务________

  国籍_______

  ________国(或地区)________公司(以下简称乙方)在________国(或地区)登记注册,其法定地址在________。

  法定代表:姓名____

  职务________

  国籍________

  (注:若有两个以上合作者,依次称丙、丁……方)

  第三章 成立合作经营公司

  第二条 甲、乙方根据中华人民共和国有关法律、法规的有关规定,同意在________省________市建立合作经营的________有限责任公司(以下简称合作公司)。

  第三条 合作公司的名称为________合作有限责任公司。

  外文名称为________。

  合作公司的法定地址为________省________市________区________路________号。

  第四条 合作公司的一切活动必须遵守中华人民共和国有关法律、法规的规定。

  第五条 合作公司是由甲方提供土地使用权、资源开发权、建筑物等合作条件;乙方提供资金、设备、技术等合作条件。各方不折算投资比例,按各自向公司提供的合作条件,确定利润分享办法,并各自承担风险。合作公司实行统一管理,独立经营,统一核算。合作期限届满,公司的财产不作价归甲方所有。

  (注:应根据双方的约定具体写明)

  第四章 生产经营目的、范围和规模

  第六条 甲、乙方合作经营的目的是:本着加强经济合作和技术交流的愿望,采用先进而适用的技术和科学的经营管理方法,提高产品质量,发展新产品,并在质量、价格等方面具有国际市场的竞争能力,提高经济效益,使合作各方获得满意的经济利益。(注:在具体合同中要根据具体情况写)

  第七条 合作公司生产经营范围是:生产和销售_______产品;对销售后的产品进行维修服务;研究和发展新产品。(注:要根据具体情况写)

  第八条 生产经营规模如下:

  (一)合作公司投产后的生产能力为:_____。

  (二)随着生产经营的发展,生产规模可增加到年产________。产品品种将发展________。(注:要根据具体情况写)

  第五章 投资总额和注册资本

  第九条 合作公司投资总额为人民币________元。(或双方商定的一种货币)

  第十条 合作公司的注册资本为人民币________元。(注:甲方所提供的土地使用权或资源开发权和建筑物不计入注册资本)

  第十一条 甲、乙方分别提供如下合作条件:

  甲方:提供总面积为________平方米的土地使用权,负责征用土地费和缴纳土地使用费;(注:土地开发费的负担方法,根据双方约定写)其中:

  厂房(上盖)面积________平方米;

  商场(上盖)面积________平方米;

  维修部(上盖)面积________平方米。

  乙方:投资总额为________元,其中:现金________元;

  机器设备和交通运输工具________元;

  工业产权________元;

  其他________元。

  第十二条 甲方提供的土地使用权,应在合同批准之日起________天内办完征拨手续,交付合作公司使用;厂房和商场(上盖)应在合同批准之日起________天内交付合作公司装修;维修部(上盖)的交付时间,由合作公司董事会另行决定。乙方提供的现金投资分两期汇入合作公司在银行开立的帐户内。第一期应汇入_______元,须在合同批准之日起________天内汇出,作为首期生产、生活设施的建筑费和流动资金等;第二期必须汇足投资总额减去第一期汇出后的差额,汇出的时间为_______,用途由公司董事会确定。(注:应根据具体情况写)

  第十三条 乙方作为投资的机器设备,必须符合合作公司的生产需要,并在厂房装修完工前________天内运至中国港口。

  (注:乙方以工业产权作为投资时,甲、乙方必须另订立合同,作为本合同的组成部分。)

  第六章 合作各方应负责完成的事项

  第十四条 甲方应负责完成的事项:

  (一)办理为设立合作公司向中国有关主管部门申请批准、登记注册、领取营业执照等事宜;

  (二)依照本合同第十一条第一款规定,向土地主管部门办理申请取得土地使用权的手续;

  (三)协助办理乙方作为出资而提供的机械设备、物资的进口报关手续和在中国境内的运输;

  (四)协助合作公司在中国境内购置或租赁设备、材料、原料、办公用品、交通工具、通讯设备等;

  (五)协助合作公司落实水、电、交通等基础设施;

  (六)协助合作公司对厂房和其他工程设施的设计和施工;

  (七)协助合作公司在当地招聘中国的经营管理人员、技术人员、工人和其他人员;

  (八)协助合作公司为外籍工作人员办理所需的入境签证手续等;

  (九)办理合作公司委托的其他事宜。

  第十五条 乙方应负责完成的事项:

  (一)依照本合同第十一条第二款、第十三条的规定,提供现金、机器设备、工业产权……并负责将其作为出资的机械设备等运至中国港口;

  (二)办理合作公司委托在中国境外选购的机器设备、材料等有关事宜;

  (三)提供需要的设备安装、调试以及试产的技术人员、生产和检验技术人员;

  (四)培训公司的技术人员和工人;

  (五)如乙方同时是技术转让方,则应负责合作公司在规定的期限内按设计能力稳定地生产合格产品;

  (六)负责办理合作公司委托的其他事宜。

  (注:要根据具体情况写)

  第七章 合作经营期限

  第十六条 合作公司的经营期限为________年,公司营业执照签发之日,为该合作公司的成立日期。

  合作公司在经营过程中,如有一方提出,经双方协商同意,可以延长合作期限。但必须在合作期满六个月前,向中华人民共和国对外经济贸易部(或其委托的审批机构)提出申请批准。

  第八章 利润分配和偿还乙方投资

  第十七条 合作公司缴纳所得税后的利润,按下列顺序使用和分配:

  (一)提取______%作为合作公司的储备基金、职工奖励及福利基金、发展基金;

  (二)以______%偿还乙方的投资,预计______年还清乙方的全部投资;(注:根据双方的约定具体写)

  (三)其余部分按甲方______%,乙方_______%分配。

  第九章 产品的销售

  第十八条 合作公司的产品,大部分在中国境外市场销售(或全部外销),其中:

  (一)向外销售________%;

  (二)经向主管部门申请批准内销________%。

  (注:销售办法可灵活多样,可由公司或乙方负责向外销售,也可由公司与外贸公司订立销售合同,委托代销;对内销部分也可由公司或甲方经销。)

  第十章 董 事 会

  第十九条 合作公司设董事会。公司注册登记之日,为董事会正式成立之日。

  第二十条 董事会是合作公司的最高权力机构,决定合作公司章程的制订和修改;决定公司转让、合并、停业和解散;决定公司经营决策、财务预算和决算;决定公司利润分配和亏损弥补办法;聘请总经理、副总经理和高级管理人员;决定公司职工工资和制定职工奖惩办法等一切重大事宜。

  第二十一条 董事会由董事________名组成,其中甲方委派________名,乙方委派________名。董事长由甲方委派,副董事长________名,由乙方委派。

  董事长、副董事长和董事任期四年,经各方继续委派可以连任。

  第二十二条 董事会会议每年至少召开一次,由董事长召集并主持。董事长因故不能召集董事会议时,可委托副董事长或其他董事召集并主持。经三分之一以上的董事提议,董事长可召开董事会临时会议。会议记录应归档保存。

  第二十三条 召开董事会须有三分之二以上的董事出席方有效。董事不能出席时,可以出具委托书委托他人代为出席和举行表决。

  第二十四条 董事长是合作公司的法定代表。董事长因故不能履行其职责时,可临时授权副董事长或其他董事代理。

  第十一章 经营管理机构

  第二十五条 合作公司设经理部,负责公司的日常经营管理。

  经理部设总经理一人,副总经理__人。总经理由__方推荐;副总经理由__方推荐__人,另一方推荐__人,均由董事会聘请,任期__年。

  第二十六条 总经理的职责是执行董事会会议的决议,组织领导合作公司的日常经营管理工作。副总经理协助总经理工作。

  第二十七条 总经理必须每季度向董事会报告公司的经营情况,半年向董事会作一次财务结算报告。

  第二十八条 总经理、副总经理及其他管理人员有营私舞弊或严重失职行为时,经董事会会议作出决议,给予应得的处分直至解聘,对公司造成的经济损失,应负赔偿责任。

  第十二章 劳 动 管 理

  第二十九条 合作公司员工的招聘、解雇或辞职一律实行合同制。员工的聘请由公司做出计划,报当地劳动部门核准后,由公司自行招聘,经考核择优录用。

  第三十条 合作公司员工的劳动工资、劳动保险、生活福利和奖惩等事项,依照《中华人民共和国中外合作经营企业法》的有关规定,经董事会制订施行方案,由公司、公司工会与员工集体或个人订立劳动合同,按合同的规定执行。

  第十三章 财务会计和审计

  第三十一条 合作公司设总会计师和总出纳员各一人,负责公司总的会计工作;厂部、商场和维修服务部分别建立帐目,每个部门分别设会计师和出纳员各一个,负责各个部门的财务会计工作。

  前款所列会计和出纳员的人选,均由甲、乙方协商推荐,董事会聘请。

  第三十二条 合作公司的财务会计制度,根据有关规定,结合本合作公司的实际情况制定。并报当地财政部门和税务部门备案。

  第三十三条 合作公司设审计师一人,由甲方推荐,董事会聘请。

  审计师负责审查、稽核公司的财务收支和会计帐目,并向董事会报告。

  第十四章 纳税与保险

  第三十四条 合作公司应按中华人民共和国有关税法缴纳各种税款。

  第三十五条 合作公司的各项保险均应向中国的保险公司投保。投保办法、投保险别、

  保险价值、保期等均按中国人民保险公司的规定由合作公司董事会决定。

  第十五章 合同的修改、补充、变更与解除

  第三十六条 本合同及其附件的修改或补充,必须经甲、乙方协商一致、签署书面协议,并报经对外经济贸易部(或其委托的审批机构)批准方能生效。

  第三十七条 在合同有效期内由于本合同第四十二条规定的不可抗力,造成公司严重损失,或因公司连续亏损,致使合同不能继续履行,经合作公司董事会特别决议,并报原审批机关批准,可以提前终止合同或解除合同。

  第十六章 违 约 责 任

  第三十八条 由于一方不履行合同、章程规定的义务,或严重违反合同、章程规定,造成合作公司无法经营或无法达到合同规定的经营目的,视作违约方片面终止合同,对方除有权向违约的一方索赔外,并有权按合同规定报原审批机关批准终止合同。如甲、乙方同意继续经营,违约方仍应赔偿履约一方的经济损失。

  第三十九条 甲、乙任何一方如未按本合同第十一条、第十二条以及第十三条的规定提供合作条件时,以逾期的第一个月算起,每逾期一个月,违约方应缴付____元违约金给守约的一方。(注:或按出资额的百分比计算)如逾期__个月仍未提供,除累计缴付违约金外,守约一方有权按照本合同第三十八条规定终止合同,并要求违约方赔偿损失。

  第四十条 由于一方的过失,造成本合同及其附件不能履行或不能完全履行时,由过失的一方承担违约责任;如属双方的过失,根据实际情况,由双方分别承担各自应负的违约责任。

  第四十一条 为保证本合同及其附件的履行,甲、乙方在合同生效后__天内相互提供履约的银行担保书。

  第十七章 不 可 抗 力

  第四十二条 在合作期间,由于地震、台风、水灾、火灾、战争或其他不能预见并且对其发生和后果不能防止和避免的不可抗力事故,致使直接影响合同的履行或者不能按约定的条件履行时,遇有上述不可抗力事故的一方,应立即将事故情况电报通知对方,并应在十五天内提供事故的详细情况及合同不能履行,或者部分不能履行,或者需要延期履行的理由的有效证明文件。此项证明文件应由事故发生地区的公证机构出具。按照事故对履行合同影响的程度,由双方协商决定是否解除合同,或者部分免除履行合同的责任,或者延期履行合同。

  第十八章 争议的解决

  第四十三条 凡因执行本合同所发生的或与本合同有关的一切争议,双方应首先通过友好协商解决,如果协商不能解决,应提请中国国际贸易促进委员会对外经济贸易仲裁委员会仲裁。仲裁的裁决是终局的,对双方都有约束力。

  第四十四条 本合同的订立、效力、解释、履行和争议的解决均受中华人民共和国法律的保护和管辖。

  第十九章 文 字

  第四十五条 本合同用中文和__文写成,两种文字具有同等效力。上述两种文本如解释有矛盾,以中文本为准。

  第二十章 合同生效及其他

  第四十六条 按照本合同规定的各项原则所订立的合作公司章程、工程协议、技术转让协议、销售协议等,均为本合同的附属文件。

  第四十七条 本合同及其附属文件,均须经中国对外经济贸易部(或其委托的审批机关)批准,并自批准之日起生效。

  第四十八条 合作公司对甲、乙双方或甲、乙双方互送通知的方法,如果采用电报或电传时,凡涉及各方权利、义务的,应随之发出书面信件通知。合同中所列的甲、乙双方的法定地址,即为甲、乙方的收件地址。

  第四十九条 本合同正本一式__份,甲、乙方各__份,合作公司一份,报中国对外经济贸易部__份,具有同等效力;影印本__份,分报有关机关。

  第五十条 本合同于一九__年__月__日由甲、乙双方的授权代表在中国__省__市签字。

  甲方:__公司 乙方:__公司(加盖公章) (加盖公章)

  法定代表__(签字) 法定代表__(签字)

  8. THE CONTRACT FOR SINO-FOREIGN COOPERATIVE JOINT VENTURE

  Whole Doc.

  Chapter 1 General Provisions

  In accordance with the Law of the People's Republic of China on Chinese-Foreign Cooperative Joint Ventures and other relevant Chinese laws andregulations, _______________Company and _________Company, in accordancewith the principle of equality and mutual benefit and through friendlyconsultations, agree to jointly set up a Cooperative venture in _______the People's Republic of China.

  Chapter 2 Parties of the Cooperative Venture

  Article 1

  Parties to this contract are as follows: _________Company (hereinafterreferred to as Party A), registered with ______in China, and its legaladdress is at____________(street)_______(district)_____________(city)_____________China.

  Legal representative:

  Name:

  Position:

  Nationality:

  ___________Company (hereinafter referred to as Party B), registeredwith_______. Its legal address at___________.

  Legal representative:

  Name:

  Position:

  Nationality:

  (Note: In case there are more than two investors, they will be calledParty C, D…… in proper order).

  Chapter 3 Establishment of the Cooperative Venture Company

  Article 2

  In accordance with the Cooperative Venture Law and other relevantChinese laws and regulations, both parties of the Cooperative ventureagree to set up ___________Cooperative venture limited liability company(hereinafter referred to as the Cooperative venture company).

  Article 3

  The name of the Cooperative venture company is______________ LimitedLiability Company.

  The name in foreign language is _________.

  The legal address of the joint venture company is at__________street________(city)____________province.

  Article 4

  All activities of the Cooperative venture company shall be governed bythe laws, decrees and pertinent rules and regulations of the People'sRepublic of China.

  Article 5

  The organization form of the Cooperative venture company is a limitedliability company. The profits, risks and losses of the Cooperativeventure company shall be shared by the parties according to the relevantprovisions thereafter.

  Chapter 4 The Purpose, Scope and Scale of Production and Business

  Article 6

  The goals of the parties to the Cooperative venture are to enhanceeconomic cooperation technical exchanges, to improve the product quality,develop new products, and gain a competitive position in the world marketin quality and price by adopting advanced and appropriate technology andscientific management methods, so as to raise economic results and ensuresatisfactory economic benefits for each Cooperator.

  (Note: This article shall be written according to the specificsituations in the contract).

  Article 7

  The productive and business scope of the Cooperative venture companyis to produce ________products; provide maintenance service after the saleof the products; study and develop new products.

  (Note: It shall be written in the contract according to the specificconditions).

  Article 8

  The production scale of the Cooperative venture company is as follows:

  1. The production capacity after the Cooperative venture is put intooperation is _________.

  2. The production scale may be increased up to_____________ with thedevelopment of the production and operation. The product varieties may bedeveloped into ____________.

  (Note: It shall be written according to the specific situation).

  Chapter 5 Total Amount of Investment and the Registered Capital

  Article 9

  The total amount of investment of the Cooperative venture company isRMB____________(or a foreign currency agreed upon by both parties).

  Article 10

  The registered capital of the joint venture company is RMB __________.(Exclusive of the right to the use of the site or the right to theexploitation of the natural resources and premises contributed by PartyA.)

  Article 11

  Party A and Party B will contribute the following to the cooperativeventure:

  Party A: premises__________m2

  the right to the use of the site_________m2

  Party B: cash ______________Yuan

  machines and equipment ____________Yuan

  industrial property __________Yuan

  others _____________Yuan, ___________Yuan in all.

  (Note: When contributing industrial property as investment, Party Aand Party B shall conclude a separate contract to be a part of this maincontract).

  Article 12

  The right to the use of site contributed by Party A shall be for theuse of the cooperative venture company within _______________days afterthe approval of the contract.

  The cash contributed by Party B shall be paid in_______________installment. Each installment shall be as follows:

  (Note: it shall be written according to the concrete conditions).

  Article 13

  The machines and equipment contributed by Party B as investment shallmeet the needs of the cooperative venture company, and shall be carried tothe Chinese port_________ days before the completion of the premisesconstruction.

  Chapter 6 Responsibilities of Each Party to the Joint Venture

  Article 14

  Party A and Party B shall be respectively responsible for thefollowing matters:

  Responsibilities of Party A:

  Handling of applications for approval, registration, business licenseand other matters concerning the establishment of the cooperative venturecompany from relevant departments in charge of China;

  Processing the application for the right to the use of a site to theauthority in charge of the land;

  Organizing the design and construction of the premises and otherengineering facilities of the cooperative venture company;

  Assisting Party B to process import customs declaration for themachinery and equipment contributed by Party B as investment and arrangingthe transportation within the Chinese territory;

  Assisting the cooperative venture company in purchasing or leasingequipment, materials, raw materials, articles for office use, means oftransportation and communication facilities etc.;

  Assisting the cooperative venture company in contacting and settlingthe fundamental facilities such as water, electricity, transportationetc.;

  Assisting the cooperative venture in recruiting Chinese managementpersonnel, technical personnel, workers and other personnel needed;Assisting foreign workers and staff in applying for entry visas, worklicenses and handling their travel procedures;

  Responsible for handling other matters entrusted by the cooperativeventure company.

  Responsibilities of Party B:

  Providing cash, machinery and equipment, industrial property…… inaccordance with the provisions of Article 11 and Article 12, 13, andresponsible for shipping capital goods such as machinery and equipmentetc. contributed as investment to a Chinese port;

  Handling the matters entrusted by the cooperative venture company,such as selecting and purchasing machinery and equipment outside China,etc.;

  Providing necessary technical personnel for installing, testing andtrial production of the equipment as well as the technical personnel forproduction and inspecting;

  Training the technical personnel and workers of the cooperativeventure company;

  In case Party B is the licensor, it shall be responsible for thestable production of qualified products of the cooperative venture companyin the light of design capacity within the specified period;

  Responsible for other matters entrusted by the joint venture company.(note: It shall be written according to the specific situation).

  Chapter 7 Distribution of Profits and Repayment for Party B's Investment

  Article 15

  The cooperative venture company shall distribute its profits inaccordance with the following procedure after paying the income tax:____________% as allocations for reserve funds, expansion funds,welfare funds and bonuses for staff and workers of the cooperative venturecompany;

  ____________% as repayment for Party B's Investment and

  ___________Years scheduled to pay back all Party B's Investment;

  ____________% of the left distributed to Party A and ___________% toParty B.

  Chapter 8 Selling of Products

  Article 16

  The products of cooperative venture company will be sold both on theChinese and the overseas market, the export portion accounts for____________%, ____________% for the domestic market.(Note: An annual percentage and amount for outside and domesticselling will be written out according to practical operations, in normalconditions, the amount for export shall at least meet the needs of foreignexchange expenses of the joint venture company).

  Article 17

  Products may be sold on overseas markets through the followingchannels:

  The cooperative venture company may directly sell its products on theinternational market, accounting for _________%.

  The cooperative venture company may sign sales contracts with Chineseforeign trade companies, entrusting them to be the sales agencies orexclusive sales agencies, accounting for __________%.

  The cooperative venture company may entrust Party B to sell itsproducts, accounting for ________%.

  Article 18

  The cooperative venture's products to be sold in China may be handledby the Chinese materials and commercial departments by means of agency orexclusive sales, or may be sold by the cooperative venture companydirectly.

  Article 19

  In order to provide maintenance service to the products sold both inChina or abroad, the cooperative venture company may set up sales branchesfor maintenance service both in China or abroad subject to the approval ofthe relevant Chinese department.

  Chapter 9 The Board of Directors

  Article 20

  The date of registration of the cooperative venture company shall bethe date of the establishment of the board of directors of the cooperativeventure company.

  Article 21

  The board of directors is composed of ____________directors, of which___________shall be appointed by Party A, ____________by Party B. Thechairman of the board shall be appointed by Party A, and its vice-chairmanby Party B. The term of office for the directors, chairman andvice-chairmans four years, their term of office may be renewed ifcontinuously appointed by the relevant party.

  Article 22

  The highest authority of the cooperative venture company shall be itsboard of directors. It shall decide all major issues concerning thecooperative venture company. Unanimous approval shall be required for anydecisions concerning major issues. As for other matters, approval bymajority or a simple majority shall be required.(Note: It shall be explicitly set out in the contract).

  Article 23

  The chairman of the board is the legal representative of thecooperative venture company. Should the chairman be unable to exercise hisresponsibilities for any reason, he shall authorize the vice-chairman orany other directors to represent the joint venture company temporarily.

  Article 24

  The board of directors shall convene at least one meeting every year.The meeting shall be called and presided over by the chairman of theboard. The chairman may convene an interim meeting based on a proposalmade by more than one third of the total number of directors. Minutes ofthe meetings shall be placed on file.

  Article 25

  The meeting shall be valid only when more than two thirds of the totalnumber of directors attend. In case of absence, the director shall entrustanother person to attend and vote for him with a trust deed.

  Chapter 10 Business Management Office

  Article 26

  The cooperative venture company shall establish a management officewhich shall be responsible for its daily management. The management officeshall have a general manager, appointed by Party _____, ______deputygeneral managers, _____by Party _____; _____by Party ______. The generalmanager and deputy general managers whose terms of office is _____yearsshall be appointed by the board of directors.

  Article 27

  The responsibility of the general manager is to carry out thedecisions of the board and organize and conduct the daily management ofthe cooperative venture company. The deputy general managers shall assistthe general manager in his work.

  Article 28

  The general manager shall report to the board of directors theoperation conditions of the cooperative company every three months, andmake a financial report every six months.

  Article 29

  In case of graft or serious dereliction of duty on the part of thegeneral manager and deputy general managers, the board of directors shallhave the power to dismiss them at any time.

  Chapter 11 Labor Management

  Article 30

  Labor contract covering the recruitment, employment, dismissal andresignation, wages, labor insurance, welfare, rewards, penalties and othermatters concerning the staff and workers of the cooperative venturecompany shall be drawn up between the cooperative venture company and thetrade union of the cooperative venture company as a whole, or theindividual employees in the cooperative venture company as a whole orindividual employees in accordance with the law of the People's Republicof China on Chinese-Foreign Cooperative Joint Ventures.

  The labor contracts shall, after being signed, be filed with the locallabor management department.

  Article 31

  The appointment of high-ranking administrative personnel recommendedby both parties, their salaries, social insurance, welfare and thestandard of travelling expenses etc. shall be decided by the meeting ofthe board of directors.

  Chapter 12 Taxes, Finance and Audit

  Article 32

  The cooperative venture company shall pay taxes in accordance with theprovisions of Chinese laws and other relative regulations.

  Article 33

  Staff members and workers of the cooperative venture company shall payindividual income tax according to the Individual Income Tax Law of thePeople's Republic of China.

  Article 34

  The fiscal year of the joint venture company shall be from January 1to December 31. All vouchers, receipts, statistic statements and reportsshall be written in Chinese.(Note: A foreign language can be used concurrently with mutualconsent).

  Article 35

  Financial checking and examination of the cooperative venture companyshall be conducted by an auditor registered in China and reports shall besubmitted to the board of directors and the general manager.

  In case Party B considers it necessary to employ a foreign auditorregistered in another country to undertake annual financial checking andexamination, Party A shall give its consent. All the expenses thereofshall be borne by Party B.

  Article 36

  In the first three months of each fiscal year, the manager shallprepare the previous year's balance sheet, profit and loss statement andproposal regarding the disposal of profits, and submit them to the boardof directors for examination and approval.

  Chapter 13 Duration of the Cooperative Venture

  Article 37

  The duration of the cooperative venture company is______ years. Theestablishment date of the joint venture company shall be the date on whichthe business license of the cooperative venture company is issued.

  An application for the extension of the duration, proposed by oneparty and unanimously approved by the board of directors, shall besubmitted to the Ministry of Foreign Trade and Economic Cooperation (orthe examination and approval authority entrusted by it) six months priorto the expiry date of the joint venture.

  Chapter 14 The Disposal of Assets after the Expiration of the Duration

  Article 38

  Upon the expiration of the duration, the assets shall belong to PartyA.

  Chapter 15 Insurance

  Article 39

  Insurance policies of the joint venture company on various kinds ofrisks shall be underwritten with the People's Republic of China. Types,value and duration of insurance shall be decided by the board of directorsin accordance with the provisions of the People's Insurance Company ofChina.

  Chapter 16 The Amendment, Alteration and Termination of the Con- tract

  Article 40

  The amendment of the contract or other appendices shall come intoforce only after a written agreement has been signed by Party A and PartyB and approved by the original examination and approval authority.

  Article 41

  In case of inability to fulfil the contract or to continue operationdue to heavy losses in successive years as a result of force majeure, theduration of the cooperative venture and the contract shall be terminatedbefore the time of expiration after being unanimously agreed upon by theboard of directors and approved by the original examination and approvalauthority.

  Chapter 17 Liability for Breach of Contract

  Article 42

  Should the cooperative venture company be unable to continue itsoperation or achieve its business purpose due to the fact that one of thecontracting parties fails to fulfil the obligations prescribed by thecontract and articles of association, or seriously violates the provisionsof the contract and articles of association, that party shall be deemed tohave unilaterally terminated the contract. The other party shall have theright to terminate the contract in accordance with the provisions of thecontract after approval by the original examination and approvalauthority, and to claim damages. In case Party A and Party B of thecooperative venture company agree to continue the operation, the party whofails to fulfil its obligations shall be liable for the economic lossescaused thereby to the joint venture company.

  Article 43

  Should either Party A or Party B fail to provide on schedule thecontributions in accordance with the provisions defined in Chapter 5 ofthis contract, the party in breach shall pay to the other party________Yuan, or __________% of the contribution starting from the firstmonth after exceeding the time limit. Should the party in breach fail toprovide after ______months, _________Yuan, or _________% of thecontribution shall be paid to the other party, who shall have the right toterminate the contract and to claim damages from the party in breach inaccordance with the provisions of Article 42 of the contract.

  Article 44

  Should all or part of the contract and its appendices be unable to befulfilled owing to the fault of one party, the party in breach shall bearthe liability therefor. Should it be the fault of both parties, they shallbear their respective liabilities according to the actual situation.

  Article 45

  In order to guarantee the performance of the contract and itsappendices, both Party A and Party B shall provide each other with bankguarantees for performance of the contract within __________days after thecontract comes into force.

  Chapter 18 Force Majeure

  Article 46

  Should either of the parties to the contract be prevented fromexecuting the contract by force majeure, such as earthquake, typhoon,flood, fire, war or other unforeseen events, and their occurrence andconsequences are unpreventable and unavoidable, the prevented party shallnotify the other party by telegram without any delay, and within 15 daysthereafter provide detailed information of the events and a valid documentfor evidence issued by the relevant public notary organization explainingthe reason of its inability to execute or delay the execution of all orpart of the contract. Both parties shall, through consultations, decidewhether to terminate the contract or to exempt part of the obligations forimplementation of the contract or whether to delay the execution of thecontract according to the effects of the events on the performance of thecontract.

  Chapter 19 Applicable Law

  Article 47

  The formation, validity, interpretation, execution and settlement ofdisputes in respect of, this contract shall be governed by the relevantlaws of the People's Republic of China.

  Chapter 20 Settlement of Disputes

  Article 48

  Any disputes arising from the execution of, or in connection with, thecontract shall be settled through friendly consultations between bothparties. In case no settlement can be reached through consultations, thedisputes shall be submitted to the Foreign Economic and Trade ArbitrationCommission of the China Council for the Promotion of International Tradefor arbitration in accordance with its rules of procedure. The arbitralaward is final and binding upon both parties.

  Article 49

  During the arbitration, the contract shall be observed and enforced byboth parties except for the matters in dispute.

  Chapter 21 Language

  Article 50

  The contract shall be written in Chinese and in ____________. Bothlanguage versions are equally authentic. In the event of any discrepancybetween the two aforementioned versions, the Chinese version shallprevail.

  Chapter 22 Effectiveness of the Contract and Miscellaneous

  Article 51

  The appendices drawn up in accordance with the principles of thiscontract are integral parts of this contract, including: the projectagreement, the technology transfer agreement, the sales agreement etc.

  Article 52

  The contract and its appendices shall come into force commencing fromthe date of approval of the Ministry of Foreign Trade and EconomicCooperation of the People's Republic of China (or its entrustedexamination and approval authority).

  Article 53

  Should notices in connection with any party's rights and obligationsbe sent by either Party A or Party B by telegram or telex, etc., theWritten letter notices shall be also required afterwards. The legaladdresses of Party A and Party B listed in this contract shall be theposting addresses.

  Article 54

  The contract is signed in __________, China by the authorizedrepresentatives of both parties on _____, 19_______.

  For Party A                       For Party B

  (Signature)                      (Signature)

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