Date of signing:_________
Place of signing:_________
Contract No.:_________
In accordance with Bid No._________ under the I. B. R. D. Loan No._________, International Tendering Company of China National Technical Import and Export Corporation,Beijing PRC (hereinafter referred to as the Licensee )on the one hand, and _________Company, Germany(hereinafter referred to as theLicensor)onthe other hand
Whereas:
Whereas the Licensor has the technical know - how for design, manufacture, assembly,installation, test, inspection, adjustment, operation, maintenance, management and sale of Railway_________as required by Licensee;
Whereas the Licensor has the right and agrees to transfer the above - mentioned technical knowhow to the Licensee for the manufacture of Railway_________product;
Whereas the Licensee agrees to introduce the Licensor's technical know- how for design,manufacture, maintenance, sale and export of the Railway_________product;
Whereas the licensor agrees to supply to the Licensee and the Licensee agrees to obtain from the Licensor a certain amount of parts and components for the assembling and manufacturing of the Railway_________product under other contract.
The authorized representatives of both parties, through friendly negotiations, have agreed to enter into Contract under the terms and conditions as stipulated below;
1. DEFINITIONS
1.1The Licenseemeans_________.
1.2The Licensormeans _________.
1.3The Contractmeans the agreement entered between the Licensee and the Licensor,as recorded in the Contract signed by both parties including all annexes,attachments and appendices thereto and all documents incorporated by reference therein.
1.4The Contract Pricemeans the price payable to the Licensor by the Licensee under the Contract for the full and proper performance of its contractual obligations.
1.5The Contract Products means all the products with the models and specifications and performances which are manufactured by the Contract Factory as defined below, in accordance with the technology transferred by the Licensor to the Licensee as stipulated in Annex 2 to the Contract.
1.6The Contract Factorymeans the place where the Licensee manufactures the Contract Products by using the Technology supplied by the Licensor, That is _________factory.
1.7The Technical Documentation and Softwaremeans all the documents to be supplied to the Licensee by the Licensor as stipulated in Annex_________of the Contract, It consists of the followings:
A.All the technical indices, drawings, design, technical documents and software relating to the design, manufacture, calculation, assembly, installation, test, management, inspection, adjustment, operation , maintenance , acceptance test and sale fo the Contract Products;
B.All the technical indices, drawings, design, technical documents and software relating to the inspection, installatiom, commissioning, testing, acceptance, operation and maintenance of the Contract Equipment;
C.All the technical indices, drawings, technical documents and software relating to the inspection, testing,adjustment,assembly and maintenance of the SKD/CKD Parts.
1.8The Technical Service means the technical assistance, supervision, instruction, training and other services under the Contract to be rendered by the Licensor to the Licensee as stipulated in Annex_________and Annex_________to the Contract.
1.9SINOT RANS means China National Foreign Trade Transportation Corporation,which is the pointed agent of the Licensee for receipt of the Technical Documentation and Software, the Contract Equipment and the Parts at the ports of destination:
1.10PRCmeans the People's Republic of China.
1.11FRGmeans Federal Republic of Germany
1.12The World Bankmeans the International Bank for reconstruction and Development(I.B.R. D. )and International Development Association.
2. OBJECT OF THE CONTRACT
2.1The Licensor has agreed to transfer to the Licensee and the Licensee has agreed to obtain from the Licensor the technical know - how for the design, manufacture, assembly, installation, test, inspection, adjustment, operation and maintenance and management of the Contract Products. The name,model, specifications and technical indices of the Contract Products are detailed in Annex_________to the Contract.
2.2The Licensor has agreed to grant th Licensee the license and right to design,manufacture,use, sell in the PRC the Contract Products and export the Contract Products. The license and right are nonexclusive and non- transferable.
2.3The Licensor has agreed to provide the Licensee with the Technical Documentation and Software related to the Contract Products .The contents ,copies and time of delivery of the Technical Documentation and Software are detailed in Annex_________and Annex_________to the Contract.
2.4The Licensor has agreed to dispatch his technical personnel to the Contract Factory ,for Technical Services .The specific contents and requirements fo the Technical Services are detailed in Annex _________to the Contract.
2.5The Licensor has agreed to give the Licensee's personnel technical training in Licensor's factories and at the Contract Factory, to ensure that the Licensee's technical personnel; shall master the above technical know - how transferred to the Licensee. The specific contents and requirements of technical training are detailed in Annex_________to the Contract.
2.6The Licensor has agreed,upon the request of the Licensee for a period of 10(ten)years after the date of validity of the Contract ,to supply the Licensee at the most favorable price with the parts, components, raw materials and accessories which are necessary for manufacturing the Contract Products under a separate contract to be signed in due time.
2.7The Licensor has agreed , upon the request of the Licensee for a period of 10(ten) years after the date of validity of the Contract ,to supply the Licensee at the most favorable price with equipment and software which are made or developedby the Licensor and are necessary for manufacturing the Contract Products, and to assist the Licensee in obtaining the equipment and software which are made or developed by the third party and are necessary for manufacturing the Contract Products.
2.8让与人同意,如果合同产品达到合同附件二所规定的技术和质量要求,引进方有权在合同工厂生产的合同产品上标明“由 (让与人名称)许可在中国制造”的字样,至于是否在合同产品上标明上述字样,则由引进方自行决定。
2.8The Licensor has agreed to grant the Licensee the license and right to use, on the Contract Products manufactured by the Contract Factory ,the wordMade in China under license of followed by Name of the Licensor, at the option of the Licensee, provided the Contract Products can meet the technical and quality requirement as specified in Annex _________of the Contract.
3. CONTRACT PRICE
3.1The total Contract price, which is based on the contents and scope stipulated in Article 2 to the Contract and the Licensor's fulfilment of his obligations under the Contract ,shall be DEM, (SAY:_________DEUTSCH MARK ONLY) details as follows:
3.1.1 Price for Technical Know - how:_________ DEM (SAY: _________ DEUTSCH MARK ONLY). The breakdown prices of the technical know- how are as follows:
A.Technology transfer fee is:_________
B.Technical documentation and software fee (CIP Beijing Port)is_________DEM (SAY:_________DEUTSCH MARK ONLY).
C.Personnel training fee is _________ DEM (SAY:_________ DEUTSCH MARK ONLY).
D.Technical service fee is _________ DEM (SAY:_________ DEUTSCH MARK ONLY).
3.2The above - mentioned total Contract Price shall be firm and fixed price for the Licensor's obligation under the Contract including all expenses incurred for delivery of the Technical Documentation and Software CIP Beijing Airport, China.
4. TERMS OF PAYMENT
4.1All the payment stipulated in the Contract shall be effected in DEUTSCH MARK (DEM) through an irrevocable letter of credit partial shipment allowed under the I. B. R. D. Loan No._________for the price for the Technical Know - how, obtained from the World Bank opened in favour of the Licensor.
4.2让与人应在合同生效后三十个工作日内,通过其 银行向让与人推荐并经引进方认可的让与人所在国的一个 银行开出不可撤消的信用证,该信用证的金额应等同于合同总价。该信用证将允许按本合同第4.3条规定的支付条件进行支付。
4.2The Licensee shall within thirty(30) working days after effectiveness of the Contract, open an irrevocable letter of credit by the Bank of China, Beijing in favour of the Licensor,in a bank in his country nominated by the Licensor and accepted by the Licensor,for an amount equivalent to the total Contract price, the letter of credit shall permit payments as stipulated in Article 4. 3.
4.3Payment for the Price for the Technical Know - how
10%(ten percent) of the total price for the technical know - how under Article 3, namely _________ DEM (SAY:_________ DEUTSCH MARK ONLY) shall be paid after the Licensor has presented the following documents provided they are in confirmity with the stipulations of the Contract.
A.One photostat copy of valid export license issued by the relevant authorities of the Licensor's or Licensor's subcontractor's country ,or one copy of the letter issued by the relevant authority of the Licensor's country stating that the valid export license is not required.
B.One original and one copy of the irrevocable letter of guarantee issued by the Licensor's Bank for a sum of 10% of the total price for the technical know - how in favor of the Licensee. The specimen of the little of guarantee is detailed in Annex_________to the contract.
C.Four copies of the proformal invoice covering the the total price for the technical know - how
D.Two copies of the sight draft to be drawn on the Licensee to the Bank of China, Beijing.
E.Four copies of commercial invoice.
The above - mentioned documents shall be presented not earlier than 30 days after effectiveness of the Contract.
25%(twenty five percent)of the total price for the technical know - how under Article 3, namely _________ DEM(SAY: _________ DEUTSCH MARK ONLY)shall be paid after the Licensor has delivered the first batch of the Technical Documentation/Software as stipulated in Annex _________to the Contract and against presentation of the following documents provided they are in confirmity with the stipulations of the Contract:
A.Five copies of the commercial invoice.
B.Two copies of the sight draft to be drawn on the Licensee to the Bank of China, Beijing.
C.Five copies of the airway bill for the first batch of the Technical Documentation and/or Software.
D.Five copies of the packing list for the first batch of the Technical Documentation and/or Software.
E.Two copies of the letter issued by the Licensee confiming that the Licensor has delivered to the Licensee the first batch of Technical Documentation and/or Software as stipulated in Annex_________and Annex_________
50%(fifty percent)of the total price for the technical know - how under Article 3, namely _________ DEM(SAY:_________ DEUTSCH MARK ONLY) shall be paid after the Licensor has delivered the last batch of the Technical Documentation/Software as stipulated in Annex __________to the Contract and against presentation of the following documents provided they are in conformity with the stipulations of the Contract:
A.Four copies of the commercial invoice.
B.Two copies of the sight draft to be drawn on the Licensee to the Bank of China,Beijing.
C.Five copies of the airway bill for delivering the last batch of the Technical Documentation and/or Software.
D.Five copies of the packing list for delivering the last batch of the Technical Documentation and/or Software.
E.Two copies of the letter issued by the Licensee confirming that the Licensor has delivered to the Licensee all Technical Documentations as stipulated in Annex _________
15%(fifteen percent)of the total price for the technical know - how under Article 3,namely _________ DEM (SAY:_________ DEUTSCH MARK ONLY)shall be paid after acceptance of the Contract Products by the Licensee and against presentation of the following documents provided they are in conformity with the stipulations of the Contract:
A.Four copies of the commercial invoice.
B.Two copies of the sight draft to be drawn on the Licensee to the Bank of China, Beijing.
C.Two copies of the Acceptance Certificate for the Contract Products signed by the both Parties.
4.4The Licensee shall have the right to deduct from the performance Bond or relevant Payment under negotiation the penalties in form of liquidate damages which Licensor shall pay in accordance with the stipulations of the Contract.
4.5The banking charges incurred in the P.R.C.shall be borne by the Licensee and those incurred outside the P.R.C. shall be borne by the Licensor. The Licensor shall bear all interest charges in ease they occur in the negotiation of the payment, ufiless these interest charges have been occurred by reasons of default by the Licensee.
5. DELIVERY OF THE TECHNICAL DOCUMENTATION AND SOFTWARE
5.1The Licensor shall deliver to the Licensee the Technical Documentation and Software at Beijing Airport in accordance with the contents, copies and time stipulated in Annex_________to the Conttact. The risk of the Technical Documentation shall be transferred from the Licensor to the Licensee after its arrival at Beijing Airport, China.
5.2The data stamped by Beijing Airport,China shall be the actual date of delivery the Technical Documentation and Software.
5.3在每批技术资料/软件交运后的两个工作日内,让与人应通过电伟或传真将合同号、空运单号、提单日期、资料号、邮包号、重量、航班和预计到达时间通知引进方和合同工厂。与此同时,让与人应向引进方和合同工厂各邮寄两套空运单和技术资/软件的详细清单。
5.3The Licensor shall, within two(2) working days, after dispatching each batch of the Technical Documentation and/or Software, inform the Licensee and Contract Factory by telex or fax of the Contract number,airway bill numder, airway bill date, documentation number,number of parcels, weight, flight and expected arrival date. At the same time, the Licensor shall airmail to the Licensee and the Contract Factory each two copies of the airway bill and the detailed list of the Technical Documentation/Software.
5.4In case of any loss,damages or shortage caused to the Technical Documentation and Software during the transportation ,the Licensor shall make supplementary or replaceable delivery to the Licensee within 45(forty- five)days after receiving the Licensee ' written notice without any charges.
5.5The Technical Documentation and Software shall be packed in strong cases suitable for long distance transportation and numerous handling with protective measures against moisture and rain.
5.6The following contents shall be marked on the cover of each package of the Technical Documentation and Software with indelible paint in conspicuous English printed words:
A.Contract No.:_________
B.Consignee: International Tendering Company of China National Technical Import and Export Corporation
C.Consignee Code:_________
D.Destination Airport:_________
E.Shipping Mark:_________
F.Gross/Net Weight(kg):_________
G.Item No. /Case No.:_________
H.Dimension(LxWxHin CM):_________
5.7In side of each package of the Technical Documentation and Software, there shall be two copies of the detailed list to identify each part.
5.8For the delivery of the Technical Documentation and Software, partial shipment is allowed. Transshipment is not allowed.
5.9The Technical Documentation and Software, shall be carried flight belonging to the member countries of the World Bank and Switzerland.
5.10The Licensor shall effect the insurance, with insurer from eligible source country, for an amount of 110% of the total contract price on'all risks and war risk basis at the Licensor's expenses with the Licensee as the beneficiary.
5.11All of the Technical Documentation and Software,and services supplied under the Contract shall have their origin in the countries and areas eligible under the current World Bank Guideline for Procurement.
6. TECHNICAL SERVICE AND PERSONNEL TRAINING
6.1The Licensor shall send his skilled,healthy and competent technical personnel to the Contract Factory of the Licensee to provide Technical Service on site in accordance with the stipulations of the Contract. The stipulation, the number of personnel, speciality, task,content and duration in PRC are detailed in Annex_________to the Contract.
6.2The Licensee shall provide assistance for entry any exit visa, work and life in PRC for the Licensor's Technical Service personnel. The treatment conditions of the Licensor's technical personnel in PRC are detailed in Annex _________ to the Contract.
6.3The Licensor's technical personnel sent to PRC for the Technical Service shall observe the laws of the People' s Republic of China and rules and regulations of the Contract Factory in the period of service in PRC.
6.4The Licensee shall send his technical personnel to the relevant factories of the Licensor for technical training. The number of personnel, speciality, content, duration and requirement of training are detailed in Annex _________ to the Contract.
6.5The licensor shall provide assistance for entry and exit visa and shall provide the facilities necessary for the technical training for the Licensee's trainees. The treatment conditions of the trainees in the Licensor's country are detailed in Annex _________ to the Contract.
6.6The Licensee's personnel under training shall observe the laws of the Licensor's country and the rules and regulations of the Licensor's factories in the period of training.
7. ACCEPTANCE OF THE CONTRACT PRODUCTS
7.1In order to verify the completeness,correctness and reliability of the Technical Documentation and Software supplied by the Licensor under the Contract, the Licensor shall, at his own expensesend his representatives to carry out acceptance test on the Contract Products jointly with the technical personnel of the Licensee in the Contract Factory. The specific procedure of the acceptance test and the standard of the acceptance are detailed in Annex _________to the Contract.
7.2If the technical performances of the Contract Products specified in Annex _________ to the Contract are achieved in the acceptance tests, both parties'authorized representative shall sign four copies of the acceptance certificate for the Contract Products and, two copies for each party.
7.3If any technical performance of the Contract Products specified in Annex _________ to the Contract is not achieved in the acceptance tests, both Parties shall have friendly consultation and discussion and jointly analyse the causes and take measures to eliminate the defect. The second acceptance test shall'be carried out after the defects have been eliminated.
7.4如果由于让与人的原因造成第一资历验收试验失败,让与人将采取措施排除故障,并再次派技术人员参加到二次验收试验,费用由让与人承担,同时让与人应承担第二次验收试验,费用由让与人承担,同时让与人应承担第二次验收试验的有关直接费用,包括材料费。如果是由于引进方的责任造成第一次验收失败,引进方将采取措施排除故障,费用处理,并承担第二次验收试验的有关直接费用。
7.4If the responsibility for the failure of the first acceptance test lies with the Licensor, the Licensor shall, at his own expenses, take measures to eliminate the defects, again send his technical personnel to participate in the second acceptance test and shall bear all the expenses incurred in the second acceptance test including the expenses for the materials used in the second acceptance test. If the responsibility for the failure of the first acceptance test lies with the Licensee, the Licensee shall, at his own expenses, take measures to eliminated the defects and bear all the relevant expenses incurred in the second acceptance test.
7.5在第二次验收试验时,如果是由于让与人的责任导致合同产品的技术指标仍未达到合同附件 的要求,排除故障,再次派技术人员参加第三次验收试验,并承担第三次验收试验的有关费用,包括材料费。如果由于引进方的责任造成第二次试验失败,引进方将采取措施排除故障,费用处理,并承担第三次验收试验的有关费用。
7.5If it is due to the Licensor' s responsibility that any technical performance of the Contract Products specified in Annex _________ to the Contract is still not achieved in the second acceptance test, the Licensor shall compensate the Licensee for the direct expenses sustained by the Licensee ,for the acceptance test, and shall at his own expenses, take measures to eliminate the defects and send his technical personnel to participate in the third acceptance test including the expenses for the materials used in the third acceptance test. If the responsibility for the failure of the second acceptance test lies with the Licensee, the Licensee shall, at his own expenses ,take measures to eliminate the defects and bear the relevant expenses incurred in the third acceptance test.
7.6如果由于让与人的责任造成在上述三次验收试验中合同产品的技术指标仍未达到合同附件 的要求,合同条款第87款将被引用。如果由于引进方的责任造成在上述三次验收试验中合同产品的技术指标仍未达到要求,双方将通过协商达成进一步执行合同的协议。
7.6If it is due to the Licensor's responsibility that any technical performance of the Contract Products specified in Annex _________ to the Contract is still not achieved in the above - mentioned three acceptance tests, the stipulations in ClauseS. 7shall be applied. If the responsibility for the failure of the above--mentioned three acceptance tests lies with the Licensee, then both parties shall discuss and agree upon further execution of the Contract.
8. GUARANTEES AND CLAIMS
8.1The Licensor shall guarantee that the Technical Documentation and Software supplied by the Licensor to the Licensee in accordance with the Contract shall be of the latest and well- proved Technical Documentation and Software which are actually used by the Licensor and that the improved, modified and developed Technical Documentation and Software shall be supplied in time by the Licensor to the Licensee in the course of implementation of the Contract, without charge.
8.2The Licensor shall guarantee that the Technical Documentation and Software supplied by the Licensor to the Licensee in accordance with the Contract shall be complete, correct and legible, and shall be delivered in time in accordance with the stipulations in Annex _________to the Contract.
8.3If it is found by the Licensee that the Technical Documentation and Software supplied by the Licensor is not in conformity with the stipulations in Annex _________ to the Contract and Clause 8.2 to the Contract, the Licensor shall mail the related Technical Documentation to Licensee free of charge within 30 (thirty) days after receiving the Licensee's written notice~
8.4If the Licensor fails to deliver the Technical Documentation and Software in accordance with the time schedule stipulated in Annex _________ to the Contract and Clause 8.3, the Licensor shall pay to the Licensee penalties for late delivery of the Technical Documentation and Software at the following rates:
0.5%(point five percent)of the total Contract price of the Technical Documentation and Software for each full week of late delivery. The above - mentioned total penalties shall not exceed 5 % (five percent) of the total Contract price of this Contract.
The penalty paid shall be in the form of Liquidated Damages and shall fully indemnify the Licensee for all costs incurred as a result of such delay.
8.5Payment of penalty made by the Licensor to the Licensee in accordance with the stipulation in Clause 8. 4 to the Contract shall not release the Licensor from his obligations to continue to deliver the Technical Documentation and Software which is subject to penalties for late delivery.
8.6If the period for late delivery of the Technical Documentation and Software exceeds 6(six) months, the Licensee shall be entitled to terminate the Contract. In such case, the Licensor shall return to the Licensee the total amounts which the Licensee has already paid plus interest at the rate of 12% per annual thereon.
8.7If it is due to the Licensor's responsibility that any technical performance of the Contract Products is not achieved in the acceptance tests, the case shall be dealt with in the following manner:
如果由于让与人的责任造成合同产品在验收时不能达到合同附件 所规定的技术指标,以至于引进方不能把合同产品投入成批生产,引进方有权终止合同。在这种情况下,让与人应将引进方已支付的全部金额加上年利率为10%的利息,一并退还给引进方,同时根据双方的协定,赔偿引进方的直接损失。如果由于让与人的责任造成合同产品在验收时有些技术指标达不到附件 的规定,但引进方还能将产品投入生产,让与人应根据上述技术偏差的严重程度按合同总价的5%-10%赔偿引进方的直接损失。
If it is due to the Licensor's responsibility that any technical performance of the Contract Products specified in Annex _________ to the Contract is not achieved,and the Licensee can not put the Contract Products into production, the Licensee shall be entitled to terminate the Contract. In the case of termination of the Contract,the Licensor shall return to the Licensee the total amounts which have already been paid by the Licensee to the Licensor plus interest at the rate 12% per annual thereon and compensate the Licensee for direct losses upon mutual agreement.If it is due to the Licensor's responsibility that only some of the technical performances of the Contract Products specified in Annex _________ to the Contract are not achieved, but the Licensee still can put the Contract Products into production ,the Licensor shall compensate Licensee for the direct expenses at an amount of 5 % - 10% (five to ten percent) of contract price according to the significauts of the discrepancy.
9. INFRINGEMENTS AND CONFIDENTIALITY
9.1让与人保证对根据本合同向引进方提供的一切专有技术和技术资料和软件拥有合法的所有权,并有权向引进方转让该专有技术和合同设备。如果发生第三方指控侵权,让与人应负责与第三方交涉,并承担由此引起的法律上和经济上的责任。
9.1The Licensor shall guarantee that the Licensor has lawful ownership of all the technical knowhow, the Technical Documentation and Software supplied by the Licensor to the Licensee in accordance with the Contract, and that the Licensor has the right to transfer the technology and supply the Contract Equipment and the Parts to the Licensee. In case any third party brings a charge of infringement, the Licensor shall take up the matter with the third party and bear all legal and financial responsibilities which may arise.
9.2合同双方应在十年内对相互提供的具有技术和商务性质的技术决窍、技术文件、以及有关合同工厂的水文、地理和生产等方面的资料承担保密义务。如果上述技术诀窍、技术文件或资料的所有方还是由第三方公开的,则另一方不再承担对上述技术诀窍、技术文件或资料的保密义务。
9.2Both Parties shall keep secret all technical know- how,technical documentation and all the information of hydrology, geology and production of the Contract Factory regarding the business of the other party, being either technical or commercial of nature, during the validity period of the Contract as well as thereafter for a period of 10 years. If a part of the whole of such know - how,information or documentation becomes or is made publicly known, either the Party knowning such Know - how, in formation or documentation or through a third party, the other Party shall no longer be held to his secrecy obligation.
9.3The Licensee shall have the right to use the technical know - how and the Technical Documentations and Software supplied by the Licensor to design, manufacture and sell the Contract Products after the termination of the Contract.
10. TAXES AND DUTIES
10.1ALL taxes and duties in connection with and in the execution of the Contract to be levied by the Government of the PRC on the Licensee in accordance with the Chinese tax laws and regulations in effect shall be paid by the Licensee.
10.2All the taxes and duties in connection with and in the execution of the Contract to be levied by the Government of the PRC on the Licensor in accordance with the tax laws in effect and the Agreement between the Government of the People's Republic of China and the Government of Federal Republic of Germany for the Reciprocal Avoidance of Double Taxation and the Provention of Fiscal Evasion with respect to Taxes on Income and Property'shall be borne by the Licensor.
10.3All the taxes and duties in connection with and in thee execution of the Contract to be levied outside the PRC shall be paid by the Licensor.
11. PERFORMANCE BOND
11.1合同双方签字后三十天以内,让与人应提交金额为合同总价10%的履约保函,该保函应由北京中国 银行根据外国某一 银行向北京中国 银行提交的反担保开具。该履约保函的有效期将持续到合同产品验收和合同设备保证期结束以后。
11.1The Licensor shall, within thirty (30) calendar days after signing of the Contract, furnish a Performance Bond to the Licensee, issued by the Bank of _________,Beijing against the counter - guarantee issued by a foreign bank to the Bank of China, Beijing;in the amount of ten (10) percent of the total Contract Price. The Performance Bond shall remain valid until the acceptance of the Contract Products and expiration of the guarantee period of the Contract Equipment.
11.2The Performance Bond shall be furnished by the Licensor by a Bank Guarantee in the form as stipulated in Annex _________ to the Contract. The cost thereof shallbe borne by the Licensor.
11.3In case the Licensor fails to perform any of his obligations under the Contract,the Licensee shall have the right to have a recourse from the Performance Bond.
12. FORCE MAJEURE
12.1If either of the contracting parties is prevented from executing the Contract by such cases of force majeure as war, serious flood,fire,typhoon and earthquake or other cases which are agreed upon by both parties as cases of force majeure ,the time for performance of the Contract shall be extendecl by a period equivalent to the effect of such cases.
12.2The affected party shall notify the other party of cases of force majeure occurred by telex, cable or fax as soon as possible and shall send by registered airmail, within 14 (fourteen) days thereafter, a certifcate issued by the authority or department concerned to the other party for confirmation.
12.3Should the effect of the force majeure cases last for more than 120(one hundred and twenty) days, both parties shall settle the problem of further execution of the Contract through friendly consultation as soon as possible.
13. SETTLEMENT OF DISPUTES
13.1All the disputes in connection with or in the execution of the Contract shall be settled by both Parties through friendly consultations. In case no settlement to the disputes can be reached by both Parties through friendly consultations, the disputes shall be settled through arbitration.
13.2The arbitration shall take place in Stockholm,Sweden,and be conducted by the Arbitration Institute of Chamber of Commerce in Stockholm according to the provisional procedures and rules of the said Arbitration Commission.
13.3The arbitration award shall be final and binding on both Parties.
14. EFFECTIVENESS OF THE CONTRACT AND MISCELLANEOUS
14.1This Contract is signed by the authorized representatives of both parties on _________ in Beijing. Both parties shall file applications with their respective governments for ratification of the Contract,if required. The date of effectiveness of the Contract shall be the date of last happening of the followings:
A.Ratification of the Contract from the last party.
B.Approval of the Contract by the World Bank.
C.The Licensee's receipt of the Performance Bond.
Both parties shall do their utmost to obtain the ratification, and shall advise the other party by telex or fax and send a letter for confirmation.
14.2If the Contract cannot come into force within 6(six)months after the date of signing the Contract, both parties shall have the right to cancel the Contract.
14.3The Contract shall be in force for _________ years from the effective date of the Contract.After the expiration of its term of validity, the Contract shall automatically become null and void.
14.4The outstanding creditor's right and debts between both parties at the expiration of the Contract shall not be influenced by the expiration of the Contract. The debtor shall continue to pay the creditor the outstanding debts.
14.5This Contract is made out in the English language in two originals, one for each party.
14.6The Contract is formed by Article 1 to Article 15 and Annex I to Annex _________. The text and Annex of the Contract shall be integral parts of the Contract and have the same legal force.
14.7Any changes, amendment, supplement and subtractions to the stipulations of the Contract shall be valid after both parties'authorized representatives have signed written documents which shall form integral parts of the Contract and shall have the same legal force as the Contract.
14.8In the course of implementation of the Contract, all the communications between both parties shall be in the English language. Formal notice shall be in written form in duplicate and be sent by registered airmail.
14.9Notwithstanding the stipulations in Clause 14. 1 of this Clause of this Contract,both parties shall have the right to terminate this Contract which has already or may become effective, if the Contract No._________-has not come into effect not due to the Licensor' s responsibility within 3 months after signing this Contract. In case that the Contract No._________can not become effective due to the Licensor' s responsibility within 3 months after the signing of them,the Licensee shall have the right to decide within two months thereafter whether or. not to terminate this Contract. In such cases of termination, both parties shall settle account through friendly consultation as regard to compensation of payment and expenses already made by each party.
15. LEGAL ADDRESSES
15.1The Licensee:
Name:_________
Address:_________
Telex:_________
Fax:_________
15.2The Licensor:
Name:_________
Address:_________
Telex:_________
Fax:_________
Licensee(signature):_________ Licensor(signature):_________