COMPUTER SOFTWARE LICENSING AGREEMENT

Whole Doc.

This contract made as of this ___________ day， by and between ___________，a Chinese enterprise legal person duly organized and registered under  the laws of the People’s Republic of China on behalf of __________， a  Chinese entity duly organized and  registered  under  the  laws  of  the  People’s Republic  of  China  （both  of  the  foregoing  parties  are   hereinafter collectively referred to as “Buyer”）  and  ______________，  a  corporation organized and existing under the laws of ___________（“Seller”） as follows：

1. The agreement between the parties （“Contract”） consists of the  terms and conditions set forth herein and the following  schedules  incorporated by reference：

Annex A   System Components

Annex B   Delivery and Installation Timetable

Annex C   Price and Payment Terms

Annex D   Product Description and Specifications

Annex E   Seller‘s Software License Agreement

Annex F   End-user Software sublicense Agreement

2. Definitions

The  following  terms  shall  have  the  following  meanings  in  this Contract：

（a） Commercial ___________system. （sketch）

（b） Consumer _____________system. （sketch）

（c） Control Computer： A component of the  __________  System  used  by Buyer for __________.

（d） System

3. Provision of The System

Seller shall  provide  the  System  in  accordance  with  the  Product Description and Specifications （Annex D）  and  Delivery  and  Installation Timetable （Annex B） incorporated herein and Buyer shall pay for the System in accordance with the Price and  Payment  Terms  （Annex  C）  incorporated herein. In addition， Seller will provide the _________ System to the Buyer in accordance with Annex C. For the avoidance of doubt， the term  “System”as used in this Contract shall solely refer  to  the  Seller’s  __________ system.

4. Payment

（a） In full consideration for providing the  System  and  all  related items to be provided under this Contract， Buyer shall pay  to  Seller  the amount set forth in Annex C as the purchase price for the System.

（b） Payments shall be made in accordance with Annex C.

5. Delivery and Installation

（a） Delivery of the  System  will  be  made  in  accordance  with  the delivery schedule set forth in Annex B. Shipping charges are specified  in Annex C. Buyer shall have the right  to  specify  the  carrier  and  shall instruct Seller  of  its  choice  in  writing.  In  the  absence  of  such instructions， Seller will select the carrier， but shall not thereby assume any liability in connection  with  shipment，  nor  shall  the  carrier  be considered the agent of Seller. Unless requested by  Buyer，  Seller  shall have no obligation to obtain insurance for Buyer or assist the Buyer  with any shipping claims.

（b） The Seller shall， immediately upon the completion of  the  loading of the goods， advise the Buyer by cable/telex of the loading of the goods，the contract number， commodity， quantity， invoiced value and gross weight.

（c） Seller or  its  designated  service  provider  shall  install  the _________ System at Buyer’s designated facility in the  People’s  Republic of China. Installation charges are specified in Annex C.  Buyer  shall  be responsible for timely completion， in  accordance  with  the  Installation Timetable herein （Annex B）， of  any  necessary  on-site  preparations  and modifications of Buyer’s facilities based on the specifications set  forth in the Site Preparation Guidelines previously  provided  to  Buyer.  Buyer shall provide additional test equipment and resources （including  but  not limited to floor space，  power  outlets，  interconnecting  cables，  racks，satellite facilities and the like）， if needed， in accordance with the Site Preparation guidelines. Buyer shall have the responsibility for and  shall pay for all such facilities， preparations， equipment， resources，  licenses and permits required thereof.

6. Compliance with Export Control Laws of the Seller’s Country

（a） Seller agrees to apply for  all  _____________  Government  export licenses，  permits  and  approvals  required  for  the  exportation   from ___________ to China of the products and technology  to  be  purchased  by Buyer from Seller. In the event that，  despite  Seller’s  best  efforts，Seller is unable to obtain any and  all  license，  permits  and  approvals needed to lawfully export such products and technology from __________  to China， this Contract is immediately terminated， the Seller and  Buyer  are excused from performance， and each Party agrees to hold  the  other  Party harmless.

（b） Buyer hereby  undertakes  to  comply  with  the  export  laws  and regulations of __________ and agrees that， without obtaining the necessary license of approval from the Government，  Buyer  will  not  knowingly  （i）

export， directly or indirectly， any  origin  technical  data  or  software acquired from Seller， or any direct product of that technical data， to any country for which the Government or any agency  thereof  at  the  time  of export requires an export license or other governmental approval； or  （ii）

disclose any origin technical data or software acquired from Seller to any national of any country for which the Government  or  any  agency  thereof requires an export license or other governmental approval.

（c） Within __________months of  the  signing  of  this  contract，  the Seller  agrees  to  inform  the  Buyer  of  the  status  of  the  Seller’s application for the Government  export  licenses，  permits  and  approvals required for the exportation from __________to China of the  products  and technology to be purchased by Buyer from Seller.

7. Title and Risk of Loss

The items purchased by the Buyer shall be delivered  C.I.F.  _________ in accordance with INCOTERMS 1990. Therefore， the risk  of  loss  for  the items purchased by the Buyer shall be borne by the Seller until the  items are delivered to the export carrier. After delivery of the items purchased by the Buyer to the export carrier， the title and risk  of  loss  for  the items purchased by the Buyer shall pass to the Buyer.

8. Acceptance Tests and Acceptance

（a） Acceptance testing of the  System  shall  be  in  accordance  with Seller’s Acceptance Test  Procedure.  Seller  or  its  designated  service provider shall conduct the acceptance tests in accordance with  said  Test Procedure. If any such test is  not  Successfully  Completed  （as  defined below）， Seller or its designated service provider shall evaluate the  test and make any adjustments or corrections of the System as  will  result  in performance of the System in accordance  with  the  Specifications.  Buyer shall be given reasonable prior notice of the  commencement  of，  and  the reasonable opportunity to observe， all such tests.

（b） The term “Successful Completion”， when used in this Contract  with respect to any test， means successful completion of such test  as  defined in the particular test procedure and all references  to  test  denote  the tests in Seller’s Acceptance Test Procedure.

（c） Acceptance of the System （“Acceptance”） for purposes  of  Annex  C shall be deemed  to  have  occurred  when  all  tests  set  forth  in  the Acceptance Test Procedure for the system at  Buyer’s  facility  have  been Successfully completed.

（d） Seller represents and warrants that it will  deliver  to  Buyer  a complete， correct and valid system， capable of accomplishing the technical targets  specified  in  Product   Description   and   Specifications，   as demonstrated by Successful Completion of the  Acceptance  testing  of  the System. Successful Completion shall be deemed as conclusive proof that the System is complete， correct and valid， and capable  of  accomplishing  the technical targets set forth in the Specifications.

9. Shipment in Place and Qualified Acceptance

（a） In the event that the System or any  part  thereof  is  ready  for shipment or installation in accordance with the dates set forth in Annex B and such shipment or installation is delayed more than _________  calendar days pursuant to Buyer’s request or because Buyer is unable to provide the necessary  facilities，  test  equipment  or  resources  for   receipt   or installation of the System， Seller may， at Seller’s option，  notify  Buyer that the System or any part thereof is being treated  as  though  actually shipped， delivered and installed （“Shipped in Place”）。 In addition，  Buyer shall reimburse Seller for all storage  or  other  expenses  which  Seller incurs by reason of such delay.

（b） __________ days following notice of Shipment in Place Seller shall be entitled to invoice Buyer in accordance  with  the  payment  terms  set forth in Annex C hereto （i） for one hundred percent of the purchase  price for commercial __________ system Shipped in Place， and （ii）  with  respect to Systems， the amount that would have been due had  the  System  actually been shipped， with the balance to be invoiced upon Acceptance.

（c） Qualified acceptance by Buyer of the System or any portion thereof（“Qualified Acceptance”） shall occur at any time， either before  or  after the scheduled shipment or installation dates set forth in Annex B，

i） upon determination by  Buyer，  and  written  notification  to Seller， that the System， is suitable to commence the operations for  which Buyer intends to use it； or

ii） that the System has commenced the operations for which Buyer intends to use it.

（d） Qualified Acceptance shall have the same consequences as those set forth in Section 8 （b） above except that the amount due for Systems  shall be the difference between the amount paid to date and _________ percent of the amount that would have been due upon Acceptance， with the  balance  to be invoiced upon Acceptance.

（e） Neither Shipment in Place nor Qualified Acceptance  shall  relieve Seller from any of its responsibilities  under  this  Contract，  including Successful Completion of the Acceptance Tests and correction of defects or deficiencies in accordance with the terms and conditions hereof.

10. Taxes

（a） Any and all taxes， levies， customs  duties，  sales，  use，  excise，value added and similar taxes to be levied on the Buyer in connection with the performance of this Contract for the sale  of  goods  and  repair  and installation services， which are now existing or which may be  hereinafter imposed by any People’s Republic of China governmental  entity，  shall  be borne and paid by the Buyer.

（b） All taxes in  connection  with  the  execution  of  this  Contract imposed by any People’s Republic  of  China  governmental  entity  on  the Seller， and all taxes in connection with the execution  of  this  Contract imposed by any ___________ governmental entity on the Buyer， in accordance with the tax laws which are now  existing  or  which  may  be  hereinafter imposed and the Agreement between the Government of ____________  and  the Government of the People’s Republic of China for the Avoidance  of  Double Taxation and the Prevention of Fiscal Evasion with  Respect  to  Taxes  on Income， shall be borne and paid by the Seller and Buyer， respectively.

（c） With regard to Section  10  （b）  above，  the  Seller  shall  remit payment for such taxes to the relevant Chinese tax authorities through the Buyer within _______ working days after the Seller is in receipt of one（1） original certificate （invoice） for the taxes  levied  by  the  Chinese taxation authorities. The Buyer shall remit payment for such taxes to  the relevant ___________ tax authorities through  the  Seller  within  _______ working days after the Buyer is in receipt of one （1） original certificate（invoice） for the taxes levied by the ___________ taxation authorities.

（d） Any and all taxes， levies， customs  duties，  sales，  use，  excise，value added and similar taxes to be levied on  the  Seller  in  connection with the performance of this Contract for the sale of goods and repair and installation services， which are now existing or which may be  hereinafter imposed by any _________ governmental entity， shall be borne and  paid  by the Seller.

11. Operating Manuals and Other Materials/Training

（a） Seller shall provide with each Commercial ________ system ， one（1） User’s Guide.

（b） Seller shall provide Buyer with three （3） copies of all  operating manuals  and  installation  instructions  for  the  System，  as  well   as maintenance manuals.

（c） Prior to installation of the System， Seller shall provide  Buyer’s employees with a training course in the use of the System ， as well as  in computer management techniques.

Furthermore，  these  employees  shall  observe  the  Acceptance  Test Procedure （ATP）。

The training course and ATP described in this  Article  11  （c）  shall take place over a ________  day  period  at  the  Seller’s  facilities  in _____________， and all related expenses shall be borne by the Seller.

（d） Following installation of the System，  Seller  or  its  designated service provider shall provide to Buyer’s employees a training  course  of up to ________ days in duration on-site at Buyer’s facility.

12. System Warranties

（a） Seller represents and warrants that it is the owner， or beneficial licensee， of all intellectual property rights herein licensed，  leased  or sold to Buyer， and that it has the right to license，  lease  or  sell  the same to Buyer. Seller warrants that  the  System  and  all  equipment  and related software furnished under this Contract  （except  for  the  Control Computer （s） and Control Computer （s） operating system software）， shall be free from defects in material and workmanship for a period of one （1） year after date of Acceptance， except with respect to Commercial  and  Consumer _________ system， for which the period shall extend for one （1） year after date of shipment. During such period Seller shall repair  or  replace  and reinstall at Buyer’s premises the System or any defective portion  thereof without charge. Seller’s warranty does not cover the Control  Computer  or the Control Computer’s operating system software included in  the  System，but Seller shall assign any outstanding manufacturer’s warranty thereof to Buyer， to the extent assignable. If there is  no  such  assigned  warranty that extends one （1） year beyond Acceptance，  Seller  shall  purchase，  in lieu of warranty， for the benefit of Buyer and as  part  of  the  purchase price， an extended hardware and software  maintenance  contract  for  such Control Computer and operating system software which maintenance  contract shall extend for a one （1） year period after acceptance. If any repair  or replacement results from a defect not covered  by  the  warranty  or  from causes other than normal usage and regular installation， Buyer  shall  pay Seller for all labor and materials （including travel expenses） provided by Seller in its attempt to remedy such deficiency.

（b） The warranties set forth herein shall apply only to  items  which，after regular installation and under normal usage， are found to have  been defective within the warranty period. Such warranties shall not  apply  to items  that  have  been  modified  or  altered  without  Seller’s  written approval， or  have  been  subjected  to  abuse，  accident，  negligence  or improper application.

（c） The  warranties  set  forth  herein  are  in  lieu  of  all  other warranties as to performance of the system， express or implied，  including without limitation any implied warranties of  merchantability  or  fitness for a particular purpose. Buyer’s sole and exclusive remedy for any breach by Seller of any of the warranties set forth herein shall be for Seller to make  such  repairs  and/or  replacements  necessary   to   fulfill   such warranties. in no event shall seller be liable  for  any  loss  of  audio，video or data signals， interruption of business， or special，  indirect  or consequential damages of any kind or nature whatsoever. Seller  shall  not be responsible for delays in performing its obligations under this Article resulting from Buyer’s negligence or fault.

13. Nonwarranty Repairs and Spares Support

（a） Until the earlier of （i） _______ years from the Acceptance of  the System， or （ii） the date Buyer Ceases to Operate the System， Seller  shall offer to provide repair services and/or spare parts for the System（“Support Period”）， it being understood that Seller’s  charges  for  spare parts and/or repairs not covered by warranty shall  be  at  Seller’s  then current time and material  rates  or  spare  parts  prices  and  shall  be invoiced as soon as work involved  is  completed.  Seller  shall  have  no obligation hereunder or otherwise to provide further spare parts or repair services to any person that has failed to pay promptly for any such  spare parts or repairs.

（b） Subsequent to the Support Period， Seller may discontinue  offering spare parts and/or repair services for the System  upon  _________  months prior  written  notice  to  Buyer  of  Seller’s  intended  discontinuance，provided however， that Seller， at Seller’s option， either  （i）  grants  to Buyer a nonexclusive license to make or have made for Buyer’s own use  and not for sale any such System components （exclusive of the Control Computer and its operating system  software）  and  furnishes  Buyer  all  necessary documentation， specifications， drawings and other  data，  or  （ii）  allows Buyer the opportunity to purchase sufficient quantities of spare parts  as Buyer deems necessary to maintain and support the System.

（c） For purposes of this Contract， Buyer shall cease  to  operate  the system if Buyer does not use the System furnished by Seller as part of the regular use on a regularly used satellite transponder to encode and decode signals.

14. Extended Maintenance

Prior to the expiration of the warranty  period  for  the  System  set forth in this Contract， Seller  and/or  its  designated  service  provider shall offer to Buyer the opportunity to enter into an extended maintenance contract with  respect  to  the  System  （including  the  related  Control Computer software but excluding the Control Computer  hardware  platform），renewable for successive and consecutive ________ year periods. Seller and Buyer shall discuss proposals for establishing a service center in ______，with the participation of Buyer， for the servicing of the  system.  Seller and Buyer shall also discuss proposals for  future  joint  cooperation  on other projects within China.

15. System Licenses and Condition Precedent to Effectiveness

（a） The Control Computer’s operating system software  is  provided  to Buyer under the terms and conditions of a sublicense  from  the  operating system licensor， as set forth in Annex F herein.

（b） All Seller’s software required for operation of the System and the system is provided to Buyer under the license set forth in Annex E herein.

（c） No  technology  transfer  or  assignment  is  granted  under  this Contract with respect to any products， or systems owned by Seller  or  any proprietary rights owned or sublicensed  by  Seller.  No  right  to  grant sublicenses is granted  or  is  to  be  inferred  or  implied  under  this Contract.

（d） Relevant PRC regulations may require Buyer to obtain the  approval of the Ministry of Foreign Trade and Economic Cooperation （“MOFTEC”） as  a precondition for the effectiveness of （a） the sublicense  of  the  Control Computer’s operating system software to Buyer from  the  operating  system licensor， as set forth in Annex F herein and （b） the license  of  Seller’s software which is required for operation of the System， to  Buyer  as  set forth in Annex E herein （collectively， the  “Annexes”）。  Within  _________ working days of the execution of  the  Contract，  Buyer  and  Seller  will jointly confer with MOFTEC  to  determine  whether  MOFTEC’s  approval  is required for the effectiveness of the Annexes. If MOFTEC informs Buyer and Seller to the satisfaction of Buyer and Seller that  the  Annexes  do  not require its approval，  the  Contract  shall  become  effective  upon  such communication. If， on the other hand， MOFTEC informs Seller and Buyer that the issuance of its approval is a precondition for  the  effectiveness  of the Annexes， then this Contract  shall  become  effective  only  upon  the issuance of such approvals.

If the foregoing conditions are not  fulfilled  within  ________  days after the Contract execution date and Buyer and Seller  do  not  agree  in writing to waive such condition or to extend the time for its  fulfilment，the Seller shall in such event  be  entitled  to  terminate  the  Contract forthwith  and  neither  Party  shall  have  any  further  obligations  or liability towards the other Party under this Contract.

16. System Security Requirements

The parties shall agree to institute a System security  plan  for  the System， which plan outlines security procedures that will  be  established and maintained in order to prevent theft or other compromise of the System during the shipment， storage， operation or any other phase of the parties’activities in connection with this Contract， including  the  warranty  and post-warranty periods. Buyer agrees to adopt and comply with and/or  cause its agents to adopt and comply with  reasonable  alternate  or  additional security requirements Seller may from time to time recommend.

17. Equipment Order Lead Times

Delivery dates for the equipment which is the subject of this Contract appear in Annex B. Order lead times required for additional equipment  are as follows： （sketch）

Buyer will provide a rolling  ________  month  forecast  of  equipment desired for delivery. The first ________ months of this forecast are to be considered firm orders， subject to cancellation  penalties  set  forth  in Annex C.

18. Mutual Representations

Each party represents and warrants that：

（a） It is duly organized and registered and in good  standing  in  its state or country and has power and authority to  enter  into  and  perform this Contract and any other agreements and documents executed or delivered by it in connection  herewith  （collectively，  with  this  Contract，  “the Documents”）。

（b） Its execution， delivery and performance of the Documents have been duly authorized by all necessary action.

19. Confidentiality

（a） Buyer agrees that any  information  or  data  such  as  Seller’s drawings and software （including， without  limitation，  designs，  reports，software documentation， manuals， models， and the like）， revealed by Seller to Buyer and containing proprietary information marked or identified as“proprietary” or “confidential” shall be maintained in confidence by Buyer with at least the same care and safeguards as are applied to  Buyer’s  own proprietary information， but in no event with less than  reasonable  care. Such information or data shall not be duplicated， disclosed to others，  or used without the written permission of Seller. These obligations shall not apply to any information or data which is in  or  comes  into  the  public domain without violation of this provision； or  is  received  lawfully  by Buyer from a third party； or  is  developed  by  Buyer  independently  and without benefit of the information or data received  from  Seller.  Seller shall  have  no  obligation  to  provide   confidential   or   proprietary information.

（b） Buyer’s obligations under this clause shall remain in  effect  for _______ years after this Contract is signed by the Seller and  Buyer.  All tangible forms of Seller’s proprietary information delivered by Seller  to Buyer shall be and remain the property of Seller， and shall be returned to Seller upon Seller’s request.

（c） Except as expressly provided herein， it is agreed that no  license under any patents， trade secrets or copyrights of  Seller  is  granted  to Buyer  by  the  disclosure  of  Seller’s   confidential   or   proprietary information.

（d） Neither party shall use the name or the name of any  trademark  or trade name （or symbolic representation thereof） of the other party or  its parent， subsidiaries  or  other  affiliates，  in  marketing，  advertising，public relations efforts or  in  any  other  manner  without  the  express written consent of such other party in each instance， which consent  shall not unreasonably be withheld or delayed.

20. Indemnification

（a） Each party shall indemnify and hold harmless the other party，  its shareholders，  directors，  officers，  employees，  agents，  designees   and assignees，  or  any  of  them，  from  and  against  all  losses，  damages，liabilities， expenses， costs， claims， suits， demands， actions，  causes  of actions， proceedings， judgments， assessments， deficiencies and charges（collectively， “Damages”） caused by，  relating  to  or  arising  from  the performance by  such  party  in  accordance  with  this  Contract  of  its obligations hereunder， and Buyer  shall  also  indemnify  Seller，  without limiting the foregoing， for any  such  item  caused  by，  relating  to  or arising from （a） the programming services which are authorized for viewing using the System，  including  any  assertion  that  any  such  programming service involves copyright infringement， （b） any  disputes  between  Buyer and any of its program distributors or other distributors or affiliates，（c）  any  disputes  or  claims  involving  the  subscribers  for   Buyer’s programming services， or （d） any assertion that Buyer  has  been  involved in， that Buyer’s conduct of subscription involves， or that Buyer’s use  of the System involves， any unfair competition or violations of  laws，  rules or regulations.

（b） In the event of a third-party claim， with respect to which a party is entitled  to  indemnification  hereunder，  a  party  （the  “Indemnified Party”） shall notify the other party （the “Indemnifying Party”） in writing as soon as practicable， but in no  event  later  than  ______  days  after receipt of such claims. The Indemnified Party’s failure  to  provide  such notice shall not preclude it from seeking indemnification hereunder unless such failure has materially prejudiced the Indemnifying Party’s ability to defend such claim. The Indemnifying Party shall promptly defend such claim（with counsel of  its  own  choosing）  and  the  Indemnified  Party  shall cooperate with the Indemnifying  Party  in  the  defense  of  such  claim，including the settlement of the matter on  the  basis  stipulated  by  the Indemnifying Party （with the Indemnifying Party being responsible for  all costs and expenses of such settlement）。 If the Indemnifying Party within a reasonable time after notice of a claim fails to  defend  the  Indemnified Party， the Indemnified Party shall be entitled to undertake  the  defense，compromise or settlement of such claim at the expense of the  Indemnifying Party. Upon the assumption of the defense of such claim， the  Indemnifying Party may settle， compromise or defend as it sees fit.

Notwithstanding anything to the contrary set forth  in  this  Section，Seller will defend any suit， claim， action or proceeding  brought  against Buyer to the extent that such suit， claim， action or proceeding  is  based on a claim that goods manufactured and sold by Seller  to  Buyer  infringe patent， copyright，  mask  work，  trademark，  trade  secret  or  any  other intellectual property rights of any third party and Seller shall  pay  all damages and costs awarded by final judgment （from which no appeal  may  be taken） against Buyer， as  well  as  its  actual  expenses  and  costs，  on condition that Seller （i） is promptly informed and  furnished  a  copy  of each communication，  notice  or  other  action  relating  to  the  alleged infringement， （ii） is given sole control of  the  defense  （including  the right to select counsel）， and the sole right to compromise and settle such suit or proceeding； provided however， that Seller’s  liability  hereunder，if any， shall be strictly and solely limited to the  amount  of  royalties which would be payable in respect of revenues derived by Seller from Buyer from sales of the infringing goods.  Seller  shall  not  be  obligated  to defend or be liable for costs and damages if the infringement  arises  out of a combination with， an addition to， or modification of the goods  after delivery by Seller， or from use of the goods， or any part thereof， in  the practice of a process.

If any goods manufactured and supplied by Seller to Buyer are held  to infringe any valid patent and Buyer is enjoined from using the same， or if Seller believes  such  infringement  is  likely，  Seller  will  exert  all reasonable efforts at its option and expense （i） to procure for Buyer  the right to use such goods free of any liability for such infringement， or（ii）  replace  or  modify  such  goods  with  a  noninfringing  substitute otherwise complying  substantially  with  all  the  requirements  of  this Contract， or （iii） upon return of the goods， refund the purchase price and the transportation costs of such  goods  （less  reasonable  allowance  for their use and benefit derived  therefrom  for  the  period  of  time  from delivery  to  Buyer，  such  allowance  being  based  on  a   straight-line depreciation period of _______ years from the date of shipment by Seller）。

If the infringement is alleged prior to  completion  of  delivery  of  the goods， Seller has the right to decline to make further  shipments  without being in breach of contract. If Seller has not been enjoined from  selling such goods to Buyer， Seller may （at Seller’s sole  election），  at  Buyer’s request， supply such goods to Buyer， in which event Buyer shall be  deemed to extend to Seller the same patent indemnity hereinabove stated.

The same patent indemnity shall be deemed to be extended to Seller  by Buyer if any suit or proceeding is brought against Seller based on a claim that  the  goods  manufactured  by  Seller  in  compliance  with   Buyer’s specifications infringe any valid patent.

Buyer shall promptly notify Seller of  any  infringement  by  a  third party of  intellectual  property  rights  licensed  to  Buyer  under  this Contract. In the event that a  third  party  infringes  such  intellectual property rights， the Parties shall cooperate  with  one  another  to  take appropriate action to cause such infringement to cease.

The foregoing states the sole and exclusive liability of  the  parties hereto for infringement of patents， copyrights， mask works， trade  secrets trademarks， and other proprietary rights， whether direct or  contributory，and is in lieu of all warranties， express， implied or statutory， in regard thereto， including， without limitation， the warranty against  infringement specified in the uniform commercial code.

21. Limitation of Liability

Buyer agrees that in no event  shall  Seller  be  liable  for  damages hereunder， or for any claim of  any  kind  as  to  any  System  or  System components delivered or for nondelivery  of  such  System  or  components，regardless of the form of the  action，  in  an  amount  greater  than  the purchase price of the System or components in respect of which such  claim is made.

In no event shall Seller be liable for any loss of  profits，  loss  of use， interruption of  business，  or  indirect，  special  or  consequential damages of any kind.

22. Force Majeure

The term “Force Majeure” means acts of  God，  fire，  casualty，  flood，earthquake， strikes or lockouts， riots， insurrections or civil  disorders，embargoes， war， any  future  law，  order，  regulation，  or  other  act  of government， and  other  delays  beyond  Seller’s  reasonable  control.  If Seller’s performance of this Contract is prevented， restricted， delayed or interfered with by reason of Force Majeure， Seller’s performance shall  be excused to the extent delayed or prevented  by  Force  Majeure，  provided，however， that Seller take reasonable steps to avoid or remove such  causes of nonperformance and shall  continue  performance  whenever  and  to  the extent such causes are removed.

If， due to a Force Majeure  event，  the  Buyer  and/or  Seller  cannot accomplish its contractual obligations for a period of _______ consecutive months， the Buyer and Seller shall meet and come to  an  agreement  within the shortest possible period of time upon the  conditions  on  which  they could continue the execution of this contract.

Should the Buyer and Seller fail to agree on the  conditions  of  such continuation， the matter shall be referred to  arbitration  in  accordance with Article 26 hereof.

23. Termination

（a） Buyer or Seller shall have the right to terminate this Contract if the other makes an assignment for the benefit of creditors， or a receiver，trustee in bankruptcy or similar officer is appointed to  take  charge  of all or any part of the party’s property or business or  is  adjudicated  a bankrupt.

（b） Seller shall have the right to terminate this  Contract  if  Buyer neglects or fails to make payment in accordance with the terms hereof  and such condition is not remedied within  ____________  business  days  after written notice to Buyer. Seller may， at Seller’s option， extend the  time for Buyer’s cure.

24. Nonwaiver of Rights

Neither the waiver by a party hereto of a  breach  of，  or  a  default under， any of the provisions of this Contract， nor the failure of a  party on one or more occasions，  to  enforce  any  of  the  provisions  of  this Contract or to exercise any right or privilege hereunder shall  thereafter be construed as a waiver of any subsequent breach  or  default，  or  as  a waiver of any of such provisions， rights or privileges hereunder.

25. Notices

All notices， requests， or other communications which may  be  sent  by either party to the other party pursuant to  this  Contract  shall  be  in writing and shall be addressed as follows：

If to Seller：               If to Buyer：

All communications between the parties in the course  of  the  present Contract shall be made  in  ___________  language  by  registered  airmail letter sent to the addresses set forth herein or by facsimile. The date of receipt of notice shall be deemed to be _______ days after its postmark in the case of registered mail or the date of dispatch of a facsimile.

26. Applicable Law and Resolution of Disputes

This Contract is made in accordance with the Foreign Economic Contract Law of the People’s Republic of China and the laws of ___________（country）。 The laws of ____________ （country）  shall  be  applied  to  the settlement of any disputes arising from this Contract.

（a） Consultations. In the event any dispute arises in connection  with the validity， interpretation， or implementation of this Contract or any of its annexes， the Parties shall attempt in the first  instance  to  resolve such dispute  through  friendly  consultations.  If  the  dispute  is  not resolved in this manner within ______ days after the  date  on  which  one Party has served written notice on the other Party for the commencement of consultations， then either party may refer the dispute to  arbitration  in accordance with the provisions of this Section 26.

（b） Arbitration. （sketch）

27. Binding Effect

These terms and conditions shall be binding  upon  and  inure  to  the benefit of the parties hereto， their successors and permitted assigns.

28. Entire Contract

The terms  and  conditions  incorporated  herein  contain  the  entire agreement and understanding  between  the  parties  with  respect  to  the subject matter hereof  and  merge  and  supersede  all  prior  agreements，understandings and representations. No additions or modifications shall be effective unless in writing signed by  the  parties  hereto.  The  present Contract shall be made in __________ Language in four （4） originals， two（2） for each party.

In witness whereof， the parties have duly executed  this  Contract  on the date first above written.

SELLER：                     BUYER：

By：                         By：

Annex A  System Components （sketch）