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authorities of the Licensor’s of Licensor’s subcontractor’s country, or one copy of the letter issued by the relevant authority of the Licensor’s country starting 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 of 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 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.

4.3.2 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 conformity 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.

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E. Two copies of the letter issued by the Licensee confirming that the Licensor has delivered to the Licensee the first batch of Technical Documentation and/or Software as stipulated in Annex _____and Annex _____

4.3.3 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 packing list 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 _____

4.3.4 15% (fifty 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

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signed by the both Parties.

4.4 The License 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.

4.5 The 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 charge in case they occur in the negotiation of the payment, unless these interest charges have been occurred by reasons of default by the Licensee.

ARTICLE 5 DELIVERY OF THE TECHNICAL

DOCUMENTATION AND SOFTWARE

5.1 The 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 Contract. The risk of the Technical Documentation shall be transferred from the Licensor to the Licensee after its arrival at Beijing Airport, China.

5.2 The data stamped by Beijing Airport, China shall be the actual date of delivery the Technical Documentation and Software.

5.3 The 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, number of parcels, weight, flight and expected arrival date. At the same time, the Licensor shall airmail to the Licensee and the

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Contract Factory each two copies of the airway bill and the detailed list of the Technical Documentation/Software.

5.4 In 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’s written notice without any charges.

5.5 The 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.

5.6 The 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: Beijing Airport. E. Shipping Mark: _____. F. Gross/Net Weight (kg): _____ G. Item No./Case No.: ______

H. Dimension (L x W x H in CM): ______

5.7 In side of each package of the Technical Documentation and software, there shall be two copies of the detailed list to identify each part.

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5.8 For the delivery of the Technical Documentation and Software, partial shipment is allowed. Transshipment is not allowed.

5.9 The Technical Documentation and Software shall be carried flight belonging to the member countries of the World Bank and Switzerland.

5.10 The Licensor shall effect the insurance, with insurer from eligible source country, for and 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.

5.11 All 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.

ARTICLE 6 TECHNICAL SERVICE

AND PERSONNEL TRAINING

6.1 The 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, specialty, task, content and duration in PRC are detailed in Annex _____ to the Contract.

6.2 The 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

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