License Contract of the Transfer of Technology

9.3 The Licensee shall have the right to use the technical know - how and the Technical Documentations and Software supplied by Licensor to design, manufacture and sell the Contract Products after the termination of the Contract.

ARTICLE 10 TAXES AND DUTIES

10.1 ALL taxes and duties in connection with and in the execu-tion 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 Li-censee.

10.2 All the taxes and duties in connection with and in the exe-cution 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 Dou-ble Taxation and the Provention of Fiscal Evasion with re-spect to Taxes on Income and Property" shall be borne by the Licensor.

10.3 All the taxes and duties in connection with and in thee exe-cution of the Contract to be levied outside the PRC shall be paid by the Licensor.

ARTICLE 11 PERFORMANCE BOND

11.1 The Licensor shall, within thirty (30) calendar days after signing of the Contract, furnish a Performance Bond to the Licensee,issued by the Bank of China ,Beijing against the counter-guaranteeissued by a foreign bank to the Bank of China ,Bejing; in the amount of the (10) percent of the total Contract Price. The Performance Bond shall remain valid until the acceptance of the Contract Products and ex-piration of the guarantee period of the Contract Equip-ment.

11.2 The 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 shall be borne by the Licensor.

11.3 In 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.

ARTICLE 12 FORCE MAJEURE

12.1 If either of the contracting parties is prevented from execut-ing the Contract by such cases of force majeure as war, seri-ous 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 extended by a period equivalent to the effect of such cases.

12.2 The 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 au-thority or department concerned to the other party for con-firmairon.

12.3 Should 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.