License Contract of the Transfer of Technology

ARTICLE 13 SETTLEMENT OF DISPUTES

13.1 All 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 dis-putes can be reached by both Parties through friendly con-sultations,the disputes shall be settled through arbitra-tion.

13.2 The arbitration shall take place in Stockholm, Sweden, and be conducted by the Arbitration Institute of Chamber of Commerce in Stockholm according to the provisional proce-dures and rules of the said Arbitration Commission.

13.3 The arbitration award shall be final and binding on both Parties.

13.4 The arbitration fee shall be borne by the losing party, ex-cept as otherwise awarded by the said Arbitration Commis-sion.

13.5 In course of arbitration, both parties shall continue to exe-cute the Contract except the part of the Contract which is under arbitration.

ARTICLE 14 EFFECTIVENESS OF THE CONTRACT AND MISCELLANEOUS

14.1 This Contract is signed by the authorized representatives of both parties on ______ in Beijing. Both parties shall file ap-plications 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 follow-ings:

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.

14.2 If 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.

14.3 The Contract shall be in force for 5 years from the effective date of the Contract. After the expiration of its term of va-lidity, the Contract shall automatically become null and void.

14.4 The outstanding creditor's right and edbts between both parties at the expiration of the Contract shall not be influ- enced by the expiration of the Contract. The debtor shall continue to pay the creditor the outstanding debts.

14.5 This Contract is made out in the English language in two o-rigingals, one for each party.

14.6 The Contract is formed by Article I 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 le-gal force.

14.7 Any changes, amendment, supplement and subtractions to the stipulations of the Contract shall be valid after both parties' authorized representatives have signed written doc-uments which shall form integral parts of the Contract and shall have the same legal force as the Contract.