License Contract of the Transfer of Technology

A. Five copies of the commercial invoice.

B. Two copies of the sight draft to be drawn on the Li-censee 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 con-firming that the Licensor has delivered to the Licensee the first batch of Technicall 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 Licen-sor has delivered the last batch of the Technical Documen-tation / Software as stipulated in Annex _______ to the Con-tract 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 Li-censee 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 confirm-ing that the Licensor has delivered to the Licensee all Technical Documentations as stipulated in Annex ______

4.3.4 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 ac - gainst presentation of the following documents provided they are in conformity with the stipulations of the Con- tract:

A.Four copies of the commercial invoive.

B.Two coies of the sight draft to be drawn on the Li- censee to the Bank of China , Beijing.

C.Two copies of the Acceptance Certificate for the Con - tract Products Signed by the both Parties.

4.4 The Licensee shall have the right to deduct from the perfor - mance Bond or relevant payment under megotiation the penalties in form of liquidate damages which Licensor shall bay 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 inter- est charges in case they occur in the negotiation of the bay - ment, unless these interest charges have been occurred by reasons of default by the Licensee.

ARTICLE 5 DELIVERY OF THE TECHNICAL DOCUMEN-TATION AND SOFTWARE