License Contract of the Transfer of Technology

7.4 If the responsibility for the failure of the first acceptance test lies with the Licensor, the Licensor shall, at his own expens-es, take measures to eliminate the defects, again send his technical personnel to participate in the second acceptance test and shall bear all the expenses incurred in the second ac-ceptance test including the expenses for the materials used in the second acceptance test. If the responsibility for the fail-ure of the first acceptance test lies with the Licensee, the Li-censee shall, at his own expenses, take measures to eliminat-ed the defects and bear all the relevant expenses incurred in the second acceptance test.

7.5 If it is due to the Licensor's responsibility that any technical performance of the Contract Products specified in Annex ______ to the Contract is still not achieved in the second ac-ceptance test, the Licensor shall compensate the Licensee for the direct expensee sustained by the Licensee ,for the accep-tance test, and shall at his own expenses, take measures to eliminate the defects and send his technical personnel to par-ticipate in the third acceptance test including the expenses for the materials used in the third acceptance test. If the re-sponsibility for the failure of the second acceptance test lies with the Licensee, the Licensee shall, at his own expenses, take measures to eliminate the defects and bear the relevant expenses incurred in the third acceptance test.

7.6 If it is due to the Licensor's responsibility that any technical performance of the Contract Products specified in Annex _____ to the Contract is still not achieved in the above - mentioned three acceptance tests, the stipulations in Clause 8.7 shall be applied. If the responsibility for the failure of the above-mentioned three acceptance tests lies with the Licensee, then both parties shall discuss and agree upon fur-ther execution of the Contract.

ARTICLE 8 GUARANTEES AND CLAIMS

8.1 The Licensor shall guarantee that the Technical Documenta-tion and Software supplied by the Licensor to the Licensee in accordance with the Contract shall be of the latest and well-proved Technical Documentation and Softwate which ate actually used by the Licensor and that the improved, modified and developed Technical Documentation and Soft-wate shall be supplied in time by the Licensor to the Li-censee in the course of implementation of the Contract,with-out charge.

8.2 The Licensor shall guarantee that the Technical Documenta-tion and Software supplied by the Licensor to the Licensee in accordance with the Contract shall be complete, correct and legible, and shall be delivered in time in accordance with the stipulations in Annex _______ to the Contract.

8.3 If it is found by the Licensee that the Technical Documenta-tion and Softwate supplied by the Licensor is not in confor-mity with the stipulations in Annex ______ to the Contract and Clause 8.2 to the Contract, the Licensor shall mail the related Technical Documentation to Licensee free of charge within 30 (thirty) days after receiving the Licensee's written notice.

8.4 If the Licensor fails to deliver the Technical Documentation and Software in accordance with the time schedule stipulat-ed in Annex ______ to the Contract and Clause 8.3, the Li-censor shall pay to the Licensee penalties for late delivery of the Technical Documentation and Softwate at the following rates: