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Patent to Party A. of accusation of infringing the rights of a third party occurs,
Party B shall be responsible for the matter and fully the legal and
economicresponsibilities trising therefrom
11.2 A complete list of Party B’s patents and patent applications relevant to
Contrarct Product are specified in Appendixl to the Contract. Within one month after the
Contract has comeinto force Party B shall despatch to Party A two photostat copies of
the letters patentsand patent application(s).
Article l2 Taxes and Duties
12.1 AIl taxes, customs duties and other excises arising in connection with the
perfor-mance of the Contract outside the territory of Party A’s country shall be borne
by PartyB.
12.2 In the execution of the Contract, any income made by Party B within the
territory of China shall be subject to taxation according to the tax laws of the People`s
Republic of China.
Article l3 Force Majeure
13.1 If either of the contracting parties is prevented from executing the Contract
by Forcer Majeure events such as war, serious flood, fire, typhoon and earthquake,
or other events agreed upon between both parties, the term for the execution of the
Contract may be extenede by a period equal to that affected by the event(s).
13.2 The involred party shall notify the other party by telex or cable within the
shortest possible time of the occurrence of the Force Majeure event and within l4 days
thereaftersend by registered airmail to the other party a certificate issued by the
relevant competent authori- ties for confirmation by theother Party.
13.3 should the Force Majeure event last more than one hundred and twenty(120)con-
secutive days,both, parties shall settle the question of further exccution of the
Contract through friendly negotiations as soonas possible.
Article l4 Arbitration
14.1 All disputes arisint from the execution of or in connection with the Cotract
shallbesettled through fricndly consultations between both parties. In case no settlement
can be reached through consultations, then the disputes shall be submitted to
arbitration.
14.2 The arbitration shall take place in Stockholm, Sweden, and be conducted by
thearbitration tribunal of theStockholm Chamber of Commerce in accordance with the
statutes of the said tribunal.
14.3 The arbitration award shall be final and binding upon both parties.
l4.4 The arbitiation fee shall be borne by the losing party.
l4.5 If the arbitration involves only a part of the Contract, then in the course of
arbitra-tion, the execution of the contract shall be continued except the part which is
under arbit ra-tion.
Article 15 Applicable law
This Contract shall be governed by the laws if the People’s Republic of China as tothe
interpretation and performance of the Contract.
Articl l6 Duration
16.1 The Contrant os signed on May 8, 1993, by authorized represenatives of botb
par-ties.
after the Contract has been signed, the two parties shall apply to their resPective
the managing onstructure of the parties or government authorities for apPrval. The date
of ap-proval last obtained shall be taken as the date of effectiveness of the Contract.
Both partfies shallexert their best efforts to obtain the approval within sixty (60)
says and inform the oth-er party by telex and thereafter confirm the same by letter. If
the COntract can not come into affect within six (6) months after the date of signing,
both parties are entitlid to consider themselves absolved from the Contract.
16.2 Tbe Contract shall be valid for ten (10) years beginning from the date of its
be-comingeffective, and shall become null and void automatically upon the expiry of the
validity period of the Contract.
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