JOINT VENTURE CONTRACT OF MANUFACTURER OF PRODUCTS

 

This contract is made on the date of        between Shanghai Building Materials Import & Export Corporation organized under the laws of the People’s Republic of China, having its principle office at Shanghai, the People’s Republic of China (hereinafter called Party A) of the First Part. And The Global Construction Supplies Company organized under the laws of the USA, having its principle office at … Ohio, USA, (hereinafter called Party B) of the Second Part.

按照中华人民共和国法律组成的上海建筑材料进出口公司，其总公司在中华民共和国，上海市,为第一方（以下简称甲方）与 受制于美国法律的环球建筑物资供应公司，其总公司在美国，俄亥俄州，为第二方（以下简称乙方）于      订立本合同。

 

Recitals 序言

WHEREAS Party A desires to use Party B    `s technology and trademark to manufacture and sell Road Marks in China and overseas markets;

WHEREAS Party B desires to co-operate with Party A to manufacture and sell Road Marks in China and overseas markets, and

WHEREAS both parties consider these objectives can best be achieved by the formation of a joint venture company under the relevant laws, rules, and regulations of the People’s Republic of China;

NOW THEREFOF, in consideration of the premises and the covenants described hereinafter, Party A and Party B agree as follows:

鉴于甲方愿意用乙方的技术和商标制造道路反光镜，并在中国和海外市场进行销售。

鉴于乙方愿意与甲方合作制造道路反光镜，并在中国和海外市场进行销售。

鉴于双方认为按照中华人民共和国有关法律、法规和规定组建合资经营公司可以很好完成该项目标。

为此，考虑到上述事实和以下描述的契约，兹甲乙双方同意如下：

 

Article 1 ESTABLISHMENT OF THE JOINT VENTURE COMPANY

第一条    建立合资经营公司

1.1   In accordance with the Law of the People’s Republic of China on Joint Venture Using Chinese and Foreign Investment and other relevant Chinese laws and regulations, both parties agree to set up a joint venture limited liability company (hereinafter called the joint venture company ).

.根据《中华人民共和国中外合资经营企业法》和中国其他有关法规，双方同意建立合资经营有限责任公司（以下简称合营公司）。

 

1.2   The Chinese name of the joint venture company, as agreed upon, is Highway construction materials supply company.

双方同意该合营公司的中文名称为高速公路建筑材料供应公司。

 

1.3   The English name of the joint venture company, as agreed upon, is Superhighway Construction Supplies Company (abbreviated as SCSC ).

双方同意该合营公司的英文名称为Superhighway Construction Supplies Company(缩略为SCSC)。

 

1.4   The principle of SCSC and its registered address is … Shanghai, the People’s Republic of China.

SCSC的总办事处以及登记的地址为中华人民共和国，上海市。

 

1.5   The organization of the joint venture company is a limited liability company. Each party to the joint venture company is liable to the joint venture company within the limit of the capital subscribed by it. The profits, risks and losses of the joint venture company shall be shared by the parties in proportion to their contributions of the registered capital.

合营公司的组织形式是有限责任公司。合营公司的每一方都要以各自认缴的出资额对合营公司的债务承担责任。合营各方按其出资额在注册资本中的比例分销合营公司的利润、风险和亏损。

 

1.6   The expenses of incorporation shall be shared equally between Party A and Party B.

.组建公司所需的费用应由甲乙双方平均承担。

 

1.7   All activities of the joint venture company shall be governed by the laws, decrees and pertinent rules and regulations of the People’s Republic of China.

合营公司的一切活动必须遵守中华人民共和国的法律和有关条例规定。

 

Article 2 PURPOSE, SCOPE AND SCALE OF PRODUCTION AND BUSINESS

第二条    生产经营目的、范围和规模

2.1  The purpose of the parties to the joint venture is in conformity with the wish of enhancing the economic cooperation and technology exchanges, improving the product quality, developing new products, and gaining competitive position in the world market in quality and price by adopting advanced and appropriate technology and scientific management so as to raise economic results and ensure satisfactory economic benefits.

甲乙双方合资经营的目的是本着加强经济合作和技术交流的愿望，采用先进而适用的技术和科学经营管理方法，提高产品质量，发展新产品，并在质量、价格等方面具有国际市场上的竞争能力，提高经济效益，并获得满意的经济利益。

 

2.2  The productive and business scope of the joint venture company is to manufacture Road Marks, provide instructions and directions for construction, collect quality data from practical use for research and improvement.

合营公司的生产经营范围是制造道路反光镜，并为建筑提供指导和方法;从实际使用中收集关质量的详细资料，以便进行研究、改进。

 

2.3  The production capacity in the first 12 months after the joint venture company put into operation is     

In the second 12 months when the component parts are produced by the joint venture company itself, the production capacity is     With the development of production and successful operation, the variety of product may be increased to      kinds.

合营公司开始生产后首期12个月的生产力为     。当合营公司自己生产零部件时，第二期12个月的生产力为     。随着生产和经营有成效地发展，产品品种可能会增加到     种。

 

Article 3 REGISTERED CAPITAL第三条   注册资本

3.1The registered capital of the joint venture company is Renminbi     Yuan (equivalent to US $ 10,000,000.-), which will be contributed by Party A and Party B equally.

合营公司的注册资本为人民币    元（相等于1，000万美元）。有甲乙双方平均出资。

 

Party A`s contribution甲方投资

Cash现金

Land-use right土地使用权

Premises (to be evaluated by joint group) 厂房（由合营双方联合组织进行评估）

Machines and equipment机器、设备

Others其他

Total (accounting for 50% of the registered capital) 总计（占注册资本50%）

 

Party B’s contribution乙方投资

Cash (to be converted from US dollars according to the exchange rate in effect on the data this Contract becomes effective)

现金（按本合同生效日的外汇汇率将美元折合人民币）

 

Technology (including technical data, know-how and trademark, to be evaluated by joint group)

技术（包括技术数据技术诀窍和商标，由合营双方联合组织进行评估）

 

Component parts supplied供应零部件

in the first 12 months首期12个月

Total (accounting for 50% of the registered capital) 总计（占注册资本50%）。

 

3.2   The total investment shall be fully made within 12 calendar months    commencing from the date on which the business license is issued to and obtained by the joint venture company. To

 facilitate construction of the factory premises, an initial investment is to be made in cash by  Party A and Party B each amounting to Renminbi …Yuan, which shall be paid within one month  after the incorporation of the joint venture company (i.e. after the business license is issued and obtained). The balance of the investment including the evaluation of property and the right to the use of land, etc. shall be fulfilled within the aforementioned 12 calendar months.

总出资额应于合营公司领得签发的执照之日起的12个月内全部投入。为了便于建造厂房，甲乙双方要先出资现金……元，该笔款子应在组成合营公司之日起（即领得签发的营业执照后）的一个月内缴齐，出资余额包括财产和土地使用权的评估应在上述12个月内履行完毕。

 

3.3   In case any party to the joint venture intends to assign all or part of its investment subscribed to a third party, consent shall be obtained from the other party to the joint venture, and approval from the examination and approval authorities is required. When one party to the joint venture assigns all or part of its investment, the other party shall have the preemptive right to purchase.

3.3. 甲乙任何一方如向第三方转让其全部或部分出资额，须经另一方同意，并报审批机构批准。一方转让其全部或部分出资额，另一方有优先购买权。

 

Article 4 BOARD OF DIRECTORS第四条   董事会

4.1   The date of registration of the joint venture company shall be the date of the establishment of

the board of directors of the joint venture company.

合营公司注册登记之日应为合营公司董事会成立之日。

 

4.2   The board of directors is composed of six directors, of which three shall be appointed by Party A, three by party B. The chairman of the board shall be appointed by Party A, and its vice chairman by Party B. The term of office for the directors, chairman and vice chairman is four years. Their terms of office may be renewed if continuously appointed by the relevant party.

董事会由6名董事组成，其中甲方委派3名，乙方委派3名。董事长由甲方委派，副董事长由乙方委派。董事和董事长任期4年，经委派方继续委派可以连任。

 

4.3   The highest authority of the joint venture company shall be its board of directors. It shall decide all major issues concerning the joint venture company. Unanimous approval shall be required before any decisions are made on major issues. As for other matters, approval by majority or a simple majority shall be required.

董事会是合营公司的最高权力机构，决定合营公司的一切重大事宜。对于重大问题，应一致通过，方可作出决定。对其他事宜，可采取多数通过或简单多数通过决定。

 

4.4   The chairman of the board is the legal representative of the joint venture company. Should the chairman be unable to exercise his responsibilities for some reasons, he shall authorize the vice chairman or any other directors to represent the joint venture company temporarily.

董事长是合营公司的法定代表。董事长因故不能履行其职责时，可临时授权副董事长或其他董事为代表。

 

4.5   The board of directors shall convene at least one meeting every year. The meeting shall be called and presided over by the chairman of the board. The chairman may convene an interim meeting based on a proposal made by one third of the total members of directors. Minutes of meeting shall be placed on file.

董事会会议每年至少召开一次，由董事长召集并主持会议。经三分之一以上董事提议，董事长可以召开董事会临时会议。会议记录应存档。

 

Article 5 BUSINESS MANAGEMENT OFFICE第五条   经营管理机构

5.1 The joint venture company shall establish a management office which shall be responsible for its daily management. It shall have a general manager, appointed by Party A, and a deputy general manager, appointed by Party B. Their terms of office are four years.

合营公司应设立一个经理管理机构，负责公司日常经营管理工作。经营管理机构设总经理1人，由甲方委派，副总经理1人，由乙方委派，他们的任期为4年。

 

5.2 The responsibility of the general manager is to carry out the decisions of the board of directors and organize and conduct the routine work of the joint venture company. The deputy general manager shall assist the general manager in his work.

总经理的职责是执行董事会会议的各项决议，组织领导合营公司的日常经营管理工作。副总经理协助总经理工作。

 

5.3 In case of graft or serious dereliction of duty on the part of the general manager and/or the deputy general manager, the board of directors shall have the power to dismiss them at any time.

总经理、副总经理有营私舞弊或严重失职的，董事会有权可随时予以免职。

 

Article 6 RESPONSIBILITIES OF PARTIES第六条   合营各方的责任

Responsibilities of Party A甲方责任：

6.1  to apply for and obtain the business license, to make tax registration and obtain all possible tax reductions and exemptions according to the laws of the People’s Republic of China;

按照中华人民共和国法律申请、领取营业执照，办理税务登记，并取得一切可能得到的江水、免税。

 

6.2 to organize construction of the factory premises, to install machinery & equipment, to settle the fundamental facilities, such as water, electricity, communication and transportation etc. ;

组织建造厂房、安装机器设备、落实水、点、交通通讯等主要基础设施。

 

6.3 to obtain necessary entry visas for foreign staff and workers and provide convenience for their traveling on business in China;

为外国员工申领所需的入境签证，并为他们因公在中国旅行提供方便。

 

6.4 to recruit Chinese staff, engineers, technicians, workers and translators;

招聘中国职员、工程师、技术员、工人以及翻译员。

 

6.5 to apply to the Bank of China or any other banks approved by the State Administration of Exchange Control for the opening of foreign currency and Renminbi accounts;

向中国银行或经国家外汇管理机构批准的其他银行开立外币和人民币账户

 

Responsibilities of Party B 乙方责任

6.6 to expedite shipment of machinery, equipment and component parts; to provide technology and send technical personal for installing, testing and inspecting;

尽速装运机器设备和零部件，提供技术，并为安装、检验和调试派遣技术人员。

 

6.7 to train Chinese technical personnel and workers at Party B’s plants and/or other locations agreeable to both parties according to the training programs duly agreed upon;

按照双方同意的培训计划，要在乙方厂内或在双方同意的其他地方培训中国技术人员和工人。

 

6.8 to solve problems concerning technology, operation and management, which may arise in the course of production;

解决有关技术、操作和管理方面在生产过程中可能发生的各种问题。

 

6.9 to collect appropriate scientific and technical information as well as economic and legal information that may be of use to the normal operation of the joint venture company.

收集有用的科技资料以及对合营公司正常经营有用的经济和法律方面的信息。

 

Article 7 PURCHASE OF NEEDFUL MATERIALS第七条 购买所需材料

7.1 In purchase of required raw materials, fuel, parts, means of transportation and articles for office use, the joint venture company shall give first priority to purchase in China where conditions are the same.

合营公司所需的材料、燃料、零部件、运输工具和办公用品等，在条件相同情况下，应尽先在中国购买。

 

7.2 In case the joint venture company entrusts Party B to make purchases on overseas markets, persons appointed by Party A shall be invited to take part in the purchasing.

合营公司委托乙方在国外市场选购时，应邀请甲方人员参加。

 

Article 8 SALE OF PRODUCTS第八条 产品的销售

8.1 The product of the joint venture company shall be sold both on Chinese market and on oversea market. The export part accounts for 50%, whereas the other 50% is for domestic market. Party B shall be responsible for the sale of the products abroad.

合营公司的产品应在中国境内外市场销售。出口部分占50%，另外50%为内销。乙方应负责在国外销售该产品。

 

8.2 The joint venture company may directly sell its products on the international market. It may also sign sales contracts with Chinese or foreign trade companies, entrusting them to be its sales agents.

合营公司国际市场上直接销售其产品，也可以同中国或外国贸易公司签订合同。委托他们作为代理。

 

8.3 The joint venture company may set up sales branches both in China and abroad subject to the approval of the relevant Chinese Department. The function of the sales branches, besides sales, is to collect user’s comments on product quality and give instructions for the correct use of the products.

合营公司可以在中国和外国设立销售机构，但须经中国相关部门批准。销售机构的作用，除了销售以外，还要收集用户对产品质量的意见，并对正确使用产品给予指导。

 

Article 9 LABOUR MANAGEMENT第九条 劳动管理

9.1 Labor contract covering employment, dismissal and resignation of the staff and workers of the joint venture company, and their production tasks, wages, awards and punishment, holidays and paid leaves of absence, labor insurance and welfare benefits, labor protection, labor discipline and other matters shall be signed between the joint venture company and the Trade Union of the company as a whole, or between the company and its staff and workers on an individual basis in accordance with the “Regulations of the People`s Republic of China on Labor Management in Chinese-Foreign Joint Ventures”.

合营公司职工的招聘、辞退、生产任务、工资、奖惩、假日和休假工资、劳动保险、生活福利、劳动保护、劳动纪律以及其他事项应按《中华人民共和国中外合资经营企业劳动管理规定》由合营公司与该公司的工会组织集体地或与公司职工个别地订立劳动合同。

 

9.2 The labor contract duly signed shall be filled with the local labor management authorities.

劳动合同订立后、应报当地劳动管理部门备案。

 

9.3 The appointment of high-ranking administrative personnel recommended by both parties, their salaries, social insurance, welfare and the standard of traveling expenses, etc. shall be decided by the board of directors.

甲方、乙方推荐的高级管理人员的聘请和工资待遇、社会保险、福利、差旅费标准等，应由董事会决定。

 

Article 10 TAXES, FINANCE AND AUDIT第十条 税务、财务、审计

10.1 The joint venture company shall pay taxes in accordance with the stipulations of Chinese laws and other relevant regulations.

合营公司应按照中国有关法律和条例规定缴纳各项税款。

 

10.2 Staff and workers of the joint venture company shall pay individual income tax according to the “Individual Income Tax Law of the People’s Republic of China.”

合营公司的职工应按照《中华人民共和国个人所得税法》缴纳个人所得税。

 

10.3 The joint venture company shall establish its accounting system in accordance with the relevant regulations for financial accounting in China.

合营公司应按照中国对财务会计有关规定建立会计制度

 

10.4 The fiscal year of the joint venture company shall be from January 1 to December 31. All vouches, receipts, statistics statements and reports, account books shall be written in Chinese. English may be used concurrently with mutual consent.

合营公司的会计年度应从每年1月1日起至12月31日止。一切记账凭证、单据、统计报表、账簿应用中文书写。如双方同意也可以同时用英文书写。

 

10.5 Financial checking and examination of the joint venture company shall be conducted by an auditor registered in China. Reports shall be submitted to the board of directors and the general manager.

合营公司的财务稽核、审查事宜应聘请在中国注册的审计师办理，并将结果报告董事会和总经理。

 

10.6 The manager of the joint venture company shall , within 30 days after the end of its fiscal year, prepare an annual financial statement to be submitted to the board of directors for examination and approval. The financial statement shall include a balance sheet, profit and loss statement audited and certified as true and correct by an auditor registered in China.

合营公司的经理应在会计年度结束后30天内编制一份年度财务报告，包括经在中国注册审计师审查证明确实无误的资产负债表、损益计算书，送呈董事会审批。

 

Article 11  DURATION OF THE JOINT VENTURE第十一条 合资经营期限

The duration of the joint venture company is TEN years commencing from the date on which the business license of the joint venture company is issued. It may be extended for FIVE years upon mutual consent. The application for the extension of the duration shall be submitted to the examination and approval authority SIX months prior to the expiry date of the joint venture company.

合营公司自其营业执照签发日起它的持续期为10年。若双方同意可延长5年。延长期的申请应在合营公司满期前6个月送呈审批机构。

 

Article 12 TERMINATION AND LIQUIDATION第十二条 停业和清理

12.1 In case of inability to fulfill the contract or to continue operation due to heavy losses in successive years as a result of force majeure, the duration of the joint venture contract shall be terminated before its expiration after unanimously agreed upon by the board of directors and approved by the original examination and approval authority.

由于不可抗力事故造成连续多年重大损失使合营公司无法履行合同或继续营业，经双方一致同意，并由原审批机构批准，合营公司合同的期限前予以终止。

 

12.2 Should the joint venture company be unable to continue its operation or achieve the business purposes stipulated in the contract on account of the fact that one of the contracting parties fails to fulfill its obligation or seriously violates the stipulations of the contract and article of association, the other party shall have the right to terminate the contract. The termination shall be approved by the original examination and approval authority.

由于一方不履行义务，或严重违反合同规定和公司章程，造成合营公司无法继续经营或无法达到合同规定的经营目的，另一方有权终止合同。终止合同应由原审批机构批准。

 

12.3 Liquidation and the distribution of the liquidated assets shall be carried out in accordance with the contract stipulations and the relevant laws and regulations of the People’s Republic of China.

清算及清算后的财产分配应按合同规定和中华人民共和国的有关法律的条例规定办理。

 

Article 13 ASSIGNMENT第十三条 转让

Assignment may be made if it is agreed upon by both parties as stipulated in Art. 3.3. However, it (the assignment) shall neither interrupt the normal operation nor affect the organization structure of the joint venture company during the process of assignment.

正如第三条第三款所规定，若双方同意可以办理转让，但在转让过程中应不干扰正常生产，也不影响合营公司的组织结构。

 

Article 14 INSURANCE第十四条 保险

During the term of this contract the joint venture company shall effect insurance against various risks preferably with the People’s Insurance Company of China, which handles claims promptly and equitably.

在合同有效期内，合营公司最好向中国人民保险公司投保各种险别。该公司处理索赔迅速而又公正。

 

Article 15 FORCE MAJEURE第十五条 不可抗力

Should either party be prevented from executing the contract owing to an event of force majeure, such as earthquake, typhoon, flood, fire, explosion, war, insurrection, epidemic and quarantine restriction, the prevented party shall immediately notify the other party by telex or fax, and within 15 days thereafter provide a certificate issued by the relevant government authorities confirming such force majeure and explaining the reason for its inability to execute or delay the execution of all or part of this contract. Both parties shall therefore, through friendly consultations, decide whether to terminate the contract before its expiration or to delay executing all or part of this contract or exempt part of the contract obligations for implementation according to the effects of the event. If decision is made to continue the contract, the time for execution shall be extended by a period equal to the period of the delay caused by such force majeure.

由于地震、台风、水灾、火灾、战争、暴动、流行病以及为防止流行病进行的隔离等限制使合营公司的某一方不能履行合同，遇有上述不可抗力事故的一方应立即用电传或传真在事发后的15天内通知另一方，并提供有关政府机构签发的证明，确认该不可抗力事故，说明不能履行合同或延期履行全部或部分合同的理由。双方为此因通过友好协商，按照事故对履行合同的影响程度，决定是否在合同期满前终止合同或延期履行全部或部分合同或免除履行部分合同的责任。如果决定继续合同，其履行合同的时间应按不可抗力事故造成延期的相同时间予以延长。

 

Article 16 AMENDMENT AND ALTERATION第十六条 修改和变更

Amendments to and alteration of this contract or its appendices shall become effective only after a written agreement signed by both parties and approved by the original examination and approval authority.

合同及其附件的修改和变更需经双方签署书面协议，并报请原审批机构批准才能生效。

 

Article 17 SETTLEMENT OF DISPUTES第十七条 正义的解决

Any disputes arising from the execution of, or in connection with the contract shall be settled through friendly consultations between the two parties. In case such consultations fail to settle the disputes, then the disputes shall be submitted for arbitration. In China, the arbitration shall be conducted by the Foreign Economic & Trade Arbitration Commission of the China Council for the Promotion of International Trade in accordance with its rules of

procedure, or the arbitration shall take place in a third country agreed upon by both parties in accordance with the rules of procedure of that country.

凡因执行本合同所发生的或与本合同有关的一切争议，双方应通过友好协商解决。如果协商不能解决，应将争议提请仲裁。在中国，仲裁应由中国国际贸易促进委员会对外经济贸易仲裁委员会根据该会的规章和手续办理，或经双方同意在第三国按照该国的规章和手续进行仲裁。

 

Article 18 APPLICABLE LAW第十八条 适用法律

The formation of this contract, its validity, interpretation, execution and settlement of disputes shall be governed by the relevant laws and regulations of the People’s Republic of China.

本合同的订立、效力、解释、履行和争议的解决均受中华人民共和国法律管辖。

 

Article 19 LANGUAGE第十九条 文字

The contract shall be written in Chinese version and in English version. Both versions are equally authentic. In the event of any discrepancy between the two aforementioned versions, the Chinese version shall prevail.

本合同应写成中文本和英文本，两种文本具有同等效力。上述两种文本如有不符，应以中文本为准。

 

IN WITNESS WHEREOF, the parties have executed this contract in quadruplicate by their duly authorized representatives as of the date first above written.

兹证明当事双方的授权代表在前面首先写明的日期履行本合同一式四份。

 

 

Party A:  甲方                                      Party B: 乙方