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THECONTRACTFORSINO-FOREIGNCOOPERATIVEJOINTVENTUREWholeDoc.Chapter1GeneralProvisionsInaccordancewiththeLawofthePeople'sRepublicofChinaonChinese-ForeignCooperativeJointVenturesandotherrelevantChineselawsandregulations,_______________Companyand_________Company,inaccordancewiththeprincipleofequalityandmutualbenefitandthroughfriendlyconsultations,agreetojointlysetupaCooperativeventurein_______thePeople'sRepublicofChina.Chapter2PartiesoftheCooperativeVentureArticle1Partiestothiscontractareasfollows:_________Company(hereinafterreferredtoasPartyA),registeredwith______inChina,anditslegaladdressisat____________(street)_______(district)_____________(city)_____________China.Legalrepresentative:Name:Position:Nationality:___________Company(hereinafterreferredtoasPartyB),registeredwith_______.Itslegaladdressat___________.Legalrepresentative:Name:Position:Nationality:(Note:Incasetherearemorethantwoinvestors,theywillbecalledPartyC,D...inproperorder).Chapter3EstablishmentoftheCooperativeVentureCompanyArticle2InaccordancewiththeCooperativeVentureLawandotherrelevantChineselawsandregulations,bothpartiesoftheCooperativeventureagreetosetup___________Cooperativeventurelimitedliabilitycompany(hereinafterreferredtoastheCooperativeventurecompany).Article3ThenameoftheCooperativeventurecompanyis______________Limitedlegaladdressofthejointventurecompanyisat__________street________(city)____________province.Article4AllactivitiesoftheCooperativeventurecompanyshallbegovernedbythelaws,decreesandpertinentrulesandregulationsofthePeople'sRepublicofChina.Article5TheorganizationformoftheCooperativeventurecompanyisalimitedliabilitycompany.Theprofits,risksandlossesoftheCooperativeventurecompanyshallbesharedbythepartiesaccordingtotherelevantprovisionsthereafter.Chapter4ThePurpose,ScopeandScaleofProductionandBusinessArticle6ThegoalsofthepartiestotheCooperativeventurearetoenhanceeconomiccooperationtechnicalexchanges,toimprovetheproductquality,developnewproducts,andgainacompetitivepositionintheworldmarketinqualityandpricebyadoptingadvancedandappropriatetechnologyandscientificmanagementmethods,soastoraiseeconomicresultsandensuresatisfactoryeconomicbenefitsforeachCooperator.(Note:Thisarticleshallbewrittenaccordingtothespecificsituationsinthecontract).Article7TheproductiveandbusinessscopeoftheCooperativeventurecompanyistoproduce________products;providemaintenanceserviceafterthesaleoftheproducts;studyanddevelopnewproducts.(Note:Itshallbewritteninthecontractaccordingtothespecificconditions).Article8TheproductionscaleoftheCooperativeventurecompanyisasfollows:1.TheproductioncapacityaftertheCooperativeventureisputintooperationis_________.Theproductionscalemaybeincreasedupto_____________withthedevelopmentoftheproductionandoperation.Theproductvarietiesmaybedevelopedinto____________.(Note:Itshallbewrittenaccordingtothespecificsituation).Chapter5TotalAmountofInvestmentandtheRegisteredCapitalArticle9ThetotalamountofinvestmentoftheCooperativeventurecompanyisRMB____________(oraforeigncurrencyagreeduponbybothparties).Article10TheregisteredcapitalofthejointventurecompanyisRMB__________.(ExclusiveoftherighttotheuseofthesiteortherighttotheexploitationofthenaturalresourcesandpremisescontributedbyPartyA.)Article11PartyAandPartyBwillcontributethefollowingtothecooperativeventure:PartyA:premises__________m2therighttotheuseofthesite_________m2PartyB:cash______________Yuanmachinesandequipment____________Yuanindustrialproperty__________Yuanothers_____________Yuan,___________Yuaninall.(Note:Whencontributingindustrialpropertyasinvestment,PartyAandPartyBshallconcludeaseparatecontracttobeapartofthismaincontract).Article12TherighttotheuseofsitecontributedbyPartyAshallbefortheuseofthecooperativeventurecompanywithin_______________daysaftertheapprovalofthecontract.ThecashcontributedbyPartyBshallbepaidin_______________installment.Eachinstallmentshallbeasfollows:(Note:itshallbewrittenaccordingtotheconcreteconditions).Article13ThemachinesandequipmentcontributedbyPartyBasinvestmentshallmeettheneedsofthecooperativeventurecompany,andshallbecarriedtotheChineseport_________daysbeforethecompletionofthepremisesconstruction.Chapter6ResponsibilitiesofEachPartytotheJointVentureArticle14PartyAandPartyBshallberespectivelyresponsibleforthefollowingmatters:ResponsibilitiesofPartyA:Handlingofapplicationsforapproval,registration,businesslicenseandothermattersconcerningtheestablishmentofthecooperativeventurecompanyfromrelevantdepartmentsinchargeofChina;Processingtheapplicationfortherighttotheuseofasitetotheauthorityinchargeoftheland;Organizingthedesignandconstructionofthepremisesandotherengineeringfacilitiesofthecooperativeventurecompany;AssistingPartyBtoprocessimportcustomsdeclarationforthemachineryandequipmentcontributedbyPartyBasinvestmentandarrangingthetransportationwithintheChineseterritory;Assistingthecooperativeventurecompanyinpurchasingorleasingequipment,materials,rawmaterials,articlesforofficeuse,meansoftransportationandcommunicationfacilitiesetc.;Assistingthecooperativeventurecompanyincontactingandsettlingthefundamentalfacilitiessuchaswater,electricity,transportationetc.;AssistingthecooperativeventureinrecruitingChinesemanagementpersonnel,technicalpersonnel,workersandotherpersonnelneeded;Assistingforeignworkersandstaffinapplyingforentryvisas,worklicensesandhandlingtheirtravelprocedures;Responsibleforhandlingothermattersentrustedbythecooperativeventurecompany.ResponsibilitiesofPartyB:Providingcash,machineryandequipment,industrialproperty...inaccordancewiththeprovisionsofArticle11andArticle12,13,andresponsibleforshippingcapitalgoodssuchasmachineryandequipmentetc.contributedasinvestmenttoaChineseport;Handlingthemattersentrustedbythecooperativeventurecompany,suchasselectingandpurchasingmachineryandequipmentoutsideChina,etc.;Providingnecessarytechnicalpersonnelforinstalling,testingandtrialproductionoftheequipmentaswellasthetechnicalpersonnelforproductionandinspecting;Trainingthetechnicalpersonnelandworkersofthecooperativeventurecompany;IncasePartyBisthelicensor,itshallberesponsibleforthestableproductionofqualifiedproductsofthecooperativeventurecompanyinthelightofdesigncapacitywithinthespecifiedperiod;Responsibleforothermattersentrustedbythejointventurecompany.(note:Itshallbewrittenaccordingtothespecificsituation).Chapter7DistributionofProfitsandRepaymentforPartyB'sInvestmentArticle15Thecooperativeventurecompanyshalldistributeitsprofitsinaccordancewiththefollowingprocedureafterpayingtheincometax:____________%asallocationsforreservefunds,expansionfunds,welfarefundsandbonusesforstaffandworkersofthecooperativeventurecompany;____________%asrepaymentforPartyB'sInvestmentand___________YearsscheduledtopaybackallPartyB'sInvestment;____________%oftheleftdistributedtoPartyAand___________%toPartyB.Chapter8SellingofProductsArticle16TheproductsofcooperativeventurecompanywillbesoldbothontheChineseandtheoverseasmarket,theexportportionaccountsfor____________%,____________%forthedomesticmarket.(Note:Anannualpercentageandamountforoutsideanddomesticsellingwillbewrittenoutaccordingtopracticaloperations,innormalconditions,theamountforexportshallatleastmeettheneedsofforeignexchangeexpensesofthejointventurecompany).Article17Productsmaybesoldonoverseasmarketsthroughthefollowingchannels:Thecooperativeventurecompanymaydirectlysellitsproductsontheinternationalmarket,accountingfor_________%.ThecooperativeventurecompanymaysignsalescontractswithChineseforeigntradecompanies,entrustingthemtobethesalesagenciesorexclusivesalesagencies,accountingfor__________%.ThecooperativeventurecompanymayentrustPartyBtosellitsproducts,accountingfor________%.Article18Thecooperativeventure'sproductstobesoldinChinamaybehandledbytheChinesematerialsandcommercialdepartmentsbymeansofagencyorexclusivesales,ormaybesoldbythecooperativeventurecompanydirectly.Article19InordertoprovidemaintenanceservicetotheproductssoldbothinChinaorabroad,thecooperativeventurecompanymaysetupsalesbranchesformaintenanceservicebothinChinaorabroadsubjecttotheapprovaloftherelevantChinesedepartment.Chapter9TheBoardofDirectorsArticle20Thedateofregistrationofthecooperativeventurecompanyshallbethedateoftheestablishmentoftheboardofdirectorsofthecooperativeventurecompany.Article21Theboardofdirectorsiscomposedof____________directors,ofwhich___________shallbeappointedbyPartyA,____________byPartyB.ThechairmanoftheboardshallbeappointedbyPartyA,anditsvice-chairmanbyPartyB.Thetermofofficeforthedirectors,chairmanandvice-chairmansfouryears,theirtermofofficemayberenewedifcontinuouslyappointedbytherelevantparty.Article22Thehighestauthorityofthecooperativeventurecompanyshallbeitsboardofdirectors.Itshalldecideallmajorissuesconcerningthecooperativeventurecompany.Unanimousapprovalshallberequiredforanydecisionsconcerningmajorissues.Asforothermatters,approvalbymajorityorasimplemajorityshallberequired.(Note:Itshallbeexplicitlysetoutinthecontract).Article23Thechairmanoftheboardisthelegalrepresentativeofthecooperativeventurecompany.Shouldthechairmanbeunabletoexercisehisresponsibilitiesforanyreason,heshallauthorizethevice-chairmanoranyotherdirectorstorepresentthejointventurecompanytemporarily.Article24Theboardofdirectorsshallconveneatleastonemeetingeveryyear.Themeetingshallbecalledandpresidedoverbythechairmanoftheboard.Thechairmanmayconveneaninterimmeetingbasedonaproposalmadebymorethanonethirdofthetotalnumberofdirectors.Minutesofthemeetingsshallbeplacedonfile.Article25Themeetingshallbevalidonlywhenmorethantwothirdsofthetotalnumberofdirectorsattend.Incaseofabsence,thedirectorshallentrustanotherpersontoattendandvoteforhimwithatrustdeed.Chapter10BusinessManagementOfficeArticle26Thecooperativeventurecompanyshallestablishamanagementofficewhichshallberesponsibleforitsdailymanagement.Themanagementofficeshallhaveageneralmanager,appointedbyParty_____,______deputygeneralmanagers,_____byParty_____;_____byParty______.Thegeneralmanageranddeputygeneralmanagerswhosetermsofofficeis_____yearsshallbeappointedbytheboardofdirectors.Article27Theresponsibilityofthegeneralmanageristocarryoutthedecisionsoftheboardandorganizeandconductthedailymanagementofthecooperativeventurecompany.Thedeputygeneralmanagersshallassistthegeneralmanagerinhiswork.Article28Thegeneralmanagershallreporttotheboardofdirectorstheoperationconditionsofthecooperativecompanyeverythreemonths,andmakeafinancialreporteverysixmonths.Article29Incaseofgraftorseriousderelictionofdutyonthepartofthegeneralmanageranddeputygeneralmanagers,theboardofdirectorsshallhavethepowertodismissthematanytime.Chapter11LaborManagementArticle30Laborcontractcoveringtherecruitment,employment,dismissalandresignation,wages,laborinsurance,welfare,rewards,penaltiesandothermattersconcerningthestaffandworkersofthecooperativeventurecompanyshallbedrawnupbetweenthecooperativeventurecompanyandthetradeunionofthecooperativeventurecompanyasawhole,ortheindividualemployeesinthecooperativeventurecompanyasawholeorindividualemployeesinaccordancewiththelawofthePeople'sRepublicofChinaonChinese-ForeignCooperativeJointVentures.Thelaborcontractsshall,afterbeingsigned,befiledwiththelocallabormanagementdepartment.Article31Theappointmentofhigh-rankingadministrativepersonnelrecommendedbybothparties,theirsalaries,socialinsurance,welfareandthestandardoftravellingexpensesetc.shallbedecidedbythemeetingoftheboardofdirectors.Chapter12Taxes,FinanceandAuditArticle32ThecooperativeventurecompanyshallpaytaxesinaccordancewiththeprovisionsofChineselawsandotherrelativeregulations.Article33StaffmembersandworkersofthecooperativeventurecompanyshallpayindividualincometaxaccordingtotheIndividualIncomeTaxLawofthePeople'sRepublicofChina.Article34ThefiscalyearofthejointventurecompanyshallbefromJanuary1toDecember31.Allvouchers,receipts,statisticstatementsandreportsshallbewritteninChinese.(Note:Aforeignlanguagecanbeusedconcurrentlywithmutualconsent).Article35FinancialcheckingandexaminationofthecooperativeventurecompanyshallbeconductedbyanauditorregisteredinChinaandreportsshallbesubmittedtotheboardofdirectorsandthegeneralmanager.IncasePartyBconsidersitnecessarytoemployaforeignauditorregisteredinanothercountrytoundertakeannualfinancialcheckingandexamination,PartyAshallgiveitsconsent.AlltheexpensesthereofshallbebornebyPartyB.Article36Inthefirstthreemonthsofeachfiscalyear,themanagershallpreparethepreviousyear'sbalancesheet,profitandlossstatementandproposalregardingthedisposalofprofits,andsubmitthemtotheboardofdirectorsforexaminationandapproval.Chapter13DurationoftheCooperativeVentureArticle37Thedurationofthecooperativeventurecompanyis______years.Theestablishmentdateofthejointventurecompanyshallbethedateonwhichthebusinesslicenseofthecooperativeventurecompanyisissued.Anapplicationfortheextensionoftheduration,proposedbyonepartyandunanimouslyapprovedbytheboardofdirectors,shallbesubmittedtotheMinistryofForeignTradeandEconomicCooperation(ortheexaminationandapprovalauthorityentrustedbyit)sixmonthspriortotheexpirydateofthejointventure.Chapter14TheDisposalofAssetsaftertheExpirationoftheDurationArticle38Upontheexpirationoftheduration,theassetsshallbelongtoPartyA.Chapter15InsuranceArticle39InsurancepoliciesofthejointventurecompanyonvariouskindsofrisksshallbeunderwrittenwiththePeople'sRepublicofChina.Types,valueanddurationofinsuranceshallbedecidedbytheboardofdirectorsinaccordancewiththeprovisionsofthePeople'sInsuranceCompanyofChina.Chapter16TheAmendment,AlterationandTerminationoftheCon-tractArticle40TheamendmentofthecontractorotherappendicesshallcomeintoforceonlyafterawrittenagreementhasbeensignedbyPartyAandPartyBandapprovedbytheoriginalexaminationandapprovalauthority.Article41Incaseofinabilitytofulfilthecontractortocontinueoperationduetoheavylossesinsuccessiveyearsasaresultofforcemajeure,thedurationofthecooperativeventureandthecontractshallbeterminatedbeforethetimeofexpirationafterbeingunanimouslyagreeduponbytheboardofdirectorsandapprovedbytheoriginalexaminationandapprovalauthority.Chapter17LiabilityforBreachofContractArticle42Shouldthecooperativeventurecompanybeunabletocontinueitsoperationorachieveitsbusinesspurposeduetothefactthatoneofthecontractingpartiesfailstofulfiltheobligationsprescribedbythecontractandarticlesofassociation,orseriouslyviolatestheprovisionsofthecontractandarticlesofassociation,thatpartyshallbedeemedtohaveunilaterallyterminatedthecontract.Theotherpartyshallhavetherighttoterminatethecontractinaccordancewiththeprovisionsofthecontractafterapprovalbytheoriginalexaminationandapprovalauthority,andtoclaimdamages.IncasePartyAandPartyBofthecooperativeventurecompanyagreetocontinuetheoperation,thepartywhofailstofulfilitsobligationsshallbeliablefortheeconomiclossescausedtherebytothejointventurecompany.Article43ShouldeitherPartyAorPartyBfailtoprovideonschedulethecontributionsinaccordancewiththeprovisionsdefinedinChapter5ofthiscontract,thepartyinbreachshallpaytotheotherparty________Yuan,or__________%ofthecontributionstartingfromthefirstmonthafterexceedingthetimelimit.Shouldthepartyinbreachfailtoprovideafter______months,_________Yuan,or_________%ofthecontributionshallbepaidtotheotherparty,whoshallhavetherighttoterminatethecontractandtoclaimdamagesfromthepartyinbreachinaccordancewiththeprovisionsofArticle42ofthecontract.Article44Shouldallorpartofthecontractanditsappendicesbeunabletobefulfilledowingtothefaultofoneparty,thepartyinbreachshallbeartheliabilitytherefor.Shoulditbethefaultofbothparties,theyshallbeartheirrespectiveliabilitiesaccordingtotheactualsituation.Article45Inordertoguaranteetheperformanceofthecontractanditsappendices,bothPartyAandPartyBshallprovideeachotherwithbankguaranteesforperformanceofthecontractwithin__________daysafterthecontractcomesintoforce.Chapter18ForceMajeureArticle46Shouldeitherofthepartiestothecontractbepreventedfromexecutingthecontractbyforcemajeure,suchasearthquake,typhoon,flood,fire,warorotherunforeseenevents,andtheiroccurrenceandconsequencesareunpreventableandunavoidable,thepreventedpartyshallnotifytheotherpartybytelegramwithoutanydelay,andwithin15daysthereafterprovidedetailedinformationoftheeventsandavaliddocumentforevidenceissuedbytherelevantpublicnotaryorganizationexplainingthereasonofitsinabilitytoexecuteordelaytheexecutionofallorpartofthecontract.Bothpartiesshall,throughconsultations,decidewhethertoterminatethecontractortoexemptpartoftheobligationsforimplementationofthecontractorwhethertodelaytheexecutionofthecontractaccordingtotheeffectsoftheeventsontheperformanc