中外合资经营合同格式

中外合资经营合同格式

THE CONTRACT FOR SINO-FOREIGN EQUITY JOINT VENTURE

                                   Whole Doc.

                          Chapter 1 General Provisions

    In accordance with the Law of the People's Republic of China on   Joint
Ventures Using Chinese and Foreign Investment (the  "Joint  Venture   Law")
and other relevant Chinese laws  and  regulations,  __________Company   and
___________ Company, in accordance with  the  principle  of  equality   and
mutual benefit and through friendly consultations, agree to jointly invest
to set up a joint venture enterprise in ________of the  People's  Republic
of China.

                     Chapter 2 Parties of the Joint Venture

Article 1
     Parties  to  this  contract  are  as   follows:  ___________Company  (
hereinafter referred to as Party A), registered with __________ in  China,
and its legal address is at  ___________  (street)  __________   (district)
___________ (city) ___________China.
    Legal representative:                    Name:
                                            Position:
                                            Nationality:
    __________Company (hereinafter referred to  as  Party   B),  registered
with __________. Its legal address at ___________.
    Legal representative:                    Name:
                                            Position:
                                            Nationality:
    (Note: In case there are more than two investors, they will be   called
Party C,D...in proper order).

 

              Chapter 3 Establishment of the Joint Venture Company

Article 2
    In accordance with the Joint Venture Law and  other  relevant   Chinese
laws and regulations, both parties of the joint venture agree  to  set  up
_____________joint  venture  limited  liability  company   (    hereinafter
referred to as the joint venture company).
Article 3
    The name of the joint venture company is  __________Limited   Liability
Company.
    The name in foreign language is __________.
    The legal address of the joint venture company is at   __________street
___________(city)___________ province.
Article 4
    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.
Article 5
    The Organization form 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  to  the
registered capital.

       Chapter 4 The Purpose, Scope and Scale of Production and Business

Article 6
    The goals of the parties to the joint venture are to enhance   economic
co-operation technical exchanges, to improve the product quality,  develop
new products, and gain a competitive  position  in  the  world   market  in
quality and price by adopting  advanced  and  appropriate  technology   and
scientific management methods, so as to raise economic results and  ensure
satisfactory economic benefits for each investor.
    (Note: This  article  shall  be  written   according  to  the  specific
situations in the contract).
Article 7
    The productive and business scope of the joint venture company  is   to
produce __________ products; provide maintenance service after the sale of
the products; study and develop new products.
    (Note: It shall be written in the contract according to  the   specific
conditions).
Article 8
    The production scale of the joint venture company is as follows:
    1. The production  capacity  after  the  joint   venture  is  put  into
operation is __________.
    2. The production scale may be increased up to ____________  with   the
development of the production and operation. The product varieties may  be
developed into ___________.
    (Note: It shall be written according to the specific situation).

        Chapter 5 Total Amount of Investment and the Registered Capital

Article 9
    The total amount of investment of the joint  venture  company   is  RMB
___________ (or a foreign currency agreed upon by both parties).
Article 10
    Investment contributed by the parties is  Renminbi   __________,  which
will be the registered capital of the joint venture company.
    Of  which:  Party  A  shall  pay   ____________  Yuan,  accounting  for
__________%;  Party  B   shall   pay    ___________Yuan,   accounting   for
__________%.
Article 11
    Both Party A and Party  B  will  contribute  the   following  as  their
investment:
    Party A: cash __________Yuan
             machines and equipment __________Yuan
             premises __________Yuan
             the right to the use of the site __________Yuan
             industrial property __________Yuan
             others __________ Yuan, __________ Yuan in all.
    Party B: cash __________Yuan
             machines and equipment __________Yuan
             industrial property __________Yuan
             others __________Yuan, __________Yuan in all.
    (Note: When contributing  capital  goods  or   industrial  property  as
investment, Party A and Party B shall conclude a separate contract to be a
part of this main contract).
Article 12
    The registered capital of the joint venture company shall be  paid   in
___________ installments by  Party  A  and  Party  B   according  to  their
respective proportion of their investment.
    Each installment shall be as follows:
    (Note: it shall be written  according  to  the   concrete  conditions).
Article 13
    In case any party to the joint venture intends to assign all  or   part
of his 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 authority is required.
    When one party to the  joint  venture  assigns  all   or  part  of  his
investment, the other party has preemptive right.

        Chapter 6 Responsibilities of Each Party to the   Joint  Venture

Article 14
    Party A  and  Party  B  shall  be   respectively  responsible  for  the
following matters:
    Responsibilities of Party A:
    Handling of applications for approval, registration, business   license
and other matters  concerning  the  establishment  of  the   joint  venture
company from relevant departments in charge of China;
    Processing the application for the right to the use of a site  to   the
authority in charge of the land;
    Organizing the design and  construction  of  the   premises  and  other
engineering facilities of the joint venture company;
    Providing cash, machinery and equipment and premises ... in accordance
with the provisions of Article 11;
    Assisting Party B  to  process  import  customs   declaration  for  the
machinery and equipment contributed by Party B as investment and arranging
the transportation within the Chinese territory;
     Assisting  the  joint  venture  company   in  purchasing  or   leasing
equipment, materials, raw materials, articles for  office  use,  means   of
transportation and communication facilities etc.;
    Assisting the joint venture company in  contacting  and   settling  the
fundamental facilities such as water, electricity, transportation etc.;
     Assisting  the  joint  venture  in   recruiting   Chinese   management
personnel, technical personnel, workers and other personnel needed;
    Assisting foreign workers and staff in applying for entry visas,   work
licenses and handling their travel procedures;
    Responsible for handling other matters entrusted by the joint   venture
company.
    Responsibilities of Party B:
    Providing cash, machinery and equipment, industrial  property   ...  in
accordance with the provisions of Article 11, and responsible for shipping
capital  goods  such  as  machinery  and  equipment   etc.  contributed  as
investment to a Chinese port;
    Handling the matters entrusted by the joint venture company,  such   as
selecting and purchasing machinery and equipment outside China, etc.;
    Providing necessary technical personnel for  installing,   testing  and
trial production of the equipment as well as the technical  personnel  for
production and inspecting;
    Training the technical personnel and  workers  of  the   joint  venture
company;
    In case Party B is the licensor,  it  shall  be   responsible  for  the
stable production of qualified products of the joint  venture  company  in
the light of design capacity within the specified period;
    Responsible for other matters entrusted by the joint venture company.
    (note: It shall be written according to the specific situation).

                        Chapter 7 Transfer of Technology

Article 15
    Both Party A and Party B agree that a  technology  transfer   agreement
shall be signed between the joint venture company and Party B (or a  third
party) so as to obtain advanced production technology needed for realizing
the production and operation purpose and the production scale specified in
Chapter  4  of  the  contract,  including  product   design,  manufacturing
technology, means of testing, materials prescription, standard of  quality
and the training of personnel etc.
    (Note: It shall be written in the contract according to  the   concrete
conditions).
Article 16
    Party B offers the following guarantees on the transfer of technology:
     (Note:  Article  applies  only  when   Party  B  is  responsible   for
transferring technology to the joint venture company).
    1. Party  B  guarantees  that  the  overall   technology  such  as  the
designing, manufacturing  technology,  technological  process,  tests   and
inspection of products (Note: The name of the products shall  be  written)
provided to the joint venture company  must  be  integrated,  precise   and
reliable. It is to meet the requirement of the joint  venture's  operation
purpose, and be able to obtain the  standard  of  production  quality   and
production capacity specified in the contract;
    2. Party B guarantees that the technology specified in  this   contract
and the technology transfer agreement shall be fully  transferred  to  the
joint venture company, and pledges that the provided technology should  be
truly advanced among the same type of technology produced by Party B,  the
model, specification and quality of the equipment are excellent and it  is
to meet the requirement of technological operation and practical usage;
    3. Party B shall work out a detailed list of the  provided   technology
and technological service at various stages as specified in the technology
transfer agreement to be an appendix to the contract,  and  guarantee  its
performance;
     4.  The  drawings,  technological  conditions   and   other   detailed
information are part of the transferred technology and shall  be  provided
on time;
    5. During the term of the technology transfer agreement, Party B shall
provide the joint venture company with any improvements in the  technology
and the improved information and  technological  materials  in  time,   and
shall not charge separate fees;
    6. Party B shall  guarantee  that  the  technical   personnel  and  the
workers in the  joint  venture  company  can  master  all   the  technology
transferred  within  the  period  specified  in  the   technology  transfer
agreement.
Article 17
    In  case  Party  B  fails  to  provide   equipment  and  technology  in
accordance with  the  provisions  of  this  contract  and   the  technology
transfer agreement or in case any  deceiving  or  concealing  actions   are
found, Party B shall be responsible for compensating the direct losses  to
the joint venture company.
Article 18
    The technology transfer fee shall be paid in  royalties.  The   royalty
rate shall be ___________% of the net sales value of the products.
    The term for  royalty  payment  is  the  same   as  the  term  for  the
technology transfer agreement specified in Article 19  of  this  contract.
Article 19
    The term for the technology transfer agreement  signed  by   the  joint
venture company and Party B is ___________ years. After the expiration  of
the technology transfer agreement, the joint venture  company  shall  have
the  right  to  use,  research  and  develop   the    imported   technology
continuously.
    (Note: The term for a technology transfer agreement  is   generally  no
longer than 10 years, and it shall be approved by the Ministry of  Foreign
Trade  and  Economic  Cooperation  or  other  examination    and   approval
authorities entrusted by  the  Ministry  of  Foreign  Trade   and  Economic
Cooperation).

                         Chapter 8 Selling of Products

Article 20
    The products of joint venture company will be sold both on the Chinese
and the overseas market, the  export  portion  accounts  for   __________%,
__________% for the domestic market.
    (Note: An annual  percentage  and  amount  for   outside  and  domestic
selling will be written out according to practical situations,  in  normal
conditions, the amount for export shall at least meet the needs of foreign
exchange expenses of the joint venture company).
Article 21
    Products may  be  sold  on  overseas  markets   through  the  following
channels:
    The joint venture company  may  directly  sell  its   products  on  the
international market, accounting for ___________%.
    The joint venture  company  may  sign  sales   contracts  with  Chinese
foreign trade companies, entrusting them  to  be  the  sales   agencies  or
exclusive sales agencies, accounting for __________%.
    The joint venture company may entrust Party B to  sell  its   products,
accounting for ______________%.
Article 22
    The joint venture's products to be sold in China may be handled by the
Chinese materials  and  commercial  departments  by  means   of  agency  or
exclusive sales, or may be sold by the  joint  venture  company   directly.
Article 23
    In order to provide maintenance service to the products sold  both   in
China or abroad, the joint venture company may set up sales  branches  for
maintenance service both in China or abroad subject to the approval of the
relevant Chinese department.
Article 24
    The trade mark of the joint venture's products is __________.

                        Chapter 9 The Board of Directors

Article 25
    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.
Article 26
    The board of directors is composed of  __________directors,   of  which
___________shall be  appointed  by  Party  A,  _________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  term  of  office  may  be   renewed  if
continuously appointed by the relevant party.
Article 27
    The highest authority of the joint venture company shall be its   board
of directors. It shall decide all major issues (Note:  The  main  contents
shall be listed in the light of Article 36 of the Implementing Regulations
for the Joint Venture Law) concerning the joint venture company. Unanimous
approval shall be required for any decisions concerning major  issues.  As
for other matters, approval by majority or  a  simple  majority  shall   be
required.