中外合作经营合同格式

中外合作经营合同格式
 THE CONTRACT FOR SINO-FOREIGN COOPERATIVE JOINT VENTURE

                                   Whole Doc.

                          Chapter 1 General Provisions

In accordance with the Law of the People's Republic of China  on  Chinese-
Foreign Cooperative Joint Ventures 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 set up a Cooperative  venture  in  _______
the People's Republic of China.

                  Chapter 2 Parties of the Cooperative 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 Cooperative Venture Company

Article 2
    In accordance with the Cooperative  Venture  Law  and  other  relevant
Chinese laws and regulations, both  parties  of  the  Cooperative  venture
agree to set up ___________Cooperative venture limited liability company
(hereinafter referred to as the Cooperative venture company).
Article 3
    The name of the Cooperative 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 Cooperative 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 Cooperative venture company is a  limited
liability company. The  profits,  risks  and  losses  of  the  Cooperative
venture company shall be shared by the parties according to  the  relevant
provisions thereafter.

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

Article 6
    The goals of the parties to the Cooperative  venture  are  to  enhance
economic cooperation 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 Cooperator.
    (Note: This  article  shall  be  written  according  to  the  specific
situations in the contract).
Article 7
    The productive and business scope of the Cooperative  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 Cooperative venture company is as follows:
    1. The production capacity after the Cooperative 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 Cooperative venture  company  is
RMB____________(or a  foreign  currency  agreed  upon  by  both  parties).
Article 10
    The registered capital of the joint venture company is RMB __________.
(Exclusive of the right to the use  of  the  site  or  the  right  to  the
exploitation of the natural resources and premises contributed by Party
A.)
Article 11
    Party A and Party B will contribute the following to  the  cooperative
venture:
    Party A: premises__________m2
             the right to the use of the site_________m2
    Party B: cash ______________Yuan
             machines and equipment ____________Yuan
             industrial property __________Yuan
             others _____________Yuan, ___________Yuan in all.
    (Note: When contributing 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 right to the use of site contributed by Party A shall be  for  the
use of the cooperative venture company  within  _______________days  after
the approval of the contract.
    The cash contributed  by  Party  B  shall  be  paid  in_______________
installment. Each installment shall be as follows:
    (Note: it shall be written  according  to  the  concrete  conditions).
Article 13
    The machines and equipment contributed by Party B as investment  shall
meet the needs of the cooperative venture company, and shall be carried to
the Chinese port_________ days  before  the  completion  of  the  premises
construction.

         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 cooperative  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 cooperative venture company;
    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 cooperative venture company  in  purchasing  or  leasing
equipment, materials, raw materials, articles for  office  use,  means  of
transportation and communication facilities etc.;
    Assisting the cooperative venture company in contacting  and  settling
the fundamental facilities such as water, electricity, transportation
etc.;
    Assisting the cooperative 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  cooperative
venture company.
    Responsibilities of Party B:
    Providing cash, machinery and  equipment,  industrial  property...  in
accordance with the provisions of Article  11  and  Article  12,  13,  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  cooperative  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  cooperative
venture company;
    In case Party B is the licensor,  it  shall  be  responsible  for  the
stable production of qualified products of the cooperative 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 Distribution  of  Profits and  Repayment  for  Party B's Investment

Article 15
    The cooperative  venture  company  shall  distribute  its  profits  in
accordance with the following procedure after paying the income tax:
    ____________% as  allocations  for  reserve  funds,  expansion  funds,
welfare funds and bonuses for staff and workers of the cooperative venture
company;
     ____________%   as   repayment   for   Party   B's   Investment   and
___________Years scheduled to pay back all Party B's Investment;
    ____________% of the left distributed to Party A and  ___________%  to
Party B.

                         Chapter 8 Selling of Products

Article 16
    The products of cooperative 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 operations,  in  normal
conditions, the amount for export shall at least meet the needs of foreign
exchange expenses of the joint venture company).
Article 17
    Products may  be  sold  on  overseas  markets  through  the  following
channels:
    The cooperative venture company may directly sell its products on  the
international market, accounting for _________%.
    The cooperative 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 cooperative venture company  may  entrust  Party  B  to  sell  its
products, accounting for ________%.
Article 18
    The cooperative 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  cooperative  venture  company
directly.
Article 19
    In order to provide maintenance service to the products sold  both  in
China or abroad, the cooperative venture company may set up sales branches
for maintenance service both in China or abroad subject to the approval of
the relevant Chinese department.

                        Chapter 9 The Board of Directors

Article 20
    The date of registration of the cooperative venture company  shall  be
the date of the establishment of the board of directors of the cooperative
venture company.
Article 21
    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-chairmans four  years,  their  term  of  office  may  be  renewed  if
continuously appointed by the relevant party.
Article 22
    The highest authority of the cooperative venture company shall be  its
board of directors. It  shall  decide  all  major  issues  concerning  the
cooperative 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.
    (Note: It shall be explicitly set out in the contract).
Article 23
    The  chairman  of  the  board  is  the  legal  representative  of  the
cooperative venture company. Should the chairman be unable to exercise his
responsibilities for any reason, he shall authorize the  vice-chairman  or
any other directors to represent the joint  venture  company  temporarily.
Article 24
    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 more than one third of the total number of directors.  Minutes  of
the meetings shall be placed on file.
Article 25
    The meeting shall be valid only when more than two thirds of the total
number of directors attend. In case of absence, the director shall entrust
another person to attend and vote for him with a trust deed.

                     Chapter 10 Business Management Office

Article 26
    The cooperative venture company shall establish  a  management  office
which shall be responsible for its daily management. The management office
shall have a general  manager,  appointed  by  Party  _____,  ______deputy
general managers, _____by Party  _____; _____by Party ______. The  general
manager and deputy general managers whose terms of  office  is  _____years
shall be appointed by the board of directors.
Article 27
    The responsibility  of  the  general  manager  is  to  carry  out  the
decisions of the board and organize and conduct the  daily  management  of
the cooperative venture company. The deputy general managers shall  assist
the general manager in his work.
Article 28
    The general manager  shall  report  to  the  board  of  directors  the
operation conditions of the cooperative company every  three  months,  and
make a financial report every six months.
Article 29
    In case of graft or serious dereliction of duty on  the  part  of  the
general manager and deputy general managers, the board of directors  shall
have the power to dismiss them at any time.

                          Chapter 11 Labor Management

Article 30
    Labor contract covering the  recruitment,  employment,  dismissal  and
resignation, wages, labor insurance, welfare, rewards, penalties and other
matters concerning the  staff  and  workers  of  the  cooperative  venture
company shall be drawn up between the cooperative venture company and  the
trade union of  the  cooperative  venture  company  as  a  whole,  or  the
individual employees in the cooperative venture  company  as  a  whole  or
individual employees in accordance with the law of the  People's  Republic
of China on Chinese-Foreign Cooperative Joint Ventures.
    The labor contracts shall, after being signed, be filed with the local
labor management department.
Article 31
    The appointment of high-ranking administrative  personnel  recommended
by both  parties,  their  salaries,  social  insurance,  welfare  and  the
standard of travelling expenses etc. shall be decided by  the  meeting  of
the board of directors.

                      Chapter 12 Taxes, Finance and Audit

Article 32
    The cooperative venture company shall pay taxes in accordance with the
provisions of Chinese laws and other relative regulations.
Article 33
    Staff members and workers of the cooperative venture company shall pay
individual income tax according to the Individual Income Tax  Law  of  the
People's Republic of China.
Article 34
    The fiscal year of the joint venture company shall be from  January  1
to December 31. All vouchers, receipts, statistic statements  and  reports
shall be written in Chinese.
    (Note: A  foreign  language  can  be  used  concurrently  with  mutual
consent).
Article 35
    Financial checking and examination of the cooperative venture  company
shall be conducted by an auditor registered in China and reports shall  be
submitted to the board of directors and the general manager.
    In case Party B considers it necessary to  employ  a  foreign  auditor
registered in another country to undertake annual financial  checking  and
examination, Party A shall give its  consent.  All  the  expenses  thereof
shall be borne by Party B.
Article 36
    In the first three months of  each  fiscal  year,  the  manager  shall
prepare the previous year's balance sheet, profit and loss  statement  and
proposal regarding the disposal of profits, and submit them to  the  board
of directors for examination and approval.

                 Chapter 13 Duration of the Cooperative Venture

Article 37
    The duration of the cooperative venture company  is______  years.  The
establishment date of the joint venture company shall be the date on which
the business license of the cooperative venture company is issued.
    An application for the extension of  the  duration,  proposed  by  one
party and unanimously  approved  by  the  board  of  directors,  shall  be
submitted to the Ministry of Foreign Trade and  Economic  Cooperation  (or
the examination and approval authority entrusted by it) six  months  prior
to the expiry date of the joint venture.

  Chapter 14 The  Disposal of  Assets after the  Expiration  of  the Duration

Article 38
    Upon the expiration of the duration, the assets shall belong to Party
A.

                              Chapter 15 Insurance

Article 39
    Insurance policies of the joint venture company on  various  kinds  of
risks shall be underwritten with the People's Republic  of  China.  Types,
value and duration of insurance shall be decided by the board of directors
in accordance with the provisions of the  People's  Insurance  Company  of
China.

    Chapter 16 The  Amendment, Alteration and  Termination of the Con- tract

Article 40
    The amendment of the contract or  other  appendices  shall  come  into
force only after a written agreement has been signed by Party A and  Party
B and approved by the original examination and approval authority.
Article 41
    In case of inability to fulfil the contract or to  continue  operation
due to heavy losses in successive years as a result of force majeure,  the
duration of the cooperative venture and the contract shall  be  terminated
before the time of expiration after being unanimously agreed upon  by  the
board of directors and approved by the original examination  and  approval
authority.

                  Chapter 17 Liability for Breach of Contract

Article 42
    Should the cooperative venture  company  be  unable  to  continue  its
operation or achieve its business purpose due to the fact that one of  the
contracting parties fails to fulfil  the  obligations  prescribed  by  the
contract and articles of association, or seriously violates the provisions
of the contract and articles of association, that party shall be deemed to
have unilaterally terminated the contract. The other party shall have  the
right to terminate the contract in accordance with the provisions  of  the
contract  after  approval  by  the  original  examination   and   approval
authority, and to claim damages. In case  Party  A  and  Party  B  of  the
cooperative venture company agree to continue the operation, the party who
fails to fulfil its obligations shall be liable for  the  economic  losses
caused thereby to the joint venture company.
Article 43
    Should either Party A or Party B  fail  to  provide  on  schedule  the
contributions in accordance with the provisions defined in  Chapter  5  of
this  contract,  the  party  in  breach  shall  pay  to  the  other  party
________Yuan, or __________% of the contribution starting from  the  first
month after exceeding the time limit. Should the party in breach  fail  to
provide  after  ______months,  _________Yuan,   or   _________%   of   the
contribution shall be paid to the other party, who shall have the right to
terminate the contract and to claim damages from the party  in  breach  in
accordance with the provisions of Article 42 of the contract.
Article 44
    Should all or part of the contract and its appendices be unable to  be
fulfilled owing to the fault of one party, the party in breach shall  bear
the liability therefor. Should it be the fault of both parties, they shall
bear their respective  liabilities  according  to  the  actual  situation.
Article 45
    In order  to  guarantee  the  performance  of  the  contract  and  its
appendices, both Party A and Party B shall provide each  other  with  bank
guarantees for performance of the contract within __________days after the
contract comes into force.

                            Chapter 18 Force Majeure

Article 46
    Should either of  the  parties  to  the  contract  be  prevented  from
executing the contract by force  majeure,  such  as  earthquake,  typhoon,
flood, fire, war or other unforeseen  events,  and  their  occurrence  and
consequences are unpreventable and unavoidable, the prevented party  shall
notify the other party by telegram without any delay, and within  15  days
thereafter provide detailed information of the events and a valid document
for evidence issued by the relevant public notary organization  explaining
the reason of its inability to execute or delay the execution  of  all  or
part of the contract. Both parties shall,  through  consultations,  decide
whether to terminate the contract or to exempt part of the obligations for
implementation of the contract or whether to delay the  execution  of  the
contract according to the effects of the events on the performance of  the
contract.

                           Chapter 19 Applicable Law

Article 47
    The formation, validity, interpretation, execution and  settlement  of
disputes in respect of, this contract shall be governed  by  the  relevant
laws of the People's Republic of China.

                       Chapter 20 Settlement of Disputes

Article 48
    Any disputes arising from the execution of, or in connection with, the
contract shall be settled  through  friendly  consultations  between  both
parties. In case no settlement can be reached through  consultations,  the
disputes shall be submitted to the Foreign Economic and Trade  Arbitration
Commission of the China Council for the Promotion of  International  Trade
for arbitration in accordance with its rules of  procedure.  The  arbitral
award is final and binding upon both parties.
Article 49
    During the arbitration, the contract shall be observed and enforced by
both parties except for the matters in dispute.

                              Chapter 21 Language

Article 50
    The contract shall be written in Chinese  and  in  ____________.  Both
language versions are equally authentic. In the event of  any  discrepancy
between  the  two  aforementioned  versions,  the  Chinese  version  shall
prevail.

           Chapter 22 Effectiveness of the Contract and Miscellaneous

Article 51
    The appendices drawn up in accordance  with  the  principles  of  this
contract are integral parts  of  this  contract,  including:  the  project
agreement, the technology transfer agreement,  the  sales  agreement  etc.
Article 52
    The contract and its appendices shall come into force commencing  from
the date of approval  of  the  Ministry  of  Foreign  Trade  and  Economic
Cooperation  of  the  People's  Republic  of  China  (or   its   entrusted
examination and approval authority).
Article 53
    Should notices in connection with any party's rights  and  obligations
be sent by either Party A or Party B  by  telegram  or  telex,  etc.,  the
Written letter notices  shall  be  also  required  afterwards.  The  legal
addresses of Party A and Party B listed in  this  contract  shall  be  the
posting addresses.
Article 54
    The  contract  is  signed  in  __________,  China  by  the  authorized
representatives of both parties on _____, 19_______.
    For Party A                             For Party B
    (Signature)                             (Signature)