Prior to the expiration of the warranty  period  for  the  System  set forth in this Contract， Seller  and/or  its  designated  service  provider shall offer to Buyer the opportunity to enter into an extended maintenance contract with  respect  to  the  System  （including  the  related  Control Computer software but excluding the Control Computer  hardware  platform），renewable for successive and consecutive ________ year periods. Seller and Buyer shall discuss proposals for establishing a service center in ______，with the participation of Buyer， for the servicing of the  system.  Seller and Buyer shall also discuss proposals for  future  joint  cooperation  on other projects within China. (来源：http://www.EnglishCN.com)

　　15. System Licenses and Condition Precedent to Effectiveness

　　（a） The Control Computer’s operating system software  is  provided  to Buyer under the terms and conditions of a sublicense  from  the  operating system licensor， as set forth in Annex F herein.

　　（b） All Seller’s software required for operation of the System and the system is provided to Buyer under the license set forth in Annex E herein.

　　（c） No  technology  transfer  or  assignment  is  granted  under  this Contract with respect to any products， or systems owned by Seller  or  any proprietary rights owned or sublicensed  by  Seller.  No  right  to  grant sublicenses is granted  or  is  to  be  inferred  or  implied  under  this Contract.

　　（d） Relevant PRC regulations may require Buyer to obtain the  approval of the Ministry of Foreign Trade and Economic Cooperation （“MOFTEC”） as  a precondition for the effectiveness of （a） the sublicense  of  the  Control Computer’s operating system software to Buyer from  the  operating  system licensor， as set forth in Annex F herein and （b） the license  of  Seller’s software which is required for operation of the System， to  Buyer  as  set forth in Annex E herein （collectively， the  “Annexes”）。  Within  _________ working days of the execution of  the  Contract，  Buyer  and  Seller  will jointly confer with MOFTEC  to  determine  whether  MOFTEC’s  approval  is required for the effectiveness of the Annexes. If MOFTEC informs Buyer and Seller to the satisfaction of Buyer and Seller that  the  Annexes  do  not require its approval，  the  Contract  shall  become  effective  upon  such communication. If， on the other hand， MOFTEC informs Seller and Buyer that the issuance of its approval is a precondition for  the  effectiveness  of the Annexes， then this Contract  shall  become  effective  only  upon  the issuance of such approvals.

　　If the foregoing conditions are not  fulfilled  within  ________  days after the Contract execution date and Buyer and Seller  do  not  agree  in writing to waive such condition or to extend the time for its  fulfilment，the Seller shall in such event  be  entitled  to  terminate  the  Contract forthwith  and  neither  Party  shall  have  any  further  obligations  or liability towards the other Party under this Contract.

　　16. System Security Requirements

　　The parties shall agree to institute a System security  plan  for  the System， which plan outlines security procedures that will  be  established and maintained in order to prevent theft or other compromise of the System during the shipment， storage， operation or any other phase of the parties’activities in connection with this Contract， including  the  warranty  and post-warranty periods. Buyer agrees to adopt and comply with and/or  cause its agents to adopt and comply with  reasonable  alternate  or  additional security requirements Seller may from time to time recommend.

　　17. Equipment Order Lead Times

　　Delivery dates for the equipment which is the subject of this Contract appear in Annex B. Order lead times required for additional equipment  are as follows： （sketch）

　　Buyer will provide a rolling  ________  month  forecast  of  equipment desired for delivery. The first ________ months of this forecast are to be considered firm orders， subject to cancellation  penalties  set  forth  in Annex C.

　　18. Mutual Representations

　　Each party represents and warrants that：

　　（a） It is duly organized and registered and in good  standing  in  its state or country and has power and authority to  enter  into  and  perform this Contract and any other agreements and documents executed or delivered by it in connection  herewith  （collectively，  with  this  Contract，  “the Documents”）。

　　（b） Its execution， delivery and performance of the Documents have been duly authorized by all necessary action.

　　19. Confidentiality

　　（a） Buyer agrees that any  information  or  data  such  as  Seller’s drawings and software （including， without  limitation，  designs，  reports，software documentation， manuals， models， and the like）， revealed by Seller to Buyer and containing proprietary information marked or identified as“proprietary” or “confidential” shall be maintained in confidence by Buyer with at least the same care and safeguards as are applied to  Buyer’s  own proprietary information， but in no event with less than  reasonable  care. Such information or data shall not be duplicated， disclosed to others，  or used without the written permission of Seller. These obligations shall not apply to any information or data which is in  or  comes  into  the  public domain without violation of this provision； or  is  received  lawfully  by Buyer from a third party； or  is  developed  by  Buyer  independently  and without benefit of the information or data received  from  Seller.  Seller shall  have  no  obligation  to  provide   confidential   or   proprietary information.

　　（b） Buyer’s obligations under this clause shall remain in  effect  for _______ years after this Contract is signed by the Seller and  Buyer.  All tangible forms of Seller’s proprietary information delivered by Seller  to Buyer shall be and remain the property of Seller， and shall be returned to Seller upon Seller’s request.

　　（c） Except as expressly provided herein， it is agreed that no  license under any patents， trade secrets or copyrights of  Seller  is  granted  to Buyer  by  the  disclosure  of  Seller’s   confidential   or   proprietary information.

　　（d） Neither party shall use the name or the name of any  trademark  or trade name （or symbolic representation thereof） of the other party or  its parent， subsidiaries  or  other  affiliates，  in  marketing，  advertising，public relations efforts or  in  any  other  manner  without  the  express written consent of such other party in each instance， which consent  shall not unreasonably be withheld or delayed.

　　20. Indemnification

　　（a） Each party shall indemnify and hold harmless the other party，  its shareholders，  directors，  officers，  employees，  agents，  designees   and assignees，  or  any  of  them，  from  and  against  all  losses，  damages，liabilities， expenses， costs， claims， suits， demands， actions，  causes  of actions， proceedings， judgments， assessments， deficiencies and charges（collectively， “Damages”） caused by，  relating  to  or  arising  from  the performance by  such  party  in  accordance  with  this  Contract  of  its obligations hereunder， and Buyer  shall  also  indemnify  Seller，  without limiting the foregoing， for any  such  item  caused  by，  relating  to  or arising from （a） the programming services which are authorized for viewing using the System，  including  any  assertion  that  any  such  programming service involves copyright infringement， （b） any  disputes  between  Buyer and any of its program distributors or other distributors or affiliates，（c）  any  disputes  or  claims  involving  the  subscribers  for   Buyer’s programming services， or （d） any assertion that Buyer  has  been  involved in， that Buyer’s conduct of subscription involves， or that Buyer’s use  of the System involves， any unfair competition or violations of  laws，  rules or regulations.

　　（b） In the event of a third-party claim， with respect to which a party is entitled  to  indemnification  hereunder，  a  party  （the  “Indemnified Party”） shall notify the other party （the “Indemnifying Party”） in writing as soon as practicable， but in no  event  later  than  ______  days  after receipt of such claims. The Indemnified Party’s failure  to  provide  such notice shall not preclude it from seeking indemnification hereunder unless such failure has materially prejudiced the Indemnifying Party’s ability to defend such claim. The Indemnifying Party shall promptly defend such claim（with counsel of  its  own  choosing）  and  the  Indemnified  Party  shall cooperate with the Indemnifying  Party  in  the  defense  of  such  claim，including the settlement of the matter on  the  basis  stipulated  by  the Indemnifying Party （with the Indemnifying Party being responsible for  all costs and expenses of such settlement）。 If the Indemnifying Party within a reasonable time after notice of a claim fails to  defend  the  Indemnified Party， the Indemnified Party shall be entitled to undertake  the  defense，compromise or settlement of such claim at the expense of the  Indemnifying Party. Upon the assumption of the defense of such claim， the  Indemnifying Party may settle， compromise or defend as it sees fit.

　　Notwithstanding anything to the contrary set forth  in  this  Section，Seller will defend any suit， claim， action or proceeding  brought  against Buyer to the extent that such suit， claim， action or proceeding  is  based on a claim that goods manufactured and sold by Seller  to  Buyer  infringe patent， copyright，  mask  work，  trademark，  trade  secret  or  any  other intellectual property rights of any third party and Seller shall  pay  all damages and costs awarded by final judgment （from which no appeal  may  be taken） against Buyer， as  well  as  its  actual  expenses  and  costs，  on condition that Seller （i） is promptly informed and  furnished  a  copy  of each communication，  notice  or  other  action  relating  to  the  alleged infringement， （ii） is given sole control of  the  defense  （including  the right to select counsel）， and the sole right to compromise and settle such suit or proceeding； provided however， that Seller’s  liability  hereunder，if any， shall be strictly and solely limited to the  amount  of  royalties which would be payable in respect of revenues derived by Seller from Buyer from sales of the infringing goods.  Seller  shall  not  be  obligated  to defend or be liable for costs and damages if the infringement  arises  out of a combination with， an addition to， or modification of the goods  after delivery by Seller， or from use of the goods， or any part thereof， in  the practice of a process.