If any goods manufactured and supplied by Seller to Buyer are held  to infringe any valid patent and Buyer is enjoined from using the same， or if Seller believes  such  infringement  is  likely，  Seller  will  exert  all reasonable efforts at its option and expense （i） to procure for Buyer  the right to use such goods free of any liability for such infringement， or（ii）  replace  or  modify  such  goods  with  a  noninfringing  substitute otherwise complying  substantially  with  all  the  requirements  of  this Contract， or （iii） upon return of the goods， refund the purchase price and the transportation costs of such  goods  （less  reasonable  allowance  for their use and benefit derived  therefrom  for  the  period  of  time  from delivery  to  Buyer，  such  allowance  being  based  on  a   straight-line depreciation period of _______ years from the date of shipment by Seller）。 (来源：www.EnglishCN.com)

　　If the infringement is alleged prior to  completion  of  delivery  of  the goods， Seller has the right to decline to make further  shipments  without being in breach of contract. If Seller has not been enjoined from  selling such goods to Buyer， Seller may （at Seller’s sole  election），  at  Buyer’s request， supply such goods to Buyer， in which event Buyer shall be  deemed to extend to Seller the same patent indemnity hereinabove stated.

　　The same patent indemnity shall be deemed to be extended to Seller  by Buyer if any suit or proceeding is brought against Seller based on a claim that  the  goods  manufactured  by  Seller  in  compliance  with   Buyer’s specifications infringe any valid patent.

　　Buyer shall promptly notify Seller of  any  infringement  by  a  third party of  intellectual  property  rights  licensed  to  Buyer  under  this Contract. In the event that a  third  party  infringes  such  intellectual property rights， the Parties shall cooperate  with  one  another  to  take appropriate action to cause such infringement to cease.

　　The foregoing states the sole and exclusive liability of  the  parties hereto for infringement of patents， copyrights， mask works， trade  secrets trademarks， and other proprietary rights， whether direct or  contributory，and is in lieu of all warranties， express， implied or statutory， in regard thereto， including， without limitation， the warranty against  infringement specified in the uniform commercial code.

　　21. Limitation of Liability

　　Buyer agrees that in no event  shall  Seller  be  liable  for  damages hereunder， or for any claim of  any  kind  as  to  any  System  or  System components delivered or for nondelivery  of  such  System  or  components，regardless of the form of the  action，  in  an  amount  greater  than  the purchase price of the System or components in respect of which such  claim is made.

　　In no event shall Seller be liable for any loss of  profits，  loss  of use， interruption of  business，  or  indirect，  special  or  consequential damages of any kind.

　　22. Force Majeure

　　The term “Force Majeure” means acts of  God，  fire，  casualty，  flood，earthquake， strikes or lockouts， riots， insurrections or civil  disorders，embargoes， war， any  future  law，  order，  regulation，  or  other  act  of government， and  other  delays  beyond  Seller’s  reasonable  control.  If Seller’s performance of this Contract is prevented， restricted， delayed or interfered with by reason of Force Majeure， Seller’s performance shall  be excused to the extent delayed or prevented  by  Force  Majeure，  provided，however， that Seller take reasonable steps to avoid or remove such  causes of nonperformance and shall  continue  performance  whenever  and  to  the extent such causes are removed.

　　If， due to a Force Majeure  event，  the  Buyer  and/or  Seller  cannot accomplish its contractual obligations for a period of _______ consecutive months， the Buyer and Seller shall meet and come to  an  agreement  within the shortest possible period of time upon the  conditions  on  which  they could continue the execution of this contract.

　　Should the Buyer and Seller fail to agree on the  conditions  of  such continuation， the matter shall be referred to  arbitration  in  accordance with Article 26 hereof.

　　23. Termination

　　（a） Buyer or Seller shall have the right to terminate this Contract if the other makes an assignment for the benefit of creditors， or a receiver，trustee in bankruptcy or similar officer is appointed to  take  charge  of all or any part of the party’s property or business or  is  adjudicated  a bankrupt.

　　（b） Seller shall have the right to terminate this  Contract  if  Buyer neglects or fails to make payment in accordance with the terms hereof  and such condition is not remedied within  ____________  business  days  after written notice to Buyer. Seller may， at Seller’s option， extend the  time for Buyer’s cure.

　　24. Nonwaiver of Rights

　　Neither the waiver by a party hereto of a  breach  of，  or  a  default under， any of the provisions of this Contract， nor the failure of a  party on one or more occasions，  to  enforce  any  of  the  provisions  of  this Contract or to exercise any right or privilege hereunder shall  thereafter be construed as a waiver of any subsequent breach  or  default，  or  as  a waiver of any of such provisions， rights or privileges hereunder.

　　25. Notices

　　All notices， requests， or other communications which may  be  sent  by either party to the other party pursuant to  this  Contract  shall  be  in writing and shall be addressed as follows：

　　If to Seller：               If to Buyer：

　　All communications between the parties in the course  of  the  present Contract shall be made  in  ___________  language  by  registered  airmail letter sent to the addresses set forth herein or by facsimile. The date of receipt of notice shall be deemed to be _______ days after its postmark in the case of registered mail or the date of dispatch of a facsimile.

　　26. Applicable Law and Resolution of Disputes

　　This Contract is made in accordance with the Foreign Economic Contract Law of the People’s Republic of China and the laws of ___________（country）。 The laws of ____________ （country）  shall  be  applied  to  the settlement of any disputes arising from this Contract.

　　（a） Consultations. In the event any dispute arises in connection  with the validity， interpretation， or implementation of this Contract or any of its annexes， the Parties shall attempt in the first  instance  to  resolve such dispute  through  friendly  consultations.  If  the  dispute  is  not resolved in this manner within ______ days after the  date  on  which  one Party has served written notice on the other Party for the commencement of consultations， then either party may refer the dispute to  arbitration  in accordance with the provisions of this Section 26.

　　（b） Arbitration. （sketch）

　　27. Binding Effect

　　These terms and conditions shall be binding  upon  and  inure  to  the benefit of the parties hereto， their successors and permitted assigns.

　　28. Entire Contract

　　The terms  and  conditions  incorporated  herein  contain  the  entire agreement and understanding  between  the  parties  with  respect  to  the subject matter hereof  and  merge  and  supersede  all  prior  agreements，understandings and representations. No additions or modifications shall be effective unless in writing signed by  the  parties  hereto.  The  present Contract shall be made in __________ Language in four （4） originals， two（2） for each party.

　　In witness whereof， the parties have duly executed  this  Contract  on the date first above written.

　　SELLER：                     BUYER：

　　By：                         By：

　　Annex A  System Components （sketch）