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Party A: ××Company
乙方：香港××有限公司
Party B: ××Co., Ltd. Hong Kong
双方在遵守中华人民共和国政策、法律和特区有关规定的前提下，本着平等互利的原则，就来料加工各款塑胶五金玩具业务进行了充分协商，一致达成了如下合同条款：
Party A and Party B, according to the laws and policies of the People's Republic of China and the relevant regulations of the Special Economic Zones and the principles of equality and mutual benefit, have held discussions relation to the processing and as sembling of plastic toy products and have reached agreement on the following contractual clauses:
一、双方责任 Responsibilities
1．甲方责任： Responsibilities of Party A
（1）提供有上盖之厂房1栋2层850平方米，无上盖场地500平方米，工厂管理人员1名，生产工人首期80名、开业后十二个月增至200名，（禁止雇用不满十六周岁的童工），如当地劳力缺乏，可到外地雇请，但须经深圳市有关部门批准，在合同期内代乙方加工生产上述产品，加工成品后交回乙方复出香港。
1) Party A shall provide factory space consisting of two floors with a total space of 850 square metres, field of 500 square metres without covering, one factory management person and eighty workers for the first phase. The number of workers shall be increased to 200 twelve months after operation. (Employment of teenagers under 16 is prohibited). If the local labour is not sufficient, Party A can employ workers from other places with the approval of the relevant departments of Shenzhen Municipality. Within the contract term, Party A shall process the above products for Party B which shall be re-exported to Hong Kong.
（2）提供现有水、电设备供加工生产之用，如需新安装水、电设施，其费用由乙方支付。
2)The water supply and utility equipment required for processing shall be provided by Party A. If additional installations of water and electric facilities are required, the expenses thereof shall be
borne by Party B.
（3）办理来料加工、装配有关业务的进出口手续及对工厂实行行政、财务和管理，不得把工厂以任何形式承包给任何单位和个人经营。
3) Party A shall arrange all the necessary import and export approvals required for processing and assembly and provide administration and accounting management for the processing plant. Party A cannot contract Party A's responsibilities to any other Party or individual in any way.
2．乙方责任： Responsibilities of Party B
（1）不作价提供加工上述产品及装修厂房和建造 平方米简易厂房所需的设备材料（详见清单），分多批运抵甲方工厂，设备总值约415万港元。
1 ) To provide the equipment with the total value of 4. 15 million Hong Kong Dollars.
（2）不作价提供加工上述产品所需的原料、辅料和包装物料，具体数量、规格在合同中订明。
2 ) To provide the raw materials, indirect materials and packaging materials for processing the products. Quantities and specifications are to be specified in separate contracts.
（3）工人如因工作不力（含工厂管理人员），经教育无效者，乙方有权向甲方提出调换，但禁止非法搜查甲方工厂工人的身体。
3) In the event any personnel, including management shows substandard performance and makes no improvement after retraining, Party B shall have the right to request Party A to replace such persons. However, any physical search of the workers shall be regarded as illegal and prohibited.
二、加工数量 Quantity of Products
第一年加工上述产品，加工费约43．2万港元，从第二年开始的产量，应在前一年的基础上有所增加，具体数量应在生产合同中订明。
During the first year, the total processing fee shall amount to HK $ 432, 000. 00. From the second year, the quantity shall be increased. Details shall be specified in separate contracts.
三、作价原则和工缴费 Pricing &- Salary
1．试产（培训）期为二个月，在试产期内，工人每人每月工缴费暂定为450港元，（每月工作二十五天半，每天八小时）。
(1) The trial production (including training) period shall be two months. During such period, the workers shall be paid HK $ 450. 00 per month on the basis of 25.5 working days per month and 8 working hours per day.
2．试产期满后，采取按件计算方式，在坚持互利原则的基础上、双方应根据加工的品种、规格、款式和工艺繁简不同进行定价，并在生产加工合同中订明（为确保工人的合理收入，工缴费平均每人每月不低于550港元）。需要加班时，加班费另计，但每个工人每天加班时间最长不得超过三个小时。
(2) After the trial production period, the workers' payment shall be calculated according to actual production specification, style and craftwork . On the basis of mutual benefit, both parties shall consider the processing fee, which shall be specification in separate contracts, according to different kinds of products, specifications, styles and engineering procedures. In order to ensure the reasonable income of the workers, the worker's monthly salary shall be maintained no lower than HK $ 550. 00. If overtime work is required, payment shall be calculated separately. However, overtime shall not exceed
three hours a day.
3．甲方工人生产消耗的水、电费由乙方负责。
(3) Expenses for water and electricity in Party A's plant shall be borne by Party B.
4．每月由乙方支付9，400港元给甲方，作为工厂管理费。
(4) Every month Party B shall pay HK , 400. 00 to Party A for management expenses.
四、损耗率 Proportion o Products Damaged
1．试产期内的消耗率，实报实销。
(1) During the trial production period, Party B shall absorb the cost of products damaged.
2．试产期后的损耗率，由双方商定，并在生产合同中订明。
(2) After the trial production period, the proportion of damaged products shall be mutually considered and decided by both parties and specified in separate contracts.
五、来料和交货期 Shipment of Raw Materials &- Finished Products
1．乙方按生产合同规定的加工量，按月提供足够数量的原辅材料和包装物料。为使甲方工厂能正常生产，乙方必须在每批产品开始加工前七天，将所需的原材料和包装物料运抵甲方工厂。除因人力不可抗拒之原因外，乙方来料不足，造成甲方工厂每月生产不足二十一天半，停工天数累计不得超过四天，否则，乙方应按在厂工人以停工天数计，每人每天补助生活费十五元港元，支付给甲方工厂。
(1) Every month, Party B shall provide sufficient raw materials and packaging materials according to the contracted processing volume. To ensure the normal production of Party A's plant ,Party B shall ship such materials to the plant seven days before the production of each lot of products. Except for reason of force majeure, the plant shall operate for more than 21. 5 days. In case production is held up for more than four days due to insufficient supply of raw materials, Party B shall calculate the actual days when production is shut down and pay to Party A the workers' living expenses at the rate of HK $ 15. 00 per person per day.
2．为使乙方能开展正常的业务活动，甲方工人应按双方协定的交货期，按时、按质、按量交货给乙方。如非人力不可抗拒原因，甲方不按时、按质、按量交货，造成乙方的经济损失，甲方应负赔偿之责任，赔偿数额可在具体合同中订明。
(2) To ensure the normal operation of Party B's business activities, Party A shall deliver the finished products to Party B in accordance with the time of delivery, quality and quantity. Except
for reason of force majeure, in case losses to Party B are caused due to Party A's failure to make delivery as mentioned above, Party A shall be responsible for the compensation. Details of such compensation shall be mutually agreed upon in separate contracts.
3．由乙方提供的机械、通风、照明等设备及原辅材料、包装物料，在甲方工厂由双方进行交收登记，建立帐册。甲方工厂加工后的成品，在甲方工厂经乙方验收起运后，甲方不负产品规格、质量、短缺等任何责任。
(3) Both parties shall mutually inspect and document the equipment and materials provided by Party B, such as machinery, ventilation and lighting equipment and raw materials. After the finished products are inspected and shipped from the plant by Party B, Party A shall be free of any responsibility in regard to specifications, quality and quantity, etc.
六、结汇形式 Method of Payment
工缴费及工人管理费每月结算一次，以D／P即期结汇或支票方式结汇，由甲方工厂会同深圳市上步区对外经济贸易公司开具发票后，通过中国银行深圳分行向乙方在香港开户的银行（____银行、帐号____）办理。乙方超过五天仍未付款给甲方，则按逾期天数，以当时香港银行利息一并付给甲方。乙方连续两个月不结汇，甲方有权采取停止出货或其它措施。
Payment of workers' salary and management fee shall be settled once a month by D/P, which shall be conducted through Bank of China Shenzhen Branch by Party B's bank in Hong Kong (______
Bank, Account NO. ___) in accordance with the invoices issued by Party A and the Shangbu District Foreign Economic &. Trade Company. In case Party B's payment is delayed for more than
five days, Party B shall be responsible for the interest according to the bank's interest rate ; in case payment is not settled for two consecutive months, Party A shall have the right to suspend delivery of the finished products or take other measures.
七、劳动保护及运输与保险. Labour Protection &. Insurance
1．工厂应做好劳动保护及安全工作，完善防尘、防烟、防毒设施，厂房保持通风光亮，内外环境卫生整洁，对有污染性项目，须经市环保部门批准，方能立项经营。
(1) The plant shall take safety measures and protect the workers from dirt, smoke and poisonous materials. The factory shall be maintained ventilated and bright, and the surroundings clean and tidy.
2．乙方提供的机械、通风、照明设备、原辅材料、包装物件及甲方工厂加工后的成品运输费用，均由乙方负责。
(2) The transportation expenses for the machinery, ventilation and lighting equipment, raw materials, indirect materials, packaging materials and the finished products shall be paid for by Party B.
3．原辅材料、包装物料的运进，成品运出及加工期间存放的机械设备、原料和包装物料及操作机械的工人，均由乙方向中国人民保险公司深圳分公司投保。
(3) All insurance for the transportation and storage of the above materials, machinery and equipment and coverage of the workers operating the machinery shall be arranged through the People's Insurance Company of China, Shenzhen Branch.
八、技术协作 Technical assistance
技术交流在设备运抵甲方工厂后，乙方应尽快派出人员进行安装，甲方派出人员进行协助。从试产期开始，乙方应派出技术人员对甲方工厂进行技术培训，直到工人能基本掌握生产技术，进行正常生产时为止。乙方技术人员的工资及一切费用由乙方负责，甲方提供生活上的方便。
8. After the arrival of the equipment in the plant, Party B shall dispatch personnel to install such equipment, while Party A shall arrange personnel to assist the installation. When the trial production begins, Party B shall provide technical personnel to carry out the training until the workers have mastered the technology and the production operates normally. Party B shall be responsible for the technical personnel's salary and all related expenses, and Party A shall provide daily necessities.
九、合同期限 Contract Term
本合同经批准双方签字后，乙方须出示商业登记及银行资信证明书交由甲方办理营业执照经海关备案生效。有效期为三年，即从一九八八年二月二十一日至一九九一年二月二十一日。如要提前终止或延长本合同，需在三个月前通知对方，并经双方协商处理终止或延长合同事宜。某方单独提前终止合同，要负责补偿对方的经济损失。补偿的办法，应根据终止合同前半年内的每月平均工缴费为准，补偿两个月的工缴费总额给对方。合同期满后，不动资产（如厂房、宿舍）归甲方所有，由乙方不作价提供的可动产（如机械、车辆、通风设备）归乙方所有，并按海关和有关规定及时进行办理核销手续。双方同意，在本合同经批准双方签约十天内，由乙方预付4000港元给甲方，作为履约保证金，从甲方收到履约金之日起两个月内，乙方仍不投产开业，履约保证金即无条件归甲方所有，同时，甲方有权废约。如乙方能按时投产开业，该履约保证金可作工缴费抵付给甲方。本合同正本一式五份，甲、乙双方、海关、车管所、业务单位各一份，副本若干份，均具有同等效力。本合同有如未尽事宜，双方可随时协商补充或修改，并报上级批准实施。
After this contract is signed and approved, Party B shall present to Party A its Commercial Registration and Bank Credit Certification for Party A to arrange business licence and Customs Registration. The term of this contract shall be three years, e. g. from Feb. 21, 1988 to Feb. 21 , 1991. If either party wishes to terminate in advance or extend the contract, the responsible party shall inform the other party three months in advance so that both parties can discuss and settle such a termination or extension. If either party terminates the contract before the term expires,the responsible party shall compensate the other party for the losses. Ins such case, the responsible party shall pay the other party as compensation the amount of two times the monthly processing fee. The fee will be based on the average monthly fee of the previous half year. After the contract term expires, the real estate such as the factory building and dormitory building shall return to Party A and the machinery and equipment delivered by Party B shall be returned to Party B. Customs clearance procedures shall be arranged according to relevant regulations. Both parties agree that, within ten days after the contract is signed and approved, Party B shall pay Party A the amount of HK $ 4, 000. 00 as its guarantee to carry out the contract. If, within two months after Party A's receipt of such amount, Party B still cannot arrange to start production, the amount shall be forfeited to Party A unconditionally and Party A shall have the right to cancel the contract. If Party B can start production on time, the amount will be deducted from the processing fee. This contract is made out in five copies for both parties, the Customs, Vehicle Authority and the business department. They shall have the same force. If there are other issues not covered in the contract, both parties can discuss to supplement or amend the contract and submit the results to relevant departments for approval.
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