8.7 The payment of any penalty by Party B according to 8. 6 shall not release the obligation of Party B to continue the delivery of the technical documentations.
8.8 In case the late delivery of the technical documentations exceeds 4 months, Party A shall have the right to terminate the contract. In this case, Party B shall refund to Party A the amount which Party A has paid to Party B plus the related interest at the rate of 10% per year immediately, but in no case shall such refunding by Party B exceeds 30 days from receipt from Party A of the notice to terminate the contract.
8.9 In case the acceptance of the contract products according to Chapter 7 cannot be successful after three attempts due to Party B'' s responsibility, and within the mutually agree - upon extended period, Party B still cannot correct the defects, Party A shall have the right to terminate the contract.In this case, Party B shall refund to Party A the amount which Party A has paid to Party B plus the related interest at the annual rate of 10% within the time specified in 8.8 and be responsible for the losses thus caused to Party A.
9.Intringement
9.1 Party B guarantees that it can legally transfer the know - how of the contract products to Party A without any interference or charge from any third party. In case of any interference or charge from a third party, they shall be handled by Party B and the third party. The responsibility and loss, either legally or economically, shall be borne by Party B.
9.2 After termination of the contract term, Party A shall still have the right to use the know- how and technical documentations to manufacture contract products.
10.Tax
10.1 Any tax relating to the implementation of the contract imposed by Party A''s country shall be paid by Party B.
10.2 The income tax relating to the implementation of the contract imposed on Party B in China according to the Foreign Enterprise Income Tax Law of China shall be paid by Party B. The amount shah be deducted from Party A''s payment to Party B. The original receipt to prove the payment of such tax shall then be issued by the China Tax Authority.
11.Arbitration
11.1 Any dispute arising from the implementation of the contract shall be settled through friendly consultations. If no settlement can be reached, both parties shall agree to submit the dispute for arbitration.
11.2 The arbitration shall take place in the Shenzhen Office of the China Council for the Promotion of International Trade according to its rules and procedures.
11.3 The result of such arbitration shall be final and binding upon both parties.
11.4 Both parties shall continue their respective contract obligations except those under arbitration.
12.Force Majeure
12.1 Force majeure shall refer to war, flood, fire, typhoon, earthquake and other accidents that both parties mutually agree as force majeure.
12.2 In case of force majeure, the affected party shall notify by telex or cable the other party of the accident as soon as possible and send by registered air - mail to the other party the evidence issued by the local government within 14 days from the accident.
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