Common use of Taxation and Insurance Clause in Contracts

Taxation and Insurance. 14.1 The JV Company shall pay all taxes and duties required under the national and local laws and regulations of the PRC. The JV Company’s PRC and expatriate personnel shall pay individual income tax in accordance with the Individual Income Tax Law of the People’s Republic of China. 14.2 The JV Company will submit an application for confirmation of the JV Company as a “Technologically Advanced Enterprise” pursuant to relevant regulations and, upon receipt of such confirmation, shall register with the local tax authorities for the preferential tax treatment granted to Technologically Advanced Enterprises. The JV Company will apply for other preferential tax treatment which may be available to the JV Company from time to time under the applicable PRC laws and regulations. 14.3 The JV Company, at its own expense, shall take out and maintain at all times during the Contract Term adequate insurance for the JV Company against loss or damage by fire, natural disasters, and such other risks as are customarily insured against in the industry during the construction of a manufacturing plant and operation of a manufacturing company. The JV Company shall also obtain and pay for all types of insurance required by laws and regulations of the PRC. 14.3.1 The property, transport and other types of insurance of the JV Company will be denominated in RMB, as appropriate. 14.3.2 The JV Company shall take out the appropriate amount of product liability and personal injury insurance in order to indemnify and protect the JV Company from Third Party product liability and personal injury claims. 14.4 The JV Company shall take out the required insurance from an insurance company or organization that is authorized by the relevant PRC authorities.

Taxation and Insurance. 14.1 The JV Company shall pay all taxes and duties required under the national and local laws and regulations of the PRC. The JV Company’s PRC and expatriate personnel shall pay individual income tax in accordance with the Individual Income Tax Law of the People’s Republic of China. 14.2 The JV Company will shall submit an application for confirmation of the JV Company as a “Technologically Advanced Enterprise” pursuant to relevant regulations and, upon receipt of such confirmation, shall register with the local tax authorities for the preferential tax treatment granted to Technologically Advanced Enterprises. The JV Company will shall apply for other preferential tax treatment which may be available to the JV Company from time to time under the applicable PRC laws and regulations. 14.3 The JV Company, at its own expense, shall take out and maintain at all times during the Contract Term adequate insurance for the JV Company against loss or damage by fire, natural disasters, and such other risks as are customarily insured against in the industry during the construction of a manufacturing plant and operation of a manufacturing company. The JV Company shall also obtain and pay for all types of insurance required by laws and regulations of the PRC. 14.3.1 The property, transport and other types of insurance of the JV Company will be denominated in RMB, as appropriate. 14.3.2 The JV Company shall take out the appropriate amount of product liability and personal injury insurance in order to indemnify and protect the JV Company from Third Party product liability and personal injury claims. 14.4 The JV Company shall take out the required insurance from an insurance company or organization that is authorized by the relevant PRC authorities.