EXHIBIT 10.25
Agreement on the Use of Trademark
Party A: Liuzhou OVM Construction Machinery Company Limited
Party B: Shenzhen Hong Da Technical Company Limited
Party B has registered the "HVM" trademark with the National Industrial and
Commercial Authority. Upon Party A's request, Party B hereby agrees to grant
Party A right to use the "HVM" trademark. Upon mutual negotiation, both parties
reach the following agreement on the use of trademark:
1. Party B agrees to grant Party A right to use the "HVM" trademark for its
construction engineering and prestressed products;
2. Party B guarantees that the "HVM" trademark be used exclusively by Party
B and other companies as agreed by both parties. Party B shall not
provide the "HVM" trademark for the use by any other companies without
Party A's consent.
3. Party A guarantees to use the "HVM" trademark only by Party A and its
wholly owned or controlled subsidiaries. Party A shall obtain Party B's
consent in case Party A shall require to provide the "HVM" trademark for
the use by other joint venture companies.
4. Party A shall pay to Party B a fee to use the "HVM" trademark based on
1.5% of sales of "HVM" products which shall be paid quarterly.
5. This Agreement shall have a term of 3 years and shall be automatically
renewed for another 3 years if both parties do not raise any changes.
6. If Party A requests to use the "HVM" trademark continuously, Party B
shall not terminate this Agreement. If Party A requests to terminate this
Agreement upon expiration, it shall give Party B three-month notice in
advance.
7. Upon expiration of this Agreement, if Party A requests Party B to
transfer the ownership of the "HVM" trademark, Party B shall transfer at
a price not more than the total usage fee of the "HVM" trademark in the
previous three years based on 1.5% on sales as agreed by both parties.
8. Both parties agree to protect the goodwill of the "HVM" trademark and
shall not do anything to impair the "HVM" trademark.
9. This Agreement is in duplicate with one held by each party.
10. The fee for the use of "HVM" trademark shall accrue from April 1, 2000
onwards.
Party A: Party B:
Liuzhou OVM Construction Machinery Shenzhen Hong Da Technical
Company Limited Company Limited
/s/ Xxxx Xxxx Gui /s/ Xx Xx Liang
--------------------------------- -----------------------------------
Xxxx Xxxx Gui Xx Xx Liang
November 18, 2000
April 29, 2001
OVM International Holding Corporation
Room 2105, West Tower, Shun Tak Centre,
000 Xxxxxxxxx Xxxx C., Xxxxxx xxx,
Hong Kong.
Attn: Xx. Xxxxx Lung Po
Dear Sirs,
Re: English Translation of Chinese Documents
We have reviewed the Chinese version and the English translation of the
following documents which you have provided:
1. Agreement on the Use of Trademark dated November 18, 2000 between Liuzhou
OVM Construction Machinery Company Limited and Shenzhen Hong Da Technical
Company Limited
2. Memorandum of Understanding dated April 29, 2001 between Liuzhou OVM
Joint Stock Co. Ltd. and HVM Development Limited
Please note that we do not hold qualification in translation but to the extent
that we have reviewed the above English translation, we believe the translation
should be fair and correct translation of the corresponding Chinese documents
above.
Yours sincerely,
/s/Li Xxxx Xxxxx
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Li Xxxx Xxxxx
Senior Lawyer
