KNOW-HOW LICENSE - FL2500 AGREEMENT entered into this day, 23rd day of May, 2007 by and between LIAONING GAOKE ENERGY GROUP (GAOKE) (as Licensee) located at No. 64 Huanghai Road Yuhong District Shenyang City, CHINA, represented by Vice-President Mr....
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FLAG – license FL2500-07 05 23
KNOW-HOW LICENSE -
FL2500
AGREEMENT entered into this
day, 23rd day of
May, 2007
by and
between
LIAONING
GAOKE ENERGY GROUP
(GAOKE)
(as
Licensee)
located
at
Xx. 00
Xxxxxxxx Xxxx Xxxxxx Xxxxxxxx Xxxxxxxx City, CHINA,
represented
by Vice-President Xx. Xxxx
Yunbo
and
Fuhrländer AG
(Fuhrländer)
(as
Licenser)
located
at
Xxx xxx
Xxxx 0, X 00000 Xxxxxxxxxxxx, Xxxxxxx
represented
by Vice-President Dr.-Ing.
Xxxxxx Xxxx
License
Contract Gaoke 23052007
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PREAMBLE
Gaoke is
a well known Company in the field of Energy business with focus amongst others
on Power Plants, special Micro Networks, New Energy (Renewables) and especially
Wind farms. The total range of Research, Development, Design,
Construction, and Manufacturing is covered.
Gaoke
additionally wants to manufacture and sell wind turbines under license from
Fuhrlaender AG in a specific territory within the growing CHINESE
market. Licensee will also support the assembling, erection and
after-sales of wind turbines in territory defined in §1(1).
Fuhrländer
AG, (hereafter referred as the "Licenser") has obtained
certain rights to 2500kW wind turbine technology from W2E Wind -To-Energy GmbH
("W2E") and has affiliates belonging to Fuhrländer Group (FL Group) and is
acting independently in using technology and licensing. FL Group is a
well-known German manufacturer of wind turbines between 30 kW and 2500 kW
electrical outputs, primarily wind turbines with 1 to 2.5 MW power, with rotor
diameter between 50 and 100m, stall- and pitch-regulated, tubular tower types
between 50m and 100 m, or lattice towers up to 160m. The training
program of the FL Group consists of very experienced personnel.
The
Parties agree that Licensee intends to manufacture wind turbines under this
Agreement on the following basis:
Licenser
gives the right to the Licensee to use the license material in the way described
in this contract. Every use going beyond it must be agreed on in
writing. Without the prior consent of the Licenser, the ownership of
the license material remains exclusively with Licenser or the owner granting
rights to the Licenser. Licenser agrees to transfer the complete set
of technology of FL 2500 series wind turbines certified by Germanischer Xxxxx
(the "Licensed Product"). For the avoidance of doubt, series means
the comprehensive series of 2500kW wind turbines of W2E technology, with rotor
diameter between 80m and 100m, hub center height between 65m-160
m. Licensee and Licenser agree to collaborate to establish Licensed
Product production in Province of Liaoning, PR-CHINA. It is the
intention of both parties to create a manufacturing facility in Liaoning similar
to the one in Germany that manufactures the Licensed Product. After
technology transfer, if Licenser makes any improvement or/and perfection to the
technology or know-how of FL series wind turbines, Licenser will allow Licensee
to use that improvement or/and perfection free of charge.
§
1. LICENSE GRANT
1.
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Licenser
herewith grants to the Licensee a license to make use of the Licenser's
know-how ("Licensed
Know-how") in the territory according Annex
2 (the "Territory") with the
particular Rights according Annex
2 solely for the purposes of producing and selling the Licensed
Product. For clarity, the Territory shall be solely as
described in Annex
2.
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2.
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The
Licenser herewith grants to the Licensee a non-exclusive license to
manufacture and distribute the Licensed Product within the Territory
(§1.1). The Licensee has no right to make use of the know-how
to manufacture and market the Licensed Product outside the Territory (§
1.1). For clarity, this means, that Licensee needs Licenser's
prior written approval for each project, even for a draft, outside the
Territory (§1.1). Disregarding this requirement may, at the
option of Licenser, lead to termination of this contract without notice
and the loss of any further right to make use of the licensed know-how by
the Licensee. This license covers the entire scope of the
Licensed Product, including improvement and perfection of FL 2500 series
wind turbine technology.
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3.
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The
Licensed Know-how shall include all related technical documents, technical
secrets, patents, trademark and technical assistance limited to the scope
of the licensed know-how required and used by the Licensee with respect to
the Licensed Product. The know-how shall
involve: the design, assembling, sale, service, test method,
installation, after-sale service, inspection, quality standard, safeguard
construction for equipment, supplier list (containing the suppliers' name,
address, contact method, product specifications) complete technical and
relevant documents as far as they are available to Licenser and about the
acceptance method and standards of parts purchased, personnel training and
the debugging of special failures. However the parties
acknowledge that certain parts of the Licensed Product consist of
components, materials and software supplied by third parties and therefore
that the Licenser is not the owner of the property rights of those
components, materials and software supplied by third parties (except for
certain specifications which form part of the Licensed
know-how). The Licensed Know-how is fully represented by the
documentation listed in Annex
1.
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4.
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Licenser
may sell the Licensed Product in the Territory (§ 1.1). For
avoidance of doubt, Licensee has the right to assemble and distribute the
Licensed Product in the Territory non-exclusively without minimum
performance requirements due to the fact that Fuhrlaender is free to add
new licensees if desired.
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5.
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Licenser
shall provide access to Master Pricing Agreements with suppliers as part
of the Licensed Know-how described in §1.3. The access to the
Master Pricing Agreements, identification of contacts associated with
suppliers and introductions to said suppliers shall be part of the handing
over procedure described in §2.4.
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§
2. DELIVERY AND ACCEPTANCE OF
TECHNICAL DOCUMENTS
1.
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Pursuant
to §1.3, the Licenser shall deliver and transmit the complete set of
general documents listed in Annex
1 (the "Licensed
Material") within the term set forth in
§ 7.1(a).
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2.
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The
technical documents delivered by the Licenser in accordance with §2.1
shall include a detailed list that contains the document name, number of
pages, etc. The Licenser shall warrant that the Licensed
Material is complete and accurate and that it represents all of the
technical documentation required by the Licenser to manufacture,
distribute and operate the Licensed Product (it being understood that the
Licensed Material relating to the FL2500 has been developed by
W2E).
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3.
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All
technical documents, drawings, diagrams and information provided by
Licenser to Licensee shall be written in
English.
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4.
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Licenser
shall deliver the Licensed Material to Licensee by hand delivery or by
courier. Licensee shall have the option to request that the
handing-over procedure of the Licensed Material occurs in Waigandshain or
at the Licensee's office. Each party shall bear its own costs
for such handing-over procedure. The Licensee will check and
accept the complete set of technical documents delivered by the Licenser
according to the technical documents list in Annex
1, and file them after confirmation of both parties by signature or
by telefax. In case the documents delivered by the Licenser are
found undetailed, lost or short of pages, the Licenser shall deliver again
such technical documents within 10 days after receiving a notice from
Licensee. The cost arose from this shall be borne by the
Licenser. To produce evidence, that documents handed over are
complete, a written confirmation by Licenser shall
suffice.
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5.
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The
Licenser warrants that the Licensed Product meets the technical standards
specified in Annex
1.
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6.
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The
Licenser shall support, supervise, train and certify the first three (3)
units of Licensed Product produced by the Licensee. The
obligations of the Licenser hereof are free of charge for a maximum of 25
working days. Licenser shall provide experienced personnel to
assist in the manufacturing and assembly of the first three units of
Licensed Product beyond the 25 days maximum at Licensee's request and
expense. In order to enable Licenser to coordinate personnel,
Licensee shall provide at least 6 weeks' notice prior to the scheduled
work.
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7.
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The
Licensee has the right to choose suppliers whom the Licensee believes to
be qualified and also has the right to produce the parts and components of
the Licensed Product by itself. However if the Licensee chooses
any products and components of a new supplier which have not been approved
by the Licenser, the Licenser shall not have any liability relating
thereto, except if such parts respect the specifications provided by the
Licenser. Should the Licensee wish to have the products and/or
components of a new supplier qualified by the Licenser, Licensee shall
send a notice to that effect to the Licenser and the latter shall do all
that is necessary to verify if such supplier conforms to the standards
required by Licenser, at the expense of the
Licensee.
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§
3. CONTRACT DURATION AND CONTRACT
TERMINATION
According
to the relevant laws of Germany, this contract becomes effective from the date
of signature of this contract ("Date Of Validity") and runs perpetually unless
there is a contract breach or missing financing within 1 months or a voluntary
termination by mutual consent of both parties.
After the
date of validity Licensee has the opportunity to complete financing and/or
finding investors for a period of maximum 1 month. The date financing
is completed is "Date of Execution" of this agreement. Reference is
made to § 7(1)a. In case financing is not reached in between 1 month
after Date of Validity Licensee agrees to pay for handling fee and loss of
profit of 100.000 Euro in between 30 days after 1 month after date of
validity. In this case the agreement becomes null and
void.
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1.
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The
contract is terminable without prior notice in case of a substantial
breach of the contract. A substantial breach occurs when one of
the contract parties breaches any of the essential contractual duties,
including without limitation, if:
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a.
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the
Licensee does not make full payment of all amounts owing within sixty (60)
days of Licenser delivering a written notice of amount
owing;
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b.
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Licenser
does not deliver all Licenser Know-how and technical documentation, in
accordance with § 1.3 and Annex
1, within sixty (60) days of receiving a written detailed and
substantial request from Licensee, subject to Licensee meeting its
obligations under §7;
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c.
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Licensee
is using the transferred Licenser Know - how to develop similar turbines
(2 - 3 MW output);
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d.
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Licensee
is manufacturing, distributing, or marketing- a similar turbine (2 - 3 MW)
of a competitor of the Licenser;
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e.
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Licensee
carries out any technical changes without Licenser's written confirmation
of acceptance (see § 4.2);
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f.
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§
5.2 is disregarded;
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g.
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Licensed
Know-how transferred is used contrary to this
Agreement;
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h.
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the
number of turbines sold is not correctly indicated to the
Licenser;
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i.
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a
contracting party becomes insolvent and/ or is adjudicated bankrupt or is
liquidated or is dissolved, or if a trustee or receiver of its property is
appointed, or is subject to any other action under local law based on its
inability to meets its financial obligations, the solvent party is
entitled to immediately terminate this
Agreement.
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j.
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a
competitor (see Annex 3) of Licenser or a company controlled by a
competitor of Licenser reaches a majority of Licensee, unless there is an
explicit written confirmation of Licenser, that Licenser accepts this
change of majority.
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2.
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In
case of the early termination of this Agreement due to the actions of
Licensee, the Licensee is authorized to complete the pending
orders. The Licensee will submit a list to the Licenser in such
a case outlining the orders still to be completed within four weeks after
termination of this Agreement. If this isn't carried out, it is
agreed that the Licensee has the obligation to stop any further use of the
license granted herein with immediate
effect.
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3.
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The
Licensee is, in case of termination of contract, also obliged to return
all original technical documents including manufactured copies, any notes
made thereof, as well as documents characterized as confidential, and to
confirm in writing to the Licenser that there are no remaining documents,
and that no additional copies or notes have been manufactured, passed on
and/or kept back by third parties. This isn't valid for
documents which are generally accessible or which are needed for the later
maintenance of the licensed product already sold. Such
documents may further be used by the Licensee - provided that the contents
and size of these documents is agreed to by the Licenser and
Licensee.
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4.
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Every
termination has to be carried out in writing, including by
FAX.
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§
4. OBLIGATION TO FURTHER DEVELOP
THE KNOW-HOW AND TO OBTAIN GOVERNMENTAL APPROVALS
1.
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Licenser
solely shall be obliged to develop the Licensed Know-how to the extent
necessary to manufacture and distribute the Licensed Product for the first
3 years of this Agreement. The costs will be taken over by the
Licensee. The Licensee may not carry out any unapproved
technical changes.
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2.
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For
all improvement and/or perfection made by Licenser to technology or
know-how of FL 2500 series wind turbine, Licenser shall be obliged to
allow Licensee to use the improvement and/or perfection free of
charge. Any improvement and/or perfection made by the Licensee
to technology or know-how of FL 2500 series wind turbine must be verified
and accepted by Licenser in writing before it can be
applied. Licenser shall complete such verification and
acceptance on a timely basis and all costs expended by Licenser for such
technical support will be borne by the
Licensee.
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3.
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Licensee
shall comply with any regulations within the Territory and obtain
governmental approvals within the Territory, if such are necessary for the
manufacturing, distributing or operating of the Licensed
Product.
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4.
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Licenser
shall provide all assistance reasonably necessary to obtain such approvals
at the expense of Licensee.
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§
5. OBLIGATION TO USE
KNOW-HOW
1.
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Licensee
shall use its best efforts to exploit the Licensed Know-how in accordance
with this Agreement.
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2.
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Licensee
guaranties that it and its affiliates, directly or indirectly, will not
use any technical know-how or license of competitors of the
Licenser. Disregarding this requirement may lead to termination
without prior notice at the option of Licenser, and the loss of any
further right to make use of the Licensed Know-how by the
Licensee.
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§
6. REPRESENTATIONS AND
WARRANTIES
1.
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Licenser
represents that it is not aware of any prior use-rights of third parties
which might affect the know-how transfer under this
agreement. Nevertheless there are (i) third parties bound by a
non-disclosure agreement that are not entitled to make use of the Licensed
Know-how; (ii) third parties outside of the Territory that may use the
Licensed Know-how outside of the Territory; and (ii) other licensees of
the Licenser which have licensed other products than the Licensed Product
within the Territory) and that it is also not aware of any third party
rights which could be violated by the use of the Licensed Know-how by the
Licensee in the Territory except as described in
§9.
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2.
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Licenser
warrants that it has obtained the rights to the Licensed Know-how (and no
third party has any right, title and interest in the Licensed Know-how
which is affecting the know-how transfer under this agreement, except as
described in § 6.1), and that such Licensed Know-how is of good quality
and identical with the know-how used by the Licenser for the conduct of
its business and that the Licensed Product produced in accordance with the
specifications set out in the Licensed Know-how will be merchantable and
fit for their purpose.
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3.
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Licensee
warrants that it will maintain the secrecy of the Licensed Know-how as
more specifically set forth in §10.
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4.
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Licensee
represents that to the best of its knowledge it has full authority to
enter into this Agreement and that all necessary corporate and
governmental actions have been
taken.
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5.
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Licenser
warrants that it will keep Licensee's proprietary information confidential
pursuant to §10, including without limitation all of Licensee's
proprietary information such as price lists, customer lists, and
technological know-how.
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§
7. TRANSFER FEE AND
ROYALTIES
In return
for the license granted in accordance with §1, Licensee agrees to make the
payments outlined in this section §7.
1.
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The
Licensee shall pay upon signing of this contract a transfer fee of FOUR MILLION
FIVE HUNDRED THOUSAND EURO (€4,500.000) for the complete value of
technology (value of license) (net payments not including
Territory's tax) in three payments as
follows:
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a.
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TWO
MILLION EURO (€2,000,000), latest 1 month after the date of validity of
this Agreement. With the payment the Execution Date of this
agreement is reached. Reference is made to
§3.
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b.
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TWO
MILLION EURO (€2,000,000) immediately prior to the delivery of Licensed
Know-how, which will take place within 45 days of this
payment. This payment has to be done not later than 6 months
after the Date of Validity.
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c.
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FIVE
HUNDRED THOUSAND EURO (€500,000) immediately prior to the commencement of
the first training program of Licensee set forth in §13.1, but not later
than 14 months after the Date of
Validity.
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2.
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To
ensure, that know how transfer is successful and for training a further
lump sum of ONE MILLION FIVE HUNDRED THOUSAND EURO (€1,500,000) has to be
paid immediately prior to the commencement of the first training program
of Licensee set forth in §13.1, but not later than 14 months after the
Date of Validity.
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3.
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To
ensure, that know how transfer is successful and for training a further
lump sum of TWO MILLION EURO (€2,000,000) has to be paid immediately prior
to the commencement of the first training program at Licensee's location
set forth in §13.3, but not later than 20 months after the Date of
Validity.
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4.
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Subject
to the minimum payments to be made in accordance with §7.5 for maintaining
the license and continuously support from licensor and except for the
first three units manufactured and assembled that Licenser supports,
supervises, trains and certifies as required in §2.6 (which are exempt
from the royalty payment requirements) Licensee shall pay additional
royalties as follows:
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a.
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€25,000.00
for the first 40 FL 2500 units of Licensed Product erected,
and
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b.
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€10,000.00
for the next 100 FL 2500 units of Licensed Product erected
thereafter.
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Payments
shall be made within thirty (30) days following erection of each unit of
Licensed Product in the Territory sold by Licensee. Erection here
means finished mounting of nacelle including rotor on tower.
5.
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The
total amount of royalties paid each year shall not be less
than:
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a.
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€250,000.00
EURO for the third year (and to be paid 1 month after this third year)
commencing after the first three exempt units are assembled and
sold;
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b.
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€500,000.00
EURO for the fourth year (and to be paid 1 month after this fourth
year);
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c.
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€650,000.00
EURO for the fifth year(and to be paid 1 month after this fifth
year);
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d.
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€600,000.00
EURO for the sixth year(and to be paid 1 month after this sixth year);
even in case the targets of each year are not
reached.
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e.
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After this, the Licensee will
not pay any transfer fee or royalties to the
Licenser.
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The
foregoing payments establish an aggregate value of this agreement of €
10,000,000 (€ 4.5 million value of license and another € 5.5 million over time –
ignoring the time value of money - with license fees for maintaining the license
and covering continuously improvements of technology and
documentation).
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6.
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Licensee
shall keep separate records relating to the manufacture and sale of units
of Licensed Product for each state and province of the
Territory. The Licensee shall report in writing to Licenser,
broken down for each respective state and province of the territory,
quarterly within 30 days after the end of a calendar quarter, how many
units of Licensed Product have been sold and what turnover was made by the
Licensee in the respective state and province of the
Territory. Licenser shall be entitled through its internal or
external certified public accountants to inspect at Licenser's expense the
books of account and other records, during reasonable business hours
without prior notice. The Licenser and/or its certified public
accounts will undertake their best efforts to minimize the interference of
the normal operations of the Licensee, during their approach to determine
the accuracy of the reporting and payments made by the
Licensee. In case that any inaccuracies are discovered during
such audit the Licensee is obliged to fully take over the auditing costs
of the Licenser. Additionally if any discrepancy is discovered
regarding the number of units of Licensed Product actually sold and the
number of units of Licensed Product sold reported to the Licenser,
Licensee shall promptly pay any unpaid royalties in accordance with
§7.4. If the number of turbines not correctly reported to
Licenser is more than 5, it shall be considered to be a substantial breach
of the contract in accordance with § 3 and may lead to termination of this
Agreement at the option of Licenser without further
notice.
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§
8. TAXES
1.
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The
Licensee shall pay all taxes, duties and other fees levied in connection
with the performance and execution of this Agreement by the government and
administration in the Territory in accordance with the tax laws in
effect.
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2.
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The
Licenser shall pay all taxes arising out of the performance of this
Agreement and levied on the Licenser outside the
Territory.
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3.
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All
turnover (sales) taxes, indirect taxes, duties and other fees which have
to be paid outside Germany based on the payments (§ 7) and penalties (§
14) shall be borne by the Licensee.
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§
9. THIRD PARTY
RIGHTS
If the
Licensee is alleged to infringe third party rights based directly or indirectly
on the exploitation of the Licensed Know-how, the Licensee shall immediately
inform the Licenser about this allegation. The Licenser shall defend
the Licensee of such infringement allegations if the Licensee does not choose to
defend itself and shall indemnify the Licensee for any costs, expenses
(including reasonable attorney fees), judgments and/or other losses with respect
to such allegation except if further to any judgment, the Licenser is cleared of
any liability and liability is imposed on Licensee, in which case the Licensee
shall be responsible for any costs incurred by the Licenser to defend itself and
Licensee. Notwithstanding the foregoing should the procedure take
place in the Territory, the Licensee shall be responsible for the complete
defense costs during the procedure: it being understood that the
Licenser shall reimburse such costs, expenses including reasonable attorney
fees, judgments or other losses to the Licensee within 30 days if Licensee is
held liable pursuant to the judgment.
§
10. MUTUAL CONFIDENTIALITY
1.
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Licenser
and Licensee agree to keep secret and not to communicate to third parties
the know-how or any other information, which is either marked
confidential, or which has to be deemed confidential from the
circumstances it is provided under or comes to the attention of the other
party. In general, the Licensed Know-how shall be kept
confidential with the exception of any documents/information that are
clear marked by the Licenser "for public use". This does not
restrict Licenser from entering into any contract with other Licensees
inside or outside of the Territory.
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2.
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This
obligation of confidentiality does not apply to any information which the
Licensee can prove by written documents that
it:
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a.
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is
generally available to the public through no fault of the Licensee,
or
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b.
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was
received by the Licensee under no obligation of secrecy from a third party
which did not receive it directly or indirectly from
Licenser.
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3.
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Upon
termination of this contract each party shall return to the disclosing
party all documents, files, or other evidence or copies thereof containing
secret information received by such
party.
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4.
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The
secrecy obligation shall survive the termination of this
contract.
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5.
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Licensee
shall not challenge the ownership of Licenser as to Licensed
Know-how. If Licensee challenges the secret nature of such
know-how, Licenser shall be entitled to terminate this Agreement without
further notice.
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6.
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The
Licensee acknowledges by signing this Agreement that at present the
technical know-how included in the Licensed Know-how was not known by
Licensee.
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§
11. ASSIGNABILITY AND SUBLICENSING
1.
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This
Agreement may not be assigned by either party without the prior written
consent of the other party nor may the know-how be sublicensed by Licensee
without the prior written consent of
Licenser.
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2.
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If
Licensee wants to set up joint ventures or to set up similar partnerships
with regard to production and sale of the contract plant, it requires the
prior written consent by Licenser. The same applies for any
production and assembly services contracted by Licensee. For
clarity, any companies for which prior written consent have not been
obtained from Licenser, are not licensed by Licenser nor are they allowed
to give sublicenses.
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3.
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Licensee's
successors, assigns, designees, agents or subcontractors are subject to
the terms and conditions of this Agreement and it shall be Licensee's
responsibility to ensure that said successors, assigns, agents or
subcontractors are fully informed of their obligations hereunder and set
forth below:
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a.
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The
know-how remains the property of Licenser and after termination of the
contract between Licensee and the contracting party; the authority to use
the Licenser Know-how is
terminated.
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b.
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The
contracting party must agree to the duty of confidentiality imposed by
this Agreement and any other applicable provisions of this Agreement,
including the right of the Licenser at its own cost to the look at the
business documents of Licensee that pertain to this contract by an
auditor.
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4.
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Neither
this Agreement nor any right granted hereunder may be assigned, extended
or otherwise transferred by Licensee, nor shall this Agreement or any
rights granted hereunder inure to the benefit of any trustee in
bankruptcy, receiver or other successor of Licensee whether by operation
of law or otherwise, without the written consent of Licensor, and any
assignment or transfer without such consent and approval shall be null and
void.
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§
12. TRADEMARK
The
Licensee is entitled to use the Licenser's trademark in the Territory, and is
entitled to use its own trademark on the Licensed Product. In every
case the trademark "F" should be used, even it is beside Licensee's
trademark.
§
13. TRAINING PROGRAM OF EMPLOYEES OF THE
LICENSEE
For to
ensure the quality and success of the training program, an order of around 10
machines is necessary, whereas during the training program five machines are
assembled at place of licensor and five machines are assembled at place of
licensee. The units according §2(6) are part of that
order.
1.
|
Upon
request of Licensee of a minimum of 30 days and provided Licensee has paid
the fees set forth in §7.1c, Licenser shall train a group of up to seven
technical engineers of Licensee at Licenser's plant in Waigandshain for up
to two weeks in order for the Licensee to operate its activities as a wind
turbines manufacturer. Licensee and Licenser shall designate
responsible and qualified employees for this task. The complete
training fee (excluding transportation, but including board and lodging)
is included in the total transfer fee payable in accordance with
§7.1c.
|
2.
|
Upon
request of Licensee of a minimum of 30 days and provided Licensee has paid
the fees set forth in §7.1c, the Licenser shall train a group of up to
seven employees of the Licensee on the Licensed Product, the Licensed
Know-how, assembly, test run, maintenance and dispatcher works at the
Licenser's plant in Waigandshain for four weeks. The complete
training fee (excluding transportation, but including board and lodging)
for the training at the Licenser's plant is included in the total transfer
fee payable in accordance with §
7.1(c).
|
3.
|
Upon
request of the Licensee of a minimum of 30 days, and provided Licensee has
paid the fees set forth in §7.3 the Licenser shall supervise the
assembling of five turbines at the Licensee's plant, at the option of the
Licensee, for up to four weeks (two supervisors) to ensure, that trained
people are qualified in a sufficient manner to assemble wind turbines
under own responsibility. Licensee and Licenser shall designate
responsible and qualified employees for this
task.
|
4.
|
Should
Licensee require additional training, Licenser shall provide such
additional training to Licensee upon reasonable request (reaction time
minimum of 30 days) by qualified employees of Licenser. The
Licensee shall pay the Licenser's costs associated with such additional
training (A minimum of 2.000,00
Euros/person/week).
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5.
|
Licenser
shall certify the qualified engineers, who are trained by Licenser, on the
Licensed Product.
|
6.
|
If
required, Licenser shall attend, on an expedited basis, at Licensee's
plant or Licensee's customer's site, to debug any special failure up to
five times after the Date of validity. Each time should be for
a period necessary to solve the special failure but not longer than 1
month. The relating costs are not included in the total
consideration transfer fee paid pursuant to § 7.1 and shall be borne by
the Licensee, except if such special failure is due to the Licensed
Know-how.
|
§
14. PENALTY FOR BREACH OF
CONTRACT
1.
|
Licensee
is obliged to indemnify Licenser for only actual damage, which Licenser
incurs as a result of a violation of this Agreement by
Licensee. Licensee is not obliged to reimburse Licenser for
special, indirect, consequential or incidental damages – except violation
according §11.4 and/or §3.1j of this agreement. In case §11.4
and/or §3.1j is violated, liquidated damages of the aggregated value of
this agreement, as outlined in §7.5 are payable by licensee within one
month after evidence of breach of this
agreement.
|
2.
|
If
Licenser breaches the provisions of this Agreement, Licenser shall bear
the corresponding obligations for such
breach.
|
3.
|
The
Licensee is liable for breaches of contract caused by the actions of its
employees, agents, subcontractors, vendors and/or
suppliers.
|
§
15. FORCE MAJEURE
Neither
Licenser or Licensee shall be liable to the other for any delay or failure to
perform the terms of this Agreement caused by acts beyond either party's
reasonable control including without limitation acts of God, war, vandalism,
epidemic, sabotage, accidents, fires, floods, strikes, labor disputes,
mechanical breakdown, shortages or delays in obtaining suitable parts or
equipment, material, labor, or transportation, acts of subcontractors,
interruption of utility services, acts of any unit of government or governmental
agency, or any similar or dissimilar cause. Action or accident of
Force Majeure includes flood, typhoon, earthquake, fire and other natural
calamity, war, rebellion, insurrection, epidemic, etc. If either
party experiences an effective Force Majeure accident, it should promptly notify
the other party, in any event within thirty (30) days, to describe the Force
Majeure and prove that the failure to fulfill the obligation is caused by the
Force Majeure entirely or partly. These documents of description
should be provided by a notarized affidavit. After sending the notice
of Force Majeure, the obligation of the party who puts forward the Force Majeure
can be deferred. This deferment only applies to the effect caused by
the Force Majeure in the area influenced by the Force Majeure in the Force
Majeure happening period. This party should spare no efforts to
perform its obligation to decrease the damage of the other party. If
the Force Majeure happening period is more than one hundred and twenty (120)
days, negotiation between both parties should be carried out according to the
influential extent to this contract by the Force Majeure to determine whether
this contract should be dissolved or whether the party who puts forward the
Force Majeure should be relieved from obligation of this contract partly, or
whether the party who puts forward the Force Majeure should need to delay the
performance of this contract.
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FLAG – license FL2500-07 05 23
§
16. SEVERABILITY
Should
any provision of this contract be or become invalid, ineffective or
unenforceable, the remaining provisions of this contract shall be
valid. The Parties agree to replace the invalid, ineffective or
unenforceable provision by a valid, effective and enforceable provision, which
economically best meets the intention of the Parties. The same shall
apply in case of an omission.
§
17. ENTIRE CONTRACT
1.
|
This
Agreement contains the entire agreement between the Parties and any
changes of this Agreement must be made in
writing.
|
2.
|
This
Agreement has been made in the English language and has been executed in 3
additional copies (4 in total). Although this Agreement may be
translated into German, the parties agree that the English version shall
govern.
|
3.
|
Any
disputes should be settled through the amicable negotiation between the
parties.
|
§
18. APPLICABLE LAW AND PLACE OF
JURISDICTION
1.
|
The
contractual relationship between the parties shall be governed and
construed in accordance with the laws of Germany, with the exception of
all wage and labor laws of Germany. Place of jurisdiction is
Germany.
|
2.
|
All
disputes between the parties shall be first settled by mediation, and only
in the case mediation doesn't solve the dispute, such dispute shall be
finally settled by way of arbitration (by a tribunal consisting of three
arbitrators) held in Frankfurt, Germany. If Licensee initiates
the arbitration, the case will be heard in Frankfurt, Germany; if Licenser
initiates the arbitration, it will be conducted in Beijing, VR
CHINA. The purpose of this would be to encourage settlement of
disputes outside of the courts. Any arbitration shall be
conducted in the German and English language and in accordance with the
ICC (International Chamber of Commerce, 00 xxxxx Xxxxxx 0xx, 00000
Xxxxx-Xxxxxx) Rules of Arbitration in force as from 1 January 1998 (cost
scales effective as of 1 July
2003).
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Confidential
FLAG – license FL2500-07 00 00
Xxxxxxxxx/Xxxx,
XXXXXXX, 0000, May 23rd
GAOKE
By
|
Fuhrländer
AG
|
|||
By
|
/s/ Xxxx
Xxxxx
|
By
|
/s/ Xxxxxx Xxxxx
|
|
Licensee
|
Licenser
|
|||
Name: Xx. Xxxx
Yunbo
Position: Vice-President
|
Name: Dr. -Ing. Xxxxxx
Xxxx
Position: Vice-President
|
|||
ANNEX
1: List of Documents
ANNEX
2: Provinces with Particular Rights
ANNEX
3: Definitions
ANNEX
4: Side Letter, 2007, May 23rd
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List
of documents
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Annex
1
|
A product and data structure
will be transferred. The turbine is structured into systems,
subsystems and components.
The
coding of documents, the file storage and the signal identification are handled
by a standard code according to the W2E system structure.
An
overall part list (configurator) will be
transferred. It includes all systems, subsystems and
components.
Single
components are listed if they are relevant as spare parts. Actual
part list of a turbine can be generated with the configurator.
A guideline will be
transferred.
This
guideline describes the design, coding, storage, distribution, audit and
archiving of documents.
The coding is oriented at the
systems of the turbine. The code includes the information about the
project, component, variant, document character, subject area, author,
sequential number, revision and language.
1
Concepts and general
·
|
General
Descriptions of FL2500-80, FL2500-90,
FL2500-100
|
·
|
Operating
system and safety concept
|
·
|
Danger
analysis and safety category according to the machine
directive
|
·
|
Load-minimised
and event-controlled safety system according to category
3
|
·
|
Operating
system concept
|
·
|
Lightning
protection, EMC, grounding concept
|
·
|
Communication
(interfaces, Ethernet, field bus, addresses,
telecommunication)
|
·
|
Power
curves
|
·
|
Electric
equipment and protection
|
2
Manuals
·
|
Assembling
manual
|
·
|
Erection
manual
|
·
|
Commissioning
manual
|
·
|
Service
manual
|
·
|
Instruction
manual incl. operating instruction
|
·
|
Manual
of the operating system
|
3
Results of measurements
·
|
Electrical
qualities
|
·
|
Noise
|
·
|
Power
curve
|
·
|
Loads
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4
Purchaser technical specifications and data sheets
Purchaser
technical specifications (PTSP) are used for complex systems. In case
of subsystems or components data sheets are applied.
·
|
PTSP
|
·
|
Energy
Transformation System (ETS)
|
·
|
Pitch
System
|
·
|
Data
sheets, e.g.
|
·
|
Rotor
blades
|
·
|
Main
bearing
|
·
|
Shaft
coupling - Gearbox
|
·
|
Parts
of ETS
|
·
|
Generator
|
·
|
Inverter
|
·
|
Transformer
|
·
|
Low
Voltage Unit
|
·
|
Yaw
system
|
·
|
Parts
of Pitch System
|
·
|
Backup
|
·
|
Pitch
Converter
|
·
|
Power
Supply AC DC
|
W2E-made
documents and Supplier's data sheets are coded and archived.
5
Constructions
All
systems, subsystems and components are described by documents which are needed
for purchase, assembly, transport, erection, commissioning, operation and
service. The documentation consists of part lists, drawings,
calculations, data sheets, manuals, circuit diagrams.
5.1
Constructions of machine parts
·
|
Machine
frame incl. generator support
|
·
|
Rotor
hub
|
·
|
Shaft
coupling incl. connection elements
|
·
|
Hatch
cover and other covers related to the rotor
hub
|
·
|
Nacelle
housing and fastening parts
|
·
|
Hub
spinner and fastening parts
|
·
|
Support
for sensors and position switches inside of the rotor
hub
|
·
|
Fastening
parts, brackets and cable support of the Pitch
System
|
·
|
Cable
support between rotor hub and
nacelle
|
·
|
Fastening
parts for slip ring
|
·
|
Fastening
parts for lubrication pinion, tubes and pumps of Pitch
System
|
·
|
Yaw
system incl. wind sensors
|
·
|
Fastening
parts for sensors and position switches inside of the
nacelle
|
·
|
Fastening
parts for lubrication pinion, tubes and pumps of yaw system, generator
bearings
|
·
|
Mount
for yaw sensor
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5.2
Detail construction
·
|
Protection
equipment
|
·
|
Nacelle
housing attachment parts (railing, wind sensor support, covers, and
fittings)
|
·
|
Climbing
accessories, access accessories for
nacelle
|
·
|
Cable
guides
|
·
|
Slew
rings and bearings
|
·
|
Generator
coupling
|
·
|
Rotor
bearing incl. lubrication, filtration and
piping
|
·
|
Cooling
system for Generator incl. piping, heat exchanger and
pumps
|
·
|
Cooling
system for Gearbox incl. piping, heat exchanger and
pumps
|
·
|
Cooling
system for Inverter incl. piping, heat exchanger and
pumps
|
·
|
Hydraulic-operated
rotor lock
|
·
|
Plug
& Play cable confections
|
·
|
Tools
and separate lifting accessories for assembling and
erection
|
5.3
Circuit diagrams
·
|
Low
Voltage Unit incl. of all sensors and actuators - Terminal
Box
|
·
|
Inverter
|
·
|
Pitch
System
|
6
Purchases
·
|
Configurator
(overall part list incl. of all
variants)
|
7
Final customers
·
|
Operating
instruction
|
·
|
Software
for visualisation
|
8
Marketing
A
planning file folder for the support of the marketing and sales department is
being created which contains documents with information for electrical
utilities, developers and government authorities. The file folder
will, among other documents, contain:
·
|
Power
curves, annual energy production
calculation
|
·
|
Electrical
data regarding grid interconnection
|
·
|
Lightning
protection, EMC, grounding
|
·
|
Occupational
safety and fire protection
|
·
|
Water
hazard materials
|
·
|
Transport
logistics
|
·
|
Erection
logistics
|
·
|
Obstruction
lighting national / international
|
·
|
Safety
data sheets of lubricants and
coolants
|
9
Training
·
|
Trainee
programs for assembly, erection and service by
FL
|
·
|
Support
for assembly, erection and tests
|
·
|
Documents
by W2E
|
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·
|
Practice
by FL
|
10
Others
·
|
Other
support as well as construction of tools for assembly, erection or test
equipment via separate contracts
|
11
Changes
The
technical descriptions and data presented above are subject to possible changes
and do not represent guarantees or binding obligations for the
manufacturer. The manufacturer assumes liability for technical
parameters, etc. only on the basis of explicit terms agreed upon in
contracts.
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FLAG – license FL2500-07 05 23
Territory
|
Annex
2
|
No
|
Province, municipality, autonomous region
|
Rights
|
||
1
|
Anhui
|
NESSCL-PR,
CM
|
||
2
|
|
|
||
3
|
Gansu
|
NESSCL-PR,
CM
|
||
4
|
|
|
||
5
|
Guizhou
|
NESSCL-PR,
CM
|
||
6
|
|
|
||
7
|
Hebei
|
ESR
|
||
8
|
|
|
||
9
|
Henan
|
NESSCL-PR,
CM
|
||
10
|
|
|
||
11
|
Hunan
|
NESSCL-PR,
CM
|
||
12
|
|
|
||
13
|
Jiangxi
|
NESSCL-PR,
CM
|
||
00
|
|
|
||
00
|
Xxxxxxxx
|
XXX
|
||
00
|
|
|
||
00
|
Shaanxi
|
NESSCL-PR,
CM
|
||
18
|
|
|
||
19
|
Shanxi
|
NESSCL-PR,
CM
|
||
20
|
|
|
||
21
|
Yunnan
|
NESSCL-PR,
CM
|
||
22
|
|
|
||
A
|
Guangxi
|
NSROOP
|
||
B
|
|
|
||
C
|
Ningxia
|
NSROOP
|
||
D
|
|
|
||
E
|
Tibet*
|
NSROOP
|
||
a
|
|
|
||
b
|
Chongging
|
NSROOP
|
||
c
|
|
|
||
d
|
Tianjin
|
NSROOP
|
||
Aa
|
|
|
||
Ab
|
|
Macao
|
|
NSROOP
|
ESR:
|
Exclusive
Selling Right, includes CM
|
NESSCL-PR:
|
Non-Exclusive
Selling Right in strong coordination with Licensor. This Right
will be terminated within 6 month after Licensor realizes a cooperation
with another Partner in this particular Province *). Within
a period of those 6 months, the Licensee has the Non-Exclusive Selling
Right as Provisional Right (PR). After this period a special
agreement required from the Licensor and its other partner is
indispensable to avoid immediately termination of all Rights of Licensee
in this Province *).
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FLAG – license FL2500-07 05 23
CM:
|
Components
Manufacturing Right in coordination with the Licensor. That
means manufacturing of single Components like generator, gearbox,
mainframe or similar, but not manufacturing of complete wind energy
converters or manufacturing or assembling of complete
Nacelles.
|
NSROOP:
|
There
is no! Selling Right in this Province*). Only
in case Licensee adduces, that he has a special project in proprietary
possession, Licensor can give a singular concession to deliver FL 2500
series Wind Turbines. It is not even allowed to make offers for
this Province*)!
|
|
*)
Province here also means municipality or autonomous region if this
applies
|
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Definitions
|
Annex
3
|
Capitalized
terms not otherwise defined in the body of the Agreement shall have the meanings
set forth below.
"Licenser" is
Fuhrländer AG and has the meaning set forth in the preamble to this
Agreement.
"Licensee" is LIAONING
GAOKE ENERGY GROUP, controlled by
or a wholly controlled AFFILIATE, as defined below, of
LICENSEE. LICENSEE has the responsibility to safeguard intellectual
property relating to wind turbines manufactured and sold by the LICENSEE
including the rights of intellectual property of third parties.
"Affiliate" means any
corporation, partnership, joint venture, limited liability company, or other
entity or Person which directly or indirectly controls, is controlled by, or is
under common control with LICENSOR or LICENSEE, respectively, or any of their
respective Affiliates on the Effective Date of this Agreement or at any time
during the Term of this Agreement, but only for so long as such relationship
exists. As used herein, the term "control" shall mean the ability to
direct the business of a company and shall be presumed in the case of ownership,
directly or indirectly, of shares of stock (in general having more than fifty
percent (50%) of the voting power) entitled to vote for the election of
directors in the case of a corporation, and the ability of direct the business
(in general more than fifty percent (50%) of the voting power) and interest in
profits in the case of a business entity other than a corporation.
"Competitor" means
manufacturer of wind turbines, such as – but not limited to - Vestas, Gamesa,
General Electric, Suzlon, Nordex, Repower, Enercon.
"Licensed Product" has
the meaning set forth in the preamble to this Agreement.
"Agreement" means this
Know-How License – FL2500 agreement, as it may be amended or supplemented from
time to time in accordance with its terms.
"Licensed Know-how"
has the meaning set forth in §1 of this Agreement.
"Territory" has the
meaning set forth in §1 and Annex 2 of this Agreement.
"Licensed Material"
has the meaning set forth in §2 and Annex 1 of this Agreement.
"Date Of Validity" is
date of signature and has the meaning set forth in §3 of this
Agreement.
"Date Of Execution" is
date of completed financing and has the meaning set forth in §3 of this
Agreement.
"Taxes" has the
meaning set forth in §8 of this Agreement.
"Trademark" has the
meaning set xxxxx xx §00 of this Agreement.
"Force Majeure" has
the meaning set xxxxx xx §00 of this Agreement.
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"ESR" has the meaning
"Exclusive Selling Right", includes Component Manufacturing Right as set forth
in Annex 2 of this Agreement.
"NESSCL-PR" has the
meaning "Non-Exclusive Selling Right in strong coordination with Licensor" and
is set forth in Annex 2 of this Agreement.
"CM" has the meaning
"Components Manufacturing Right" and is set forth in Annex 2 of this
Agreement.
"NSROOP" has the
meaning "No Selling Rights Or Offering in this Province" and is set forth in
Annex 2 of this Agreement.
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FLAG – license FL2500-07 05 23
Annex
4
Side
Letter to this Know How License Agreement
For more
detailed schedule and in order to clarify some details out of the Know How
License Agreement both parties also agree in the regulations according this Side
Letter:
1.
|
The
original Version of this Contract which was signed by Mr. Lv and Xx. Xxxx (GAOKE) on
11. April 2007 and by Mr. Fuhrländer and Xx. Xxxxx on
11. May 2007 remain valid in general, only this Side Letter is
added and the earlier dates are
changed.
|
2.
|
The
date of 23rd
May 2007 is the official signing date and the "Date of Validity" according
§3.
|
3.
|
According
to this, the parties agree, that the first net payment (§7.1.a) shall be
paid until 22nd
of June 2007.
|
4.
|
The
parties declare, that the regulation of §3.1.c, §3.1.d and § 7.6 only
remains valid, until the aggregate value of the license agreement of
10.000.000,- EURO is paid to
Fuhrländer.
|
5.
|
The
parties declare that the use of the brand name Fuhrländer is free of
charge.
|
6.
|
Fuhrländer
shall give written notice (FAX or scanned letter) of each payment two
weeks in advance to the terms of
payment.
|
7.
|
With
handing over documentation to GAOKE Fuhrländer shall start assisting GAOKE
with proposals for layout of assembling line, office and other facilities
as well as to assist in identifying qualification of staff needed at GAOKE
to start in the wind business.
|
8.
|
GAOKE
announces and Fuhrländer understand, that GAOKE meanwhile changed its name
and the new name is
|
Liaoning
Hi-Tech Energy Group Co. Ltd.
Waigandshain,
23rd May 2007
|
|
|
Xx.
Xxxx Yunbo,
Vice
President
(on
behalf of GAOKE)
(on
behalf of Liaoning Hi-Tech
Energy
Group Co. Ltd.)
|
Dr.-Ing.
Xxxxxx Xxxxx,
Vice
President
(on
behalf of Fuhrländer
AG)
|
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