甲方：××公司
乙方：香港××有限公司
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：
一、双方责任
1、甲方责任：

（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。

（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。
（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。
2、乙方责任：

（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。

（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。
（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。
二、加工数量
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。

三、作价原则和工缴费
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）。

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。
3、甲方工人生产消耗的水、电费由乙方负责。

4、每月由乙方支付9，400港元给甲方，作为工厂管理费。
四、损耗率
1、试产期内的消耗率，实报实销。

2、试产期后的损耗率，由双方商定，并在生产合同中订明。

五、来料和交货期
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。

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。

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。

六、结汇形式
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。

七、劳动保护及运输与保险
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。

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。

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。

八、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。
九、合同期限
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。
甲方：
法定代表：
乙方：
法定代表：
业务单位：
法定代表：
一九××年×月××日于中国××
contract for
processing & assemblyplace:shenzhen, china
date: feb. 20, 1988party a: ××companyparty b: ××co. , ltd. hong kongpartya and party b, according to the laws and policies of thepeople'srepublic of china and the relevant regulations of thespecialeconomic zones and the principles of equality and mutualbenefit,have held discussions relation to the processing and as-semblingof plastic toy products and have reached agreement onthefollowing contractual clauses:

1, responsibilities
(1) responsibilities of party a
1) party a shall provide factory spaceconsisting of two floorswith a total space of 850square metres, field of 500 square me-tres without covering, one factory management person andeighty

workers for the first phase. the number ofworkers shall be in-creased to 200 twelve months after operation. (employment ofteenages under 16 is prohibited). if the local labour is not suffi-cient, partya can employ workers from other places with the ap-provalof the relevant departments of shenzhen municipality.

within the contract term, party a shallprocess the above prod-ucts for party b which shallbe re-exported to hong kong.
2)the water supply and utility equipmentrequired for processingshall be provided by party a.if additional installations of waterand electricfacilities are required, the expenses thereof shall beborneby party b.
3) party a shall arrange all the neccessary import and export ap-provalsrequired for processing and assembly and provide ad-minittrationand accounting management for the processingplant.party a cannot contract party a's responsibilities to anyotherparty or individual in any way.

(2) responsibilities of party b
1 ) to provide the equipment with the totalvalue of 4. 15 millionhong kong dollars.
2 ) to provide the raw materials, indirectmaterials and packagingmaterials for processing theproducts. quantities and specifica-tions are to bespecified in separate contracts.
3) in the event any personnel, includingmanagement shows sub-standard performance and makes no improvement afterretrain-ing, party b shall have the right to requestparty a to replacesuch persons. however, any physicalsearch of the workers shallbe regarded as illegal andprohibited.
2. quantity of productsduringthe first year, the total processing fee shall amount to hk$ 432, 000. 00. fromthe second year, the quantity shall be in-creased. details shall be specifiedin separate contracts.
3. pricing &- salary
(1) the trial production (includingtraining) period shall be twomonths. during suchperiod, the workers shall be paid hk$ 450. 00 per month on the basis of 25. 5working days permonth and 8 working hours per day.
(2) after the trial production period, theworkers' payment shallbe calculated according toactual production quanities. on the ba-sis of mutual benefit, both parties shall consider the processingfee, which shall be specificedin separate contracts, according todifferent kinds ofproducts, specifications, styles and engineeringprocedures.in order to ensure the reasoriable income of the

workers, the worker's monthly salary shallbe maintained nolower than hk $ 550. 00. if overtimework is required, paymentshall be calculatedseparately. however,overtime shall not exceedthree hours a day.

(3) expenses for water and electricity inparty a's plant shall beborne by party b.
(4) every month party b shall pay hk , 400.00 to party afor management expenses.
4. proportion o products damaged
(1) during the trial production period,party b shall absorb thecost of products damaged.
(2) after the trial production period, theproportion of damagedproducts shall be mutuallyconsidered and decided by both par-ties and specified in separate contracts.
5. shipment of raw materials &-finished products
(1) every month, party b shall providesufficient raw materialsand packaging materialsaccording to the contracted processingvolume. toensure the normal production of party a's plant ,par-tyb shall ship such materials to the plant seven days before theproductionof each lot of products. except for reason of force ma-jeure,the plant shall operate for more than 21. 5 days. in caseproductionis held up for more than four days due to insufficientsupplyof raw materials, party b shall calculate the actual dayswhenproduction is shut down and pay to party a the workers'livingexpenses at the rate of hk $ 15. 00 per person per day.
(2) to ensure the normal operation of partyb's business activi-ties, party a shall deliver thefinished products to party b in ac-cordance with thetime of delivery, quality and quantity. except
for reason of force majeure,in case losses to party b are causeddue to party a'sfailure to make delivery as mentioned above,party ashall be responsible for the compensation. details ofsuchcompensation shall be mutually agreed upon in separatecontracts.
(3) both parties shall mutually inspect anddocument the equip-ment and materials provided byparty b, such as machinery, ven-tilation and lightingequipment and raw materials. after the fin-
ished products are inspected and shipped from the plant by partyb, party a shall be free of any responsibility inregard to specifi-cations, quality and quantity, etc.

6. method of paymentpaymentof workers' salary and management fee shall be settledoncea month by d/p, which shall be conducted through bank ofchinashenzhen branch by party b's bank in hong kong (______bank, account no. ___) inaccordance with the invoices issued
by party a and the shangbudistrict foreign economic &. tradecompany. incase party b's payment is delayed for more thanfivedays, party b shall be responsible for the interest according
to the bank's interest rate ; in casepayment is not settled for twoconsecutive months,party a shall have the right to suspend de-livery of the finished products ortake other measures.
7. labourprotection &. insurance
(1) the plant shall take safety measuresand protect the workersfrom dirt, smoke and poisonousmaterials. the factory shall bemaintained ventilatedand bright, and the surroundings clean andtidy.
(2) the transportation expenses for themachinery, ventilationand lighting equipment, rawmaterials, indirect materials, packag-ing materialsand the finished products shall be paid for by partyb.
(3) all insurance for the transportationand storage of the abovematerials, machinery andequipment and coverage of the workersoperating themachinery shall be arranged through the people'sinsurancecompany of china, shenzhen branch.
8. technical exchangeafterthe arrival of the equipment in the plant, party b shall dis-patchpersonnel to install such equipment,while party ashall ar-range personnel to assist the installation.when the trial produc-tion begins, party b shallprovide technical personnel to carry outthe traininguntil the workers have mastered the technology andtheproduction operates normally. party b shall be responsibleforthe technical personnel's salary and all related expenses, and
pary a shall provide daily necessities.

9. contract term
after this contract is signed and approved,party b shall presentto party a its commercialregistration and bank credit certifi-cate for party ato arrange business licence and customs regis-tration. the term of this contract shall be three years, e.g. fromfeb. 21, 1988 to feb. 21 , 1991. if eitherparty wishes to terminatein advance or extend thecontract, the responsible party shall in-form the other party three months inadvance so that both partiescan discuss and settlesuch a termination or extension. if eitherpartyterminates the contract before the term expires,the respon-sible party shall compensate the other party for thelosses. insuch case, the responsible party shall paythe other party as com-pensation the amount of twotimes the monthly processing fee.the fee will bebased on the average monthly fee of the previoushalfyear.

after the contract term expires, the realestate such as the facto-ry building and dormitorybuilding shall return to party a andthe machinery andequipment delivered by party b shall be re-turned to party b. customs clearanceprocedures shall be ar-ranged according to relevantregulations.
both parties agree that, within ten daysafter the contract issigned and approved, party bshall pay party a the amount ofhk $ 4, 000. 00 as itsguarantee to carry out the contract. if,within twomonths after party a's receipt of such amount, partybstill cannot arrange to start production, the amount shall beforfeitedto party a unconditionally and party a shall have therightto cancel the contract. if party b can start production ontime,the amount will be deducted from the processing fee.thiscontract is made out in five copies for both parties, the cus-toms,vehicle authority and the business department. theyshallhave the same force.if there are other issues notcovered in the contract, both partiescan discuss tosupplement or amend the contract and submit theresultsto relevant departments for approval.party a: partyb:
legal rep: legal rep:
commercial rep: