甲方：××公司

乙方：香港××有限公司

雙方在遵守中華人民共和國政策、法律和特區有關規定的前提下，本著平等互利的原則，就來料加工各款塑膠五金玩具業務進行了充分協商，一致達成了如下合同條款：

一、雙方責任

1、甲方責任：

（1）提供有上蓋之廠房1棟2層850平方米，無上蓋場地500平方米，工廠管理人1名，生產工人首期80名、開業后十二個月增至200名，（禁止雇用不滿十六周歲的童工），如當地勞力缺乏，可到外地雇請，但須經深圳市有關部門批準，在合同期內代乙方加工生產上述產品，加工成品后交回乙方復出香港。

（2）提供現有水、電設備供加工生產之用，如需新安裝水、電設施，其費用由乙方支付。

（3）辦理來料加工、裝配有關業務的進出口手續及對工廠實行行政、財務和管理，不得把工廠以任何形式承包給任何單位和個人經營。

2、乙方責任：

（1）不作價提供加工上述產品及裝修廠房和建造 平方米簡易廠房所需的設備材料（詳見清單），分多批運抵甲方工廠，設備總值約415萬港元。

（2）不作價提供加工上述產品所需的原料、輔料和包裝物料，具體數量、規格在合同中訂明。

（3）工人如因工作不力（含工廠管理人員），經教育無效者，乙方有權向甲方提出調換，但禁止非法搜查甲方工廠工人的身體。

二、加工數量

第一年加工上述產品，加工費約43．2萬港元，從第二年開始的產量，應在前一年的基礎上有所增加，具體數量應在生產合同中訂明。

三、作價原則和工繳費

1、試產（培訓）期為二個月，在試產期內，工人每人每月工繳費暫定為450港元，（每月工作二十五天半，每天八小時）。

2、試產期滿后，采取按件計算方式，在堅持互利原則的基礎上、雙方應根據加工的品種、規格、款式和工藝繁簡不同進行定價，并在生產加工合同中訂明（為確保工人的合理收入，工繳費平均每人每月不低于550港元）。需要加班時，加班費另計，但每個工人每天加班時間最長不得超過三個小時。

3、甲方工人生產消耗的水、電費由乙方負責。

4、每月由乙方支付9，400港元給甲方，作為工廠管理費。

四、損耗率

1、試產期內的消耗率，實報實銷。

2、試產期后的損耗率，由雙方商定，并在生產合同中訂明。

五、來料和交貨期

1、乙方按生產合同規定的加工量，按月提供足夠數量的原輔材料和包裝物料。為使甲方工廠能正常生產，乙方必須在每批產品開始加工前七天，將所需的原材料和包裝物料運抵甲方工廠。除因人力不可抗拒之原因外，乙方來料不足，造成甲方工廠每月生產不足二十一天半，停工天數累計不得超過四天，否則，乙方應按在廠工人以停工天數計，每人每天補助生活費十五元港元，支付給甲方工廠。

2、為使乙方能開展正常的業務活動，甲方工人應按雙方協定的交貨期，按時、按質、按量交貨給乙方。如非人力不可抗拒原因，甲方不按時、按質、按量交貨，造成乙方的經濟損失，甲方應負賠償之責任，賠償數額可在具體合同中訂明。

3、由乙方提供的機械、通風、照明等設備及原輔材料、包裝物料，在甲方工廠由雙方進行交收登記，建立帳冊。甲方工廠加工后的成品，在甲方工廠經乙方驗收起運后，甲方不負產品規格、質量、短缺等任何責任。

六、結匯形式

工繳費及工人管理費每月結算一次，以D／P即期結匯或支票方式結匯，由甲方工廠會同深圳市上*區對外經濟貿易公司開具發票后，通過中國銀行*圳分行向乙方在香港開戶的銀行（____銀行、帳號____）辦理。乙方超過五天仍未付款給甲方，則按逾期天數，以當時香港*行利息一并付給甲方。乙方連續兩個月不結匯，甲方有權采取停止出貨或其它措施。

七、勞動保護及運輸與保險

1、工廠應做好勞動保護及安全工作，完善防塵、防煙、防毒設施，廠房保持通風光亮，內外環境衛生整潔，對有污染性項目，須經市環保部門批準，方能立項經營。

2、乙方提供的機械、通風、照明設備、原輔材料、包裝物件及甲方工廠加工后的成品運輸費用，均由乙方負責。

3、原輔材料、包裝物料的運進，成品運出及加工期間存放的機械設備、原料和包裝物料及操作機械的工人，均由乙方向中國人民保險公司深圳分*司投保。

八、技術交流

在設備運抵甲方工廠后，乙方應盡快派出人員進行安裝，甲方派出人員進行協助。從試產期開始，乙方應派出技術人員對甲方工廠進行技術培訓，直到工人能基本掌握生產技術，進行正常生產時為止。乙方技術人員的工資及一切費用由乙方負責，甲方提供生活上的方便。

九、合同期限

本合同經批準雙方簽字后，乙方須出示商業登記及銀行資信證明書交由甲方辦理營業執照經海關備案生效。有效期為三年，即從一九八八年二月二十一日至一九九一年二月二十一日。如要提前終止或延長本合同，需在三個月前通知對方，并經雙方協商處理終止或延長合同事宜。某方單獨提前終止合同，要負責補償對方的經濟損失。補償的辦法，應根據終止合同前半年內的每月平均工繳費為準，補償兩個月的工繳費總額給對方。

合同期滿后，不動資產（如廠房、宿舍）歸甲方所有，由乙方不作價提供的可動產（如機械、車輛、通風設備）歸乙方所有，并按海關和有關規定及時進行辦理核銷手續。雙方同意，在本合同經批準雙方簽約十天內，由乙方預付4000港元給甲方，作為履約保證金，從甲方收到履約金之日起兩個月內，乙方仍不投產開業，履約保證金即無條件歸甲方所有，同時，甲方有權廢約。如乙方能按時投產開業，該履約保證金可作工繳費抵付給甲方。

本合同正本一式五份，甲、乙雙方、海關、車管所、業務單位各一份，副本若干份，均具有同等效力。

本合同有如未盡事宜，雙方可隨時協商補充或修改，并報上級批準實施。

甲方：

法定代表：

乙方：

法定代表：

業務單位：

法定代表：

一九××年×月××日于中國××

CONTRACT FOR

PROCESSING & ASSEMBLYplace:Shenzhen, China

Date: Feb. 20, 1988Party A: ××CompanyParty B: ××Co. , L*d. 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: