Document:

EX-10.3

Exhibit 10.3

Form of Medical Equipment

Lease Agreement

Parties to the Agreement:

			
	 	 	 
	Lessee:
	 	Hospital      (hereinafter referred to as “Party A”)
	 	 	 
	Legal Representative:	 	 
	 	 	 
	Address:	 	 

			
	 	 	 
	Lessor:
	 	(hereinafter referred to as “Party B”)
	 	 	 
	Legal Representative:	 	 
	 	 	 
	Address:	 	 

Whereas:

	1.	 	For purposes of maintaining the leading position in respect of medical technology and
academic development, the Lessee plans to establish [     ] Centre (hereinafter referred to as the
“Centre”)/plans to expand [     ] Centre (hereinafter referred to as the “Centre”) and wishes to
install certain medical equipment as follows: [     ];

	2.	 	The Lessor is a professional company which is engaged in the lease of large medical equipment
as well as provision of relevant services;
	 
	 	 	Upon friendly consultation and based on the principle of equality and the mutual benefit,
with respect to the lease of the medical equipment (hereinafter referred to as the “Leased
Assets”) to Party A by Party B, both Party A and Party B have reached the following
agreements;

Article 1 Leased Assets

	1.1	 	Party B agrees to lease to Party A the following medical equipment                     .

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	1.2	 	The name, model number and specifications, total price, manufacturers, and etc., of the
Leased Assets will be subject to the results of the collective tender process. Upon the
completion of the collective tender process, both parties shall reach further agreement in
respect of the name, model number and specifications, total price, manufacturers, and etc., of
the Leased Assets in form of a supplemental agreement.

	1.3	 	To facilitate the performance of the lease, Party A shall be responsible for obtaining all
necessary procurement licenses, environmental evaluation and assessment, filing for approval
of charges and prices, and such other matters as required for operating the Leased Assets.
Party A shall also process and complete all procedures required for the use and installation
of the Leased Assets and construct and renovate the machine room required for the Leased
Assets pursuant to the provisions of regulations and rules of the government and the relevant
agencies.

Article 2 Use of the Leased Assets

	2.1	 	The Leased Assets shall be used at Party A’s [     ] Centre for purpose of [     ].

	2.2	 	The Leased Assets must be installed and placed at the location agreed by both parties within
the premises of Party A. Without the written consent of Party B, Party A shall not change the
location and operation environment of the Leased Assets.

Article 3 Ownership of the Leased Assets

	3.1	 	During the Lease Term, the ownership of the Leased Assets as listed in the Appendix to this
Agreement, including any parts and components, replacement parts, attached parts and auxiliary
parts of (or to be attached to) the Leased Assets, shall always belong to Party B. During the
Lease Term, Party A shall only enjoy the right to use the Leased Assets. Party A may not
sell, transfer, sub-lease, or set

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	 	 	mortgage over the Leased Assets or dispose the Leased Assets as investment, and may not
conduct any other actions that may infringe Party B’s rights and benefits. Otherwise,
Party A shall take the corresponding liabilities for breach of the Agreement.

	3.2	 	In the event that Party A is shut down, suspended, merged or acquired, changes the type of
its ownership or enters into bankruptcy, Party A shall have no right to dispose of the Leased
Assets; regardless of any Agreementual relationship entered into with any third party by Party
A or any changes of Party A’s status as a legal person, Party B’s ownership of the Leased
Assets shall in no event be affected.

	3.3	 	During the performance of the Agreement, Party B shall have the right to inspect the use and
condition of the Leased Assets and as long as such inspection would not affect the use of the
equipment, Party A shall make such inspection convenient. Without Party B’s written consent,
Party A may not disassemble any parts and components nor change the premises where the Leased
Assets are used. Party B shall have the right to mark the logo of the ownership onto the
Leased Assets. Party B (or its entrusted agent) shall have right to check, on a regular basis
or at any time, the use and condition of the Leased Assets which Party A shall facilitate.

	3.4	 	Given that the implementation of this Agreement would not be effected, Party B shall have the
right to set mortgage over the Leased Assets or transfer its beneficial interests to any third
party.

Article 4 Lease Term

	4.1	 	The Lease Term shall be                      years, commencing from the time
that all of the Leased Assets have
been in place and after                     
months of trial operation (the
specific date shall be confirmed
by both parties in writing).

	4.2	 	The Lease Term shall be fixed. During the Lease Term, Party A may not unilaterally suspend
or terminate the lease nor propose any requirement for making amendment hereto due to any
reasons.

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	4.3	 	Upon expiration of the Lease Term, both Parties may renew this Agreement after Party B has
conducted the relevant maintenance, upgrading and renovation for the Leased Assets based on
the then actual situation of the Leased Assets. However, Party B must guarantee that the
Leased Assets may be operated normally during the effective term of the renewed Agreement.

Article 5 Rental and Payment

	5.1	 	Rental calculation method:
	 
	 	 	From Year 1 to Year [       ],
the rental payment shall
be [      ] % of the
Revenue of the Leased
Assets on a monthly
basis;
	 
	 	 	From Year [       ] to
Year [       ], the rental
payment shall be [     ] % of
the Revenue of the Leased
Assets on a monthly
basis;
	 
	 	 	Revenue of the Leased
Assets = Total amount
received by using the
Leased Assets for
diagnosis (or treatment)
minus the Hospital’s
costs and expenses, which
include the Hospital’s
costs and expenses
arising from diagnosis
(or treatment) by using
the Leased Assets, wages,
bonus, welfare, overtime
charges, travel and
accommodation expenses of
the personnel of the
Centre, utility charges
for water and electric
power, costs of
consumptive materials,
costs for printing
materials, hospitality
expenses, academic
gathering expenses, R&D
cost, the repair and
maintenance costs of the
Leased Assets, costs of
office articles, fixed
line telephone charges,
expenses for settlement
of medical disputes,
insurance premium for the
Leased Assets, and the
cost of [      ].

	5.2	 	The rental payment shall be payable on a monthly basis. Party A shall transfer the amount of
the rental payment for the previous month to the account as designated by Party B prior to the
10th day of each month. The account information for the payment will be as
follows:

Name of the account:

Bank name:

Account number:

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	 	 	Simultaneously, Party B shall issue an official tax invoice to Party A.
	 
	 	 	During the effective term of this Agreement, Party A’s payment to the designated bank
account set forth above will be deemed performance of the payment obligation under this
Agreement. Without the consent of Party B, Party A’s payment to any other account or in
any other manner will not be deemed performance of its obligation hereof. In the event
that Party B needs to change its account number for receiving the payment, Party B shall
give advance written notice to Party A and Party A’s finance department.

Article 6 Performance Guarantee Deposit

	 	 	Within [      ] days after this Agreement becomes effective, Party A shall transfer a performance guarantee deposit in the amount of [       ] to the account designated by Party B. Within [       ] days upon termination or expiration of this Agreement, Party B shall return such deposit, without any interest accrued, to Party A after deducting the outstanding amount payable by Party
A under this Agreement.

Article 7 Rights and Obligations of Both Parties

7.1 Party A’s rights and obligations

	7.1.1	 	Party A shall issue a letter of confirmation regarding the rental payment to Party B every
month. Such letter of confirmation shall include the amount of the charges collected for the
Leased Assets, the Hospital’s costs and expenses, etc. Party A shall also make undertakings
as to the accuracy of all the data provided in such letter of confirmation.

	7.1.2	 	To provide the machine room and auxiliary rooms for the Leased Assets and to add in all such
auxiliary facilities and etc. as necessary; to provide the professional personnel including
experts, doctors, nurses and

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	 	 	technicians and to provide the convenient conditions in respect of the logistics
service.
	 
	7.1.3	 	To assist the supplier in handling the domestic equipment transportation, installation and
adjustment, trial and other matters.

	7.1.4	 	To be responsible for the treatment and other medical decisions of the patients and to deal
with the medical disputes arising from the Centre in due course.

	7.1.5	 	Party A will properly manage and safeguard the Leased Assets and designate
specially-assigned staff to take charge of the daily work for the operation of the Leased
Assets.

	7.1.6	 	To be responsible for processing and completing all procedures with the competent
supervising departments and the relevant authorities in relation to the approval of the
project, procurement permits, environmental evaluation and assessment, approval of charges and
prices and qualification for coverage by medical insurance, as well as all routine procedures
as required to be processed on a yearly basis.

	7.1.7	 	Party A may not use the Leased Assets for diagnosis and treatment free of charge. In case
of any required exemption or reduction of charges due to special reasons, such exemption or
reduction shall be approved and signed by both Parties.

	7.1.8	 	Party A may not effect early termination or amendment this Agreement with the excuse that
the principle of Party B has been recovered, or the revenue from the Leased Assets are
continually growing, or any leader of the Hospital has been changed.

	7.1.9	 	During the Lease Term, Party A may not separately operate any other project competing with
the Center either by itself or by cooperating with any third party.

7.2 Party B’s rights and obligations

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	7.2.1	 	To liaise with the supplier for delivering the Leased Assets as designated by Party A on a
timely basis and assist the supplier in installing, adjusting and testing the Leased Assets.

	7.2.2	 	To be informed of the status of the operation of the Leased Assets at all times based on the
financial information of income and expenses related to the operation of the Leased Assets
provided by Party A.

	7.2.3	 	Party B or Party B’s entrusted agent (including asset appraiser, accountant, and so on)
shall have the right to examine the use and the condition of the Leased Assets which Party A
shall facilitate.

	7.2.4	 	To assist the supplier in providing such necessary technical information as required for the
use of the Leased Assets.

	7.2.5	 	To assist the supplier in conducting daily repair and maintenance of the Leased Assets.

	7.2.6	 	To liaise with the professional management company for planning and organization of the
Centre’s academic promotion and guidance for operation and management.

	7.2.7	 	Party B shall be entitled to use the information and data generated from the treatment by
using the Leased Assets, such as the number of patients treated, the amount of charges
collected, the treatment plans and the treatment results of the patients, etc.

	7.2.8	 	After the completion of the Lease Term, under the same conditions, Party B shall have the
preemptive right to provide leasing with respect to any future similar project.

Article 8 Delivery, Examination and Acceptance of the Leased Assets

	8.1	 	Delivery, examination and acceptance: After the Leased Assets are delivered to the premises,
Party A shall examine the Leased Assets for acceptance pursuant to the content as provided in
the Appendix hereof. In the event that the Leased Assets fail to meet the agreed
requirements, Party A shall timely make a note on the delivery receipt and wait for Party B to
settle it. Party A shall be responsible

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	 	 	for safeguarding the Leased Assets as soon as the Leased Assets arrive at the location for
installation or operation.
	 
	8.2	 	Technical examination and acceptance: After Party A has made tests and adjustment upon
installation and has diagnosed or treated the first 30 cases of patients, if Party A confirms
that the Leased Assets comply with the technical requirements, Party A shall issue an
acceptance receipt to Party B within 5 days, wherein the delivery of the Leased Assets shall
be deemed completed. Failure to issue the receipt in a timely manner and in the absence of
any written rejection by Party A, the delivery of the Leased Assets shall be deemed properly
completed. The Lease Term shall commence and the charges collected from such 30 cases shall
be included into the revenue of the Center.

	8.3	 	In the event that the Leased Assets fail to comply with the requirements upon examination,
Party B shall assist the supplier in further handling.

Article 9 Loss and Damage of the Leased Assets and Third Party’s Damage

	9.1	 	During the Lease Term, Party B shall be responsible for purchasing insurance policies for the
Leased Assets and the beneficiary shall be Party B or any third party designated by Party B.
The insurance premiums shall be included as the Hospital’s costs and expenses.

	9.2	 	During the Lease Term, in case of any insurance incidents, Party A shall actively cooperate
with Party B for processing the claim with the relevant insurance company.

	9.3	 	During the Lease Term, in the event that the Leased Assets are lost or damaged due to Party
A’s fault, Party A shall, with all costs and expenses arising born by Party A, take one or
several of the following actions as determined by Party B:

(i) to restore or repair the Leased Assets so that the Leased Assets is able to be
used in completely normal manner;

(ii) to replace the parts, components or articles with the same model number and
the same function of the Leased Assets;

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(iii) Under the conditions of (i) and (ii), Party A shall continue to lease and use
the Leased Assets with its obligation of paying the rental payments unchanged.
During the period when the Leased Assets cannot be operated normally, Party A shall
pay Party B with the monthly rental payments equal to the average rental payments
in the three months prior to the loss or damage of the Leased Assets.

(iv) in case that the loss or damage of the Leased Assets is severe to the extent
that no repair can be conducted, Party A shall be liable for the loss of Party B
pursuant to the provision regarding the Agreementual breach.

	9.4	 	In the event that any third party (such as the patient or etc.) is injured or suffers any
loss or damage due to the reasons of the Leased Assets itself (such as the technical reasons
or quality defects, etc.), Party A shall, together with Party B, jointly claim and pursue such
damages from the seller of the Leased Assets.

	9.5	 	In the event that any third party (the patient) is injured or suffers any loss or damage due
to the improper use of the Leased Assets by Party A, Party A shall be responsible for such
liabilities.

	9.6	 	In the event that any third party (such as the patient, etc.) is injured or suffers any loss
or damage due to the force majeure (not due to the reasons of the Leased Assets itself or the
reasons of Party A), in principle, neither Party A nor Party B shall be liable for
compensation. Party A shall be responsible for taking precautions against such kind of “risk”
and will purchase insurance to cover such third party’s damage in such cases.

Article 10 Disposal of the Leased Assets Upon Expiry of the Lease Term

Upon the expiry of the Lease Term, if both parties will not
renew the Agreement, the Leased Assets shall be returned to
Party B.

Article 11 Breach of Agreement

	11.1	 	Both Party A and Party B shall perform the corresponding responsibilities and obligations in
accordance with the time schedules as provided in this Agreement.

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	 	 	In case of any beach of Agreement, the breaching party shall compensate the other party’s
economic loss.
	 
	11.2	 	Any delay in making rental payment by Party A shall not exceed two months. In case of any
such delay, Party A shall pay Party B with a daily default penalty equal to 0.05% of the
overdue amount, except where such delay is caused by the force majeure.
	 
	11.3	 	In case of any breach of Agreement as set forth below, Party B shall have the right to
terminate this Agreement and be entitled to a default penalty paid by Party A, calculated with
the formula below:
	 	 	Default Penalty = Remaining Lease Term (month) × monthly average rental obtained by Party B
in one year prior to the beach of Agreement ×150%

If the Lease Term is shorter than one year, the monthly average rental obtained by Party B
shall be deemed 3% of the purchase price of the equipment:

	11.3.1	 	any delay in making the rental payment exceeding two months by Party A;
	 
	11.3.2	 	unilateral early termination or modification of this Agreement by Party A in violation of
this Agreement;
	 
	11.3.3	 	unilateral disposal (including sale, sub-lease, removal or transfer and etc.) of the Leased
Assets in violation of this Agreement;
	 
	11.3.4	 	provision of false and untrue information regarding the Revenue of the Leased Assets and so
on, such that the rental payment that Party B collected becomes less than such amount to which
Party B should be entitled;
	 
	11.3.5	 	introduction of any similar medical equipment with similar functions to the Leased Assets
through any third party or cooperation with any third party to develop similar projects in
violation of this Leased Agreement;
	 
	11.3.6	 	suspension of normally providing medical services to the patients using the Leased Assets
for a period exceeding 30 days due to the man-made reasons of Party A; or severe damage or
loss of the Leased Assets due to improper use, intentional damage or careless storage by Party
A.

	11.4.	 	In case of any of the above mentioned breach or infringement by either Party A or Party B,
the breaching or infringing party shall be liable for all costs for lawsuits,

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	 	 	legal counsel fee and other expenses arising from the other party’s realization of the
creditor’s rights.

Article 12 Dispute Settlement

	 	 	Any and all disputes related to this Agreement shall be
resolved by both Party A and Party B through consultation. In
case that no settlement could be reached through consultation,
either party may file claim with the People’s Court as
designated by Party B.

Article 13 Appendix

	 	 	The Appendix to this Agreement is an integrated part hereof and
shall have the equal legal validity as that of the main text
hereof.

Article 14 Effectiveness of the Agreement

	 	 	This Agreement shall become effective upon being signed and
stamped by both Party A and Party B.

Article 15 Termination of the Agreement

	15.1	 	This Agreement shall automatically terminated upon the expiry of the Lease Term.

	15.2	 	All indebtedness arising from the performance of this Agreement by either Party A or Party B
will be terminated upon full repayment of all debts, including all outstanding rental
payments, default penalties, indemnification, and so on.

	15.3	 	In case of impossibility of performance of the Agreement or use of the Leased Assets due to
war, natural disaster, force majeure and other factors, this Agreement shall be terminated and
neither party shall be liable for or have any rights against the other party.

	15.4	 	Prior to the commencing of the Lease Term, under the following circumstances, Party B shall
have the right to terminate this Agreement without any liability:

	15.4.1	 	Party A fails to obtain the procurement permits for the medical equipment;

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	15.4.2	 	Party A fails to prepare and provide, on a timely basis, the premises for using the Leased
Assets.

	15.5	 	In the event that the government or the military adjusts its policy and issues any regulation
or document for prohibiting equipment lease within the country or within the military system,
resulting in this Agreement not being able to be performed, but without affecting the use of
the Leased Assets, Party A shall be responsible for coordination and negotiation. During such
period of coordination and negotiation, Party A shall be still subject to the obligation for
paying the rental on a timely basis. If no resolution can be reached upon negotiation, this
Agreement may be terminated in early manner, provided that, however, Party A shall make a
lump-sum payment for the remaining rental payments to Party B. The remaining rental payments
shall be equal to the amount of the original price of the Leased Assets minus the depreciation
for the years during which the rent has been paid (the number of years for calculating the
depreciation shall be equal to the Lease Term, without considering any remaining value):
	 
	 	 	Remaining Rental Payments = Original Price of Leased Assets (calculated based on the
bidding price) × (1- the number of years during which the rental payments has been paid ÷
Lease Term)

Article 16 Miscellaneous

	16.1	 	Both parties hereto have carefully read through all the terms of this Agreement. Reasonable
manner has been adopted to urge both parties to pay attention to the terms regarding exemption
or restriction on their responsibilities as provided herein. Per request of both parties,
explanation has been made in respect of the relevant terms.

	16.2	 	Both parties hereto have authorized their respective representatives to sign this Agreement.
All terms of this Agreement are all true meanings and representation of both parties and shall
have legal binding effect on both parties.

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	Article 17	 	The original of this Agreement and the Appendix hereto shall be prepared in four copies
of which Party A and Party B shall each hold two copies.
	 
	Article 18	 	With respect to any matters not covered herein, both parties may sign a supplemental
agreement in relation thereto. Any supplemental agreement and this Agreement shall have equal
legal validity.

Article 19    This Agreement is signed and executed on [day] [month], [200___].

(No main context follows)

Party A:      Hospital

Legal Representative (or Authorized Representative):

Party B:

Legal Representative (or Authorized Representative):

13EX-10.4

Exhibit 10.4

Form of Equipment Management Services Agreement

(Project [          ])

	 	 	 
	Party A:
	 	 
	 
	 	 
	Party B:

	 	[                    ] Hospital

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	Parties to the Agreement:
	 	 
	 
	 	 
	Party A:

	 	Company
	Legal Representative:
	 	 
	Address:
	 	 
	 
	 	 
	Party B:

	 	Hospital
	Legal Representative:
	 	 
	Address:
	 	 

Article 1 Precondition and Objective of this Agreement

	1.1	 	For purposes of fully using the internationally advanced [     ] system and continuously
enhancing the quality of the diagnosis (treatment) provided by Party B, and upon friendly
consultation between Party A and Party B, Party B agrees to entrust Party A to provide
operating service in respect to the target equipment and auxiliary products leased to Party B
by [     ] Company under the Medical Equipment Lease Agreement entered into by and
between [          ]. Party A shall charge the service fee pursuant to the agreed terms
hereof.
	 
	1.2	 	Unless otherwise specified, all relevant terms and explanations shall have the same meanings
of such terms and explanations as set forth in the Medical Equipment Lease Agreement.

Article 2 Term of Operating Service

Party B shall entrust Party A to provide the [          ] Centre with the operating service
with a term of [     ] years, commencing from the date on which this Agreement is signed and
executed to the date of termination of the Lease Term as provided in the Medical Equipment Lease
Agreement.

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Article 3 Content of Service

The services to be offered by Party B to Party A includes:

	3.1	 	Party A may send service personnel to provide onsite service.
	 
	3.2	 	Party A shall have the right to set up an account book for recording the number of cases of
diagnosis (or treatment), purchase and use of equipment and consumptive materials, as well as
other costs.
	 
	3.3	 	Party A shall have the right to be informed of the status of the operation of the Centre’s
equipment at all times based on the financial information of income and expenses related to
the operation of the Centre’s equipment as provided by Party B, and shall have the right to
engage an accounting firm to conduct audits on the book with which Party B shall cooperate.
	 
	3.4	 	Party A may examine the use and condition of the Centre’s equipment. Without the written
consent of Party A, during the term of this Agreement, Party B may not disassemble any parts
and components of the Centre’s equipment nor change the premise where the equipment is used.
	 
	3.5	 	Party A shall provide such necessary technical information for the use of the Centre’s
equipment and conduct appropriate marketing and promotional activities.
	 
	3.6	 	Party A shall provide recommendations regarding the employment and engagement of experts and
advisors for the Centre.
	 
	3.7	 	Party A shall assign professional personnel to examine the service quality.
	 
	3.8	 	Other service as agreed by both Party A and Party B.

Article 4 Service Fee

	4.1	 	The service fee shall be accounted for and settled on a monthly basis. The amount shall be
calculated as [     ] % of the total amount of the revenue generated by the [          ]
Centre’s equipment in a month net of the Centre’s own expenses (Operating Costs) as expressly
provided in the Lease Contract.
	 
	4.2	 	The Centre’s own expenses (Operating Costs): refers to costs for consumptive materials needed
for the operation of the equipment; the bonus of the personnel

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	 	 	directly related to the Centre; office expenses; media and advertisement fees, website
establishment fees; fees for necessary technical training, academic exchange and the cost
for hiring specialists and advisors; equipment repair cost; charges for water and electric
power, and other fees approved by both Parties. During the period of the management
service, the Centre’s own expenses (Operating Costs) for each month shall not exceed [     ]%
of the total amount of the revenue generated by the [          ] Centre’s equipment
for that month. In case that it exceeds [     ]%, it shall be calculated as [     ]%.
	 
	4.3	 	Party B shall transfer the service fee of the previous month to the account designated by
Party A prior to the 15th day of each month. The account number for making such
payment shall be as follows:

Name of the account:

Bank name:

Account number:

Article 5 Commitments of Each Party

	5.1	 	Party A shall be responsible for contacting the manufacturers for replacement of parts and
components, maintenance and repair of the equipment.
	 
	5.2	 	Party A shall be responsible for marketing, publicity, technology upgrades, and patient
education.
	 
	5.3	 	Party B shall be responsible for providing the premises, auxiliary medical equipment and
communication instruments used by the Centre; and providing professional personnel including
doctors, nurses and technicians. Party B shall also provides convenient conditions in
respect of the logistics service.
	 
	5.4	 	Party B shall be responsible for treatment and other medical decision of the patients and
independently take all responsibility relating to medical treatment.
	 
	5.5	 	Party B promises that during the period in which Party A is entrusted to provide the
management service, no excuse can be used for exemption or reduction in the treatment fee for
any patient who uses the equipment. During such period, if a patient pays the relevant fees
at a rate which is lower than the approved charging

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	 	 	rate, the differential shall be paid by Party B (except in the case of unanimous consent by
both Parties).
	 
	5.6	 	Party B promises that during the period in which Party A is entrusted to provide the
management service, Party B may not, through any third party, introduce into the Centre any
medical equipment which has similar function as the equipment managed by Party A. Otherwise,
Party A shall have the right to manage the operation for such equipment and shall collect all
the revenue generated from such equipment.
	 
	5.7	 	Party B promises that during the period in which Party A is entrusted to provide the
management service, Party B may not dispose of the equipment. In the event that the equipment
is to be disposed of because of national or local policy or regulation, such disposal shall be
implemented pursuant to the relevant provisions of Article 8.4 hereof.
	 
	5.8	 	Party B promises that during the period in which Party A is entrusted to provide the
management service, Party B may not terminate this Agreement early or amend this Agreement
with the excuse that the principle of the Lessor has been recovered, or the benefits from the
Leased Assets are continually growing, or any leader of the Hospital has been changed. Party
B shall not infringe Party A’s legal rights and interests under any early termination due to
any reason other than in accordance with the legal requirements.

Article 6 Equipment Service and Operation

For purposes of ensuring the normal operation of the equipment and the maximum effectiveness and
benefits, both Parties have reached an agreement in respect of the following items.

	6.1	 	An Equipment (or the “Centre”) Service Committee will be established and be referred to as
the “Service Committee” (which will not be qualified as a legal person). The Service
Committee shall consist of [     ] members and during the period of service, Party B shall
appoint [     ] members while Party A shall appoint [     ] members. The Service
Committee shall have one Director as nominated by Party B and shall have one Deputy Director
as nominated by Party

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	 	 	A. Each Party shall have the right to replace any of the members nominated by such party
at its discretion.

	6.2	 	The term of office of the members of the Service Committee shall be three years and may be
renewed upon expiry.
	 
	6.3	 	The Service Committee is the decision-making organization for work and has the following
duties:

	6.3.1	 	to convene the meetings of the Service Committee;
	 
	6.3.2	 	to determine the operating plan of the equipment;
	 
	6.3.3	 	to approve the annual financial cost and budget proposal of the equipment;
	 
	6.3.4	 	to approve basic rules and systems of service related to the operating service of the
equipment.

	6.4	 	The following items may become effective only after having been confirmed by both Party A and
Party B in writing and stamped with the corporate seal:

	6.4.1	 	to prepare and establish any and all articles of association, service system, human resource
and compensation system and financial system related to the operation of the equipment;
	 
	6.4.2	 	to approve the appointment and dismissal and remuneration of the Director and Deputy
Director and to establish any service organization;
	 
	6.4.3	 	annual financial budget and final accounts;
	 
	6.4.4	 	to handle any material medical disputes and medical incidents related to the equipment.

	6.5	 	The Service Committee shall convene the meeting at least once every year and the meeting
shall be convened and chaired by the Director of the Service Committee. All of the members
shall be notified in writing 10 days prior to the convening of the meeting (except for under
special circumstances). The members of the Service Committee shall prepare minutes for the
meetings. The members who participated in the meetings shall sign on the minutes. All meeting
minutes shall be filed and kept in records.
	 
	6.6	 	The Centre’s Director shall take responsibility for management under the leadership of the
Service Committee. The Center will have one Director, nominated by Party B and one Deputy
Director, nominated by Party A. Both the

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	 	 	Director and the Deputy Director shall report to the Service Committee and shall perform
the following duties:

	6.6.1	 	to manage all daily work and to organize the implementation of all resolutions of the
Service Committee;
	 
	6.6.2	 	to organize for implementation the annual operating plan;
	 
	6.6.3	 	to prepare the proposals for establishing internal service organizations;
	 
	6.6.4	 	to establish specific rules and systems for handling medical disputes and incidents;
	 
	6.6.5	 	to propose the appointment or dismissal of other personnel;
	 
	6.6.6	 	other duties as assigned by the Service Committee.

	6.7	 	None of the Director or member of the Service Committee, or the Director or Deputy Director
of the Center may deposit any revenue of the Center into any account opened in the name of
such individuals or any other person. None of the Director or member of the Service
Committee, or the Director or Deputy Director of the Center may set mortgage upon the Center’s
equipment for providing guaranty for the liability of any person.
	 
	6.8	 	In the event that when performing duties, the Director or member of the Service Committee, or
the Director or Deputy Director of the Center violates relevant laws, regulations or administrative
rules and caused any damages, he/she shall be responsible for any legal consequences and
compensation liability. And the Service Committee shall have the right to dismiss him/her.
	 
	6.9	 	The total number of employees shall be proposed by the Director of the Center and submitted
to the Service Committee for approval. Except as otherwise expressly provided by the Service
Committee, under the same conditions, the Center shall give priority to employing the staff of
the hospital and, as necessary, may publicly recruit employees through the hospital from
outside. Party B shall be responsible for processing all relevant procedures. In the event
that it is necessary to increase the total number of employees to meet the needs of the
business, the Director of the Center shall submit a written proposal to the Service Committee
and such increase shall be implemented after both the Director and Deputy Director of the
Service Committee sign and agree with the proposal.

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Article 7 Third Party Liability for Damages and Injury

	7.1	 	During the period of the management service, should any third person (patient) suffer from
any injury or damage due to the quality issue of the equipment, Party B shall be responsible
pursuing the matter with the manufacturer or the operator. Before the successful resolution
of the matter, all fees shall be borne by Party A.
	 
	7.2	 	During the period of the management service, should any third person (patient) suffer from
any injury or damage due to improper use of the equipment by Party B, Party B shall be
responsible for compensation.

Article 8 Breach of Contract

	8.1	 	In the event that Party B is late in making any payment of the service fee, it shall pay
Party A a daily default penalty equal to 0.05% of the overdue amount.
	 
	8.2	 	In case of any of the actions below on the part of Party B, Party A shall have the right to
terminate this Agreement. In addition to the default penalty, Party B shall immediately pay
Party A with all of the outstanding service fees whether or not such fees have become due for
payment. The monthly service fees not yet due for payment shall be calculated as [ ] % of
the average amount of the monthly revenue of the Centre’s equipment in the three months prior
to Party B’s breach of contract:

	8.2.1	 	if Party B delays in paying any monthly service fee owed to Party A for more than two
months;
	 
	8.2.2	 	if Party B maliciously prevents Party A’s service relating to the equipment or Party A’s
supervision and examination of Party B’s finance status;
	 
	8.2.3	 	if Party B maliciously provides Party A with false and untrue data of the costs of or the
revenue generated from the use of the equipment so that the service fee that Party A collected
becomes less than such amount that to which Party A is entitled;
	 
	8.2.4	 	if due to the malicious reason of Party B, the equipment stops providing normal medical
service to patients for more than 10 days;

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	8.2.5	 	if without the consent of Party A, Party B unilaterally terminates this Agreement early;
	 
	8.2.6	 	if without the consent of Party A, Party B unilaterally disposes of the equipment.

	8.3	 	In case of any of the actions below on the part of Party A, Party B shall have the right to
terminate this Agreement and Party A should compensate Party B for the loss of Party B wherein
the amount of compensation shall be equal to the amount of the service fees charged and
collected by Party A in the six months prior to such contractual breach;

	8.3.1	 	if Party A unilaterally terminates this Agreement;
	 
	8.3.2	 	if when the equipment fails to function, Party A fails to contact for repair or replacement
of the parts and components as agreed herein such that the equipment cannot be operated.

	8.4	 	In case that due to the national or local government’s or the military’s policy or regulation.
the Agreement needs to be terminated early, Party B shall make a lump-sum payment for all the
service fees not yet due for payment to Party A. The monthly service fee not yet due for payment
shall be calculated as [     ] % of the average amount of the monthly revenue of the Centre’s
equipment in the three months prior to Party B’s contractual breach.

Article 9 Signing, Effectiveness and Supplement of the Agreement

	9.1	 	This Agreement shall become effective upon being signed and stamped by both Party A and Party
B.
	 
	9.2	 	This Agreement shall be executed in two parts with each of Party A and Party B hold one copy.
Both copies of this Agreement shall have equal legal validity.
	 
	9.3	 	Any relevant supplemental agreement regarding the performance , liabilities for breach of
contract as well as termination of this Agreement that both Parties may have shall be subject
a Supplemental Agreement signed and executed by the Parties to this Agreement. Upon being
executed by the respective authorized

9

 

	 	 	persons of both Parties, the Supplemental Agreement shall become an integrated part hereof
and shall have the equal legal validity as that of the main text hereof.

Article 10 Dispute Settlement and Applicable Laws

	10.1	 	Any and all disputes related to this Agreement shall be resolved through friendly
consultation first by both Party A and Party B. Should no settlement be reached, any lawsuit
should be brought to the People’s Court of the jurisdiction where Party A is located. All
expenses and costs incurred from the lawsuit (including the costs of the court, the legal
counsel fee and other relevant costs) shall be borne by the losing party.
	 
	10.2	 	During the course of the legal proceedings, other parts of this Agreement shall continue to
be performed except for such part under dispute and the legal proceedings.
	 
	10.3	 	This Agreement shall be governed by the Law of the People’s Republic of China.

Article 11 Miscellaneous

	11.1	 	Within the scope of the government’s policy, the performance of this Agreement shall not be
affected by any change of the personnel of Party B or Party B’s competent supervising
departments, nor be affected by any other man-made factors.
	 
	11.2	 	In the event that the government’s policy restricts the performance of this Agreement, in
compliance with the laws and regulations and without prejudice to the vested benefits of both
Parties, Party A shall have the right to seek a new channel for cooperation and Party B
expresses its approval and will actively cooperate with Party A, except as provided in Article
8.4 hereof.
	 
	11.3	 	In the event that any terms hereof are deemed to be void and invalid, or illegal or cannot be
enforceable, the effectiveness, legitimacy and enforceability of the remaining terms of this
Agreement shall not be affected.
	 
	11.4	 	Both Party A and Party B promise that they shall treat as confidential the relevant
commercial content involved herein (including the content of the Agreement, etc.)

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	 	 	and guarantee that they shall not disclose the relevant content in any form (essay,
speeches, reports or any other channels).
	 
	11.5	 	The rights of both Parties as stipulated herein may be waived or changed only by written
express representation.
	 
	11.6	 	Both Party A and Party B have authorized their respective representatives to sign and execute
this Agreement. No amendment hereto can be made unless both Party A and Party B have
authorized their respective representatives to sign and execute a written form of documents,
except otherwise agreed herein.
	 
	11.7	 	Both Party A and Party B have fully understood and confirmed all of the content and terms
hereof. This Agreement is the true meaning and representation of both Parties.
	 
	11.8	 	This Agreement is signed and executed on [day] [month], [200___].

(No main context follows.)

Party A:

Legal Representative (or Authorized Representative):

Party B:

Legal Representative (or Authorized Representative):

11

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