First Tractor Company Limited Enters into the Research and Development Services Agreement
(5) Calibration instrument testing services: services including verification, calibration, testing, maintenance and modification for the calibration instruments of YTO Group. Term: From 1 January 2023 to 31 December 2023. Payment Terms: The payment under the Research and Development Services Agreement shall be settled in cash and the payment terms shall be specified in each separate contract to be agreed by the parties in accordance with the Research and Development Services Agreement. Pricing Standard for the Transactions under the Research and Development Services Agreement: Under the Research and Development Services Agreement, the fee of the Research and Development Services shall be determined in the following order: (1) the price of non-connected transactions of similar business between the Group and third parties who are independent of the connected parties;
(2) the price which consists of the reasonable cost of services provided by the Group plus gross profit of comparable unconnected transactions in the same category (including but not limited to those which are the same as or similar to the contents, work period and intellectual property rights in respect of design, research and development or testing projects, etc.); or (3) in the event that the above prices are not available or not applicable, the price shall be determined through negotiations by the parties on an arm's length basis.