Embraco Innovation Award Regulation for 2013

These rules are designed to regulate the third edition of the Embraco Innovation Award,

promoted by the compressor business unit of WHIRLPOOL SA (hereinafter referred to as

"Embraco") with Beijing Embraco Snowflake Compressor Co., Ltd. (hereinafter referred to as

"Embraco Snowflake"). Embraco is a company specialized in cooling solutions and world leader

in the hermetic compressor market.

1 Purpose of the award

1.1 Embraco Innovation Award ("EIA") was established to stimulate, recognize and reward

innovative solutions in order to encourage the creative capacities and entrepreneurship of

students and professionals in order to promote development of new technologies and

innovative ideas, creation and inventions.

The third edition of the Embraco Innovation Award is divided into the following four categories

with first, second, and third place prizes for each of them:

- High Efficiency

- Low Cost

- Low Noise

- Intelligent Product

The first place winners from each category will compete for the Grand Prize. The prizes will thus

be divided:

Total Prize: US $69,000 Grand Prize: US$ 40,000 (Choose 1 from the 4 1st place winners)

Category Efficiency Cost Noise Intelligent

US $5000 * 3 1st place 1st place 1st place 1st place

US $2500 * 4 2nd place 2nd place 2nd place 2nd place

US $1000 * 4 3rd Place 3rd Place 3rd Place 3rd Place

Embraco Innovation Award is designed to recognize and showcase talents who have made

outstanding contributions to technological progress and industrial development to China’s

refrigeration industry.

1.2 Embraco and Embraco Snowflake are socially responsible companies concerned with public

welfare, and, by means of the Embraco Innovation Award, are willing to encourage the

entrepreneurial spirit of college students and professionals as well as the development of new

technologies and innovative ideas.

Embraco and Embraco Snowflake will apply and commercialize the innovative solutions that will

be generated from projects submitted to the EIA, which is in accordance to the law of the

People's Republic of China.

1.3 Embraco Innovation Award is only applicable to the territory of the People's Republic of

China, and operates under the laws of the PRC.

2 Participation

2.1 The 3rd edition of Embraco Innovation Award is opened to the following groups:

a) Students: officially registered in China University Degree or participating in a comparable

course (undergraduate).

b) Professionals: graduate students, doctoral students, professors and other students from

university or higher education with education certificate issued by a Chinese educational

institutions, entrepreneurs, freelancers, market professionals and researchers.

2.2 All candidates should be at least the age of eighteen (18) years of age until the registration

deadline of October 31st, 2014.

2.3 All candidates should be Chinese citizens, and submitted to the provisions of the official

documents of the Section 4.

2.4 Interns, employees and service providers of Embraco, Embraco Snowflake, Qingdao YIKANG

electronic control Electric Co., Ltd. and Whirlpool Corporation Group companies and their

immediate families are prohibited to participate in the competition.

3 Categories

3.1 The current edition of the Embraco Innovation Award focuses on the refrigeration

innovation ", and will collect projects for the following categories:

- High Efficiency

- Low Cost

- Low Noise

- Intelligent Product

3.2. To participate in the Embraco Innovation Award a project should a be technological

innovation related, but not limited, to the following engineering fields:

Thermodynamics: Research and knowledge generation on Thermodynamics applied to

the refrigeration market that leads to the following benefits: efficiency increase, noise

reduction, cost reduction and optimization of the refrigeration system through

o Refrigeration System components design optimization

o Refrigeration System components new designs

o Development of numerical tools

o Or any other solution that takes the system to achieve the four above

mentioned benefits.

Electric Motors: Research and knowledge generation applied to the refrigeration

market/area specially related with Fractional Horsepower electrical motors. The Focus is

innovative solutions that lead to the following Benefits: efficiency increase, noise

reduction, cost reduction and system optimization. Those benefits can be achieved

through:

o Components design optimization

o Components new designs

o Development of numerical tools

o New Topologies of electrical motors applied

o Or any other solution that takes the system to achieve the four above stated

benefits.

Materials: Research and knowledge generation applied to the refrigeration market/area

specially related with New Materials Development. The focus is innovative solutions

that lead to the following Benefits: efficiency increase, noise reduction, cost reduction

and system optimization.

Electronics: Research and knowledge generation applied to the refrigeration

market/area specially related with Electronics (Controls, Semiconductors, etc...). The

focus is innovative solutions that lead to the following Benefits: efficiency increase,

noise reduction, cost reduction and system optimization. Those benefits can be

achieved through:

o Components design optimization

o Components new designs

o Development of numerical tools

o New Topologies of electrical motors applied

o Or any other solution that takes the system to achieve the four above stated

benefits.

Mechanisms, bearings and lubrication: Research and knowledge generation applied to

the refrigeration market/area specially related with Mechanisms, Bearings and

Lubrication. The focus is innovative solutions that lead to the following Benefits:

efficiency increase noise reduction, cost reduction and system optimization. Those

benefits can be achieved through:

o Components design optimization

o Components new designs

o Development of numerical tools

o Components Dynamic Modeling

o Components Analysis and Simulation

o New Topologies of electrical motors applied

o Or any other solution that takes the system to achieve the four above stated

benefits.

Refrigeration systems: Research and knowledge generation on Thermodynamics applied

to the refrigeration market/area that leads to the following benefits: efficiency increase,

noise reduction, cost reduction and optimization of the refrigeration system through:

o Refrigeration System components design optimization

o Refrigeration System components new designs

o Development of numerical tools

o Or any other solution that takes the system to achieve the four above stated

benefits.

Technological innovation: the development of new ideas, new applications or improve existing

technology products focus on energy efficiency, low cost, low noise, intelligent product, mainly

related to refrigeration technology

4 Registration

4.1 Participation in the Embraco Innovation Award will be made by means of the

candidate’s enrollment and project application on the Embraco Innovation Award

website (www.embracoinnovationaward.com). Registration begins at 0:01 on April 8,

2013 and last until October 31st, 2014 at 23:59 (Beijing time).

Registration: April 8, 2013 to Oct 31, 2014.

Project submission: April 8, 2013 to Oct 31, 2014.

Fund application submission: April 8, 2013 to Oct 31, 2014.

Funding announcement: Nov 2014

Announcement of final project list: February 28, 2015.

Final evaluation and ceremony: April 2015

4.2 Candidates must fill out an online application at Embraco Innovation Award website,

and follow the instructions to complete the registration.

4.3 Candidates may submit one or more items in one or more categories.

4.4. Candidates can register their projects in two ways:

a) Individually; and / or

b) In a group, with up to three people (not including the professor advisor).

4.4.1 Student registration

4.4.1.1 Students (refer to the provisions of Section 2.1.) may present projects in his/her

own name or on behalf of a group of up to three candidates. If registered, the students

must specify the name of the group as well as the name of the leader of the group (see

Section 5.3 of this rule).

4.4.1.2 The group may be formed by students from different schools and / or from

different majors.

4.4.1.3. Student candidates must be enrolled in an educational institution on June 28,

2014.

4.4.1.4 Whether competing individually or in a group, students can be assigned only one

advisor, who is not considered to be a member of the group.

4.4.1.5 The advisor will guide students in research projects, but students must register

the project independently.

4.4.1.6 After filling in the application form, registered students should follow the

procedures from the Embraco Innovation Award website to submit the following

documents at the time of registration:

- Public Security Bureau issued identity cards.

- Student ID card issued by the educational institution indicated in the application.

- Written permission from the university stating whether the candidate is enrolled and

authorizing him/her to participate in the Embraco Innovation Award.

- Written statement from the university confirming that the entries are non-service

invention or service invention, see the rules as defined in 14. (Mandatory only for final

projects).

4.4.2 Professor advisor

4.4.2.1 The advisor can provide guidance for one or several projects. He/she can also

apply with his/her own project, as long as it meets the registration requirements of

students or professionals.

4.4.2.2 The advisors should submit the following documents:

- Proof that he/she works in the educational institution where at least one of its student

has at least one entry in the Embraco Innovation Award project.

- Written consent from the university declaring that he/she is authorized to be an

advisor in the Embraco Innovation Award. (Mandatory only for final projects).

- A written certificate from the university informing whether the project that he/she is advising is or is not connected somehow to his/her service projects at the university. (Mandatory only for final projects). 4.4.3 Professional registration: 4.4.3.1 Professionals (see the provisions of Section 2.1.) can be an individual or a group of up to three candidates submitting a project. Registered in groups, you must specify the group leader (see Section 5.3 of this rule). 4.4.3.2 After filling in the application form, the registered professionals shall follow the procedures published on the Embraco Innovation Award website and shall submit the following documents at the time of registration: - Public Security Bureau issued identity cards. - University diploma or equivalent degree completion certificate from a university or a school in China. - A written permission from the professional’s employer authorizing him/her to participate in the Embraco Innovation Award. (Mandatory only for final projects). - A written declaration from the employer of the professional confirming whether the project is a non-service invention creation or a service invention creation as defined in Item 14. (Mandatory only for candidates from final projects). 4.5 After the enrollment, the group may not be changed, except upon the previous and express approval of the Judging Commission of Embraco Innovation Award. Any eventual desistance must be informed by the leader of the project. 5 Projects submitted 5.1 Different candidates cannot submit the same project. Should this be verified by the Vetting

Committee, then the projects submitted will automatically lose the accrediting status.

5.2 Project submission

5.2.1 Candidates will be in charge of receiving and submitting all of the information to the

Judging Committee, such as:

a) clarification of possible doubts, submission of all the necessary documents required by the

Judging Committee and eventual receipt of the award referring to the EIA.

b) registration and submission of the project by means of the Embraco Innovation Award’s

website.

c) if applicable, forward documentation of the advisor professor as referred to in Section 4.4.2.2.

d) clarification of possible doubts by means of contact available at the site, exclusively in

Mandarin or in English language.

5.3 Group registration

5.3.1 The group must specify its leader who shall be responsible for all the information

communicated to the Judging Committee, such as:

a) Enrollment and submission of project by means of the Embraco Innovation Award website.

b) Appointment of project leader on the application form.

c) If applicable, forwarding the advisor documentation (see Section 4.4.2.2).

d) Clarification of possible doubts by means of contact available at the site, exclusively in

Mandarin or in English language.

e) Representing the group in any matter related to the Embraco Innovation Award.

g) Conveying to the group all the information regarding the Embraco Innovation Award.

6 Project preparation requirements

6.1 The following requirements shall be satisfied for participation in the EIA, under penalty of

annulment of the project:

6.1.1 Project proposals shall be submitted following the requirements shown in either English or

Chinese.

6.1.2 High Efficiency Category

6.1.2.1 Home (submitted in English or Chinese and hereinafter referred to as the cover) must

include: the title of the project and the name of the candidates(s) and the advisor professor (if

there is one), name of the applicant’s registered educational institutions.

6.1.2.2 the second and third pages (submitted in English or Chinese) must only provide an

introduction of the project, with the following information:

a) the title of the project.

b) the purpose of the project.

c) the targets to be achieved and the problem to be solved.

d) the technical description of the project.

e) the project’s impact and results.

f) an answer to the question: "Why should Embraco and Embraco Snowflake selected my project

as a winning project and why should it implement my project?"

6.1.2.3 other pages (submitted in English or Chinese) must contain project development and in-

depth analysis.

6.1.2.4 must be of A4 paper format, the top and bottom sides and right margins of 2 cm, 3 cm

left.

6.1.2.5 Zhu Wen format: font as Arial 12, 1.5 line spacing.

6.1.2.6 If needed, the candidate can submit diagrams, illustrations and charts on A3 and A4

paper.

6.1.2.7 All bibliographies and documents necessary should be included in the works.

6.1.2.8 All of the above documents must be included in up to 15 pages and must be an

electronic document.

6.1.2.9 The document must be sent in PDF format and its size should smaller than 3Mb.

6.1.3 Low Noise Category

6.1.3.1 Home (submitted in English or Chinese and hereinafter referred to as the cover) must

include: the title of the project and the name of the candidate(s) and the advisor professor (if

there is one), name of the applicant’s registered educational institutions.

6.1.3.2 the second and third pages (submitted in English or Chinese) must only provide an

introduction of the project, with the following information:

a) the title of the project.

b) the purpose of the project.

c) the targets to be achieved and the problem to be solved.

d) the technical description of the project.

e) the project’s impact and results.

f) an answer to the question: "Why should Embraco and Embraco Snowflake selected my project

as a winning project and why should it implement my project?"

6.1.3.3 other pages (submitted in English or Chinese) must contain project development and in-

depth analysis.

6.1.3.4 must be of A4 paper format, the top and bottom sides and right margins of 2 cm, 3 cm

left.

6.1.3.5 Zhu Wen format: font as Arial 12, 1.5 line spacing.

6.1.3.6 If needed, the candidate can submit diagrams, illustrations and charts on A3 and A4

paper.

6.1.3.7 All bibliographies and documents necessary should be included in the works.

6.1.3.8 All of the above documents must be included in up to 15 pages and must be an

electronic document.

6.1.3.9 The document must be sent in PDF format and its size should smaller than 3Mb.

6.1.4 Low Cost Category

6.1.4.1 Home (submitted in English or Chinese and hereinafter referred to as the cover) must

include: the title of the project and the name of the candidate(s) and the advisor professor (if

there is one), name of the applicant’s registered educational institutions.

6.1.4.2 the second and third pages (submitted in English or Chinese) must only provide an

introduction of the project, with the following information:

a) the title of the project.

b) the purpose of the project.

c) the targets to be achieved and the problem to be solved.

d) the technical description of the project.

e) the project’s impact and results.

f) an answer to the question: "Why should Embraco and Embraco Snowflake selected my project

as a winning project and why should it implement my project?"

6.1.4.3 other pages (submitted in English or Chinese) must contain project development and in-

depth analysis.

6.1.4.4 must be of A4 paper format, the top and bottom sides and right margins of 2 cm, 3 cm

left.

6.1.4.5 Zhu Wen format: font as Arial 12, 1.5 line spacing.

6.1.4.6 If needed, the candidate can submit diagrams, illustrations and charts on A3 and A4

paper.

.

6.1.4.7 All bibliographies and documents necessary should be included in the works.

6.1.4.8 All of the above documents must be included in up to 15 pages and must be an

electronic document.

6.1.4.9 The document must be sent in PDF format and its size should smaller than 3Mb.

6.1.5 Intelligent Product Category

6.1.5.1 Home (submitted in English or Chinese and hereinafter referred to as the cover) must

include: the title of the project and the name of the candidate(s) and the advisor professor (if

there is one), name of the applicant’s registered educational institutions.

6.1.5.2 the second and third pages (submitted in English or Chinese) must only provide an

introduction of the project, with the following information:

a) the title of the project.

b) the purpose of the project.

c) the targets to be achieved and the problem to be solved.

d) the technical description of the project.

e) the project’s impact and results.

f) an answer to the question: "Why should Embraco and Embraco Snowflake selected my project

as a winning project and why should it implement my project?"

6.1.5.3 other pages (submitted in English or Chinese) must contain project development and in-

depth analysis.

6.1.5.4 must be of A4 paper format, the top and bottom sides and right margins of 2 cm, 3 cm

left.

6.1.5.5 Zhu Wen format: font as Arial 12, 1.5 line spacing.

6.1.5.6 If needed, the candidate can submit diagrams, illustrations and charts on A3 and A4

paper.

on A3 or A4 paper, on both sides of the top and bottom, and right margins of 2 cm, 3 cm left,

and with the other parts of the work must be as the same electronic documents be submitted.

6.1.5.7 All bibliographies and documents necessary should be included in the works.

6.1.5.8 All of the above documents must be included in up to 15 pages and must be an

electronic document.

6.1.5.9 The document must be sent in PDF format and its size should smaller than 3Mb.

6.2 Embraco and Embraco Snowflake shall not be responsible for damaged documents. If the

Judging Committee receives a damaged electronic document, the jury will notify the candidates

during registration so the candidate can re-submit electronic documents (see the provisions of

section 12), otherwise the project will lose accredation.

7 criteria

7.1 The energy efficiency category shall be selected based on the following criteria:

7.1.1 the originality and the level of the innovation

New knowledge and the relevance of the new knowledge.

7.1.2 the impact of the project on energy efficiency and results

The extension of the contribution of the project within its scope, a more efficient energy use.

7.1.3 Technical Quality

Used methods and information clear and level of detail.

7.1.4 The potential for real applications (feasibility) and market potential.

The degree of feasibility in order for Embraco or Embraco Snowflake to implement the project

under the laws of the PRC be it in the short on long-term.

7.1.5 The project's social and environmental impacts

Project to reduce the use of natural resources (renewable and non-renewable), to reduce the

generation of waste, and the related impact on Green operation and green products, as well as

the contribution may provide a better quality of life.

7.1.6 meet the other requirements described in this rule.

7.2 the low noise category shall be selected based on the following criteria::

7.2.1 the originality and the level of the innovation

New knowledge and the relevance of the new knowledge.

7.2.2 the impact of the project on low noise and its results

The extension of the contribution of the project within its scope: crease a more silent product.

7.2.3 Technical Quality

Used methods and information clear and level of detail.

7.2.4 The potential for real applications (feasibility) and market potential.

The degree of feasibility in order for Embraco or Embraco Snowflake to implement the project

under the laws of the PRC be it in the short on long-term.

7.2.5 The project's social and environmental impacts

Project to reduce the use of natural resources (renewable and non-renewable), to reduce the

generation of waste, and the related impact on Green operation and green products, as well as

the contribution may provide a better quality of life.

7.2.6 meet the other requirements described in this rule.

7.3 low cost category shall be selected based on the following criteria:7.3.1 the originality and

the level of the innovation

New knowledge and the relevance of the new knowledge.

7.3.2 the impact of the project on low cost and its results

The extension of the contribution of the project within its scope: crease a product that has a

better cost.

7.3.3 Technical Quality

Used methods and information clear and level of detail.

7.3.4 The potential for real applications (feasibility) and market potential.

The degree of feasibility in order for Embraco or Embraco Snowflake to implement the project

under the laws of the PRC be it in the short on long-term.

7.3.5 The project's social and environmental impacts

Project to reduce the use of natural resources (renewable and non-renewable), to reduce the

generation of waste, and the related impact on Green operation and green products, as well as

the contribution may provide a better quality of life.

7.3.6 meet the other requirements described in this rule.

7.4 refrigeration system category shall be selected based on the following criteria::

7.4.1 the originality and the level of the innovation

New knowledge and the relevance of the new knowledge.

7.4.2 the impact of the project on low noise and its results

The extension of the contribution of the project within its scope: crease a smarter product.

7.4.3 Technical Quality

Used methods and information clear and level of detail.

7.4.4 The potential for real applications (feasibility) and market potential.

The degree of feasibility in order for Embraco or Embraco Snowflake to implement the project

under the laws of the PRC be it in the short on long-term.

7.4.5 The project's social and environmental impacts

Project to reduce the use of natural resources (renewable and non-renewable), to reduce the

generation of waste, and the related impact on Green operation and green products, as well as

the contribution may provide a better quality of life.

7.4.6 meet the other requirements described in this rule.

8 Phases of the award

Embraco Innovation Award will be divided into five stages, namely:

8.1 Phase 1: Candidate’s registration

8.1.1 In order to participate in the award, candidates must comply with the existing rules as set

forth in the present regulation and submit his/her application by means of the Embraco

Innovation Award website according to the instructions set forth therein. Registration period

shall be from 0:01 on April 8th 2013 until June 28, 2014 at 23:59 (Beijing time).

8.2 Phase 2: Project submission

8.2.1 Each project must be submitted according to the instructions set forth on the Embraco

Innovation Award website. Registration period shall be from 0:01 on April 8, 2013 June 28, 2014

at 23:59 (Beijing time).

8.3 Phase 3: pre-selection

8.3.1 All projects submitted shall be analyzed by the Judging Committee (see item 7) according

to the judging criteria. The jury will select the top three project from each criteria in accordance

with the provisions of Rule 7 standards (of 12 items).

8.3.2 The end of the pre-selection phase, there will be a maximum of twelve (12) projects (three

in each in each category) selected to participate in the subsequent phase.

8.3.3 The best three projects from each category will be selected by the pre-selection stage and

will be referred to as final projects.

8.3.4 All candidates with regularly enrolled projects will be informed about their qualification or

not based on the data contained in the application. As for group projects, the team leader will

receive such notice and shall notify the other members of the group.

8.3.5 The first-place winner in each category will enter the "Grand Prize" competition.

8.4 Stage 4: final presentations and awards

8.4.1 Embraco and Embraco Snowflake will be held to introduce the candidates in the final

project activities, the final decision will then be announced to the winner of the award.

8.4.2 Embraco and Beijing Embraco Snowflake will be responsible under Rule 10 for all

candidates’ travel and accommodation costs.

8.4.3 The author of each final project shall personally present it to the Judging Committee. In

case of a group candidate, the team leader shall present the project.

8.4.4 Applications shall be submitted in either English or Putonghua.

8.4.5 Candidates may use audio and visual resources to present the project. If choosing to use

audio and visual resources, the candidate should notify the organizers of the event so that they

can provide the necessary equipment.

8.4.6 Embraco and Beijing Embraco Snowflake Compressor Co., Ltd. reserve the right not to

provide audio and visual resources. Items that cannot be provided will either be published on

the Embraco Innovation Award website or announced to final project authors.

8.4.7 The presentation of each project should not last more than 15 minutes.

8.4.8 After the presentation, the Judging Committee debates, makes questions and reviews the

project for a maximum of fifteen (15) minutes. The presentation shall be in Mandarin or English.

8.5 The Vetting and Judging Committees can increase or decrease the number of final projects if

they decide so.

9 Judging Committee

9.1 the projects presented will be selected by a prestigious panel of judges composed of

Embraco and Beijing Embraco Snowflake Compressor Co. professionals, as well as prestigious

market influencers, associations and members of the public institutions. The results of the

assessment will be used solely for the Grand Prix final project award’s reference.

9.2 Vetting Committee has the following duties: a) to assess whether or not the project meets the correct requirements. b) to select the final projects (see Section 8.3 and 8.4). 9.4 The Judging Committee shall have the following duties: 9.4.1 follow-up and evaluate the "final projects"; 9.4.2 select the winning candidates. 9.5 Candidates are not allowed at any stage of the Embraco Innovation Award to complain or mention objection to the award. 10 Embraco Beijing Embraco Snowflake Compressor Co., Ltd. and Embraco bear the total cost of this award. 10.1 Embraco and Beijing Embraco Snowflake Compressor Co., Ltd. are responsible for the cost of participation of final project candidates regarding specified air and land transportation (in China) and the cost of room and board in order to present project description to the Judging committee. 10.1.2 If applicable, Embraco and Beijing Embraco Snowflake Compressor Co. will bear the cost of air and land transportation and accommodation in China for the transportation of the Professor Advisor 11 awards 11.1 The top 12 best projects will be given the following incentives: Reward Grand Prize (1) US$ 40,000 First (maximum 4) $ 5,000 + internship opportunity

Second (maximum 4) $ 2,500 + certificate Third (maximum 4) $ 1,000 + certificate Description: The Grand Prize will be chosen from the projects that have been chosen as first places from the four categories. The best project amongst these four projects will get the $40,000 money prize. However, this amount is not cumulative with the category’s first prize bonus.

11.2 As per this agreement, the award money shall be deposited as follows: a) if it is an individual registration, it should be deposited in a bank account provided by the candidate. b) if it is a group entry for non-service invention-creation projects, it should be deposited into an account designated by the team leader. In this case, the allocation of payments between the candidates of the group shall not be under the responsibility of Embraco, or Beijing Embraco Snowflake Compressor Co., and must be agreed by the group candidates. c) if it is a service invention-creation of the project, it should be credited to the account of the winning candidates from their universities or employers. In this case, Embraco and Embraco Snowflake where the candidates’ University or his employer will comply with the Chinese Patent Law Implementing rules and institutions of higher learning intellectual property protection regulations and other laws and regulations. d) if there is an advisor guiding project’s team members then the allocation of the amount for the advisor should not be required by Embraco or Embraco Snowflake, as it shall be mutually agreed by the members of the group and advisor. e) The bonus is expressed in U.S. dollars; but will be paid in RMB. 11.3. The above-mentioned award amount does not include discounts and other fees required by law. 12 Schedule 12.1. Embraco Innovation Award stage schedule is as follows:

Registration: April 8, 2013 to Oct 31, 2014.

Project submission: April 8, 2013 to Oct 31, 2014.

Fund application submission: April 8, 2013 to Oct 31, 2014.

Funding announcement: Nov 2014

Announcement of final project list: February 28, 2015.

Final evaluation and ceremony: April 2015

12.2 the dates indicated above are subject to change at any time without additional clarification to the candidates, but any such change shall be published in the Embraco

Innovation Award website. Therefore, candidates should regularly check the site to know about any possible changes in the Embraco and Embraco Snowflake Embraco Innovation Award. 13 Intellectual Property 13.1 Embraco and/or Embraco Snowflake shall have the exclusive right to purchase the intellectual property generated by the final projects within one year, after which Embraco and/or Embraco Snowflake shall have the first purchase right on the final projects whether or not protected by intellectual property. If Embraco and/or Embraco Snowflake executes the purchase rights mentioned above and after concluding a technology assignment contract with the author/inventor, it shall have the right to register the intellectual property generated in China and/or other countries, to protect Embraco's and / or Embraco Snowflake's ownership of intellectual property right generated out of the final projects, the application right, exclusive license rights or exclusive right to use the intellectual property. 13.2 After the awarding ceremony, Embraco and/or Embraco Snowflake and the candidates of the final projects (if the final project is a non-service invention-creation project) or the final candidate’s universities or employers (if the final project is a service invention-creation project), shall negotiate to obtain the patent application rights and other intellectual property rights. Patent transfer agreement and/or patent license agreement shall be signed in accordance with procedures under Chinese laws. In case Embraco and / or the Embraco Snowflake obtain the application right and/or other intellectual property rights of the final projects, it will bear all registration fees and patent fees. 13.3 Any mentions and references to the knowledge generated based on the Embraco Innovation Award in any publications, seminars, exhibits, fairs and other documents and events of academic, scientific, technological or entrepreneurial nature must contain indication of the name of the Candidates in the capacity of author and/or inventor as well as of Embraco, in the capacity of sponsor. If the author/inventor agrees, the referred mentions may indicate that such knowledge was generated in the scope of the Embraco Innovation award.

13.4 Any mention to or disclosure of the referred knowledge may only be made after

termination of the Embraco Innovation Award, upon the previous and written

authorization of Embraco and/or Embraco Snowflake, if Embraco and/or Embraco

Snowflake complete the assignment or licensing of the referred knowledge according to

PRC Laws.

13.5 Any eventual improvements of projects and knowledge generated at the Embraco

Innovation Award that are exclusively developed by Embraco and/or Embraco

Snowflake after termination of the Award, whether or not patentable, and provided

that Embraco and/or Embraco Snowflake have gotten the ownership of or the right to

use such knowledge or project generated at the EIA according to the stipulations of PRC

Laws, shall be the exclusive property of Embraco and/or Embraco Snowflake.

14 Others

14.1. Embraco and Embraco Snowflake will issue a certificate of participation to all Embraco

Innovation Award candidates of final projects.

14.2. Enrollment in the Embraco Innovation Award represents full agreement with and

acceptance of all terms and conditions of this Regulation, including but not limited to article

13.1 in this Regulation.

14.3 Enrollment of incomplete Projects or enrollments made out of the term or in disagreement

with any other requirement established in this regulation shall not be accepted.

14.4 If necessary, detailed information about the process, especially with regard to Phase 5, as

well as any changes of the provisions, may be made by Embraco or Embraco Snowflake, and

shall be disclosed by means of Technical Notes published on the website of the Embraco

Innovation Award .

14.5 The candidates hereby declare that they will not use in the development of the Project any

knowledge protected by third party intellectual property rights without the previous and

express consent of their holders provided that, in such hypothesis, such situation may be

necessary disclosed to Embraco and/or Embraco Snowflake.

14.6 The Judging Committee may annul the appointment of the winners, automatically annulling

the relevant awards should it understand that no project has reached the minimum necessary

quality pursuant to the criteria (see item 7 of this regulation) established in this regulation. 14.7

Both Vetting and Judging Committee shall deal with any situation not expressly set forth in this

regulation.

14.8 A service invention-creation is an invention-creation made by a person in execution of the

tasks of the company or the education institution to which he belongs, or made by him by

mainly using the material and technical means of the company or the education institution.

14.9 A candidate in this provision is characterized as the author of the registered projects, a

participant is characterized as a candidate and / or an advisor.

15. Grant

15.1 Since the 2012 Edition of the Embraco Innovation Award did not have a grand prize winner,

the Judging Committee decided that the money for the prize should be put in a fund that would

help candidates of the 3rd Edition to improve their projects, including the 2012 Edition winners.

15.2 The fund shall thus be divided among the six winners of the 2012 plus other eight

candidates from the 3rd Edition whose project and grant proposal are chosen by the Vetting

Committee to receive the fund.

15.3 The total amount of the fund per candidate should not higher than US$ 3,000.

15.4 The amount should be decided by the Vetting Committee according to the candidate’s

grant proposal.

15.5 The six best projects in the 3rd Embraco Innovation Award are already eligible for the grant.

Even so, as candidates for the grant and this edition’s grand prize, they must submit a grant

proposal.

15.6 Procedures to apply for the grant: 15.6.1 Candidates must submit a grant application based on the model presented by the Embraco Innovation Award organizers. 15.6.2 The grant application model is located in the Project Submission area of the Embraco Innovation Award’s website, fill the application form and send to marketing@embraco.com (www.embracoinnovationaward.com). 15.6.3 Grant application submission ends April 8, 2013 to August 15, 2014. The announcements of Grant candidates who will receive the grant should happen in November 2014. 16. The power of interpretation of this regulation belongs to Embraco and Embraco Snowflake.