LOGISTICSSERVICECONTRACTNo.sales060407SERVICECONTRACTNo.sales060407SIGNEDON2006-04-18BETWEENBBBcompanywithregisteredaddressatRm.1706,###InternationalPlaza,No.1000,ShanghaiRoad,Shanghai,200030(Hereinafterreferredtoas“BBBCOMPANY”)ANDAAAcompany.,withregisteredaddressatNo.999zhongguoRoad,200000ShanghaiChina(Hereinafterreferredtoas“AAACOMPANY”)WHEREAS:AAACOMPANYisaninternationallogisticsserviceproviderforsupplyingofwarehousing,transportation,freightforwardandotherlogistics-relatedservices;BBBCOMPANYdesirestoavailitselfoftheaforesaidlogisticsservicesandwishesAAACOMPANYtoassistinitsmanagementinconnectionwithsuchlogisticsservicesandAAACOMPANYagreestooffersuchservicestomeettherequirementsofBBBCOMPANY.Page1of12LOGISTICSSERVICECONTRACTNo.sales060407TableOfContents:1.SERVICESCOPE2.DURATION–CONTRACTTERM3.PRICEANDPAYMENT4.TITLEOFGOODS5.INSURANCE6.LIABILITY7.INVENTORY,STOCKTAKING/CHECKS,STOCKDISCREPANCIES8.CONFIDENTIALITY9.ASSIGNMENT10.AMENDMENTS11.EFFECTIVENESSOFNOTICES12.FORCEMAJEURE13.SEVERABILITY14.NON-WAIVER15.GOODFAITH16.TERMINATION17.ARBITRATIONPage2of12LOGISTICSSERVICECONTRACTNo.sales060407THEPARTIESHEREBYAGREEASFOLLOWS:1.SERVICESCOPEAAACOMPANYshallprovidethefollowingservicesfortheBBBCOMPANYwithprudenceandreliability.Inparticular,AAACOMPANYshallberesponsibleforimplementingofallobligationsinaccordancewiththisContract.AAACOMPANYshallmakeallreasonableeffortstopreventGoodsfrombeingstolen,lost,destroyedordamagedduringtheservicesprovisionperiod.Suchservicesare:zCargoreceivingintotheAAACOMPANYwarehouse;zWarehousingandinventorymanagement;zPackingandrepackingzCargodispatch;zOtherservicesagreedbybothParties.Workinghourfortheaboveserviceis9:00hrto17:30hrfromMondaytoFridaywithpublicholidayexcepted.2.DURATION–CONTRACTTERMThiscontractshallcommencefrom2006-05-01to2007-04-30.Thiscontractwillbeextendedwithone-yearrenewaltermbasedonthemutualconsentofbothparties.Bothpartiesshallnegotiateandchoosetowhetherextendorterminatethecontractninety(90)daysinadvanceofitsexpiration.Ifnopartygivesanynoticetoterminatethecontractninety(90)daysbeforetheterminationdate,thecontractwillbeextendedtoanothercontractyearautomatically.3.PRICEANDPAYMENTItisunderstoodtobothpartiesthatthepricetermestablishedbyAAACOMPANYwasbasedontheaccountcharacteristicsprovidedbytheshipperandthemasterinformationprovidedbyBBBCOMPANY.TheaforesaidpricetermisdescribedindetailinAnnexattachedheretoandwillbereviewedbybothpartieswhensigningofthisContract.Suchpricetermmaybeadjustedinaccordancewiththevariationoftheaccountcharacteristics,themasterinformationandAAACompany’scapabilitytoprovidethecompetitiveprice.Page3of12LOGISTICSSERVICECONTRACTNo.sales060407AAACOMPANYunderstandsthatthepriorwrittenconsentofBBBCOMPANYshallbeobtainedandsuchconsentshallnotbeunreasonablywithheldbyBBBCOMPANY.BBBCOMPANYshallpaytheremunerationfortheservicesofAAACOMPANYasspecifiedenclosedinAnnex.Thepricetermshallbereviewedbybothpartiesintheendofeachcalendaryear,ifnoterminationnoticeisrenderedbeforetheaforesaiddateofreview.AAACOMPANYshallissueservicechargetoBBBCOMPANYmonthly,therelevantdetailsofthechargingformandinvoicearebasedonthefurthernegotiationbetweenBBBCOMPANYandAAACOMPANY.BBBCOMPANYshallconfirmthebillingdetailsandtheinvoiceorputforwardhisinquiryordoubtwithin15daysafterAAACOMPANY’sissuanceofthechargingdetailsandtheinvoice,otherwiseItwillbeconsideredthatBBBCOMPANYhasacceptedthebillingdetailsandtheinvoice.BBBCOMPANYshalleffectthepaymenttoAAACOMPANYwithin30daysuponreceiptoftheinvoice.TitleofInvoice:Attendto:Mailingaddressoftheinvoice:4.TITLEOFGOODSBBBCOMPANYshallbetheexclusiveowneroftheGoodsduringtheperiodofservicesprovision.AAACOMPANYshallperformtheservicesinaccordancewiththewrittenspecificinstructionsofBBBCOMPANYandshallnotfollowanyinstructionofanythirdpartyexceptthatsuchpartyisexpresslyauthorizedbyBBBCOMPANYinwriting.5.INSURANCEANDRISKOFINVENTORYBBBCOMPANYshallarrangetheGoodsinsurancetocoverwarehousing.AAACOMPANYshallcoverliabilityfortheoperationerrors/negligence.UponreceiptoftheGoods,theriskofdamageandlossoftheGoodsshallbebornebyBBBCOMPANYifAAACOMPANYhasexertedduediligenceinperformingthisContract(i.e.thereisnoimproperorerroneoushandlingonthepartofAAACOMPANYunderthisContract).Page4of12LOGISTICSSERVICECONTRACTNo.sales0604076.LIABILITY6.1RESPONSIBILITYOFBBBCOMPANY6.1.1BBBCOMPANYshallatitsowndiscretionandexpensestomaintainallinsuranceasstipulatedinarticle5ofthisContractfortheGoodsstoredatthepremisesofAAACOMPANY.6.1.2BBBCOMPANYshallnotstoreanyGoodswithexplosive,flammable,corrosive,noxiousordangerousnature,whichmaycausedamageordetrimenttothewarehouseortoothergoodsatthepremisesofAAACOMPANY,oranyGoodswhichareclassifiedasdangerousorhazardousgoodsbythelawsorregulationsofP.R.China.BBBCOMPANYshallindemnifyAAACOMPANYagainstanyandallfines,penaltiesordirectdamagessufferedorincurredbyreasonofBBBCOMPANY’sfailuretothisclause.6.1.3BBBCOMPANYshallbesolelyresponsibleforallthequantitiesofGoodswithinsealedpackageandbeliableforanydeficiencyorshortfallofthoseGoodswithinsealedpackage.6.1.4BBBCOMPANYshallissuetheinstructionforoperationinaclearwrittenform.6.1.5BBBCOMPANYshalltaketheresponsibilityofdiscrepancybetweenactualGoodsandtherequirementoftheGoodsstipulatedbyshippingdocuments(includingbutnotlimitedtodirectlossessufferedbyAAACOMPANYandanyBBBCOMPANY’sliability).6.1.6BBBCOMPANYorhisshipperwilltaketheresponsibilityforAAACOMPANY’sdemurragepaymentrisingfromthewrongshippingdocumentsprovidebyBBBCOMPANYorhisshipper.6.2RESPONSIBILITYOFAAACOMPANY6.2.1UponreceiptoftheGoods,theriskofdamageandlossesoftheinventoryshallbebornebyBBBCOMPANYifAAACOMPANYhasexertedduediligenceinperformingthisContract(i.e.thereisnoimproperorerroneoushandlingonthepartofAAACOMPANYunderthisContract).6.2.2AAACOMPANYshallnotbeliableforanylossesordamagesoftheGoodsduetotheaccidentsoccurredduringthetransportationperiodPage5of12LOGISTICSSERVICECONTRACTNo.sales060407unlesssuchaccidentsarecausedbyAAACOMPANY’sgrossnegligenceinhandlingoftheGoods.6.2.3AAACOMPANYshallnotbeliableforanydirectlyorindirectlyconsequentiallossescausedbytheaforesaidaccidents,includingbutnotlimitedtoBBBCOMPANY’spotentialliabilityforbreachofotheragreementwhichwassignedwithathirdparty,oranydamagesorlossesoftheGoods,orlossofprofit,lossofmarketvalueetc.7.INVENTORY,STOCKTAKING/CHECKS,STOCKDISCREPANCIESAAACOMPANYshallberesponsiblefortheinventorymanagementasrequiredbyBBBCOMPANY.Inthisregard,AAACOMPANYshallprovideBBBCOMPANYwithcompleteinformationregardingstockstatus,availabilityofusage,andallrelevantshipmentinformation.ThewarehousingreportandstockbalanceshallbepreparedbyAAACOMPANYonamonthlybasis.UponBBBCOMPANY’srequest,AAACOMPANYshallcooperateBBBCOMPANYtoinspectorexaminetheinventoryonthespot.AAACOMPANYshalltaketheproperstocktakingmethodaccordingtotherequirementandrelevantrulesprovidedbythecompetentauthorityinShanghai,China.ApartfromaninternalregularauditpreformedbyAAACOMPANY,BBBCOMPANYandAAACOMPANYshalljointlyconductanannualinventoryaudit.,Alternatively,BBBCOMPANYisentitledtoretainanexternalauditortomaketherelevantauditandonemonthnoticeofsuchauditshallbeprovidedtoAAACOMPANYintime.Furthermore,BBBCOMPANYisentitledtorequestastocktakingbyawrittennoticetoAAACOMPANYseven(7)workingdaysinadvance,AAACOMPANYshallnotunreasonablyholdtheapproval.8.CONFIDENTIALITYDuringthetermofthisContractandforaperiodoffiveyearsafterterminationofthisContract,AAACOMPANYandBBBCOMPANYshallundertakethefollowing:8.1TokeepallinformationorcommunicationprovidedbyBBBCOMPANYtoAAACOMPANYinstrictconfidenceandtrust(includingbutnotlimitedtodetailsofshipmentarrangement,nameofcommodities,origins,consignors,consigneesorotherinformation)andAAAPage6of12LOGISTICSSERVICECONTRACTNo.sales060407COMPANYshallnotdiscloseanyaforesaidconfidentialinformationtoanythirdpersonandviceversa;8.2ToprohibitusinganyconfidentialinformationforanypurposeotherthantheServiceScopestipulatedinarticle1ofthisContract.8.3Toensurethatallemployeesofbothpartiesshallatalltimeskeepsecretonallconfidentialinformationinaccordancewiththisconfidentialityclause.9.ASSIGNMENTNopartyhastherighttoassignthisContractunlessotherwiseobtainingthewrittenconsentoftheotherparty.10.AMENDMENTSAnyamendmenttothisContractshallcomeintoforceuponsignedbydulyauthorizedrepresentative(s)ofBBBCOMPANYandAAACOMPANYinwriting.11.EFFECTIVENESSOFNOTICESAllnoticesrequiredorpermittedtobegivenhereunderfromonePartytotheotherPartyshallbegiventotheaddressshowninthisContract,ortosuchotheraddressasmaybedesignatedinwritingbyonePartytotheotherParty.Suchnoticetobegivenhereundershallbedeemedtobedulydeliverybythefollowingmethod:zifhanddelivery(againstreceipt);zifsendbyregisteredmail,fivedaysaftersending(receiptrequested),12.FORCEMAJEUREIntheeventofastrikeinthelogisticsindustry,perilsofnavigation,fire,hostilities,wars(declaredorundeclared),blockade,riots,insurrections,civilcommotion,earthquakesandothercatastrophescausedbynatureorothercausesorcircumstancesbeyondanyparty’scontrol,thepartyrelyingontheeventofForceMajeureshallnotbeliableforanydelayordefaultintheperformanceoritsobligationsunderthisContract.WhiletheeventofForceMajeurecontinuesformorethanaperiodofthree(3)months,then(withoutprejudicetotherightsofanypartywithrespecttoanyantecedentbreach)thisPage7of12LOGISTICSSERVICECONTRACTNo.sales060407CONTRACTshallbeterminatedandneitherpartyshallhaveanyrighttoclaimagainsttheother.13.SEVERABILITYIntheeventthatanyclauseorpartofanyclauseinthisContractisdeemedasinvalidorunenforceablethen:13.1Theremainingclausesandanyremainingpartsoftheclauseshallnotbeaffected,impairedorinvalidatedandtheContractasawholeshallremaininfullforceandeffectandcontinuetobindbothparties;13.2Bothpartiesshallthereuponnegotiateingoodfaithinordertoagreeonthetermsofasubstitutetoreplacetheclausewhichisdeemedinvalidorunenforceable.14.NON-WAIVERNowaiverofanyprovisionofthisContractshallconstituteawaiverofanyotherprovisionnorshallanywaiverofanyprovisionofthisContractconstituteacontinuingwaiverunlessotherwiseexpresslyprovided.15.GOODFAITHBothpartiesundertaketousetheirbestendeavorsandingoodfaithtofulfillthisContract.16.TERMINATIONEitherpartymayforthwithterminatethisContractupontheoccurrenceofanyofthefollowingevents:16.1bygivingtotheotherpartythirty(30)days’writtennoticeofbreachofanyofthetermsorconditionsofthisContractPROVIDEDTHATthebreachisnotremediedwithinsuchthirty(30)days’noticeperiod.16.2withimmediateeffectonwrittennoticegiventotheotherpartyifthatotherpartybecomesinsolvent,submitsanapplicationforadeclarationofbankruptcyorawinding-uppetitionorentersintoanarrangementwithitscreditorsforthecompromise,moratoriumorpostponementofitsdebts.Page8of12LOGISTICSSERVICECONTRACTNo.sales06040717.ARBITRATIONThisContractshallbegovernedbyandinterpretedinaccordancewiththelawsandregulationsofP.R.China.Shouldanydisputescouldnotbesolvedthroughfriendlynegotiationwithin3months,eitherpartymaysubmitthedisputetoChinaInternationalEconomicandTradeArbitrationCommissionShanghaiBranchforanarbitration.AnnextoContractNo.sales060407PricesWarehousing---Non-BondedUn-loading/loading:RMB15perCBM,Min.1CBMStorage:---RMB8.05perpalletlocationperweek---Euro-palletnothigherthan1.2mStorageincludesinventorymanagementas---RMB1.8pershelflocationperweekfollowing:---shelfsizedin40x30x40cmzThemanagementofcustomer’sinventoriesinasystematicmanner,maintainingtherecordsNote:ofproductcodeandspecificationas-Storagechargebasedonmaximuminventoryrequested.levelperweek.zSystemretrievalbyFIFO.-WeeklymaximuminventorylevelbasedonzRegularstockcount.dailyclosedbalancestatisticsinWMS.zContinuousstockmonitoringInventorylevelbasedonoccupiedbin(box)shelflocationorpalletlocationinWMS.Page9of12LOGISTICSSERVICECONTRACTNo.sales060407Sea-freightExportCharges---Non-bondedTHCUptodestinationBookingRMB150/shptLCLexportchargeTransportationRMB400/2Ttruck/trip-FromAAACOMPANYtoRMB600Ttruck/tripLCLterminalRMB800/10Ttruck/tripExportdeclarationRMB300perdeclarationBookingRMB150pershptCCIBcertificateexchange:ifapplicableRMB150percertificateInspectionHandling:ifapplicableRMB100perinspectionInspection:ifapplicableAtcostHandlinginforstorageRMB16perorderlineHandlinginincludes:zCheckingcorrectnessandquantityofarticleMinimumchargeRMB48pershipmentlineszSortinganditemizationzStore-in/Put-awayPalletizedcargoorconsolidatedarticlelinesUn-palletizedcargoorloosearticlewhichhavetobeitemizedorsortedHandlingoutfordeliveryRMB18perorderlineHandlingoutincludes:zPickMinimumchargeRMB56pershipmentzStore-outzRelatedwarehouseadministrationanddocumentationRepacking:ifapplicable---RMB32permanhour---PackingmaterialatcostLabeling:ifneededRMB1perlabelStockTake:suggestedonceayearatleastbutRMB200perhouruptoclient’sdecisionzProvisionofequipment(forkliftetc.)z1supervisorz1dataentrypersonPage10of12LOGISTICSSERVICECONTRACTNo.sales060407Page11of12LOGISTICSSERVICECONTRACTNo.sales060407INWITHNESSWHEREOFthepartieshaveexecutedtheAgreementbythedayandyearsetoutabove.SignedbySignedbyforandonbehalfofforandonbehalfofBBBCompanyAAACOMPANYinthepresenceofinthepresenceof_____________________________________________________________________________________________Name:Name:Designation:Designation:Date:__________________Date:__________________Page12of12
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