Logistics Service and Information Technology Support Agreement
Exhibit 4.2.2
English Translation of Chinese Original
This Logistics Service and Information Technology Support Agreement (hereinafter referred to as
this “Agreement”) is entered into by and between the following parties on August 18, 2009 in
Shenzhen:
Party A:
|
Shenzhen Nepstar Pharmaceutical Co., Ltd. | |
| Registered address: Xxxxxxxx Xxxxxxxx X-00X, Xxxxxxx Xxxxxxxx, Xxxxxxxx | ||
Party B:
|
Fuzhou Nepstar Chain Co., Ltd. | |
| Registered address: 0/X, Xxxxxxxx #00, Xxxx X, Xxxxxxx Industrial Park, Jinshan Industrial Concentration Area, 1 Hongjiang Road, Xinjian Town, Cangshan District, Fuzhou |
Whereas:
(1) Party A is a limited liability company incorporated and registered in Shenzhen in accordance
with the law of People’s Republic of China (“PRC”) to engage in pharmaceutical wholesale, computer
network technology development and technology consulting and service in accordance with law as
approved by relevant PRc governmental authorities;
(2) Party B is a limited liability company incorporated and registered in Fuzhou in accordance with
PRC law to engage in pharmaceutical retail as approved by relevant PRC governmental authorities;
and
(3) Party A desires to provide logistics service and pharmaceutical retail information technology
system support and service to Party B, while Party B is willing to accept such service.
Therefore, upon discussion, both parties agree pursuant to this Agreement as follows:
1. SCOPE OF SERVICE
Under this Agreement, the logistics service and information technology support provided by
Party A to Party B include pharmaceutical delivery and information technology support. For details,
please refer to Exhibit I (“Logistics Service and Information Technology Support”).
2. EXCLUSIVE LOGISTICS SERVICE AND INFORMATION TECHNOLOGY SUPPORT; EXCLUSIVE INTEREST
2.1 During the term of this Agreement, Party A agrees to provide relevant Logistics Service
and information technology Support to Party B as Party B’s exclusive provider of Logistics Service
and Information Technology Support in accordance with terms and conditions hereunder.
2.2 Party B agrees to accept Party A as its exclusive service provider for Logistics Service
and Information Technology Support and Party B further agrees that, without prior written consent
of Party A, during the term of this Agreement, Party B may not obtain any logistics service and
information technology support from any third party. Party A may contract part or all of its
obligations of service under this Agreement to any third party as appropriate, on the basis of its
own demand.
3. CALCULATION, PAYMENT OF SERVICE FEE
3.1 Party B agrees to pay Party A service fee for its Logistics Service and Information
Technology Support (“Service Fee”). Both parties agree that the Service Fee hereunder shall be 40%
of Party B’s pre-tax profit every year.
3.2 Upon completion of auditing of Party B for each fiscal year, Party B shall, base on the
auditing results, pay the Service Fee to the account designated by Party A in 30 days upon such
completion and in any circumstance no later than April 30 of each calendar year.
3.3 Party A has the right to release Party B from its obligation to pay the Service Fee or
adjust the amount of the Service Fee provided under this article at any time.
3.4 The Service Fee payable by Party B to Party A hereunder is secured by pledges on the
equity interests in Party B owned by Party B’s shareholders other than Party A (“Party B’s Other
Shareholders”), and by pledges on the equity interests in the Party B’s Other Shareholders owned by
shareholders of Party B’s Other Shareholders.
4. INTELLECTUAL PROPERTY
4.1 The copyrights of software developed by Party A and other relevant software and the
intellectual property of all research and development results obtained by research and development
of Party A in performance of this Agreement and/or other agreements entered into by the parties as
well as any derivative rights shall belong to Party A. The foregoing rights include, without
limitation, patent rights, software and technical documents as carrier, copyrights or other
intellectual property of technology materials and the rights to license third party to use
foregoing intellectual property or to transfer foregoing intellectual property.
5. REPRESENTATIONS AND WARRANTIES
5.1 Party A hereby represents and warrants as follows:
5.1.1 that Party A is a limited liability company legally incorporated and effectively existing in
accordance with PRC law;
5.1.2 that Party A’s execution and performance of this Agreement is within its corporate power and
business scope and Party A has taken necessary corporate actions and obtained appropriate
authorization and has obtained requisite consent and approval from third parties and governmental
authorities. Such execution and implementation is not in violation of any restriction of any PRC
law or contract binding on or affecting it; and
5.1.3 that upon execution, this Agreement constitutes lawful, valid and binding obligation of Party
A, enforceable in accordance with its provisions.
5.2 Party B hereby represents and warrants as follows:
5.2.1 that Party B is a limited liability company legally incorporated and effectively existing in
accordance with PRC law;
5.2.2 that Party B’s execution and performance of this Agreement is within its corporate power and
business scope and Party B has taken necessary corporate actions and obtained appropriate
authorization and has obtained requisite consent and approval from third parties and governmental
authorities. Such execution and implementation is not in violation of any restriction of any PRC
law or contract binding on or affecting it; and
5.2.3 that upon execution, this Agreement constitutes the lawful, valid and binding obligation of
Party B, enforceable in accordance with its provisions.
6. CONFIDENTIALITY PROVISION
6.1 Party B agrees to take various reasonable confidential measures to keep the privileged
materials and information of Party A that it knows or get access to in Party A’s exclusive
Logistics Service and information technology Support (“Confidential Information”) in
confidentiality. Without prior written consent of Party A, Party B may not disclose, provide or
transfer such Confidential Information to any third party. Upon termination of this Agreement,
Party B shall, at the request of Party A, return any document, material or software containing
Confidential Information to Party A, or destroy it directly and delete any Confidential Information
from all relevant memories and shall not continue to use such Confidential Information.
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6.2 Both parties acknowledge and confirm that any oral or written material exchanged with
each other concerning this Agreement is Confidential Information. Both parties shall keep all of
such Confidential
Information in confidentiality and may not disclose to any third party any relevant material,
except (a) materials that have been or will be known by the public (only if it is not disclosed by
the receiving party to the public without permission); (b) materials disclosed as required by
applicable law or rules or regulations of any stock exchange; or (c) materials disclosed to the
legal or financial advisors of either party in connection with the transaction as involved herein,
provided that such legal or financial advisors shall assume similar confidential responsibility as
under this provision. The disclosure by any employee or engaged entity of either party will be
deemed as disclosure of such party and such party shall be liable for its breach in accordance with
this Agreement.
6.3 The parties agree that whether this Agreement is held invalid, modified, terminated or
unenforceable, this Article 6 shall continue to be valid.
7. INDEMNIFICATION
Party B shall indemnify and hold Party A harmless from any loss, damage, liability or expense
due to any action, claim or other request against Party A arising from or caused by the content of
Logistics Service and Information Technology Support as required by Party B.
8. EFFECTIVENESS AND TERM
8.1 This Agreement is executed on the date as set forth above and shall become effective on
the date when the authorized representatives of both parties sign this Agreement.
8.2 Any amendment, modification or supplement to this Agreement shall be made in writing and
shall become effective when the authorized representatives of both parties sign thereon.
8.3 Unless terminated in accordance with this Agreement or provisions of additional relevant
agreements between the parties hereof, the term of this Agreement shall be ten years from the
effective date.
8.4 With written consent of both Party A and Party B, this Agreement may be renewed upon
expiry. The term of renewed agreement will be determined through discussions between the parties
hereto. If the parties fail to agree on renewal or the term of renewed agreement, unless Party A
provides a written notice of no renewal before the expiry, this Agreement shall be automatically
renewed for an additional year after expiry (including the expiry of renewed term).
8.5 If during the terms as provided in Section 8.3 and 8.4 hereof, the business term
(including any extended term) of either party expires or terminates due to any other reason, this
Agreement shall terminate upon such termination, unless such party has transferred its rights and
obligations hereunder according to Article 11 of this Agreement.
9. TERMINATION
9.1 Termination on Expiry Date. Unless renewed in accordance with Article 8.4 of this Agreement,
this Agreement shall terminate on the expiry date.
9.2 Early Termination. During the term of this Agreement, Party B may not terminate this Agreement
before expiry, unless there is any gross negligence, default, other misconduct or bankruptcy on the
part of Party A. Notwithstanding foregoing, Party A has the right to terminate this Agreement at
any time by providing Party B a 30-day written notice. During the term of this Agreement, if Party
B is in breach of this Agreement and fails to correct its breach within fourteen (14) days after
receiving the written notice concerning its breach from Party A, Party A may notify Party B in
writing to terminate this Agreement.
9.3 Provisions after Termination. After this Agreement terminates, the rights and obligations of
the parties under Article 6, 11 and 13 hereunder shall continue to be valid.
10. GOVERNING LAW
The performance, interpretation and enforcement of this Agreement shall be governed by PRC
law.
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11. DISPUTE RESOLUTION
In the event of any dispute between the parties concerning the interpretation and performance
of any provision of this Agreement, the parties shall resolve such dispute through negotiation in
good faith. If the parties fail to agree upon resolution of such dispute in thirty (30) days after
one party requests to resolve such dispute through discussion, either party may submit such dispute
to China International Economic and Trade Arbitration Commission for arbitration in accordance with
its then valid arbitration rules. The place of arbitration shall be Shenzhen and the language to be
used in such arbitration shall be Chinese. The arbitration award shall be final and binding on both
parties.
12. FORCE MAJEURE
12.1 “Force Majeure” means any event that is beyond the reasonable control of one party and is
not avoidable even under reasonable attention of the affected party, including without limitation,
governmental act, natural power, fire, explosion, storm, flood, earthquake, tide, lightning and
war, provided that, the deficiency of credit, capital or fund-raising shall not be deemed as an
event out of reasonable control of one party. The party affected by Force Majeure and seeking to be
released from fulfilling its obligation under this Agreement shall notify such exemption event to
the other party as soon as possible and indicate its actions to be taken to fulfill its
obligations.
12.2 In the event of delay or suspension of implementation of this Agreement due to any Force
Majeure as defined above, the party affected by such Force Majeure will not be required to assume
any liability under this Agreement in the extent of delay or suspension. The affected party shall
take appropriate measures to diminish or eliminate the influence of such Force Majeure and shall
try to resume with performance of obligations delayed or suspended by such Force Majeure. Upon
elimination of such Force Majeure, the parties agree to resume performance under this Agreement
with best efforts.
13. NOTICE
Any notice or other communication from either party in accordance with this Agreement shall be
made in writing in Chinese or English and may be sent by personal delivery, registered mail,
pre-paid mail or acceptable courier service or facsimile to the following address or addresses of
the related party or both parties or other address as notified by the other party to such party
from time to time or address of others designated by the other party. The notice shall be deemed to
be delivered (a) for notice delivered by personal delivery, on the date of personal delivery; (b)
for notice sent by mail, on the third (3) day after the prepaid air registered mail is sent out (as
indicated on the mail xxxx) or on the second (2) day after given to the internationally recognized
courier service institution, and (c) for notice sent by facsimile, at the receiving time as
indicated by transmission confirmation letter of the relevant document.
Party A: Shenzhen Nepstar Pharmaceutical Co., Ltd.
Address: Neptunus Building A-15B, Nanshan District, Shenzhen
Attention: Xxxxx Xxxxx
Fax: 0000-00000000
Tel: 0000-00000000
Address: Neptunus Building A-15B, Nanshan District, Shenzhen
Attention: Xxxxx Xxxxx
Fax: 0000-00000000
Tel: 0000-00000000
Party B: Fuzhou Nepstar Chain Co., Ltd.
Address: 0/X, Xxxxxxxx #00, Xxxx X, Xxxxxxx Industrial Park, Jinshan Industrial Concentration Area, 1 Hongjiang Road, Xinjian Town, Cangshan District, Fuzhou
Attention: Yang Hongguang
Fax: 0000-00000000
Tel: 0000-00000000
Address: 0/X, Xxxxxxxx #00, Xxxx X, Xxxxxxx Industrial Park, Jinshan Industrial Concentration Area, 1 Hongjiang Road, Xinjian Town, Cangshan District, Fuzhou
Attention: Yang Hongguang
Fax: 0000-00000000
Tel: 0000-00000000
14. ASSIGNMENT OF AGREEMENT
14.1 Without prior written consent of Party A, Party B may not transfer its rights and
obligations hereunder to any third party.
14.2 Party B hereby agrees that Party A may transfer its rights and obligations hereunder to
any third party. Party A shall provide Party B with written notice at the time of such transfer,
and need not obtain consent of Party B with respect to such transfer.
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15. ENTIRENESS OF AGREEMENT
Both parties confirm that upon effectiveness, this Agreement constitutes the entire agreement
and understanding between the parties hereof with respect to the subject matter of this Agreement
and completely supersedes all prior oral or/and written agreement and understanding between the
parties before this Agreement with respect to the subject matter hereof.
16. SEVERABILITY OF AGREEMENT
If any provision under this Agreement is held to be invalid or unenforceable due to any
conflict with relevant law, then such provision shall be deemed to be invalid only to the extent of
jurisdiction of the relevant law and shall not affect the legal effect of other provisions hereof.
17. COPIES OF AGREEMENT
This Agreement shall be signed in two originals with equal legal force and effect, with each of
Party A and Party B to hold one.
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IN WITNESS WHEREOF, both parties have caused their respective legal representative or authorized
representative to sign this Agreement on the date set forth above.
[End of text]
Party A: Shenzhen Nepstar Pharmaceutical Co., Ltd.
Signed by Legal/Authorized Representative:
Seal: /s/ Shenzhen Pharmaceutical Co., Ltd.
Party B: Fuzhou Nepstar Chain Co., Ltd.
Signed by Legal/Authorized Representative:
Seal: /s/ Fuzhou Nepstar Chain Co., Ltd.
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Exhibit I: Logistics Service and Information Technology Support
1. Pharmaceutical Retail System STAR
Systems providing sound pharmaceutical retail and logistics information, including product managing
system, logistics service system and store managing system. Services covering installation of the
system in newly-established distribution centers and newly-opened stores; providing system upgrade
service and maintenance.
2. Finance System K3
A finance managing platform, including daily finance work, financial analysis and other functional
supports for information system.
3. Office Automatization System
A unified office automatization platform system for the purpose of internal and external email and
office document reviewing and approving.
4. Supplier Information Support Service Platform
An
information-sharing service platform to provide suppliers with information regarding sales and
inventory.
5. Member Point Managing System
A member point managing system which assists in managing member scores, such as point accumulation,
exchange, exchanging purchase and award drawing. This is helpful for efficient promotion.
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