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EXHIBIT 10.01
SERVICE CONTRACT
This agreement is made and entered into this 12th day of July 1999, by and
between American Tire Corporation, 000 Xxxxx Xxxxxx, Xxxxxxx Xxxx, Xxxxxx
00000 (Hereinafter referred to as ATC) and McWong International (Shanghai)
Co., Ltd., Suite 1612-1613, Xxxxxx Financial Building, 000 XxxxXxxx Xxxx, Xx
Xxxx, Xxxxxxxx, 000000 P.R. China (Hereinafter referred to as McWong).
Now, therefore in consideration of the mutual promises contained herein, the
parties agree as follows:
Amount:
1. ATC agrees to pay McWong the sum of $2,500 (twenty-five hundred US dollars)
per month starting July 16, 1999, for the purpose of providing ATC quality
control personnel at the factory of Shanghai Forever Bicycle Co., Ltd. The
sole purpose is to make sure the factory ships bicycles to ATC in the U.S.
under specific specifications. The amount will cover the work of McWong for
the shipping of 10,000 bicycles or less per month.
2. In addition, ATC agrees to pay an additional $.25 per bicycle on each
bicycle shipped over 10,000 per month.
Term of Payment:
3. ATC agrees to pay $2,500 on or before the 15th day of each month through
wire transfer of funds to the following account:
Beneficiary: McWong International Business (Shanghai), Inc.
Bank: Bank of Communications, Shanghai Branch
Waigaoqiao Free Trade Zone Sub-branch
Bank Add: 00 Xxxxxx Xxxx, Xxxxxxxx, Xxxxx
Account No.: 01601140121016473017
Any additional monies due for additional bikes over 10,000 shipped in that
months, ATC agrees to wire transfer funds by the 20th day of that month.
Additional Expenses:
4. In the course of doing business ATC recognizes that there could be
additional expenses curtailed by McWong in carrying out its responsibilities.
Prior to the expenses being accepted McWong must receive prior approval in
writing by ATC. This can be accomplished by fax to ATC with written approval
to proceed.
Term of Contract:
5. This contract shall be in effect for one year (twelve months). At the end
of the year ATC has the right to extend or cancel this agreement. However, ATC
should give the written notice one month in advance before the end of one
year.
McWong Responsibilities:
6. McWong must have two employees on ATC's bicycles program. One of them must
speak English so as to be able to communicate with ATC. Two employees must be
able to handle quality control on 10,000 bikes per months. If over 10,000
bicycles are shipped per month then additional personnel must be added to
handle the quantities adequately.
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7. McWong must make sure that Shanghai Forever Bicycles Co., produces the
bicycle under the specs of ATC. In the future, additional products will be
ordered and addendum to this contract will be added.
8. McWong must be familiar with the safety standards as stated in the U.S.
federal register dated January 28, 1974, under part 1512 - requirements for
bicycles. Anything additional in safety features that ATC may desire will be
included as an addendum to this contract.
9. The shipping boxes for the bicycles will be in a heavy gauge cardboard box.
10. McWong must make sure all pamphlets and other promotional items given to
them by ATC for the purpose of shipping in the bicycle boxes are placed
correctly.
Termination:
11. Termination can be caused by McWong not performing on their obligation to
maintain quality control of the bicycles. A letter of cancellation will
validate the termination. However, ATC agrees to pay McWong the compensation
equals to two month service fee if ATC cancels the contract within one year.
General Provisions:
12. This agreement constitutes the entire under standing between ATC and
McWong, and shall be construed according to the laws of the state of Nevada,
U.S.A. This agreement cannot be modified except by written consent signed by
both parties to this agreement.
13. Nothing contained herein shall be deemed to create a joint venture,
partnership, or agency between the parties hereto.
14. In the event of any controversy or claim arising out of this agreement
both parties agree to accept arbitration in accordance with the commercial
arbitration rules of the American Arbitration Association.
15. The undersigned hereby certifies and warrants that they have the full
power, right and authority to enter into this agreement, have read the same in
its entirety and understands all of its terms and provisions and that no
acceptance there of shall be valid which modifies said terms and conditions.
Witnessed by signatures below, this 12th day of July 1999.
American Tire Corporation McWong International (Shanghai) Co. Ltd.
/S/ Xxxxxxx X. Xxxxxxx, Chairman /S/ Xxxx Xxxxx, General Manager
7/12/99 7/12/99
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