MANUFACTURING AGREEMENT
This
Manufacturing Agreement (“the
Agreement”)
is dated
the 24th
day of
December, 2007 (“Effective
Date”),
by and
between Inrob Philippines Ltd, a Philippines corporation (“INROB”),
and CP
Communication Services, Inc., a Philippines corporation, having an address
at
Xxxx 000, Xxxxxx, Xxx-Xxx Xxxxxxxx, Xxxxxxx Xxxxxx, Xxxxxx Xxxx, Xxxxxxxxxxx
(“CPCOM”)
WHEREAS: |
Pursuant to
the Agreement entered into between the parties on even date hereof
for the
lease of an operating factory (“Operating
Lease Agreement”),
CPCOM will operate a manufacturing facility for INROB at an existing
factory in the Philippines (“the
Premises”);
and
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WHEREAS: |
the
parties hereto
with to enter into an arrangement whereby CPCOM will operate the
Premises
and provide certain manufacturing services to INROB, all in accordance
with the terms and conditions set forth herein,
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NOW,
THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1.
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Term
of Agreement.
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This
Agreement shall commence on the Effective Date and shall remain in full force
and effect throughout the duration of the Operating Lease Agreement (the
“Agreement
Term”).
2.
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Provision
of Services.
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2.1
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During
the Agreement Term, CPCOM will provide INROB the services as may
be
required in order to provide INROB with a Product as designated by
INROB
and detailed in an instruction letter by INROB which services are
hereinafter referred to individually as a “Service”
and collectively as the “Services”.
In providing the Services, CPCOM shall use the number of adequate,
experienced and qualified personnel and management as may be necessary
in
order to supply INROB with the purchase orders placed by INROB from
time
to time and to ensure that INROB can conduct its business in the
ordinary
course.
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2.2
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CPCOM
shall determine both the staffing required and the particular personnel
assigned to perform the Services. The personnel so assigned may be
replaced or reassigned at CPCOM's sole discretion. INROB shall provide
training to such personnel and shall be entitled to demand the replacement
of any such personnel on grounds of lack of under
qualification.
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2.3
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With
respect to those employees who received training of any kind from
INROB,
their replacement or reassignment shall be pre-approved in writing
by
INROB.
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2.4
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CPCOM
shall not provide any professional services under this Service Agreement
if the provision of such Services by the employees who would provide
such
services would be prohibited by
law.
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2.5
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CPCOM
commits itself to render the Services with sufficient, experienced
and
adequate personnel and management. CPCOM shall be jointly and severally
liable for all acts and omissions incurred by the personnel or management
that it may use to render the Services with respect to the damages
caused
to INROB or third parties as a consequence of such acts or
omissions.
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2.6
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CPCOM
hereby grants to INROB and its successors access rights, on a nonexclusive
basis, to areas of the Premises owned or leased by it to the extent
necessary for CPCOM to perform the Services and for INROB to utilize
the
Services specified hereunder.
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2.7
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INROB
shall have no relationship or liability of any kind with respect
to the
personnel, management, employees or employees of third parties that
CPCOM
may use in order to provide the
Services.
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2.8
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CPCOM
shall strictly and timely comply with all legal and regulatory obligations
that may be imposed or may correspond to it with respect to the personnel
and management it uses to provide the Services and shall be directly
responsible for all consequences that may arise or derive from a
lack of
such fulfilment.
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2.9
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The
parties agree that in the event that INROB's interest require, INROB
shall
be entitled to replace the manufacturing services provided by CPCOM,
provided that CPCOM was given a 1 (one) month prior written notice
to that
effect and that the costs of the production be adjusted accordingly.
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3.
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Consideration.
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The
consideration for Services shall be in accordance with the going market rate
in
the area of the Premises for the services, as shall be agreed between the
parties from time to time.
4.
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Billing
and Payment.
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At
the
end of each calendar month, CPCOM shall send to INROB an invoice for the actual
services rendered by CPCOM to INROB during such time period, indicating the
type
of Services rendered, the number of persons dedicated to each Service and the
number of hours spent for each type of Service. Upon receipt of the respective
invoice, INROB shall review it and inform CPCOM of any objection it may have
within 15 business days from receipt of the invoice. INROB shall pay to CPCOM
the corresponding invoice no later than 45 days following the receipt of the
invoice. It is agreed that the invoice shall be examined in accordance with
the
Purchase Orders placed by INROB according to the Operating Lease
Agreement.
5.
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Termination.
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5.1
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This
Agreement shall be effective as of the Effective Date and shall remain
in
full force for the duration of the Operation Lease
Agreement.
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5.2
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No
termination of this Agreement shall discharge, affect or otherwise
modify
in any manner the rights and obligations of the parties hereto which
have
accrued or have been incurred prior to such
termination.
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6.
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Liability.
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In
providing the Services hereunder, CPCOM shall be liable to INROB for all
liability, loss cost or damage of any nature whatsoever (including, without
limitation, reasonable counsel and consultant fees and expenses, investigation
costs, court costs and litigation expenses) (“Damages”)
incurred or suffered by INROB arising out of CPCOM's performance or
non-performance of its obligations hereunder, except with respect to any such
Damages incurred as a result of INROB’s negligence as determined by the
arbitrator appointed in accordance with this Agreement.
Such
liability shall include, inter alia, any damage or defect to the Products
(whether in the process of manufacture or at any time until dispatch of the
Products from CPCOM's premises), delay in manufacture of the Products, inability
to manufacture the Products in the time and manner agreed by the parties in
the
Purchase Orders or in any other document.
7.
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Confidentiality.
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Confidential
Information disclosed or generated pursuant to this Services Agreement shall
be
treated by each party hereto in accordance with the same standard of care such
party applies to its own confidential information.
8.
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Ownership
in Propriety Rights.
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8.1
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CPCOM
recognizes and acknowledges that all proprietary rights in the finished
products manufactured (including all materials used in the manufacturing)
by CPCOM in the framework of the Services and in the information
provided
by CPCOM in the rendering of the Services shall remain the sole property
of INROB.
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8.2
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CPCOM
affirms that it has never had, does not have and will not have any
claims
to, and will not make any representations to third parties that it
has,
any proprietary rights in the Services, the information derived therefrom
or any accompanying materials.
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9.
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Status.
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CPCOM
shall perform all Services hereunder as an independent contractor and nothing
contained herein shall be construed as constituting CPCOM as an agent or legal
representative of INROB or constitute a relationship of employer and employee
or
any other similar joint interest between the parties and neither party shall
have the authority to bind the other party or to contract in the name of the
other party or to create liability against the other party in any way
whatsoever.
10.
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Notices.
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All
notices required hereunder shall be in writing and shall be effective as set
forth in this Agreement. Such notices shall be delivered personally or sent
by
facsimile, confirmed in writing sent via registered mail, return receipt
requested, postage prepaid, or sent by Federal Express or other courier service,
to the addresses and facsimile number set forth above, unless notice of change
of addresses and/or facsimile numbers is given in writing in accordance with
the
foregoing to the other parties, in which case any notice shall be sent to such
new addresses and/or facsimile numbers.:
Either
party may change the address to which any communication, report or payment
is to
be directed to it by giving written notice to the other in the manner provided
in this Section.
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11.
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Assignment.
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This
Agreement shall be binding upon an inure to the benefit of the successors of
each party hereto, but shall not be assignable by either party without the
prior
written consent of the other.
12.
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Access
to Books and Records.
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Upon
reasonable notice, CPCOM shall permit INROB (and/or its independent accountants)
to review, no more than one time each calendar year, the books and records
of
CPCOM during regular business hours, as they relate to the charges under this
Agreement for the purpose of verifying the accuracy of such charges. All costs
of such review shall be paid by INROB.
13.
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Third
Persons.
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This
Agreement is not intended to, and shall not, create any rights in or confer
any
rights upon anyone other than the parties hereto.
14.
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Arbitration,
Governing Law and Jurisdiction.
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The
Arbitration, Governing Law and Jurisdiction clauses shall be as stated in the
Operation Lease Agreement.
15.
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Governing
Language.
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This
Agreement has been prepared in the English Language. In the event of any
conflict or inconsistency between the English language version and any
translation hereof made for any purpose, the English language version shall
prevail and shall govern the interpretation and constructions hereof, except
as
may be required by applicable law.
16.
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Amendment.
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Neither
this Agreement nor any term hereof shall be amended or modified in any manner
except by an instrument in writing which specifically refers to this Agreement
and is executed by each of the parties hereto.
17.
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Counterpart.
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This
Agreement may be executed by the parties hereto in one or more counterparts,
each of which shall be deemed to be an original, but all of which shall
constitute one and the same agreement.
18.
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Waiver.
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Failure
of either party to insist upon strict compliance with any of the terms of this
Agreement in one or more instances shall not be deemed to be a waiver of its
right to insist upon such compliance in the future, or upon compliance with
the
other terms hereof.
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19.
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Information
Access.
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Each
party will provide to the other party, free of charge of cost, copies of any
information, data or documents reasonably required for reporting or compliance
obligations with any governmental authority, except to the extent that provision
of such copies of information, data and documents would result in undue burden
or expense to the providing party.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by
their authorized representatives as of the date first above
written.
INROB |
CPCOM |
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By: /s/ Ben Xxxx Xxxxxx | By: /s/ Xxx Xxxxxx | ||
Its: CEO | Its Managing Director |
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