Exhibit 10.5
PURCHASE AGREEMENT
(English Translation)
Party A: Pacific (Jinjiang) Shoes Co., Ltd.
Party B: Huachang Footwear Materials Company
For the purpose of long term cooperation, Party A and Party B, upon amiable
negotiation, enter into the following agreement concerning the supply of series
products (hereinafter referred to as "Products") to Party A by Party B under the
term and condition herein:
1 SCOPE AND PRICE OF PRODUCTS
1.1 Party B shall provide the products to Party A.
1.2 Products purchased by Party A from Party B may be resold to any third
party.
1.3 Party B undertakes that, during the term hereof, its quotation shall be
competitive within the footwear, i.e., the price may not exceed the
Threshold price quoted for the similar products within the domestic market
and the most favored price of products has been provided to Party A;
otherwise Party B shall supply the products to Party A at the bottom line
quoted for the similar products within the domestic market or the
preferential price quoted to the third party by Party B, which shall apply
to the products have been sold to Party A.
2 QUANTITY, TIME LIMIT AND PLACE OF DELIVERY
2.1 During the term hereof, Party A shall, subject to the actual requirements,
issue the order to Party B for the purchase of products as referred in
Article 1 hereof. Such order attached herein as Schedule shall detail the
type, specification, quantity, time limit and place of delivery etc, Part B
shall deliver the products in the type and quantity at the time limit and
place as referred in such order.
2.2 Party B acknowledges that it shall make reply within 1 working day upon the
receipt of purchase order to deliver the products ordered within the time
limit to the place referred in such order, furthermore, Party B guarantees
that the lead time of delivery shall not exceed the longest period of
supply guaranteed by Party B calculated from the date of order, Party A may
make the specific date within such period as the delivery date.
2.3 Based on the lead time referred in Article 2.2 herein, Party A shall
indicate the specific delivery date in the purchase order. Party B shall,
prior to the acceptance of such purchase order, affirm its capacity of
supply including the quantity and time limit requirements, if Party B fails
to satisfy such requirements, the formal notice shall be delivered to Party
A for the renegotiation between the Parties and amendment to such purchase
order, provided, however, in no event the longest period of supply referred
in Article 2.2 herein may be extended. It shall constitute the breach of
Party B if the purchase order issued by Party A is accepted but the
delivery is delayed, in such event, Party A reserve the rights to reject
such products delivered and require the indemnification of losses suffered
by Party A therefrom.
3 ORDER PROCESS
3.1 Issuance of Purchase Order
Party A shall issue the purchase order to Party B through fax as referred
herein, each purchase order shall be signed and sealed by the authorized
representative of Party A and indicate
(1) this Contract as the basis of such purchase order;
(2) the name, quantity and price of products ordered;
(3) the specific place of delivery, consignee and contact information; and
(4) the delivery date required by Party A.
If any of information referred above is incomplete or not compliant with
the stipulation herein, Party B may dispute or refuse to accept such
purchase order.
<PAGE>
3.2 Acceptance of Purchase Order
Within 1 working day upon the receipt of purchase order faxed by Party A,
Party B shall seal such purchase order and affirm the quantity, price and
date of delivery, it shall constitute the acceptance of such purchase order
if such purchase order sealed has been returned to Party A through fax as
referred herein, provided, however, if such purchase order fails to be
returned as mentioned above, Party A may treat it as has been objected by
Party B and becomes null and void.
3.3 Amendment of Purchase Order
Any amendment to the purchase order shall come into effect only upon the
signatures and seals by the authorized representatives of Party A and
Party B, Party B shall, affirm, in the form of seal, any amendment to the
purchase order suggested by Party A in writing notice within 1 working day
upon receipt of the same.
3.4 Cancellation of Purchase Order
The purchase order shall be fulfilled fully and duly upon effectiveness and
may not be cancelled by either Party except in writing form agreed and
acknowledged by the Parties with seal.
4 PACKAGE AND TRANSPORT
4.1 Products delivered to Party A shall be protected with standard packages or
packages required by Party A, which shall be consistent with the
requirements for long distance transportation, loading & unloading and
repeated use, if the carton or wooden case is used as the outer package,
appropriate measures shall be taken for the protection against of seepage
water, rot or dash. All expenses arising from package shall be borne by
Party B and Party B shall indemnify the losses suffered by Party A due to
the damages or losses of products arising from the undue or improper
packages.
5 PAYMENT TERM
5.1 All expenses between Party A and Party B hereunder shall be settled in RMB.
5.2 Payment Term
The Parties shall check the contract prices of the preceding month at the
end of this month on the basis of proof of delivery affirmed by Party A.
thereafter Party B shall issue the VAT invoice according to the contract
prices affirmed by the Parities and Party A shall pay such VAT invoice in
cash within 1 month upon the receipt of such invoice, provided, however, if
any condition for payment is not fulfilled, Party A may refuse to pay such
invoice.
5.3 Any dispute between the Parties concerning the payment shall be settled in
accordance with the unit price listed in purchase order and the quantity of
delivery to Party B affirmed by the Parties.
6 QUALITY AND ACCEPTANCE
6.1 All products delivered to Party B shall conform to the standards of state
and industry.
6.2 Party B shall fax the shipment order to Party A upon shipment and Party A
shall, as quickly as possible, check the quantity and specification of
products upon delivery to the destination designated by Party A and shall
sign the shipment order at site.
7 LIABILITY
7.1 If Party B delays the delivery, damages as 1% of the total contract prices
under such purchase order shall be paid to Party A per each day delayed,
provided, however, the total amounts of such damages may not exceed 5% of
such total contract prices; if any delay exceeds 5 days, Party A may
terminate this Contract and require the payment of losses suffered
therefrom, or require the continuing performance of Party B and damages as
10% of the total contract prices under such purchase order.
7.2 Party A shall make payment within the time limit agreed, if Party A delays
the payment, damages as 0.1% of the total contract prices under such
purchase order shall be paid to Party B per each day delayed, provided,
however, the total amounts of such damages may not exceed 5% of such total
contract prices.
7.3 If the product delivered to Party A fails to satisfy the quality
requirements, the price abatement shall be made if Party A accepts such
product, provided, however, if Party A does not accept such product, Party
B shall be liable for the repair, replacement or recall of such product,
all expenses arising therefrom shall be borne by Party B, in addition,
damages as 10% of the total contract prices under such purchase order shall
be paid to Party A; if the product still fails to satisfy the requirements
<PAGE>
herein upon such repair or replacement, Party A may reject the same and
damages as 3 times of contract price of such product shall be paid to Party
A.
8 FORCE MAJEURE
If either Party fails to perform, partially or totally, its obligations
hereunder due to the occurrence of war, strike, natural disasters and any
other force majeure event, the Party affected shall make written notice
through fax to the other Party within 3 working days upon the occurrence of
such force majeure event and shall provide the written evidences certified
by the competent government authorities within reasonable period, in such
event, the Parties shall renegotiate the performance hereunder and the
obligations concerned may be exempted totally or partially.
9 SETTLEMENT OF DISPUTE
Any dispute or controversy arising from the performance hereof shall be
settled by the Parties through amiable negotiation, if fails, either Party
may bring a lawsuit before the People's Court where Party A is located.
This Contract shall be performed continually pending the settlement of
dispute except those under legal proceedings.
10 EFFECTIVENESS AND TERM
10.1 This Contract shall come into effect upon the signatures and seals by the
authorized representatives of the Parties. This Contract shall be executed
in quadruplication, each Party shall have two.
10.2 The term of this Contract shall be 12 months commencing from January 11,
2008 to January 10, 2009. This Contract may be extended if agreed by the
Parties within 30 days prior to the expiration hereof.
10.3 Any change or amendment to this Contract shall be in writing and sealed by
the Parties hereto.
PARTY A: PARTY B:
Name: Pacific (Jinjiang) Shoes Co., Ltd Huachang Footwear Materials Company
(seal) (seal)
Legal Representative: /s/ Li Haiting Legal Representative: /s/ Xxxx Xxxxxx
Agent: Agent:
Beneficiary Bank: Beneficiary Bank:
Account Number: Account Number:
Date: January 11, 2008 Date: January 11, 2008
