Document:

Agreement

Exhibit 10.2

BOTTLE SUPPLY AGREEMENT

This agreement is made this 25 day of November, 2010 by and between Hangzhou Yangcheng Company, Ltd (“Seller”) and Soton Holdings Group, Inc.  (“Buyer”). In consideration of the mutual promises herein contained and intending to be legally bound, both parties agree as follows:

1. REQUIREMENTS

1.1 Sale of Products. Upon the terms and conditions hereinafter set forth, during the terms of this Agreement, Seller agrees to supply and arrange to deliver to Buyer, and Buyer agrees to purchase, accept from Seller and pay for, 100% of its requirements for bottles (collectively, the “Bottles”), of the type, size and specifications set forth on Schedule “A” hereto (the “Specifications”), which may be changed from time to time upon written agreement signed by the Buyer and the Seller.

 

1.2  Purchase Price. Prices are stated in U.S. dollars (USD). The price to be paid by Buyer for each type of bottle shall be price USD 0.15 per Bottle as set forth in Schedule “B” hereto. The purchase price for each type of Bottle shall remain firm throughout the term of this Agreement unless Seller and Buyer agree otherwise in writing. 

2. TERM

2.1 Term. This agreement shall commence on the day of first shipment and shall continue for a period of 6 months, unless extended pursuant to Section 2.02.

2.2 Term Extension. This Agreement term shall be extended for additional 12 months term beyond the term set forth in Section 2.01 unless either party gives written notice to the other at least 30 days prior to the end of the original term.

3. SERVICE

3.1 Quantity of Bottles. During the term of this Agreement Buyer shall purchase a minimum of 100% of Bottles (the “Minimum Quantity”) from Seller as set forth in Schedule “B” hereto.

3.2 Ordering. Buyer may submit actual orders for Bottles by purchase order, provided that no term or condition set forth on any such purchase order other than quantity and requested delivery date shall be applicable to any Bottles so ordered.

4. PAYMENT

4.1 Payment Term. The advance payment is 30%; remaining 70% is due upon receipt by Buyer of Shipped Onboard Bill of Lading (B/L) by fax or e-mail. 

5. DELIVERY

5.1 Packaging. All Bottles will be bulk packed. 

5.2 Delivery. All deliveries will be FOB Ningbo/Shanghai.  Buyer shall pay all shipping costs from that point. 

6.    WARRANTIES

6.1 Warranty. Seller warrants that, at the time the Bottles are delivered to Buyer, the Bottles:

(a) will conform all the applicable Specifications;

(b) have been produced free from defects in manufacture;

6.2 Notification. Buyer must notify Seller of any breach of warranty claims without undue delay. Seller shall not be liable for any such claims unless Seller receives notice of the claim within 7 days after the date of delivery of the allegedly defective products at destination. Failure to make a claim within such period shall constitute a complete and irrevocable waiver of such claim. 

6.3 Exclusive Remedy. As Buyer’s exclusive remedy for a breach of warranty, Seller shall, at Buyer’s option, replace any defective Bottles at no additional costs to Buyer or credit Buyer for Buyer’s total out of pocket costs associated with purchase and delivery of the defective Bottles.

7.    LIMITATIONS

7.1 Force Majeure. If either of the party is unable to perform its obligations under this Agreement as a consequence of a delay or failure from any cause of event or beyond the control of such party, including but not limited to war, riots acts of God or public enemy, fire, explosions, flood, earthquake, strikes, lockouts, embargo, actions or other governmental authority, such party shall be excused from the performance of such obligations for the period of and to the extent of any such cause or event.

8. ADDITIONAL PROVISIONS

8.1 Notices. Any notice or written communication regarding this Agreement to Seller shall be sent by certified mail:

Hangzhou Yangcheng Company, Ltd

31 Yangcheng St

Xiaoshan District , Hangzhou China

Any such notices to Buyer shall be sent to the following address:

Soton Holdings Group, Inc.

375 N. Stephanie St., Suite 1411

Henderson, NV 89014-8909

Notwithstanding the foregoing, the parties hereto agree that each party shall be entitled to send purchase orders, invoices and documents related to the shipment of Bottles via e-mail or fax.

8.2 Entire Understanding. This Agreement contains the entire understanding between the parties with respect to the subject matter hereof, superseding all prior written or oral understandings or agreements. This Agreement may only be amended in writing signed by both parties.

8.3 Governing Law. The provisions of this agreement shall be governed by the laws of People’s Republic of China, and the parties agree that any disputes resulting from or related to this agreement are to be settled by the China International Economic and Trade Arbitration Commission (CIETAC) in Beijing pursuant to the Rules of this Court.

8.4 Counterparts. This agreement may be signed in counterparts, each of which counterpart so executed shall be deemed an original and such counterparts together shall constitute a single instrument bearing the date first written above. True and correct copies of signed originals hereof which are transmitted by facsimile may, in the absence of signed original copies, be considered legally binding and enforceable documents.

IN WITNESS WHEREOFF, the parties hereto have caused this Agreement to be executed on the day and year first above written.

SOTON HOLDINGS GROUP, INC.

By: /s/ Mariya Kokho, President

375 N. Stephanie St., Suite 1411

Henderson, NV 89014-8909

Tel: 702-9972116

Fax: 702-4468232

Date: November 25, 2010

HANGZHOU YANGCHENG COMPANY, LTD.

By: /s/ Ye You Fa, Director

31 Yangcheng St.

Xiaoshan District

Hangzhou China

Tel: 86-571-82172880

Fax: 86-571-82172887

Date: November 25, 2010

SCHEDULE “A”

SPECIFICATIONS

Size: 750 ml

Weight: 450 grams

Color: dark green

Design: Bordeaux Style

SCHEDULE “B”

PRICING

Price:  USD 0.15 per Bottle. 

Quantity (“Minimum Quantity”):  12,000 Bottles

Pricing:  based FOB Ningbo/Shanghaiexh10-1.htm

THIRD AMENDMENT TO CREDIT AGREEMENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT dated as of December 20, 2010 (this "Amendment"), is entered into among MATSON NAVIGATION COMPANY, INC. (the "Borrower"), the Lenders party hereto and FIRST HAWAIIAN BANK, as Agent (in such capacity, the "Agent").  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement.

RECITALS

A.           The Borrower, the Lenders and the Agent entered into that certain Credit Agreement dated as of December 28, 2006 (as amended and modified from time to time, the "Credit Agreement").

B.           The parties hereto have agreed to amend the Credit Agreement as provided herein.

C.           In consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows.

AGREEMENT

1.           Amendments.

(a)           Section 1.01.  The definition of "Applicable Rate" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

"Applicable Rate" means with respect to the Facility Fee, the Eurodollar Rate, the Base Rate and the Letter of Credit Fee, from time to time, the following percentages per annum, based upon the Debt Rating as set forth below:

(a)           At all times on or prior to December 28, 2011:

	
Pricing Level

	
Debt Ratings

S&P/Moody's

	
Facility Fee

	
Base Rate

	
Eurodollar Rate

	
Letter of Credit Fee

	
1

	
A-/A3 or better

	
0.075%

	
0.00%

	
0.225%

	
0.225%

	
2

	
BBB+/Baa1

	
0.100%

	
0.00%

	
0.275%

	
0.275%

	
3

	
BBB/Baa2

	
0.125%

	
0.00%

	
0.375%

	
0.375%

	
4

	
BBB-/Baa3 or worse

	
0.150%

	
0.00%

	
0.475%

	
0.475%

(b)           At all times after December 28, 2011:

	
Pricing Level

	
Debt Ratings

S&P/Moody's

	
Facility Fee

	
Base Rate

	
Eurodollar Rate

	
Letter of Credit Fee

	
1

	
A-/A3 or better

	
0.15%

	
0.25%

	
1.25%

	
1.25%

	
2

	
BBB+/Baa1

	
0.20%

	
0.50%

	
1.50%

	
1.50%

	
3

	
BBB/Baa2

	
0.25%

	
0.75%

	
1.75%

	
1.75%

	
4

	
BBB-/Baa3 or worse

	
0.30%

	
1.00%

	
2.00%

	
2.00%

 

 

In each case, (i) if the Borrower maintains more than one Debt Rating and (x) the respective Debt Ratings differ by one level, then the Pricing Level for the higher of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being the highest and the Debt Rating for Pricing Level 4 being the lowest); and (y) if there is a split in Debt Ratings of more than one level, then the Pricing Level that is one level lower than the Pricing Level of the higher Debt Rating shall apply; and (ii) if the Borrower does not have any Debt Rating, Pricing Level 4 shall apply.

 

Each change in the Applicable Rate resulting from a publicly announced change in a Debt Rating shall be effective upon the public announcement thereof and shall apply throughout the period ending on the date immediately preceding the effective date of the next such change, if any.

(b)           Section 1.01.  The definition of "Maturity Date" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

"Maturity Date" means December 28, 2012.  If such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

(c)           Section 2.02(a).  The fourth sentence of Section 2.02(a) of the Credit Agreement is amended and restated in its entirety to read as follows:

Each Borrowing of, conversion to or continuation of Eurodollar Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof.

(d)           Section 2.08(a).  Clause (ii) in Section 2.08(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate; and

2.           Effectiveness; Conditions Precedent.  This Amendment shall be effective upon satisfaction of the following conditions precedent:

(a)           Receipt by the Agent of this Amendment duly executed by the Borrower, the Required Lenders and each Lender extending its Commitment;

(b)           Receipt by the Agent of a certificate of a Responsible Officer of the Borrower, in form and substance satisfactory to the Agent attaching a certified copy of resolutions of the Borrower approving and adopting this Amendment and authorizing the execution and delivery of this Amendment;

(c)           Receipt by the Agent of a favorable opinion of legal counsel to the Borrower, addressed to the Agent and each Lender, dated as of the date hereof, and in form and substance reasonably satisfactory to the Agent;

(d)           Receipt by the Agent of evidence that the Commitment Reallocation provisions in Section 2.14 of the Credit Agreement have been terminated; and

(e)           Payment to each Lender executing this Amendment on or prior to December 20, 2010 of an amendment fee equal to 0.25% of such Lender's Commitment.

3.           Ratification of Credit Agreement.  The Borrower acknowledges and consents to the terms set forth herein and agrees that this Amendment does not impair, reduce or limit any of its obligations under the Loan Documents.

4.           Authority/Enforceability.  The Borrower represents and warrants as follows:

(a)           It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

(b)           This Amendment has been duly executed and delivered by such Person and constitutes such Person's legal, valid and binding obligations, enforceable in accordance with its terms.

(c)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment, or, if such consent is required, it has been obtained.

(d)           The execution and delivery of this Amendment does not (i) violate, contravene or conflict with any provision of its, or its Subsidiaries' Organization Documents or (ii) materially violate, contravene or conflict with any Laws applicable to it or any of its Subsidiaries.

5.           Representations and Warranties of the Borrower.  The Borrower represents and warrants to the Lenders that after giving effect to this Amendment (a) the representations and warranties of the Borrower set forth in Article V of the Credit Agreement are true and correct in all material respects as of the date hereof, and (b) no event has occurred and is continuing which constitutes a Default or an Event of Default.

6.           Counterparts/Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of executed counterparts of this Amendment by telecopy or pdf shall be effective as an original.

7.           GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

BORROWER:                                                      MATSON NAVIGATION COMPANY, INC.,

a Hawaii corporation

By:  /s/ Matthew J. Cox

Name:  Matthew J. Cox

Title:  President

By:  /s/ Paul K. Ito

Name:  Paul K. Ito

Title:  Treasurer

 

CHAR1\1193419v3

  

  

  

ADMINISTRATIVE

AGENT:                                           FIRST HAWAIIAN BANK,

as Agent

By:  /s/ Jeffrey N. Higashi

Name:  Jeffrey N. Higashi

Title:  Senior Vice President

LENDERS:                                           FIRST HAWAIIAN BANK,

as Lender and Swing Line Lender

By:  /s/ Jeffrey N. Higashi

Name:  Jeffrey N. Higashi

Title:  Senior Vice President

BANK OF AMERICA, N.A.,

as Lender

By:  /s/ Gordon H. Gray

Name:  Gordon H. Gray

Title:  Senior Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Lender

By:  /s/ Sid Khanolkar

Name:  Sid Khanolkar

Title:  Vice President

BNP PARIBAS,

as Lender

By:  /s/ Todd Rodgers

Name:  Todd Rodgers

Title:  Director

By:  /s/ Mary-Ann Wong

Name:  Mary-Ann Wong

Title:  Vice President

AMERICAN SAVINGS BANK, F.S.B,

as Lender

By:  /s/ Larry Ishii

Name:  Larry Ishii

Title:  Vice President

BANK OF HAWAII,

as Lender

By:  /s/ Marc Adelberger

Name:  Marc Adelberger

Title:  Vice President

 

CHAR1\1193419v3

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