Document:

ex10-3.htm

Exhibit 10.3

 

 

INTELLECTUAL PROPERTY RIGHTS TRANSFER AGREEMENT

THIS INTELLECTUAL PROPERTY RIGHTS TRANSFER AGREEMENT (this “Agreement”) is made and entered into as of this January 7, 2011 (the “Effective Date”), by and between Nova Furniture (Dongguan) Co., Ltd, a company organized under the laws of the People’s Republic of China (the “PRC”) (“Company” or “Licensee”) and Yaming Wong (“Licensor”).

RECITALS

A.           Licensor owned the patents identified in Schedule A hereto (the “Patents”), which are used in connection with the business of the Company.

B.           Licensor agreed to transfer to Licensee the Patents (the “Initial Agreement”), whereby Licensor transferred the Patents to Licensee.

C.           Until the transfer of the Patents has been approved (the “Official Approval”) by the State Intellectual Property Office of the PRC (“SIPO”), the Licensee has user rights with respect to the Patents.

D.           Licensor and Licensee are entering into this Agreement to establish the terms of the License (as defined in Section 1(a) hereof).

E.           Licensor desires the ownership of any and all patents, trademarks, copyrights and trade secrets, know-how, plans, designs, any other intellectual property or proprietary rights recognized in any country or jurisdiction worldwide, including, without limitation, moral rights and similar rights (collectively, the “Intellectual Property”) arising out of the past or future businesses of the Company or any wholly owned subsidiary of the Company (each a “Company Entity,” collectively the “Company Entities”) to be owned exclusively by a Company Entity.

NOW, THEREFORE, the parties, intending to be legally bound, hereby agree as follows:

1.           Transfer of Patents

(a)           Transfer of Patents.  Licensor hereby transfers all of Licensor’s rights, title and interests in and to the Patents, together with any and all of the rights attached thereto, to the Licensee (“Transfer”) in exchange for good and valuable consideration, the receipt of which is acknowledged hereby. The Licensee and Licensor acknowledge that the Licensor has user rights to the Patents until the Transfer of ownership receives Official Approval, at which time the ownership shall be transferred to Licensor under the laws of the PRC.

(b)           Registration of the Transfer.  Licensor undertakes to register the Transfer with the SIPO within a reasonable timeframe acceptable to Licensee. Licensor further undertakes to execute any and all such further documents and take any and all such further actions as may be required to complete the aforesaid registration of the Transfer, with assistance as may be reasonably requested from the Licensee.

2.           Grant of License

(a)           License to Use Intellectual Property.  Licensor hereby grants to Licensee a license (the “License”), effective as of the date hereof, to the world-wide, exclusive, royalty-free, sub-licenseable, assignable, and irrevocable right to use, reproduce, distribute (through one or more tiers), create derivative works of, publicly perform, publicly display, digitally perform, make, and have, in any media now known or hereafter known, the Patents and all other Intellectual Property, and all improvements, modifications and enhancements made by Licensor or Company, and all derivative works thereof, which may not be cancelled by the Licensor.

(b)           Registration of the License. Licensor undertakes to file the License with the competent PRC government authorities for recordal pursuant to the applicable PRC regulations. Licensor further undertakes to execute any and all such further documents, and take any and all such further actions as may be required, to complete the aforesaid filing of the License, with assistance as may be reasonably requested from the Licensee.

 

  

1

  

 

3.           Warranties.  Licensor shall maintain the registration of the Patents and any other Intellectual Property required to be registered through timely renewal and payment of annual fees where applicable until such time as the ownership of the relevant Patents and Intellectual Property have been effectively transferred to the Company pursuant to PRC laws.

4.           Future Intellectual Property.  Licensor agrees that all Intellectual Property owned by it arising out of the past or future operations of a Company Entity not transferred pursuant to this Agreement shall be owned exclusively by a Company Entity and Licensor shall take all such steps necessary to transfer the ownership of any such Intellectual Property not transferred pursuant to Section 1(b) hereof. Until the transfer of all such Intellectual Property receives Official Approval, such Company Entity shall have a License to such Intellectual Property as set forth in Section 1(a) hereof.

5.           Limitation of Liability.

IN NO EVENT SHALL LICENSOR BE LIABLE WITH RESPECT TO ITS OBLIGATIONS HEREUNDER OR OTHERWISE FOR INCIDENTAL, SPECIAL, INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES (INCLUDING FOR LOST PROFITS, LOSS OF DATA, AND BUSINESS OPPORTUNITY) SUFFERED BY LICENSEE OR ANY THIRD PARTY.

6.           Term and Termination. The term (“Term”) of this Agreement shall commence upon the date hereof, and continue perpetually.

7.           General Provisions.

(a)           Notices.  All notices and demands hereunder shall be in writing and shall be served by personal service or by mail at the address of the parties set forth following their signatures (or at such different address as may be designated by such party by written notice to the other party). All notices or demands by mail shall be by certified or registered mail, return receipt requested, or by nationally-recognized private express courier, and shall be deemed complete upon receipt.

(b)           Governing Law.  This Agreement shall be governed by and construed in accordance with the substantive laws of the PRC, without regard to principles of conflict of laws. Licensor and Licensee each agree that any dispute between the parties arising from or in connection with this Agreement shall be submitted to the China International Economic and Trade Arbitration Commission for arbitration in accordance with its Arbitration Rules then in force. The arbitration award shall be final and binding upon the parties. During the arbitration period, except for any matters under arbitration, the parties shall continue to perform this Agreement.

(c)           Force Majeure.  No party shall be responsible for delays or failure of performance resulting from acts beyond the reasonable control of such party. Such acts shall include, but not be limited to, acts of God, strikes, walkouts, riots, acts of war, epidemics, failure of suppliers to perform, governmental regulations, power failure(s), earthquakes, or other disasters. Performance times shall be considered to be extended for a period of time equivalent to the time lost because of such delay.

(d)           Headings.  The titles and headings of the various sections and paragraphs in this Agreement are intended solely for convenience of reference and are not intended for any other purpose whatsoever or to explain, modify, or place any construction on any of the provisions of this Agreement.

(e)           All Amendments in Writing.  No supplement, modification, or amendment of this Agreement shall be binding, unless executed in writing by a duly authorized representative of each party to this Agreement.

(f)           No Waiver.  A failure of any party hereto to exercise any right provided for herein shall not be deemed to be a waiver of any right hereunder.

(g)           Entire Agreement.  The parties have read this Agreement and agree to be bound by its terms, and further agree that it, together with all Schedules hereto (the terms of which are incorporated herein by this reference), constitutes the complete and entire agreement of the parties and supersedes all and merges all previous communications, oral or written, and all other communications between them relating to the subject matter hereof. No representations or statements of any kind made by any party hereto that are not expressly stated herein shall be binding on such party. In case the parties hereto execute such further documents pursuant to Sections 1 and 2 hereof and there is any conflict or inconsistency between such other documents and this Agreement, this Agreement shall prevail.

 

  

2

  

 

(h)           Counterparts.  This Agreement may be executed through the use of separate signature pages or in any number of counterparts and each of such counterparts shall, for all purposes, constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. This Agreement may be executed and delivered via electronic facsimile transmission with the same force and effect as if it were executed and delivered by the parties simultaneously in the presence of one another.

(i)           Severability.  In the event that any provision of this Agreement is held invalid by a court with jurisdiction over the parties, such provision shall be deemed to be restated to be enforceable, in a manner which reflects, as nearly as possible, the original intentions of the parties in accordance with applicable law. The remainder of this Agreement shall remain in full force and effect.

[Signature Page Follows]

 

  

3

  

 

 

IN WITNESS WHEREOF, the parties, intending to be legally bound, have executed this Agreement by their duly authorized representatives as of the date set forth above.

NOVA FURNITURE (DONGGUAN) CO., LTD.

	
By:

	
/s/ Yaming Wong

	 
	
Name:

	
Yaming Wong

	 
	
Title:

	
Chairman

	 
	
Address:

	
Nange Industrial Village, Nanya Dao

Jiao, Dongguan, China

	 

YAMING WONG

	
By:

	
/s/ Yaming Wong

	 
	
Address:

	
c/o Nova Furniture (Dongguan) Co., Ltd.

FLAT A, 65/F, TOWER 1, SORRENTO, TST,

KOWLOON, HONG KONG

	 

 

  

4

  

 

	
No.

	
Patent Name

	
Cert. No.

	
Patent No.

	
Owner

	
Expiration Date

	
1

	
Sofa_SF-807

	
1069972

	
200830220703

	
Yaming Wong

	
12/01/2011

	
2

	
Sofa_SF-808

	
1059758

	
200830220708.3

	
Yaming Wong

	
12/01/2011

	
3

	
Sofa_SF-811

	
1071147

	
200830220706.4

	
Yaming Wong

	
12/01/2011

	
4

	
Sofa_SF-817

	
1070261

	
200830220704.5

	
Yaming Wong

	
12/01/2011

	
5

	
Sofa_SF-818

	
1070430

	
200830222047.8

	
Yaming Wong

	
12/15/2011

	
6

	
Sofa_SF-819

	
1070282

	
200830222048.2

	
Yaming Wong

	
12/15/2011

	
7

	
Sofa_SF-820

	
1108717

	
200830223623

	
Yaming Wong

	
12/30/2011

	
8

	
Sofa_SF-956

	
1280929

	
200930251385.9

	
Yaming Wong

	
10/23/2011

	
9

	
Sofa_SF-961

	
1356841

	
200930251341.6

	
Yaming Wong

	
10/23/2011

	
10

	
Sofa_SF-929

	
1280861

	
200930251290.7

	
Yaming Wong

	
10/23/2011

	
11

	
Sofa_SF-831

	
1280854

	
200930251278.6

	
Yaming Wong

	
11/23/2011

	
12

	
Sofa_SF-833

	
1280885

	
200930251329.5

	
Yaming Wong

	
10/23/2011

	
13

	
Sofa_SF-836

	
1356838

	
200930251327.6

	
Yaming Wong

	
10/23/2011

	
14

	
Sofa_SF-838

	
1356839

	
200930251330.8

	
Yaming Wong

	
10/23/2011

	
15

	
Sofa_SF-839

	
1363061

	
200930251328

	
Yaming Wong

	
10/23/2011

	
16

	
Sofa_SF-913

	
1363062

	
200930251337.1

	
Yaming Wong

	
10/23/2011

	
17

	
Sofa_SF-935

	
1356840

	
200930251338.4

	
Yaming Wong

	
10/23/2011

	
18

	
Sofa_SF-936

	
1280900

	
200930251350.5

	
Yaming Wong

	
10/23/2011

	
19

	
Sofa_SF-938

	
1280886

	
200930251331.2

	
Yaming Wong

	
10/23/2011

	
20

	
Sofa_SF-939

	
1280855

	
200930251279

	
Yaming Wong

	
10/23/2011

	
21

	
Sofa_SF-960

	
1280892

	
200930251340.1

	
Yaming Wong

	
10/23/2011

	
22

	
Chair_114

	
1280899

	
200930251349.2

	
Yaming Wong

	
10/23/2011

	
23

	
Sofa_SF-15

	
1280867

	
200930251307.9

	
Yaming Wong

	
10/23/2011

	
24

	
Chair_ST-13

	
1287123

	
200930251311.5

	
Yaming Wong

	
10/23/2011

	
25

	
Table_0758

	
1280926

	
200930251382.5

	
Yaming Wong

	
10/23/2011

	
26

	
Table_0762

	
1280917

	
200930251370.2

	
Yaming Wong

	
10/23/2011

	
27

	
Table_0742

	
1280853

	
200930251277.1

	
Yaming Wong

	
10/23/2011

	
28

	
Table_0726

	
1280856

	
200930251284.1

	
Yaming Wong

	
10/23/2011

	
29

	
Table_0703A

	
1280871

	
200930251313.4

	
Yaming Wong

	
10/23/2011

	
30

	
Table_0761

	
1280935

	
200930251441.9

	
Yaming Wong

	
10/23/2011

	
31

	
Table_7-209

	
1280934

	
200930251440.4

	
Yaming Wong

	
10/23/2011

	
32

	
Table_0751

	
1280864

	
200930251303

	
Yaming Wong

	
10/23/2011

	
33

	
Table_0757

	
1280863

	
200930251302.6

	
Yaming Wong

	
10/23/2011

	
34

	
Table_0763

	
1280873

	
200930251315.3

	
Yaming Wong

	
10/23/2011

	
35

	
Table_0764

	
1356842

	
200930251343.5

	
Yaming Wong

	
10/23/2011

	
36

	
Table_0718A

	
1280879

	
200930251321.9

	
Yaming Wong

	
10/23/2011

	
37

	
BarTable_HB-28

	
1280845

	
200930251258.9

	
Yaming Wong

	
10/23/2011

	
38

	
Chair_1001

	
1280846

	
200930251259.3

	
Yaming Wong

	
10/23/2011

	
39

	
Chair_996

	
1280890

	
200930251335

	
Yaming Wong

	
10/23/2011

	
40

	
Chair_995

	
1280889

	
200930251334.6

	
Yaming Wong

	
10/23/2011

	
41

	
Chair_116B

	
1280888

	
200930251333.1

	
Yaming Wong

	
10/23/2011

	
42

	
Chair_994

	
1280868

	
200930251308.3

	
Yaming Wong

	
10/23/2011

	
43

	
Chair_980

	
1280852

	
200930251276.7

	
Yaming Wong

	
10/23/2011

	
44

	
Chair_123

	
1280908

	
200930251360.9

	
Yaming Wong

	
10/23/2011

	
45

	
Chair_828B

	
1280880

	
200930251322.3

	
Yaming Wong

	
10/23/2011

	
46

	
BarChair_053

	
1280869

	
200930251309.8

	
Yaming Wong

	
10/23/2011

	
47

	
BarChair_066

	
1280847

	
200930251260.6

	
Yaming Wong

	
10/23/2011

	
48

	
Chair_MC-8101

	
1280930

	
200930251386.3

	
Yaming Wong

	
10/23/2011

	
49

	
CoffeeTable_CT-536

	
1280866

	
200930251306.4

	
Yaming Wong

	
10/23/2011

	
50

	
CoffeeTable_CT-336

	
1280865

	
200930251305.X

	
Yaming Wong

	
10/23/2011

	
51

	
CoffeeTable_CT-752

	
1280914

	
200930251366.6

	
Yaming Wong

	
10/23/2011

	
52

	
CoffeeTable_7-204A

	
1280907

	
200930251359.6

	
Yaming Wong

	
10/23/2011

	
53

	
CoffeeTable_WU25-03

	
1280916

	
200930251368.5

	
Yaming Wong

	
10/23/2011

	
54

	
CoffeeTable_CT-648A

	
1280872

	
200930251314.9

	
Yaming Wong

	
10/23/2011

 

  

A-1

  

 

	

No.

	

Patent Name

	

Cert. No.

	

Patent No.

	

Owner

	

Expiration Date

	
55

	
CoffeeTable_CT-718

	
1280877

	
200930251319.1

	
Yaming Wong

	
10/23/2011

	
56

	
CoffeeTable_CT-764

	
1280894

	
200930251344.X

	
Yaming Wong

	
10/23/2011

	
57

	
CoffeeTable_7-204

	
1280884

	
200930251326.1

	
Yaming Wong

	
10/23/2011

	
58

	
CoffeeTable_CT-742

	
1280882

	
200930251324.2

	
Yaming Wong

	
10/23/2011

	
59

	
CoffeeTable_CT-753

	
1280891

	
200930251336.5

	
Yaming Wong

	
10/23/2011

	
60

	
Nightstand_WU25-05

	
1280915

	
200930251367

	
Yaming Wong

	
10/23/2011

	
61

	
Nightstand_CE-752

	
1280970

	
200930251310

	
Yaming Wong

	
10/23/2011

	
62

	
Shelf_WU23(1+2+3)

	
1280923

	
200930251379.3

	
Yaming Wong

	
10/23/2011

	
63

	
TVstand_WU25-02

	
1280902

	
200930251352.4

	
Yaming Wong

	
10/23/2011

	
64

	
TVstand_7-202

	
1280862

	
200930251291.1

	
Yaming Wong

	
10/23/2011

	
65

	
TVstand_WU25-02B

	
1280912

	
200930251364.7

	
Yaming Wong

	
10/23/2011

	
66

	
TVstand_K-753

	
1280928

	
200930251384.4

	
Yaming Wong

	
10/23/2011

	
67

	
TVstand_K-718

	
1280876

	
200930251318.7

	
Yaming Wong

	
10/23/2011

	
68

	
TVstand_K-399

	
1280896

	
200930251346.9

	
Yaming Wong

	
10/23/2011

	
69

	
TVstand_WU250-02R

	
1280910

	
200930251362.8

	
Yaming Wong

	
10/23/2011

	
70

	
TVstand_WU05-02L

	
1280909

	
200930251361.3

	
Yaming Wong

	
10/23/2011

	
71

	
TVstand_K-764

	
1280895

	
200930251345.4

	
Yaming Wong

	
10/23/2011

	
72

	
TVstand_TV-36C

	
1280898

	
200930251348.8

	
Yaming Wong

	
10/23/2011

	
73

	
Tvstand_WU25-02A

	
1280906

	
200930251358.1

	
Yaming Wong

	
10/23/2011

	
74

	
JewelryStorage_WU25-11A

	
1280905

	
200930251357.7

	
Yaming Wong

	
10/23/2011

	
75

	
Cupboard_W-719BF

	
1280897

	
200930251347.3

	
Yaming Wong

	
10/23/2011

	
76

	
Cupboard_WU25-11

	
1280931

	
200930251387.8

	
Yaming Wong

	
10/23/2011

	
77

	
JewelryStorage_W-738

	
1280911

	
200930251363.2

	
Yaming Wong

	
10/23/2011

	
78

	
JewelryStorage_WU25-07

	
1280903

	
200930251353.9

	
Yaming Wong

	
10/23/2011

	
79

	
JewelryStorage_W-753

	
1280927

	
200930251383.X

	
Yaming Wong

	
10/23/2011

	
80

	
Divider_M-8419

	
1280881

	
200930251323.8

	
Yaming Wong

	
10/23/2011

	
81

	
DividerShelf_WU23-5

	
1280924

	
200930251380.6

	
Yaming Wong

	
10/23/2011

	
82

	
DividerShelf_W25-01R

	
1280922

	
200930251378.9

	
Yaming Wong

	
10/23/2011

	
83

	
DividerShelf_W-174H

	
1280858

	
200930251287.5

	
Yaming Wong

	
10/23/2011

	
84

	
Dresser_W25-18

	
1280936

	
200930251442.3

	
Yaming Wong

	
10/23/2011

	
85

	
Nightstand_7-217

	
1280913

	
200930251365.1

	
Yaming Wong

	
10/23/2011

	
86

	
Dresser_WU25-19

	
1280920

	
200930251375.5

	
Yaming Wong

	
10/23/2011

	
87

	
Sideboard_W23-4

	
1280925

	
200930251381

	
Yaming Wong

	
10/23/2011

	
88

	
Sideboard_W-400

	
1280859

	
200930251288.X

	
Yaming Wong

	
10/23/2011

	
89

	
Sideboard_7-208

	
1280857

	
200930251286

	
Yaming Wong

	
10/23/2011

	
90

	
Sideboard_WU25-08

	
1280918

	
200930251371.7

	
Yaming Wong

	
10/23/2011

	
91

	
Sideboard_WU04-7H

	
1283887

	
200930251304.5

	
Yaming Wong

	
10/23/2011

	
92

	
Sideboard_W-752

	
1280844

	
200930251257.4

	
Yaming Wong

	
10/23/2011

	
93

	
Sideboard_W-718

	
1280878

	
200930251320.4

	
Yaming Wong

	
10/23/2011

	
94

	
Sideboard_W-764

	
1280893

	
200930251342

	
Yaming Wong

	
10/23/2011

	
95

	
Sideboard_W-742

	
1280883

	
200930251325.7

	
Yaming Wong

	
10/23/2011

	
96

	
LiquorCabinet_HB-399

	
1280860

	
200930251289.4

	
Yaming Wong

	
10/23/2011

	
97

	
LiquorCabinet_6-213

	
1280937

	
200930251443.8

	
Yaming Wong

	
10/23/2011

	
98

	
LiquorCabinet_W25-13R

	
1280921

	
200930251377.4

	
Yaming Wong

	
10/23/2011

	
99

	
LiquorCabinet_WU25-13A

	
1280904

	
200930251374

	
Yaming Wong

	
10/23/2011

	
100

	
LiquorCabinet_WU25-13

	
1280919

	
200930251356.2

	
Yaming Wong

	
10/23/2011

	
101

	
LiquorCabinet_HB-742A

	
1280851

	
200930251275.2

	
Yaming Wong

	
10/23/2011

	
102

	
LiquorCabinet_HB-753

	
1280887

	
200930251332.7

	
Yaming Wong

	
10/23/2011

	
103

	
ShoeShelf_6-206

	
1359912

	
200930251285.6

	
Yaming Wong

	
10/23/2011

	
104

	
ShoeShelf_W-742B

	
1280874

	
200930251316.8

	
Yaming Wong

	
10/23/2011

	
105

	
ShoeShelf_WU25-06

	
1280901

	
200930251351.X

	
Yaming Wong

	
10/23/2011

	
106

	
ShoeShelf_W-718A

	
1280875

	
200930251317.2

	
Yaming Wong

	
10/23/2011

  

A-2ex10-4.htm

Exhibit 10.4

English Translation

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

NOVA Lifestyle Home Furniture Franchise Agreement

 

Party A:                      Nova Furniture (Dongguan) Co., Ltd.

Address:                     Nova Furniture Industrial Garden, Daojiao Town, Dongguan City

Zip Code:                    523000

Telephone:                  0769—88386441         0769—88313446

Facsimile:                   0769—88313449         0769—88386442

Email:

Website:

Party B:

Franchise Address:

Mailing Address:

Zip Code:

Telephone:                                                               Cell Phone:

Facsimile:                                                                Email:

Franchisee Representative:                                 ID Number:

Article One:                                General

Pursuant to the << Contract Law of People’s Republic of China>> and relevant rules or regulations, Party B purchases NOVA Lifestyle home furniture product, and Party A agrees to sell a specified series of NOVA Lifestyle product to Party B in the designated territory set forth by this contract, and to promote the sale and to advise the product under the terms and conditions of this contract. Based on the principle of voluntariness, equality and honesty, and through friendly negotiation, both parties hereby enter the following agreements:

Article Two:                                Definition

 

	
2.1.  

	
Any “regular product” in this contract means the product in the regular sale or the new arrival, but excludes the customer-made, decorative product and product on sale; a “store-within-store” means the NOVA Lifestyle franchise established and operated in the department store.

	
2.2.  

	
Any “single unit franchisee” mentioned in this contract means Party B is only authorized to sell the NOVA Lifestyle product in a single unit franchise.

	
2.3.  

	
Any “force majeure” mentioned in this contract means an unpredictable, unavoidable and incurable occurrence or event (including act of god, war, state action and etc.)

	
2.4.  

	
Any title of article is made for attention only and shall not have effect on the explanation to this contract.

Article Three:                            Qualification of Party B

 

	
3.1.  

	
Party B guarantees it is a person or a corporation that is registered and established under the laws of P.R.China. It is fully capable of contractibility and competent to enter this contract (any person who signs this contact in a personal capacity should be associated with a corporation that is registered and established under the laws of P.R.China). It is capable of possessing sufficient funds to market Party A’s product in the designated territory, and complying with the relevant law and regulations, operating  its business according to the law and not getting involved with any illegal activity.

	
3.2.  

	
Party B shall present an original and provide with a photocopy of ID and a valid business license at the same time prior to the signature of this contract. Within ten days commencing from the date of contract, Party B shall provides Party A with a directory of its investors (shareholders), senior managers and valid legal documents issued by the industrial and commercial officials. Party B shall not provide Party A with any fraudulent information or document.

 

  

1

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

 

	
3.3.  

	
If Party B signs the contract in a personal capacity, such person is deemed the only contracting party to Party A and Party A will not recognize Party B’s associates other than Party B himself/herself (excluding the associates of Party B already in Party A’s record).

	
3.4.  

	
For any change of documents or licenses in the aforesaid, Party B shall notify Party A within three business days commencing from the date of change.

Article Four:                              Terms of Contract

 

	
4.1.  

	
The term of contract starts from ____ Year ____ month ____ day and ends ____ year ____ month ____ day, unless revoked or terminated in advance as specified by this contract.

	
4.2.  

	
If Party B wishes to renew at the end of contract, it shall submit its renewal written application one month before the end of the contract, which is subject to the written approval of Party A. If Party B does not submit a written application in a timely fashion specified in the aforementioned, Party A reserves the right to revoke the franchisee’s license and withdraw the authorization at the end of contract.

	
4.3.  

	
If Party B is a first-time franchisee, it shall follow the <<Annual Business Plan and Incentives>> and make progress with the plan accordingly. A three-month delay to such plan will result in the termination of this contract and Party B’s performance bond will not be returned.

Article Five:                                Product and Tradename Franchising and Exclusive Territory

 

	
5.1.  

	
Party B shall operate the contractual commercial activity only in the territory designated by Party A.

	
5.2.  

	
Party A authorizes Party B as an exclusive franchisee for ________ Brand ________ Series in the territory of ________ Province ________ (City) Borough (The only authorized channels include single unit franchise,  professional furniture store, store-within-store or any other channels authorized by Party A).

	
5.3.  

	
Party B shall only operate and market its business within the designated territory as agreed and shall not engage in cross-border business, selling the product over the designated area or marketing the product through any channel other than the authorized.

	
5.4.  

	
Party B shall strictly follow the <<Annual Business Plan and Incentives>>; Unless Party B opens the second store or store-within-store pursuant to <<Annual Business Plan and Incentives>> or it completes the annual business plan, Party A guarantees that it will not authorize a third party who located in the same city (borough) as Party B as its franchisee (unless otherwise contracted between the parties).

	
5.5.  

	
The group order coming from Party B’s territory and made directly by the corporation is not covered by the authorization.

Article Six:                                Place of Franchise

 

	
6.1.  

	
Party B shall provide a store conforming to Party A’s specification (the usable area shall not be less than 200 square meters) as its place of business and operate it in the form of franchise.

	
6.2.  

	
All of Party B’s franchise shall be reported to and only opened upon the written approval of Party A. All franchise (store-within-store) shall be decorated (including renovation of old store) in compliance with Party A’s requirement. Party A shall issue the letter of authorization after its inspection. Party B is responsible for the expense of decoration, but Party A shall rebate the decoration at a rate of ______ yuan/square meters as agreed by both parties; if the inspection is failed, Party B must rectify in a set period of time, with expense on it. As soon as the rectification is done and passes Party A’s inspection, Party B is allowed to open the franchise. Party B shall maintain the decoration in good condition and shall not remove or replace at will. If damaged, it shall be repaired timely.

	
6.3.  

	
Party A’s rebate of decoration expense is payable as following: upon the completeness of decoration and Party A’s satisfied inspection, _____% shall be rebated, the balance shall be rebated at the rate of ____% of each supply payment. The issuance of monthly rebate is made no later than each fifth day of next month by offset of purchase amount.

	
6.4.  

	
Whenever Party A requires the change of decoration as needed by the operation of business and the maintenance of brand name image, Party B shall re-decorate the store as required by Party A, with expense on Party B.

 

  

2

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

	
6.5.  

	
During Party B’s operation, whenever the place of franchise fails to meet the contractual requirement, or the suspension of  Party B’s operation resulting from the place of franchise, business license or capital flow, or the franchise ceases to operate without Party A’s approval (except for force majeure), Party A reserves right to unilaterally terminate this contract without any liability.

	
6.6.  

	
If Party B reduces the number of franchise or suspends the operation due to the force majeure, the failure to open new franchise or restore the operation within two months after the date of reduction or elimination of effect by force majeure is deemed that Party B failed to comply with the current <<Annual Business Plan and Incentives>> (Appendix One).

	
6.7.  

	
Without Party A’s written approval, Party B shall neither assign or transfer the right of operation and use in disguised form, nor shall it sublet to any third party, or engage in associated operation or sale with any third party by use of the site or grant of franchise; any Party B’s execution in the aforesaid is revocable and deemed Party B’s breach of contract.

Article Seven:                            Intellectual Property and Safeguard of Brand

 

	
7.1.  

	
After Party B becomes Party A’s franchisee, Party A grants Party B the following rights in the designated territory:

	
1  

	
to use the name of “NOVA Lifestyle” as agreed by this contract;

	
2  

	
to sell Party A’s product in the name of Party A’s franchisee;

	
3  

	
to use Party A’s trademark or relevant tradename in the decoration or layout of franchise (store-within-store).

	
7.2.  

	
Without Party A’s written approval, Party B shall not transfer or assign this contract to any third party.

	
7.3.  

	
If Party B needs to advertise the product within the designated area of sale (including but not limited to outdoor advertisement, catalog, posters and etc.), any use of Party A’s trademark, tradename, logo art, photography or any other work contained intellectual property in the content of advertisement requires Party A’s written approval in the first place. Such content cannot change or alter the trademark or logo and is only allowed to release after the local supervising authority approves it.

	
7.4.  

	
Party B has duty to uphold the image of NOVA Lifestyle and its reputation. Party B shall not engage in any conduct to taint the image of NOVA Lifestyle or damage its reputation. Party B shall also timely report any third party’s infringement to Party A’s intellectual property or any other benefit and it shall cooperate with Party A’s safeguard activity.

Article Eight:                             Business Plan and Sale

 

	
8.1.

	
Both parties shall start negotiation one month before the end of concurrent <<Annual Business Plan and Incentives>> and decides the next <<Annual Business Plan and Incentives>>.

	
8.2.  

	
If Party B fails to complete the annual purchase plan set by the <<Annual Business Plan and Incentives>> or fails to complete the monthly purchase plan for three accumulated months, or fails to open NOVA Lifestyle franchise as planned in a limited period of time, Party A reserves right to unilaterally terminate this contract or narrow Party B’s authorized territory of sale by written notice and without any liability imposed thereto.

	
8.3.  

	
Party A shall provide the display of product and necessary training to Party B’s staff; Party B shall transport its staff to the training place designated by Party A, with cost and expense on Party A.

	
8.4.  

	
 Party A shall communicate with Party B with the most recent updated information and marketing policy, and shall assist with Party B’s compliance of such. Party A guarantees its product to meet the standard state of art in quality and its delivery in the time-frame set and agreed by both parties.

	
8.5.  

	
Party A has duty to design the layout for Party B’s new franchise with cost and expense on Party A.

	
8.6.  

	
Party B shall display the franchise to meet Party A’s standard and comply with Party A’s Management and Assessment Rules (Appendix Two). Any non-NOVA Lifestyle product or counterfeit is prohibited from being sold in NOVA franchise. Party A reserves right to enter Party B’s franchise at any time for inspection. If any non-NOVA Lifestyle product or unauthorized product by Party A is sold in the franchise is found, Party A shall have right to photograph. Any Party B’s attempt to prevent Party A’s employee from entering the franchise or photographing is considered as Party B’s breach of contract by selling the non-NOVA Lifestyle product or unauthorized product by Party A, or failing to display in compliance with Party A’s requirement.

 

  

3

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

 

	
8.7.  

	
Party B shall maintain sufficient fund for Party A’s product and is prohibited from making excuse for any shortage of the variety or series of Party A’s product demanded by the market. Party B shall strictly comply with the rules of product structure set forth by Party A.

	
8.8.  

	
Party B shall follow Party A’s marketing and pricing policy. Party B shall not raise or lower the price at will, and raise or lower price in disguised form, unless approved by Party A in certain circumstance; Party A reserves right to depends on the market to adjust, change its marketing or pricing policy. Such adjustment and change take effect on the designated date and will be notified to Party B in writing.

	
8.9.  

	
Party B shall actively cooperate with Party A’s promotion and other relevant activity. If Party B wishes to carry on promotion or any other commercial activity on its own, a written approval from Party A shall be obtained and recorded. If Party B releases advertisement without Party A’s approval and causes damage, it shall be held liable for such damage and Party A reserves right to claim the damage from Party B.

	
8.10.  

	
Party B shall provide the market review in writing prior to the 28th day of each month and shall conduct quarterly order estimate.

	
8.11.  

	
Party A shall timely provide the new product to Party B as soon as it is available. If Party B does not cooperate with the promotion of any new product or other home products, Party A reserves the right to authorize other distributor in such territory to sell.

	
8.12.  

	
Party A reserves the right to check Party B’s inventory, service quality, financial statement, accounting books and all other matters in relation to business activities, and Party B has duty to actively cooperate.

	
8.13.  

	
As required by Party A, Party B shall provide the customers with relevant product information, including performance, service policy and application service. Party B shall commit to the post-sale customer service.

	
8.14.  

	
Party B shall accept the return of defective product and remedy in accordance with Party A’s return policy and procedure.

	
8.15.  

	
If Party B fails to catch up with the annual store opening plan and purchase plan set forth by the <<Annual Business Plan and Incentives>>, Party A reserves right to terminate the contract unconditionally.

	
8.16.  

	
Party B shall purchase and install the necessary office and communication devices as required by Party A and be equipped with designated software by Party A.

Article Nine:                              Performance Bond

 

	
9.1.  

	
In three days commencing from the date of contract, Party B shall deliver performance bond of RMB THIRTY thousand yuan to Party A. If Party B timely performs this contract, at the end of this contract, such performance bond will be returned without any interest if no renewal is made between contracting parties and Party B performs Article Eleven under this contract. If Party B cannot perform this contract, which results in the early termination or revocation, the performance bond would not be returned.

Article Ten:                                Supply and Sale of Product

 

	
10.1.  

	
Order

Party A shall supply the franchise on the basis of “first order, first delivery.” Party B shall submit its order plan in advance and issues irrevocable written order (“order” in short) for purchase. The order for product on sale shall be submitted with 30-days notice, while the other shall be submitted as specified by Party A or agreed by both parties. Party A shall schedule its production in accordance with Party B’s order.

	
10.2.  

	
Price

Party A reserves right to rely on the fluctuation of raw material price and the market demand to adjust wholesale price and retail price, but it shall provide Party B with one month notice regarding the new pricing system.

	
10.3.  

	
Payment

Within three days commencing from the date of order, Party B shall submit the payment to Party A by cash or wire. As soon as the payment is transmitted to Party A’s account, the goods shall be shipped in no later than fifteen business days, unless special condition applies. If the delay of shipment is caused by Party B’s late payment, Party B shall be held liable for any damage therefrom.

 

  

4

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

 

	
10.4.  

	
Delivery

Place of Delivery: the warehouse of Party A or the designated shipping station by Party B

Party B can authorize Party A as its agent for shipping; Party A reserves right to handle the shipping for Party B and delivers the goods in its best effort to the place designated by both parties, with the shipping expense and insurance on Party B.

	
10.5.  

	
Inspection, Return and Change

	
1  

	
As soon as the goods are delivered, Party B shall inspect the product name, specification, color, quantity, amount and product condition with the order reprint. If any inconsistency is found, Party B shall notify Party A immediately, otherwise it is deemed consistent.

	
2  

	
For any return or change not caused by quality, Party B shall notify Party A’s designated employee in writing for identification and confirmation. If Party A fails to process in one week after its receipt of such notice, Party B shall make a complaint by dialing Party A’s monitor line. Party A commits to process all complaints with severe concern. The monitor line is 0769 – 88386441.

	
3  

	
When it is confirmed by Party A’s employee that the return is caused by Party A but the on-site processing is impossible, if return is necessary, Party B shall apply for return in writing first and Party A will unconditionally accept the return or the change.

	
4  

	
When it is confirmed that the damage is not caused by Party A, Party A shall not be held liable, but Party A will assist Party B to process, with the cost and expense on Party B.

	
5  

	
Any other return or change shall comply with Party A’s return and change policy.

Article Eleven:                           Termination and Revocation of Contract

 

	
11.1.  

	
This contract can be terminated in the following event:

	
1  

	
The terms of contract is completed and both parties do not renew;

	
2  

	
Both parties mutually agree to terminate this contract;

	
3  

	
Either party terminates this contract in terms of this contract;

	
4  

	
If the person party is dead, the contract is terminated; if either party is bankrupt, insolvent, wound-up or incapable to operate for any other reasons, this contract is terminated when the other party delivers a written notice to the address specified by this contract;

	
5  

	
If the operating condition (place, capital and etc.) of Party B is no longer fit for this contract, Party A reserves the right to terminate this contract

	
6  

	
Either party violates the law or regulation, which results in the impossibility to perform this contract (such as a sentence to jail or labor camp), the other party reserves right to terminate this contract.

	
11.2.  

	
If this contract is terminated or revoked as aforementioned, Party B has duty to return the stock to Party A within 15 days thereof (since the date of termination or revocation), that is:

	
1  

	
Party B shall deliver the stock to the warehouse of Party A. Once the goods that must be regular product with original packing and good for resale is accepted by Part A, the return shall be refunded at discount rate, depending on Party A’s shipping time: full refund if returned within 90 days, 20% off if returned within 91 days to 180 days; 30% off if returned within 181 days to 1 year; 40% off if returned within 1 to 2 years; no return accepted if returned beyond 2 years.

	
2  

	
If Party B returns the product with broken packing and in unsellable condition; or purposely replaces or breaks the packing of the regular product that is still good for selling for its own reselling, the exercise of those are considered the breach of contract;

	
3  

	
The computation of timing in this article is starting from Party B’s shipping and ends on the delivery to the Party A’s warehouse (the date of shipping is excluded)

	
4  

	
The “discount” in this article is based on the corresponding purchase price from Party A.

	
11.3.  

	
When this contract is terminated and not renewed, Party B shall return all the franchisee sign, logo, advertisement or information materials and the other relevant documents while Party A reserves right to reclaim; Party B shall remove from franchise or store-within-store the door, light box and the other facilities or decoration which contains Party A’s tradename or logo within seven days of the termination or revocation.

 

  

5

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

 

	
11.4.  

	
Party B fails to perform the removal or the return of goods and documents after the termination of contract, the performance bond will not be returned and Party A reserves the right to claim for Party B’s breach of contract.

Article Twelve:                          Limitation of Operation

 

	
12.1.  

	
Except that Party B is issued the business license or already starting operation at the time of contract, any operation of business other than franchise within the designated territory, no matter it is for its own product (service) or others, or for the product of Party A’s competitor, is subject to the written approval of Party A.

Article Thirteen:                       Confidentiality

 

	
13.1.  

	
Party B shall permanently keep confidential any commercial or marketing materials (including the pricing policy) legally obtained through the performance of contract.  Party B is precluded from disclosure of such to any third party at any time, unless agreed to in writing by Party A; Party B shall sign and return a signature sheet after it receives any aforementioned materials from Party A.

	
13.2.  

	
After this contract is terminated or revoked, Party B shall return all the aforementioned materials to Party A and is prohibited from any use or disclosure of trademark, logo, sign, commercial material and technical documents (including photocopy of Party A’s business license, organization code, trademark registration certificate, annual tax return and etc.) Party B is prohibited from any activity or exercise that will confuse the others with Party A.

Article Fourteen:                       Liability

 

	
14.1.  

	
If Party B breaches contract, Party A is entitle to liquidated damages of RMB thirty to one hundred thousand yuan (Party A enjoys the preference from the deduction of Party B’s payment). In addition, Party A could choose any of the following options (or multiple options) at its discretion:

	
1  

	
Circulating warning or negative remark in the domestic franchisee;

	
2  

	
Stopping supply;

	
3  

	
Re-apportionment (narrowing) of Party B’s territory of exclusive sale, reclaiming of partial designated area of sale (such change to single unit franchise), or option to assign the reclaimed area to other franchisee;

	
4  

	
Rectification, if Party B refuses to rectify or still fails to comply after rectification, Party A reserves the right to unilaterally terminate the contract at no cost;

	
5  

	
Demanding Party B to continue performance;

	
6  

	
Unilateral termination of this contract at no cost.

	
14.2.  

	
If the damage caused by Party B is more than RMB one hundred thousand yuan, Party A is entitled to the actual recovery.

Article Fifteen:                          Dispute Resolution

 

	
15.1.  

	
Any dispute arising out of or in relation to this contract, both parties shall carry on a friendly negotiation in the first place. If the negotiation fails, the dispute shall be submitted to the Dongguan Arbitration Committee and is subject to the rules of the arbitration. The arbitration decision is final and binding to both parties.

	
15.2.  

	
If both parties agree that a lawsuit is necessary under certain circumstances, the lawsuit shall be filed in the venue where Party B is domiciled.

 

  

6

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

Article Sixteen:                         Explanation of Contractual Terms

 

	
16.1.  

	
Any article with “*” is specially prescribed by both parties. The contracting party is encouraged to pay particular attention and shall read and understand its content. To sign this contract is to acknowledge such content.

	
16.2.  

	
The “Single Unit Franchise” mentioned in this contract means Party B only enjoys the authorization in a single store rather than a whole designated territory. Party A reserves the right to authorize more franchisee or open a franchise (store-within-store) in the city (county) where such franchise locates.

Article Seventeen:                     Miscellaneous

 

	
17.1.  

	
Party A’s management of Party B’s employee is only for the purpose of maintaining the uniformity of franchise stores and store-within-store. It does not constitute an employment relationship under any circumstance. Party B is responsible for its employee under the employment law.

	
17.2.  

	
For any contractual payment from Party B to Party A, Party A reserves the right to directly deduct from Party B’s supply payment (including department store payment).

	
17.3.  

	
The delivery of document or transmittal of facsimile and email to the address or email account indicated in this contract is deemed delivered. Any change of address, facsimile number or email account shall be notified to the other party in writing. Any delivery or transmittal to the original contractual address, facsimile machine or email account prior to the change is also deemed delivered.

	
17.4.  

	
Party B’s authorized representative is considered Party B’s agent and authorized to deal with any matters under this contract. Party B shall notify any change to such representative in writing in a timely fashion. If Party B fails to do so, it is liable for any damage caused therefrom.

	
17.5.  

	
The appendix is important parts of this contract and has the same binding effect as this contract.

	
17.6.  

	
The modification or change to this contract requires the mutual agreement of both parties and shall be reduced to a writing.

	
17.7.  

	
Any supplement that is not exhausted by this contract shall be negotiated and signed by both parties otherwise. The supplemental agreement has the same binding as this contract.

	
17.8.  

	
This contract has three counterparts, two in Party A and one in Party B, and takes effect immediately after both parties’ signature and seals (if Party B did not seal with business stamp, Party B is a person).

 

*special agreement:  any oral promise or document (contract, agreement, memorandum, letter of authorization, promise, supporting policy and etc.) without business seal and in the name of Party A by its employee has no legal effect on Party A and/or Party B, unless ratified in a writing by Party A.

	
Party A: Nova Furniture (Dongguan) Co., Ltd.

 

 

Authorized Representative:

 

 

Date of Contract:   Year  Month Day

	  	
Party B:

 

 

Authorized Representative:

 

 

Date of Contract:   Year  Month Day

Appendix One: <<Annual Business Plan and Incentives>>

Appendix Two: <<Franchise Management and Assessment Rules>>

 

  

7

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

Appendix One:

Annual Business Plan and Incentives

Party A:                      Nova Furniture (Dongguan) Co., Ltd.

Party B:

Party A and B commit to work and develop the brand name and the product of NOVA Lifestyle. To facilitate the cooperation of both parties and define Party B’s purchase task (hereafter “purchase goal”), both parties agree to the following terms:

Article One:                                Party B’s Commitment

	
1  

	
Annual and monthly purchase goal:

	
2  

	
Party B commits the initial purchase of Party A’s product shall not be less than __________ ten thousand yuan (depends on the amount of requirement, the same to follow) and the total purchase for __________ year shall not be less than __________ ten thousand yuan.

Party B commits to achieve the monthly purchase goal as below:

	
Month

	
1

	
2

	
3

	
4

	
5

	
6

	
7

	
8

	
9

	
10

	
11

	
12

	
Goal (Ten Thousand Yuan)

	  	  	  	  	  	  	  	  	  	  	  	  

Article Two:                                Party B commits to execute the following store opening plan:

To achieve the purchase goal, Party B needs to raise operation capital no less than _________ ten thousand yuan. Party B shall open ____ franchise(s) in the first quarter (Jan – Mar), ____ franchise(s) in the second quarter (Apr – Jun), ____franchise(s) in the third quarter (Jul – Sep) and ____ franchise(s) in the fourth quarter (Oct – Dec). The franchise and store-within-store shall comply with the requirement set forth by Party A.

Article Three:                            Incentives

	
1  

	
Party A provides Party B with light box film, POP sign, adhesive picture, poster, catalog and promotional gifts.

	
2  

	
When Party B’s annual purchase amount reaches the following number, Party A will rebate accordingly;

	
Annual Purchase Amount (Unit: 10 Thousand Yuan)

	
Between

100 - 200

	
Between

201 - 300

	
Between

301 - 400

	
Each million beyond 4.01 million yuan constitutes one level (such as 401 – 500; 501 – 600), each additional level generates 20 Thousand Yuan rebate

	
Rebate

	
10 Thousand Yuan

	
Additional 12 Thousand Yuan

	
Additional 15 Thousand Yuan

 

 

 

  

1

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

  

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

	
(1)  

	
Rebate Example : Party B’s annual purchase amount is one million and twenty thousand yuan, its rebate is 10 thousand yuan; Party B’s annual purchase amount if two million and forty thousand yuan, its rebate is 10 thousand + 12 thousand = 22 thousand yuan; Party B’s annual purchase amount is three million and fifty thousand yuan, its rebate is 10 thousand yuan + 12 thousand yuan + 15 thousand yuan = 37 thousand yuan; Party B’s annual purchase amount is four million and two hundred thousand yuan, its rebate is 10 thousand + 12 thousand + 15 thousand + twenty thousand = 57 thousand yuan.

	
(2)  

	
Party B’s annual purchase amount is not allowed to carry on to the next year (“next year” means the next year within the valid term of this appendix.)

Article Four:                                           Liability

	
1.  

	
Instruction for <<Annual Business Plan and Incentives>> :

	
(1)  

	
If Party B fails to open franchise, Party A reserves the right to withhold rebate;

	
(2)  

	
If Party B fails to open all franchise set forth by the plan, Party A reserves right to determine the rebate rate depending on the actual  franchise opening percentage;

	
(3)  

	
If the annual purchase goal is failed but still reaches the rebate threshold, the rebate is determined according to the actual percentage of purchase goal, unless the actual percentage is less than 80%, in which event Party A can withhold rebate.

	
(4)  

	
Party B’s annual purchase growth rate shall not be less than 80% of Party A’s annual average growth rate. (For example, in 2010, Party A concludes that its general growth rate is 25%, that is, the franchise’s 2010 annual purchase goal shall not be less than 120% of 2009 actual purchase);

	
2.  

	
In any following event, Party A reserves the right, including but not limited to, of revoking the rebate, poster fee sponsorship, large business client incentives, decoration rebate and etc.:

	
(1)  

	
Party B is selling non-NOVA Lifestyle product in NOVA Lifestyle franchise or any authorized selling channels;

	
(2)  

	
Party B is selling NOVA Lifestyle product in the unauthorized channel by Party A;

	
(3)  

	
Party B is selling NOVA Lifestyle product in the unauthorized territory  by Party A;

	
(4)  

	
Party B enter this contract prior to the end of last year of sale, Party A considers Party B waives the rebates, poster fee sponsorship and any other incentives as agreed by both parties.

Article Five:                                Miscellaneous

	
1.  

	
This appendix is the appendix to the <<NOVA Lifestyle Home Furniture Franchise Agreement>> and shall be signed once annually.

	
2.  

	
This appendix has the same effect as <<NOVA Lifestyle Home Furniture Franchise Agreement>>.

	
3.  

	
This agreement has four counterparts, three in Party A and one in Party B.

	
4.  

	
Party A has exclusive right to explain this contract.

	
5.  

	
The valid term of this contract is from ____ year __ month __ day until ____ year __ month __ day.

	
Party A: Nova Furniture (Dongguan) Co., Ltd.

 

 

Authorized Representative:

 

 

Date of Contract:   Year  Month Day

	  	
Party B:

 

 

Authorized Representative:

 

 

Date of Contract:   Year  Month Day

 

 

  

2

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

 

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

 

Appendix Two:

Franchise Management and Assessment Rules

To further define requirement of Nova Furniture (Dongguan) Co., Ltd. (hereafter the corporation) for its franchisee or store-within-store to exercise and to maintain their uniformity, the following assessment rules are proscribed and every franchise is required to strictly follow:

One                      Display of Product

	
1.  

	
All the displayed products are commonly reserved product or new arrival.

	
2.  

	
After unpacking, the product shall be restored in good display. Any damage to the outer packing shall be repaired immediately.

	
3.  

	
Furniture, accessories, decoration, lighting, carpet etc. shall highlight all products displayed.

	
4.  

	
The new arrival shall be displayed in outstanding place.

	
5.  

	
The display shall correspond to the speculation and requirement of the promotional activity.

Two                       Cleaningness

	
1.  

	
No dust or stain on windows, doors and glass light boxes.

	
2.  

	
No mess or dust on cashier counter.

	
3.  

	
No dust on the dining table or coffee table, with no mess underneath.

	
4.  

	
No dust on the sofa, display shield and outer packing of product.

	
5.  

	
No dirt or damage to the catalogs and posters.

Three                   Equipments

	
1.  

	
Each franchise shall at least be equipped with one computer, facsimile and telephone.

	
2.  

	
Each computer shall be installed with software and hardware to sufficiently operate the business and shall have access to the internet and email account.

	
3.  

	
All equipments shall function properly and are not damaged.

Four                      Lighting

	
1.  

	
The store lighting need to be bright, the daytime brightness in certain area shall exceed the outdoors.

	
2.  

	
The front door lighting shall be bright and on together with light box.

	
3.  

	
Any damage exceeding 3% of the total lighting requires an immediate replacement.

	
4.  

	
During business hours, the light box in the store shall be turned on and kept in brightness. If the color of picture is faded, it shall be replaced timely.

Five                      Uniforms

	
1.  

	
All sales associate and the store manager are required to dress in uniforms and display with their employee ID (the store-within-store follows the rules of department store).

Six                       Qualification of Sales Associate

	
1.  

	
They shall understand the thinking of customer and master the selling skills.

	
2.  

	
They shall be familiar with the product information and master the method of displaying and packing.

 

 

  

1

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

 

 

 

		
NOVA Lifestyle Home Furniture Franchise Agreement

 

 

Seven                   Execution of Unified Pricing Rate and No Price Raising or Discount At Will

	
1.  

	
Each store shall follow the <<Area Retail Price Direction>> for labeling and pricing.

	
2.  

	
Depending on the variety of area, the price can fluctuate in different cities but the fluctuation cannot exceed 20% of directed price.

	
3.  

	
The corporation’s business supervisor has right to review the price for each product. If inconsistence is found, he has right to demand for correction in a limited period of time.  The resistant to correct will result in a fine of 5000 yuan per occurrence.

Eight                     Hanging and Distribution of POP and Poster

	
1.  

	
The indoor advertising material such as POP shall be displayed as required.

	
2.  

	
The product catalog shall be displayed in an outstanding place to facilitate customer viewing.

Nine                      Any unauthorized product or counterfeit is prohibited from being sold in the franchise.

Ten                       Incentives and Penalties

If any violation in the aforesaid is found, for one violation, franchisee is fined 1000 to 3000 yuan and the corporation is entitled to deduct such amount from the supply payment. The corporation also has right to set a timeframe for franchisee to make correction while the supply is ceased. If the franchisee refuses to correct or the correction is not satisfied after the timeframe, it is liable under Article 14.1 of <<NOVA Lifestyle Home Furniture Franchise Agreement>>.

In the meantime, if any violation of Article Seven and Nine is found, the corporation reserves the right to unconditionally hold the Franchisee liable under Article 14.1 of <<NOVA Lifestyle Home Furniture Franchise Agreement>>.

If special circumstance applies, and the execution is difficult, a written request is required for the corporation’s approval before the deadline of correction.

Eleven                      These rules are subject to the explanation of the corporation’s marketing department.

Twelve                      This appendix has the same legal effect as <<NOVA Lifestyle Home Furniture Franchise Agreement>>.

Franchisee (signature or seal):

Date:       Year     Month   Day

 

 

  

2

Address: NOVA Home Furniture Industrial Garden, Nange Industrial Zone, Daojiao, Dongguan, Guangdong

Tel: 0769-88386442   Fax: 0769-88313449

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