Document:

Exhibit 10.18

 

DUPONTTM WHOLESALER AGREEMENT

 

This Agreement is made this 1st day of January, 2011, ("Effective Date") by and between E. I. du Pont de Nemours and Company, a Delaware corporation with offices at 1007 Market Street, Wilmington, DE 19898 (hereinafter "DuPont") and Lakeland Industries, Inc. A Delaware Corporation, with offices at 701 Koehler Avenue, Suite 7, Ronkonkoma, NY 11779-7410 (hereinafter "Wholesaler") subject to the following terms and conditions:

 

Article 1. Appointment

 

	
1.01

	
DuPont hereby appoints and authorizes Wholesaler to sell and to solicit orders from distributors and other resellers for the products as specified in Schedule A attached hereto and made a part hereof and such other products as may be designated by DuPont in its sale discretion in writing from time to time (hereinafter referred to as "Products") in the territory of the United States of America, Canada and, with prior written approval from DuPont, other specific countries (hereinafter referred to as "Territory"). The objective of this Wholesaler Agreement is to grow sales of DuPont products by effectively serving distributors that access fragmented markets and new distributors that may not be able to purchase direct from DuPont ("Program").

 

	
1.02

	
This appointment is non-exclusive and DuPont reserves the right to sell directly to customers located in Territory including distributors and resellers located in the Territory or to appoint additional wholesalers if DuPont concludes that additional coverage is appropriate in order to fully develop the potential markets for the products. This appointment is solely for the sale of products to distributors and resellers and does not includes the sale of Products by Wholesaler directly to end­ users of any nature

 

	
1.03

	
If at any time during the term of this Agreement, one or more end-users of the Products own directly or indirectly a majority of the assets or equity of Wholesaler, then this Agreement shall automatically and immediately terminate.

 

	
1.04

	
DuPont reserves the right to sell directly to any account.

 

Article 2. Period of Agreement

 

	
2.01

	
This Agreement is effective from January 1, 2011 ("Effective Date") through December 31, 2011, and from year to year thereafter, until terminated by either Party at any time for any reason, with or without cause, with sixty (60) days' prior written notice.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
  

	
(a)

	
as specifically provided elsewhere in this Agreement;

 

	
  

	
(b)

	
by either Party at any time if the other Party commits any act of bankruptcy;

 

	
  

	
(c)

	
by either Party at any time without liability if that Party is exiting the business contemplated by this Agreement; or,

 

	
  

	
(d)

	
immediately by either Party in the event of a default or breach of this Agreement by the other Party, if such default or breach is not remedied within thirty (30) days of written notification of default or breach from the non-defaulting or non-breaching Party or if such default or breach is not reasonably subject to being remedied within such thirty (30) day period, if the breaching Party fails to commence the remedy of such default or breach within said thirty (30) day period and continue to diligently remedy the default or breach in a commercially reasonable manner.

 

	
2.02

	
Should Wholesaler's organization, ownership, operation, or business philosophy change in a manner which in DuPont's judgment conflicts with the business objectives set forth in this Agreement, DuPont reserves the right to terminate this Agreement effective upon at least sixty (60) days prior written notice to Wholesaler.

 

	
2.03

	
This Agreement shall first be executed by Wholesaler and shall be effective only when subsequently accepted and executed on behalf of DuPont by DuPont's authorized representatives,

 

	
2.04

	
In addition to DuPont's other rights to terminate this Agreement, DuPont shall have the additional rights to, at any time, by ninety (90) days written notice: 0) delete specified Products from the scope of the appointment, and/or (ii) limit the Territory of the appointment.

 

	
2.05

	
In the event of termination of this Agreement for any reason with or without cause the Parties agree that:

 

	
  

	
a.

	
neither Party shall be liable to the other Party for any termination compensation or payments of any kind including but not limited to investment, promotion or selling expense payments;

 

	
  

	
b.

	
no commissions or compensation on any sales of Product shall be payable to Wholesaler for Product sold in Territory;

 

	
  

	
C.

	
termination of this Agreement shall not relieve Wholesaler of its obligation of confidentiality under Article 12;

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
  

	
d.

	
Wholesaler shall return promptly to DuPont all the technical manuals, signs and other material or property of DuPont that may have been furnished to Wholesaler by DuPont, together with all copies or reproductions or parts thereof;

 

	
  

	
e.

	
except to the extent used by Wholesaler in connection with the sale of Products remaining in Wholesaler's inventory at termination, Wholesaler shall immediately discontinue permitted use of DuPont's trade name and trademarks and DuPont's trade name; provided, however, in no event shall Wholesaler be required to re-print or issue new catalogues in satisfaction of this obligation; and

 

	
  

	
f.

	
termination shall not affect any outstanding obligations of either Party to the other Party arising prior to such termination.

 

Article 3. Responsibilities

 

	
3.01

	
Wholesaler accepts this non-exclusive appointment and agrees, at its own expense, to use its best efforts to:

 

	
  

	
a.

	
promote, defend, advertise, develop and increase trade in Products in the Territory;

 

	
  

	
b.

	
maintain a minimum of thirty (30) days supply of inventory of Products or 10% of previous year's sales, whichever is higher, in proper storage conditions;

 

	
  

	
c.

	
provide DuPont a monthly inventory report of Products

 

	
  

	
d.

	
provide DuPont with a three-month rolling purchase forecast.

 

	
  

	
e.

	
forecast shall be provided in a format and level of detail as mutually agreed upon by DuPont and Wholesaler. Such agreement shall be reflected in a written communicated from the DuPont authorized representative to Wholesaler.

 

	
  

	
f.

	
achieve an annual purchase growth objective that is mutually agreed upon in writing and reviewed annually by both parties. The growth should be from new Product applications or the displacement of competitive material and not from share shifting among Wholesalers;

 

	
  

	
g.

	
commit to an annual joint market planning session for implementation;

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
  

	
h.

	
provide an adequate number of trained selling personnel and attend any annually required training;

 

	
  

	
i.

	
educate the trade in the use of Products as part of sales and marketing efforts for Products and, as necessary, to protect persons, property and the environment;

 

	
  

	
j.

	
meet sales and service standards as mutually agreed in writing by the Parties on a periodic basis;

 

	
  

	
k.

	
maintain accurate books and records;

 

	
  

	
I.

	
handle, store, and dispose of Products in such a manner as is necessary to protect persons, property and the environment and to educate its employees and customers in this regard;

 

	
  

	
m.

	
pay invoices within terms and maintain good credit;

 

	
  

	
n.

	
comply with DuPont policies and procedures for returns;

 

	
  

	
o.

	
adhere to terms of marketing, allowance programs or other incentives of a similar nature offered by DuPont to Wholesaler from time to time attached as Schedule B, Marketing and Growth Programs, attached to and made a part of this Agreement. DuPont may change the criteria and the terms and conditions of such programs at its sale discretion prior to any calendar year during the term of this Agreement and reflected in a revised Schedule B, Decisions by DuPont regarding Wholesaler performance and purchases under the program shall be final;

 

	
  

	
p.

	
furnish DuPont with reports reasonably requested by DuPont to keep DuPont informed of the market and competitive conditions and the position and progress of Wholesaler with the trade of the Products in the Territory and any information required as part of Schedule B; and

 

	
  

	
q.

	
furnish DuPont an initial report upon execution and reports on a minimum of a monthly basis thereafter containing point of sale data by state and grouped together by DuPont into geographic regions for internal commission purposes by units, product family and SKU of Products purchased from Wholesaler. Failure to provide such reports, within thirty (30) days after the end of each month, will result in forfeiture of discounts and other allowances under this Agreement and if not corrected, termination in accordance with Section 2.01 (f),

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
3.02

	
The provisions of this Article shall be deemed to be of the essence of this Agreement and any breach thereof by Wholesaler shall entitle Du Pont to immediately terminate or suspend this Agreement.

 

Article 4. Orders

 

	
4.01

	
Wholesaler shall order from DuPont such quantities of Products as it needs to meet the requirements of the trade in its Territory and to satisfy the purchase standards established under Article 3 above, provided, however, that all such orders shall at all times be subject to acceptance by DuPont and DuPont shall have no liability because of its failure to accept any such order. Wholesaler shall use all commercially reasonable efforts to place orders in quantities as set forth on Schedule C. Orders are subject to DuPont policies and requirements for ordering quantities as communicated from time to time by DuPont to Wholesaler and documented in Schedule C. Modifications to such ordering requirements shall be made upon thirty (30) days written notice to Wholesaler.

 

	
4.02

	
Shipments will be made to Wholesaler's warehouse(s). DuPont may specify minimum quantities from time to time for any shipments.

 

	
4.03

	
Whenever DuPont, at Wholesaler's request, shall agree and make shipment directly to Wholesaler's customer and the acceptance thereof is refused by the customer Wholesaler shall reimburse DuPont for all transport, freight and all other expenses incurred in connection therewith; provided however, Wholesaler shall not be required to reimburse DuPont to the extent the refusal is caused by the fault of DuPont.

 

	
4.04

	
Products shall be returned freight prepaid only with prior permission of the DuPont's authorized representative. Returns must be in salable condition and in original packages upon receipt by DuPont. Returns must be in accordance with DuPont standard Return Policy as set forth in Schedule C.

 

Article 5. Prices and Terms

 

	
5.01

	
DuPont's prices to Wholesaler for Products purchased hereunder shall be DuPont's prices in effect at the time of shipment.

 

	
5.02

	
Terms of payment shall be as set forth in Schedule C.

 

	
5.03

	
Minimum orders, freight terms, drop shipments policy shall be as set forth in Schedule C.

 

	
5.04

	
Terms of the direct ship program shall be as set forth in Schedule D.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
5.05

	
Prices, discount, terms and conditions may be revised by DuPont at any time effective upon written notice to Wholesaler.

 

	
5.06

	
Wholesaler shall not be entitled to any commission on any sale made by DuPont directly to customers located in Territory or to domestic customers or others who may subsequently, directly or indirectly, ship Products into Territory.

 

Article 6. Conditions of Sale

 

	
6.01

	
This Agreement, and all Wholesaler orders, shall be subject to DuPont's standard Conditions of Sale in effect at the time of shipment, referenced in Schedule C.

 

	
6.02

	
In the event of any conflict between the terms and conditions of this Agreement and DuPont's Conditions of Sale, the terms and conditions of this Agreement shall prevail.

 

Article 7. Relationship

 

	
7.01

	
The relationship between the Parties established under this Agreement is solely that of buyer and seller. Nothing in this Agreement authorizes Wholesaler to assume or create any obligation or responsibility, expressed or implied, on behalf of or in the name of DuPont, or to bind DuPont or its affiliates in any manner whatsoever unless prior written permission is obtained from DuPont.

 

	
7.02

	
It is agreed that Wholesaler's activities and those of Wholesaler's employees or representatives are at all times under Wholesaler's exclusive direction and control, and that Wholesaler's relation to DuPont is solely that of an independent contractor.

 

Article 8. Guarantees

 

	
8.01

	
DuPont undertakes to deliver material meeting DuPont's normal Product specifications, but is not responsible for results obtained by the use thereof either alone or in combination with other materials.

 

	
8.02

	
No guarantee or warranty, oral or written, expressed or implied, concerning the application or the results to be obtained with Products will be made by Wholesaler except with the express prior written authorization of DuPont in each specific case.

 

	
8.03

	
Wholesaler shall make no product performance claims that (i) are inconsistent with Product performance claims made by DuPont in its literature for such Products or (ii) DuPont has not approved in writing in advance.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
8.04

	
DuPont is not responsible, or liable, for errors or omissions of Wholesaler.

 

Article 9. DuPont's Trademarks and Trade Name

 

	
9.01

	
The trademarks used on the Products are and shall be the exclusive property of DuPont, and Wholesaler shall not register or use any such trademark or name without prior written approval of DuPont and the owner.

 

	
9.02

	
Wholesaler shall use DuPont trademarks in accordance with good business and trademark practices and in complete compliance with DuPont's then-current DuPont Trademark Policy, as supplied and amended by DuPont from time to time. DuPont has the right to object to Wholesaler's use of the trademarks for any reason and Wholesaler agrees to immediately correct its usage, or cease usage, of the trademarks at DuPont's request.

 

	
9.03

	
Wholesaler shall: a) not use any trademark, mark, name or symbol which may be confusingly similar to Trademarks; b) not use Trademarks in any manner which could affect the validity of its registration or DuPont's exclusive ownership thereof; c) use, display, advertise, and promote the Trademarks in accordance with the Trademark Guidelines; d) not use, display advertise, or promote the Trademarks in conjunction with any other product or combination of products; e) discontinue immediately any use, display, advertising, or promotion of the Trademarks, or association with it, that directly or indirectly amounts to or includes a false or exaggerated or misleading claim regarding the quality of DuPont Products or the fabrication or installation thereof that may be deemed objectionable by DuPont; and f) not register or use any trademark or tradename of DuPont, its affiliates or subsidiaries, for the products described hereunder or articles made therefrom without Du Pont's prior written consent.

 

Article 10. Regulations

 

	
10.01

	
With regard to use and disclosure of Confidential Information and Confidential Samples received under this Agreement and the direct product thereof, the Parties agree to comply with the Export Control Regulations of the United States Department of Commerce and other United States Government Regulations and any other country as applicable, relating to the export and re-export of technical data and equipment and products directly produced by use of such information and samples.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

Article 11. Policy

 

	
11.01

	
Wholesaler agrees that the following policy shall be binding on Wholesaler with respect to actions taken by Wholesaler under this Agreement. Gifts, favors and entertainment may be given by Wholesaler to others only if such gifts, favors and entertainment meet all of the following criteria:

 

	
  

	
•

	
they are consistent with accepted business practices;

 

	
  

	
·

	
they are of sufficiently limited value, and in a form that will not be construed as a bribe or pay-off;

 

	
  

	
·

	
they are not in contravention of applicable law or generally accepted ethical standards; and,

 

	
  

	
•

	
public disclosure of the facts will not embarrass DuPont.

 

	
11.02

	
Secret commissions or other secret compensation to employees of DuPont, Wholesaler, or customers (or family members or associates) are forbidden.

 

	
11.03

	
Wholesaler hereby represents that, in its dealings in connection with Products, no action inconsistent with these statements and policy will be taken directly or indirectly by Wholesaler. Wholesaler further acknowledges and agrees that any such action will serve as grounds for immediate termination of this Agreement by DuPont.

 

Article 12. Miscellaneous

 

	
12.01

	
DuPont may from time to time disclose information to Wholesaler that will be identified in writing as confidential. For a period of five (5) years from the date of disclosure Wholesaler shall not use or disclose such confidential information unless prior written consent is given by DuPont.

 

	
12.02

	
Wholesaler is responsible for the ultimate payment of all taxes, including stamp charges, licenses, duties and governmental exactions, by whatsoever name know which may be assessed or levied on or on account of the Products shipped hereunder to Wholesaler or to's customers.

 

	
12.03

	
If, at any time during the life of this Agreement, any condition shall arise which shall impede or restrict free transit of money or goods to or from the Territory, then deliveries hereunder may be suspended during the continuance of any such condition, or this Agreement may be terminated by either Party.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
12.04

	
In the event any payment owed to DuPont hereunder is not paid by Wholesaler in accordance with payment terms and this Agreement, DuPont shall have the right to credit against such payment and any interest thereon any sums owed by DuPont to Wholesaler.

 

	
12.05

	
The cost of postage, telephone calls and other communications sent by Wholesaler shall be paid by Wholesaler and the cost of any such items sent by DuPont shall be paid by DuPont. The cost of samples, reimbursements, promotional activities, etc. undertaken by Wholesaler in connection with Products will be paid by Wholesaler unless otherwise agreed to by DuPont in writing in advance.

 

	
12.06

	
It is understood and agreed that DuPont has no right to provide any marketing instructions to Wholesaler, or to exercise any control over Wholesaler's method of operation of its business,

 

	
12.07

	
Nothing herein shall be construed to create a joint venture or enterprise between the Parties, nor shall any Party be considered to be the agent of the other Party.

 

	
12.08

	
Neither this Agreement nor any right or obligation herein shall be assignable or transferable in whole or in part by either Party without the prior written consent of the other Party.

 

	
12.09

	
The failure of either Party to insist upon the performance of any provision of this Agreement or to exercise any right or privilege thereunder shall not be construed as a waiver of any right arising under this Agreement and all provisions shall remain in full force and effect.

 

	
12.10

	
No liability shall result from delay in performance or non performance directly or indirectly caused by circumstances beyond the control of the Party affected, including, but not limited to, acts of God, fire, explosion, flood, war, act of or authorized by any Government, accident, equipment failure, failure of suppliers, labor dispute or shortage, or inability to obtain material, equipment and transportation. Quantities so affected shall be eliminated by DuPont from the Agreement without liability, but the Agreement shall remain otherwise unaffected. DuPont shall have no obligation to purchase supplies of fiber it would otherwise make to enable it to perform this Agreement.

 

	
12.11

	
This Agreement shall be construed in accordance with the laws of the State of Delaware without giving effect to choice of law or conflict principles of any jurisdiction. In the event of litigation, the Parties agree that the Courts of the State of Delaware shall have exclusive jurisdiction of any claim or action to be commenced by either Party against the other ariSing out of the performance, or relating to the subject of this Agreement. The Parties hereby consent to personal jurisdiction in the Courts of Delaware for purposes of any interpretation, enforcement or legal action concerning this Agreement. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
12.12

	
Wholesaler shall not appoint any representative or agent for the Products without the prior written consent of DuPont.

 

	
12.13

	
The Parties' legal obligations under this Agreement are to be determined from the precise and literal language of this Agreement and not from the imposition of state laws attempting to impose additional duties or other obligations that were not the express basis of the bargain at the time this Agreement was made.

 

	
12.14

	
NEITHER PARTY SHALL BE LIABLE FOR SPECIAL, INCIDENTAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH ANY CLAIM THAT ARISES OUT OF OR RELATES TO THIS AGREEMENT OR THE PARTIES CONDUCT HEREUNDER WHETHER OR NOT CAUSED BY OR RESULTING FROM THE NEGLIGENCE OF SUCH PARTY EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

	
12.15

	
The Parties are sophisticated businesses with legal counsel who have reviewed the terms of this Agreement and the Parties represent that they have fully read this Agreement, and understand and accept its terms.

 

Article 13. Notices

 

All written notices and other communications under this Agreement shall be given by (i) letter or (ii) cable, telex, or facsimile transmission, confirmed by letter (delivered by hand, by air courier, or by registered air mail), which shall be addressed to the Parties as follows:

 

	
To DuPont:

	
E. I. DuPont de Nemours and Company

	  	
DuPont Protection Technologies

	  	
Spruance Business Center

	  	
5401 Jefferson Davis Highway

	  	
Richmond, Virginia 23234

	  	  
	  	
Attention: Dave Kee

	  	  
	  	
Email: David.c.kee@usa.dupont.com

	 	 
	  	
Phone: 804-383-3237

	  	
Fax: 804-383-2794

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

	
To Wholesaler:

	
Lakeland Industries, Inc.

	  	
701 Koehler Avenue, Suite 7

	  	
Ronkonkoma, NY 11779-7410

	  	  
	  	
Attention: Christopher J. Ryan

	  	
Facsimile No.: 631-981-7851

	  	  
	  	
Lakeland Industries, Inc.

	  	
202 Pride Lane SW

	  	
Decatur, AL 35603

	  	  
	  	
Attention: Greg Pontes

	  	
Email: GDPontes@lakeland.com

	  	
Phone: 256-350-3873 x 226

	  	
Fax: 256-350-3842

	  	  
	  	
Lakeland Industries, Inc.

	  	
3507 Clover Valley Drive

	  	
Kingwood, TX 77345

	  	  
	  	
Attention: Kyle Kerbow

	  	
Email: klkerbow@lakeland.com

	  	
Phone: 281-360-5057

	  	
Fax: 281-360-5794

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

Article 14. Entirety

 

This Agreement, with its Attachment(s) and DuPont's Conditions of Sale, contain the entire agreement between the Parties relating to the subject matter hereof and supersede and terminate all prior agreements relating to the subject matter hereof. There are no, oral or written, contracts, understandings, conditions, or representations relating to the subject matter hereof that are not merged herein and the Parties acknowledge that they have not executed or authorized the execution of this instrument in reliance upon any agreement, understanding, condition, warranty or representation not contained herein. No amendments or modifications or waivers shall be of any force or effect unless in writing and Signed by the Party claimed to be bound thereby. No modification shall be effected by the acknowledgment or acceptance of purchase order forms, or other forms, containing different or additional conditions.

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement in duplicate on the dates set forth below.

 

	
E.I. du Pont de Nemours and Company

	 	
Lakeland Industries, Inc.

	  	 	  
	
By: /s/ William F. Weber

	 	
By: /s/ Christopher J. Ryan

	  	 	  
	
Title: Vice President-DPT

	 	
Title: CEO

	  	 	  
	
Date: 1/31/11

	 	
Date: 1/31/11

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

Schedule A

 

DuPont Products

 

DuPont Protection Technologies Products listed in the DuPont Personal Protection Distributor Price List, the DuPont Personal Protection Catalog, the DuPont Controlled Environment Catalog or Products that are added or deleted from the offering by DuPont from Time to time and communicated to the Wholesaler.

 

DuPont may issue revisions or updates to DuPont Personal Protection Distributor Price List, the DuPont Personal Protection Product Catalog, and the DuPont Controlled Environment Product Catalog periodically during the term of this agreement

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

Schedule B

 

Pricing

 

Pricing will be Level A minus 8%

 

DuPont has the right during the term of this agreement to change the price specified herein provided DuPont has given Wholesaler 60 days notice.

 

Marketing and Growth Programs

 

Program Overview

 

These marketing and growth programs are being offered to Wholesaler solely for the sale of Products to approved Wholesaler customers (distributors and resellers only). The approved Wholesaler customers shall be documented in a mutually agreed upon data base and format that can readily be accessed by DuPont. All payments shall be made on the basis of purchases of Products by Wholesaler but will be contingent upon DuPont being satisfied that the Products were sold by Wholesaler only to the approved reseller customers.

 

Annual Growth Rebate

 

For each calendar year during the term of this Agreement, DuPont will provide Wholesaler a rebate, as credit to outstanding invoices, based on level of growth of current full year purchases over annualized prior year purchases (in the event the prior year was a partial year of purchases, the base prior year purchase level will be determined by annualizing those prior year purchases to a full year rate):

 

	
Growth of 5% through 9.9%:

	
1% rebate

	  	  
	
Growth of 10% - 14.9%:

	
2% rebate

	  	  
	
Growth of 15% - 19.9%:

	
3% rebate

	  	  
	
Growth of 20% or above:

	
5% rebate

 

The rebate amount will apply to all net purchases of DPT products during the calendar year. Net purchases will be limited to the Products that have been invoiced by DuPont during the calendar year, minus returns. DuPont will process all rebates, earned by Wholesaler during the calendar year, no later than sixty (60) days after year end. The rebates will be issued by credit memo.

 

Marketing Coop Allowance:

 

For each calendar year during the term of this Agreement with sales of over $1 MM, DuPont will provide an annual Co-Op Marketing Fund equal to 1.0% of previous calendar year purchases applied to equally matched expenses on mutually acceptable promotions,

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

For each calendar year during the term of this Agreement with sales of over $2MM, DuPont will provide an annual Co-Op Marketing Fund equal to 1,5% of previous calendar year purchases applied to equally matched expenses on mutually acceptable promotions,

 

Wholesaler must submit a marketing plan and cost estimate for review and approval by DuPont. Co-op funding is at the sole discretion of DuPont based on quality of the marketing plan. Wholesaler agrees to comply with DuPont rules for trademark usage and visual merchandising guidelines for promotional activities of any kind and in any form of media. The guidelines are located at www.PersonalProtection.Dupont.com or contact DuPont for written copies. Terms for reimbursement and submission of reports for approval or reimbursement will be provided to Wholesaler at time of approval of the marketing plan and cost estimate.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

Schedule C

 

Payment Terms

 

Payment terms are 1 % 10, net 30 days

 

Business Terms and Policies

 

Drop Shipments

 

DuPont will drop ship direct to Wholesaler's customers but drop ship orders will be at Level A pricing (the Wholesaler discount will not apply). There will be no drop shipments to end-users.

 

Returns Policy

 

Returns must be made within ninety (90) days of purchase date. Returns are subject to a 15% restocking charge and all return freight charges are the responsibility of the Wholesaler. Only Made to Stock (MTS) items are eligible for return. Opened cases, custom products (including Made to Order - MTD) damaged or discontinued items cannot be returned. Authorization from DuPont must be obtained prior to any return. Any returns without an authorization number, a statement of non-contamination or shipped on a freight-collect basis will be refused.

 

Minimum Order Policy

 

Orders under $2500 will be subject to a $75 fee.

 

Freight Prepaid & Allowed

 

Free freight to Wholesaler's Distribution Centers with be provided for orders over $2,500. Orders under $2500 will be shipped Freight Collect.

 

Sales Promotions

 

DuPont will consider participating in Wholesaler sales promotions such as direct to customer mail campaigns, package stuffers, trade journal advertisements, sales contests, spiffs, web­ site banners or links, etc. Support will be provided through marketing co-op fund or other appropriate account based mutually agreeable items and in accordance with terms above. All programs must meet applicable business policies and standards of DuPont.

 

Terms

 

Wholesaler agrees to comply with all terms of this Agreement and all DuPont terms and Conditions of Sale contained on DuPont invoices, order acknowledgment, etc. (collectively, the "Terms and Conditions"), regarding sales of Products including payment within agreed upon terms of all invoices from DuPont. Failure to pay undisputed invoices within terms will result in Wholesaler automatically forfeiting any rebates earned on such purchases during the period in which payment terms were not met.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

E. I. du Pont de Nemours and Company

 

STANDARD CONDITIONS OF SALE

 

1. Seller warrants only that (a) any products or services provided hereunder meet Seller's standard specifications for the same or such other specifications as may have been expressly agreed to herein: (b) the sale of any products or services provided hereunder will not infringe the claims of any validly issued United States patent covering such product or service itself, but does not warrant against infringement by reason of (I) the use of any Information provided. (ii) the use of any product or service in combination with other products, services, or information or in the operation or any process. or (III) the compliance by Seller with any specifications provided to Seller by Buyer, and (c) all products provided hereunder were products in compliance with the requirements of the Fair Labor standards Act of 1938, as amended. WITH RESPECT TO ANY PRODUCTS, SERVICES OR INFORMATION PROVIDED TO BUYER, SELLER MAKES NOT WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER EXPRESS OR IMPLIED WARRANTY. Byer assumes all risk and liability resulting from use of the products, services or information delivered hereunder, whether used singly or in combination with other products, services or information.

 

2. IN NO EVENT WILL SELLER’S AGGREGATE LIABILITY TO BUYER FOR ALL DAMAGES ARISING FROM ANY AND ALL CLAIMS RELATED TO THE BREACH OF THIS AGREEEMNT, NONDELIVERY, OR THE PROVISION OF ANY PRODUCT, SERVICE OR INFORMATION COVERED BY THIS AGREEMENT, REGARDLESS OF WHETHER THE FORM OF ACTION IS BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STICT LIABILITY, STATUTE, OR OTHERWISE, EXCEED THE TOTAL PRICE PAID BY BUYER TO SELLER FOR THE PRODUCTS, SERVICES, OR INFORMATION IN RESPECT OF WHICH DAMAGES ARE CLAIMED. NO CLAIM SHALL BE ALLOWED FOR PRODUCT THAT HAS BEEN PROCESSED IN ANY MANNER. FAILURE TO GIVE NOTICE OF A CLAIM WITHIN NINETY (90) DAYS FROM DATE OF DELIVERY, OR THE DATE FIXED FOR DELIVERY (IN CASE OF NONDELIVERY) SHALL CONSTITUTE A WAIVER BY BUYER OF ALL CLAIMS IN RESPECT OF SUCH PRODUCTS, SERVICES, OR INFORMATION. PRODUCTS SHALL NOT BE RETURNED TO SELLER WITHOUT SELLER’S PRIOR WRITTEN PERMISSION. NO CHARGE OR EXPENSE INCIDENT TO ANY CLAIMS WILL BE ALLOWED UNLESS APPROVED BY AN AUTHORIZED REPRESENTATIVE OF SELLER. IN ADDITION, AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO WAIVES ANY CLAIM TO INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEPLARY OR MULTIPLIED DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PROVISION OF ANY PRODUCT, SERVICE, OR INFORMATION. TO THE EXTEND PERMITTED BY APPLICABLE LAW, THE PARTIES WAIVE AND AGREE NOT TO ASSERT NON-CONTRACTUAL CLAIMS ARISING UNDER STATE LAW RELATING TO THIS AGREEMENT OR THE PROVISION OF ANY PRODUCT, SERVICE OR INFORMATION COVERED BY THIS AGREEMENT AND THIS AGREEMENT SHALL BE DEEMED TO INCLUDE SUCH LANGUAGE AS MAY BE REQUIRED TO EFFECT SUCH WAIVER. WAIVER BY EITHER PARTY OF ANY DEFAULT BY THE OTHER HEREUNDER SHALL NOT BE DEEMED A WAIVER BY SUCH PARTY OF ANY DEFAULT BY THE OTHER WHICH MAY THEREAFTER OCCUR.

 

3. No liability shall result from delay in performance or nonperformance, directly or indirectly caused by circumstances beyond the control of the party affected, including, but not limited to, act of God, fire, explosion, flood, war, act of or authorized by any Government, accident, labor trouble or shortage, pandemic, inability to obtain material, equipment or transportation, failure to obtain or hardship in obtaining reasonably priced supplied of materials, or failure or usual transportation mode. Quantities so affected may be eliminated from the agreement without liability, but the agreement shall remain otherwise unaffected. Seller shall have no obligation to purchase supplies of the product specified herein to enable it to perform this Agreement.

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

E. I. du Pont de Nemours and Company

 

4. If for any reason including but not limited to Force majeure Seller is unable to supply the total demand for products specified herein. Seller may distribute its available supply among any or all purchasers, as well as departments and division of Seller, on such basis as it may deem fair and practical, without liability for any failure of performance which may result therefrom.

 

5. Seller may furnish such technical assistance and information as it has available with respect to the use of the products or services covered by this agreement. Unless otherwise agreed in writing, all such information will be provided gratis. Buyer agrees to evaluate such information, to make an independent decision

 

regarding the suitability of such Information, products and services for Buyers application, and only use such products, services and information pursuant to then current good product stewardship principles and all regulatory requirements applicable to Buyer's business.

 

6. Buyer acknowledges that it has received and is familiar with Seller's labeling and literature concerning the products and its properties. Buyer will forward such information to its employees, contractors and customers who may distribute, handle, process, sell or use such products, and advise such parties to familar1ze themselves with such information. Buyer agrees that products sold hereunder will not knowingly be resold or given in sample form to persons using or proposing to use the products for purposes contrary to recommendations given by Seller or prohibited by law, but will be sold or given as samples only to persons who can handle, use and dispose of the products safety, unless agreed to by seller in a written agreement covering such use, in no event shall Buyer use products or resell products for use in the manufacture or any implanted medical device. Buyer agrees that export of any product service or information provide hereunder shall be in accordance with applicable Export Administration Regulations.

 

7. Except as may be contained in a separate trademark license, the sale of product (even if accompanied by documents using a trademark or trade name of Seller) does not convey a license, express or implied, to use any trademark or trade name or Seller, and Buyer shall not use any trademark or trade name of Seller in the Conduct of its business without Seller’s prior written consent.

 

8. The Buyer shall reimburse the Seller for all taxes, (excluding income taxes) excises or other charges with the Seller may be required to pay to any Government (National, State or Local) upon the sale, production or transportation of products, services or information sold hereunder.

 

9. In the event Buyer fails to fulfill the Seller's terms of payment, or in case Seller shall have any doubt any time as to Buyer's financial responsibility, seller may decline to make further deliveries except upon receipt of cash or satisfactory security.

 

10. This agreement is not assignable or transferable by Buyer, in whole or in part, except with the prior written consent of seller. Seller reserves the right to set, assign, or otherwise transfer its right to receive payment under this agreement

 

  

  

  

 

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

E. I. du Pont de Nemours and Company

 

11. Dispute Resolution and Arbitration - Buyer and seller agree to arbitrate all disputes, claims or controversies whether based on contract, tort, statute, or any other legal or equitable theory, arising out of or relating to (a) this Agreement or the relationship which results from this Agreement, (b) the breach, termination or validity of this Agreement, (c) the purchase or supply of any product, service or information provided by Seller, (d) events leading up to the formation of Buyer’s and Seller’s relations, and (e) any issue related to the creation of this Agreement or its scope, including the scope and validity of this paragraph. The parties shall before and as a condition to proceeding to arbitration attempt in good faith to resolve any such claim or controversy by mediation under the International Institute for Conflict Prevention & Resolution (“CPR”) Mediation Procedure then currently in effect. Unless the parties agree otherwise, the mediator will be selected by the CPR Panels of Distinguished Neutrals. Any such claim or controversy which remains unresolved 60 days after the appointment of a mediator or 60 days after good faith efforts by either party to proceed to mediation shall be finally resolved by binding arbitration in accordance with all CPR Rules for Non-Administered Arbitration then currently in effect by three independent and impartial arbitrators, non of who shall be appointed by either party. This Agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, to the exclusion of any state laws inconsistent therewith. Such arbitration shall be conducted in a city to be chosen by the arbitrators which is not the principal place of business of either party, and the arbitrators and the parties shall conduct such arbitration in accordance with such procedures as may be necessary to permit us e f the then current CPR Arbitration Appeal Procedure. Any judgment upon the award rendered by the arbitrator(s) may be entered by any court having jurisdiction thereof. In the event that either party wishes to appeal an award, the parties shall follow the then current CPR Arbitration Appeal Procedure. Buyer and Seller agree not to file or join any class action or class arbitration, seek or consent to class relief, or seek or consent of the consolidation or joined of its claims with those of any third party. If any clause within this Arbitration Provision (other than the agreement regarding the conduct of the arbitration in the preceding sentence) is found to be illegal or unenforceable, that clause will be severed from this Arbitration Provision and the remainder of the Arbitration Provision will be given full force and effect. If such agreement regarding the conduct of the arbitration is found to be illegal or unenforceable and if the arbitrators permit a class arbitration or consolidated or joined matter to proceed, this entire Arbitration Provision will be unenforceable, and the dispute may be decided by a court. The obligations set forth in this paragraph shall survive the termination or expiration of this Agreement

 

12. This Agreement shall be construed and governed by Delaware law, without regard to any applicable conflicts of law provisions, and the terms or the UCC, rather than the United Nations Convention on Contracts for the International Sale of Goods, shall apply.

 

13. Except as otherwise expressly provided in any other term or condition of this Agreement, title, liability for and risk of loss to Product sold hereunder passes to Buyer upon loading for shipment at seller’s producing location.

 

14. Except as expressly provided In any other term or condition of this Agreement, any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision In any other jurisdiction.

 

15. This Agreement supersedes all prior agreements, representations and understandings between the parties (whether written or oral) with respect to its subject matter and constitutes (along with the exhibits and schedules attached hereto) a complete and exclusive statement or the terms of the agreement between the parties with respect to the provision of products or services hereunder. Not by way of limitation of the unqualified nature of the foregoing, Buyer acknowledges, agrees and represents that it is not relying upon, and it has been inducted by, any representation, warranty, statement made by, or other information provided by Seller in connection with its decision to purchase or use any product, service, information or technology, other than the representations and warranties Seller as and only to the extent expressly provided in this Agreement.  No modification shall be effected by the acknowledgment or acceptance of purchase order forms stipulating different conditions.

 

Ver. 2/1/07

 

  

  

  

E. I. du Pont de Nemours and Company

Lakeland Industries, Inc.

Wholesaler Agreement

 

Schedule D

 

Direct Shipment Program:

 

	
  

	
·

	
45 or 90 Day lead time from time of Order Confirmation to Delivery (Program availability subject to change based on supply or market conditions at time of order)

	
  

	
o

	
4% Discount off of Level A pricing for 45 Day offering

	
  

	
o

	
8% Discount off of Level A pricing for 90 Day offering

	
  

	
·

	
Minimum Order Qty's are required by order based on Volume loading specifications - Order qtys are calculated based on transportation load volume a loading tool provided by DuPont. The Tool will provide a maximum load volume and will calculate the order load based on customer input.

	
  

	
·

	
Freight Prepaid

	
  

	
·

	
Direct shipments are invoiced at time of US customs clearance (Clearance is normally executed through the closest port of entry available based on ocean route or land route setup by ship to location/Lead-time offering).

	
  

	
·

	
All sku's consistent with prior order patterns by Wholesaler, as of the effective date of this agreement, will be available for this program. Wholesaler cannot order additional sku's in this program without the prior review and approval by DuPont. DuPont reserves the right to limit expansion of sku's.

	
  

	
·

	
Country of origin and/or mode of transport can vary for both Direct ship lead-time options

	
  

	
·

	
Direct Shipment expediting request could reduce or forfeit program discounts

	
  

	
·

	
Product will be delivered as standard identified product - (Customer specific packaging, Labeling, put-up designations, handling request are not available through the program)

	
  

	
·

	
Final Destination routing must be confirmed prior to container program implementation and/or Delivery confirmation- Certain customer locations could be non accessible or non deliverable. (Carrier designations are not available through the direct ship program)

	
  

	
·

	
Direct shipments cannot be shipped direct to end user

	
  

	
·

	
20 cs minimum order per sku per container order

	
  

	
·

	
Direct shipment orders cannot be cancelled or changed once order has been confirmed - Order confirmation provided by CSR order cannot be changed or cancelled - Order is considered MTO product and is not available for return unless product meets quality return criteria.

	
  

	
·

	
All Direct shipments must be scheduled for receipt within 2 business days after initial inland carrier

	
  

	
·

	
delivery scheduling contact is made

	
  

	
·

	
Customer should provide direct shipment forecast by month and by lead time.

	
  

	
·

	
All Direct shipments floor stacked

	
  

	
·

	
2 hour live unloads are standard operating protocol. Additional time required could result in detention charges, all charges associated with detention or inland carrier is the Sold-to customers responsibility. A Bill-to contact phone number, name and address for detention charge billing is required. The billing will come directly from inland dray carrier.

Tychem Consolidated Purchase Program

	
  

	
·

	
When purchases of DuPontTM Tychem® are consolidated at the time of ordering, an additional 2% discount will be applied to the existing Direct Ship Program discount. This discount is being offered to partially offset the technical selling efforts required to effectively position TYCHEM in the market and to enable supply chain efficiencies at DuPont.

	
  

	
·

	
In order to achieve this 2% discount, the Direct Ship Program requirements outlined above must be adhered to and the shipments must be consolidated per direction provided by DuPont.

DuPontTM is a registered trademarks of E.I. du Pont de Nemours and Company.Unassociated Document

 

Sales contract for commercial building

Tailored by Shanghai Municipal Housing, Land and Resources Administration Bureau

Supervised by Shanghai Administration of Industry and Commerce

Printed in 2000

 

  

  

  

 

Special notice

 

1.  The form contract text is a specimen according to the Shanghai Real Estate Transfer Ordinance. The terms are indicative, and for the adoption of both parties when selling the commercial residential building which was not pre-sold.

 

2.  Purchase of a commercial building is a civil law act. Because it involves a large monetary transaction amount, professional judgment and many legal considerations, to protect the rights of both parties, the contract should be signed on the basis of prudence, and strict and thorough consideration.

 

3.  The commercial building can only be sold after the proprietary certificate of the newly-built building has been obtained. The real estate development company should provide the buyer with this certificate. The certificate should be shown to be legitimate and can be verified at the real estate transfer center at the city level, district level and county level.

 

4.  When the real estate development company sells a commercial building encumbered by a mortgage, the company should inform the mortgagee with a written notice from the buyer. If not, the sales transaction is ineffective. The buyer can inquire about the related information of the commercial building at the city-level, district-level, and county-level real estate transfer center. (The related information will refer to mortgages, approvals by the judicial authority or administrative authority, or any restriction on the right of the use of the commercial building in other forms.)

 

5.  The parties should timely register the modification with the real estate registration authority after the contract execution date. The buyer should then obtain the building proprietary certificate.

 

  

2

  

 

6.  If any dispute arises from the execution of or in connection with the contract, either party can file a suit with the local People’s court or go to a arbitration committee for arbitration. Either an arbitration committee in Shanghai or in any other place may be used. The arbitration committee in Shanghai may be either the Shanghai Arbitration Committee or the Shanghai Foreign Trading Arbitration Committee (Foreign affairs related).

 

7.  The form of contract for sales contract is available from the real estate trading center at city level, district level and county level. It is suggested that the buyers obtain the contract text first and read it thoroughly.

 

Sales contract for commercial building

 

Party A (Seller):    Shanghai Zhangjiang Integrated Circuit Industrial Zone Development Co., Ltd

 

	
Address:

	
No.3000, Longdong Avenue,

Zhangjiang Hi-tech Park, Shanghai

	 	 
	
Zip code:

	
201203

	 	 
	
No. of business license:

	
3101151016082

	 	 
	
No. of certificate:

	
Hufangdizikai No. 01159

	 	 
	
Legal representative:

	
Liu Xiaolong

Contact number:  68796879

	 	 
	
Entrusted agent:

	
Contact Number: 58558888

	 	 
	
Party B (Buyer):

	
CER Energy Recovery (Shanghai) Co., Ltd

 

  

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Address:

	
Building No.26, No.1388,

Zhangdong Road,

Zhangjiang Hi-tech park,

Shanghai,

Zip code: 201203

	 	 
	
No. of business license:

	
310115400249903(Pudong),

Contact Number: 55560020

	 	 
	
Legal representative:

	
Wu Qinghuan,

Contact number: 55560020

	 	 
	
Entrusted agent:

	
Zhou Jialing,

Contact Number: 55560020

	
Address:

	  

 

Party A and Party B sign this sales contract for the purchase of a commercial building on the basis of equality, voluntary and friendly consultation.

 

Article 1  Party A legally acquired the land use right for Land No.1481700150005028, Pudong district. (No. of land use right transfer contract: Hupu (1993) grant contract No.047). Party A has finished the construction and investment of phase 2 (Western wing) of the Zhangjiang Integrated Circuit Park commercial building, has completed the initial registration of commercial building and obtained the house proprietary certificate for the building. (No. Pu 2011006917)

 

Article 2  Party B hereby purchases Rooms 101 and 102, Building No. 26, No. 1388, Zhangdong Road from Party A (hereafter called the “house”).  According to the results of a measuring firm certified by the Shanghai Municipal Housing, Land and Resources Administration Bureau, the total area is 2617.34 square meters, comprising an internal floor area of 2373.61 square meters and public shared area of 243.73 square meters, with an internal storey height of 3.9 meters.

 

  

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The floor plan is described in Appendix II; the building structure, decoration and furbishment is described in Appendix III; the housing-related situation (mortgages, leases, neighborhoods and the plan of the community) is described in Appendix IV; and the conventions regarding use of the house is in Appendix V.

 

Article 3  Party B purchases the house area at RMB 18,525 per square meter.  Base on the total measured area of the house, the total price of the house is RMB 48,486,223.5.  The total price of the house includes the ownership of the house and related land use rights.

 

Article 4  Party B shall make payment into Party A's bank account according to the payment terms and payment schedule agreed in this contract.  The account data is as follows:

 

	
Financial institution:

	
Zhangjiang Branch, Shanghai Pudong Development Bank,

	 	 
	
Account Name:

	
Shanghai Zhangjiang Integrated Circuit Industrial Zone Development Co., Ltd.

	 	 
	
Accounts No.:

	
076567 -97160158000000183)

 

Payment time and manner are set forth in Appendix I.

 

Party A shall issue a formal paid invoice to Party B when receiving each payment.

 

Article 5  If Party B fails to make the payment on time, a penalty shall be paid to Party A, in the amount of 0.05% of the overdue amount per day, calculated from the second day of the due date until the payment is made. Party A may exercise the alternatives set forth below, if the overdue period extends beyond 30 days:

 

A.  Party A has the right to unilaterally terminate the contract.

 

  

5

  

 

B.  The contract will continue if Party B pays the penalty and related interest (which is the interest of the overdue account, calculated at the loan rate announced by the People’s Bank of China). If the overdue period is more than 60 days, Party A then has the right to unilaterally terminate the contract and return to Party B previous received payments, deducting the penalty and interest charge. If the paid amount is not enough to cover those, Party B shall pay the remaining amount within 5 days from receipt of the written notice from Party A (“Notice period of contract rescission”). The penalty and interest shall be calculated during the notice period of the contract being rescinded. If the economic losses of Party A exceed the amounts paid, then the penalty paid by Party B shall be made up.

 

Article 6  If Party B pays by bank transfer and the bank does not make the payment to Party A on time, it remains Party B’s default, expect for any reason stemming from an action by Party A.

 

Article 7  Both parties will agree to the building transfer date according to the method four below.

 

	 	
Method one:

	
Party A shall deliver the house to Party B within ____days from the contract executive date.

 

	 	
Method Two:

	
Party A shall deliver the house to Party B within ____days from the date of notarization by______ notary office

 

	 	
Method Three:

	
Party A shall deliver the house to Party B within ____days from receipt of the total price from Party B

 

	 	
Method Four:

	
Party A shall deliver the house to Party B within 2 working days after Party A receives the payment agreed in Statement 1, Appendix I.

 

Article 8 Party A shall guarantee that when delivering the house:

 

  

6

  

 

A.  There are no property right disputes and financial disputes relating thereto.

 

B.  Party A has not set any mortgage or has cleared any mortgage set before;

 

C.  Party A has paid the house maintenance fund.

 

Party A shall assume all liability if there is any inconsistency from what is guaranteed above.

 

Article 9  Party B shall handle the delivery procedures on the location required by Party A within the deadline agreed in Article 7. The acknowledgement of a successful delivery will the signoff of the “House Handover Sheet” made by both parties. The risks and responsibilities of the house are transferred from Party A to Party B at the house delivery date.

 

The house is to be used as office and workshop. Party A shall provide Party B with a "Housing quality assurance notice", "Housing Manual,” and "Preliminary property management services contract." Party A shall provide Party B with reliable information of the measured floor space, if required.

 

If Party A does not provide the material set forth in this agreement, Party B has the right to refuse to accept the house. Party A will be responsible for the resulting delay in delivery.

 

Article 10  If the decoration and furbishment of the house cannot be achieved to the standards agreed in Appendix III, then Party B has the right to demand from Party A compensation for the difference.

 

If the parties have a dispute about an identified standard, they can assign a qualified quality-supervising institution to give its written opinion upon the matter in dispute.

 

Article 11  If Party B pays the total price of the house but does not handle the delivery procedure, Party A shall send a written notice to perform, unless the delay is due to Party A’s own reason. If Party B still does not handle the delivery procedure on the postponed delivery date specified in the notice to perform, the risks and responsibilities are automatically transferred to Party B after the postponed date.

 

  

7

  

 

If the deadline of payment (see Appendix I) is later than the delivery date agreed in Article 7, (which means if Party B has not pay the full price), and Party B does not handle the delivery procedure on time, Party A shall send a written notice demanding performance, unless it is due to any reason because of Party A. Party A has the right to unilaterally terminate the contract if Party B does not handle the delivery procedure by the postponed delivery date specified in the notice.

 

Article 12  Party A shall inform Party B in writing when Party A exercises the right to unilaterally terminate the contract. Party A shall return the previously received payments made to Party B within 30 days from the issuance of the notice, after deducting any penalties due. The penalty accounts for 5% of the total price.

 

Article 13  Except for events of force majeure, Party A shall pay liquidated damages if Party A cannot hand over the house to Party B within the deadline agreed in article 7. Liquidated damages account for 0.05% of the total price, calculated from the second day of the delivery deadline specified in Article 7 until the payment is made. Party B can exercise the following if the overdue period is over 30 days:

 

A.  Party B has the right to unilaterally terminate the contract.

 

B.  The contract will continue if Party A pays the penalty. Party B has the right to inform Party A of its unilateral termination of the contract if the delay of delivery period is more than 60 days. Party A shall return the previously received payments and related interest (the interest on the previous receipts, calculated at the loan rate announced by the People’s Bank of China, from the date payment is made until the contract termination) within 15 days from receipt the written notice. Additionally, Party A shall also pay the liquidated damages to Party B. If Party A’s default results in any economic loss of Party B, the difference between the penalty and actual loss shall be compensated by Party A.

 

  

8

  

 

Article 14  Party A is responsible for the repairs and maintenance of the house after the transfer date and this warranty period lasts for two years. The range of repairs and maintenance is agreed by both parties in Appendix V according to the related regulations in the Construction Quality Management Ordinance issued by the State Council and the Shanghai Real Estate Transfer Ordinance.

 

Article 15  If the main building structure is deemed disqualified, Party B can engage the qualified quality-supervising institution to perform measurement and testing. Party B has the right to unilaterally terminate the contract if the disqualification of main building structure is determined.

 

Article 16  If there is any other quality issue, Party B has the right to ask Party A repair the house during the warranty period for free. Besides, further compensation equal to the costs of the repairs should also be paid to Party B.

 

If both parties have a dispute about the quality of the house, they can engage the qualified quality-supervising institution to give written opinion as the evidence for dealing with the dispute.

 

Article 17  The tax expenses occurred under this contract shall be afforded by both parties, respectively.

 

  

9

  

 

Article 18  Party B agrees that the house shall be managed by the house managing company entrusted by Party A (see ”Preliminary property management services contract”) from the delivery date. The house owner committee is not set up yet in the house management area.

 

The house managing company entrusted by Party A shall be in charge of the management until the new house managing company is hired by the house owners committee.

 

Article 19  It is agreed that Party A/Party B/both Parties declare(s) the price, apply(s) for the house transfer and the house proprietary certificate to Shanghai Municipal Housing, Land and Resources Administration Bureau before XXXX.

 

If Party A is in default due to its fault, and Party B cannot get the certificate before 15 June, 2011, then there will be a penalty of 5% of the total price. Party B has the right to unilaterally terminate the contract if the certificate is not obtained within 30 days after 15 June, 2011.

 

Article 20  When Party B exercises the right of unilaterally terminating the contract, written notice should be sent out to Party A .Party A shall return the funds of all payments (including the interests, calculated by the deposit rates announced by the People’s Bank of China) to Party B and afford the compensation equal to for 5% of the total price.

 

The payment mentioned in the contract represents the price paid directly by Party B and through bank loan.

 

Article 21  According to the contract, if Party A or Party B unilaterally terminates the contract, the penalty paid before the termination of the contract should be deducted from the consideration, if any.

 

  

10

  

 

Article 22  If Party A or Party B has any objection to the unilateral termination of the contract, the party should confirm the validity of the termination through the dispute resolution authority (described in Article 27), within 15 days from receipt of the written notice from the opposite party.

 

Article 23  The building can only be used as an office and workshop. Party B shall not alter the usage and structure of the house during its use period. Unless otherwise agreed in the appendix, Party B has the right to use the public access areas and facilities associated with the house. And Party B shall obey the related rules and regulations, respect the social ethics, maintain the communal facilities and respect the public interests.

 

Article 24  The house bought by Party B shall not be separated from its land use right. When the ownership of the house is transferred, the rights, obligations and responsibilities which are agreed upon in the grant contract of land use right signed between Party A and Shanghai Pudong Land Development Holding Corporation shall be transferred to Party B by law.

 

Article 25  Matters that have not been addressed herein or are to be modified shall be agreed upon by both parties through supplementary terms, supplementary agreements or modification agreements. The supplementary terms, supplementary agreements or modification agreements constitute an integral part of this contract. If there is any inconsistency, the supplementary terms, supplementary agreements or modification agreements will take priority over the terms of this agreement.

 

Article 26  One party shall deliver documents, reply and contact with the other party in writing by registered letter or direct service to the address listed on the contract or the changed address notified by the other party in the manner mentioned above.

 

  

11

  

 

Article 27  The contract is governed by the laws of People’s Republic of China. Any dispute arising from the execution of the contract shall be resolved through consultation; if the consultation fails, the following ways shall be adopted (delete the unchecked):

 

1.  Go to arbitration committee for arbitration

 

2.  Filing a suit with the people’s court

 

Article 28  The Contract is effective from the contract signature date.

 

Article 29  The contract is made in 6 duplicates, with the same legal effect. Three of them are to be held by the seller and buyer, respectively. One is hold by__________________.

 

  

12

  

 

Appendix I

 

Payment schedule and manner

 

1)  Party B shall pay Party A 40% of the total price through bank transfer within 10 working days after the contract signed, with amount of RMB 19,394,489.4.

 

2)  Both parties agree that the security deposit, amounting to RMB 1,998,548.15 paid by Party B during the house leasing period is deductible from the first installment. Thus the actual first installment to be paid will be RMB 17,395,941.25.

 

3)  Party B shall make the remaining payment by bank acceptance within 10 working days after the contract was signed. The amount of this part to be paid will be RMB 29,091,734.1. The maturity date of the bank acceptance shall be no later than October 10, 2011. Except for the force majeure, if the bank acceptance is not cashable, Party B shall still make the payment to Party A before the deadline according to the agreement and pay the default penalties, which do not result from Party A’s fault.

 

4)  Party A shall handle the house transfer procedure with Party B in Shanghai Real estate Trading Center within 5 working days after Party A receives the bank acceptance mentioned in clause 3 above.

 

  

13

  

 

Supplementary terms

 

1. Party B can only install small central air condition systems in the building. Party B‘s decoration programs must be approved by the fire department, otherwise, all the liabilities and losses arising there from shall be borne by Party B.

 

2. Because Party B has previously occupied the house under a lease arrangement with Party A, both parties agree that the way to determine the purchase price of each square meter under this agreement will be according to the method agreed upon in the lease agreement signed on March 19, 2009.  This is as follows: Sales Price (RMB) = 21,080 (sales price) × 2663.79 (forecasted floor space) - 6805983.45 (rental fee already paid by Party B)/ 2663.79 (forecasted floor space) = RMB 18,525 / square meter.

 

3. The "Renewal lease agreement” which was signed on March 3, 2011 is automatically terminated when this contract performed.

 

  

14

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