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1、samplemanufactureagreement consignor:xxxcompanyltd(hereinafterreferredtoas“consignor”). address: contacts: tel: fax: supplier: address: contacts: tel: fax: thissamplemanufactureagreement(hereinafterreferredtoas “thisagreement”)isenteredintoasof (hereinafterreferredtoas “effectivedate”),byandbetweenx
2、xxcompanyltd(hereinafterreferredtoas “consignor”)and_(hereinafterreferredtoas “ supplier” ).consignorandsuppliershallbehereinafterrespectivelyreferredtoasthe “party”orcollectivelyreferredtoasthe“parties”. 1.term 1.1thisagreementshallbeeffectiveasoftheeffectivedateandshallbeeffectiveforaperiodofone(1
3、)year.aftertheexpirationoftheinitialterm,thisagreementshallbeautomaticallyrenewedforsuccessiveperiodsofone(1)yearunlessonepartynotifiestheotherpartyinwritingnotlessthanninety(90)dayspriortotheendoftheinitialoranyrenewalterm,thatthisagreementshallterminateattheendofthethencurrentterm,orunlessearliert
4、erminatedinaccordancewiththetermsandconditionsofthisagreement. 2.scopeofagreement 2.1thisagreementshallbeapplicabletoanyandallmanufacturebusinessofsamplesbetweenconsignorandsupplier.thepartiesacknowledgethatthisagreementwillnotconstituteacommitmentforconsignortoorderanyparticularquantityofsamplefrom
5、supplier. 3.purchaseorder 3.1samplestobepurchasedbyconsignorfromsuppliershallbesubjecttoseparatepurchaseorders(hereinafterreferredtoas “purchaseorder ”),whichwillspecifyparticulars,includingbutnotlimitedtoprice,quantity,deliverydateanddescriptionofthesamples.consignorhastherighttoplacepurchaseorders
6、withsupplier.suppliershallnotifyconsignorinwritingwhetherornotsupplieracceptspurchaseorderswithintwo(2)workingdaysfromthedateofreceiptofthepurchaseorder.provided,howeverthat,aslongasthepurchaseordercomplieswiththetermsandconditionsofthisagreement,suppliershallmakeitsreasonableandbesteffortsingoodfai
7、thtoacceptthepurchaseorder.ifconsignordoesnotreceivesuppliersreplyregardingtheacceptanceorrefusalofapurchaseorderwithinthesaidperiod,thepurchaseordershallbedeemedtohavebeenacceptedbysupplier.thepurchaseordershallbecomeeffectiveuponacceptance(actualordeemed)bysupplier.consignorshallreservetherighttov
8、aryapurchaseorderat anytimebeforethesuppliersconfirmationofthepurchaseorderwithoutincurringanyliabilitytosupplier.incasethereareanyconflictsbetweenthisagreementandthepurchaseorders,theprovisionsofthisagreementshallprevail. 3.2consignorhastherighttomodifythecontentofpurchaseordersatanytime,includingb
9、utnotlimitedtoquantity,deliverydateanddesignrequirements.consignorshallnotifysupplierinwritingwithinareasonableperiod.suppliershallpromptlymanufacturesamplesinaccordancewiththemodifiedpurchaseordersplacedbyconsignor.intheeventthatconsignorcancelsanypurchaseorder,thesuppliershallceasemanufacturingsuc
10、hsamplesimmediatelyuponreceiptofconsignorscancellationnotice.3.3ontheconditionthatconsignormodifiesorcancelsthepurchaseorders,suppliersshallmakebesteffortstoreducelosseswithproperarrangementoftools,materials,packages,staff,transportation,etc.anyreasonableandnecessaryadditionalcostsactuallyincurredby
11、supplierresultingfromconsignorsmodificationorcancelationofapurchaseordershallbebornebyconsignorunderthepremisethatsupplierhassubmittedevidencetoprovethatsuchadditionalcostsisattributabletoconsignorandconsignorhasconfirmedinwriting.suppliershallbearthelossesincurredandexpandedduetotheirowncause. 4.pr
12、iceandpayment 4.1thepriceforthesamplesshallbemutuallyconfirmedbythepartiesandspecifiedinthepurchaseorder.allsamplesunitpricesshallincludethetotalsamplespackage,individualandmastercartons,cartoninserts,andsamplesliterature.futurepriceagreementsforongoingsamplesandotheradjustmentstothesamplesshallbeas
13、mutuallyagreedbythepartiesinwriting. 4.2suppliershallbeentitledtoissuequalifiedinvoicetoconsignorfortheadvancepayment,thatis,thirtypercent(30%)ofthetotalpriceofthepurchaseorder(hereinafterreferredtoas“advancepayment”),atanytimeafteracceptanceofthepurchaseorder.consignorshallmakepaymentwithinthirty(3
14、0)workingdaysfromitsreceiptofthequalifiedinvoice. 4.3suppliershallbeentitledtoissuequalifiedinvoicetoconsignorforthesecondpayment,thatis,seventypercent(70%)ofthetotalpriceofthepurchaseorder(hereinafterreferredtoas“secondpayment”)atanytimeafterconsignorsacceptanceofthesimples.consignorshallmakepaymen
15、twithinthirty(30)workingdaysfromitsreceiptofthequalifiedinvoice. 4.4eachinvoiceshallquotethedateandthenumberofthepurchaseorder: 5.materials 5.1allmaterialshallbefurnishedbysupplier. 5.2thematerialsshallcomplywiththequalitystandardsofconsignorandallotherapplicablequalitystandards. 5.3suppliershallcar
16、ryoutstrictexaminationonthematerialsatthetimeitreceivesthematerials.suppliershallkeeporiginalrecordsoftheaforesaidinspectionandprovidetoconsignoruponconsignor srequest.6.quality 6.1consignorwillsenddesigndocumenttosupplierviaemailorbyotherwayasconsignorchooses,andsuppliershallacknowledgethereceiptof
17、thedesigndocumentinwritingwithcompanysealaffixedtheretotoconsignorwithintwo(2)workingdaysafterthedateofreceiptofthedesigndocument.suppliershallmanufacturethesampleincompliancewiththeaforesaiddesigndocument. 6.2wheresupplierfailstoprovidethesampleontime,consignorshallhavetherighttochargesupplierapena
18、ltyamountingto_andrequiresuppliertocontinuetoprovidethesamplewithinthegraceperiodgrantedbyconsignor.wherethesampleisnotprovidedwithintheaforesaidgraceperiod,consignorshallhavetherighttoterminatethecooperativerelationshipunderthisagreementbetweentheparties. 6.3wherethesampleisrejectedbyconsignorinwri
19、tingtosupplier,consignorshallhavetherighttorequiresuppliertomakeamendmentstothesamplewithinthetimelimitspecifiedbyconsignor,andtheamendmentsshallmeettherequirementsofconsignor.wheresupplierfailstomaketheaforementionedamendmentsontime,consignorshallhavetherighttochargesupplierapenaltyamountingto_and/
20、orterminatethecooperativerelationshipunderthisagreementbetweentheparties. 6.4intheeventofenquiriesonthedesigndocumentsandtherequirementsofconsignoronthesamplesduringthemanufacturingprocessthereof,suppliershallconsultwithconsignorintime. 7.packingandtransportation 7.1supplierwarrantsthatatthetimecons
21、ignorreceivesthesamplespackingandtransportationofthesampleswillcomplywithrequirementsofconsignorsintermsofmannerandstandard. 8.deliveryandinspection 8.1 “delivery”meansthesupplyanddeliveryofthesamplesbysuppliertoconsignorinaccordancewiththepurchaseorder,anddeliverthesampletogetherwithspecification,p
22、hotoandserialnumberidentificationtoconsignorviamailorbyotherwayasdesignatedbyconsignorwithinthetimelimitassetforthinthepurchaseorder. 8.2supplieracknowledgesthattimeisoftheessenceandthatanydelayindeliveryofthesamplesmaycausematerialdamageandlossestoconsignor.therefore,suppliershalldeliverthesamplesi
23、nstrictcompliancewithitsobligationsunderthisagreementandthepurchaseorder. 8.3ifadelayindeliveryofthesamplesisanticipatedbysupplier,suppliershallnotifyconsignorpromptlyaftersupplierbecomesawareofsuchpotentialdelay,advisingthereasonandtheestimateddurationofthedelay.insuchevent,inadditiontoanyremedyund
24、eranyapplicablelawsandregulations,consignorshallhavetherightto: 8.3.1requiresupplier,atsupplier sexpense,touseanyavailablemeansofexpeditedtransportationfordeliverywithinthetimelimitspecifiedbyconsignor;or 8.3.2chargesupplieronepercent(1%)orrmb500(whicheverishigher)perdayofthetotalpriceoftheaffectedp
25、urchaseorderaspenaltyifadelayindeliveryofthesamplesoccurred;or 8.3.3rejectthesamplesandberefundedtheadvancepaymentofthepurchaseorder,andchargesupplierthirtypercent(30%)orrmb50000(whicheverishigher)ofthetotalpriceoftheaffectedpurchaseorderasapenaltyifdeliveryofthesamplesisdelayedformorethan10days. 8.
26、3.4consignorshallhavetherighttoclaimagainstsupplieranyandalllosses,damages,costsandexpenses(includinglegalexpenses)incurredorpaidbyconsignor. 8.4ifsupplierdeliversthesamplesinexcessoftheamountsetoutinthepurchaseorder,orinmorethanthree(3)workingdaysadvanceofthedateofdelivery,consignorshallhavetherigh
27、tto: 8.4.1returnsuchtotalamountof,orsuchpartinexcessof,thesamplestosupplieronfreightcollectbasis;or 8.4.2acceptsuchsamplesinaccordancewiththetermsandconditionsofthisagreementandthepurchaseorder. 8.5ownershipandriskofthelossordamagetothesimplesshallpassfromsuppliertoconsignoratthetimeofconsignorsacce
28、ptanceofthesamples. 8.6supplierwarrantsthatthesamplesshallbefreefromandclearofanylienoranyothertypeofsecurityinterestorclaimfromanyperson.suppliershallindemnify,defend,andholdharmlessconsignorfromanylienandanyclaimuponthesamplesand/orthematerialarisingfromorinconnectionwiththisagreement,including,bu
29、tnotlimitedto,workerswages,thematerial,ortheservicestobefurnishedbysupplier. 8.7consignorshallhavesixty(60)workingdaysfromthedateofreceiptofsamplestoinspectandtestforconformitywithdesigndocumentandotherrequirementsofconsignor. 8.8ifanysamplessuppliedbysuppliertoconsignorarenotpackedinaccordancewithp
30、ackingrequirementsofconsignor,consignor,withoutprejudicetootherrightsprovidedherein,shallhavetherighttorejectsuchsample sandreturntosupplieratsuppliersexpensethewholeoranypartofsuchsamples. 8.9ifanon-conformityisconfirmedbyconsignorduringtheinspectionafterconsignorsreceiptofthesamples,inadditiontoan
31、yremedyunderanyapplicablelawsandregulations,consignorshallhavetherightto: 8.9.1acceptthewholeoranypartofthesamplesatadiscountedprice,whereconsignor,initsowndiscretion,deemsthatthereasonfornon-conformityisminor.thediscountedpriceforsuchsamplesshallbeagreeduponbytheparties;or 8.9.2rejectthesamplesandb
32、erefundedtheadvancepayment,andchargesupplierthirtypercent(30%)ofthetotalpriceoftheaffectedpurchaseorderasapenalty.furthermore,consignorshallhavetherighttoclaimagainstsupplieranyandallliability,losses,damages,costsandexpenses(includinglegalexpenses)awardedagainstorincurredorpaidbybuyertherefrom;or 8.
33、9.3rejectthesamplesandrequiresupplier,withinatimelimitspecifiedbyconsignor,toremedyfullythenon-conformityorreplacetheaffectedsamplesandresubmitthesamplesforre-inspection.insuchevent: (a)consignorshallhavetherighttowithholdthesecondpaymentofthepurchaseorder,untiltheresubmittedsamplesareacceptedbycons
34、ignor; (b)consignorshallhavetherighttoinspecttheresubmittedsamples; (c)wheresupplierfailstoresubmitthesamplesontime,adelayindeliveryshallbedeemedandconsignorshallhavetherightssetforthinthisagreement;and (d)suppliershallbearallcostsincidentaltosuchrepairand/orreplacement,includingtheremoval,replaceme
35、nt,re-installation,and/orre-assemblyofthesamples,includingbutnotlimitedto,thecostsandexpensesarisingoutofthere-inspectionbyconsignoroftheremediedorreplacedsamples. 9.intellectualpropertyrights 9.1supplieracknowledgesthattherightsrelatedtotheimages,trademarks,patentsandotherintellectualpropertiesprov
36、idedbyconsignortosupplierduringtheperiodperformingthisagreementbelongstoconsignor.thisagreementshallnotbeconstruedasgivingtherights,ownershiporinterestofanyintellectualpropertypertainingtothesampletosupplier.supplierfurtheracknowledgesthatthegoodwillorreputationproducedintheprocessofusingtheintellec
37、tualpropertyofconsignorshallcompletelyandexclusivelybelongtoconsignor. 9.2suppliershallnotfurnishconsignorsintellectualpropertyrightsorconfidentialinformation(includingtechniquedata,drawing,etc.)toanythirdparty.withoutconsignor sconsent,suppliershallnotsell,lendorprovidethesampleshereunderbyitselfor
38、viaothers. 9.3suppliershallnotsellthecopiesorchange,reverseengineering,decomposeorimproveproductsormanufacturethederivativesofproductsduringthevalidtermofthisagreementorafteritstermination.anychange,derivativeorimprovementwithoutauthorizationshallbelongtoconsignorandtheownershipbelongstoconsignorabi
39、nitio. 9.4suppliershallprocureitsshareholdersandemployeesnottoviolatetheobligationshereunder,failingwhichsuppliershallbedeemedasindefault.suppliersviolationofthisarticleshallbedeemedasmaterialbreachoftheagreementandsuppliershallpayconsignorrmb200,000asliquidateddamages.iftheliquidateddamagesisinsuff
40、icienttocompensateforconsignor slosses,suppliershallalsocompensatethemarginbetweentheliquidateddamagesandallthelossessufferedbyconsignor(includinglegalcost,attorneyfee,etc.). 9.5wheresuppliercommitsabreachhereunder,consignorshallhavetheright,inadditiontoanyotherrelieforremedies,andwithoutprejudiceto
41、anyrightsrenderedherein,toterminatethisagreementand/oralloranypartofanypurchaseorderuponwrittennotice. 10. confidentiality 10.1supplierknowsthatitwillreceiveorknowtheconfidentialinformationdependingonthisagreementorotherwiseduringtheperiodperformingthisagreement.suchconfidentialinformationincludesbu
42、tnotlimitedtoanydocuments,materials,knowhowandotherinformationinwhateverform,whethertechnicalorcommercial,receivedorobtainedbyitoritsaffiliatesrelatingtothenegotiationorexecutionofthisagreementoranydocumentsexecutedinaccordanceherewith.unlessotherwiseagreedherein,theconfidentialinformationandconfide
43、ntialityobligationsshallbesubjecttotheconfidentialityagreementsignedbybothpartiesseparately. 10.2supplierpromisestokeeptheconfidentialoftheconfidentialinformationatanytimeandprotecttheconfidentialinformationfromtheft,damages,lossorunauthorizedacquisition.withoutthepriorwrittenconsentofconsignor,ifbo
44、thpartieshavecooperatedbeforesigningtheagreementinvolvingtheprovisionofconfidentialinformation,suppliershallnotdirectlyorindirectlyorauthorizeorpermitotherstouse,disclose,develop,copyormodifyanyconfidentialinformation,andnottoauthorizeorpermitathirdpartytouse,disclose,develop,copyormodifyanyconfiden
45、tialinformationforthepurposesbeyondtherightsandobligationshereunderintheeffectiveperiodandthereafter. 10.3supplierundertakesitwillonlydisclosetheconfidentialinformationtoitsmanagers,employees,agentsorcontractorsforthepurposeofthisagreement,andprocuresuchmanagers,employees,agentsorcontractorstoknowan
46、dobservethisarticleandtheconfidentialityobligationsagreedbybothparties. 10.4ifsupplierisawareofanynon-authorizeddisclosure,improperuse,embezzlementorotherdamages(whetheronpurposeornot),suppliershallnotifyconsignorimmediately. 10.5suppliershall,atcon signor srequest,returnalloriginals,copies,reproduc
47、tionsandsummariesofconfidentialinformationandallothertangiblematerialsanddevicesprovidedtosupplierasconfidentialinformation,oratconsignorsoption,certifydestructionofthesame. 10.6suppliermaydisclosetheinformationaccordingtothelaws,regulationsorthecommandofrelevantdepartments.whentheconditionallows,su
48、ppliershallnotifyconsignoroftheintendeddisclosureinadvancetogivereasonablechancestoconsignorfordefense. 10.7suppliershallensureitsshareholdersandemployeeswillnotbreachtheobligationshereunder,otherwisesuppliershall bedeemedasindefault.suppliersbreachofthisarticleortheconfidentialityagreementbetweenth
49、eparties,nomatterdirectlyorindirectly,shallbedeemedasmaterialbreachofagreementandsuppliershallpayconsignorrmb200,000asliquidateddamages.iftheliquidateddamagesareinsufficienttocompensateforconsignor slosses,suppliershallassumethemarginbetweentheliquidateddamagesandallthelossessufferedbyconsignor(incl
50、udinglegalcost,attorneyfee,etc.) 10.8thetermsandobligationshereundershallsurviveaftertheterminationorexpirationofthisagreement. 10.9wheresuppliercommitsabreachhereunder,consignorshallhavetheright,inadditiontoanyotherrelieforremedies,andwithoutprejudicetoanyrightsrenderedherein,toterminatethisagreeme
51、ntand/oralloranypartofanypurchaseorderuponwrittennotice. 11. warrantiesandliabilitytermination11.1supplierwarrantsthatsupplierwill,solelyforconsignor,manufacture,supplyanddeliversamplesinaccordancewiththedesigndocumentsprovidedbyconsignor(hereinafterreferredtoas“designdocument ”),andotherrequirement
52、sofconsignor,andwillnotquoteprices,manufacture,supplyordelivertheaforesaidsamplesorsamplesofthesameorsimilarappearancetoanythirdparty. 11.2supplierwarrantsthatthepriceandotherconditionsinregardtothesaleofthesamplesofferedhereunderorunderotheragreementsbetweenthepartiesinthefutureshallbenolessfavorab
53、lethanthepricesandotherconditionsofsalethatsupplierofferstoanyothercustomersforthesameorsimilarsamples.consignormaybenchmarkpricesbyspotbuys,quotes,orotherindependentdata.ifsupplieroffersmorefavorablepricesorotherconditionsofsaletoanyotherperson,suppliershalloffertothesametoconsignoronbotharetroacti
54、veandprospectivebasis. 11.3supplierfurtherwarrantsatalltimesthat: 11.3.1itwillcomplywithallgovernmentrequirementsthatmaybeapplicablefromtimetotime;and 11.3.2ithasobtainedallnecessarygovernmentalorothernecessarypermitsandapprovalsforthepurposeofthisagreement;and 11.3.3ithassufficientexperienceandabil
55、itytofulfillitsobligation;and 11.3.4itisfinanciallysolvent. 11.4suppliershallindemnifyconsignorinfullagainstallliability,loss,damages,costsandexpenses(includinglegalexpenses)awardedagainstorincurredorpaidbyconsignorasaresultoforinconnectionwith: 11.4.1anybreachbysupplierofanywarranty,covenantorother
56、provisionssetoutinthisagreement;and 11.4.2anyclaimthatthesamplesortheirpackaginginfringesupon,ortheirimportation,useorresale,infringesupon,thepatent,copyright,designright,trademarkorotherintellectualpropertyrightsofanyotherperson,exceptthesamplesmanufacturedstrictlyinaccordancewiththedesigndocuments
57、;and 11.4.3anyliabilityorsampleliabilityundertheapplicablelawunderwhichliabilityinrespectofthesamplesisawardedagainstorincurredorpaidbyconsignororitsagents,employees,employers,associates,affiliatesoranybusinesspartnerstowhomconsignorfinallyhastopayorhaspaid;and 11.4.4anyactoromissionofsupplieroritse
58、mployeesoragentsinsupplying,deliveringandinstallingthesamples. 11.5wheresuppliercommitsabreachhereunder,consignorshallhavetheright,inadditiontoanyotherrelieforremedies,andwithoutprejudicetoanyrightsrenderedherein,toterminatethisagreementand/oralloranypartofanypurchaseorderuponwrittennotice. 12. forc
59、emajeure 12.1neitherconsignornorsuppliershallbeliabletotheotherorbedeemedtobeinbreachofthisagreementbyreasonofanydelayintheperforming,oranyfailureofitsobligationsinrelationtothesamples,ifthedeliveryorfailureisbeyondthatpartysreasonablecontrolsothattheeffectcouldnothavebeenreasonablyexpectedatthetime
60、oftheconclusionofthisagreementorhavebeenavoidedorovercomebysuchparty.however,theaffectedpartyshallgivewrittennotificationofsuchdelay,includingtheanticipateddurationofthedelayorfailure,totheotherpartywithinfive(5)workingdaysaftertheeventoroccurrence. 13. termination 13.1theconsignorshallbeentitledtot
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