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NO.3FKFA83.11.16.
SERVICEAGREEMENT
ARTICLE
1.SERVICES
2.COMPENSATION
3.RELATIONSHIP
4.EXCLUSIVITY
5.TAXES
6.CONFIDENTIALITY
7.REPRESENTATIONSANDWARRANTIES
8.INDEMNIFICATION
9.TERM
10.TERMINATION
11.GOVERNINGLAW
12.ENTIREAGREEMENT
l3.AMENDMENTS
14.ASSIGNMENT
15.NOWAIVER
16.NOTICES
SERVICEAGREEMENT
THISAGREEMENTmadeandenteredintothis20thdayofMarch,byandbetweenMarubeniCorporation,acorporationdulyorganizedandexistingunderthelawsofJapan,withitsprincipalofficeat42,Ohtemachilchome,Chiyodaku,Tokyo,Japan(hereinaftercalled"Marubeni"),andChinasoftCorporation(hereinaftercalled"Chinasoft"),
WITNESSETH:
WHEREAS,MARUBENIwishestoemploytheservicesofChinasoftasanadvisorandconsultantwithrespecttoAccountingSystem;and
WHEREAS,ChinasoftiswillingtoperformsuchservicesforMARUBENIonthetermsandconditionshereinaftersetforth.
NOW,THEREFORE,inconsiderationoftheforegoingpremisesandthemutualcovenantshereinaftersetforth,thepartiesheretoherebyagreeasfollows:
ARTICLE1.SERVICES
1.1.MARUBENIherebyrequestsandChinasoftherebyagreestoperformthefollowingservicesforMARUBENI,duringthetermofthisAGREEMENT:
(a)
(b)
ARTICLE2.COMPENSATION
2.1.AsfullcompensationfortheservicestoberenderedbyChinasofttoMARUBENIhereunderduringthetermofthisAGREEMENT,MARUBENIshallpayChinasoftthesumofUnitedStatesDollarsthreemillion(U.S3,000,000.00)peryear,payableinequaltwoinstallmentsofUnitedStatesDollarsonemillionfivehundredthousand(U.S1,500,000.00)withinseven(7)daysafterthelastdayofeachhalfyearbytelegraphictransferremittancetoChinasoft'sdesignatedbankaccount.Thecompensationshallbereviewedyearlybythepartiesheretopriortoeachanniversaryofthedatehereof.
(OPTION1)
2.2.AllcostsandexpensesincurredbyChinasoftinconnectionwiththeperformanceofitsobligationshereundershallbesolelyborneandpaidbyChinasoftandMARUBENIshallinnoeventberesponsibletherefor.
(OPTION2)
2.2.MARUBENIshall,promptlyuponreceiptofasuitableaccountingofsuchexpenses,reimburseChinasoftforalltransportation,hotel,entertainmentandotherexpensesactuallyincurredbyChinasoftinconnectionwiththeperformanceofitsobligationshereunder;provided,however,thatifthetotalamountoftheexpensesexpectedtobeincurredduringanyone(l)year,otherthanexpensestobeincurredinconnectionwiththeperformanceofChinasoft'sobligationsatthespecificrequestofMARUBENI,willexceedUnitedStatesDollarsonemillion(U.S.$1,000,000.00),ChinasoftshallobtainadvanceapprovalfromMARUBENIwithregardtosuchexpenditure.MeansandmethodsofaccountingforsuchexpensesshallbeadvisedtoChinasoftbyMARUBENI.
ARTICLE3.RELATIONSHIP
3.1.ChinasoftisanindependentcontractorandnotanemployeeoragentoforpartnerorjointventurerwithMARUBENIbyvirtueofthisAGREEMENTandnothingcontainedinthis
AGREEMENTshallbedeemedorconstruedasconstitutingChinasoftasanagentorlegalrepresentativeofMARUBENIforanypurposewhatsoever,orasconferringuponChinasoftanyrightorauthoritytoassumeorcreateanyobligationorresponsibility,expressorimplied,orallyorinwriting,onbehalfoforinthenameofMARUBENI,ortoacceptlegalprocess,ortomakeanywarrantyorrepresentationonbehalfofMARUBENI,ortobindorrenderMARUBENIoranyofitspropertyliableinanymannerwhatsoeverwithoutMARUBENI'sexpressauthorizationinwritingtherefor.
ARTICLE4.EXCLUSIVITY
4.1.Chinasoftshall,duringthetermofthisAGREEMENT,actexclusivelyforMARUBENIwithrespecttothesubjectmatterhereofandshallnotrepresentoractonbehalfofanythirdparty,directlyorindirectly,iftodosomight,inMARUBENI'ssolejudgment,conflictwithorcompromiseMARUBENI'sinterestshereunder.
ARTICLE5.TAXES
5.1.Alltaxes,duties,levies,impostsorothercharges,whetherintheformofwithholdingorotherwise,tobeleviedorassessedbyanylevelofgovernmentofanycountry,oranyagencyorinstrumentalitythereof,onthecompensationstipulatedinARTICLE2.1hereoforthereimbursementoftheexpensesstipulatedinARTICLE2.2hereofandallcostsandexpensestobeincurredbyMARUBENIinconnectionwiththepaymentofthecompensation,orthereimbursementoftheexpensesasaforesaidshallbeborneandpaidbyChinasoft.
ARTICLE6.CONFIDENTIALITY
6.1.ChinasoftacknowledgesthatcertainsecretandconfidentialinformationbelongingtoMARUBENImaybefurnishedtoChinasofthereunder.
.Chinasoftshalltreatsuchinformationasstrictlyconfidentialandshallnotdisclosesuchinformationtoanyotherperson,firmorcorporationorusesuchinformationforanypurposeotherthantoperformitsobligationshereunder.
.ThisprovisionshallsurvivetheterminationofthisAGREEMENT,forwhateverreason.
ARTICLE7REPRESENTATIONSANDWARRANTIES
7.1.ChinasoftherebyrepresentsandwarrantstoMARUBENIthat:
(a)ChinasoftislegallyfreetoenterintothisAGREEMENT;
(b)NeithertheexecutionofthisAGREEMENTnortheperformanceofanyofthetermsandconditionshereofwillconflictwithorviolateanytermorconditionofanyotheragreementtowhichChinasoftisapartyorbywhichChinasoftmaybebound,and
(c)Chinasoftshallcomplywithallapplicablelaws,ordersandregulationswhenperformingitsobligationshereunder.
7.2.Chinasoftshallnot,inconnectionwiththeperformanceofitsobligationsunderthisAGREEMENT,makeanypaymentorgiveanythingofvaluetoanythirdpartyifsuchpayment:
(a)isintendedtobeusedforpoliticalpurposesortoinfluenceanyofficialoremployeeofanygovernment,orofanysubdivision,agencyorinstrumentalitythereof;
(b)wouldconstituteabribe,kickbackorillegalpayment;or
(c)wouldresultinthedenialofataxdeductionorothertaxbenefittoMARUBENI.
ARTICLE8.INDEMNIFICATION
ChinasoftherebyagreestoindemnifyandholdMARUBENIharmlessfromandagainstanyloss,damage,cost,claimorliabilitywhichmaybeincurredbyorassertedagainstMARUBENIasaresultofabreachbyChinasoftofanyterm,condition,representationorwarrantycontainedinthisAGREEMENT.
ARTICLE9.TERM
9.1.ThisAGREEMENTshallbecomeeffectiveonthedatefirstabovewrittenandshall,unlessearlierterminatedpursuanttoARTICLE10hereof,continueforaninitialtermofone(1)year.
9.2.Thereafter,unlessearlierterminatedpursuanttoARTICLE10hereof,thisAGREEMENTshallbeautomaticallyextendedforadditionalperiodsofone(1)yeareachunlessonepartyinformstheotherpartyofitsintentiontoterminatethisAGREEMENTatleastfourteen(14)dayspriortotheexpirationoftheinitialtermoranyextensionthereof.
ARTICLE10.TERMINATION
10.1.EitherpartymayforthwithterminatethisAGREEMENTbynoticetosucheffecttotheotherpartyiftheotherpartycommitsabreachofanytermorconditionofthisAGREEMENTandfailstoremedythesamewithinthirty(30)daysafternoticefromthebreachanddemandingthatthesameberemedied.
10.2EitherpartymayforthwithterminatethisAGREEMENTatanytimebynoticetosucheffecttotheotherpartyifbankruptcy,insolvencyorreorganizationproceedings,orotherproceedingsanalogousinnatureoreffect,areinstitutedbyoragainsttheotherparty,theotherpartyisdissolvedorliquidated,whethervoluntarilyorinvoluntarily,areceiverortrusteeisappointedforallorasubstantialpartoftheassetsoftheotherpartyortheotherpartymakesanassignmentforthebenefitofcreditors.
10.3.Anythingcontainedhereintothecontrarynotwithstanding,MARUBENImayterminatethisAGREEMENTatanytimeuponthirty(30)days’noticetosucheffecttoChinasoftifMARUBENIdecides,initssolediscretion,thattheobjectivesofthisAGREEMENTarenolongerattainableorthatnofurtherbenefitwouldaccruetoMARUBENIbyreasonofthecontinuanceofthisAGREEMENT.
ARTICLE11.GOVERNINGLAW
11.1.ThisAGREEMENTshallbegovernedbyandconstruedinaccordancewiththelawsofJapan.
ARTICLE12.ENTIREAGREEMENT
12.1.ThisAGREEMENTconstitutestheentireagreementbetweenthepartiesheretoandwhollycancels,terminatesandsupersedesallpreviousnegotiations,agreementsandcommitments,whetherformalorinformal,oralorwritten,withrespecttothesubjectmatterhereof.
ARTICLE13.AMENDMENTS
ThisAGREEMENTshallnotbeamended,changedormodifiedinanymannerexceptbyaninstrumentinwritingsignedbyadulyauthorizedrepresentativeofthepartyagainstwhomenforcementissought.
ARTICLE14.ASSIGNMENT
ThisAGREEMENTispersonalinitsnatureandChinasoftshallnotassign,transferorotherwisedisposeofanyofitsrightsorobligationshereunder,inwholeorinpart,withoutthepriorwrittenconsentofMARUBENItherefor.
ARTICLE15.NOWAIVER
15.1NofailuretoexerciseordelayinexercisinganyrightorremedyunderthisAGREEMENTbyMARUBENIshalloperateasawaiverthereoforofanyotherrightorremedywhichMARUBENImayhavehereunder,norshallanysingleorpartialexerciseofsuchrightorremedyprecludeanyfurtherexercisethereoforofanyotherrightorremedywhichMARUBENImayhavehereunder.
15.2.MARUBENI'srightsandremediesprovidedhereinarecumulativeandnotexclusiveofanyrightsandremediesprovidedbylaw,inequityorotherwise.
ARTICLE16.NOTICES
16.1.Allnotices,requestsorothercommunicationsrequired
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