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Processing Contract No: PL-DS/03 Date: JAN 02, 2016 Between: DAISY PHILIP CO., LTD Add: BINH LUC INDUSTRIAL COMPLEX, TRUNG LUONG COMMUNE, BINH LUC DISTRICT, HA NAM PROVINCE, VIET NAM Tel No: 84-16-9281-6800 Represented by: Mr Kim Dong Han – Vice Director (Hereinafter referred as Party A) And: PHILIP A&G CO., LTD Add: #1103, WOOLIM E-BIZ Ⅱ, 184-1 GURO-3DONG, GURO-GU, SEOUL, KOREA Tel : 82-2-890-7741, FAX : 82-2-890-7740 Represented by: Mr Kim Chang Wan – Director ( Hereinafter referred as Party B ) Both parties have agreed to conclude the present processing contract with the following terms and conditions: Recitals: Where as Party A is willing to reserve the production capacity of Part B for purpose of producing accessories for gaments upon the terms and conditions set forth in the present contract Where as Party B is willing to transfer the materials and accessories delivered by Party A into accessories for gaments to export Clause Commodity - Quantity - Price: COMMODITY Poly Spun 60S/3 5000m/roll Poly Spun 60S/2 5000m/roll Poly Spun 40S/3 5000m/roll Poly Spun 40S/2 5000m/roll Poly Spun 50S/3 5000m/roll Poly Spun 50S/2 5000m/roll Poly Spun 50S/2 10000m/roll Poly Spun 30S/3 2500m/roll Poly Spun 20S/3 2500m/roll Poly Spun 20S/4 2000m/roll Poly Spun 20S/8 1000m/roll Poly Core 45S/2 5000m/roll Poly Core 29S/2 2500m/roll Poly Core 29S/3 2500m/roll Poly Core 16S/3 2500m/roll Poly Core 16S/2 2500m/roll Poly Filament 50D/2 Hightenacity 5000m/roll Poly Filament 70D/2 Hightenacity 5000m/roll Poly Filament 70D/3 Hightenacity 5000m/roll Poly Filament 120D/2 5000m/roll Poly Stretch 150D/1 5000m/roll Poly Stretch 200D/1 5000m/roll Poly Stretch 600D/1 2500m/roll Poly Filament 100D/2 Hightenacity 5000m/roll Poly Filament 100D/3 Hightenacity 5000m/roll QUANTITY 1,100,000 500,000 70,000 50,000 460,000 50,000 200,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 UNIT roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll roll UNIT PRICE 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 Poly Filament 150D/3 5000m/roll POLY ELASTIC BAND 10MM POLY ELASTIC BAND 13MM POLY ELASTIC BAND 15MM POLY ELASTIC BAND 20MM POLY ELASTIC BAND 25MM POLY ELASTIC BAND 28MM POLY ELASTIC BAND 30MM POLY ELASTIC BAND 32MM POLY ELASTIC BAND 35MM POLY ELASTIC BAND 38MM POLY ELASTIC BAND 40MM POLY ELASTIC BAND 45MM POLY ELASTIC BAND 50MM POLY ELASTIC BAND 57MM POLY ELASTIC BAND 60MM POLY ELASTIC BAND 62MM POLY ELASTIC BAND 65MM POLY ELASTIC BAND 70MM POLY ELASTIC BAND 75MM POLY ELASTIC BAND 82MM • • • • • • 50,000 500,000 500,000 1,000,000 2,500,000 2,500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 roll m m m m m m m m m m m m m m m m m m m m 0.18 0.012 0.012 0.012 0.012 0.012 0.012 0.012 0.012 0.012 0.016 0.016 0.016 0.024 0.024 0.024 0.024 0.024 0.035 0.04 0.04 - Detail quantity, CMPT price of each order shall be specified in the annexes attached herewith to the present contract - Term of shipment : FOB Hai Phong / Noi bai Airport Clause Technical stipulation, sample, and quality inspection Party A has to make pre-production samples for party B's approval, the bulk production shall be started upon receipt of the approval comment from party B The pre-production sample shall be taken as final for bulk production or any dispute Party A undertakes to follow strictly Party B’s quality requirements, PP sample approval and technical know –how, neither to copy nor use party B’s sample or pattern to produce for the other companies Party B with their own account, shall appoint technicians or specialist to party A's factory to survey and control the production and attempt to solve all problems arising from the execution of present contract to avoid the interference with production progress and shipping schedule The authorized person from party B or from Buyer will take the final inspection before shipment, and will issue the inspection certificate to party A The quality of finished products are understood as acceptable by party B upon receipt of Shipping Advice from party B 03% of accessories extra to cover the wastage during production will be provided, on free of charges, by party B Samples: Clause Delivery term: A Delivery of materials & packages: • Party B will provide party A with all technical conditions and appropriated documents, such as original sample, pattern, • • • • worksheet/job orders, consumption rates, cutting breackdown, materials cards etc and other necessary conditions, on free of charges, at least days before bulk materials arrival, or at least 45 days before the delivery date of finished goods All bulk materials must be provided in complete & sufficient, on free of charges, for party A at least 30days before the delivery date of finished goods, on CIF Haiphong/Noibai as per Incoterms 2000 Unloading place: Haiphong/Noi Bai Delivery time: the delivery date of each style/order will be specified in the annexes of present contract Shipping documents for each parcel or shipment of materials, include: o 03 signed Packing List o 03 signed Commercial Invoice o 01 original or Surender Bill of lading, • • • • • • • • • • • The above full set shipping documents must be sent by emailing or fax to party A within 01 day after shipment date The original full set of above shipping documents must be sent to party A via courier, and must arrive at party A before the arrival of bulk materials at least 02 days in order to prepare the documentation for customs clearance The description of goods must be mentioned clearly in all above shipping documents to enable party A in doing customs procedures Warehouses charges, and other related costs arising from the incorrect shipping doc or late supply of shipping doc will be beared by party B Bulk materials must be delivered in full container to party B If party B can not arrange full container shipment for bulk materials as required, party A will accept to share only CFS charges for max 10(ten)CBM per each shipment only, the balance CFS charges must be beared by party B, and all handling charges, DO fee which are collected by Forwarder for these LCL shipments will be paid by party B also FAF fee will be paid by party B If bulk materials will be unloaded at other destination ports or airports than above stipulated destinations for any reason, all arisen charges for handling, loading/unloading, inland transportation from that destination place to HAIPHONG/NOIBAI must be beared by party B In certain cases that party B consider that some materials are available in Vietnam, then Party B can buy them in Viet Nam, both parties will make on spot customs procedures for these materials, or Party B will authorize party A to buy them in Viet Nam, then will pay back to party A List of items will be specified clearly in the supplement of present contract All materials which are sent via Hand-Carry Service must be submitted with legal documents Settlement of leftover materials or wastes/cast-offs: all leftover materials or wastes/cast-offs related to the contract will be moved to next contract(s), or will be shipped back to party B, or will be disposed in accordance with the current regulations of Viet Nam All costs related to the settlement of leftover materials or wastes/cast-offs will be covered by party B Party A will deliver finished products to Party B's buyers, on FOB Haiphong or FCA Noibai as per Incoterms 2000 • Place of delivery: Haiphong port /Noi bai airport • Delivery date: will be specified in the annexes • Party B shall provide party A with Shipping Advice at least 10days before delivery date, to enable party A to prepare as well as customs procedures for shipment All informations such as Forwarder name, Consignee name, Notify name, Style/P.O no., quantity, FOB price, Destination port etc… must be showed clearly on the Shipping Advice • Shipping documents: o For SEA shipment: full set of original shipping documents will be sent directly to party B's office in Viet Nam or nominated forwarder in Viet Nam within 07days at latest after the vessel etd date o For AIR shipment: full set of original shipping documents will be sent together with goods to the nominated forwarder o DOC dispatch fee which are collected by the forwarder for each shipment of finished goods will be paid by party B • Documents for payment: full set of documents for payment include 03 signed Packing list, 03 signed CM invoice, 01 copy of Bill of lading (or A.W.B); 01 copy of C/O will be sent to party B's office in Viet Nam within 07days at latest after the etd date Clause Marking and packing Packing and marking must be followed strictly the packing instruction from party B Clause Label, trade marks using and the origin of goods Party B is legally responsible for the origin of goods and the use of all kind of labels, brand names, logos, trade marks to be attached to/printed on/ embroidered on/appeared on the finished products and their accessories as well as on their packaging and/or packaging materials by manner In case that the label & the origin of goods which are registered in Vietnam, party B has to represent the certificate of origin & label using of said goods issued by The Institute of Industrial property of Vietnam to the authority bodies in Vietnam Party B must bear claim related to the origin of goods and the right of using such labels, brand names, logos, trade marks from any third party (if any) Party A undertakes to use label, brand name, logos, trade marks supplied by party B for the right purpose, and will not be responsible in any cases, for using such kind of labels All products must be produced at Party A’s factory in Viet Nam Clause Payment term Payment must be made by L/C, in U.S dollar, 90-120 days after on board date, based on available documents for payment which party B receive from party A at the payment due date, in favour of: Bank : Korea Exchange Bank Ha Noi Branch ACCOUNT VND NO: 648102019809 ACCOUNT USD NO: 648102019794 Swift code: KOEXVNVX • • • • Clause Other conditions Any dispute, or breach or termination of the contract, or in connection hereto must be settled by amicable negotiation Should such settlement can not be reached, the case must be lodged at The Vietnam International Arbitration Centre attached to the Chamber of Commerce & Industry of vietnam - No: 09 Dao Duy Anh Str Hanoi, Vietnam The hearing must be made in conformity with the rules of the above centre Any claim arising out from the contract or in connection hereto must be lodged within 90 days from B/L date Otherwise, the claim will be automatically no longer valid The claim must be in written and accompanied by proving documents for evidence, and must be replied within 15 days after the date of occurrence Any enclosure, supplement and amendment related to the present contract shall be valid by written agreement duly signed by authorized officers, on the date first above written In witness whereof the parties hereto have caused this contract to be signed by their duly authorized officers, on the date first above written The contract will be valid after its signature and expire on JAN 31 2017 in English, into 06 (six) copies of equal validity, three of which are kept by each party • Copy via Fax is acceptable FOR AND ON BEHALF OF PHILIP A&G CO., LTD FOR AND ON BEHALF DAISY PHILIP CO., LTD