SERVICE AGREEMENT
THIS AGREEMENT , made and entered this September xxth, 2015 by and between:
(i) Vencorex (Thailand) Co., Ltd., a company organized and existing under the laws of Thailand and having a registered office at 555/1 Energy Complex, Building A, 15th Floor, Vibhavadi Rangsit Road, Chatuchak, Bangkok 10110, Thailand (“VCX”); and
(ii) Suzuyo Distribution Center (Thailand) LTD., a company organized and existing under the laws of Thailand and having a registered office at Charn Issara Tower Ⅱ Building, 21st Floor, 2922/260 New Petchaburi Road, Bangkapi, Huaykwang, Bangkok 10310, Thailand (“SDCT”);
WHEREAS:
(i) VCX is a company engaged in, inter alia, the business of Hexamethylene diisocyanate derivatives manufacturing in Thailand including import and export various cargos in Thailand , APAC and Middle East countries;
(ii) SDCT is a company engaged in, inter alia, the business of offering logistics services in Thailand including but not limited to domestic transport services; and
(iii) VCX desires to assign logistics operations regarding “Chemical” handled by VCX (hereinafter, “the Cargo”) in Thailand to SDCT under the terms and conditions set out herein and SDCT desires to accept such assignment.
WITNESSETH:
Article 1: General
1. VCX shall assign the operations in Thailand defined in Attachment 1 (hereinafter collectively “the Working Scope”) to SDCT, and SDCT shall accept the assignment.
2. VCX may assign operations other than the Operations defined in Paragraph 1, Article 1, to SDCT by agreement in writing on the details and the charges for the Operations.
Article 2: Performance of the Operations’
1. Matters that are required to perform the Operations shall be defined in an operations procedure manual or equivalent documents to be separately agreed on by the parties and integral part of this agreement as Attachment 4.
2. SDCT shall be deemed to have performed the Operations in an appropriate manner if it has complied with the operations procedure manual and other instructions relating to the Operations provided by VCX in writing (including fax and e-mail, this applies to all succeeding references) (hereinafter collectively “the Instructions”) and has performed the Operations with a level of competence normally required to perform such Operations.
3. As a rule, the Instructions provided by VCX shall be made in writing. Any verbal Instructions must be immediately followed up with a written document indicating the details of the Instructions. In the event that VCX delays in issuing the document containing the Instructions, then SDCT may issue an Instruction Confirmation Slip to confirm the details of the verbal Instructions. If VCX does not object to the details of the Instruction Confirmation Slip, the Instructions listed in the Instruction Confirmation Slip shall be deemed to have been given.
4. In the event SDCT believes that Instructions from VCX are required, it may request VCX to issue Instructions on how to perform the Operations. In this case, VCX shall issue SDCT with the Instructions on the matter being required without delay.
5. In the event that the Instructions are given by means of electronic communication agreed by both parties, then the printed output of the communication shall be deemed to constitute the written Instructions.
6. The working hours of SDCT are from 08:30 am to 17:00 pm, Mondays through Fridays, 08:30 am. to 12:00 am., Saturday, excluding the public holidays of Thailand and the New Year (December 31 through January 3) (hereinafter "Working hours"); provided, however, VCX may assign work outside the Working hours subject to the mutual consent of the parties.
7. SDCT shall have the sole responsibility for satisfying itself concerning the nature and conditions of the Distribution Center (which may need special attention for taking care of), the work and services to be performed by SDCT, including but not limited to the following:
(i) availability and quality of labor, water, electricity power, road conditions within the
Distribution Center;
(ii) climatic conditions and physical conditions at the Distribution Center; and
(iii) equipment and facilities needed prior to and during the performance of the services and the obligations of SDCT.
SDCT shall not file, claim or register and shall waive any preferential rights, liens and right of retention (hereinafter collectively referred to as “liens”) and shall prevent any liens from being claimed, filed or registered by any employee, servant or agent of SDCT against the Products.
8. SDCT shall, throughout the term of this Agreement
(i) have full regard for the safety of all persons entitled to be in warehouse and keep warehouse in an orderly state appropriate to avoidance of danger to such persons; and
(ii) provide and maintain at its own cost all lights, guards, fencing/ Wire-mesh gate, new safety shower with eye wash, warning signs and protection of the Products stored in the warehouse.
SDCT, at all times, shall keep the warehouse area in a neat, clean and safe condition and shall have the warehouse area fumigated and treated with insecticide throughout the term of this Agreement.
9. Throughout the term of this Agreement, SDCT shall conduct all operations in such a way as to
Minimize the impact upon the natural environment and comply with all laws, regulations and rule, of whatever nature, applicable to the warehouse. SDCT shall provide
1. Suitable equipment, facilities and precautions to prevent the discharge of contamination’s which may pollute the atmosphere, water or land area; and
2. Information and documents as required by VCX in all matters concerning environmental permits, reports, laws and regulations of whatsoever nature.
Article 3: Location of the Operation
1. The location of Operations shall be at the 88/53 Tpark Bangna KM39, Bangsamak, Bangpakong, Chachoengsao 24180 of Thailand (hereinafter "the Warehouse"); provided, however, this does not prevent VCX from requesting SDCT to transport the Cargo from the Warehouse to the delivery place specified by VCX as part of the Operations
2. SDCT hereby represents and warrants that it has obtained for the Warehouse all necessary permits and approvals required by Thai law for handling and storage of chemical products [as described in attachment 1].
3. SDCT shall take all necessary measures to prevent the warehouse from any flood and to ensure that the floor is in good condition with no sinkage.
Article 4: Instructions Concerning the Operations
1. VCX shall assign to SDCT the Operations in accordance with the terms and conditions listed in Attachment 2 of this Agreement including but not limited to the time to accept delivery at the Warehouse, the cut-off time for orders to provide information of the Cargo in the Warehouse or to make delivery.
2. SDCT shall process the amount of work indicated by VCX in accordance with the preceding paragraph on the specified date in an appropriate manner; provided, however, if the amount of work so informed exceeds the processing capacity of SDCT due to the number of available workers or for other reasons, VCX and SDCT shall discuss the matter in good faith and adopt reasonable measures, such as carrying forward a portion of the work to the next day.
3. To facilitate the smooth operations of SDCT, VCX will notify SDCT in advance if it anticipates a large increase or decrease in the amount of work to be performed for a certain day or period of time.
Article 5: Receiving
Prior to SDCT receiving of the Cargo, VCX shall notify SDCT, either in writing or by electromagnetic means as agreed by the parties, the warehousing information required to perform the Operations, such as the description of the Cargo, item numbers, quantity, and stored value.
Article 6: Inspection on Receiving the Cargo
1. SDCT shall, on receiving the Cargo, inspect it for damage and for deficient or excessive quantity against Delivery document/ Po., and shall issue a cargo receipt report to VCX. Any anomalies with the Cargo shall be clearly noted in the cargo receipt report and reported to VCX without delay. SDCT shall then wait for the Instructions; provided, however, unless agreement has been reached by the parties on the inspection methods or charges, the check of exterior anomalies by visual inspection shall suffice as the inspection.
2. VCX shall be responsible for losses relating to deficient or excessive quantities or damage to the Cargo discovered during the inspection mentioned in the preceding paragraph, except if they result from a failure of SDCT during unloading operations.
Article 7: Delivery from the Warehouse
1. SDCT shall not deliver the Cargo without a delivery order affixed with a seal or a signature that corresponds to the pre-registered seal or signature used for delivery (hereinafter, "the Delivery Seal"). In the event that a delivery order is processed through the electromagnetic means agreed on by both parties, then the printed output shall be considered to be the delivery order and the submission of the Delivery Seal or the confirmation of their matching shall not be required. (Delivery order or delivery order by electromagnetic means shall be hereinafter referred to as a “Normal Delivery Order”).
2. Notwithstanding the preceding paragraph, VCX may designate a person (hereinafter, “Authorized Person”) and register him or her at SDCT with the authority to instruct SDCT in relation to the delivery of specified Cargo without the Normal Delivery Order, and issue delivery instructions relating to specified Cargo verbally or by telephone; Provided, however, delivery instructions not made by a Normal Delivery Order shall only be effective in the event of an emergency and VCX shall perform the procedures in compliance with the Normal Delivery Order to SDCT without delay afterwards.
3. With regard to the delivery procedures under this Agreement, changes to the Delivery Seal or Authorized Person shall only become effective on rec