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EXHIBIT 10.11
ZINDART LIMITED AND XXXXX XXX TOY FACTORY
SUPPLEMENTAL AGREEMENT FOR THE EARLY TERMINATION
OF PROCESSING IMPORTED MATERIALS FOR TOYS
PARTY A: GUANGZHOU LIGHT INDUSTRIAL PRODUCTS GROUP TOYS IMPORT
EXPORT COMPANY
PARTY A'S FACTORY: XXXXX XXX TOY FACTORY (DONG PU ECONOMIC DEVELOPMENT
GENERAL COMPANY)
PARTY B: HONG KONG ZINDART ENTERPRISE LIMITED
Party A, Party A's Factory and Party B have been together in the business of
processing and producing toys for 15 years. During the cooperation, each party
abided by the principles of friendly and mutual benefits, co-operation has been
pleasant and at the same time, the parties have received satisfactory returns.
Now, due to the readjustment of the operational strategies of Party B, all
three parties have agreed to advance the termination date of the original
contract signed between two parties from the year 1999 to 31st December 1997.
This Agreement is expressly signed to be complied with by both parties.
I. Responsibility of Both Parties
1. Party B's Responsibility.
1. Since Zindart Limited is terminating the agreement early, it
agrees to pay Xxxxx Xxx Toy Factory a lump sum of RMB1,174,248 and
such payment shall be made within 15 days upon the signing of this
Agreement.
2. Zindart Limited will pay severance payments in accordance with the
relevant provisions stipulated in the PRC Labour Law to the staff
of Xxxxx Xxx who were originally seconded from Dong Pu Economic
Development General Company (27 people according to the original
list).
3. All equipment, water and electric facilities originally owned by
Xxxxx Xxx will be handed over to Xxxxx Xxx in accordance with the
facilities list (see attached).
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4. Zindart Limited will settle all expenses incurred by the end of
December, such as rent, taxes, water and electricity bills,
telephone bills, compensation for early termination of the
agreement, severance payments and staff salaries, etc.
2. The responsibilities of Party A and Party A's Factory.
1. Assist Zindart Limited in arranging for the early termination of
the agreement with all relevant departments, and the corresponding
administrative work for the change of factory with regards to the
facilities, materials, production equipment, office equipment,
living facilities, transportation originally owned by Zindart
2. Assist Zindart Limited in liaising with the relevant business
departments for clearing all related debtgs and obligations and
terminate all related business matters, such as taxes, water and
electricity, telecommunications, banking and leasing agreements.
3. Assist Zindart Limited in arranging the safety measures and fire
prevention work during the removal period.
II. The parties may consult each other for any unfinished matters under
this Agreement.
III. This Agreement takes effect immediately upon signing by the
representative of each party hereto.
IV. This Agreement has 6 counterparts, each party has 2 copies and all
copies are of equal legal effect.
Party A representative Party A's Factory Party B representative
representative (chop of (chop of Zindart Limited)
Dong Pu Economic
Development General
Company)
dated 1997
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