Service Provided :

l        To print out the coupons & inventory management

l        To handle the purchase order procedures 

l        To provide professional Lettershopping services

l        To provide professional Redemption services & redemption counter facilities

l        To provide Telemarketing services for appointment making

l        To provide Local delivery services

l        To provide inventory management reporting

Item to be redeemed :

*     To be confirmed

Location of Redemption Centre :

A.   Hong Kong Office      :     Suite 1604, 16/F., Eastern Harbor Centre,

                                   28 Hoi Chak St., Quarry Bay, Hongkong.

       Office hours          :      Mon - Fri : 10:00am - 9:00 pm 

                                   Sat      :  10:00am - 6:00 pm

                                   Sun     :  11:00am - 5:00 pm                    

B.    Central Office              :      Rm 1206 Shun Tak Centre, 2 Connaught Rd C.,                               Central, Hongkong.        

       Office hours          :     Mon - Fri ; 10:00am - 5:00pm  

C.   Kowloon Office    :      Rm 1001F Ho King Comm Ct, 2-16 Fa Yuen St.,

                                   Mongkok, Kowloon.

       Office hours          :      Mon - Sat : 9:00am - 7:00pm

Delivery Service Area :

Hong Kong Island, Kowloon Peninsular & New Territories

Service Period :

From 1^st April 1997 to 28^th February 1998

Service Charge :

1.                 Programme Set-up Fee                       HK$

n        Personalization coupon     - A4 size/4 x 9 size

        - Serial no. control

       - Reconciliation

n        Purchase Order Handling

n        Cash Requisition for Purchase Order

n        Order Requisition - Pick up & delivery coupon      

2.    Monthly Reporting Fee                            HK$ per month

       (Summary inventory report, Statement of Accounts, Call report)

3.                 Redemption Services Charge                            HK$  per order

4.                 Monthly Management Fee                          HK$  per month or

(Included one free 24 hours C.S. Hotline-183 3331)     HK$  /data record

    (Whichever is higher)

5.            Lettershopping                               HK$   per order

       (i)   - Laser Printing & Insertion covering letter - two fold

             - Insertion coupons or gift certificates

             - Sealing of envelope  

       (ii) - Laser Printing & Insertion covering letter - two fold

             - Insertion welcome brochure (size : 8 1/4” x 8 1/4”)

             - Sealing of envelope

5.                 Print Coupon                                     HK$  each

6.                 Warehouse Charges (Dedicated one cabinet for storage)       

       (i)   Stationery (letter + envelop)                   Free of charge

       (ii)  Gift certificates & coupons               HK$ /day

       (iii) gift items                                     HK$ /day

7.    a.) Delivery Service Charge (Coupons)           HK$   /order (Zone 1)

                                                        HK$   /order (Zone 2)

b.)     Delivery Service Charge (Gifts)                 HK$   /order (Zone 1)

    HK$/order (Zone 2)

       (Minimum 250 orders per day)

       (Zone 1 - Hongkong Island & Kowloon Peninsular)

       (Zone 2 - New Territories)                                   

7.    Telemarketing Services Charge                HK$   call   

       - Appointment making (Included three times contact per member at different    time slots)

(Each order will have two visits/attempts, there will be an appointment made prior to deliveries.  Should no one be available during the first attempt, a VISIT CARD will be left instructing the member to call our service hot-line FOR delivery arrangement.

For successful orders, a signed receipt with customer ID with delivery date and time will be provided to you for control purposes.)

For orders which are not able to fulfill after two attempts, will be chargeable as per the aforesaid rates and the orders will be returned to you for cleaning purpose and further action.  Any further action will consider as a new order.

Payment :

The program set and first month retainer charges are required to pay to “LAWSONS MARKETING SERVICES LTD” in advance in Hong Kong Dollars.  Retainer charges for the successive months are required to paid in the beginning of each month.  For the other charges are required to pay within 30 days of our invoice date.  Any late payment is subject to a late payment charges of 2% per month.

Force Majeure :

Neither party to this agreement shall be liable to the other for a delay in performing, or for a failure to perform any of its obligations hereunder (other than payment by Hongkong Telecom of moneys due LAWSONS under this agreement) provided that it is due to a so-called act of God, accident, fire, lightning, subsidence, flood, inclement weather, precipitation, war, civil disorder, strikes, lockout or trade disputes, delays in transport, communication line or microwave link failures, or for any other reason whatsoever beyond the control of either party (“an Event of Force Majeure”).  Should an Event of Force Majeure continue for a period of Sixty (60) days or more, then either party shall be entitled to terminate this agreement forthwith and the clauses of this agreement relating to the consequences of termination shall thereupon take effect.  

Lawsons Liabilities :

If there is any loss or damage of your products because of our negligence while under LAWSONS custody, LAWSONS will indemnify customers at their ex-factory costs, however, please note that no liability whatsoever is assumed for delay in delivery or for consequential damages of any kind, such as loss of income, loss of interest or loss of business opportunity, or any loss or damage arising from the inherent nature of your products.

Lien On Goods Fulfilled :

LAWSONS shall have a lien on any goods fulfilled for all fulfillment charges, custom duties, advances in payment or other charges of any kind arising out of transportation and warehousing thereunder and may refuse to surrender possession of goods until such charges are paid.

In the event of payment of amount due to LAWSONS, LAWSONS reserved the rights to dispose of any stocks held on lien to settle any outstanding amount due.  Any proceeds will first be used to settle all outstanding amount due to LAWSONS and any surplus will be return to TELECOM and LAWSONS will try to maximize the force sale proceeds, however she or her managers cannot be held responsible for any loss suffered by TELECOM resulting from such forced sale.

Validity :

This agreement will only be valid for this project and within the said period.

Termination :

Either party may terminate this Agreement by written notice to the other if the other party commits any breach of the terms of this Agreement and shall fail to rectify such breach within 3 months of receipt of notice from the non-breaching party, identifying the breach and requiring its remedy.

SHOULD BOTH PARTIES AGREE WITH THIS SERVICE AGREEMENT, KINDLY SIGN AT THE SPACE PROVIDED HEREINBELOW.

For and On Behalf of                              Approved and Accepted by

Lawsons Marketing Services Limited              Telecom

________________________               __________________________

Authorized Signature                                Authorized Signature

Novem Leung

P.P. Barry Chan

Prepared by Lawsons Marketing Services Ltd.                            A-HKT9702010

This Agreement contains four pages in total                       04/04/97