Party A: Shanghai m3&a Intl. Trading Co., Ltd.

Party B: Customer purchasing via the website www.mioespresso.cn

The two parties reach an agreement on Party B leases from Party A coffee equipments:

1. The coffee equipment involved in the FREE LEASE agreement is one (x1) QUADRA COFFEE MACHINE (Value: 2490元) and one (x1) CAPPUCCINO MAKER (Value: 390元)
2. Capsules are delivered to Party B within the validity of the contract and each delivery must be ≥ 200pcs. Party B can decide the capsules tastes at the time of each delivery.
3. Payment terms: Party B agrees to pay 100% of the amount at the delivery of capsules (Bank transfer in advance or Cash on Delivery).
4. Capsules are supplied with all their accessories (paper cups, sugar bags and stirrers).
5. Party A will service and maintain all the coffee equipments leased, to ensure all the coffee equipment are in good working condition during the contract period. However Party B will have to pay for all cost for coffee equipment breakdown due to human negligence resulting the damage, breakdown and lost, excluding normal wear & tear.
6. Shanghai Mio Espresso® technical department will provide standby service upon breakdown from 9:00 to 18:00 (MONDAY to FRIDAY)
7. Free Lease Agreement period:
   1. The term of this free lease of the agreement shall be for a period of 12 months, beginning on the date of the purchase
8. The Free Lease Agreement starts from the moment a start package of 1000 capsules has been purchased.
   1. The agreement will be automatically renewed upon purchase of another start package of capsules.
   2. In case there is no more purchase of capsules after the contract period,  the free lease agreement will be finalized, and Party B shall return the equipment to Party A.
9. The coffee equipments leased are solely property of Party A:
   1. Party B is not allowed to lease, loan, mortgage to any third party or performed other activities which may result in adversity to Party A.  
   2. All coffee equipments leased shall be returned to Party A upon termination of the Contract.
10. Cancellation clause:
    1. Except for issues specified in article 3 and 5 of the Contract, Party A or Party B may cancel this Contract before the expiration date with thirty (30) days advance written notice. During execution of the Contract, if one party has violated the interest of the other party, such party shall indemnify the other party.
    2. Should Party A finds that Party B has performed the before mentioned activities (see 9.a) which may result in adversity to Party A; Or Party B fails to comply with article 3 and 5 of the Contract, Party A has right to terminate this Contract and Party B should compensate for all the losses of Party A.
11. Additional services & promotional support from Party A during the contract period:
    1. Install all the coffee equipments
    2. Guarantee delivery of coffee within 48 hours of purchase notice.
    3. Guarantee coffee machine break down service within 48 hours of notice.
12. Party B warrants that it shall not mislead any third party in any way to make such third party believe that Party B is entitled to direct sub-license of Mio Espresso®  trademarks, logo and/or image to others and that it can make relevant transactions with Party A as a result. Should Party B violates such warrants, it shall compensate for all the losses of Party A.
13. All the disputes in connection with the execution of this Contract shall be settled friendly through negotiation. In case no settlement can be reached, the matter then shall be submitted to People's Court of Shanghai, Xuhui District
14. The Contract shall be executed with two copies, and come into validity upon signatures of the authorized representatives and being sealed with company chop of both parties. Each party holds one copy.
15. All the appendices are an integral part of the Contract, and the Contract contains six pages including Chinese and English, if there is any inconsistency between the Chinese version and the English version of this document, the English version prevails.