3.Subject Matter of the Contract

• The target matter of the Contract is the leasing service of containers, that is, based on its business needs, the Lessee is voluntary to lease the container equipment supplied by the Lessor, which shall be used for transportation or other purposes as agreed by the Parties, and the lease shall be started at the on-hire location and terminated at the off-hire location agreed by the Parties.

• Overview of containers
  • The containers to be leased by the Lessor to the Lessee are in line with the conditions described in this Article:
  • Name: containers of ISO international standard.
  • Manufacturer, brand, and manufacturing specifications: no limit.
  • Unit of measurement of containers: unit.
  • The type and additional services of a particular batch shall be agreed by the Parties in an individual contract.

• Quality of containers
• Unless otherwise agreed upon by the Parties, the quality standards for containers are as below:
  • Cargo Worthy Standard: the door is opened 270 degrees; wind and water tight; clean, dry, tasteless, and dust-free; intact four corner posts, six sides, and eight corner fittings; in compliance with ISO standards; fulfilling a variety of mechanical operations; applicable to multi-modal transport; applicable to loading of all types of goods (except special goods); with a CSC plate）.
  • Unless otherwise specified, the Lessor doesn't check the CSC validity period of each container when delivering the containers. If the Lessee uses the container as a means of transportation, the Lessee agrees that when taking delivery of the containers, the Lessee is responsible for inspecting and re-inspecting the containers in accordance with the provisions and requirements of the CSC, and bears all costs and expenses related thereto, including the Lessee's leased containers that are in use until the expiration of their respective CSC.
  • The quality standard of a particular batch shall be agreed by the Parties in an individual contract.

• Quantity of containers
• The quantity of containers hereunder shall be subject to the actual needs of the Parties, and finally settled based upon the actual quantity. In the meanwhile, the Parties make it clear that the Contract does not require or limit the total lease quantity of one Party within the validity of the Contract or the quantity of each month (or each settlement cycle).
• However, if the Parties enter into the Credit Sale Agreement or agree on the credit sale conditions herein, the credit sale conditions shall be subject to those prescribed in the Credit Sale Agreement or the Contract.