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Exhibit 10.2  

 
 

Trusteeship Administration Contract    
    

	Owner of Restaurant:	 	Shaanxi wenhao zaliang shifu Ltd
	

Administration Company:	
 	

Shaanxi New Taohuayuan Culture Tourism Co., Ltd

Subscription
Date: 15th January, 2004 

Trusteeship Administration Contract  

Items  

	Item 1. Definition	 	 
	

Item 2. Responsibilities of Administration Company	
 	

 
	 	
 2.1 Services of Administration Company	
 	

 
	 	
 2.2 Trade Names, Brand Name, Service Title and Service Mark	
 	

 
	 	
 2.3 Advertisement	
 	

 
	 	
 2.4 Assistance on hotel management	
 	

 
	 	
 2.5 Management	
 	

 
	

Item 3. Responsibilities of Hotel Owner	
 	

 
	 	
 3.1 Increase or replace furniture, equipment and facilities	
 	

 
	 	
 3.2 Maintenance of building structure—Modification and expansion	
 	

 
	 	
 3.3 Tax responsibility of Hotel owner	
 	

 
	

Item 4. Insurance	
 	

 
	

Item 5. Financial item	
 	

 
	 	
 5.1 Bank account	
 	

 
	 	
 5.2 Receivable basic managerial expense of Administration Company	
 	

 
	 	
 5.3 Management expense of encouragement	
 	

 
	

Item 6. Time limit of Contract	
 	

 
	

Item 7. Common time limit	
 	

 
	 	
 7.1 Ownership of Hotel estate	
 	

 
	 	
 7.2 Ending of responsibilities—irresistible affairs	
 	

 
	 	
 7.3 Ending of contract	
 	

 
	 	
 7.4 Inherit and Transfer	
 	

 
	 	
 7.5 Law application and solutions for dispute	
 	

 
	 	
 7.6 Relationship of two parties	
 	

 
	

Item 8. Others	
 	

 
	 	
 8.1 Integrated contract	
 	

 
	 	
 8.2 Announcement	
 	

 
	 	
 8.3 Registration and other procedures	
 	

 

The two parties of the Contract: 

	1.
	Shaanxi
wenhao zaliang shifu Ltd ("Owner of the Restaurant"), is a legal enterprise, which was set up pursuant to the law of People's Republic of China. The legal address is
No. 2, middle of south of 2nd round Road, Beilin district, Xi'an, Shaanxi, China. Shaanxi wenhao zaliang shifu Ltd owns four franchising restaurant located in south of
2nd round Road Xi'an, Taoyuan south road, Xi'an, Beijing, and Haerbin. The company characterizes the cuisine culture of Yellow River. The company business involves restaurant, casual
entertainment, tourism and agricultural cultivation.

	2.
	Shaanxi
New Taohuayuan Culture Tourism Co., Ltd ("Administration company"), was registered under Chinese Law. The legal address is No. 1, Dongfeng Road, Weiyang Tourism
development Area, Xi'an, Shaanxi Province, China. The company characterizes Yellow River and folk-custom culture and involves restaurants, hotels, and tourism service businesses. 

        In
order to improve the management and economic benefit of restaurants business of Shaanxi Wenhao zaliang shifu Ltd, and utilize the advantages on restaurants management of
Shaanxi New Taohuayuan Culture Tourism Co., Ltd, which includes the managerial HR, professional technician, the distribution of main material purchase and employee training. Two parties
negotiated sparingly, regarding the transaction of the owner of restaurant entrusting Administration company to manage the hotel, both parties make an agreement as follow: 

Item 1. Definition  

        Being affirmed by both sides, the words, which are used in the Contract and related or additive document, possess the following definition. 

        1.1    Hotel:    be defined as the position of the building, which includes furniture, facilities and business
equipment. The particular items are list on latter part. Hotel is also defined as the business operation there under the contract. 

        1.2    Construction:    be building and facilities which belong to the land estate naturally or designedly, and all
facilities equipped for the constructions. Such as heating system, air-condition system, water pipe facilities and electronic appliance, indoor and outdoor symbols, elevators, etc. 

        1.3    Furniture, Facilities and Equipment (F.F.E):    be defined as all furniture, facilities, equipment, office
installment, decorators (fixed or movable items including carpet and wall decoration), kitchen room, bar, laundry facilities, telephone facilities, bathroom facilities, material delivery equipment,
truck and other hotel equipment and materials (the fixed capital item that has one year usage above, and unit value over 800 RMB). 

        1.4    Operation equipment (O.E):    be defined as the small items in hotel operation. Such as silver ware, bed sheet,
tablecloth, crockery, small kitchen facilities and uniform. The items are easy-consuming items that have less than one-year usage, unit value less than 800 RMB. The specific
classification standard refers to united accounting system of the hotel. 

        1.5    Accounting year:    be defined that start from 1st January to
31st December, the first accounting year should start from the first day of business to 31st December of the same year. 

        1.6    Gross income:    is defined as the result of operation income subtracts business tax. Any direct or
non-direct income happened during hotel operation, including gross sales of suite, food and beverage sales, service sales, using income and leasing income by other hotels' operation. It
either includes the operation or leasing income of shopping mall, external investment of the owner, fixed assets income, deposit interest, compensating income, the tips on customer's receipt and the
balance in case of foreign currency account instead RMB. 

        1.7    Gross operation profit (GOP):    is explained as the margin of gross income and hotel operation expense during
an accounting year (or part of an accounting year). 

 

        1.8    Operation expense:    is depend on the united regulation, including the following items: 

        (A)  The
payable items or tax items that come from salaries, expenditures, other regular or temporal, and other money distributed to hotel operation employees, which include
welfare and food expense for any employees and general manager, other welfare of living, transportations, employees' food, etc. 

        (B)  The
cost of consuming food and beverage and commonly cost related to revenue. 

        (C)  Based
on local practice, the actual bad debt that confirmed by the directorate. 

        (D)  The
expense of employment of accountants and lawyers if required by hotel operation. 

        (E)  The
basic administrative expense for Administration Company as what item 5.1 appoints. 

        (F)  Expenditure
of every business facilities required and it's purchasing and replacing. 

        (G)  Expenditure
of advertisement, business expansion and public relationship. 

        (H)  The
quotient that hotel should be charged, being in the advertisement, business expansion expenditure provided by administration company as item 2.3.3 appointed. 

        (I)   The
expenditures of heating, water, electricity, coal gas, telephone and any other kind of public facilities, happened for hotel consuming. 

        (J)   The
commission, expense, expenditure and booking expense to sales agent and credit card Company. 

        (K)  The
repair, maintenance and replacement expense for managing normal hotel operation, except the expense of item 3.1 and 3.2 that belongs to the responsibilities
of the owner. 

        (L)  Operation
expense commonly caused by hotel or Administration Company. 

        1.9    Irresistible affairs:    the following constitutes irresistible affairs    

        (A)  War,
invade, rebel, revolution, insurrection and domestic war. 

        (B)  The
government measure, status and order made by government being a governor. 

        (C)  The
accident caused by earthquake or any natural power and other uncertain or irresistible reason. 

        (D)  Labor
dissension. 

        (E)  The
affairs that being under considerate control but seriously influence the ability of hotel operation. 

Item 2. The responsibilities of Administration Company  

        2.1    Service of Administration Company    

        Under
the period of validation, Administration Company should comply with the Law of People's Republic of China, and achieve all missions under the scope of hotel management and market
expansion representing owner of the hotel. Administration Company should endeavor to manage the hotel effectively and efficiently. 

        2.2    Trade Name, Brand Name, Service Title and Service Mark    

        Based
on procedure of Chinese law, the name of the hotel is "Wenhao zaliang shifu" 

2

 

        Within
the period of validation, the administration company allows the owner of hotel doing publication activities, related hotel business and the use of Trade Name, Brand Name, Service
Title and Service Mark of Taohuayuan. 

        2.3    Advertisement    

        2.3.1    Group advertisement, expansion and public relation    

        Administration
Company prepares every publication, advertisement, public relation and endeavor to promote the hotel by performance and activities. 

        2.3.2    The hotel of the Administration Company would recommend the hotel to customers of the hotel owner. Similarly, the hotel
should recommend the other hotels of Administration Company to customers.    

        2.3.3    Apportion of group advertisement and operation expansion    

        The
hotel shall be responsible for the same benefit together with Administration Company, and implement the advertisement and operation expansion activities mentioned in the section. 

        2.4    Assistance in hotel management    

        Administration
Company will assistant hotel on operation expansion in order to fulfill the operation expansion policy that Administration Company pushes. The place of expansion activity
should be proper market that local market and other administrative company consent 

        Administration
Company will make operational expansion plan annually, and the plan will be gone through by owner of the hotel. In addition, Administration Company will provide necessary
assistance and direction, especially in following aspects: 

	•
	To
confirm the business policy of the hotel occupancy

	•
	To
make goals as concerned of occupancy, revenue, and targeted customers, etc.

	•
	To
set price and issue the price of hotel operation (Restaurants, Bars and conference facilities, etc.)

	•
	To
ascertain special business condition

	•
	To
set up sales on credit

	•
	To
establish different operating method and procedures toward various customers.

	•
	To
analyze business performance and permanent controlling system 

        Administration
Company will make certain promotion and business expansion on hotel management, which includes: 

	•
	To
set up the promotion and business expansion policy of the hotel

	•
	To
prepare advertising document and booklet, according to the standard sample provided by Administration Company

	•
	To
distribute the documents to hotel of the Group, substitution office of Administration Company. 

        Administration
Company will send person to assist during business expansion activities in special district. 

        The
hotel needs to participate the business exhibit and exhibitions that Administration Company participates. The hotel bears direct participating expense. Administration Company needs
to make a budget and acquire the agreement of the owner before this plan. 

3

 

        2.5    Management    

        2.5.1    Daily operation management    

        Administration
Company will achieve relevant and necessary management service representing owner of the hotel, which including: 

        (A)  Common
hotel organization 

        (B)  Human
Resource management.    According to Chinese related law, Administration Company as the agent of the owner owns the right of decision on every employee
choosing, training, assigning, redeploying or dismissal. In terms of usual business method, Administration Company offers employee training chronically. Administration Company shall assign the general
manager, who takes fully charge of operation and management of the hotel. 

        (C)  According
to setting up salaries and other welfares of hotel employees, Administration Company is entitled to distribute service fee and regular extra subvention to
employees, representing the owner of hotel. 

        (D)  Setting
up all items, charges and prices, and revenues in any kind during supervision and control of hotel business, or any types of service charge and receipt, etc. Any
person without the permission from Administration Company, can not acquire the discount price or free accommodation and service, excepting the person mentioned in (B), which include the press or other
public news agent, or travel
agent and others, who are appointed by Administration Company in accordance with the common situation of the industry. 

        (E)  Set
down the place and shop position for business usage, ensuring relative shops operating their business without influencing the honored standard of hotel. 

        (F)  Make
purchasing policy of the following: commodities, supplies, and materials; Ensure the necessary stock-in-trade to maintain the normal
business operation; Choose the supplier to ensure the most favorable condition under negotiated supply agreement. 

        (G)  Constitute
the credit policy and set up credit organization for supplier and hotel customers, consulting with credit card issuer. 

        (H)  According
to the business that Administration Company considers as necessary or adequate, Administration Company can take any action on lawsuit and other law action. 

        (I)   Except
the owner of hotel has the responsibilities on maintenance, Administration Company should maintain well condition of the hotel pursuant to managerial standard,
including repairing and maintenance. Every relative expense will be taken as the operating expense of the hotel. If the expense exceed 200,000 RMB, it should be submitted to owner of the hotel and
apply for approval. If the property needs to change or amend in a great degree, and require retaining experts for consulting, based upon both sides agree, the owner of the hotel should undertake the
retaining expense. 

        (J)   Bargain
and sign agreement and preparing law document relating to relative normal business of the hotel. 

        (K)  Financial
and Accounting management, consulting the following items. 

        2.5.2    Accounting    

        Administration
Company should represent the benefits of owner pursuant to Chinese law, and should fully record the accounting transaction relating to hotel operation. Such accounting
record should follow the united rules. But when necessary, the owner or the representation is entitled to observe or audit entire account book. However, the above action shall possibly avoid
obstructing 

4

 

business
of the hotel. In any case, before the agreement expired, the full record shall provide to owner of the hotel. Accounting record should be written by Chinese, regulation of under Chinese
accountant system. 

        2.5.3    Perennial plan    

        (A)  At
least 30 days before the beginning of next fiscal year, Administration Company shall provide the perennial plan for next year to the owner, in which include
room occupancy and predicted income statement, operating expansion policy of hotel and the following budget: 

        Repair
and maintenance 

        The
cost of hotel renewing, rebuilding, reconstructing, adding and renewing for next fiscal year. 

        All
employees of every department of hotel, including salaries, wages, rewards and extra subvention. 

        When
owner of hotel receives perennial plans, the owner shall discuss over it and table a proposal until both sides fully agree. If the owner does not make a specific disagree letter on
perennial plan to Administration Company, it shall be seen as the owner has agreed. 

        (B)  When
Administration Company implement the responsibilities claimed in the agreement during every fiscal year, Administration Company must endeavor to follow the plan.
Except accidents or special condition, such as law revise or uncontrolled situation happens, Administration Company shall not over departure from the perennial plan. Any significant expense related to
perennial plan or the change of operating method happens, the owner of the hotel cannot refuse to approve. Administration Company does not make any assurance, guarantee and declare. All calculation
within the plan could only be reasonable prediction. 

        2.5.4    Financial Report    

        Within
the fiscal year, the management company shall present the owner one Income Statement signed by the General Manager (GM) or Chief Financial Officer (CFO) within 12 days
after each month, listing the operation income of the latest month and also a Balance Sheet as well. 

        By
the end of March of every year, the management company shall present the owner the Balance Sheet and Income Statement for the fiscal year ended at December 31. The Financial
Statement would not deem as being approved until the owner provides no opposed comments in written forms. 

        2.5.5    Group's Services and Benefit    

        The
owner shall pay the management company repair and maintenance fee for the estate, improvement fee in the business of operating assistance and management. These fees are recognized as
operating expenses. The above work includes not only those carried by the hotel employees but also those handled by the management company to provide technical assistance on structure, installation,
equipments, the change, amendment of the decoration, improvement and reconstruction. In addition, the expenses of providing services by the management professionals include salaries, allowance,
traveling expenses and accommodating expenses. 

5

 

Item 3. Responsibility of the Owner  

        3.1    Augment and replacement of the furniture, equipments and installations.    

        The
furniture, equipments and installations required augment and replacement shall be included in the fixed assets, and handled by the owner. They are not consumable or raw materials of
the fixed assets, and therefore they should not be listed in the operating expenses. 

        3.2    Structure Construction—Amendment and Improvement    

        Within
the time limit, hotel owner shall take measure or job that maintain the standard of hotel or satisfy effective law or regulation. The hotel manager shall undertake the relative
charges. Administration Company shall submit the job sheet to hotel owner for consideration and approval. The hotel owner should implement the job within the reasonable time. If hotel manager consider
it unnecessary, it shall be informed to Administration Company within reasonable time. Under this situation, both side shall discuss and negotiate to meet an agreement. The entire job shall possibly
not influence operation of the hotel. The schedule table and implement table shall submit to Administration Company for approval. 

        The
hotel owner also should carry out and pay for part of structure requirement damage once the occurrence the damage, as this hotel in repair finishing behind should have the standard
of un-damage or damage. The repair plan and schedule should submit to administration company for approval. If the hotel is all in an accident or the part of damage, and this has already in
the insurance itemed record to rule 7. As after affairs taking place the hotel owner of 90 days not yet to fact of that occurrence need to be set up or the structure repairs, the
management company contain power by oneself carry out that work, and keep connecting toward insurance company to take back the amount of money needed. 

        In
addition, Furthermore, in the contract term, if the hotel owner undertake other hotels for rebuilding or reconstructing, all of its should include the hotel, with in response to this
contract concerning item conducted by the management company and manage 

        3.3    The tax administration of the hotel owner    

        Within
this contract inside, the hotel owner will pay tax according to the PRC tax law and the relevant provision. 

        As
the hotel owner while specifying to expect inside the unpaid it the tax item that should be responsible for paying, the management company will have the power to give the hotel owner
notify for 30 days after is paid that amount of money in the name of the hotel owner by the hotel, that etc. is paid by the hotel of amount of money should from cope with to deduct to the bank
account of the hotel owner. 

Rule 4. Insurance  

        4.1    Insurance items    

        In
the term of this contract, the managing company should use the name of owner, to the insurance company to insure contiguously as follows, and to clear hotel owner that is insurant,
managing company is additional coinsure. 

        (A)  Property
Insurance that is according to the amount of money 100% of the examine report by accountant to insure (including basic insurance, thieves and burglars
insurance, glass broken insurance, and property revaluation insurance) 

        (B)  Machine
damage Insurance...that is according to the amount of money 100% of the examine report by accountant to insure(including computer insurance) 

6

 

        (C)  Public
responsibility Insurance...according to domestic law to insure. 

        (D)  the
profit or loss of property case to insure. 

        (E)  The
profits or loss of the machine damage insurance. 

        (F)  Labor
insurance...the employer is relevant to its employee of liability insurance. 

        (G)  Car
Insurance (Include the carriage insurance and third party insurance). 

        (H)  Other
industries usual practice in the hotel and should throw it and should protect the project. 

        Above
project insurance, should insure in the insurance company of Chinese people's insurance company or Chinese government approval, its insurance expenses is included in the business
expenditure. 

        4.2    At the 15 days before starting practice, managing the company should carry out the above insurance project
procedure, and submit to hotel industries the relevant data.    

        4.3    Within the scope of above insurance, the owner and managing company agree on all indemnity and should dun for toward
insurance company each other, gaining the insurance indemnity to is used for repair accident to lose, if the indemnity of insurance company do not enough to pay for loss, and the reason of loss do not
done by any other reasons, the owner will agree to pay the shortage money.    

Rule 5. Financial items  

        5.1    Bank account    

        When
the hotel owner demand, managing company must provide the hotel owner according to the rule to hold the bank account and the account situation immediately, due to this contract
expired, the all amount of moneys of the every relevant hotel owner, button up in addition to managing the amount of money that the company presses this contracts provision to deserve, must transfer
to the hotel owner. 

        Managing
company will instead of hotel owner to negotiate to make selection at both of parties for main bank account. 

        The
above-mentioned bank account is in the contract term of validity contracted by Hotel Company, check and other withdrawn document will by two administrative personnel with
confidential "hotel"(one among those persons are pointed by the owner) and to approve to sign the rear together and then cover chapter. 

        5.2    Managing company should accept the basic managing fee    

        Since
the effective contract, the hotel owner should pay the basic managing fee 8,500,000 RMB Yuan yearly. Managing fee should pay seasonal, and settle the account yearly. 

        5.3    Praise managing fee    

        Since
the effective contract, unless rule 5.2 establishing the basic managing fee, managing company can following the method to account the praise managing fee. When the revenue
of managing company completes the yearly managing plan, managing company can withdraw 15% that exceeds the part to make. The hotel owner pay after settle the account. 

7

 

Rule 6. Contract expiration  

        The term of validity of this contract will be become effective the word by the contract for 5 years. If managing company to reach to expect the result
within five years, after the hotel owner approval, can be continued by the managing company to conduct. 

Rule 7. General provisions  

        7.1    Hotel property right    

        The
hotel owner has full power in the hotel and other parts, or its lease business, and unless both of parties have already agree in this contract, it will not have industry mortgage,
and set the legal right or other burdens, and provide the evidence of the industry ownership fives to managing company. 

        In
addition,With this contract expiration, the hotel owner approval as follow: 

        (A)  Keep
it to own or lease to the hotel full power or basic rights of the industry form. 

        (B)  Don't
participate to the managing company normally legal conducts any stipulation action that the hotel has the influence. 

        (C)  Carry
on the law or other laws its necessity the action to protect above-mentioned etc. 

        (D)  Pays
and returns any with the hotel related rent, the special permission fee and/or the account payable, or the relative interest, and when or before acquit all due
mortgage and the burden pays all related principle and interest by stages. 

        (E)  Pays
all the real estate tax and the evaluation tax which can keep by hotel in management period. 

        If
the hotel owner can't pay this kind of rent, taxes or other burden, or above mortgage and the burden not been able to pay, all paid payment by hotel owner should deduct from hotel
owner's account. 

        7.2    The responsibility terminates—the force majored    

        If
because of the force majored situation occurred and makes both sides not to be able to carry out essential execution responsibility according to this provision of contract, regarding
this both sides may exempt its fault, generally has not respond to. 

        7.3    Ceasing of contract    

        (1)   If
any side breaks a contract and cannot carry out the responsibility of the this contract, and not to be able to carry out the responsibility after the other side send
the written request to attach registered letter of the receipt latter 30 days, (If the breach of contract cannot complete in 30 days, if the side breach the contract has to carry on make
up for this breach of contract, then may suitably lengthen the deadline.) the other side has its right, but won't affect other rights and compensation, sends out with written attaches the receipt
registered letter to terminate this contract, but does not have to inform extra or compensate. 

        If
any side of the contract doesn't stand to the exercises of right of use to the breach of contract, cannot be esteemed gives up the right stand to action if subsequence the other side
has any event about breach the contract. 

        The
following situation will be esteemed breach the contract: 

        (A)  The
hotel owner has not been able to execute according to this contract or the source of wealth responsibility assigned by other contracts negotiate by the management
company and the hotel owner. 

8

 

        (B)  The
management company can't execute the responsibility with good service which stipulate by the company, or can't execute, maintain, observe the contract. 

        (C)  If
occurred the following situation, any side also may attach the receipt with the registered letter notify in written to terminate this contract. 

        When
the hotel was broke seriously and wrecked but the hotel owner according to the 3.2nd provision decided does not carry on repair and re-build the hotel, all managements
come to an end the indemnity fund of loss of insurance should be assigned fairly according to all quarters benefit ratio by the hotel owner and the management company. 

        When
the hotel incapably reimburses the item of debt, break-up, the weal was detained by the court, liquidation, receive or the inventory calculates. 

        7.4    Inheritances and the transfer    

        If
no hotel owner's written agreement in anticipation (This agreement cannot be delay reasonably), the management company should has no right to transfer and avert to any third party the
responsibility under the contract 

        This
provision cannot prevent the hotel owner and the management company averts the responsibility under the contract to the subsidiary company or subordinate company, which the
bilateral group has the same benefit. 

        Before
approving by managing company, the hotel owner can't transfer or sell this contract to any third parties, and such allow shouldn't procrastinate unreasonably, while the
requirement of managing company, the hotel owner should submit a capital holder, partner, sole of holding company's name and address to the managing company. 

        The
hotel owner and managing company the hotel owner and the management company, which its assignee and accept of assignee can use the same rights of the contract. 

        7.5    The solve of appropriately law and dispute    

        (1)   The
solve of the establishment, effect, explain implement and dispute of this contract which are protected by PRC law. 

        (2)   Any
of carrying out originally the contract to take place of or have something to do with this contract of all dispute, the both parties should solve through the amity
consultation, if the consultation can't solve, should hand over the arbitrate in the local court verdict. 

        (3)   In
arbitrating process, in addition to both parties having the controversy to arbitrate under way of part, this contract should continue to implement. 

        7.6    Relationship    

        Hotel
owner authorizes Administration Company as its agent who is all-powerful represented by hotel owner to conduct according to this contract and take charge of hotel
administration and management. 

        Hotel
owner admits this contract is a management service contract. Except this contract has another regulation, hotel owner may not cancel this by itself. 

        This
contract doesn't mean that hotel owner and Administration Company have any joint venture or partner relationship. Administration Company doesn't own any debt that is because of
executing following hotel operation duty or hotel owner in its debt, duty and the other debt. 

        This
contract does not accredit Administration Company to affix any promissory note, letter of undertaking, loan contract or other debt file, or represent hotel owner or hotel to borrow
any money 

9

 

for
part of operating expenses. Especial assert and agree again that administration company has no power to acquire other private wealth by hotel's whole or part section or any account or hotel or
hotel management to be engagement, trust and others, etc. (Except the contract that is annotated admitted rent by this contract.) Both agree that attracting by this agreement administration company
will have full powers to take charge of and decision-making power in administration a hotel, management and execute task. Administration company will have duty for hotel owner as good and profession
attitude and loyal and assiduous to execute its duty, and will utmost fulfill this contract's duty. 

        In
the validity term of the contract, administration company agrees to hotel owner that formally accredits officer, accountant, agent and law appointed person that have right to come
into hotel anywhere in reasonable time to inspect and investigate. However mentioned action above should be as far as possible to avoid hampering hotel's management. 

The 8th sundries  

        8.1    Whole contract    

        This
contract includes understanding of contract stipulation, contract and every sort that both sides agree relating to hotel management. If one wants to amend this contract, it begins
effective that need by both sides' contract date is in the same day or after this by marking date and by both sides' signing file and be approved by examine and approve agency. 

        8.2    Notification    

        Dominium
notification which either sends to the other must send by an expert in person and be signed by the other or sent to the hotel owner and management company's address with
acknowledgment in registered form or to another address which is appointed by both according to this notification. 

        8.3    Register and other procedure    

        Hotel
owner should transact this contract or all afterward step for altering contract necessary ratify, register and execute in demand to ensure this contract can practice in effect
under applied law. Hotel owner will bear all procedure expense. 

        8.4    Appointed person specification    

        Administration
company appointed person specification listed as contract accessories form, and administration company can adjust to this specification according to practical management
situation, but is must before changing appointed person, and to serve a notice in writing to hotel company, and detailed mention changing cause and possibility from it that affects daily
administration in the hotel company, and administration corporate reply scheme and plan. If there is possible to cause significant affection, they should negotiate with Hotel Company that
corresponding adjust administrative fee proceed. 

10

 

(This
page is for document subscription) 

	Owner of hotel:	 	D Shaanxi wenhao zaliang shifu Ltd
	

Authorized representative:	
 	

Xu Rong (Signiture)
	

Administration Company:	
 	

Shaanxi New Taohuayuan Culture Tourism Co., Ltd

(Sealed)
	

Authorized representative:	
 	

Wang yanru (Signiture)
	

Date:	
 	

 
	

Place:	
 	

Xi'an, China

11

 
[Original
Chinese text as translated on previous page] 

12

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Exhibit 10.3  

 
 

AGREEMENT AND PLAN OF MIGRATORY MERGER    
    
    BY AND AMONG    
    
    SHAANXI NEW TAOHUAYUAN CULTURE TOURISM CO., LTD.    
    
    AND    
    
    NEW TAOHUAYUAN CULTURE TOURISM CO.,
 LTD.    
    

TABLE OF CONTENTS  

	

ARTICLE I—The Migratory Merger	
 	

1
	 	1.1	 	Merger	 	1
	

ARTICLE II—Terms of the Merger	
 	

1
	 	2.1	 	Terms of Merger; Effective Time	 	1
	 	2.2	 	Exemption from Registration	 	2
	

ARTICLE III—Representations and Warranties of New Tao	
 	

2
	 	3.1	 	Organization	 	2
	 	3.2	 	Capital	 	2
	 	3.3	 	Directors and Officers	 	2
	 	3.4	 	Authority	 	3
	

ARTICLE IV—Representations and Warranties of Shaanxi	
 	

3
	 	4.1	 	Organization	 	3
	 	4.2	 	Capital	 	3
	 	4.3	 	Directors and Officers	 	3
	 	4.4	 	Authority	 	3
	

ARTICLE V—Closing	
 	

3
	 	5.1	 	Closing	 	3
	

ARTICLE VI—Termination	
 	

3
	 	6.1	 	Termination by Mutual Consent	 	3
	

ARTICLE VII—Miscellaneous	
 	

4
	 	7.1	 	Captions and Headings	 	4
	 	7.2	 	No Oral Change	 	4
	 	7.3	 	Non-Waiver	 	4
	 	7.4	 	Time of Essence	 	4
	 	7.5	 	Entire Agreement	 	4
	 	7.6	 	Choice of Law	 	4
	 	7.7	 	Counterparts	 	4
	 	7.8	 	Notices	 	4
	 	7.9	 	Binding Effect	 	4
	 	7.10	 	Mutual Cooperation	 	4
	 	7.11	 	Announcements	 	4
	 	7.12	 	Exhibits	 	5
	 	7.13	 	Legal Counsel	 	5
	 	7.14	 	Facsimile Signatures	 	5

AGREEMENT AND PLAN OF MERGER  

        AGREEMENT AND PLAN OF MERGER ("Agreement") made this    day of November, 2004, by and between Shaanxi New Taohuayuan Culture
Tourism Co., Ltd., a People's Republic of China corporation ("Shaanxi"), and New Taohuayuan Culture Tourism
Co., Ltd., a Nevada corporation ("New Tao"). 

EXPLANATORY STATEMENT  

        A.    Shaanxi desires to acquire all of the issued and outstanding common stock of New Tao from New Tao's security holders in
exchange for newly issued unregistered shares of common stock of Shaanxi; and 

        B.    New Tao desires to redomicile its corporate existence from the People's Republic of China to Nevada, United States of
America. 

        C.    In furtherance of the foregoing, New Tao and Shaanxi are desirous of effecting a merger, all upon the terms and conditions
set forth herein. 

        NOW THEREFORE, in consideration of the foregoing Explanatory Statement, which is made a substantive part of this Agreement and the mutual
promises, covenants and representations contained herein, the parties agree as follows: 

ARTICLE I  

The Migratory Merger  

        1.1    Merger.    Subject to the terms and conditions of this Agreement, Shaanxi shall be merged with and into New Tao
in a transaction intended to qualify as a tax-free reorganization pursuant to Sections 368(a)(1)(A) and (a)(2)(E) of the Internal Revenue Code of 1986, as amended (the "Code"). 

ARTICLE II  

Terms of the Merger  

        2.1    Terms of Merger; Effective Time.    The terms of the merger (the "Merger") are as follows: 

        (a)   Shaanxi
shall be merged with and into New Tao in accordance with the statutory provisions of the Nevada Revised Statutes ("NRS"). 

        (b)   New
Tao shall be the surviving corporation (the "Surviving Corporation"), and the corporate identity, existence, purposes, powers, franchises, rights, and immunities of
New Tao shall continue unaffected and unimpaired by the Merger. The corporate identity, existence, purposes, powers, franchises, rights, and immunities of Shaanxi shall be merged into the Surviving
Corporation, and the Surviving Corporation shall be fully vested therewith. 

        (c)   Immediately
after the Closing (as hereinafter defined), the Merger shall be effected by filing with the Secretary of State of Nevada the Articles of Merger (the
"Articles of Merger") in accordance with the relevant provisions of the NRS. The time at which the Articles of Merger are filed with the Secretary of State of Nevada shall be the "Effective Time" of
the Merger. 

        (d)   Except
insofar as specifically otherwise provided by law, Shaanxi shall cease to exist at the Effective Time, whereupon the separate existence of New Tao and Shaanxi
shall become a single corporation. 

        (e)   The
Articles of Incorporation and Bylaws of New Tao shall be the certificate of incorporation and bylaws of the Surviving Corporation. 

        (f)    At
the Effective Time, without any action by the holder thereof, all 100,000,000 issued and outstanding shares of Shaanxi's common stock (collectively, "Shaanxi Common
Stock") shall be deemed cancelled and converted on a pro-rata basis, into the right to receive 17,027,328 shares 

 

of
common stock, $.001 par value, of New Tao (the "New Tao Common Stock") as of the Closing Date (the "Merger Consideration"). The Merger Consideration shall be prorated among the Shaanxi stockholders
in accordance with their fractional ownership of Shaanxi. 

        (g)   At
the Effective Time, New Tao shall issue certificates evidencing such number of shares of New Tao Common Stock issuable to holders of Shaanxi Common Stock in the
Merger pursuant to Section 2.1(f). 

        (h)   Each
option to purchase shares of New Tao Common Stock (collectively, the "New Tao Options") that is outstanding immediately prior to the Effective Time, without regard
to whether such option is then exercisable, shall, by virtue of the Merger and without any further action on the part of the holder thereof, be assumed by New Tao and converted into an option (a
"Substitute Option") to purchase that number of shares of New Tao Common Stock equal to the number of shares of Shaanxi Common Stock subject to such Shaanxi Option immediately prior to the Effective
Time in accordance with Schedule 2.1, at an exercise price per share of Shaanxi Common Stock equal to the exercise price per share of such New Tao Option immediately prior to the Effective
Time. The terms and conditions of each Substitute Option, including any acceleration of vesting and/or exercisability thereof, shall otherwise be the same as the related Shaanxi Option. 

        (i)    If
any certificate representing Shaanxi Common Stock shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming such
certificate to be lost, stolen or destroyed and, if required by New Tao, the posting by such person of a bond, in such reasonable amount as New Tao may direct, as indemnity against any claim that may
be made against it with respect to such certificate, New Tao will issue in exchange for such lost, stolen or destroyed certificate the Merger Consideration and any dividends or other distributions to
which the holders thereof are entitled pursuant to this Agreement. 

        2.2    Exemption from Registration.    The parties hereto intend that all Shaanxi common stock to be issued to the
stockholders of New Tao (collectively, the "New Tao Stockholders") shall be exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"), pursuant to
Section 4(2) and/or Rule 506 of the Act and the rules and regulations promulgated thereunder. 

ARTICLE III  

Representations and Warranties of New Tao  

        New Tao hereby represents and warrants to Shaanxi that: 

        3.1    Organization.    New Tao is a corporation duly organized, validly existing and in good standing under the laws
of Nevada, has all necessary corporate powers to own its properties and to carry on its business as now owned and operated by it, and is duly qualified to do business and is in good standing in each
of the states where required. 

        3.2    Capital.    The authorized capital stock of New Tao consists of 50,000,000 authorized shares of $.001 par value
common stock and 10,000,000 authorized shares of $.001 par value preferred stock. There are currently no shares of New Tao Common Stock outstanding and no shares of preferred stock outstanding. There
are no other outstanding subscriptions, options, rights, warrants, debentures, instruments, convertible securities or other agreements or commitments obligating New Tao to issue or to transfer from
treasury any additional shares of its capital stock of any class. 

        3.3    Directors and Officers.    The names and titles of the directors and officers of New Tao as of the date of this
Agreement are as follows: Chen Jingmin-Board Chairman, Cai Danmei-Chief Executive Officer and Board Vice Chairman, Liu Bo-Director and Secretary, Hu Yangxiong-Director, Zhao
Jianwen-Director and Wang Changzhu-Director. 

2

 

        3.4    Authority.    The Board of Directors and stockholders of New Tao have authorized the execution of this
Agreement and the consummation of the transactions contemplated herein, and New Tao has full power and authority to execute, deliver and perform this Agreement, and this Agreement is a legal, valid
and binding obligation of New Tao and is enforceable in accordance with its terms and conditions. 

ARTICLE IV  

Representations and Warranties of Shaanxi  

        Shaanxi represents and warrants to New Tao that: 

        4.1    Organization.    Shaanxi is a corporation duly organized, validly existing and in good standing under the laws
of the People's Republic of China. Shaanxi has all necessary corporate powers to carry on its business, and is duly qualified to do business and is in good standing in each jurisdiction as required. 

        4.2    Capital.    The authorized capital stock of Shaanxi consists of 100,000,000 shares of Shaanxi Common Stock of
which 100,000,000 shares of Shaanxi Common Stock are issued and outstanding and no shares of preferred stock are outstanding. All of Shaanxi's outstanding securities are duly and validly issued, fully
paid and nonassessable. There are (i) no shares of Shaanxi Common Stock held in treasury and (ii) no outstanding subscriptions, options, rights, warrants, debentures, instruments,
convertible securities or other agreements or commitments obligating Shaanxi to issue or to transfer from treasury any shares of its capital stock of any class except shares issuable under this
Agreement. 

        4.3    Directors and Officers.    The names and titles of the officers and directors of Shaanxi as of the date of this
Agreement are as follows: Chen Jingmin-Board Chairman, Cai Danmei-Chief Executive Officer and Board Vice Chairman, Liu Bo-Director and Secretary, Hu Yangxiong-Director, Zhao
Jianwen-Director and Wang Changzhu-Director. 

        4.4    Authority.    Shaanxi and the stockholders of Shaanxi have authorized the execution of this Agreement and the
transactions contemplated herein, Shaanxi has full power and authority to execute, deliver and perform this Agreement, and this Agreement is the legal, valid and binding obligation of Shaanxi and is
enforceable in accordance with its terms and conditions. 

ARTICLE V  

Closing  

        5.1    Closing.    The Closing of this Agreement shall be held at the offices of Shaanxi's law firm, the Law Office of
Gary A. Agron, 5445 DTC Parkway, Suite 520, Greenwood Village, Colorado 80111, at any mutually agreeable time on November    , 2004 (the "Closing Date"), unless extended by mutual
agreement. At the Closing: 

        (a)   New
Tao shall deliver to the Shaanxi Stockholders the shares of New Tao set forth in Section 2.1(f) above. 

        (b)   Shaanxi
shall deliver to New Tao such documents as are reasonably requested by New Tao's counsel for implementation of this Agreement and consummation of the transaction
contemplated hereby. 

ARTICLE VI  

Termination  

        6.1    Termination by Mutual Consent.    This Agreement may be terminated at any time prior to Closing by the mutual
consent of Shaanxi and New Tao. 

3

 
ARTICLE VII  

Miscellaneous  

        7.1    Captions and Headings.    The article and paragraph headings throughout this Agreement are for convenience and
reference only and shall not define, limit or add to the meaning of any provision of this Agreement. 

        7.2    No Oral Change.    This Agreement and any provision hereof may not be waived, changed, modified or discharged
orally, but only by an agreement in writing signed by the party against whom enforcement of any such waiver, change, modification or discharge is sought. 

        7.3    Non-Waiver.    The failure of any party to insist in any one or more cases upon the performance of
any of the provisions, covenants or conditions of this Agreement or to exercise any option herein contained shall not be construed as a waiver or relinquishment for the future of any such provisions,
covenants or conditions. No waiver by any party of one breach by another party shall be construed as a waiver with respect to any other subsequent breach. 

        7.4    Time of Essence.    Time is of the essence of this Agreement and of each and every provision hereof. 

        7.5    Entire Agreement.    This Agreement contains the entire Agreement and understanding between the parties hereto
and supersedes all prior agreements and understandings. 

        7.6    Choice of Law.    This Agreement and its application shall be governed by the laws of the state of Nevada. 

        7.7    Counterparts.    This Agreement may be executed simultaneously in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. 

        7.8    Notices.    All notices, requests, demands and other communications under this Agreement shall be in writing
and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after mailing if mailed to the party to whom
notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed as follows: 

	Shaanxi:	 	Shaanxi New Taohuayuan Culture Tourism Co., Ltd.

1# Dongfeng Road

Xi'an Weiyang Tourism Development District

Xi'an, China
	
New Tao:	
 	

New Taohuayuan Culture Tourism Co., Ltd.

1# Dongfeng Road

Xi'an Weiyang Tourism Development District

Xi'an, China

        7.9    Binding Effect.    This Agreement shall inure to and be binding upon the heirs, executors, personal
representatives, successors and assigns of each of the parties to this Agreement. 

        7.10    Mutual Cooperation.    The parties hereto shall cooperate with each other to achieve the purpose of this
Agreement and shall execute such other and further documents and take such other and further actions as may be necessary or convenient to effect the transaction described herein. 

        7.11    Announcements.    The parties will consult and cooperate with each other as to the timing and content of any
public announcements regarding this Agreement. 

4

 

        7.12    Exhibits.    As of the execution hereof, the parties have provided each other with the Exhibits described
herein. Any material changes to the Exhibits shall be immediately disclosed to the other party. 

        7.13    Legal Counsel.    Each of the parties has been represented by its own legal counsel. 

        7.14    Facsimile Signatures.    A facsimile signature shall be deemed an original signature for all purposes. 

        In
witness whereof, the parties have executed this Agreement on the date indicated above. 

	SHAANXI NEW TAOHUAYUAN

    CULTURE TOURISM CO., LTD.	 	NEW TAOHUAYUAN CULTURE

    TOURISM CO., LTD.
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	
 Cai Danmei, Chief Executive Officer	 	 	
 Cai Danmei, Chief Executive Officer

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AGREEMENT AND PLAN OF MIGRATORY MERGER BY AND AMONG SHAANXI NEW TAOHUAYUAN CULTURE TOURISM CO., LTD. AND NEW TAOHUAYUAN CULTURE TOURISM CO., LTD.

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