Document:

Exhibit 10.2

 

Procurement and Installation Contract
of On-board Snow-melting Agent Spreader with the Load of 10m3 for Arm Hooking Vehicle and Front-loading 3.5m Snow Sweeping Rolling
Brush of Environmental Sanitation Administration Bureau of Wendeng District, Weihai City

 

Party A: Environmental
Sanitation Administration Bureau of Wendeng District, Weihai City             Procurement
No.: WDGP20171321

 

Party B: Reed (Xinxiang)
Road Co., Ltd.                Signature Date:
December 11, 2017

 

Wendeng Sub-center of
Weihai Public Resources Trading Center accepted the commissioning of tender procurement from Party A and confirmed Party B as the
supplier for the Procurement and Installation Contract of On-board Snow-melting Agent Spreader with the Load of 10m3 for Arm Hooking
Vehicle and Front-loading 3.5m Snow Sweeping Rolling Brush of Environmental Sanitation Administration Bureau of Wendeng District,
Weihai City.

 

In accordance with regulations
in the Procurement Law of the People’s Republic of China, Contract Law of the People’s Republic
of China and other relevant laws and rules, both parties agree to sign this contract with below terms and conditions to
regulate the rights, obligations and responsibilities of the parties.

 

Article I: Contract
Price

 

Total Contract Amount:
400000 Yuan

 

RMB In Capital: RMB
Four Hundred Thousand Yuan in Total.

 

Note: Refer to the contract
list attached for detailed contents of the project. Contract price shall include all expenses for the supply, installation, commissioning,
training, after-sales services and so forth according to the technical requirements and national standards on the basis of current
site conditions. All risks, responsibilities and other uncertain factors that are included in the policy documents are all included
in the contract price.

 

Article II: Quality
Standard and Requirements of Technical Specification

 

Refer to the requirements
for technical specification in the appendix for contract list.

 

Article III: Construction
Period and Supply Place

 

Complete the supply,
installation and commissioning of goods within 20 days after the signature of this contract. The supply address is a place designated
by Party A.

 

Article IV: Transportation
Method

 

Party B has the right
to select the transportation method of the equipment.

 

     

     

    

 

Article V: Packing
Requirements

 

All equipment provided
by Party B should be packed with standard protection measures to ensure they are suitable for long-distance transportation and
have the damp-proof, quake-proof, rust prevention and anti-rough loading performance and ensure the cargo would arrive at the site
under sound status. Party B shall bear the damage and loss of equipment caused by poor packaging.

 

Article VI: Inspection
and Acceptance Method

 

One-month trial should
be arranged after the completion of the supply, installation and commissioning of goods. Party A and Wendeng Sub-center of Weihai
Public Resources Trading Center shall arrange inspection (with the assistance from relevant experts depending on actual situations)
and issue inspection report for procurement equipment of the local government of Wendeng District, Weihai City. Party B shall send
the inspection report to Weihai Wendeng District Government Procurement Supervision and Management Office, Wendeng Sub-center of
Weihai Public Resources Trading Center and corresponding business divisions of Weihai Wendeng District Finance Bureau.

 

After the acceptance,
Party B shall send the invoice to Party A in time, and Party A shall send photocopies of invoice to the corresponding business
division of finance bureau within three working days after the confirmation for the authenticity of the invoice.

 

In case the equipment
needs to be inspected or need to engage a professional agency for the inspection, Party B shall be responsible for the inspection
expenses.

 

If the quality, specification
or technical parameters of the equipment is not consistent with corresponding requirements in this contract, or the equipment is
proved to have any defect during the warranty period, including potential defects or the use of any nonconforming materials, Party
A shall have the right to reject the goods and claim damage against Party B.

 

Article VII: Settlement
Method

 

Party B shall go through
payment formalities with the procurement inspection report of the local government of Wendeng District, Weihai City. Specific Settlement
Method: A one-month trial should be arranged upon the completion of the supply. 90% of the total price shall be made after the
inspection and acceptance, and the balance should be paid off after the maturity of the warranty period if there is no quality
problem.

 

Article VIII. Performance
Guarantee Deposit

 

Upon execution of this
contract, Party B shall submit the performance guarantee deposit at the amount of 20000 Yuan to Wendeng Sub-center of Weihai Public
Resources Trading Center. The performance guarantee deposit would be returned to Party B without interest after Party B has completed
the supply, installation and commissioning of the equipment and the inspection is completed successfully. The performance guarantee
deposit would not be returned if Party B fails to fulfill or terminates this contract without consent from Party A or the contract
contents could not be completed due to quality issues of equipment provided by Party B. In case of any breach by Party B, Party
A would deduct 30% to 100% from the performance guarantee deposit according to the actual situations.

 

     

     

    

 

Article IX: Responsibilities
and Obligations of Party A

 

1. Party A shall provide
information and materials in connection with the project to Party B;

 

2. In case of failure
in completion on time due to reasons of Party A, Party A shall extend the construction period;

 

3. Other responsibilities
that Party A must bear shall be implemented in accordance with relevant regulations.

 

Article X: Responsibilities
and Obligations of Party B

 

1. Party B shall strictly
supply and install equipment according to various technical indicators and requirements of Party A.

 

2. Party B shall arrange
training for relevant personnel of Party A in time. The target of the training is to ensure that trainees could complete the operation
of equipment independently and proficiently.

 

3. Party B shall provide
all special tools required for the installation, commissioning and repair of equipment at the site. Party B shall provide detailed
operation and maintenance manuals.

 

4. In case Party B fails
to take any remedial measures within 7 days upon the receiving of any repair or replacement notice from Party A, Party A would
be entitled to take necessary remedial measures. However, risks and expenses arising from such remedial measures should be undertaken
by Party B. Other rights granted by this contract to Party A should not be affected by such remedial measures.

 

5. Party B shall guarantee
that Party A would not suffer any charges involving infringement claim of intellectual property rights, patent rights, trademark
rights and design rights made by any third parties due to the use of the project or any part of the project. In case of any alleged
infringement claim made by third party, Party B shall negotiate with such third party and assume all possible expenses incurred.

 

6. Together with the
delivered goods, Party B shall provide Party A with the technical materials in Chinese of the products, like catalog index, drawings,
operation manual, user guide, maintenance guide or service manual.

 

7. Party B guarantees
that all equipment provided are brand new and unused and conform to requirements in the procurement document about quality, specification
and performance. Party B guarantees that the equipment provided could completely conform to the performance required in the technical
specifications in the service life under correct installation, normal operation and proper maintenance. During the warranty period
of the equipment, Party B shall be liable for all insufficiencies or malfunction of equipment caused by defects of design, technologies
or materials.

 

     

     

    

 

Article XI: Claim

 

1. In case of any quality
problem during the inspection period and warranty period specified in this contract, Party A may claim damage against Party B through
any one or multiple methods shown below:

 

(1) If Party A return
the goods, Party B shall refund the corresponding payment for goods to Party A and undertake all losses and expenses arising from
such quality problem, including interest, bank charge, transportation, insurance premium, inspection fee, warehousing expenses,
loading &unloading expenses and other expenses required for protect the returned equipment.

 

(2) If Party A requires
Party B to replace or repair the parts with defects or damages with new components or equipment meeting the specification, quality
and performance requirements, Party B shall be liable for all expenses and risk of such replacement or repair, and all direct expenses
suffered by Party A. Meanwhile, Party B shall extend the warranty period for the replaced or repaired components according to terms
and conditions of this contract.

 

2. Party B’s failure
to respond within 7 days after receiving the claim notice from Party A shall be deemed as Party B’s acceptance of such claim.
In the event that Party B fails to solve the claimed issue with any method specified in this contract within 7 days after receiving
the claim notice or a longer time agreed by Party A, Party A would be entitled to deduct the claim amount from the amount payables
to Party B or performance guarantee deposit without any conditions. If such amount is insufficient to cover the amount in such
claim, Party A has the right to require Party B to pay the balance.

 

XII. Termination
Due to Breach of Contract

 

Upon the occurrence
of any of below breaching behaviors, Party A has the right to send written notice to Party B to terminate this contract partially
or wholly, and claim loss compensation against Party B:

 

1. Party B fails to
provide products and services wholly or partially within the period specified in this contract or a longer period agreed by Party
A; products provided have major quality defects; appearance, specification, model and so forth of the products are nonconforming
to regulations in this contract; packages used are materially difference with those regulated in this contract.

 

2. Party B fails to
perform any other obligations under this contract.

 

Article XIII: Miscellaneous

 

1. Both parties shall
keep business secrets of the other party that become known during the performance process of this contract in confidence.

 

2. Party B shall arrange
the supply and installation strictly according to requirements of this contract. No unauthorized change is permitted. Any necessary
changes could only be implemented with the consent of Party A, Finance Bureau of the District and Wendeng Sub-center of Weihai
Public Resources Trading Center.

 

3. In case Party B fails
to deliver goods or provide services within the time specified in this contract, unless otherwise caused by force majeure events
(war, serious flood, fire accidents, typhoon, earthquake and other force majeure events), Party B shall pay liquidated damage to
Party A. The liabilities for breach of contract would be calculated at 2000 Yuan per day.

 

     

     

    

 

4.The free warranty
period is two years. Onsite maintenance services in the warranty period are free of charge. If the equipment malfunctions, Party
B shall arrive at the site within four hours and complete the repair within eight hours. In the event that Party B fails to complete
repair within five days in the warranty period, Party B shall provide substituted equipment for free or replace the equipment with
a new one. The performance of substituted equipment or new equipment for replacement should be no less than the performance indicators
of the original equipment. Performance indicators of substituted equipment or replaced new equipment free of charge in the warranty
period should be no lower than those of the originally purchased equipment. In the event that Party B does not have the capacity
to repair or replace any equipment with fault, Party A could engage any third party to repair or replace the equipment. All expenses
arising from such repair or replacement should be undertaken by Party B. In such cases, Party A has the right to deduct such expenses
from the amount payable to Party B directly.

 

5. Without the prior
written consent of Party A, Party B shall not transfer obligations under this contract wholly or partially to any third parties.

 

Article XIV: Dispute
Resolutions

 

Any disputes arising
from the performance of this contract shall be settled by both parties through friendly negotiation. In case negotiation fails,
either party could take legal actions in Weihai Wendeng District People’s Court for judgment.

 

Article XV.
This contract shall become effective upon the signature of both parties. Any unmentioned affairs should be settled according to
the Procurement Law of the People’s Republic of China and The Contract Law of the People’s Republic
of China.

 

Appendix: Contract List
and Technical Parameters.

 

This contract shall
be made in seven copies: Party A shall keep two copies, Party B shall keep one copy, the Finance Bureau shall keep two copies,
and Wendeng Sub-center of Weihai Public Resources Trading Center shall keep two copies.

 

Party A (Seal): [Government
seal affixed herein]

Signature of Authorized
Representative: /s/ Wang Qingbo

Telephone:

  

     

     

    

 

Party B (Seal): [Corporate
seal affixed herein]

Legal Representative
(or Authorized Representative): /s/ Yang Yang

Telephone: 13837356068

 

Centralized Purchasing
Agency (Seal): [Seal affixed herein]

Signature of Authorized
Representative: /s/ Yu Dayong

Telephone:

 

     

     

    

 

Spare Part and Dedicated Tool List for EAGER
Series Spreader

 

	No.	 	Name	 	Specification and Model	 	Quantity	 	
        Place of 

        Origin
	 	Brand
	1.	 	Twist switch (two-gear self-locking)	 	T901AW	 	2.	 	Taiwan	 	Yiqi
	2.	 	Twist switch (three-gear self-reset)	 	T901MW	 	1	 	Taiwan	 	Yiqi
	3.	 	Twist switch (three-gear six-foot self-reset)	 	T902MW	 	1	 	Taiwan	 	Yiqi
	4.	 	Black waterproof cap	 	T900	 	4	 	Henan	 	REED
	5.	 	Protective fuse/fuse protector	 	RT28-32 2A ¢ 10*38	 	1	 	Zhejiang	 	Zhengtai
	6.	 	Black button switch	 	NP2-BA21	 	1	 	Zhejiang	 	Zhengtai
	7.	 	Indicator lamp	 	AD16-16C DC24V	 	1	 	Zhejiang	 	Zhengtai
	8.	 	One-channel Safety Plate	 	60A	 	1	 	Henan	 	REED
	9.	 	Combination pad	 	Φ14, 18, 22, 27, 32	 	3 pcs each	 	Henan	 	REED
	10.	 	O-ring	 	Φ14, 18*2.4mm	 	5 pcs each	 	Henan	 	REED
	11.	 	Adjustable Wrench	 	350mm	 	1	 	Shanghai	 	Tianye
	12.	 	Adjustable Wrench	 	150mm	 	1	 	Shanghai	 	Tianye
	13.	 	Pincer pliers	 	8-inch	 	1	 	Hunan	 	Shungong
	14.	 	Open-end wrench	 	Ten-set kit	 	1	 	Shanghai	 	Tianye
	15.	 	Slotted screwdriver	 	JK3-75mm	 	1	 	Zhejiang	 	Deli
	16.	 	Slotted screwdriver	 	150mm	 	1	 	Zhejiang	 	Deli
	17.	 	Cross screwdriver	 	150mm	 	1	 	Zhejiang	 	Deli
	18.	 	Allen wrench	 	One complete set	 	1	 	Zhejiang	 	Deli
	19.	 	Oil funnel	 	HC-D15	 	1	 	Henan	 	REED
	20.	 	White line gloves	 	/	 	2.	 	Henan	 	REED
	21.	 	Grease gun	 	SL-4515B	 	1	 	Henan	 	REED
	22.	 	Cotter pin	 	4× 5	 	2.	 	Henan	 	REED

 

     

     

    

 

Spare Part and Dedicated Tool List for EAGER
Series Snow Sweeping Rolling Brush

 

	No.	 	Name	 	Specification and Model	 	Quantity	 	
        Place of 

        Origin
	 	Brand
	1.	 	Twist switch (two gears self-locking)	 	T901AW	 	1	 	Taiwan	 	Yiqi
	2.	 	Twist switch (two gears self-locking 4P)	 	T902AW	 	1	 	Taiwan	 	Yiqi
	3.	 	Diode	 	IN5408	 	3	 	Zhejiang	 	Zhengtai
	4.	 	Protective tube	 	10A	 	1	 	Henan	 	REED
	5.	 	Combination pad	 	Φ14	 	3	 	Henan	 	REED
	6.	 	Combination pad	 	Φ18	 	3	 	Henan	 	REED
	7.	 	Combination pad	 	Φ22	 	3	 	Henan	 	REED
	8.	 	Combination pad	 	Φ27	 	3	 	Henan	 	REED
	9.	 	Combination pad	 	Φ32	 	3	 	Henan	 	REED
	10.	 	O-ring	 	Φ14,	 	5	 	Henan	 	REED
	11.	 	O-ring	 	Ø18*2.4mm	 	5	 	Henan	 	REED
	12.	 	Adjustable Wrench	 	150mm	 	1	 	Shanghai	 	Tianye
	13.	 	Pincer pliers	 	8-inch	 	1	 	Hunan	 	Shungong
	14.	 	Open-end wrench	 	Ten-set kit	 	1	 	Shanghai	 	Tianye
	15.	 	Slotted screwdriver	 	JK3-75mm	 	1	 	Zhejiang	 	Deli
	16.	 	Slotted screwdriver	 	150mm	 	1	 	Zhejiang	 	Deli
	17.	 	Cross screwdriver	 	150mm	 	1	 	Zhejiang	 	Deli
	18.	 	Allen wrench	 	One complete set	 	1	 	Zhejiang	 	Deli
	19.	 	White line gloves	 	/	 	2.	 	Henan	 	REED
	20.	 	Grease gun	 	SL-4515B	 	1	 	Henan	 	REED

 

     

     

    

 

Tender Parameters and Technical Deviation
Table

 

	No.	
        Product Parameters in Procurement 

        Document
	 	
        Actual Product Parameters in Bid 

        Document
	 	Deviation Description
	1	Storage bin volume: ≥10m3; outline dimensions: ≥7200×2080×1750; plate thickness around hopper ≥4mm; base plate thickness ≥5mm; superior corrosion-resistant plate (provide wood quality certificate)	 	
        Storage bin volume: ≥10m3,
outline dimensions: 7200×2080×1750

        Thickness of the plate around the hopper
        is 4mm, the thickness of the base plate is 5mm, and it used superior corrosion-resistant plate (plate quality certificate is attached)

        2
        Advanced fusion welding technology
	 	
        Positive deviation

        1
        Advanced fusion welding technology

        High quality welding seams, small deformation
        (small welding stress) and controllable welding height. The height of welding seam on the back is no more than 1mm, which would
        effectively reduce the usage of various painting materials in the subsequent painting process and achieve the objective of environmentally
        friendly.

	 	 	 	 	 	 
	2.	Spread width: ≥2-22m (stepless adjustable)	 	
        Spread width: 2-22m (infinitely adjustable)

        1
        Adopt intelligent control system
	 	
        Positive deviation

        1
        Adopt intelligent control system

        Has strong interference resistance performance,
        accuracy control performance, and convenient operation (operators could complete all operations in the driver cabin. Compared with
        the previous manual spreading and current spreading control system, the product has features like better work conditions, low labor
        intensity, high efficiency and high snow removing efficiency.

	 	 	 	 	 	 
	3	Spreading amount: ≥5-320g/m2	 	
        Spreading amount: 5-320g/m2

        1
        Material discharge quantity could be adjusted automatically according to the driving speed of the vehicle
	 	
        Positive deviation

        1
        Material discharge quantity could be adjusted automatically according to the driving speed of the vehicle

        The operation effect is further improved,
        and the operation is simpler

	 	 	 	 	 	 
	4	Maximum spreading speed: ≥50km/h	 	Maximum spreading speed: ≥50km/h	 	No deviation
	 	 	 	 	 	 
	5	Minimum operating temperature: ≤-40°	 	
        Minimum operating temperature: -40°

        1
        Heavy load connector is adopted for the electrical control to achieve high-integration connection
	 	
        Positive deviation

        1
        Heavy load connector is adopted for the electrical control to achieve high-integration connection

        High protection grade (IP65 and IP68) provided
        by heavy-load connector has incomparable advantages for equipment connection system under severe environment. It could still provide
        effective protection under severe applications with dust, rain, cold, ice and snow and so forth.

	 	 	 	 	 	 

 

     

     

    

 

	6	Spreading disc diameter ≥ 450mm; thickness of stainless-steel material ≥ 2mm; cover other components with tarpaulin that is free for opening and closing.	 	
        The spreading disc has a diameter of 450mm
        and the thickness of stainless-steel material is 2mm. Cover other components with tarpaulin that is free for opening and closing.

        1
        Movable filter mesh is installed on the upper position of the cabinet body
	 	
        Positive deviation

        1
        Movable filter mesh is installed on the upper position of the cabinet body

        It could prevent large particles and sundries
        from entering the equipment to guarantee the safety of the equipment

	 	 	 	 	 	 
	7	Force taking method of spreader: use the hydraulic device of the arm hooking vehicle to drive the operation	 	
        Force taking method of spreader: use the
        hydraulic device of the arm hooking vehicle to drive the operation

        1
        Use CEJN quick-connector for the hydraulic connection
	 	
        Positive deviation

        1
        Use CEJN quick-connector for the hydraulic connection

        The auto-focus unit of the rapid-connect
        solution could rapidly and safely assemble with the hydraulic hose without the necessity of any tools. It has not only integrated
        with compact design, but also reinforced the rotation ring with rapid-connection, which has met the rotation application under
        saturated work pressure.

	 	 	 	 	 	 
	8	The spreader has been equipped with a 12-hear spreading regulator, which could control the spreading quantity and the spreading range	 	
        The spreader has been equipped with a 12-hear
        spreading regulator, which could control the spreading quantity and the spreading range

        1
        The spreader has a vibration-resistant rubber pad
	 	
        Positive deviation

        1
        The spreader has a vibration-resistant rubber pad

        High work reliability and improved service
        life

	 	 	 	 	 	 
	9	Inverted V device is installed on the upper position of the conveyor chain, which could prevent backward spillage of materials. The spreader has a clearance function, which could remove the remaining snow melting agent at the position of the inverted V device to empty all residual materials in the silo	 	
        Inverted V device is installed on the upper
        position of the conveyor chain, which could prevent backward spillage of materials. The spreader has a clearance function, which
        could remove the remaining snow melting agent at the position of the inverted V device to empty all residual materials in the silo

        1
        A baffle cone is installed on the upper position of the conveyor belt
	 	
        Positive deviation

        1
        A baffle cone is installed on the upper position of the conveyor belt

        Strengthen the strength of the pedestal,
        reduce the load of the conveyor belt, and improve the service life of the whole machine

	 	 	 	 	 	 
	10	Anti-corrosion crawler-type chains used for conveying materials like snow-melting agent, width≥560mm	 	
        Anti-corrosion crawler-type chains used
        for conveying materials like snow-melting agent, width≥560mm

        1
        Has conveyor chain sweeping devices to guarantee the self-cleaning capacity
	 	
        Positive deviation

        1
        Has conveyor chain sweeping devices to guarantee the self-cleaning capacity

        Avoid manual cleaning and reduce maintenance
        costs.

	 	 	 	 	 	 
	11	Upper position of the hopper can be split to suit different operation requirements. The spreader can be folded to facilitate the emptying of the silo	 	
        Upper position of the hopper can be split
        to suit different operation requirements. The spreader can be folded to facilitate the emptying of the silo

        1
        Vibration motors are installed on both side of the silo
	 	
        Positive deviation

        1
        Vibration motors are installed on both side of the silo

        The design has thoroughly resolved the
        problem of deposited materials within the material silo

	 	 	 	 	 	 
	12	The spreading system adopts hydraulic dry disc spreader and has the function of symmetrical spreading and asymmetrical spreading (multi-spreading from one side or uniform spreading)	 	The spreading system adopts hydraulic dry disc spreader and has the function of symmetrical spreading and asymmetrical spreading (multi-spreading from one side or uniform spreading)	 	No deviation

 

     

     

    

 

	13	Warning system: spreading operation warning system is arranged at the rear position of the spreader	 	
        Warning system: spreading operation warning
        system is arranged at the rear position of the spreader

        1
        Installed with a lighting lamp
	 	
        Positive deviation

        1
        Installed with a lighting lamp

        Guarantee safety of operation under night

	 	 	 	 	 	 
	14	Hooks are arranged at each corner of the spreader to facilitate the handling of the spreader	 	Hooks are arranged at each corner of the spreader to facilitate the handling of the spreader	 	No deviation
	 	 	 	 	 	 
	15	Arm hooking load is adopted. Arming hooking vehicle is used for the hoisting operation for the product, without any necessity of pother hoisting tools. It is convenient for hoisting operation, which could work together with the current arm hooking vehicle of Wendeng District Environmental Health Management Division.	 	Arm hooking load is adopted. Arming hooking vehicle is used for the hoisting operation for the product, without any necessity of pother hoisting tools. It is convenient for hoisting operation, which could work together with the current arm hooking vehicle of Wendeng District Environmental Health Management Division.	 	No deviation
	 	 	 	 	 	 
	16	The spreader is in saffron yellow color	 	
        The spreader is in saffron yellow color

        1
        Advanced spraying technology
	 	
        Positive deviation

        1
        Advanced spraying technology

        The paint should be flat and free from
        exposed substrate, pinhole and shrinkage hole; the film thickness is ≥30μm; cathode electrophoresis corrosion resistant process
        applied on the whole surface

	 	 	 	 	 	 
	17	Rolling brush width ≥ 3500mm	 	Rolling brush width ≥ 3500mm	 	No deviation
	 	 	 	 	 	 
	18	Rolling brush diameter ≥800mm	 	Rolling brush diameter ≥800mm	 	No deviation
	 	 	 	 	 	 
	19	Rotation speed of the rolling brush ≥250 rounds/min	 	
        Rotation speed of the rolling brush ≥250
        rounds/min

        1
        Select Eton gerotor motor
	 	
        No deviation

        1
        Select gerotor motor

        1. The end surface is equipped with a flow
        cycloidal hydraulic motor.

        2. Advanced column-type stator and rotor
        parameters design, low starting pressure, high efficiency, stable operation at low speed.

        3. Advanced shaft seal design, high north
        pressure bearing capacity. The advanced and reliable linkage shaft design gives the motor with a long service life.

        4. Advanced flow distribution mechanism
        design, which has features like high flow distribution accuracy and automatic wear compensation.

        5. The motors can be used in series and
        parallel, and should be connected to the external drain when used in series.

        6. Adopt tapered roller bearing support
        design and has a large radial load capacity to ensure that the motor can directly drive the working mechanism.

	 	 	 	 	 	 
	20	The left and right swinging angle of the rolling brush is ≥ 30 °	 	The left and right swinging angle of the rolling brush is ≥ 30 °	 	No deviation

 

     

     

    

 

	21	Flow of the rolling brush system is ≥150L/min	 	Flow of the rolling brush system is ≥150L/min	 	
        Positive deviation

        1
        The flow volume under non-continuous working status could reach 225L/min

        Higher safety and stability to guarantee
        the sound operation status

	 	 	 	 	 	 
	22	The brush bristles are arranged in a single piece in disc shape, and each piece of bristles is made of polypropylene and elastic steel wire.	 	
        The brush bristles are arranged in a single
        piece in disc shape, and each piece of bristles is made of polypropylene and elastic steel wire.

        1
        Adopt keystone brush seedling imported from the United States
	 	
        Positive deviation

        1
        Adopt keystone brush seedling imported from the United States

        Safe and high durable, and long service
        life

	 	 	 	 	 	 
	23	The rolling brush is processed with powder coating, which has strong corrosion resistant performance	 	The rolling brush is processed with powder coating, which has strong corrosion resistant performance	 	No deviation
	 	 	 	 	 	 
	24	The rolling brush has automatic adjustment capacity for mandatory lower pressure and ground pressure, and adjustment could be made for the contact between the brush hair and ground. The snow brush could automatically accommodate with the changing angle of the cross slope of the road pavement, and help to maintain the complete matching with the ground and best stress angle in snow sweeping. In case of uneven road surface, the equipment could automatically simulate the shape, and avoid the barrier upon encountering any barrier.	 	The rolling brush has automatic adjustment capacity for mandatory lower pressure and ground pressure, and adjustment could be made for the contact between the brush hair and ground. The snow brush could automatically accommodate with the changing angle of the cross slope of the road pavement, and help to maintain the complete matching with the ground and best stress angle in snow sweeping. In case of uneven road surface, the equipment could automatically simulate the shape, and avoid the barrier upon encountering any barrier.	 	No deviation
	 	 	 	 	 	 
	25	The rolling brush has rapid brush hair replacement device. The brush hair could be completely replaced rapidly without any necessity of dismounting any hydraulic motor or hydraulic oil pipe.	 	The rolling brush has rapid brush hair replacement device. The brush hair could be completely replaced rapidly without any necessity of dismounting any hydraulic motor or hydraulic oil pipe.	 	No deviation
	 	 	 	 	 	 
	26	Hydraulic motor is built-in motor, with the rated working pressure: ≥20.5Mpa	 	Hydraulic motor is built-in motor, with the rated working pressure: 20.5Mpa	 	No deviation
	 	 	 	 	 	 
	27	Control valves of the hydraulic system adopt the hydraulic proportional valves with electrical control and manual control	 	1 Heavy load connector is adopted for the electrical control to achieve high-integration connection	 	
        Positive deviation

        1
        Heavy load connector is adopted for the electrical control to achieve high-integration connection

        High protection grade (IP65 and IP68) provided
        by heavy-load connector has incomparable advantages for equipment connection system under severe environment. It could still provide
        effective protection under severe applications with dust, rain, cold, ice and snow, oil dirt and so forth.

	 	 	 	 	 	 
	28	Rolling brush adopts multi-angle rubber coupling design	 	Rolling brush adopts multi-angle rubber coupling design	 	No deviation

 

     

     

    

 

	29	The equipment adopts light-weight design, and eliminate the use of supporting casters to reduce the overall weight of the rolling brush, reduce the use of fault rate and improve the snow removing efficiency	 	The equipment adopts light-weight design, and eliminate the use of supporting casters to reduce the overall weight of the rolling brush, reduce the use of fault rate and improve the snow removing efficiency	 	No deviation
	 	 	 	 	 	 
	30	The connecting frame uses a parallel four-bar linkage mechanism that keeps the rolling brush under the status in parallel to the ground in any position. Have buffer function for mandatory lower pressure and suspension spring	 	The connecting frame uses a parallel four-bar linkage mechanism that keeps the rolling brush under the status in parallel to the ground in any position. Have buffer function for mandatory lower pressure and suspension spring	 	No deviation
	 	 	 	 	 	 
	31	Arc-shaped rolling brush adopts new materials of high-molecular polymer to prevent the spattering of deposited snow and endow the equipment with high performance on the aspect of strength, corrosion resistance, deformation resistance, and low temperature resistance.	 	Arc-shaped rolling brush adopts new materials of high-molecular polymer to prevent the spattering of deposited snow and endow the equipment with high performance on the aspect of strength, corrosion resistance, deformation resistance, and low temperature resistance.	 	No deviation
	 	 	 	 	 	 
	32	Hydraulic oil tube and pipe fittings would adopt products in well-known brands	 	
        Hydraulic oil tube and pipe fittings would
        adopt products in well-known brands

        1
        Use CEJN quick-connector for the hydraulic connection
	 	
        Positive deviation

        1
        Use CEJN quick-connector for the hydraulic connection

        The auto-focus unit of the rapid-connect
        solution could rapidly and safely assemble with the hydraulic hose without the necessity of any tools. It has not only integrated
        with compact design, but also reinforced the rotation ring with rapid-connection, which has met the rotation application under
        saturated work pressure.

	 	 	 	 	 	 
	33	All control functions of the electrical control system are under the integrated control of a controller. There is no other change-over switch. The integrated control box is placed in the driver cabin. Buttons are flexible and reliable for the convenience of manual operation. Water-proof and corrosion resistant protective measures are arranged for electrical components in various positions.	 	All control functions of the electrical control system are under the integrated control of a controller. There is no other change-over switch. The integrated control box is placed in the driver cabin. Buttons are flexible and reliable for the convenience of manual operation. Water-proof and corrosion resistant protective measures are arranged for electrical components in various positions.	 	
        Positive deviation

        1
        Heavy load connector is adopted for the electrical control to achieve high-integration connection

        Heavy-duty connectors provide highly integrated
        connection, and a rich combination style would maximize the effective utilization rate of the equipment space.

        Heavy-duty connectors conveniently and
        efficiently achieve the modularized structure of various functional modules, which could ensure the equipment could be transported,
        installed, maintained and repaired in a convenient and safe manner. Connectors in this type are widely used in the field of power
        transmission and distribution.

	 	 	 	 	 	 

 

     

     

    

 

	34	The whole frame assembly is made of high-quality Q235B steel, which is firmly welded. The equipment has high strength in overall structure. Support rods on both sides of the machine frame are conveniently for the installation and storage of the rolling brush.	 	The whole frame assembly is made of high-quality Q235B steel, which is firmly welded. The equipment has high strength in overall structure. Support rods on both sides of the machine frame are conveniently for the installation and storage of the rolling brush.	 	No deviation
	 	 	 	 	 	 
	35	The power system of the rolling brush adopts an independent electric hydraulic power unit to drive the hoisting and swinging of the rolling brush.	 	
        The power system of the rolling brush adopts
        an independent electric hydraulic power unit to drive the hoisting and swinging of the rolling brush.

        1
        Adopt an independent hydraulic power unit
	 	
        Positive deviation

        1
        Adopt an independent hydraulic power unit

        With the application of standard components,
        it could cope with most application situations required by the market, which could reduce the inventory of hydraulic components
        to the minimum level and largely reduce the work load for non-standard design.

	 	 	 	 	 	 
	36	The rolling brush could work together with the current arm hooking vehicle of Wendeng District Environmental Health Management Division	 	The rolling brush could work together with the current arm hooking vehicle of Wendeng District Environmental Health Management Division	 	No deviation

 

Contract List for the Supply and Installation
of On-board Snow-melting Agent Spreader with the Load of 10m3 for Arm Hooking Vehicle and Front-loading 3.5m Snow Sweeping Rolling
Brush of Environmental Sanitation Administration Bureau of Wendeng District, Weihai City

 

	No.	 	Item Name	 	Unit	 	Quantity	 	
        Unit Price 

        (Yuan)
	 	Total (Yuan)	 	Brand and Model
	1	 	On-board Snow-melting Agent Spreader with the Load of 10m3 for Arm Hooking Vehicle	 	Set	 	2.	 	110000	 	220000	 	REED EAGER-SMS10
	2.	 	Front-loading Snow Sweeper with the Length of 3.5m	 	Set	 	2	 	90000	 	180000	 	REED EAGER-SST3500
	Total	 	400000Exhibit 10.3

 

Government Procurement Contract

 

Buyer (Party A) (Full
Name of the Buyer): Lankao County City Appearance and Environmental Sanitation Administration Bureau

 

Supplier (Party B) (Full
Name of the Winning Supplier): Reed (Xinxiang) Road Co., Ltd.

 

With the Letter of Acceptance
issued by the tenderee and according to the tender documents, the bid documents, quotation documents of the supplier (Project No.:
BJHLHN-2017-436), both parties hereby enter into this contract with below terms and conditions after friendly negotiation in accordance
with applicable laws and rules like Governmental Procurement Law and Contract Law.

 

I. Name of the Contract:
Third Tender Section of the Procurement Project of Sanitation Vehicle, Cleaning Vehicles, Special Vehicles and Tricycles.

 

II. Total Contract Price:
46,667,500 Yuan (in capital: RMB Forty-Six Million Six Hundred and Sixty-Seven Thousand Five Hundred Yuan in Total).

 

Supply scope, technical
specification and price breakdown are shown as below:

 

Unit: RMB Yuan

 

	No.	 	Goods Name	 	Brand	 	
        Specification and 

        Model
	 	Quantity	 	Unit (Set)	 	
        Unit Price 

        (Total Price)

	1	 	Cleaning Sweeper Truck	 	Fulongma	 	
        FLM5160TXSD5

        16-ton
	 	32	 	Set	 	668000
	2	 	High-pressure washing vehicle	 	Fulongma	 	
        FLM5250GQXD5

        25-ton
	 	22	 	Set	 	620000
	3	 	Greening watering truck	 	Fulongma	 	
        FLM5252GQXD5

        25-ton
	 	4	 	Set	 	481000
	4	 	Sweeper truck	 	Fulongma	 	
        FLM5080TXSJL5

        8-ton
	 	1	 	Set	 	488000
	5	 	Vacuum Sweeper Truck	 	Fulongma	 	
        FLM5160TXCD5

        16-ton
	 	6	 	Set	 	728000

 

     

     

    

 

	6	 	Pavement maintenance vehicle	 	Fulongma	 	
        FLM5030TYHC5

        3-ton
	 	10	 	Set	 	148000
	7	 	Suction sewage truck	 	CLW	 	
        CLW5161GXWD5

        16-ton
	 	2.	 	Set	 	350000
	8	 	Rubbish Dumper	 	Yandi	 	
        SZD5168ZLJE5

        16-ton
	 	1	 	Set	 	436500
	9	 	Sanitation dumper	 	Dongfeng	 	
        EQ3258GLV4

        25-ton
	 	4	 	Set	 	550000
	10	 	Small advertising cleaning car	 	Reed	 	
        REED-5022

        510 liters
	 	1	 	Set	 	65000
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Price (RMB)	 	In numbers: 46667500.00
	 	In Capital: RMB Forty-Six Million Six Hundred and Sixty-Seven Thousand Five Hundred Yuan in Total

 

III. Quality Requirements
and Conditions and Period for Supplier’s Responsibility for Quality:

 

Goods supplied shall
conform to requirements of relevant mandatory regulations, national (industrial) standards or relevant laws and rules, as well
as quality requirements specified in the tender document. The Supplier shall provide brand new and unopened products (including
components, accessories and so forth). In case of any opening requirement, the Supplier shall acquire the consent for responsible
person of the Buyer in advance; otherwise, it would be deemed as failure to deliver by the Supplier. The Supplier guarantees that
it would deliver goods and services to the Buyer according to the time and method regulated in this contract, and cure all possible
defects. In case of any objection to the specification, model and quality, the Buyer shall raise such objections in writing within
one days upon receipt of such goods. The deadline for raising objections about the installation and commissioning of complete set
of goods is one day.

 

     

     

    

 

IV. After-Sales Services
Commitment:

 

1. Response time of
after-sales services: response time after receipt of repair request from the user (arrive at the site within one hour).

 

2. Time for solving
problem: commitment time for solving quality problems (within 12 hours after arrival at the site).

 

3. Name, address and
contact information of the after-sales service agency: Reed (Xinxiang) Road Co., Ltd.; Xinxiang Economic and Technological Development
Park; 0373-3020333

 

4. Other service commitments:
(1) free home delivery services; (2) regular visits and equipment maintenance (two weeks after equipment delivery, three months
after equipment delivery, summer and winter in each year); (3) warranty period – to provide free on-site inspection and repair
service within 24 hours; (4) the equipment shall conform to national standards and factory standards; (5) during the design service
life of the equipment, the Supplier shall ensure the supply of normal parts and components to ensure the normal use of the equipment.
In case of any replacement requirements for any components, the Supplier shall provide at the most favorable price (cost price);
(6) all software should be upgraded for free during the lifetime of such software.

 

V. Performance of Contract:

 

After the effectiveness
of this contract, the Supplier shall, within 5 calendar days upon the signature of this contract, complete the delivery,
installation and commissioning (or construction) of the project at the designated place of the Buyer according to requirements
of the Buyer. The Supplier shall be responsible for the transportation expenses of the goods. After delivering the goods to the
designated place, the Buyer shall provide places, power supply and environment conforming to installation conditions.

 

VI. Materials:

 

In the delivery of goods,
the Supplier shall provide user instructions, quality certificate and other relevant materials of the goods. Otherwise, the Buyer
would have the right to deem that as failure in delivery.

 

VII. Inspection and
Acceptance Requirements:

 

1. The Supplier shall
submit inspection and acceptance application in writing to the Buyer in time after the completion of the performance.

 

     

     

    

 

2. The Buyer shall arrange
inspection within one working day upon receipt of the inspection and acceptance application. The relevant personnel shall organize
inspection carefully according regulations in the tender documents, commitments in the bid documents of the bid winner and relevant
regulations of the country.

 

3. The Buyer shall issue
a government procurement acceptance certificate within one days after the acceptance.

 

VIII. Payment Procedure,
Method and Deadline:

 

1. The Supplier shall
issue invoices addressed to the Buyer.

 

2. Payment method: 40%
of the total amount shall be paid before December 30, 2017; 30% of the total amount shall be paid before June 30, 2018; the remaining
30% shall be paid before June 30, 2019.

 

3. The Supplier shall
take the inspection report or acceptance certificate issued by the Buyer to go through the payment formalities at the finance department
of the Buyer.

 

IX. The unit price and
total price in this contract are fixed prices, which shall not be influenced by factors like market risk.

 

X. Liabilities for Breach
of Contract

 

1. In the event that
the variety, model, specification or quality of any goods delivered by the Supplier fail to meet requirements of applicable national
standards and this contract, or the Supplier fails to deliver goods or complete the system installation and commissioning, the
Buyer could require the Supplier to pay a penalty at 0.01% of the total contract price, or require the Supplier to compensate the
damage suffered.

 

2. In case the Supplier
fails to deliver goods on time, the Supplier shall pay liquidated damage at the amount of 0.01% of the total contract price for
each day delayed to the Buyer. However, the total amount of liquidated damage for delay in delivery shall be no more than 0.6%
of the total contract amount. If the delivery is delayed for more than 60 days, the Buyer has the right to terminate this contract
or select to continue the performance of this contract. If the Buyer selects to continue the performance of this contract, the
Buyer shall still have the right to claim the liabilities for breach of contract against the Supplier.

 

     

     

    

 

The breach of contract
of the Buyer shall be handled according to general terms and conditions of this contract.

 

XI. Termination of Contract:

 

In case either party
has any breaching behavior in Article X of this contract, the other party shall have the right to terminate this contract, and
require the breaching party to undertake the liabilities for breach of contract.

 

XII. Dispute Settlement:

 

1. Friendly consultation
between both parties;

 

2. Submit the dispute
to the competent authority for mediation;

 

3. Take legal actions
at the People’s Court with jurisdiction rights over the places of the Buyer.

 

XIII. Effectiveness,
Filing and Other Affairs of this contract:

 

1. This contract shall
be effective upon the signatures of representatives of not parties and seals of both parties.

 

2. This contract should
be made in six copies.

 

3. In case of any unmentioned
affairs in this contract, both parties could sign a supplementary agreement, which shall not conflict with any material regulations
of the tender documents of the Buyer and bid documents or quote documents of the Supplier.

 

     

     

    

 

Supplier (Seal): Reed (Xinxiang) Road Co.,
Ltd. [Corporate seal affixed herein]

 

Address: Industrial Park, Xinxiang Economic
and Technological Development Zone

 

 Legal Representative or Authorized
Representative (Signature): /s/ Ding Zhiqi 

 

Telephone: 0373-3059876

 

Bank Name: Bank of China Xinxiang Laodong
Road Sub-branch

 

Account No.: 258510498609

 

Buyer (Official Seal): Lankao County City
Appearance and Environmental Sanitation Administration Bureau [Government seal affixed herein]

 

Address: 15 meters East of the Crossroad
between Zhenxing Road and Wenming Road, Lankao County

 

Legal Representative or Authorized Representative
(Signature): /s/ Sun Yudong

 

Telephone: 18530091777

 

Bank Name:

 

Account No.:

 

Date of Signature: December 20, 2017

 

Signature Place: Place of the Buyer

 

     

     

    

 

Inspection Report of Goods

 

	Project	 	No.	 	Product Name	 	Model	 	Quantity	 	Remark
	 	 	1	 	Cleaning Sweeper Truck	 	FLM5160TXSD5	 	32 Sets	 	 
	 	 	 	 	High-pressure washing vehicle	 	FLM5250GQXD5	 	22 Sets	 	 
	 	 	 	 	Greening watering truck	 	FLM5252GQXD5	 	4 Sets	 	 
	 	 	 	 	Sweeper truck	 	FLM5080TXSJL5	 	1 Set	 	 
	 	 	 	 	Vacuum Sweeper Truck	 	FLM5160TXCD5	 	6 Sets	 	 
	 	 	 	 	Pavement maintenance vehicle	 	FLM5030TYHC5	 	10 Sets	 	 
	 	 	 	 	Suction sewage truck	 	CLW5161GXWD5	 	2 Sets	 	 
	 	 	 	 	Sanitation dumper	 	EQ3258GLV4	 	4 Sets	 	 
	 	 	 	 	Rubbish Dumper	 	SZD5168ZLJE5	 	1 Set	 	 
	 	 	 	 	Small advertising cleaning car	 	REED-5022	 	1 Set	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Quality, Installation, Operation and Service Status: (check √) Excellent (√) Good (          )   General (             )  Poor (             )
	 
	Whether the technical demonstration and explanation about operation are arranged (check √)  Yes (√) No (          )
	 
	Attitude of Service Staff (check √) Enthusiastic (√) cold (          ) rude (          )
	 
	Whether additional charges or disguised charges are collected (check √): Yes (          ) No (√)
	 
	Whether consulting and requirements of the user are patiently answered and solved (check √):  Yes (√) No (          )
	 
	Comments and suggestions of the customer: thoughtful services and detailed explanation

 

     

     

    

 

	 Signature of the Delivery Person:
        /s/ Wang Wei 

         [Corporate seal affixed herein] 
	 Signature of the Inspector:
        /s/ Hu Jintong 

         [Government seal affixed herein] 

	 Telephone: 13623906330 

         Delivery Date: 
	 Telephone: 15890317676 

         Acceptance Date: December 2017

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