Document:

ex10-2.htm

Exhibit 10.2

Construction and contracting contract

Clients:

Huangshan City .Yixian County. Tiancheng Real Estate Development Co., Ltd.

Huangshan City. Xiangxigu Resort Co., Ltd.

Name of Project: Decoration and installation of electrical and mechanical systems in the fourth and sixth building, Xiangxigu Resort, Huangshan City, PRC.

Contract Number: XXG-ZS-C-09-03

  

  

  

Clients (Party A):

Huangshan City.  Yixian County. Tiancheng Real Estate Development Co., Ltd.

Huangshan City. Xiangxigu Resort Co. Ltd.

Contractor (Party B): Leader Smart Engineering (Shanghai) Co., Ltd.

                                        

In accordance with the principle of "PRC Economic Contract Law", "Conditions of construction and installation contracting ", combine with the specific circumstances of this project, three parties have reach the following agreement:-

The contract provides for the "Construction Contract Conditions" means the State Administration for Industry and Commerce , PRC Ministry of Construction of "Building construction contract" (GF-91-0201)

Section  1  Overview

1.1      Name of project: Decoration and installation of electrical and mechanical systems in the fourth and sixth building, Xiangxigu Resort, Yixian County, Huangshan City.

 

Location of project: Yixian County, Huangshan City.  Anhui Province.

Coverage of project: Decoration, air conditioning systems, electrical and mechanical system, fire system and alarm system.

Scope of contracting:  construction, installation of and management

Nature of the works: interior design and installation of electrical and mechanical systems.

                                   

1.2        Date of commencement: March 10, 2009

Estimated completion date: December 31, 2009

The construction period (calendar days): 296 days

The actual start date of work of Party A will be according to the date of completion of approval from the Yixian County and Huangshan municipal government departments on the construction drawings and construction procedures and also the required documents to be issued.

 

  

  

  

	
1.3

	
Quality Grade: Good

                           

	
1.4

	
Contract price: RMB 49,000,000.00

RMB (in capital): Forty Nine Million Only.

Section 2   Contract documents and the sequence of explanation.

Section 3   The language of the contract documents used, standards and applicable laws.

	
3.1 

	
Contract Language: The official language​​of the PRC (Chinese).

	
3.2 

	
The applicable law, regulation: State laws, regulations and departmental rules or location of contract works where applicable.

3.3       Applicable Standards and norms: the construction contract must be carried out according to the national standards and norms. If party A required the use of foreign standards because of no national standards and specifications stipulated in the contract can be used in industry, profession or location of the project's local standards and specifications, then party should provide the those standards which translated into Chinese.

3.4 The standards currently in use:

According to quality of construction, delivery norms and related standards to carry out the works and installation in decoration, air conditioning, strong electricity, fire and alarm system.

Section 4   Party B in co-ordination of:

4.1 Construction qualities: Party B agrees to be responsible for overall project management, co-ordination of the construction works and also for decoration, installation of electrical and mechanical systems and modification of construction.

4.2    Admit procedure: Party A is responsible for handling the apply procedure for decoration and construction and also filing documents to the relevant government departments in Ixia County and Huntsman City.

4.3    Coordination of Construction: Party B co-ordinates and manages the  related construction works according to the normal regulations.

  

  

  

Section 5    Party B supervising issues

5.1     Construction Quality: Party B is responsible for overseeing the construction quality and strictly supervises of all installation of electrical and mechanical system, in the condition of not affecting the normal operation of business.

5.2 Safety Construction: Party B is responsible for the safety of the construction site and imposes strict management to ensure that no major incidents occurred.

Section 6   Party A’s works

6.1    Party A shall assist to apply the admit procedure and provide the relevant certificates to Party B 7 days before the commencement of construction.

6.2    Prior to confirmation of receipt from Party A, Party B will receive the various documents required for admission to the site and the handover procedure with the engineering dept. and property dept.

6.3    Party A is responsible for providing site office, communication equipment such as telephone, fax machine, broadband Internet access and transport.

6.4    Party A is responsible for providing Party B’s management personnel on-site accommodation and daily health essential supplies.

6.5    To ensure the provision of free use of temporary supply of electricity, water, equipment and materials storage for construction.

Section 7  On-site representatives of both parties

7.1    Party A  - on-site representative: Mr. Sui Jun

7.2    Party B  - on-site representative: Mr. Chu Ho Toy and Mr. Tsang Sin Chang

Section 8   Schedule

8.1    Party B will fully co-ordinate the construction in the site according to the actual progress of the requirements and the specific circumstances of the site.

Section  9   Postpone of project

9.1    Party B shall start the works in accordance with the agreed date in the contract .If it can not be started on time then a 7-day notice in necessary before the starting  date, given in writing to the Party A and state the reasons and requirements for the extension. Party A shall give a written reply to Party B within 48 hours after receiving the application for an extension. The date of commencement is extended by mutual agreement.

9.2    If both parties have different views, then the starting date should be set through friendly discussion.

 

  

  

  

 

Section 10   Suspension of works

10.1    If Party A requests the suspension of construction, a request in writing to Party B is necessary. A letter of processing with opinion will be issued within 48 hours upon submission of request.  Party B shall require to suspense of construction and properly protect the works already done. Party B can request to resume the works in writing. Party A will give a reply within 48 hours upon submission of request by Party B. If the Party A fails to put forward opinions within the 48 hours, then Party B may re-start to work. Party A has the responsibility for overall compensation, including downtime caused by the loss of Party B, outbreak of the additional contract work ands the corresponding extended contracting period.

10.2    Downtime for the costs incurred by the party B is responsible by itself.

                                         

Section 11   Delay of schedule

11.1    Delay of schedule will be according to the implementation of specific provisions and standards in Section 13 of "Construction Contract Conditions".

11.2   Except the irresistible factors and Party A not entirely fulfils the responsibility in the contract, if Party A fails to achieve the above tasks of  co-ordination that leading to construction delay, the amount charged will be set after the discussion between the two sides.

Section 12   Inspection and rework

12.1   Inspection and rework will be according to the implementation of specific provisions and standards in Section 16 of "Construction Contract Conditions".

12.2 All materials must be confirmed by both parties before use.                                           

 

Section 13   Quality rating of project

13.1   Quality of the project should meet the State or professional standard of quality inspection and assessment of the conditions

13.2   Name of the department responsible for quality assessment and arbitration: Huangshan City. Yixian County. The Construction Project Quality Supervision Division.

 

  

  

  

Section 14   Hidden works and acceptance

14.1    Hidden works and acceptance will be according to the implementation of specific provisions and standards in Section 17 of "Construction Contract Conditions".

14.2   Hidden project must be submitted in conjunction with acceptance of information and agreed with Party A.

                                                                 

Section 15    Testing

15.1    Testing will be according to the implementation of specific provisions and standards in Section 19 of "Construction Contract Conditions".

15.2    Testing will be according to the construction specifications. The testing result will be recorded.

                                                  

Section 16   Acceptance and re-inspection

16.1    Acceptance and re-inspection will be according to the implementation of specific provisions and standards in Section 18 of "Construction Contract Conditions".

16.2    If there are criticisms by Party A upon the acceptance by the supervisors in various stages of construction, then re-examination and rectification must be done before moving to the next process of the construction.

                                                

Section 17   The contract price and payment

17.1    The total contract price is scheduled for Party B tentatively to build the uncompleted construction part of the fourth and sixth building, total amount: RMB Forty Nine Million (¥ 49,000,000.00). Either party can change the terms except the following:-

During the construction process, if both parties agree to change the construction design that leading to the increase in re-work or those works outside the scope section.

17.2   Ways to adjust 

Extra amount of cost in the project require the agreement by both parties.

 

  

  

  

Section 18   Payment of contract sum

18.1   Party A shall pay 50% to Party B within 10 days after completion of the project.

18.2   After complete the whole project, Party A shall pay 45% to Party B, holding 5% for retention money.

18.3   Party A will pay the balance of remaining 5% within 6 months after completion of the project.

18.4   51% stake in the property right of the six buildings in the Resort will be transferred to Party B within one month after completion of the project if Party A defaults the payment.

18.5   Party A will bear the tax upon the engineering invoices provided by Party B for this project.

Section 19   Effective date and termination of contract

19.1    The contract is effective upon the signing by both parties. After Party A fully settles all payment to Party B for the completion of project, this contract shall be terminated automatically.

Section 20   Number of contract copies

20.1    Two original copies in total.

20.2    Both parties hold one original of the contract with same legal binding.

Section 21   Signing date and place of contract

21.1   Signing date: 14 April, 2009.

21.2   Signing place:  No. 699 Ping Tang Road, Shanghai.

  

  

  

Clients:

Huangshan City. Yixian County. Tiancheng Real Estate Development Co., Ltd.

Legal representative: Wang Ke

Huangshan City . Xiangxigu Resort Co. Ltd.

Legal representative: - Chen Zheng Hui

Address: - Huangshan City. Yixian County. Xidi Town. Xidi Village.

Tel: 0559-5156000

Postal Code 245501

Contractor: Leader Smart Engineering (Shanghai) Co., Ltd

Legal representative: - Yip Kam Ming

Address: Unit A, East, 2nd Floor, North Tower, No.699 Ping Tang Road, Chang Ning District, Shanghai, PRC.               

Telephone: 021-5260 0062

Bank ref.: Bank of Communications. Shanghai Hongkou Branch

Account number: 316463-00005055003

Postal Code 200335ex10-3.htm

Exhibit 10.3

 

Supplemental agreement on

Sales and Purchase contract re First floor of Zhongshan Ming Xuan Shopping mall

Grantor (hereinafter referred to as Party A): Zhongshan Fu Li Wa Property Development Limited (the “Property Developer”).

Transferee (hereinafter referred to as Party B): Zhongshan Jun Yue Property Development Limited (the “Re-Purchaser”)

Guarantor (Party C): Leader Smart Engineering (Shanghai) Co., Ltd.

In view of Party B to purchase part of the developing project which situated at Fuhua Road in western region of Zhongshan City from Party A  [pre-sales certificate number:   No. 2009017], now through friendly negotiations, both party agreed upon in equality, mutual benefit for the following supplemental agreement:-

Section One

The purchased property

1. Party A agreed to sell the first floor of the developing Zhongshan Ming Xuan Shopping mall project (hereinafter referred to as "the property "),include the 14 shopping units ( No. 26 to 39) on the first floor with total building area of 787.73 square meters, usable area of ​​759.54 square meters, and signed " sale contract for trading property" and sent to Zhongshan City Property exchange office for registration. The transaction of property is a normal property trading behavior.

2. The property area which Party B purchased is based on records of the subject area stated in the "sale contract for trading property ". If the measured area in future exceeds the stated records of the area, Party B shall not be required to compensate Party A. If measured area is less than the records by ​​more than 1%, Party A shall, within one year of signing this Agreement, compensate Party B for the same area of ​​shops along the street or return the overcharged.

Section Two

The payment of the purchase

1. After Party A and B signed the "Sale contract for trading property" and this "Supplementary Agreement", Party B should pay the consideration of RMB3.39 million for the full, in cash or transfer to Party A, upon the receipt issued by the Property Developer or the receipt of fund in the bank account.

 

  

  

  

2. The specific time of payment: In signing this agreement, Party A acknowledge receipt of the deposit of RMB390,000. in cash from Party B, and the remaining RMB 3 million to be paid in the registration day or the next working day after the online pre-sale registration of the property and the said "Sale contract for trading property" has been filed and duly registered.

(1) Party A agrees to authorize Party B to pay RMB3 million, being part of the sale consideration, on behalf of Party A to the designated unit, as Party A receipt when the payment is made.  Party A should present the letter of authorization before the payment.

Section Three

The Re-purchase arrangement

1. After Party B has settled the purchase payment, Party A promises to rent the purchased property of Party B within 5 days from the settlement by RMB60. per square meter for the term of ten years. The relevant tenancy agreements will also be made within 5 days from the settlement. From the year 2009, Party A will pay the monthly rent to Party B and pay rental deposit that equivalent to the rental fee of six months, and also prepay the rental for 10 months.

If the leasing arrangement is lapsed that caused by either party, Party A promises to repurchase the property within 150 days after Party B has settled the consideration for property. The repurchase amount is RMB3.39 million

2. If Party A failed to lease the property, Party A has the obligation to repurchase within five months after Party B fully settled the consideration of RMB3.39 million.  Party A shall pay RMB78,000. to Party B as the first instalment of re-purchase within 30 days after  receiving the full amount of RMB3.39 million. and pay RMB78,000. as the second instalment of repurchase to Party B within 60 days, then pay RMB78,000. to Party B within 90 days as the third instalment of repurchase and pay RMB78,000. to Party B within 120 days as the fourth instalment; and finally pay Party B RMB3.078 million within 150 days as the fifth instalment of re-purchase.

3. Within 30 days of signing this agreement, if Party A notify Party B to repurchase  and paid the above-mentioned amount Party B within 150 days,  Party B shall transfer  unconditionally the property under the name of Party A or terminate the trading relationship of both parties..

 

  

  

  

Section Four

The responsibility of both parties

1. Each party must conscientiously fulfill their contractual obligations. If either party fails to fully implement the obligations of this Agreement, it shall compensate the other party in accordance with the provisions of this agreement and the relevant laws.

2.  If Party A fails to comply with the agreed schedule to pay the full amount of repurchase per the provision in the third section or Party A does not pay RMB3.39 million to Party B after the expiration of the buy-back period, Party A will be liable to pay an overdue penalty on the unpaid balance of the one-thousandth (ie, 1 ‰) on a daily basis to Party B, according to the relevant provisions of section 5 in this Agreement.

3. Both parties shall be kept the contents of this Agreement confidentially, agreed not revealed to the unrelated third party. If there is any leakage losses, damage will be borne by the party in breach of contract.

Section Five

Breach of contract

1. If  Party A fails to repurchase the property and fails to deliver the property to Party B according to the specified date in the " sale contract for trading property" (after 720 days upon registration in property exchange office) acceptance after testing by the concerned government authorities, then Party A is in breach of contract. Party A shall pay Party B one-thousandth of the total consideration per day for liquidated damages. If it past due ninety days yet to be delivered, Party A shall pay the one and half -thousandth of the total consideration per day for liquidated damages.

2. If Party A fails to pay full amount of repurchase and overdue for more than ninety days, then Party A is in breach of contract. Party B may choose to hold the property or transfer all or part of the property to a third party. Party A must follow-up the procedure of ownership change. No refund for the amount paid to Party B. Further, Party A requires to refund 30 per cent (30%) of the consideration to Party B plus pay RMB1 million for liquidated damages. If the breach of Party A leads to litigation, all expenses (including but not limited to court costs, attorney's fees) shall be borne by Party A.

3. After eight working days when Party A pay repurchase amount in full to Party B, Party B shall transfer the property unconditionally to Party A or terminate the sale contract.  Party A will responsible for associated costs incurred.  If the delay in the transfer or termination of contract of sale caused by Party B , Party B is in breach of contract. If Party A and the government departments cause delay, Party B is not liable. If Party B fails to pay the consideration in full after the registration of property exchange, according to the provisions in section two of this Agreement, Party B is in breach of contract. Party B require to buy the property on the price  RMB15,000 /square meters and pay liquidated damages RMB 3million to Party A. If the breach of Party B leads to litigation, all expenses (including but not limited to court costs, attorney's fees) shall be borne by Party B.

 

  

  

  

 

4. All tax fees arisen relating to the agreement shall be borne by Party A.

 

5. If either party in breach of any statement, promise or breach of contract matters that lead to the loss of the other party, shall be in its respective areas of responsibility and liability.

Section Six

Party C bears responsibility of guarantee on Party A's obligations under this Agreement.

Section Seven

If the repurchase is not effective, Party A should ensure the Party B’s purchased property to fulfill the acceptance upon the testing procedure by the concerned government departments. In addition, Party A should provide all facilities, including but not limited to:-

1. Central air conditioning.

2. Suitable and qualified property management.

3. The entrance and exit channel for people and goods, with congestion-free.

4. Provide 100 free parking spaces.

Otherwise, Party B has the right to request Party A to return all the funds, and shall pay liquidated damages RMB1.5million.

Section Eight

Supplementary provisions

Based on the actual situation with consensus of both parties, the period of repurchase the property may be extended to an appropriate time, subject to one month’s prior written notice to Party B before the specified expiration. The agreement for extension of repurchase should be signed Party A, Party B and Party C.

  

  

  

Section Nine

This Agreement has four copies, Party A keeps two copies, Party B and Party C keep one copy. It is effective after all parties have signed and sealed with their Company’s chops. All copies have the same legal right.

  

  

  

(This page is no body, for the signature page)

Grantor (Party A): Zhongshan Fu Li Wa Property Development Limited    (Seal)

Legal Representative:

                      

Transferee (Party B): Zhongshan Jun Yue Property Development Limited   (Seal)

Legal Representative:

Guarantor (Party C): Leader Smart Engineering (Shanghai) Co., Ltd.    (Seal)

Legal Representative:

Date signed:   Nov 2009

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