Document:

KBS International Holdings Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2

BAY PEAK 1 OPPORTUNITY CORP.
AMENDMENT TO THE

INVESTOR MAKE GOOD SIDE LETTER AGREEMENT
FOR THE FINAL
CLOSING OF THE SHARE EXCHANGE AGREEMENT 

In the final closing of the sale of securities under that
certain Common Stock Purchase Agreement dated as of March 11, 2011, PV KBS
Holdings, L.P. (“PV Capital”) purchased shares of common stock of Bay Peak 1
Opportunity Corp.

In connection with such purchase, PV Capital wishes to become a
party to that certain Investor Make Good Side Letter Agreement dated as of March
11, 2011 (the “Make Good Side Letter”) as a Financing Investor (as that term is
defined in the Make Good Side Letter).

The undersigned, constituting the parties necessary to amend
the Make Good Side Letter hereby agree and acknowledge that PV Capital shall
become a party to the Make Good Side Letter as a Financing Investor. PV Capital
hereby agrees to become a party to the Make Good Side Letter as a Financing
Investor and to be bound by the terms thereof.

[Signature Pages to follow] 

If this amendment correctly states your understanding of our
agreement, please indicate your consent and approval by executing in the blank
provided for your signature below. 

	 	Very truly yours, 
	 	BAY PEAK 1 OPPORTUNITY CORP. 
	 	  
	 	By:                                                         
      
	 	Name:                                                    
	 	Title:                                                       

[Signature Page to Make Good Side Letter Amendment] 

If this amendment correctly states your understanding of our
agreement, please indicate your consent and approval by executing in the blank
provided for your signature below. 

	 	CONTROLLING STOCKHOLDERS: 
	 	 
	 	                                                   
               
	 	Printed
      Name:                       
        
           
	 	 
	 	                                                   
               
	 	Printed
      Name:                     
           
              

[Signature Page to Make Good Side Letter Amendment] 

If this amendment correctly states your understanding of our
agreement, please indicate your consent and approval by executing in the blank
provided for your signature below. 

	 	INVESTORS’ REPRESENTATIVE: 
	 	 
	 	                               
                                    
      
	 	David Steele 

[Signature Page to Make Good Side Letter Amendment] 

If this amendment correctly states your understanding of our
agreement, please indicate your consent and approval by executing in the blank
provided for your signature below. 

	FINANCING INVESTOR: 
	 
	PV KBS Holdings, L.P. 
	 By: PV KBS Investments, LLC 
	  
	By:                                                         
      
	Name:                                                    
	Title:                                                      
	 
	Address for Notice: 
	 
	20645 N. Pima Road, Suite 140 
	Scottsdale, AZ 85255 
	 
	With a copy to: 

[Signature Page to Make Good Side Letter Amendment]KBS International Holdings Inc.: Exhibit 10.6 - Filed by
   newsfilecorp.com

Exhibit 10.6

GF-1999-0201

Contract No.:

Construction Contract 

 

Name of Project: Hongri
Industry Zone 

Address of Project:
Economic Development Zone of Taihu County 

 

Made by: Ministry of Housing and Urban-Rural Development of
People’s Republic of China State Administration for Industry and Commerce of the
People's Republic of China 

Supervised by : Anhui Bureau Housing and Urban-Rural
Development and Anhui Administration for Industry and Commerce 

Part I Agreement 

Employer (full name): Hongri (Fujian) Sporting Goods Co.,
Ltd.

Contractor (full name): Anqing City Zhong Fang Architectural
Installment Engineering Company. 

Both parties, in accordance with the Contract Law of People’s
Republic of China, the Construction Law of People’s Republic of China and
relevant laws and administrative regulations, and in compliance with the
principles of equality, voluntariness, equity and good faith, negotiate to an
agreement for this project and enter into this Contract. 

	IV. 	
      General Information of the Project

	 	 
		
      Project Name: Hongri (Fujian) Sporting Goods Co., Ltd.
      Taihu County Economic Development Industry Zone.

	 	 
		
      Project Location: Longshan Road Economic Development
      District Taihu County

	 	 
		
      Project Content: General contraction of the
      construction

	 	 
		
      The list of projects contracted by contractor (Schedule
      1) shall be attached, if the project is a group project.

	 	 
		
      Project Approval No.:_____________________

	 	 
		
      Fund Resource: self founded

	 	 
	V. 	
      Project Scope

	 	 
		
      Project Scope: shall carry out the construction
      according to the designed blueprint.

	 	 
	VI. 	
      Project Period

	 	 
		
      Commencement Date: prior to December 31,
    2010

	 	 
		
      Completion Date: December 31, 2012

	 	 
		
      The total calendar days of the project period is 730
      days.

	 	 
	VII. 	
      Quality Standards

	 	 
		
      The quality standards of the project is
      qualified.

	VIII. 	
      Contract Price

Amount (In capital): RMB One Hundred and Eighteen Million
Three Hundred and Eighty Thousand and Five Hundred and Seventy 

¥118,380,570 

	IX. 	Components Documents of the Contract 
	  	 
	  	The components documents of the contract are as
      follows: 
	  	 
	1. 	The Agreement of the Contract 
	  	 
	2. 	The notice for acceptance of tender 
	  	 
	3. 	Tender book and its attachments 
	  	 
	4. 	Particular Articles of the Contract 
	 	
	5. 	General Articles of the Contract 
	  	 
	6. 	Standard and specification documents and other
      relevant technology documents 
	  	 
	7. 	Drawing set 
	  	 
	8. 	Project loads list 
	  	 
	9. 	Project quotation sheets or budget book
  

Any written agreements and documents regarding the negotiation
and amendment of the project shall be deemed as the components of the Contract.

	X. 	
      The relevant terms in this Agreement shall have the same
      definition as those respectively defined in the General Articles as the
      Part II of the Contract.

	 	 
	XI. 	
      The contractor promises to the employer that he shall
      carry out and complete all of the construction works according to the
      Contract and will undertake the responsibility of quality warranty for the
      project within the quality warranty period.

	 	 
	XII. 	
      The employer promises to the contractor that he shall pay
      contract price and other payable amounts to the contractor according to
      the payment terms and methods as agreed in the Contract.

	 	 
	XIII. 	
      Effectiveness of the Contract

	 	 
		
      The Contract is signed on: December 20,
  2010

	 	 
		
      The Contract is signed at: Economic Development Zone
      of Taihu County.

Both parties agree that the Contract will be effective upon
affixed with chop. 

	Employer: (chop) 	Contractor: (chop) 
	Address: 	Address: 
	Legal Representative: 	Legal Representative: 
	Authorized Person: 	Authorized Person: 
	Tel: 	Tel: 
	Fax: 	Fax: 
	Account Opening Bank: 	Account Opening Bank: 
	Account Number: 	Account Number: 
	Post Code: 	Post Code: 

	
      Witnessed by Administration for Industry and Commerce: 

       
	
      Registration with Bureau of Housing and Urban Rural Construction 

       

	
      (Witness chop) 

       
	
      (Chop) 

       

	
      Handling Person: 

       
	
      Handling Person: 

       

Part II General Articles 

	I. 	Definitions and Contract Documents 
	 	 
	1. 	
      Definitions

The following words shall have the definition as defined in
this article unless otherwise stipulated in this contract. 

	 	1.1 	
      General Articles: They are made according to laws,
      regulations and requirements of the project construction, usually are used
      as the terms of project construction.

	 	 	 
	 	1.2 	
      Particular Articles: They are made by employer and
      contractor according to laws, administrative regulations, based on the
      factual requirements of the project, employer and contractor negotiate to
      an agreement on the articles, they are specific, supplement and amendment
      articles to general articles.

	 	 	 
	 	1.3 	
      The Employer: The party as specified in the Agreement
      which is qualified to be the project employer and is able to pay the
      contract price, and the legal successor to the title of the
  party.

	 	 	 
	 	1.4 	
      The Contractor: The Party as specified in the Agreement
      that is qualified for contracting construction project and it accepted by
      the Employer, and the legal successor to the title of the party.

	 	 	 
	 	1.5 	
      The Project Manager: The representative as appointed by
      the contractor to be responsible for the construction management and
      performance of the contract.

	 	 	 
	 	1.6 	
      The Designer: The company entrusted by the Employer to be
      responsible for the design of this Project, who has obtained the relevant
      qualification certificate for project design.

	 	 	 
	 	1.7 	
      The Supervisor: The Company entrusted by the Employer to
      be responsible for the supervision of this Project, who has obtained the
      relevant qualification certificate for project supervision.

	 	 	 
	 	1.8 	
      The Engineers: The general supervision engineer appointed
      by the Supervisor and representative who will be responsible for the
      performance of the Contract appointed by Employer, Their identity and
      authority will be specified by the Employer and the Contractor in the
      Particular Articles of the Contract.

	 	 	 
	 	1.9 	
      The Project Price Governing Authority: The relevant
      department of the State Council, the construction administrative
      departments of the local government at or above the county level or the project
      price governing institute as authorized by the above mentioned
      departments.

	 	1.10 	
      The Project: The project within the construction scope
      agreed in this agreement by the Employer and the Contractor.

	 	 	 
	 	1.11 	
      The Contract Price: The amount specified in this
      Agreement by both Parties that the Employer shall pay to the Contractor
      provided that the Contractor has completed all the works within the
      contract scope and undertaken the responsibility of quality
    warranty.

	 	 	 
	 	1.12 	
      The Additional Contract Price: In case the Contract Price
      needs to be increased during the performance of the Contract, the
      increasing part shall be calculated according to the method agreed by both
      Parties after the confirmation and approval of the Employer.

	 	 	 
	 	1.13 	
      Expenses: The economic expenditure excluded in the
      Contract Price and to be born by either the Employer or by the
      Contractor.

	 	 	 
	 	1.14 	
      Project Period: The contracting days that are specified
      in the Agreement by both Parties and are calculated as per calendar days
      (including all weekends and statutory holidays).

	 	 	 
	 	1.15 	
      The Commencement Date: The date on which the Contractor
      commences the construction hereunder as specified in the
  agreement.

	 	 	 
	 	1.16 	
      The Completion Date: The absolute or relative date on
      which the Contractor completes the works under the contract scope as
      specified in the agreement.

	 	 	 
	 	1.17 	
      The Drawings: Any and all the drawings satisfactory to
      the construction requirements of the Contractor (including accessorial
      instructions and related materials), which are presented by the Employer
      or presented by Contractor and Approved by Employer.

	 	 	 
	 	1.18 	
      The Site: The site provided by the Employer for the
      purpose of executing the Project and any other place specified by the
      Employer in the Drawings for the purpose of executing the
  Project.

	 	 	 
	 	1.19 	
      In writing or written: The form where the contents it
      carries can be tangibly represented, such as agreements, letters and
      digital documents (including telegrams, telexes, facsimiles, electronic
      data interchange and e-mails), etc.

	 	 	 
	 	1.20 	
      Liability for Breach: The liability to be taken by either
      Party who fails to fulfill the contractual duties or fails to perform its
      contractual duties in compliance with the
Contract.

		1.21 	
      Claim: The claim against the other Party for economic
      compensation and/or extending the Project Period for the actual losses
      that are caused not due to his fault, but due to a reason attributable to
      the other Party during the performance of this Contract.

	 	 	 
		1.22 	
      Force Majeure: Any objective situation that is
      unforeseeable, unavoidable or unconquerable.

	 	 	 
		1.23 	
      Hour or Day: in the Contract, where a period is specified
      to be calculated by hour, the period shall be calculated from the
      effective commencement of the event (the break time shall not be
      deducted); where a period is specified to be calculated by day, the day of
      commencement shall not be included, and the calculation shall start from
      the following day. Where the final day of a time limit falls on a public
      holiday or other statutory holidays, the day after the holiday shall be
      deemed to be the final day of the time limit, but this shall not apply to
      the case of Completion Date. Closing time for the final day of a time
      limit shall be midnight 24:00.

	 	 	 
	2. 	
      Contract Documents and Interpretation Priority

	 	 	 
		2.1 	
      The documents of the Contract shall be taken as mutually
      explanatory and interpretable of one another. The priority for
      interpretation shall be as follows:

	 	 	 
	 	(1) 	The Agreement
		
       

	 	(2) 	The Notice of Acceptance of Tender
		
       

	 	(3) 	Tender book and its attachments
		
       

	 	(4) 	Particular Articles of the Contract
		
       

	 	(5) 	General Articles of the Contract
		
       

	 	(6) 	Standard, specification documents and other relevant technology
      documents
		
       

	 	(7) 	Drawings
		
       

	 	(8) 	Project loads list
		
       

	 	(9) 	Project Quotation list and budget book
		
       

		
      Any written agreements and documents regarding the
      negotiation and amendment of the project shall be deemed as the components
      of the Contract.

	 	 	 
		2.2 	
      If there is any ambiguity or inconsistency in the
      Contract Documents, it is shall be settled through negotiation between
      Employer and Contractor without impact of the normal progress of the Project.
      Both parties may also submit the ambiguity or inconsistency to the
      engineer who is responsible for the supervision to interpret. If both
      parties fails to reach an agreement or do not agree submit the submit the
      ambiguity or inconsistency to the engineer to interpret, then the
      interpretation of the ambiguity or inconsistency shall be settled
      according to the Article 37 in the General Articles regarding disputes
      settlement.

	3. 	
      Language and Applicable Laws, Standards and
      Specifications.

	 	 	 
		3.1 	
      Language

	 	 	 
		
      The Contract Documents shall be written, explained and
      interpreted in Chinese. In case of contract documents are requested to be
      written more than 2 kinds of language (including 2 languages) in the
      Particular Articles, Chinese shall be the standard language to interpret
      and explain the Contract.

	 	 	 
		
      In the minority area, both parties may agree use minority
      language to write, explain and interpret the Contract.

	 	 	 
		3.2 	
      Applicable Laws and Regulations

	 	 	 
		
      The Contract Documents shall be governed by state laws
      and administrative regulations. The laws and administrative regulations
      need to be explicit states shall be specified in the Particular Articles
      by both parties.

	 	 	 
		3.3 	
      Applicable Standards and Specifications

	 	 	 
		
      Both Parties shall specify the names of the applicable
      national standards and specifications in the Particular Articles; if there
      are no national standards and specifications but industry standards and
      specifications, the parties shall specify the names of the applicable
      industry standards and specifications; if there are no national and
      industry standards and specifications, the parties shall specify the name
      of the local standards and specifications to be applied where the project
      is located. The Employer shall provide the Contractor with two sets of
      agreed standards and specifications according to the Particular
      Articles.

	 	 	 
		
      In case there are no relevant standards and
      specifications in the domestic, the Employer shall give the construction
      requirements to the Contractor according to the time limit specified in
      the Particular Articles, Contractor shall provide the construction process
      within the specified time and requirements, and then execute the process
      upon the recognition of Employer. In case Employer requests apply the
      foreign standards and specifications, the Employer shall provide Chinese
      version of the foreign standards and specifications.

	 	 	 
		
      All the Expenses for purchasing and translating the
      standards and specification or making out construction process shall be
      borne by the Employer.

	4. 	Drawings 
	  	  	  
		4.1 	The Employer shall provide the Contractor with
      drawings according to the time and sets specified in the Particular
      Articles. If the Contractor requests additional copy of the Drawings, the
      Employer shall duplicate it for Contractor at the Contractor’s cost. If
      Employer requests Contractor to keep the Project in confidential, he shall
      specify the confidential requirement in the Particular Articles, and the
      confidential measures shall be borne by Employer, the Contractor shall
      perform the confidentiality duty at specified time. 
	  	  	  
		4.2 	The Contractor must not provide the Drawings to
      any third party without the Employer's approval. When the quality warranty
      period of the Project expires, the Contractor shall return all of the
      Drawings to the Employer except for those for the Contractor's filing.
  
	  	  	  
		4.3 	The Contractor shall keep a full set of the
      Drawings at the construction Site for the use of Project inspection by the
      Engineers and the Employer's Personnel. 
	  	  	  
	II. 	The General Rights and Obligations of
      Parties 
	  	  	  
	5. 	Engineers 
	  	  	  
		5.1 	If the Project supervision applied, the
      Employer shall notice the Contractor the Supervisor’s name, supervision
      contents and supervision authority in the written form prior the date of
      execution of the supervision. 
	 	  	 
		5.2 	The general supervision engineer appointed by
      Supervisor shall be called Engineers in the Contract, Employer and
      Contractor shall specify the Engineers’ names, titles and authorities in
      the Particular Articles. Engineers shall perform his authority according
      to the Contract, if the Employer requests that the Engineer shall obtain
      his approval before his performance of the authority in the Particular
      Articles, the Employer shall obtain the approval first. 
	  	  	  
		5.3 	The representative who is responsible for the
      performance of the Contract appointed to the Site by Employer also is the
      Engineer under the Contract, Employer shall specify the Engineers’ names,
      titles and authorities in the Particular Articles, but the
      representative’s authority shall not be crossed with the authorities of
      general supervision engineer appointed by Supervisor. If the authorities
      of general supervision engineer and representative are intercrossed or
      uncertain, the Employer shall specify the authorities and notice
      Contractor in written form. 
	  	  	  
		5.4 	During the performance of this Contract, in
      case any event affecting the rights or obligations of the Employer and the
      Contractor occurs, the Supervision Engineer in charge of supervision shall
      handle objectively and fairly such event in accordance with his rights as
      specified in this Contract. If either Party disputes the decision of the
      Supervision Engineer, it shall be solved in accordance with Article 37 of
      the Contract in respect of dispute settlement.

		5.5 	
      The Engineers shall have no rights to terminate any of
      the Contractor's rights or obligations as agreed in the Contract, unless
      otherwise stipulated clearly in this Contract or approved by the
      Employer.

	 	 	 
		5.6 	
      In case the supervision not applied, the Engineers under
      the Contract shall exclusive mean the representatives appointed by
      Employer to the Site to perform the Contract, and their authorities shall
      be specified in the Particular Articles by Employer.

	 	 	 
	6. 	
      Appointment and Instruction of the Engineers

	 	 	 
		6.1 	
      Engineers may appoint the engineer representatives to
      perform the Engineers authorities agreed in the Contract, and may withdraw
      the appointment when it is necessary. The appointment and withdrawing
      shall be noticed to Contractor in the written form in 7 days advance. The
      Engineers who are responsible for the supervision shall notice the
      Employer with the appointment and withdrawing. appointment and withdrawing
      notices shall be the attachments of the Contract.

	 	 	 
			
      Any written documents sent to Contractor by the
      engineers’ representatives within the authorized scope of Engineers shall
      have the same force as the documents sent by Engineers. If the Contractor
      has any questions on the documents sent by engineers’ representatives, the
      Contractor may submit the documents to Engineers, the Engineers shall
      confirm. If there is mistake on the instruction sent by engineers’
      representatives, Engineers shall collect it.

	 	 	 
			
      Except Engineers or engineers’ representatives, other
      personnel appointed to the Site by Employer shall have right to send
      instruction.

	 	 	 
		6.2 	
      The instruction or notice from the Engineers shall be
      signed by the Engineers and sent to the Project Manager in writing, and
      shall be valid at the time when the Project Manager signs his personal
      signature and writes the receiving time on it. When necessary, the
      Engineers can make an oral instruction, which shall be confirmed in
      writing within 48 hours thereafter, and the Contractor shall implement the
      instruction. If the Engineers cannot provide his writing confirmation in a
      timely manner, the Contractor shall require the confirmation in writing
      within 7 days after the Engineers give the oral instruction. The oral
      instruction will be deemed as confirmed if the Engineers fail to reply
      within 48 hours after the Contractor submits a request for
      confirmation.

	 	 	The Contractor considers that the Engineers' instruction
      is unreasonable, he must submit a proposal in writing to the Engineers for
      modifying the instruction within 24 hours after receiving the instruction,
      and the Engineers shall determine to modify the instruction or continue
      implementing the original instruction and notify the Contractor in writing
      thereof within 24 hours after receiving the Contractor's proposal. In case
      of emergency, the Contractor shall implement the Engineers' instruction
      which the Engineers require to be implemented immediately or which the
      Engineers determine to continue implementing in spite of the Contractor's
      disagreement on it. The additional Contract Price and actual loss to
      Contractor due to the wrong instruction shall be borne by Employer, the
      delayed Project Period shall be correspondently extended.
	 	 
	 	 	The Article shall applied to the case the instructions and notices
      sent by engineers’ representatives.
	 	 	 
		6.3 	
      The Engineers shall provide the instruction approval
      required to Contractor and perform other duties timely as agreed in the
      Contract. If the Engineers fail to perform duties according to the
      Contract and result in delay of Project Period, the Employer shall be
      liable for payment of additional Project Price, and compensation of the
      Contractor’s actual loss and extending the delayed Project
  Period.

	 	 	 
		6.4 	
      If there is need to replace the Engineers, the Employer
      shall notify Contractor in writing at least 7 days in advance on such
      replacement, The successor shall continue to exercise and perform the
      predecessor's rights and obligations as set out in the Contract.

	 	 	 
	7. 	
      Project Manager

	 	 	 
		7.1 	
      The name and title of Project Manager shall be specified
      in the Particular Articles.

	 	 	 
		7.2 	
      A notice, request or demand issued by the Contractor
      according to this Contract shall be made in writing, signed by the Project
      Manager and delivered to the Engineers, and such notice, request and
      demand will only be valid after the Engineers sign their respective names
      and the receiving time on the return of the notice.

	 	 	 
		7.3 	
      Project Manager shall organize the construction work in
      accordance with the construction organization design (the construction
      plan) confirmed by the Employer and the instructions given by the
      Engineers and/or the Employer's Representative according to this Contract.
      In case of emergency and when the Engineers and the Employer's
      Representative are not available, the Project Manager shall take emergency
      measures to ensure the safety of the workers, the properties and the
      Project, and submit a report to the Engineers and the Employer's
      Representative within 48 hours after such measures are taken. If the Employer or a
      third party is responsible for the occurrence of the emergency, the loss
      suffered by the Contractor shall be borne by the Employer, and the Project
      Period will be postponed accordingly. If the Contractor is responsible for
      the emergency, he shall bear the Expenses and the Project Period will not
      be postponed.

		7.4 	
      If the Contractor needs to replace the Project Manager,
      the Contractor must notify in writing to the Employer at least 7 days in
      advance about the replacement and such replacement shall be approved by
      the Employer. The successor shall continue to exercise and perform the
      predecessor's rights and obligations as set out in the Contract.

	 	 	 
		7.5 	
      The Employer may negotiate with Contractor to the replace
      the Project Manager deemed as incompetent by the Employer.

	 	 	 
	8. 	
      Works to be done by the
Employer

		8.1 	The Employer shall complete the following works
      according to the contents and time limited specified in the Particular
      Articles: 
	 	  	  
		(1) 	Complete the work for land confiscation,
      compensation for demolition of housing and for relocation of residents and
      leveling off the construction Site etc in order to make the Site meet the
      construction conditions; and the Employer shall continue to be responsible
      for solving any remaining problems arising out of the above issues after
      the commencement of the construction. 
	 	  	  
		(2) 	Connect the lines for supply of water,
      electricity and telecommunication necessary to the construction work from
      the outside of the Site into the Site and ensure such supplies during the
      course of construction. 
	 	  	  
		(3) 	Make available the roadways from the Site to
      the public roads so as to satisfy the transportation needs for the Project
      and ensure smooth transportation during the execution of Project. 
	 	  	  
		(4) 	Provide to the Contractor with the geologic and
      underground pipeline information of the Site, and be responsible for the
      truthfulness and accuracy of these information. 
	 	  	  
		(5) 	Complete the application and approval
      formalities for the Construction Permit, other approvals and permits
      necessary to the execution works, temporary land use, interruption of
      water supply, electricity supply, road traffic etc (except for the
      certificates to prove the Contractor's qualification). 
	 	  	  
		(6) 	Confirm the benchmark and Cartesian point of
      control, submit them to the Contractor in writing for an on-the-spot
      delivery and examination. 

	 	(7) 	Organize for the Contractor and the Designer to jointly examine the
      Drawings and deliver the design.
	 	 	 
	 	(8) 	Coordinate the work with respect to the protection of the underground
      pipelines near the Site, the adjacent buildings and structures (including
      preserved cultural relics) and ancient or precious trees, and bear the
      relevant Expenses.
		
       

	 	(9) 	Other works shall be done by Employer, both parties shall specify in
      the Particular Articles.
	 	  	 
		8.2 	
      Upon the request of the Employer, the Contractor must
      deal with part of or all the work stated in Article 8.1 for the Employer,
      and the related Expenses will be borne by the Employer, but the labor
      costs of the Contractor shall be borne by the Contractor.

	 	 	 
		8.3 	
      If Employer fails to perform part of or all the duties
      stated in Article 8.1 and result in delaying of the Project Period or
      losses to Contractor, the Employer shall be liable for relevant losses of
      Contractor and postpone the delayed Project Period.

	 	 	 
	9. 	
      Works to be done by the Contractor

	 	 	 
		9.1 	
      The Contractor shall complete the following works
      according to the contents and time limited specified in the Particular
      Articles:

		
       

	 	(1) 	According to the Employer's entrustment, complete the design of the
      accessories to the Project within its design qualification level and
      business, and use the design after the confirmation of the Engineers, and
      the expenses shall be borne by Employer.
	 	 	 
	 	(2) 	Present the Engineers the weekly, monthly and yearly progress schedule
      and relevant progress statistics.
		
       

	 	(3) 	Supply and maintain the lighting or other facilities used in daytime,
      and be responsible for safety guard according to the Project
  progress.
		
       

	 	(4) 	 Provide the temporary office venue, living housing and other
      facilities to the Employer at the Employer’s cost in accordance with
      quantity and requirements specified in the Particular Articles.
	 	 	 
	 	(5) 	Comply with rules regarding transportation, noise,
      environmental protection and safety of construction on the Site,
      promulgated by the relevant government authorities in charge and complete
      relevant formalities and notify the Employer of the formalities in
      writing. All the Expenses arising out thereof except penalty caused by the
      Contractor.

		(6) 	With respect to the completed Project, the
      Contractor shall be responsible for protecting the completed part before
      delivery to the Employer. The Contractor shall repair any damages during
      the protection period at his own costs. In the Particular Articles, both
      Parties shall specify the parts of the Project requiring the Contractor's
      special protection measures and the Additional Contract Price entailed
      therefrom. 
	  	  	  
		(7) 	Complete the work with respect to the
      protection of the underground pipelines beneath the Site, the adjacent
      buildings and structures (including preserved cultural relics) and ancient
      or precious trees. 
	  	  	  
		(8) 	Ensure that the cleanness of the Site is in
      conformity with the relevant regulations in respect of environmental
      sanitation administration; before delivering the Project, clean the Site
      to meet the relevant requirements of Jiangsu Province Municipality
      concerning construction project; and undertake any loss and penalty caused
      by the Contractor's violation of relevant regulations. 
	  	  	  
		(9) 	Other works shall be done by the Contractor,
      both parties shall specify in the Particular Articles. 
	  	  	  
		9.2 	If the Contractor fails to perform the
      obligations as stated in Article 9.1, which causes loss to the Employer,
      the Contractor shall compensate the relevant losses of the Employer.

	  	  	  
	III. 	The Construction Design and Project
      Period 
	  	  	  
	10. 	Progress Schedule 
	  	  	  
		10.1 	The Contractor must present a detailed
      construction organization design and the progress schedule to the
      Engineers within time limit provided in the Particular Articles. The
      Engineers shall make confirmation or propose modification opinions within
      time limit provided in the Particular Articles, failure of which shall be
      deemed as the consents thereto. 
	  	  	  
		10.2 	If the institute project in the group project
      is conducted by times, the Contractor shall construct the project
      according to the drawings presented by Employer and time of relevant
      documents, and the progress schedule made by institute project, the detail
      contents shall be specified in the Particular Articles. 
	  	  	  
		10.3 	The Contractor shall organize the construction
      works in accordance with the process schedule confirmed by Engineers, and
      shall accept the inspection and supervision by the Engineers. The
      Contractor must submit improvement measurements as required by the
      Engineers if the actual work progress is not in accordance with the
      confirmed schedule, and shall execute the improvement measurements after
      approved by Engineers. The Contractor has no right to claim Additional
      Contract Price for the improvement measures if the inconsistency between actual
      schedule and planned schedule is attributable to the Contractor.

	11. 	
      Commencement and Commencement Deferral

	 	 	 
		11.1 	
      The Contractor shall commence construction on the
      Commencement Date as agreed in the Agreement. If the Contractor cannot
      commence on time, the Contractor shall submit to the Engineers and the
      Employer's Representative requirement in writing for deferring the
      commencement with the necessary reasons not later than 7 days before the
      Commencement Date as set out in the Agreement. The Engineers shall
      response Contractor in writing within 48 hours after Engineers receive the
      application of commencement deferral. If the Engineers fails to response
      Contractor in writing within 48 hours after Engineers receive the
      application of commencement deferral, the it would be deemed as the
      approval of the commencement deferral, the Project Period can be extended
      accordingly. If the Engineers deny on the requirement on deferring the
      commencement or the Contractor fails to submit the requirement within the
      prescribed time limit, the Project Period cannot be extended.

	 	 	 
		11.2 	
      If the commencement date agreed in the Agreement deferred
      due to the Employer’s reason, the Engineers shall notify the Contractor in
      writing to postpone the commencement date. The Employer shall indemnify
      the losses of Contractor arising out of commencement deferral, and extend
      the Project Period accordingly.

	 	 	 
	12. 	
      Suspension of Construction

	 	 	 
		
      If the Engineer deems necessary, he may require the
      Contractor for project suspension in writing, and shall within48 hours
      thereafter, provide a written statement of opinion. The Contractor shall
      suspend the construction and properly protect the completed constructions
      according to the requirement of the Engineer. The Contractor can submit in
      writing an application for resuming the construction after he has
      implemented the instruction of the Engineer, and the Engineer shall reply
      to such application within 48 hours. The Contractor can resume the
      construction work, if the Engineer fails to provide the written statement
      of opinion within the above-mentioned time limit, or fails to reply within
      48 hours after receiving the resuming application from the Contractor. If
      the suspension is due to reasons attributable to the Employer, the
      Employer shall assume the Additional Contract Price arising out thereof
      and the Project Period shall be extended accordingly; If the suspension is
      due to reasons attributable to the Contractor, the Expenses arising out
      there of shall be assumed by the Contractor and the Project Period shall
      not be extended.

	 	 	 
	13. 	
      Delay in Project Period

		13.1 	
      The Project Period can be postponed after confirmed by
      the Engineer if one or several of the following matters causes the
      delay:

	 	 	 
	 	(1) 	The Employer fails to provide the Drawings as agreed in the Particular
      Articles;
		
       

	 	(2) 	The Employer fails to punctually make payment of the Contract Price,
      progress payment within time limit agreed by parties without any
      justifiable reasons, which renders that the Project cannot be continued
      normally;
		
       

	 	(3) 	The Engineer fails to present instruction, approval required in the
      Contract, which renders that the Project cannot be continued
normally
		
       

	 	(4) 	The design is changed and the project loads are increased;
		
       

	 	(5) 	The accumulated time for suspension of work arising out of power off,
      water off not due to Contractor’s action and gas off is over 8 hours
      within one week;
		
       

	 	(6)	Force Majeure;
		
       

	 	(7) 	Other situations under which the Project Period shall be extended as
      agreed in the Particular Articles or approved by Engineer.
	 	 	 
		13.2 	
      Within 14 days after the occurrence of the above
      situations in Article 13.1, the Contractor shall submit to the Engineer a
      deferral report regarding the content of the delay. After receiving the
      report, Engineer shall give confirmation within 14 days, if he fails to
      confirm or give the modification opinion, it would be deemed Engineer
      approval on the extending of the Project Period.

	 	 	 
	14. 	
      Completion of the Project

	 	 	 
		14.1 	
      The Contractor shall complete the Project on the
      Completion Date as set out in the Agreement or the postponed date as
      agreed Engineers.

	 	 	 
		14.2 	
      The Contractor shall undertake the liability for breach
      if he cannot complete the Project on the Completion Date as set out in the
      Agreement or the postponed date as agreed by the Engineers due to reasons
      attributable to himself.

	 	 	 
		14.3 	
      During the construction, if the Employer requests to
      complete the Project ahead of the schedule, the Employer and the
      Contractor shall sign an early completion contract after negotiation,
      which will be as part of this Contract. The early completion contract
      shall include the Contractor's measures to ensure quality and safety of
      the Project and the conditions offered by the Employer for the early
      completion and Additional Contract Price required for the early
      completion. 

	IV. 	Quality and Inspection 
	  	  	  
	15. 	Quality of the Project 
	  	  	  
		15.1 	The quality of the Project shall meet the
      quality standards as set out in this Agreement. The quality standards
      shall in accordance with the national or industry quality inspection
      standards. If, due to reasons attributable to the Contractor, the Project
      fails to meet the quality standards as agreed upon, the Contractor shall
      undertake the liability for breach. 
	  	  	  
		15.2 	If there is dispute on the quality of the
      Project between both Parties, the Project will be examined by the project
      quality examination institute approved by the Employer. The relevant
      Expenses and the loss entailed will be borne by the liable Party, and if
      both Parties are liable, will be shared respectively according to either
      Party's degree of liability. 
	  	  	  
	16. 	Examination and Rework 
	  	  	  
		16.1 	The Contractor shall execute the construction
      in strict accordance with the standards and specifications, requirements
      of the Drawings and instructions made by the Engineers under this
      Contract, accept the Engineers' inspection and examination at any time and
      provide convenience for the Engineers' inspection and examination. 
	  	  	  
		16.2 	Once the Engineer discovers the part of Project
      which fails to meet the requirements under the Contract and the agreed
      standard, he may require the Contractor to rework, and the Contractor
      shall rework according to the time as required by the Engineer until the
      requirements are met. The Contractor shall bear on his own the rework
      Expenses originating from failure to meet the requirements as agreed under
      the Contract and the Project Period shall not be extended. 
	  	  	  
		16.3 	The inspection and examination work of Engineer
      shall not affect the normal construction of the Project. If the normal
      construction of the Project is affected, and the inspection and
      examination are not qualified, the expenditure of affection of the normal
      construction shall be borne by the Contractor. The Employer shall be
      liable for the payment of the Additional Project Price due to adverse
      affection of normal construction of the Project and extending the Project
      Period. 
	  	  	  
		16.4 	The Employer shall be liable for the payment of
      Additional Project Price due to the wrong instruction of Engineer and
      other reasons can not be attributed to Contractor. 
	  	  	  
	17. 	Concealed Work and Intermediate
      Inspection 

		17.1 	
      When the Project is ready to be concealed, or has reached
      the point for intermediate inspection stipulated in the Particular
      Articles, the Contractor shall conduct the self-examination, and then
      notify the Engineers in writing to inspect 48 hours before the concealing
      and the intermediate inspection. The Contractor's notice shall include the
      content, time and venue of the concealing and the intermediate inspection.
      The Contractor shall prepare the inspection record. Only after the
      inspection is passed and the Engineers signs on the record, can the
      Contractor proceed with the concealing and construction. If the inspection
      fails to be passed, the Contractor shall modify the Project within the
      time limit set forth by the Engineers and then put it into
      re-inspection.

	 	 	 
		17.2 	
      Either Engineer shall send a notice for postponement to
      the Contractor in writing 24 hours before the inspection if he cannot
      carry out inspection on time, and the postponement cannot exceed 48 hours.
      If the Engineer fails to submit the postponement within above time limit
      and doesn’t conduct the inspection, the Contractor may organize the
      inspection by himself, the Engineer shall recognize the inspection
      record.

	 	 	 
		17.3 	
      Upon the inspection of Engineer, if the project quality
      meets the standards, specifications and requirements of design drawings,
      after the 24 hours of inspection, if the Engineer fails to sign on the
      inspection record, it would be deemed that the inspection record has been
      signed by the Engineer, and the Contractor may proceed with the concealing
      and construction.

	 	 	 
	18. 	
      Re-inspection

	 	 	 
		
      No matter whether the Engineers have conducted an
      inspection, whenever they request a re-inspection of the concealed part,
      the Contractor shall separate such part or dig holes as required, and
      re-conceal or repair such part after the re- inspection, If the inspection
      shows the construction satisfactory and the Contractor has performed the
      obligation of notification in accordance with the Contract, the Employer
      shall bear all the Additional Contract Price entailed therefrom and extend
      the Project Period accordingly. If the inspection shows the construction
      unsatisfactory, the Contractor shall bear all Expenses entailed therefrom,
      and the Project Period shall not be extended.

	 	 	 
	19. 	
      Trial Run

	 	 	 
		19.1 	
      If it is agreed to execute the trial run, the scope of
      the trial run must be in strict compliance with the installment scope
      contracted by the Contractor.

	 	 	 
		19.2 	
      When in the course of production equipment installation,
      a single machine is ready for trial run without any load, the Contractor
      shall organize a trial run, and shall notify the Engineer in writing of
      such trial run 48 hours in advance. The notice shall include the content,
      time and place of the trial run. The Contractor shall prepare the record
      of the trial run, and the Employer shall provide the necessary conditions
      for the trial run according to the Contractor's requirements. If the trial
      run meets the standards, the Employer's Representative shall sign on the
      record of the trial run. 

		19.3 	If the Engineer fails to participate the trial
      run on time, he shall notify the Contractor the postponement requirement
      in writing 24 hours prior to the commencement of trial run, the
      postponement shall not be over 48 hours. If the If the Engineer fails to
      present such postponement requirement, he may not participate the trial
      run, and shall recognize the trial run records. 
	 	  	  
		19.4 	When in the course of production equipment any
      installation, the whole set of machines is ready for a trial run without
      load, the Employer shall organize a trial run and shall notify the
      Contractor in writing of such trial run 48 hours in advance. The notice
      shall include the content, time and place of the trial run, and the
      requirements to the Contractor. The Contractor shall make the preparations
      according to the requirements. If the trial run meets the standards, the
      two parties shall sign on the record of the trial run. 
	 	  	  
	 	19.5 	Liabilities of Either Party 
	 	  	  
		(1) 	If the trial run fails to meet the inspection
      requirements due to reason of the design, the Employer shall request the
      Designer to modify the design, and the Contractor shall re-install
      according to the modified design. The additional Expenses for design
      modification, demolition and re-installation shall be borne by the
      Employer, and the Project Period shall be postponed accordingly. 
	 	  	  
		(2) 	If the quality of the machine manufacturing
      causes the failure of trial run, the Party that purchased the machine
      shall be responsible to re-purchase or repair it, and the Contractor shall
      be responsible for the demolition and re- installation. If the machine is
      purchased by the Contractor, the Contractor shall bear the cost of repair
      or repurchase, demolition and re-installation, and the Project Period
      shall not be extended. If the machines is purchased by the Employer, the
      Employer shall bear the above-mentioned costs as Additional Contract Price
      and the Project Period will be postponed accordingly. 
	 	  	  
		(3) 	If the failure of trial run is due to the
      Contractor's construction, the Contractor shall re-install and conduct the
      trial run as request by the Engineer and bear all of the relevant Expenses
      for the reinstallation and the trial run, and the Project Period shall not
      be postponed. 
	 	  	  
		(4) 	Trial run expenditures except the part is
      included in the Contract Price and agreed in the Particular Articles,
      shall be borne by Employer. 
	 	  	  
		(5) 	If the Engineer fails to sign the trial run
      records when the trial run ended to be satisfactory, after 24 hours of the
      ending of trial run, it shall be deemed that the Engineer has recognized the
      trial run records, the Contractor can proceed with construction or
      handling completion works. 

		19.6 	The Employer shall be responsible for the
      inputting material trial run after the completion inspection of the
      Project, if the Employer requires to conduct the inputting material trial
      run before completion inspection or Contractor’s corporation, he shall
      obtain the Contractor’s approval and sign additional supplement agreement
    
	  	  	  
	V. 	Safety Execution 
	  	  	  
	20. 	Safety and Safety Inspection 
	  	  	  
		20.1 	The Contractor shall comply with the relevant
      regulations with regard to safety of construction and conduct the
      construction work in strict accordance with safety standards, accept the
      supervision and inspection conducted by industry safety inspection
      personnel according to laws at any time, and take necessary safety
      precautions to remove potential safety hazards. The Contractor shall
      assume liability for any accidents which occur due to lack of adequate
      safety precautions and the Expenses entailed therefrom. 
	  	  	  
		20.2 	The Employer shall conduct safety education to
      on Site personnel, and be responsible for their safety. The Employer shall
      not require the Contractor to execute the Project under the violation of
      the safety management rules. The Employer shall undertake the liability
      for any accidents which occur due to Employer’s action and the Expenses
      entailed therefrom. 
	  	  	  
	21. 	Security 
	  	  	  
		21.1 	Before the Contractor carries out construction
      work in the vicinity of power equipment, electricity circuits, underground
      pipelines, air-tight concussion-proof workshop, inflammable and explosive
      areas and busy streets, the Contractor shall submit safety protection
      measures to the Engineers, and carry out such measures after receiving the
      approval from the Engineers at Employer’s cost. 
	  	  	  
		21.2 	Before the Constructor carries out blast
      operations, or conducts construction activities (including storage,
      transportation and use) in a radioactive or hazardous environment, or uses
      hazardous or erosive substances in construction work, it shall notify the
      Engineers in writing 14 days prior to such activities, propose
      corresponding safety measures, and implement such measures upon approval
      by the Engineers at Employer’s cost. 
	  	  	  
	22. 	Accidents handling

		22.1 	In the event of any accident with grave
      casualty, the Contractor shall immediately report to the relevant
      governing authorities according to the relevant provisions, notify the
      Engineer within specified time after becoming aware of such accident, and
      properly deal with such accident according to the requirements of the
      relevant governing authorities simultaneously. The entailed Expenses shall
      be borne by the party liable for the accident. 
	  	  	  
		22.2 	When the Employer and Contractor have the
      disputes on the accident liability, the liability shall be recognized by
      the governing authority. 
	  	  	  
	VI. 	Contract Price and Payment 
	  	  	  
	23. 	Contract Price and Adjustment 
	  	  	  
		23.1 	The Contract Price of biding project shall be
      agreed in the Agreement by both parties according to the tender acceptance
      price in the notice of acceptance tender. The Contract Price of non-biding
      project, shall be agreed in the Agreement by both parties according to the
      project budget book. 
	  	  	  
		23.2 	After the contract price agreed in the
      Agreement, any party may not change the contract price without other
      party’s permission. There are 3 methods to confirm the contract price,
      both parties may agree to adopt one of them in the Particular Articles.
  
	  	  	  
		(1) 	Fixed price contract. Both parties may agree
      the calculation method of risk scope and risk expenditures included in the
      contract price in the Particular Articles. If the contract price is in the
      risk scope, then it will not be adjusted. If the contract price is out of
      the risk scope, then it will be adjusted, the adjustment method shall be
      specified in the Particular Articles. 
	  	  	  
		(2) 	Adjustable price contract. The contract price
      may be adjusted according to parties agreement, both parties agree the
      adjustment method in Particular Articles. 
	  	  	  
		(3) 	Cost plus compensation contract. The contract
      price is compose of cost and compensation, both parties agree the
      calculation method of cost and compensation in Particular Articles. 
	  	  	  
		23.3 	The adjustment elements of the contract price
      in the adjustable price contract shall include: 
	  	  	  
		(1) 	The change of laws, administrative regulations
      and national policies affect the contract price; 
	  	  	  
	 	(2) 	The price issued by Project Price Governing
      Authority is adjusted; 
	 	 	 
	 	(3) 	The accumulated time for suspension of work due
    to power off, water off, gas off arising out of a reason which is not
    attribute to the Contractor within 1 week is over 8 hours;
	 	 	 
	  	(4) 	The other facts agreed by both parties.

		23.4 	
      The Contractor shall notify the Engineer the adjustment
      reason and amount in writing within 14 days after the occurrence of the
      facts in Article 23.3, the adjusted amount confirmed by the Engineer shall
      be deemed as the Contract Price, and be paid with the Project Price at the
      same time. If the Engineer fails to confirm or offer modification opinion
      within 14 days after he receives the notice, then would be deemed that the
      adjustment is approved the Engineer.

	 	 	 
	24. 	
      The Project Payment in Advance

	 	 	 
		
      If the project payment in advance applied, both parties
      shall specify the time limit and amount of the payment which is made by
      Employer to Contractor in Particular Articles, the payment in advance will
      be deducted by Employer in turn according to the agreed time and percent.
      The payment in advance shall be made within 7 days prior to the
      Commencement Date as agreed. If Employer fails to make the payment in
      advance as agreed in the Particular Articles, the Contractor may notify
      the Employer to pay the payment in advance after 7 days of the agreed
      payment time, if the Employer still fails to made the payment after
      receiving the notice, the Contractor may cease the construction after 7
      days of notice, the Employer shall pay the loan interest of the payable
      amount to the Contractor from the agreed payment time, and bear the
      liability of breach.

	 	 	 
	25. 	
      Confirmation of the Project's Quantity

	 	 	 
		25.1 	
      The Contractor shall present to the Engineers a report
      with respect to the completed quantity of the Project according to the
      time limit as agreed in the Particular Articles. The Engineers shall
      verify the quantity of the completed work according to the Drawings
      (hereinafter referred to as Quantity Verification) within 7 days after
      receipt of the report, and notify the Contractor within 24 hours; the
      Contractor shall provide convenience for Quantity Verification and assign
      staff to participate in Quantity Verification. If the Contractor does not
      participate in Quantity Verification after receiving the notice, the
      result of the Quantity Verification come into effect and be the basis of
      the payment of the Project Price.

	 	 	 
		25.2 	
      If the Engineers fails to conduct the Quantity
      Verification within 7 days after receiving the Contractor's report, the
      quantity listed in the report will be deemed as approved and as the basis
      of the payment of the Project Price from the eighth day of receiving of
      report . The verification result will not come into effect if the
      Engineers does not notify the Contractor at the time as agreed upon which results in the
      Contractor's failure of participating in Quantity Verification. 

		25.3 	The Engineers shall not verify the quantity of
      the work which is beyond the scope of the Drawings and reworked due to
      reason attributes to the Contractor. 
	  	  	  
	26. 	Payment terms (Progress payment) of
      the Project Price 
	  	  	  
		26.1 	The Employer shall pay the Project Price
      (Progress payment) within 14 days after confirmation of the Quantity
      Verification result. The Employer shall deduct the payment in advance from
      the Contractor within time limit as agreed and settle it with Project
      Price (Progress payment) at same time. 
	  	  	  
		26.2 	The Contract Price adjusted in the Article 23
      of the General Articles, the Contract Price modified in Article 31 and
      Additional Contract Price as agreed in other Articles shall be settled
      with Project Price (Progress payment) at the same time. 
	  	  	  
		26.3 	The Employer fails to pay the Project Price
      (Progress payment) within the time limit, the Contractor shall notify the
      Employer to make the payment, if the Employer fails to make the payment
      after receiving the notice, the Employer may negotiate to the Contractor
      to sign an agreement for extending the payment time, the payment time may
      be extended upon the Contractor’s approval. The agreement shall explicitly
      state extended time of payment and the loan interest shall be paid after
      15 days of the confirmation of Quantity Verification result. 
	  	  	  
		26.4 	If the Employer fails to pay the Project Price
      (Progress payment) as agreed in the Contract, and the both parties fail to
      make an agreement on the extending the payment time, which render the
      construction can’t be proceed normally, the Contractor may cease the
      construction and the Employer shall bear the liability of breach. 
	  	  	  
	VII. 	The Supply of Materials and
      Equipments 
	  	  	  
	27. 	Materials and Equipments Supplied by
      Employer 
	  	  	  
		27.1 	If the materials and equipments shall be
      supplied by the Employer, both parties shall specify a list of materials
      and equipment shall be supplied by the Employer as the attachment of the
      Contract (Schedule 2). The list shall include the types, specifications,
      sizes, quantity, unite price, quality levels, time and address of
      materials and equipments supplied by Employer. 
	  	  	  
		27.2 	The Employer shall provide materials and
      equipments according to the list, and provide the products qualification
      certificate, the Employer shall be liable for the quality. The Employer
      shall notify the Contractor in writing 24 hours prior to arrival of the
      materials and equipments to clear the materials and equipments, the Contractor shall
      appoint his staff to clear the materials and equipment with Employer. 

		27.3 	After the clearance conducted by Contractor’s
      staffs, the Contractor shall be liable for the safekeeping of the
      materials and equipment at Employer’s cost. The Contractor shall be liable
      for the damages or losses due to his action. 
	 	  	  
			If the Employer fails to notify the Contractor
      on clearance, the Contractor shall not be liable for the safekeeping of
      the materials and equipments, and Employer shall be liable for the damages
      and losses. 
	 	  	  
		27.4 	The Employer shall bear liability, if the
      materials and equipments supplied by Employer do not comply with the list.
      The specific liability is borne by Employer shall be agreed in the
      Particular Articles by both parties according following situations: 
	 	  	  
		(1) 	The Employer shall be liable for making the
      difference if the unit price of materials and equipments are inconsistent
      with the list; 
	 	  	  
		(2) 	If the type, specification, size and quality
      level of the materials and equipments are inconsistent with the list, the
      Contractor may refuse to accept the safekeeping , and the Employer shall
      be liable for the expenses accordingly; 
	 	  	  
		(3) 	If the specification, size of the materials and
      equipments are inconsistent with the list, the Contractor may change or
      adjust them at Employer’s cost; 
	 	  	  
		(4) 	If the arrival address inconsistent with the
      list, the Employer shall be responsible for deliver materials and
      equipments to designated place in the list; 
	 	  	  
		(5) 	If the supply quantity is less than the
      quantity as agreed in the list, the Employer shall make the difference, if
      supply quantity is more than the quantity as agreed in the list, the
      Employer shall be liable for deliver the additional supplied materials and
      equipments out of the Site; 
	 	  	  
		(6) 	If the arrival time is earlier than the time as
      agreed in the list, the Employer shall bear the safekeeping expenses
      arising therefrom; if the arrival time is later than the time as agreed in
      the list, the Contractor shall be liable for the losses of Contractor
      arising out of the delay, if the Project Period is delayed, it shall be
      extended accordingly 
	 	  	  
		27.5 	Before the use of the materials and equipments,
      the Contractor shall be liable for the inspection or examination at
      Employer’s cost, if the materials and equipments are not satisfactory,
      they can’t be put into use. 

		27.6 	The settlement methods of materials and
      equipments supplied by Employer shall be agreed by both parties in
      Particular Articles. 
	  	  	  
	28. 	Materials and Equipments Purchased by
      Contractor 
	  	  	  
		28.1 	The Contractor shall purchase materials and
      equipments according to the standards and requirements of design and as
      agreed in the Particular Articles, provide products qualification
      certificate, and shall be liable for the product quality. The Contractor
      shall notify the Engineer to clear the materials and equipments 24 hours
      prior to the arrival of products. 
	  	  	  
		28.2 	If the materials and equipments purchased are
      not consistent with design standards, the Contractor shall deliver those
      materials and equipments out of the Site within the time limit required by
      the Engineer, and repurchase the qualified products, and bear the expenses
      accordingly, the delayed Project Period shall not be extended. 
	  	  	  
		28.3 	Before the use of the materials and equipments,
      the Contractor shall be liable for the inspection or examination at
      Contractor’s cost, if the materials and equipments are not satisfactory,
      they can’t be put into use. 
	  	  	  
		28.4 	If the Engineer finds the materials and
      equipments purchased and used by Contractor are not consistent with design
      and standards, the Contractor shall be liable for fixing, demolition or
      repurchasing at his cost, the delayed Project Period shall not be
      extended. 
	  	  	  
		28.5 	The Contractor may use the alternative
      materials under the approval of the Engineer, the increased or deducted
      Contract Price arising from the use of the alternative materials shall be
      agreed in writing by both parties. 
	  	  	  
		28.6 	The Employer shall not designate production
      factory or supplier which the Contractor shall purchase materials from.
  
	  	  	  
	VIII. 	The Change of the Project
  
	  	  	  
	29. 	Modification of the Design 
	  	  	  
		29.1 	If the Employer needs to change the original
      design of the Project in the course of construction, the Employer shall
      give a 14-day prior written notice for such change to the Contractor. If
      the change exceeds the standards of the original design or exceeds the
      approved construction scale, the Employer shall submit the change to the
      planning authority and other relevant authorities for re-examination and
      re-approval, and the Designer shall provide corresponding drawings and
      explanations for such change. The Contractor shall carry out the following
      required changes in accordance with the change notice that is issued by
      the Engineer and as well as the relevant requirements.

	 	(1) 	Change elevation, baselines, locations and dimension of the relevant
      parts of the Project;
		
       

	 	(2) 	Increase/decrease the contracted quantity of the Project;
		
       

	 	(3) 	Adjust the schedule or order of the construction work related to the
      Project;
		
       

	 	(4)	Other works in connection with the change of the Project.
		
       

	 	 	The Employer should bear the increase or decrease of the Contract
      Price and the Contractor's losses incurred as a result of such changes,
      and the delayed Project Period will be extended accordingly.
	 	 	 
		29.2 	
      The Contractor shall not change the original design and
      the schedule or order of the construction work of the Project during the
      execution of the Project. Any Expenses and the Employer's any losses
      incurred as a result of the Contractor's unauthorized change as the above
      shall be borne by the Contractor, and the delayed Project Period will not
      be extended.

	 	 	 
		29.3 	
      Any rational proposal proposed by the Contractor during
      the execution of the Project shall be approved by the Engineers if it
      involves a change in the design drawing, the construction organization
      plan and the substitution of materials or equipment. If changes or
      substitutions are made without the approval of the Engineers, the Employer
      shall have the right to request corrections to be made by the Contractor
      according to the Contract. The Contractor shall be liable for the Expenses
      entailed therefrom and shall compensate the Employer for relevant losses,
      and the delayed Project Period shall not be extended.

	 	 	 
			
      If the Engineer agrees to adopt the rational proposal,
      the Employer and the Contractor shall agree to bear or share the expenses
      and beneficial respectively.

	 	 	 
	30. 	
      Other Modifications

	 	 	 
		
      If the Employer requires any modification to the quality
      standard of the Project or other essential changes occur during the course
      of performing the Contract, the Parties shall negotiate an agreement on
      the modifications.

	 	 	 
	31. 	
      Confirmation of Changes in the Contract Price

	 	 	 
		31.1 	
      Within 14 days after the changes of the Project are
      decided, the Contractor shall provide a report on changing the Contract
      Price, and after confirmation by the Engineers and negotiation with the
      Employer, adjustment shall be made to the Contract Price. The Contract
      Price shall be adjusted according to following
methods:

		(1) 	If there is article applicable to the
      adjustment of the Project Price, Contract Price shall be adjusted
      according to the applicable article; 
	  	  	  
		(2) 	If there is article similar to the article in
      respect of adjustment of the Project Price, Contract Price shall be
      adjusted refer to the article; 
	  	  	  
		(3) 	If there is no applicable or similar article of
      adjustment of the Project Price, the Contractor may offer an reasonable
      adjusted price, the adjusted price may be executed upon the Engineer’s
      confirmation. 
	  	  	  
		31.2 	If the Contractor fails to provide a report on
      changing the Contract Price to Engineer within 14 days after the changes
      of the Project are decided, it shall be deemed that the article doesn’t
      involve the change of Contract Price. 
	  	  	  
		31.3 	Engineer shall confirm the report within 14
      days after receiving the report on changing the Contract Price, if the
      Engineer fails to confirm on time without justified reason, the report on
      changing the Contract Price shall be deemed to be confirmed by the
      Engineer from the date after 14 days of receiving the report. 
	  	  	  
		31.4 	If the Engineer doesn’t agree with the
      Contractor to change the Contract Price, the disagreement shall be settled
      according to Article 37. 
	  	  	  
		31.5 	The Changed Contract Price confirmed by
      Engineer shall be deemed as the Additional Contract Price, and paid with
      the Project Price at the same time. 
	  	  	  
		31.6 	The Contractor may not claim the Additional
      Contract Price, if the Project is changed due to Contractor. 
	  	  	  
	IX. 	Inspection for Completion and
      Settlement 
	  	  	  
	32. 	Inspection for Completion 
	  	  	  
		32.1 	When the Project meets the conditions for the
      inspection for completion, the Contractor shall present the Employer the
      full set of materials on the Project's completion and the report for
      inspection for completion. The Contractor must provide as-built drawings
      according the requirements specified in the Particular Articles. 
	  	  	  
		32.2 	The Employer shall organize with the relevant
      authorities the inspection within 28 days after he receives the report on
      inspection for completion, and shall grant approval or put forward
      suggestions on modifications within 14 days after the inspection. The
      Contractor shall make such required modifications and bear the relevant
      Expenses required for any modification necessitated by the Contractor.
  

		32.3 	
      If the Employer fails to organize the inspection within
      28 days after he receives the report on inspection for completion, or
      fails to grant approval or put forward suggestions on modifications within
      14 days after the inspection, the inspection report shall be deemed as
      recognized.\

	 	 	 
		32.4 	
      If the inspection for completion is passed, the date that
      the Contractor delivers the inspection for completion report will be
      deemed as the actual Completion Date. If the inspection for completion is
      passed upon the amendment upon the Employer’s requirement, the date when
      the Employer submit Project for inspection upon the amendment shall be
      deemed as the actual Completion Date.

	 	 	 
		32.5 	
      If the Employer fails to organize the inspection within
      28 days after he receives the report on inspection for completion, he
      shall be liable for safekeeping and all accidental liabilities from the
      following day.

	 	 	 
		32.6 	
      The scope and time of the intermediate completion of the
      project shall be specified in the Particular Articles by both parties, the
      inspection process shall be handled according to the Article 32.1 and
      Article 32.4.

	 	 	 
		32.7 	
      For special reason, the Employer requires the units or
      parts of the project completed by punch, the both parties shall sign a
      separated agreement to specify the obligations and payment term.

	 	 	 
		32.8 	
      If the Project has not been inspected for completion or
      the inspection for completion is not passed, the Employer shall not use
      the Project; if the Employer insists on using the Project, the Employer
      shall bear quality liability and other liabilities.

	 	 	 
	33. 	
      Settlement

	 	 	 
		33.1 	
      The Contractor shall submit to the Employer a completion
      settlement report and a full set of settlement materials within 28 days
      after the report on inspection for completion is recognized by Employer,
      both parties shall adjust the contents and conduct the settlement
      according to the Contract Price as agreed in the Agreement and Particular
      Articles.

	 	 	 
		33.2 	
      Within 28 days after receiving the completion settlement
      report and settlement materials submitted by the Contractor, the Employer
      shall exam them and grant approval or put forward modification opinions.
      When the completion settlement report is approved by the Employer, the
      Employer shall notify the bank to make the payment of the Contract Price
      to the Contractor in accordance with the payment schedule, the Contractor
      shall deliver the Project to Employer within 14 days after receiving the
      completion settlement payment.

	 	 	 
		33.3 	
      If the Employer fails to pay the completion settlement
      payment within 28 days after he receives the completion settlement report
      and settlement materials, the Employer shall pay the Contractor the
      interest of unpaid Project Price at the bank loan rate at the same time
      from the following day, and shall be liable for the breach.

		33.4 	
      If the Employer fails to pay the completion settlement
      payment within 28 days after he receives the completion settlement report
      and settlement materials, the Contractor may require the Employer to pay
      the completion settlement payment. If the Employer fails to pay the
      completion settlement payment within 56 days after he receives the
      completion settlement report and settlement materials, the Contractor may
      negotiate with Employer to discount the Project Price, and the Contractor
      may apply to the people’s court to auction the Project according to law,
      and the Contractor has the priority right to claim of the discounted
      Project Price and auctioned price of the Project.

	 	 	 
		33.5 	
      If the Contractor fails to submit the completion
      settlement report and settlement materials within 28 days after the report
      recognized by Employer, which render the project completion settlement can
      not be proceed normally or the project completion settlement can not be
      paid timely, the Contractor shall deliver the Project under the Employer’s
      requirement. If the Employer does not require to deliver the Project, the
      Contractor shall be liable for safekeeping.

	 	 	 
		33.6 	
      If there is dispute on project completion settlement
      payment between Contractor and Employer, the disputes shall be settled
      according to the Article 37.

	 	 	 
	34. 	
      Quality Warranty

	 	 	 
		34.1 	
      During the quality warranty period, the Contractor shall
      undertake the quality warranty responsibility for the Project delivered
      for the Employer's use in accordance with the laws, administrative
      regulations or relevant provisions of the State regarding project quality
      warranty.

	 	 	 
		34.2 	
      Implementation of the quality warranty work. The
      Contractor shall sign a quality warranty letter with the Employer before
      the project completion inspection, which shall be one of the annexes to
      the Contract (Schedule 3).

	 	 	 
		34.3 	
      The main provisions of the quality warranty work
      include:

	 	 	 
	 	(1) 	Items and scope of the quality warranty;
		
       

	 	(2) 	Quality warranty period;
		
       

	 	(3) 	Liabilities of quality warranty;
	 	 	 
	 	(4) 	Payment of the quality warranty
premium.

	X. 	Breach, Claim and Dispute
  
	  	  	  
	35. 	Breach 	  
	  	  	  
	  	35.1 	If any of the following occurs, the Employer
      breaches the Contract: 
	  	  	  
		(1) 	The Employer ails to make the payment in
      advance as specified in Article 24 ; 
	  	  	  
		(2) 	The Employer fails to make the Project Price
      according to the Contract, which render the construction can not be
      proceed normally as specified in Article 26.4; 
	  	  	  
		(3) 	The Employer fails to make the project
      completion settlement payment without justified reason as specified in
      Article 33.3; 
	  	  	  
		(4) 	Other cases that the Employer fails to perform
      his duties according to the Contract. 
	 	 	 
	  	  	The Employer shall be liable for the
      breach, indemnify the economic losses of the Contractor due to the breach,
      and the delayed Project Period shall be extended. Both parties shall
      specify the calculation method of losses of Contractor the Employer shall
      be pay to or the damages that the Employer shall pay to in the Particular
      Articles. 
	  	  	  
	  	35.2 	The Contractor breaches the Contract if any of
      the following occurs: 
	  	  	  
		(1) 	As specified in Article14.2, the Project is
      unable to be completed on the Completion Date as agreed in the Agreement
      or the extended period as approved by the Engineer due to the reason
      attributable to the Contractor; 
	  	  	  
		(2) 	As specified in Article 15.1, if the quality of
      the Project does not reach the quality standards as agreed in the Contract
      due to reasons attributable to the Contractor; 
	  	  	  
		(3) 	Other cases that the Contractor fails to
      perform his duties according to the Contract. 
	 	 	 
	  	  	The Contractor shall be liable for
      the breach, indemnify the economic losses of the Employer due to the
      breach,. Both parties shall specify the calculation method of losses of
      Employer the Contractor shall be pay to or the damages that the Contractor
      shall pay to in the Particular Articles.
	  	  	  
		35.3 	If one party breach the Contract, the other
      party may require the breach party to continue perform the Contract, the
      breach party shall continue to perform the Contract after the undertaking
      of the breach liability. 

	36. 	
      Claim

	 	 	 
		36.1 	
      Except otherwise agreed in writing by the Parties hereto,
      when one Party claims compensation from the other Party, it shall have
      justifiable reasons for such claim and valid evidence of the occurrence of
      the event results in such claim.

	 	 	 
		36.2 	
      If the Employer fails to perform its obligations in the
      way as agreed on hereunder, or any mistakes or other things for which the
      Employer shall assume liability occur, resulting in any delay of the
      Project Period and/or the Contractor's failure to receive the Contract
      Price in a timely fashion or other economic losses of the Contractor, the
      Contractor may claim compensation from the Employer in writing according
      to the following procedure:

		
       

	 	(1) 	Issue a notice with intent of Claim to the Engineers within 28 days
      after such event resulting in claim happens;
		
       

	 	(2) 	Within 28 days after issuing the notice with intent of Claim, provide
      the Engineers with a report of Claim, requiring for extending the Project
      Period and/or compensating the economic losses, as well as related
      materials;
		
       

	 	(3) 	The Engineers shall within 28 days after receiving the report of Claim
      and relevant materials, reply to the Claim or request the Contractor to
      provide further reason and evidence for the Claim;
		
       

	 	(4)	If the Engineer fails to reply to the Claim or request the Contractor
      to provide further reason and evidence for the claim within 28 days after
      receiving the report of Claim and relevant materials, then the claim shall
      be deemed recognized by the Engineer;
		
       

	 	(5) 	During the progress of the claim, the Contractor shall issue a notice
      with intern of claim on phases basis to Employer, and deliver the claim
      materials and final claim report to the Engineer within 28 days after the
      settlement of the claim. The claim reply procedure is same as the
      procedure provided in (3), (4) of this article.
	 	 	 
		36.3 	
      If the Contractor fails to perform his obligations or
      makes mistakes, resulting in the Employer's economic losses, the Employer
      can claim the Contractor for compensation according to Article
  36.2.

	 	 	 
	37. 	
      Dispute

	 	 	 
		37.1 	
      If a dispute between both Parties occurs during the
      performance of the Contract, they shall negotiate to settle such dispute
      or submit the disputes to relevant governing authority for mediation. In
      case of unwilling of negotiation or mediation, failure of
      negotiation or mediation, both Parties may settle such dispute in any of
      the following ways: 

		(1) 	Both parties make an agreement on arbitration,
      submit the dispute to agreed arbitration committee for arbitration; 
	  	  	  
	  	(2) 	Initiating a lawsuit to the People's Court of
      competent jurisdiction. 
	  	  	  
		37.2 	After the occurrence of a dispute, the Parties
      shall continue to perform the Contract, maintain the uninterrupted
      construction and protect the completed Project except that one of the
      following situations occurs: 
	  	  	  
		(1) 	Any unilateral breach results in non
      feasibility of this Contract, or both Parties agree to stop the
      construction of the Project; 
	  	  	  
		(2) 	It is required by the mediation for stopping
      the construction and accepted by both parties; 
	  	  	  
	  	(3) 	It is required by the arbitration institute for
      stopping the construction; 
	  	  	  
	  	(4) 	It is required by court for stopping the
      construction. 
	  	  	  
	XI. 	Miscellaneous 
	  	  	  
	38. 	Sub-Contractor 
	  	  	  
		38.1 	The Contractor can only sub-contract part of
      the contracted Project according to Particular Articles, and shall enter
      into a sub-contract contract with the sub-contractor. The Contractor shall
      not sub-contract any part of the contracted Project without the Employer's
      approval. 
	  	  	  
		38.2 	The Contractor shall not re-contract the whole
      constructed Project to others or divide the whole contracted project into
      parts and then re-contract them to third parties under the name of
      sub-contract. 
	  
		38.3 	The subcontracts of the Project will not release the
      Contractor from any obligations or liabilities. The Contractor shall
      dispatch relevant management personnel in the site of subcontracting to
      ensure the performance of this Contract. The Contractor shall be jointly
      and severally liable for any damages to the Project or other losses to the
      Employer caused by any breach or negligence of sub-contractors. 
	  	  	  
		38.4 	The contract price for sub-contracting project
      shall be settled by the Contractor and the sub-contractor. Without the
      consent from the Contractor, the Employer shall not pay any project cost
      and expenses in any form to the sub-contractor. 
	  	  	  
	39. 	Force Majeure

	 	39.1 	
      The Force Majeure includes explosion and fire explosion
      caused by war, riot, falling of flying objects or other reasons not
      attributable to the Employer or the Contractor, and agreed natural
      disasters (such as storm, snow, flood, earthquake and etc.).

	 	 	 
	 	39.2 	
      Upon the occurrence of an event of Force Majeure, the
      Contractor shall immediately notify the Engineers and the Employer's
      Representative, and to the extent as possible as much, promptly take the
      measures to minimize the losses. The Employer shall provide assistance to
      the Contractor's measures. Within 48 hours after the event is over, the
      Contractor shall report to the Employer for the losses and casualties and
      the estimated Expenses for cleaning and repairing. If the event continues,
      the Contractor shall report to the Employer for the casualties every seven
      days and within 14 days after the event is over, the Contractor must
      provide the Engineers and the Employer's Representative with a final
      report on the Expenses for cleaning and repairing and the relevant
      materials.

	 	 	 
	 	39.3 	
      The Expenses and the delayed Project Period caused by the
      Force Majeure events shall be afforded by the Parties respectively in
      accordance with the following methods:

	 	(1) 	
      The Employer shall afford the Expenses resulting from the
      damage to the Project itself, personal injury and property damages of
      third person and the damages to materials used for the construction and
      equipments prepared to be installed which are delivered to the
  Site;

	 	 	 
	 	(2) 	
      Each Party shall be responsible for the personal injury
      of its own personnel and bear the relevant Expenses;

	 	 	 
	 	(3) 	
      The Contractor shall bear the losses and damages to his
      own equipment and machinery and the work stoppage arising
  therefrom;

	 	 	 
	 	(4) 	
      The Employer shall bear the Expenses of the necessary
      management and security personnel assigned by the Contractor to remain on
      the Site at request of the Engineers during the suspension of the
      Project;

	 	 	 
	 	(5) 	
      The Employer shall bear the cost of cleaning and
      repairing of the Project;

	 	 	 
	 	(6) 	
      The delayed Project Period shall be extended
      accordingly.

	 	 	 
	 		
      39.4 If the Force Majeure event happens after one Party
      delays performing the Contract, the late performing Party will not be
      released of the relevant liabilities.

	40. 	Insurance	
       

	 	40.1 	
      Prior to the Commencement of this Construction, the
      Employer shall purchase insurance to cover the lives and properties of the
      its own and the third party’s on site working personnel at its own
      cost.

	 	 	 
	 	40.2 	
      The Employer shall purchase the insurance to cover the
      material to be used and equipment to be installed, both of which will
      transport to the Construction Site, at its own cost.

	 	 	 
	 	40.3 	
      The Employer can entrust the Contractor to conduct the
      insurance on behalf of the Employer at the Employer’s cost.

	 	 	 
	 	40.4 	
      The Contractor must at its own cost, purchase the
      accident insurance for its employees who undertake the dangerous work, and
      the insurance to cover the lives and properties of its own on site working
      personnel and the equipment or device which will be utilized in the
      process of the Construction.

	 	 	 
	 	40.5 	
      In the event that an accident occurred, the Employer and
      the Contractor shall the obligation to take necessary measure to prevent
      or decline the loss might be caused.

	 	 	 
	 	40.6 	
      The detail content and related responsibility in
      connection with insurance will be specified in the Special
  Articles.

	41. 	
      Guarantee

	 	 	 
		41.1 	
      For the purpose of full performance of this Contract, the
      Employer and the Contractor shall mutually provide guarantee as
      following:

	 	(1) 	
      The Employer shall guarantee to fully perform this
      Contract and to pay the Construction Payment as set forth in this Contract
      and otherwise;

	 	 	 
	 	(2) 	
      The Contractor shall guarantee to perform its obligations
      under this Contract.

		41.2 	
      Once default incurred by one party, the other can claim
      against the third party who provide the guarantee to take corresponding
      responsibility.

	 	 	 
		41.3 	
      The content, manner and corresponding responsibility in
      connection with the guarantee, except the articles under the Special
      Articles agreed between the parties, the guarantee and the guarantor shall
      execute guarantee contract as an appendix of this Contract.

	 	 	 
	42. 	
      Patents and Special techniques

	 	 	 
		42.1 	
      If the Employer requires to use the patents or special
      techniques, it shall be responsible to the application of this patents or
      special techniques, and borne the expense in terms of the application,
      test and utilization. If the Contractor proposes to employ patents or special techniques, permit from the Engineer is necessary and the Contractor shall conduct the application formality with respect of the patent or special techniques, and borne the expense
in terms of such application.

		
42.2 		
If one party unauthorized uses the patent belonged to the third party which incurs the infringement of this patent, such party shall borne the corresponding liability in accordance with the laws and regulations.

	
	 	 	 
	
43. 		
Relics and Underground Obstacles

	
	 	 	 
		
43.1 		
If tumulus, ancient architectural ruins and other relics or fossils or other object which has value on the research of archeology and geology were found, the Contractor shall protect the site and issue a written notice to the
Engineer within 4 hours, and then the Engineer shall report this matter to local relics management administration within 24 hours upon the receipt of the notice issued by the Contractor, while both the Employer and the Contractor will maintain and
protect the site in a good manner as required by the relics management administration. The Employer will borne the expense caused under the foregoing situation and the extension of the Construction Period.

	
	 	 	 
			
If the party conceal the discovery which lead to the destroy and devastation of the relics, such party shall borne the arising responsibility.

	
	 	 	 
		
43.2 		
If any underground obstacles were found, which will adversely influence the Construction, the Contractor shall issue a written notice to the Engineer within 8 hours, at the meantime a scheme for dealing with such underground
obstacles shall be proposed, and the Engineer will issue the opinion in connection with such scheme as to whether approve or revise it with in 24 hours upon the receipt of the notice and such scheme. The Employer will borne the expense caused under
such situation and the extension of the Construction Period.

	
	 	 	 
			
If the underground obstacles is belonged to any entity, the Employer shall request such entity to synergistically deal with such underground obstacles.

	
	 	 	 
	
44. 		
Release of This Contract

	
	 	 	 
		
44.1 		
This Contract can be released after the negotiation between the parties.

	
	 	 	 
		
44.2 		
Under the situation specified in the Article 26.4, with more than 56 days suspension of the Construction due to the Employer fail to pay the Construction Payment, the Contractor has the right to release this Contract.

	
	 	 	 
		
44.3 		
Under the prohibited situation specified in the Article 38.2, which stipulated that the Contractor wholly subcontract the Construction to the third party, or separate this Construction to part and then subcontract such parts to other parties in the name of an employer. If
      such situation arise, the Employer has the right to release the
      Contract.

	

	 	44.4 	
      Under the following situation, both parties can release
      this Contract:

	 	(1) 	
      This Contract can not be performed due to the Force
      Majeure.

	 	 	 
	 	(2) 	
      This Contract can not be performed due to the default of
      one party (including the suspension or delay of this Construction caused
      by the Employer).

		44.5 	
      If one party requires to release this Contract according
      to the Article 44.2, 44.3 or 44.4, such party shall issue a written notice
      to its counterparty for the purpose of releasing this Contract, and inform
      such counterparty such release 7 days prior to the issuance of the
      foregoing notice, and this Contract will be released upon the receipt of
      notice . If any dispute arises from such release, such dispute shall be
      resolved in accordance with Article 37 of General Articles.

	 	 	 
		44.6 	
      Upon the release of this Contract, the Contractor shall
      protect and hand- over the completed construction, materials and
      equipments in a good manner, evacuate the Contractor’s personnel and
      uninstall its own equipment and device from the Construction Site per the
      Employer’s request. The Employer shall provide necessary condition for
      this evacuation and un-installment, pay the expense reasonable caused, and
      make the Construction Payment on a pro rata basis to the completed
      Construction as specified under the Contract. The materials and equipments
      which has already ordered shall be refunded or released by the party who
      ordered thereof, however the expense caused by material and equipment
      which can not be refunded or released shall be borne by the Employer, and
      any loss derived from untimely refunding or releasing shall be borne by
      the responsible party. Additionally, the default party shall indemnify the
      counterparty the loss caused by such release.

	 	 	 
		44.7 	
      The release of this Contract will not influence the
      settlement articles and clearance articles agreed by the
parties.

	 	 	 
	45. 	
      The Effectiveness and Termination of This
  Contract

	 	 	 
		45.1 	
      The parties agree the manner for effectuating the
      Contract.

	 	 	 
		45.2 	
      Excluding the Article 34 under the General Articles, this
      Contract will be terminated immediately upon the full performance of this
      Contract by both parties, settlement of the Construction Payment since the
      completion of the Construction and handing-over the completed Construction
      by Contractor to the Employer.

		45.3 	
      After the right and obligation of this Contract
      terminated, both parties shall comply with the good faith principle to
      perform the notice, assistance and confidentiality obligations.

	 	 	 
	46. 	
      Counterparts of This Contract

	 	 	 
		46.1 	
      This Contract has two original counterparts which has the
      same validity and be held by the Employer and the Contractor,
      respectively.

	 	 	 
		46.2 	
      The duplicates of this Contract will be specified under
      the Special Articles in accordance with the requirement of both
      parties.

	 	 	 
	47. 	
      Supplementary

	 	 	 
		
      After consistently negotiation, the parties can detail,
      supplement or modify this Contract under the Special Articles in
      accordance with related laws, regulations and the reality of the
      Construction.

Part III Particular Articles 

	I. 	Definition and Contract 
	 	 
	2. 	Contract and Interpretation Priority
    
	 	 
	  	The Contract and interpretation
      priority: please refer to the General Articles 
	 	 
	3. 	Language and Applicable Law, Norm and
      Standard 
	 	 
	  	3.1 	This Contract shall be written in Chinese.
  
	 	 	 
	  	3.2 	Applicable Law and Regulation 
	 	 	 
			The following law and regulation shall be
      expressed clearly: the Article 3 in General Articles, the Contract Law of
      the PRC, the Construction Law of the PRC, and the Regulation on Quality
      Management of Construction Project of the PRC. 
	 	 	 
		3.3 	Applicable Norm and Standard 
	 	 	 
	  	  	The name of applicable norm and standard:
      Please refer to General Articles. 
	 	 	 
	 	 	The date or time when the norm and standard
      provided by Employer: N/A 
			 
	  	  	The agreement when no related norm and standard
      exists in the PRC:  N/A 
			 
	4. 	Project Drawing 
	 	 
		4.1 	The date when the Employer provide the Project
      Drawing to the Contractor and the amount of the Project Drawings
      provided:  N/A 
	  	  	   
	 	 	The confidentiality requirement regarding the
      Project Drawing proposed by the Employer: N/A 
	  	  	
	  	  	The requirement for using foreign Project
      Drawing and the related expense: N/A 
	  	  	
	II. 	General Rights and Obligations of
      the Parties 
	 	 
	5. 	Engineer 
	 	 
	  	5.1 	Engineer designated by supervisory unit
  

	 	Name: 	Title 

	 		
      The responsibility authorized by Employer:

	 	 	 
	 		
      The responsibility can be exercised upon the approval by
      Employer:

	 	 	 
	 	5.2 	
      Engineer designated by
Employer

	 	Name: Zha Bin 	Title  On-site 
	 	Representative 	  
	 	  	  
	 	Responsibility: 	  

	6. 	
      If there is no supervision, the responsibility of the
      Engineer:

	 	 
	7. 	
      Project Manager

	 	Name: Lu Keniu 	Title  Project Manager

	8. 	
      Task of Employer

	 	 	 
		8.1 	
      The Employer shall complete the following task as per the
      time and requirement in light of the agreement the parties
  reached:

		
       

	 	(1) 	The requirement and the time for completion which can satisfied the
      Construction Site with the Construction : Prior to the Construction;
		 
	 	(2)	The time, place and supply requirement for connecting the Construction
      Site with the line for supplying water, electricity and telecommunication
      wire which is necessary to complete the Construction: Prior to the
      Construction;
		 
	 	(3) 	The time and requirement for connecting the Construction Site roadway
      with public road: Prior to the Construction;
		 
	 	(4) 	The time for providing the material in relation to the engineering
      geology and underground pipeline information of the Site;
		 
	 	(5)	The time for completing the application all necessary certificates,
      approvals and permits to the Construction, and the name of these
      certificates: Employer will apply to Program Permit, and the construction
      conductor will apply to the Construction Permit, while the Employer will
      assist with the application;
		 
	 	(6)	The requirement for delivering and examining the benchmark and
      Cartesian point of control: Prior to the Construction;
		 
	 	(7)	The time for jointly examining the drawing and delivering the design:
      Prior to the Construction;

		(8) 	Coordinate the work with respect to protection
      of the underground pipelines near the Site, the adjacent buildings and
      structures (including preserved culture relics ) and ancient and precious
      trees : N/A 
	  	  	  
		(9) 	Other business that the parties agreed to be
      conducted by the Employer: N/A 
	  	  	  
	  	8.2 	The Business Employer Entrusted to the
      Contractor: N/A 
	  	  	  
	9. 	Task of Contractor 
	  	  	  
		9.1 	The Contractor shall complete the following
      task in light of the agreed time and requirement: 
	  	  	  
		(1) 	The delivery time of the design which shall be
      completed by certain level designation qualified Contractor with a
      permitted business scope: N/A 
	  	  	  
		(2) 	The time for completion of the program, plan
      and the statement, and the name thereof : It will be provided in reliance
      on the progress of the Construction. 
	  	  	  
		(3) 	The duty and requirement for undertaking the
      safety guard and daytime lighting for the Construction: Please refer to
      General Provisions 
	  	  	  
		(4) 	The requirement for providing office venue and
      housing and related facilities to the Employer: This can be satisfied.
  
	  	  	  
		(5) 	The formalities regarding the traffic,
      environmental hygiene and construction noise management of the
      Construction Site: This will be proceed accordingly. 
	  	  	  
		(6) 	The special protection of the completed
      Construction and related fee to be born: N/A 
	  	  	  
		(7) 	The requirement regarding the work with respect
      to protection of the underground pipelines near the Site, the adjacent
      buildings and structures (including preserved culture relics ) and ancient
      and precious trees, and the fee to be born: This will be proceed
      accordingly 
	  	  	  
		(8) 	The requirement for the hygiene of the
      Construction Site: This will proceed accordingly. 
	  	  	  
		(9) 	Other business that the parties agreed to be
      conducted by the Contractor: N/A 
		 	
	III. 	Construction Organization Design
      and Project Period 

	10. 	Progress Schedule 
	 	 
		10.1 	The time for Contractor providing the
      construction organization design (Construction Program) and progress
      schedule: Prior to the Construction The Time confirmed by Engineer: Prior
      to the Construction 
	 	 	 
	  	10.2 	The requirement regarding progress schedule in
      group project: N/A 
	 	 	 
	13. 	Deferral in Project Period 
	 	 
		13.1 	The other situations regarding the deferral in
      the Project Period the parties agreed: Please refer to the General
      Articles 
	  	  	  
	IV. 	Quality and Inspection 
	 	 
	17. 	Concealed Work and Intermediate
      Inspection 
	 	 
		17.1 	The part will be intermediate inspected
      according to the parties agreement: Base and major Construction. 
	 	 	 
	19. 	Trial Run 
	 	 
	  	19.1 	The expense for trial run shall be born: N/A
  
	  	  	  
	V. 	Safety Execution 
	 	 
	  	The Construction will be executed in
      light of the Regulation on National Safety Management. If any accident
      happened or occurred, the Employer is not responsible to this accident.
  
	 
	VI. 	Contract Price and Payment
  
	 	 
	23. 	Contract Price and Adjustment 
	 	 
	  	23.1 	This Contract Price will adopt the first of the
      following manner: 
	 	 	 
	  	(1) 	Flat Price: the risk scope contained in this
      Contract Price: 
	 	 	 
	  	  	Calculation of the expense related to the risk:
      N/A 
	 	 	 
	  	  	Adjustment of the Contract Price outside the
      risk scope: N/A 
	  	  	                   
	  	(2) 	Adjustable Price: the adjustment of the
      Contract Price: N/A 

	  	(3) 	Cost add Commission: related agreement: N/A
  
	 	 	 
	  	23.2 	Other factor agreed by the Parties for
      adjusting the Contract Price: N/A 
	  	  	  
	24. 	Payment in Advance 
	 	 
		The time of the Payment in advance
      and ratio that such payment in advance to the total payment: The Employer
      will pay in advance to the Contractor RMB40 million as the
      initial Construction Payment, which will be paid prior to the
      Construction. 
	 	 
	 	The time for deducting the
      Construction Payment and the ratio: N/A 
	 	 
	25. 	Confirmation of the Quantity of the
      Construction 
	 	 
		25.1 	The time for Contractor submitting report
      regarding the completed quantity of the Construction to the Engineer:
      This will be provided depend on the progress of the
      Construction. 
	 	 	 
	26. 	Payment Terms 
	 	 
	  	The manner and time for making the
      Construction Payment: 
	 	 
		The Employer will pay the
      Contractor RMB40 million prior to the Commencement of
      Construction. 
	 	 
		The Employer will pay the
      Contractor another RMB40 million prior to the Commencement of
      second phase Construction. 
	 	 
		The Employer will fully pay the
      Contractor the Construction Payment upon the completion of the
      Construction. 
	 	 
	VII. 	Supply of Material and
      Equipment 
	 	 
	27. 	Employer will supply the material and
      equipment 
	 	 
		27.4 	If the material and equipment supplied by the
      Employer is different from the Material and Equipment Breakdowns (the
      “Breakdowns”), the Parties agreed that the Employer will responsible as
      following 
	 	 	 
	  	(1) 	The price is different from the Breakdowns: N/A
    
	 	 	 
	  	(2) 	The type, norm, scale and quality level is
      different from the Breakdowns: N/A 
	  	  	
	  	(3) 	The Contractor may replace and exchange the
      material : N/A 

	  	(4) 	The delivery place is different from the
      Breakdowns: N/A 
	 	 	 
	  	(5) 	The quantity is different from the Breakdowns:
      N/A 
	 	 	 
	  	(6) 	The delivery time is different from the
      Breakdowns: N/A 
	 	 	 
		(7) 	Settlement formula or method for the material
      and equipment supplied by the Employer 
	 	 	 
	28. 	Material and Equipment Purchased by
      the Contractor 
	 	 
		28.1 	The agreement for purchasing material and
      equipment by contractor: Please refer to the General Articles

	  	  	  
	VIII. 	Alteration of the Construction
    
	 
	  	If any alteration incurs the
      Construction will be calculated as per actual increment and
      decrement 
	  	  	  
	IX. 	Inspection for Completion and
      Settlement: Please refer to the General Articles 
	 	 
	32. 	Inspection for Completion 
	 	 
	  	32.1 	The agreement that Contractor provides the
      completion drawing : N/A 
	 	 	 
	  	32.6 	The scope for intermediate handing-over and the
      time of completion 
	  	  	  
	X. 	Default Claims and Dispute 
	 	 
	35. 	Default 	  
	 	 	 
		35.1 	
      The responsibilities regarding the default by Employer are as
      following: 

      The responsibility referred in the Article 24 under General Articles
      for the default by the Employer is : Please refer to the General
      Articles 

      The responsibility referred in the Article 26.4 under General Articles
      for the default by the Employer is Please refer to the General
      Articles 

      The responsibility referred in the Article 33.3 under General Articles
      for the default by the Employer is: Please refer to the General
      Articles 

	  	  	Other responsibilities regarding the
      default by the Employer agreed between the parties: Please refer to
      the General Articles 
	
	 	 	 
	  	35.2 	The responsibilities regarding the
      default by Contractor are as following 
	 	 	 
			The responsibility referred in the
      Article 14.2 under General Articles for the default by the Contractor is
    
	 	 	 
			The responsibility referred in the
      Article 15.1 under General Articles for the default by the Contractor is
    
	 	 	 
			Other responsibilities regarding the
      default by the Contractor agreed between the parties: 
	37. 	Dispute 
	 	 	 
		37.1 	Any disputes arose from the
      performance of this Contract shall be negotiated by the Parties, or if no
      resolution reached such dispute will be settled as the second manner of
      the following: 
	 	 	 
	  	(1) 	Submitting this dispute
      to__________for arbitration 
	 	 	 
	  	(2) 	Filing a proceeding in People Court
    
	 	 	 
	XI. 	Miscellaneous 
	 	 
	38. 	Subcontract of the Construction

	 	 
		38.1 	The Employer agree that the
      Contractor subcontract certain part of this Construction, including : N/A
    
	 	 	 
	  	  	The subcontractor is : N/A 
	 	 	 
	39. 	Force Majeure 
	 	 	 
		39.1 	The agreement the Parties made
      regarding the Force Majeure: Please refer to the General Articles
    
	 	 	 
	40. 	Insurance 
	 	 
		40.6 	The Parties agreed that the
      insurances for this Construction are as following: 
	 	 	 	 
	  	(1) 	The Employer’s insurance coverage:
      N/A 
	 	 	 
			The insurance coverage that the
      Employer entrusted the Contractor to conduct: N/A

	 	(2) 	The Contractor’s insurance coverage: Accident
      injury insurance for constructor.
	 	
       
	41. 	
      Guarantee

	 	 	 
		41.3 	
      The Parties agreed that the guarantee is as
    following

	 	 	 
	 	(1) 	The Employer provide guarantee for the performance of this Contract in
      a manner of :N/A and the guarantee contract will be attached as an
      appendix of this Contract;
		
       

	 	(2) 	The Contractor provide guarantee for the performance of this Contract
      in a manner of :N/A and the guarantee contract will be attached as an
      appendix of this Contract;
		
       

	 	(3) 	Other Guarantee the Parties agreed : N/A
	 	 	 
	42. 	
      Counterparts of This Contract

	 	 	 
		42.1 	
      The Parties agreed that this Contract has two original
      counterpart and four duplicate counterpart which all have the same
      validity.

	 	 	 
	47. 	
      Supplementary Terms

	 	 	 
		47.1 	
      The partition wall in each floor more or less changed,
      and the Construction will be executed in accordance with changed Project
      Drawings, while no fee will be further charged.

	 	 	 
		47.2 	
      The installment of the water and electricity device
      will be executed as per the requirement of the Employer, while no fee will
      be further charged.

	 	 	 
		47.3 	
      The concealed project will be executed in light of the
      Project Drawing, and the relevant expense has already contained in the
      total Construction Payment, while no fee will be further
    charged.

	 	 	 
		47.4 	
      The Contractor can not intermediately suspend the
      Construction with out proper reasons. Otherwise any deferral in the
      Project Period will arose from such suspension will be compensate 5% of
      the Construction Payment as default penalty to the
  Employer.

Schedule 1 

The Breakdowns of Project Contracted by the Contractor 

	Name of the Project 	Scale 	Size 
(Square 
Meters )
    	Structure 	Floors 	Span 	Content for 
installing the
      
equipment 	Construction 
Payment (¥)
	Commencement 
Date 	Completion 
Date 
	Hongri 
Industry Park 		107,618.7 	Frame work 	Refer to the Drawing 			118,380,570.00 	31/10/2010 	31/12/2012 
	Production 
Facility and 
Warehouse
    		42,656 							
	Office Venue 		7,295.5 							
	Research and Development 
Center 		9,496 							
	Dormitory 
Building 		46,038 							
	Cafeteria 		2,133.2 							

Schedule 2 

Breakdowns of Material and Equipment Provided by the Employer

	No 	Type of the Material and
      Equipment 	Scale 	Unit 	Quantity 	Price 	Quality Level 	Supply Time 	Delivery Place 	Note 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

Schedule 3 

Quality Warranty for Property Construction 

Employer (Full Name): Hongri (Fujian) Sporting Goods Co., Ltd

Contractor (Full Name): Anqing Zhongfang Construction and
Installment Project Co., Ltd 

The Employer and the Contractor enter into this quality
warranty letter (the “Quality Warranty”) with respect to the Hongri Industry
Park after full negotiation and in accordance with the Construction Law of
the PRC, Regulation on Quality Management of Constructing Project,
and the Warranty Approach for the Quality of Housing Construction .

1. Scope and Content of Project Quality
Warranty

Within the Quality Warranty period, the
Contractor undertakes the obligation for this Project Quality Warranty, in
accordance with the laws, regulations and bylaws and management rules and the
agreement between the parties. 

The scope of the Quality Warranty
including the basic project of groundwork, major structure project, roofing
project, washroom with requirement for waterproof, antiseep of the room and the
outside wall, heating and cooling system, electricity wire and gas pipeline,
road for drainage and feedwater piping, equipment installment and decoration
project and other project agreed by the parties. The detail of this Quality
Warranty are set forth as
following:

__________________________________________________________________________________________________

2. Period for Quality Warranty 

The parties agree, in light of the Regulation on Quality
Management of Constructing Project, the following period for Quality
Warranty (the “Period”):

	 	1) 	
      The Period for basic project of groundwork and the major
      structure project is the reasonable using term specified under the design
      documentations of this Project;

	 	 	 
	 	2) 	
      The Period for roofing project, washroom with requirement
      for waterproof and antiseep of the room and the outside wall is 5
    years

	 	  	3) 	The Period for decoration project is 2 years
  
	 	  	  	  
			4) 	The Period for electricity wire and gas
      pipeline, road for drainage and feedwater piping and equipment installment
      is 2 years 
	 	  	  	  
	 	  	5) 	The Period for heating and cooling system is
      N/A 
	 	  	  	  
			6) 	The Period for road for drainage and feedwater
      piping and corresponding the public roadway of the community is N/A 
	 	  	  	  
	 	  	7) 	The Period for others is N/A 
	 	  	  	  
	
    The Period is calculated since the date when the Project
      satisfied with the inspection of the completion. 

	 	  	  	  
	 	3. 	The Responsibility of the Quality
      Warranty 
	 	  	  	  
			1) 	If a matter is contained in the Scope and
      Content of the Quality Warranty, the Contractor shall designate certain
      individual to undertake the repair within 7 days upon the receipt of the
      notice for warranty. If the Contractor fail to perform this obligation in
      the specified period, the Employer can entrust the third party for
      repairing. 
	 	  	  	  
			2) 	If any emergency incurs, which need immediate
      repair and maintenance, the Contractor shall immediately reach on site for
      emergency repairing upon be notified. 
	 	  	  	  
			3) 	As to the quality problem which is involved
      with structure safety, in light of the Warranty Approach for the
      Quality of Housing Construction, , that shall be immediately reported
      to local administration who takes charge of the construction and safety
      measure shall be adopted,; and the original designer or the equivalent who
      has corresponding qualification shall carry out the repair scheme, while
      the Contractor undertake the repair and maintenance. 
	 	  	  	  
			4) 	The Employer will inspect the repair and
      maintenance upon the completion thereof. 
		 		
	 	4. 	The Expense for Warranty 
	 	  	  	  
	
    The expense for warranty shall be born by the
      party who can be claimed for the quality default. 

	 	 	 
	 	5. 	Miscellaneous 
	 	  	  	  
	
    Other matter in relation to this quality warranty is: N/A
  

This Quality Warranty will be
collectively signed by the Employer and the Contractor prior to the completion
of this Project and as the appendix of Construction Contract, with a effective
term to the expiration of the Period.

	 	The Employer 	The Contractor 
	 	Legal Representative: Yan Keyan 	Legal Representative 
	 	November 20th 2010

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