Document:

China Expert Technology, Inc.: Exhibit 10.39 - Prepared by TNT Filings
Inc.

 

Electronic Business Construction Project 

of Dehua County

 

Main Contract

 

	
  
  Appointer (Party A):

	
  
  Fujian Province Dehua County E-Government  

  Construction Project Management Company 

  Limited  

	
   
	 
	
  
  Appointee (Party B):

	
  
  Expert Network (Shenzhen) Company Limited

	
   
	 
	
  
  Execution time:

	
  
  March 5, 2006

	
   
	 
	
  
  Execution Place:

	
  
  Dehua County, Fujian Province

1

Party A formally appoints Party B to
undertake the main contract of Dehau Electronic Business Construction Project.
According to the Contract Law of the People's Republic of China and the other
relevant laws, regulations and rules, following the principals of equality, voluntariness and good faith, upon consultation both Party A and Party B have
reached the following terms for both Parties to obey. 

Clause One        
Definitions, Enactment and Regulations 

1.    
Definitions 

The following words and expressions
shall have the meaning hereby assigned to them unless stated otherwise:- 

1.    
"Project" means the Electronic Business Construction Project of Dehau County
entrusted to Party B by Party A as a main contractor. 

2.    
"Party A" means the body designated by the Municipal government of Dehau County
to assume the direct investment responsibility and to appoint contractor for the
project. i.e. Fujian Province Dehua County E-Government Construction Project
Management Company Limited of "Party B" means the contractor of the project,
i.e. Expert Network (Shenzhen) Company Limited 

3.    
"Supervisor" means the person or company appointed to supervise the Project. 

4.    
"Sub-contractors" means a person or company who execute the individual items of
the Project. 

2.    
Laws and Regulations 

This Contract is
governed by "Contract Law of the People's Republic of China" and current laws
and regulations of China. 

3.    
The Applicable Regulations, Standard and Stipulates 

1.    
The People's Republic of China Computer Information Network International
Networking Management Temporary Stipulates (Ministry of National Affairs PRC
10/7/1999) 

2

2.     The
Computer Information Network International Networking Security Management
Stipulates (Ministry of Public Security PRC 12/30/1997) 

3.     Computer
Information Network International Networking Safe Protection Policing Method 

4.     Guide to
Computer Software Requirements Specifications GB/T9385-1988 

5.     Computer
Software Test Reference System Standard GB/T9386/1988 

6.     Computer
Software Product Development reference System Guide GB/T8567-1988 

7.    
Information Technology Software Production Evaluation ISO/IEC14598 

8.     Standard
for Software Project Management Plans IEEE/1058-1998 

9.     Standard
for Software Safety Plans IEEE/1228-1994 

10.   The
People's Republic of China Country Standard GB17895-1999, Computer Information
System Safe Protection Rank Division Criterion 

11.   
The People's Republic of China Country Standard GB49435-1995, Safety of
Information Technology Equipment. 

Clause Two        
Specifications of Project 

The Project that Party A entrusted to Party B includes hardware platform,
electronic business application platform software, electronic business safety
protection system, electronic business application system (includes electronic
business mall, corporate ERP system) items. Party B assumes the duties of
purchasing, installing, integrating, testing, maintaining and developing of
related materials and equipment (including hardware and software) as well as
training and other works that is necessary for the normal implementation,
testing and operation of the system, albeit not explicitly stated in this
Contract. For detail specifications of the Project see the Addendum in this
Contract and the content of the technology proposal approved by Party A. Party A
shall appoint professional information technology supervising company (the
Supervisor) to perform supervisory work on the Project. Party B shall comply
with the supervision of the Supervisor and the rights and obligations of the
Supervisor shall be governed by the relevant national supervisory stipulates as
well as the terms and conditions in the contract signed between Party A and the
Supervisor. Party B shall organize the implementation of work in the Project
with due diligence and assume full responsibility for the completion of the
entire Project. 

3

Clause Three        
Status Quo of the Project 

1.     The
Project is situated in Dehau County, Fujian Province. 

2.    
Before the Project starts, B shall have full understanding of the condition of
Party A, and shall have taken into considerations those factors that might
affect the construction of the Project and prepared corresponding solutions. 

3.    
Party B shall make all necessary preparations before the construction starts,
including organizing construction workers, setting up Project items
implementation plans with suppliers, and providing basic working and living
conditions for its workers. 

Clause Four        
Time for Completion Progress Management and Modification of Project Schedule 

1.    
The Contract shall be commenced on March 15, 2005 and finish the final testing
on December 31, 2006. The overall construction period last for 10 months
starting from the commencement date until the date the Project is completed and
passed the acceptance check. This duration represented the total duration for
the completion of the entire Dehau Electronic Business Construction Project. 

2.     Party B
shall adopt system construction management for the Project, observe Party A's
construction schedule and shall not delay or make additional requirement
unreasonably so as to assure that the Project will be completed as scheduled.

4

3.    
The construction period encompasses time for construction preparation, selection
of suppliers, system installation, development and testing, and acceptance check
of the whole Project upon completion of construction. 

4.    
Once the implementation plan and Project schedule are agreed by Party A, they
shall be strictly observed by Party B and shall not be altered at will. 

5.    
If the Project is delayed without Party B's default, Party A shall coordinate
actively with Party B under the actual conditions so as to ensure that the
Project is completed as scheduled. For the works in each phase of construction,
Party B shall provide detailed work plan and implement such plan under the
integrated coordination from Party A and the Supervisor. 

6.    
If Party B is unable to complete the works as scheduled for the current month
due to its own reason, then it shall take effective measures to ensure that the
remaining works are finished together with those works of next month; otherwise,
Party B shall assume full liability and compensate Party A for the resulting
economic loss. 

7.    
The Project schedule can be adjusted after it is approved by Party A under any
of the following circumstances: (1) Major design alterations (i.e. system
function alterations, increase or decrease in numbers of major equipments,
Project items adjustment or alterations taking place in key circuits as are
requested by A. (2) Force majeure (3) Other circumstances as are stated in this
Contract. Party B shall report in writing to Party A about the detail of delay
within three days of the occurrence of the above circumstances. Party A shall
then reply within five days after it has received the reports. 

8.    
Party B shall bear full responsibility for inability to complete the Project as
scheduled if it is due to Party B's default. 

9.    
Party A shall bear responsibility for the Project's delay caused by its own
default. 

5

10.    The
Supervisor shall bear responsibility for the Project's delay caused by its own
default 

Clause Five        
Delay of Commencement Date and Construction Suspension 

1.    
If Party A proposes to postpone the commencement of works before the certificate
for the commencement of works is issued by Party A and the Supervisor, then it
shall notify Party B in writing, extend the construction period accordingly and
assume corresponding responsibilities. 

2.    
If Party B is unable to start the Project as scheduled before the certificate
for the commencement of works is issued by Party A and the Supervisor, it shall
submit 5 days written notice in advance to Party A for its approval of such
delay and shall assume corresponding responsibilities. 

3.    
Party A's representative can request B to suspend the construction if he/she
deems it necessary and provide opinion for further handling the project within
48 hours. Party B shall suspend the construction as requested by Party A, and
shall safeguard the already completed portion of the Project. If the suspension
is not caused by the default of Party A nor Party B, then the defaulting party
shall assume the relevant liability. 

4.    
If the Project is suspended due to default of Party B, then Party B shall assume
the responsibility. If the Project is suspended due to default of Party A, then
Party B shall assume the responsibilities. 

Clause Six        
Rights and Obligations of Party A and Party B 

1.     Party A
has the right to select the Supervisor and to sign supervising contract with it.

2.    
Party A has the right to examines and approves the construction reports, design
alteration, alteration of the Project and construction schedule adjustments
submitted by Party B and handle the matter regarding payment of the construction
money. 

6

3.    
Party A has the right to demand Party B to provide monthly working report and
other specific reports concerning the Project's construction. 

4.    
In case Party A finds that Party B's employees are unable to fulfill their
corresponding responsibilities, Party A has the right to request Party B to
replace them until the end of this Contract and to request Party B to assume the
relevant liability for damages. 

5.    
Party A shall make the down payment to B before the commencement of the
Project's construction works and shall make payment according to the progress of
the Project. 

6.    
Party A shall be responsible for external liaison and coordination works during
the construction period of the Project so as to provide a good environment for
the Project's construction. In the event that part or the entire coordination
works need to be entrusted to Party B, then additional provision shall be added
in this Contract to expressly state the exact works assigned and the
corresponding remuneration. 

7.    
Party A shall provide Party B with the documents related to the Project free of
charge within the time agreed upon by both Parties. 

8.    
Party A shall provide all decisions in writing within the time agreed upon by
both Parties whenever such decision is required in writing by Party B. 

9.    
Party A shall authorize a representative who is familiar with the Project and
able to make decision on behalf of Party A within the scheduled time to
communicate with Party B. Notice shall be given to Party B prior to the
replacement of the representative. 

10.   
Party A shall notify the selected Supervisor in writing about the authorized
rights of Party B and the duties, division of labor and functioning capacities
of each major member of Party B. All these shall be clearly stated in the
contract to be signed with the Supervisor. 

11.   
Party A shall fulfill all the obligations stated in this Contract and is liable
to compensate Party B's economic loss when in default. During the process of the
construction of the Project, Party B shall has the right to seek compensation
from Party A for all damages that is not caused by the default of Party B. 

7

12.   
If Party A's claim to Party B for compensation is dismissed, then Party A shall
indemnify Party B for the costs and expenses incurred due to such claim.

13.   
Party A shall observe other rights and obligations stipulated in this Contract.

B Rights and obligations of Party B 

1.    
Party B confirms that it has full understanding of the conditions and
circumstances of the construction site of the Project and guarantees to complete
the project within pre-set time and meet the pre-set quality standards
simultaneously without additional expenditure, unless otherwise stated in this
Contract. 

2.     Party B
shall propose construction implementation plan of the Project and implement such
plan upon the approval of Party A and the Supervisor. 

3.    
Party B shall work out construction implementation and design plans and
construction schedule, and execute such plans after the submitted written
reports have been approved by Party A. 

4.     Party B
shall select superb suppliers to provide software and hardware systems required
by the construction of the Project 

5.     Party B
shall be responsible for the organization, construction, managementA
coordination and implementation of the
entire Project. 

6.    
Party B shall designate a site manager to be responsible for the overall work of
the construction site, and to handle events arising on the construction site in
accordance with this Contract. The site manager or his/her authorized
representative shall participate in the Project's coordination meeting convened
by Party A or the Supervisor, and shall make decisions on behalf of Party B and
follow instructions from Party A or the Supervisor. 

7.     Party B
shall perform self-inspection and cable layout covering work. The commencement
of the cable layout covering work, its acceptance check and final covering shall
be reported to Party A in advance. Records of the original construction work,
collection and arrangement of the cable layout covering work must be taken in
order to ensure the Project's quality. All liabilities and the corresponding
additional expenses that are caused by Party B's default shall be borne by Party
B. 

8

8.    
Party B shall manage construction safety according to the requirements of the
construction safety norms, set up on-site lighting and fencing as is needed to
prevent accidents and to safeguard lives and properties of the on-site
personnel. When accidents take place, they have to be handled actively (Party B
bears all the expenses so arise) and be reported in writing to Party A and the
Supervisor. 

9.    
Party B shall submit monthly construction schedules and monthly progress reports
of the Project to Party A and the Supervisor. 

10.   Party
B shall accept monitoring and inspection of Party A's on-site management
personnel and the Supervisor and facilitates for such daily inspection. 

11.   
Starting from the time when the whole Project is completed, acceptance check is
passed, and the completed Project is delivered to Party A, Party B shall be
responsible for the maintenance of the Project pursuant to the relevant
requirement. During this warranty period, if any quality issue arises, Party B
shall be responsible for the resulting expenses. If the need for repair is
caused by Party A's usage or management, then Party A shall be responsible for
the expenses. 

12.   
Upon the request of Party A and the Supervisor, Party B shall submit technical
information within the scope of the Project to Party A during the construction
period of the Project. Such information shall be arranged as required and be
used for the compilation of information about Project's completion. 

13.   
Party B shall clean the construction site for trash (including inside of
building) and dismantles all temporary facilities (follow Party A's
instructions) and transports them to a place designated by Party A so that they
will be moved out of the site together. 

9

14.   
Party B shall prepare well for the coordination with other professional
sub-contractors. 

15.   
Party B shall complete all formalities and certificates in relation to the
Project and bears all the related costs. 

16.   
Party B shall be held liable for all quality problems, construction delay,
damage to personnel and properties and economic losses caused by Party B's
failure to fulfill the above obligations and shall compensate Party A for the
resulting economic losses. 

17.   
Party B shall have the responsibility and obligation to safeguard the technical
confidentiality of the Project and shall not provide any materials or documents
relating to the Project to any other party without the consent of Party A. 

18.   
Party B shall maintain the system during its trial operation and warranty
period. 

19.   
Party B shall provide the entire set of documents mentioned in this Contract.

20.   
Party B shall provide adequate professional training in relation to the Project.

21.   
Party B shall provide the completed system that satisfy Party A's requirements

22.   
Party B shall observe other rights and obligations stipulated in this Contract

Clause Seven        
Project Price, Contracting Method, and Price Adjustment 

1.    
The total sum of this Contract (including hardware, software, installation,
testing and trainings, etc.) is RMB Ninety Six Million Yuan. (¥96,000,000.00).
Pricing for each individual item is stated in the addendum. The above price is
Dehau construction site price, and encompasses all fees and taxes required by
the China and all local government authorities. 

2.    
Contracting method: main contracting, with guarantees of quality and works to be
completed within the specified construction period. Project alterations are to
be handled according to relevant provisions of this Contract. 

10

3.    
If changing needs of Party A result in the increase in the number of hardware
equipments and increase in software expenditures, a supplementary contract will
be signed between Party A and Party B after mutual consultation to deal with the
increased cost and the increased cost shall be borne by Party A. 

4.    
Party B has considered and agreed to assume the risks resulted from the
fluctuation of salary, Project management costs and equipment prices during the
Project construction period and shall not make any new demand. 

5.    
Unless otherwise agreed, all direct costs resulting from the Project and other
costs related to the Project are regarded as being included in the Project price
of this Contract. 

Clause Eight     Payment and Settlement
Methods 

1.    
5% of the total Project Price shall be reserved as deposit for the Project's
warranty. 

2.    
Payment for the Project Price 

The working capital to start the construction work of
the Project shall be paid by Party B in advance. 

The first payment of Party A's
Electronic Business Construction Project, i.e. 50% of the total Project Price in
the amount of RMB Forty Eight Million yuan (¥48,000,000.00), shall be paid by
Party B in advance. 

Party A shall pay to Party B the said
first payment, i.e. 50% of the total Project Price i.e RMB Forty Eight Million
yuan (¥48,000,000.00) after the delivery of all the hardware of the Electronic
Business and the passing of the acceptance check. 

11

Party A shall pay Party B 45% of the
total Project Price, i.e RMB Forty Three Million and Two Hundred Thousand yuan
(¥43,200,000.00) within 5 business days after the passing of the complete trial
run and acceptance check of the Project. 

Party A shall pay the 5% deposit for
Project's warranty in the amount of RMB Four Million and Eight Hundred Thousand
yuan (¥4,800,000.00) at one go within 5 business days after the end of the one
year warranty period which shall start upon the completion of the whole Project
and the passing of the acceptance check. 

Clause Nine        
Project Modifications 

1.    
If Party A needs to modify the contents of the Project, a written notice shall
be sent to Party B 5 days in advance and Party B shall implement the
modification according to the modification notice sent by the Supervisor. 

2.    
If Party B finds that there is a need to modify the Project (design, equipment,
construction implementation organization, or personnel change) during the course
of construction, or finds any errors or un-clarified issues about the technical
information, then Party B shall deliver a written notice to Party A and the
Supervisor. Then Party A together with the Supervisor shall make decision
accordingly within 5 business days. 

Clause Ten        
Project Progress Verification and Confirmation 

Party B shall submit monthly reports on the amount of the
completed works of the Project to the Supervisor at the end of each month and
the Supervisor shall transmit to Party A after verifying them and notify Party
B. 

12

Clause Eleven        
Construction Safety 

1.    
Party B shall conduct safety education and make safety protection (including
equipping personal protection gears for its personnel) according to the related
regulations to ensure construction and personnel safety. In the event that
accident happens, Party B shall take active and effective measures to prevent
the escalation of loss and shall be held liable for all the losses so incurred.
When serious fatal accidents and injuries take place, Party B shall report in
writing to Party A, the Supervisor and related authorities according to the
relevant regulations of China and Dehua County. 

2.    
If Party A finds that Party B's safety measures are inadequate or that safety
facilities are insufficient, then it can demands Party B to amend within a time
limit. If they still cannot meet safety requirements after the time limit, then
Party A shall have the right to demand suspension of the construction work of
the Project, and Party B shall bear the resulting loss. 

3.    
During the construction period of the Project, Party B shall take good care of
Party A's premises, fixtures, office utilities, equipment, materials, pipelines
and shall adopt necessary protection measures. Party B shall bear all the
resulting losses if any losses are caused by its default. 

4.    
If the Project requires Party B to pile up or process equipment on the site, it
must first obtain approval in advance from Party A. Party B shall bear all the
liabilities and all the resulting losses if any losses are caused by its
default. 

Clause Twelve     Delivery of Materials
and Equipments and Delivery Conditions 

1.    
Party B guarantees that all hardware equipments within the scope of this
Contract are brand new (including parts) and the related equipments are in
conformity to the national inspection standards, and that all materials and
equipments of the project are in compliance with the types and standards as
required by the stipulates, design plans and functionalities of the system.
Party B further guarantees that all equipments and materials it purchases
possess related certificates and networking
credentials stipulated by China or the government authorities that manage the
relevant professions. 

13

2.     All
imported equipments delivered by Party B shall possess legal import papers and
possess qualification certificates issued by China Customs Inspection. 

3.     The
delivery dates and installation of all equipments shall meet the requirements
for the completion of the whole Project. 

4.    
Party B shall provide warranty for the Project. During the warranty period all
the quality problems that are not caused by the default of Party A shall be the
responsibility of Party B. Party B shall also be responsible for the repair,
replacement or return of the faulty system and bear the resulting expenses. 

5.    
Destination of delivery of all hardware is the Electronic Business network
management center of Dehau County. 

6.    
Party B shall deliver the complete sets of documents (including warranty
certificate, manuals and relevant documents) to Party A along with the
equipments, as well as spare parts and software that accompany the equipments.

7.    
The equipments Party B uses in the Project shall be in accordance with the
brands, models, specifications and manufacturing places as listed in the
equipment list. They shall be qualified products of original manufacturers, and
can only be installed after having been inspected as qualified. Non-OEM
qualified products are regarded as non-eligible for delivery. 

8.    
Party B shall notify Party A of equipment delivery 24 hours in advance for
quality inspection. Those equipments that do not meet the requirements shall be
transported out of the site unconditionally and Party B shall purchase other
products that meet the requirements to replace them. Party B shall bear all the
resulting expenses, and compensate Party A for the actual resulted loss. 

9.    
If Party B uses substitution for software and hardware systems that are
stipulated in the bidding proposal, they shall first be examined and approved by
the Supervisor and to be approved in writing by Party A thereafter. The
properties of the substitutes shall meet the requirements of the design but
shall not mitigate Party B of any obligations designated in this Contract. 

14

Clause Thirteen        
Installation, Development, Testing, Trial Running and Acceptance Check of
Software and Hardware Systems 

Party B shall provide the "Detailed Technology Plans" and "System
Implementation Plans" of all individual items of the Project to be approved by
Party A and the Supervisor. Installation and development of software and
hardware systems can only be started after their approval. 

1.     Arrival
of hardware equipments and acceptance check 

After the arrival of hardware
equipments on the construction site, Party A, Party B and the Supervisor shall
open the packages together within 5 business days for counting of items and
examine them. The models and quantity of the delivered equipments shall be in
accordance with those specified in this Contract. If there are changes in
models, the features of the new models shall not be worse than those of the
originally required products, and such changes shall first be approved in
advance by Party A and the Supervisor. After the examination on delivery, Party
A, the Supervisor and Party B shall sign acceptance reports for the delivered
products. 

2.    
Installation, testing, acceptance check, and trial running of hardware system

Party B shall propose a preliminary
installation plan 10 days before the hardware system installation of the Project
and Party B shall begin the installation after receiving confirmation from Party
A and the Supervisor (such confirmation shall be provided within 5 business
days). After the installation and testing of each sub-system, Party B shall
submit acceptance check application report to Party A and the Supervisor. Party
A, the Supervisor together with Party B shall then start the acceptance check
within 5 business days and shall sign acceptance check report if the acceptance
check is satisfactory. If due to Party A or the Supervisor's default that the
acceptance check cannot be perform in time which leads to the Project's schedule
being delayed, the construction period of the Project shall be extended
accordingly. If the resulting loss to Party B is more substantial, Party A shall
compensate for such loss and Party B shall negotiate with Party A or the
Supervisor for the details of such compensation. If it is Party B's default
which causes the inability to perform the acceptance check in time and the
Project's schedule is delayed, Party B shall pay penalty for breach of contract
according to the relevant provision of this Contract. 

15

After the completion of equipment
installation, testing and system integration, Party B shall conduct
self-inspection, submits the resulted inspection report and relevant completion
documents of the Project, and apply to the Supervisor for hardware system
preliminary inspection. After the passing of the preliminary inspection, the
system can enter into the trial running period. 

After the completion of installation
and testing of all the hardware equipments and the trial running has been
continued for 10 consecutive business days, Party A together with Party B and
the Supervisor shall conduct internal inspection on the hardware system within 5
business days. 

Party B shall guarantee that the
hardware purchasing, installation, testing, trial running, perfection,
acceptance checking and training are all completed within the hardware system
working cycle as stipulated in the bidding proposal. 

3.    
Development, testing, acceptance check, and trial running of application
software systems 

16

Party B shall submit the software
requirement analysis reports, design manuals, testing reports, operation
reports, user manuals, maintenance manuals and other documents at each stage,
and shall enter the next stage after examination by the Supervisor and approval
by Party A. 

During the developing cycle of each application
system, Party B shall complete the developing and testing of the software for
each application system. After the system has been installed, Party A together
with Party B and the Supervisor shall conduct preliminary inspection of the
system within 5 business days, and it shall be put into trial running only if
the preliminary inspection is satisfactory. After the application system has
been trial-run for 30 days, Party A and the Supervisor shall jointly propose any
modification and perfection suggestions in writing to Party B. Party B shall
finish such modification and perfection of the system software within 30 days
and apply to Party A and the Supervisor for acceptance check of the system.
Party A together with Party B and the Supervisor shall conduct the preliminary
internal acceptance check on the software system within 5 business days. 

B shall guarantee the completion of
software development, testing, trial running, perfection, installation, training
and acceptance check for each application system working cycle as stated in the
bidding proposal. 

4.    
Preliminary acceptance check of the whole system 

After the successful integration of
the software and hardware system and passing of the internal acceptance check,
Party B shall apply to Party A for preliminary acceptance check on the whole
system and the Supervisor shall produce a preliminary acceptance check report on
the whole system. 

17

5.     Trial
running of the whole system 

The whole system shall only be put
into full trial running after Party A and the Supervisor have approved and
signed the preliminary acceptance check report for the whole system. After each
system has been trial-run and met the design requirements and has been in stable
operation for 30 days, Party B shall apply in writing for the whole Project
completion acceptance check. 

6.     Whole
project completion acceptance check 

Party A and the Supervisor shall organize an expert
group to conduct the whole Project completion acceptance check according to the
standards for construction quality inspection and Project completion acceptance
check. Party A, the Supervisor and the expert group shall jointly produce a
"certificate of Whole Project completion
acceptance check" after the whole project is completed and after it has met the
standards for the whole project completion acceptance check. Then the whole
Project completion acceptance check stage is finished. 

Party B shall guarantee that the whole Project is
completed within the Project's construction cycle as stipulated in the bidding
proposal. 

7.     Transfer
of the Project and accompanying documents 

Party B shall transfer the whole project and all the
software and accompanying documents to Party A under the witness of the
Supervisor. 

Clause Fourteen        
Standards for Project Completion Acceptance Check 

18

1.     The
Project shall conform to relevant laws, regulations, standards and stipulates
proclaimed by China and other government authorities in charge of the
profession. 

2.    
The Project shall be able to operate in stable and normal manners without
additional materials, equipments, parts or software, and can reasonably satisfy
Party A, the Supervisor and the relevant government departments. 

Clause Fifteen         Warranty,
After-sales Services and Technical support of the Project 

1.    
Party B shall provide warranty to the Project starting from the day the Project
is delivered to Party A after the passing of the whole Project completion
acceptance check. The warranty scope shall follow the relevant provisions in the
bidding proposal and this Contract. 

2.     The
warranty period shall last for one year, starting from the day of the passing of
the Project completion acceptance check. 

3.    
During the warranty period, Party B shall send staff to repair within 24 hours
after receiving notice of repair from Party A, otherwise Party A shall perform
the repair on its own and Party B shall then be liable to all the resulting
expenses as well as loss. 

4.    
During the initial usage period (no more then 30 days), Party B shall send
qualified and experienced technicians to stay on-site to handle emerging
problems on-time. 

5.    
For quality defects of the Project occur during or before the warranty period
which are caused by Party B's failure to comply with the provisions of this
Contract, Party B is responsible for the repair, the resulting costs and assumes
all liabilities. The said costs of repair shall be born by the defaulting party
upon confirmation of the cause of the defects. 

19

6.    
The technical supports and maintenance services provided by Party B during the
free warranty period shall be quick in responding. For failures of Party A's
system, Party B's technicians shall arrive at the site within 12 hours and solve
the problem in the quickest manner. In order to restore the normal operation of
the system, the problem must be solved within 24 hours or substituting products
must be used. 

7.     Party B
shall set up specialized technical service providing body to ensure quick
response speed and god service quality. 

8.    
Party B may continue to provide maintenance service with Party A's consent after
the free warranty period expire with separate maintenance contract to be
executed by both Parties. 

9.     The
following cases are not covered by the free warranty service: 

a: damages due to abuse, negligence
and accident of Party A's personnel; 

b: Party A's personnel replace or
repair major equipments or software of the system without Party B's consent; 

c: damages caused by force majeure.

For repairing damages in the above
cases, charges will be collect by Party B based on the condition of damages. 

10.   Free warranty
service and technical support cover hardware and software products provided to
Party A by Party B. 

11.   As
requested by Party A, the technology documents shall be in detail, easy to learn
and satisfy the operation needs of the installation and maintenance personnel.

12.   Party B shall
provide free technical support during the warranty period. 

20

13. When problems of the system arise, Party B shall first solve the problem
and then find out which party shall be liable. 

14. For other terms of service see the bidding proposal submitted by Party B:
Electronic Business Construction Project (Phase 1) Bidding Proposal. 

Clause Sixteen        
Training 

In accordance with the requirement of bidding proposal, Party
B promises to provide on site technical training to Party A. The training shall
be of quality, and can be provided either by the OEMs, Party B or the
sub-contractors. 

Clause Seventeen        
Force Majeure 

When incidents beyond the control of human beings such as
natural disasters, wars, earthquakes, unexpected incidents, or governmental
acts, etc take place, Party B shall take active measures to minimize the loss,
and shall report timely all the losses incurred and the costs of repair. Damages
to the Project shall be born by Party A, while personnel casualties, damages to
equipments and losses due to construction suspension of Party B will be born by
Party B. 

If force majeure results in delayed execution or inability of
complete execution of this Contract, then both Parties shall consult each other
to decide whether to continue fulfilling this Contract or not. 

Clause Eighteen        
Default Liabilities 

B's Default Liabilities: 

21

1.
    Party B shall bear default liabilities
for loss of Party A which are caused by Party B's breach of contract and shall
compensate A for the loss and expenses so incurred. 

2.
    If the construction of the Project can
not be completed according to the construction schedule of the Project specified
in this Contract due to Party B's default, then Party B shall pay to Party A
0.5% of the total amount of the Project price as breach of this Contract penalty
for each business day of delay, with the total amount of breach of this Contract
penalty shall not exceed 1% of the total amount of the Project price. 

3.
    If Party B is unable to deliver the
system as required, besides returning to Party A the 25% payment in advance,
Party B shall also pay as breach of this Contract penalty 10% of the total costs
of the equipments. 

4.
    If Party B is unable to satisfactorily
fulfill the after-sales service clauses relevant service requirements and
training requirement as stipulated in this Contract, and still fails to fulfill
the said requirements in accordance with this Contract after receiving written
notice from Party A, then Party A shall be entitled to claim compensation from
Party B in proportional to the loss it suffered. 

5.
    If the types, models, specifications,
quality or quantity of the hardware equipments delivered by Party B do not
conform to the requirements in this Contract, then Party A shall have the right
to refuse accepting the goods, and Party B shall be deemed to be unable to
deliver the equipments. 

6.    
If Party B is unable to fulfill this Contract or to meet the technical
requirements or system functions as agreed upon by both Parties and Party B
continues to fail to fulfill the said requirements in accordance with this
Contract after receiving written notice from Party A, then Party A shall be
entitled to demand Party B to terminate the Project, stop paying for all the
payment that is payable after the date of
such termination and claim against Party B breach of this Contract penalty in
the amount of 20% of the total Project Price together with other economic loss
that Party A suffered. 

22

A's Default Liabilities: 

1.   
 Party A shall bear default liability for the
loss of Party B caused by Party A's default, bear the resulting costs and
postpone the construction period accordingly. 

2.   
 If Party A demands returning of goods due to
its own default then Party A shall pay to Party B 20% of the value of the goods
returned as breach of this Contract penalty. 

3.
    If the Project cannot be completed as
scheduled in this Contract due to the default of Party A or the Supervisor
appointed by Party A and loss of Party B is resulted, then the default party
shall pay to Party B 0.5% of the total Project Price as breach of this Contract
penalty for each business day of delay, but the total amount of the breach of
contract damages shall not exceed 10% of the total Project Price. 

4.
    If Party A is unable to make payment to
Party B on time as stipulated in this Contract, and if material loss of Party B
is resulted, then Party A shall make discretionary compensation to Party B in
accordance with the condition of loss but in no event the amount of compensation
be exceed 10% of the total Project Price. 

Common Clause: 

1.    
Payment for breach of this Contract penalty shall not exempt the obligations of
both Parties to continue fulfilling this Contract. 

2.    
The Party who terminates this Contract without justifications shall be 
responsible to compensate the other Party for all
the economic losses incurred, and shall also bear related legal liabilities.

23

Clause Nineteen        
Alterations and Cancellation of the contract 

Neither party can alter or cancel this Contract unilaterally.
Alterations or cancellation of this Contract shall be negotiated by both
Parties, be recorded in writing, and shall take effect only after having been
signed by the authorized representatives of both Parties. These written records
shall constitute part of this Contract and possess identical legal effect. 

Clause Twenty        
Termination of Contract 

1.
    If any Party breaches this Contract and
causes it to be unable to be fulfilled further, then the other Party shall be
entitled to notify its counterpart that this Contract shall be terminated, to
demand the defaulting Party to bear all the default liabilities and compensate
for all the resulted economic losses. 

2.
    If Party A does not make any payment in
accordance with this Contract or compensate Party B for any losses it suffered
so that legal action shall be instituted, Party B shall send letter of claim to
Party A within 15 days and Party A shall reply to such letter of claim within 15
days after receiving it. If Party A fails to reply within 15 days then Party B's
claims shall be deemed approved by Party A and be enforceable immediately. 

3.
    If Party B does not comply with any
provisions of this Contract and causes Party A to suffer economic loss or the
construction scheduled being delayed so that legal action shall be instituted,
Party A shall send letter of claim to Party B within 15 days and Party B shall
reply to such letter of claim within 15 days after receiving it. If Party B
fails to reply within 15 days then Party A's claims shall be deemed agreed by
Party A and be enforceable immediately. 

24

Clause Twenty-one        
Resolution of Disputes 

If the two Parties have disputes on explanation or execution of clauses of
this Contract, or on issues related to the Project, then friendly consultation
shall be pursued within 15 days of the dispute so arises. If the consultation
fails, arbitration conducted by an arbitrating unit mutually agreed by both
Parties shall be hold in accordance with the applicable regulations. Any dispute
to the result of the arbitration shall be solved by litigation instituted in the
People's court. All the costs and expenses incurred from the above events shall
be borne by the losing Party. If dispute relating to the quality issue arises,
adjudication as to the quality in dispute shall be conducted by the technical
unit appointed by the national and local government. The result of such
adjudication shall be final and both Parties shall accept. 

Clause Twenty-two        
Miscellaneous 

1.    
This Contract does not allow the transfer of the entire Project. Party B's
responsibilities obligations under this Contract shall not be transferred after
Party B has chosen its sub-contractors; 

2.    
For issues that this Contract does not address, both Parties are to consult with
each other to resolve. If other clauses or supplementary materials need to be
supplemented during the execution of this Contract, then mutual agreement from
both Parties shall be agreed and signed. The signed supplementary agreement
possesses identical legal effect as this Contract. 

3.    
Addendum of this Contract is the integral part of this Contract. 

4.    
If the terms of the Addendum is contradictory to those of this Contract, then
the terms of this Contract shall be executed. 

25

Clause Twenty-three        
Effect of Contract 

This Contract becomes effective immediately after the
representatives of both Parties have signed and sealed on it. This Contract has
four copies, with each Party holds two, and all the copies possess identical
legal effect. 

Addendum of this Contract possesses identical legal effect as
this Contract. 

This Contract is effective until the requirements of all clauses
of this Contract have been fulfilled and realized. 

Addendum "Quotation of Dehau County Electronic Business
Projects"

 

A:     Fujian Province Dehua County
E-Government Construction Project Management Company Limited 

         
Representative: (signed and sealed) 

          Signing
Date : March 5, 2006 

 

B:       Expert Network (Shenzhen)
Company, Limited 

          
Representative: (signed and sealed) 

          
Signing Date : March 5, 2006

 

Addendum: 

        Quotation of Dehau
County Electronic Business Construction Project 

1.     List of Quotation of Project 

26

 

	
    
    Item Description

    	
    
    Fees (RMB)

	
     
	
     

	
    Hardware Platform
	
    
    
  ¥20,784,330.00

	
    Dehau County Electronic
    Business Security Protection System
	
    
    
  ¥9,620,900.00

	
    Electronic Business Application
    Platform Software System
	
    
    
  ¥38,240,000.00

	
    Electronic Business Application
    Platform
	
    
    
  ¥27,130,000.00

	
    Training
	
    
    
  ¥225,000.00

	
     
	
     

  	
    
    Total

    	
    
    
  ¥96,000,230.00

	
     
	
     

  	
    
    Price after discount

    	
    
    
  ¥96,000,000.00

27

2. Detailed List of Quotation of Project items 

Part I Electronic Business Hardware Platform 

	
  
  Product Name

	
  
  Model No.

	
  
  Unit Price

(RMB)

	
  
  Quantity

	
  
  Total

(RMB)

	
  
  WEB Server

	
  
  E420R

	
  
  ¥1,680,000.00

	
  
  4

	
  
  ¥6,720,000.00

	
  
  Application Server

	
  
  E3500

	
  
  ¥1,300,000.00

	
  
  2

	
  
  ¥2,600,000.00

	
  
  Dual Machine Hot Backup Software

	
  
  LEGATO

	
  
  ¥1,900,000.00

	
  
  1

	
  
  ¥1,900,000.00

	
  
  Database Server

	
  
  E3500

	
  
  ¥1,320,000.00

	
  
  2

	
  
  ¥2,640,000.00

	
  
  CA Server

	
  
  E420R

	
  
  ¥1,690,000.00

	
  
  2

	
  
  ¥3,380,000.00

	
  
  RAID

	
  
  D1000

	
  
  ¥420,000.00

	
  
  1

	
  
  ¥420,000.00

	
  
  Firewall

	
  
  E220R

	
  
  ¥190,000.00

	
  
  2

	
  
  ¥380,000.00

	
  
  Router

	
  
  CISCO2620

	
  
  ¥72,000.00

	
  
  1

	
  
  ¥72,000.00

	
  
  Switches

	
  
  CISCO WS-C3550-48SMI

	
  
  ¥50,000.00

	
  
  3

	
  
  ¥150,000.00

	
  
  UPS

	
  
  SANTEK

	
  
  ¥150,000.00

	
  
  2

	
  
  ¥300,000.00

	
  
  Machine Closet

	
  
   

	
  
  ¥15,000.00

	
  
  5

	
  
  ¥75,000.00

	
  
  Ethernet Switch Box

	
  
  LS-B-6506R-AC220

	
  
  ¥75,000.00

	
  
  1

	
  
  ¥75,000.00

	
  
  AC Module

	
  
  LS-PS-AC220

	
  
  ¥14,200.00

	
  
  3

	
  
  ¥42,600.00

	
  
  Router Module-Salience II

	
  
  Salience II

	
  
  ¥180,000.00

	
  
  2

	
  
  ¥360,000.00

	
  
  8 ports Copper wire GBIC

	
  
  LS-6506-GT8U

	
  
  ¥112,000.00

	
  
  2

	
  
  ¥224,000.00

	
  
  4 ports Optical (GBIC,SC)

	
  
  LS-GB4C

	
  
  ¥98,000.00

	
  
  1

	
  
  ¥98,000.00

	
  
  Optical Receipt and Delivery Unified Module

	
  
  GBIC-1300nm-1250Mb/s--3dBm--9.5dBm--14.4dBm-SC-10km

	
  
  ¥52,000.00

	
  
  4

	
  
  ¥208,000.00

	
  
  LAN Management Software

	
  
  RTBMZLANA

	
  
  ¥150,000.00

	
  
  1

	
  
  ¥150,000.00

	
  
  Sub-total

	 	
  
  ¥19,794,600.00

	
  
  System Integration

	 	 	
  
  5%

	
  
  ¥989,730.00

	
  
  Total

	
  
  ¥20,784,330.00

28

Part II Dehua Electronic Business Security Protection System 

	
  
  Name

	
  
  Model No.

	
  
  Quantity

	
  
  Unit Price

(RMB)

	
  
  Total Price

(RMB)

	
  
  CA System

 

	
  
  X235-8671-21X

	
  
  1

	
  
  ¥81,000.00

	
  
  ¥81,000.00

	
  
  X235-8771-21X

	
  
  2

	
  
  ¥100,000.00

	
  
  ¥200,000.00

	
  
  KMC System

 

	
  
  X235-8671-21X

	
  
  1

	
  
  ¥100,000.00

	
  
  ¥100,000.00

	
  
  X235-8771-21X

	
  
  1

	
  
  ¥160,000.00

	
  
  ¥160,000.00

	
  
  Registration System

	
  
  X235-8871-21X

	
  
  2

	
  
  ¥180,000.00

	
  
  ¥360,000.00

	
  
  Terminal

	
  
  A30 6824-43C(黑)

	
  
  8

	
  
  ¥125,000.00

	
  
  ¥1,000,000.00

	
  
  Encoder

	
  
  SJY05-B

	
  
  5

	
  
  ¥1,000,000.00

	
  
  ¥5,000,000.00

	
  
  Other

	
  
  X235-8671-21X

	
  
  1

	
  
  ¥95,000.00

	
  
  ¥95,000.00

	
  
  Network

	
  
  WS-C2950-24

	
  
  4

	
  
  ¥140,000.00

	
  
  ¥560,000.00

	
  
  Network

	
  
  CISCO2820XM

	
  
  1

	
  
  ¥450,000.00

	
  
  ¥450,000.00

	
  
   

	
  
  WIC-1T

	
  
  1

	
  
  ¥75,000.00

	
  
  ¥75,000.00

	
  
   

	
  
  EXP300

	
  
  1

	
  
  ¥135,000.00

	
  
  ¥135,000.00

	
  
   

	
  
  IBM 00N7991

	
  
  1

	
  
  ¥150,000.00

	
  
  ¥150,000.00

	
  
  Sub-total

	 	
  
  ¥8,366,000.00

	
  
  System Integration(5%)

	 	
  
  ¥1,254,900.00

	
  
  Total

	
  
  ¥9,620,900.00

29

Part III Electronic Business Application Software Products 

	
  Software Name

	
  Product Description

	
  Version

	
  Unit Price

(RMB)

	
  Qty

	
  Total

(RMB)

	
  Development Environment: Developing Version Silver Stream Developer Edition(SDE)

	
  STD:SDE-1Standard Version (Wintel-1Development Volume)

	
  3.5

	
  ¥300,000.00

	
  1

	
  ¥300,000.00

	
  Operating Environment: Enterprise Version Silver Stream Enterprise Edition(SEE)

	
  STD:SEE-1

(Sun Solaris 2-CPU)

	
  3.5

	
  ¥2,350,000.00

	
  3

	
  ¥7,050,000.00

	
  Silver Stream ePortal

	
  STD:SEE-1

(Sun Solaris 2-CPU)

	
  1

	
  ¥6,550,000.00

	
  3

	
  
  ¥19,650,000.00

	
  Brio Client machine/server Client Terminal Designer

	
  Designer for Windows/Unix

	
  6.0C

	
  ¥320,000.00

	
  8

	
  ¥2,560,000.00

	
  Brio Server Product Brio Enterprise Server

	
  Brio Enterprise Server for Unix

	
  6.0C

	
  ¥3,000,000.00

	
  2

	
  ¥6,000,000.00

	
  Briobased on Web Client Terminal Product Brio. quickview 6.0C for Win &  Unix

	
  100 users

	
  6.0C

	
  ¥380,000.00

	
  2

	
  ¥760,000.00

	
  Brio. insight 6.0C  for Win &  Unix

	
  25 users

	
  6.0C

	
  ¥700,000.00

	
  2

	
  ¥1,400,000.00

	
  Oracle 8ifor Solaris

	
  8 users

	
  8.1.5

	
  ¥260,000.00

	
  2

	
  ¥520,000.00

	
  
  Total

	
  
  ¥38,240,000.00

 

 

30

Part IV Application System Development 

	
  
  System Name

	
  
  Quantity

	
  
  Unit Price (RMB)

	
  
  Total Price (RMB)

	
  
  Electronic Business Door System

	
  
  1

	
  
  ¥1,940,000.00

	
  
  ¥1,940,000.00

	
  
  Internet Mall System

	
  
  1

	
  
  ¥2,840,000.00

	
  
  ¥2,840,000.00

	
  
  Corporate ERP System

	
  
  30

	
  
  ¥745,000.00

	
  
  ¥22,350,000.00

	
  
  Total	
   	
   	
  
  ¥27,130,000.00

 

31

Part V Training 

	
  
  Training Item

	
  
  Days

	
  
  No. of Person

	
  
  Unit Price

(RMB/person)

	
  
  Total

	
  
  Hardware, Network Technology Training

	
  
  10

	
  
  20

	
  
  ¥1,000.00

	
  
  ¥20,000.00

	
  
  Electronic Business Application System Training

	
  
  5

	
  
  10

	
  
  ¥500.00

	
  
  ¥5,000.00

	
  
  Corporate ERP System Training

	
  
  10

	
  
  250

	
  
  ¥800.00

	
  
  ¥200,000.00

	
  
  Total	
   	
   	
   	
  
  ¥225,000.00

 

 

 

32China Expert Technology Inc.: Exhibit 10.40 - Prepared by TNT Filings
Inc.

 

  
  
   Exhibit 10.40

  
  Dehua County Public
  Security Unified Command System Project

  
   

  
  CONTRACT

  
   

  
  Party A (The Contracting Party):       Fujian Province Dehua County E-Government
   Construction Project Management Company Limited

  
   Party B
  (The Contractor):                   Expert Network (Shenzhen) Company
  Limited

  
  
             
   

  
  Place of
  Signing : Dehua
  County, Fujian
  Province.

  
  Date of
  Signing : February 13, 2006.

1

 A.       

Illustration

Fujian Province Dehua County E-Government
Project Construction Management Company Limited
(hereinafter called Party A), after conducting full-scale comprehensive
investigation, confirmed to appoint Expert Network
(Shenzhen) Company
Limited (herein after called Party B) to undertake the Dehua County Public
Security Unified Command System Construction Project.  According to the
''Contract Law of the People's Republic of China'' and the related laws and
regulations, with the combination of the concrete conditions of this project and
in conformity of the principles of equality, willingness, equity and honesty
credibility, both parties consulted and discussed with each other in respect of
this project construction items and signed this contract.

 B.          

Project Items Stipulated in the Contract

 1.     

Project Name:       Dehua County 
 
Public Security Unified Command
System.

2.     

Project Target:       Set up the Dehua County Public Security Unified
Command System.

3.     

End user:               The Public Security Bureau of Dehua County.

 C.    
Construction Site and Schedule

 1.       Site: The Fujian Province Dehua County Public Security Bureau 
 

2.       

Date of Commencement of Work: 
 
This project
is
estimated to be started in March 2006; the exact
date of commencement shall be negotiated and confirmed by both parties after
Party A has paid the down payment of the project.

3.       

Construction Time Limit: 3 months from the
date of
commencement of work.  The
construction time limit shall include the working hours for
examination and study at the earlier stage, purchase of equipment, system
development, system installation, adjustment and testing, and acceptance of
examination etc.

4.       

Construction Time limit of the project will be postponed upon
the following conditions:  

2

 (1)    

The materials, equipments and environment conditions specified to be
supplied (provided) by Party A are not ready or are defective and in malfunction
etc., or needed to be repaired, blended, altered, replaced and changed which
caused delay to the construction progress.

(2)      

Change of material requirement that is not included in the contract or
inconsistency with the regulation of the original design which increased the
workload.

(3)      

Failure to pay according to the construction progress specified in the
contract.

 D.    
Total Contract Amount and Payment method

1.         Total contract sum is RMB FIVE MILLION THREE HUNDRED AND FIFTY
THOUSAND ONLY (¥5,350,000.00). 
(Particulars of which see Appendix
1).

2.         The down payment of this project is 30% of the total contract sum.  That
is  
RMB ONE
MILLION SIX HUNDRED AND FIVE THOUSAND ONLY (¥1,605,000.00). 
Party A shall pay Party B as soon as possible after signing of the contract so
as to guarantee the normal commencement of works of this project.

3.         Within 5 working days after the passing of adjustment and testing of
hardware installation, Party A shall pay Party B 30% of the total contract sum. 
That is RMB ONE MILLION SIX HUNDRED AND FIVE THOUSAND ONLY (¥1,605,000.00).

4.         Within 5 working days after the passing of adjustment and testing of
software system development, Party A shall pay Party B 30% of the total contract
sum.  That is RMB ONE MILLION SIX HUNDRED AND FIVE THOUSAND ONLY (¥1,605,000.00).

5.         Within 5 working days after the passing of integrated adjustment and
testing of software and hardware system, Party A shall pay Party B 5% of the
total contract sum.  That is RMB TWO HUNDRED SIXTY SEVEN THOUSAND AND FIVE
HUNDRED ONLY (¥267,500.00).

6.         Within 5 working days upon the expiry of one year of the passing of
adjustment and testing of the installation, Party A shall pay Party B 5% of the
total contract sum being the retention money for after-sales service, that is
RMB TWO HUNDRED SIXTY SEVEN THOUSAND AND FIVE HUNDRED ONLY (¥267,500.00).

3

 E.        Engineering Technology Standard

1.     

The function and implementation requirements of this project have been
specified in Appendix II, Party B shall in accordance with Appendix II submit to
Party A a project technology plan and a implementation management plan to Party
A for approval.

2.     

The project requirements analysis report shall be submitted by Party B
after research and study, and be confirmed with the signature jointly by Party A
and Party B.  The confirmed project requirements analysis report
shall deem to be an appendix of this contract and has the same legal effect together with this contract.

3.       After both parties examined and adopted the project requirements analysis
report, any one party shall not as it wishes amend it.  If amendment is
required, both Party A and B shall negotiate and confirm the amendments by
signing an alternation agreement.  

4.       Any matter arising from the above-mentioned 3 provisions which involves
the end users shall be coordinated and resolved by Party A.   

5.       Party B shall upon final examination provide full set standard technology
information including maintenance manual and user guide.

 F.         Obligation and Liabilities

Obligation
and liabilities of Party A:

1.       

Pay each installment of the contract sum as stipulated in the contract.

2.       

Responsible for the coordination and the relationship with end users
during the course of the contract.

3.       

Submit in writing during one month's trial period a system modification
request for the signature of the end user, such modification request exceed the
stipulation of this contract.

4.       

Coordinate with the end user to prepare all conditions for Party B to
commence the project.

5.       

Energetically cooperate with Party B to provide and safeguard necessary
facilities and basic working conditions for Party B to do investigation and
construction implementation.

6.       

Can inspect the project progress and the status of the execution of the
contract.

4

7.       

Complete all the groundwork construction of this project per the request
of Party B to ensure the satisfaction of commencement conditions, and assign
workers to assist Party B to proceed with the equipment installation.

Obligation
and liabilities of Party B

1.       

Proceed with the construction according to the Engineering Technology
Standard as agreed in the contract, to ensure the quality and quantitative
completion of designated project items on schedule.

2.       

When Party A inspects the status of the execution of the contract by
Party B, Party B shall honestly report all kinds of circumstances to Party A,
and answer all the questions raised by Party A.

 G.        System Inspection on Delivery 

1.       

Within 1 week after completion of the system deploy, Party A shall
arrange a preliminary inspection and upon the passing of preliminary inspection,
the system shall deploy and proceed to trial running.

2.       

Within 2 days after the trial running of the system, Party A and Party B
shall sign a ''Memorandum of System Trial Running''.

3.       

The system trial running is one month.  After completion of trial
running, Party A shall within 5 working days arrange the final inspection. 
Check on delivery shall be attended by the representative of the end user, Party
A and Party B.  After the completion of check on delivery, the end user, Party A
and Party B shall jointly sign the ''Check on Delivery Report''.       
 

4.       

If Party A failed to carry out final system inspection within the
designated time, and still failed to do so upon Party B's notification twice, it
is deemed to have passed the final system inspection.

 5

H.        Technical Service

1.     

Party B shall provide to Party A technical training relevant to the
project,  the training site shall be the construction site as
stipulated in this contract; the training shall cover the operation and usage of
the application software that involved in this contract and the technical
training of installation, repair and maintenance.  The trainees of Party A shall
cooperate with Party B to familiar with the system feature and operation, and
comparatively familiar with the command of the system maintenance and
management.  The specified training plan shall be submitted by Party B for the
confirmation of Party A.

2.     

Upon the project passing the check on delivery, Party B shall provide one
year free warranty period, and simultaneously assign a person to provide on-site
maintenance for one year.   

3.     

After the expiry of free warranty period, Party B shall provide long-term
follow-up service for the project.  Party A and Party B shall sign a system
maintenance agreement; Party B shall provide system maintenance service to Party
A according to the terms and conditions of such agreement with pay.

 I.          Liability Against the Contract

1.       

If any party is in breach of the contract during the execution of the
contract, the other party shall have the right to request the other to stop the
breach immediately, and to bear the responsibility of the breach.

2.       

If Party A failed to pay Party B as stipulated in this contract, Party A
shall pay Party B a daily penalty being 0.5% of such amount due and payable to
Party B.  If Party B failed to make shipment or do system installation on
schedule according to the contract, then Party B shall pay Party A a daily
penalty being 0.5% of such amount due and payable to Party A; the penalty shall
not exceed 5% of the total contract sum.

3.       

After paying the penalty, the party in breach shall continue to execute
the contract.

4.       

The party which caused the suspension or delay of the project
construction shall be responsible for indemnifying the other party's actual loss
arising therefrom  

6

 J.         Dispute Resolutions

 1.     

If any dispute happened during the execution of the contract, both
parties shall use best endeavor to negotiate with each to resolve the dispute in
accordance with the contract.  If it is failed to resolve through negotiation,
either Party A or Party B may institute legal action in the court of the signing
place.  

2.       

Both parties shall continue to execute the remaining parts of the
contract except the parts of argument during the course of legal proceedings.

 K.        Effectiveness, Modification and Termination of Contract

1.       This contract becomes effective after signing with chops by both parties,
and has the same binding effect on both parties.  Both parties must fully
perform the obligation stipulated in the contract, no unit or person can
interfere illegally, or change or terminate the contract with authorization.

2.     

This contract is in quadruplicate, each of 
 
Party A
and Party B holds two copies,
which have the same legal effect.

3.     

Any one party who wants to modify or terminate the contract shall submit
written request to the other and explain face to face the reasons for the
modification or termination, and negotiate for a reply deadline.  Upon receipt
of the written request submitted by the other party, the receiving party shall
reply within one and a half months.  If the receiving party agrees and accepts,
both parties shall sign an agreement.  If the receiving party failed to reply
within the prescribed period, the proposed modification or termination of the
contract shall deem to be accepted by the receiving party, and all the
liabilities arising therefrom shall be borne by the receiving party.

4.     

Both parties shall negotiate to decide the economic responsibility
arising from the modification and termination of contract. if it is the
responsibility of one party to modify or terminate the contract, such
responsible party shall indemnify the other party's loss; if it is the
responsibility of both parties, each party shall bear its own responsibility; if
both parties have no faults, then both shall through negotiation share the loss
arising from the modification or termination of the contract.

7

5.       

If any party of this contract due to any event of force majeure such

as
wars, fire, floods, typhoon, earthquakes, prohibition
and other governmental
orders,
or other events of force majeure agreed by both parties failed to execute the
contract according to the stipulation of the contract, the execution thereof
shall be postponed, and the time of such postponement shall equal to the time of
such incident last.

6.     

The one party that is obstructed by the event of force majeure shall as
soon as possible notify the other party by telegram or fax, and shall within the
following 10 days submit to the other by speed post any certificate issued by
the government or authorities to prove the event of force majeure.

7.     

Upon the event of force majeure, the party may temporarily stop the
execution of works being obstructed.  When the event of force majeure lasts more
than three months, both parties may negotiate to terminate the contract and to
deal with any unresolved matters.

 L.        Confidentiality 

1.     

Without the written permission of Party B, Party A shall not divulge any
terms of this contract and information related the technical documents and this
contract.  Otherwise, Party A shall bear the relevant responsibility and losses
arising therefrom.

2.       

With regard to the confidential information of Party A and the end users,
Party B shall in the same way comply with the confidentiality provision of this
contract.

 M.       Addendum

All the
Appendixes of this contract are integral parts of this contract.

Appendix
1:    Dehua County Public Security Unified Command Centre Project Configurations
and Price List

Appendix
2:    Dehua County Public Security Unified Command Centre Project Construction
Requirement

Party
A:             
Fujian Province
Dehua County E-Government
Construction
Project  Management Company Limited

Seal:                    [Chop of
Fujian Province
Dehua County E-Government Construction
Project
Management Company Limited]

8

Representative:           [Signature of He Zhi Neng]

Date:                              February 13, 2006

Party
B:                       Expert Network
(Shenzhen) Company
Limited

Seal:                            [Chop of Expert Network
(Shenzhen) Company
Limited]

Representative:        [Signature of Song Feng]

Date:                           February 13, 2006

 

9

 Appendix I

Dehua
County Public Security Unified Command Centre  

Project
Configurations and Price List

	
    
    No
	
    
    Name
    of System
	
    
    Model
	
    
    Qty
	
    
    Price
	
    
    
    Sub-total

	
    
    1
	
    
    
    Meeting Place
    system
	
    
    HP ML150
    Server
	
    
    2
	
    
    
    ¥21,000.00
	
    
    
    ¥42,000.00

	
    
    2
	
    
    
    Meeting Place
    system
	
    
    Cluter
    
    Software
	
    
    1
	
    
    
    ¥19,000.00
	
    
    
    ¥19,000.00

	
    
    3
	
    
    
    Meeting Place
    system
	
    
    HP DX PC
	
    
    14
	
    
    
    ¥5,000.00
	
    
    
    ¥70,000.00

	
    
    4
	
    
    
    Meeting Place
    system
	
    
    17''
    LCD Monitor
	
    
    48
	
    
    
    ¥2,800.00
	
    
    
    ¥134,400.00

	
    
    5
	
    
    
    Meeting Place
    system
	
    
    
    Triplex display cards
	
    
    16
	
    
    
    ¥4,000.00
	
    
    
    ¥64,000.00

	
    
    6
	
    
    
    Meeting Place
    system
	
    
    
    Meeting Place software
	
    
    1
	
    
    
    ¥1,250,000.00
	
    
    
    ¥1,250,000.00

	
    
    7
	
    
    
    Meeting Place
    system
	
    
    Intelligent
    ACD software
	
    
    1
	
    
    
    ¥38,000.00
	
    
    
    ¥38,000.00

	
    
    8
	
    
    
    Meeting Place
    system
	
    
    
    Communication server software
	
    
    1
	
    
    
    ¥38,000.00
	
    
    
    ¥38,000.00

	
    
    9
	
    
    
    Meeting Place
    system
	
    
    Data
    service platform software
	
    
    1
	
    
    
    ¥52,000.00
	
    
    
    ¥52,000.00

	
    
    10
	
    
    
    Meeting Place
    system
	
    
    IVR
    function software
	
    
    1
	
    
    
    ¥64,000.00
	
    
    
    ¥64,000.00

	
    
    11
	
    
    
    Meeting Place
    system
	
    
    Real-time
    monitoring warning software
	
    
    1
	
    
    
    ¥90,000.00
	
    
    
    ¥90,000.00

	
    
    12
	
    
    
    Meeting Place
    system
	
    
    System
    connection software
	
    
    1
	
    
    
    ¥220,000.00
	
    
    
    ¥220,000.00

	
    
    13
	
    
    
    Meeting Place
    system
	
    
    CTI
    System
	
    
    1
	
    
    
    ¥200,000.00
	
    
    
    ¥200,000.00

	
    
    14
	
    
    Wired
    & 
    wireless communication
	
    
    YA-61D
    Switchboard
	
    
    1
	
    
    
    ¥80,000.00
	
    
    
    ¥80,000.00

	
    
    15
	
    
    Wired
    & 
    wireless communication
	
    
    Earphone
    digit dialing
	
    
    14
	
    
    
    ¥700.00
	
    
    
    ¥9,800.00

	
    
    16
	
    
    Wired
    & 
    wireless communication
	
    
    IP center
    gateway
	
    
    1
	
    
    
    ¥150,000.00
	
    
    
    ¥150,000.00

	
    
    17
	
    
    Wired
    & 
    wireless communication
	
    
    IP terminal
    gateway
	
    
    43
	
    
    
    ¥6,000.00
	
    
    
    ¥258,000.00

	
    
    18
	
    
    Wired
    & 
    wireless communication
	
    
    Wireless
    base station controller
	
    
    1
	
    
    
    ¥40,000.00
	
    
    
    ¥40,000.00

	
    
    19
	
    
    Wired
    & 
    wireless communication
	
    
    Sub-
    station sector channel machine
	
    
    4
	
    
    
    ¥85,000.00
	
    
    
    ¥340,000.00

	
    
    20
	
    
    Wired
    & 
    wireless communication
	
    
    Satellite
    clock synchronizer
	
    
    1
	
    
    
    ¥9,000.00
	
    
    
    ¥9,000.00

	
    
    21
	
    
    Wired
    & 
    wireless communication
	
    
    Unidirectional radio frequency 
    
	
    
    4
	
    
    
    ¥2,000.00
	
    
    
    ¥8,000.00

 10

	
    
    22
	
    
    Wired
    & 
    wireless communication
	
    
    Wide band
    antenna mixer
	
    
    3
	
    
    
    ¥4,000.00
	
    
    
    ¥12,000.00

	
    
    23
	
    
    Wired
    & 
    wireless communication
	
    
    
    Antenna with high gain
	
    
    2
	
    
    
    ¥1,000.00
	
    
    
    ¥2,000.00

	
    
    24
	
    
    Wired
    & 
    wireless communication
	
    
    Directional antenna
	
    
    1
	
    
    
    ¥800.00
	
    
    
    ¥800.00

	
    
    25
	
    
    Wired
    & 
    wireless communication
	
    
    Wide band
    high efficiency diplexer
	
    
    1
	
    
    
    ¥800.00
	
    
    
    ¥800.00

	
    
    26
	
    
    Wired
    & 
    wireless communication
	
    
    The antenna
    enlarges the pale pinkish purple shunt
	
    
    2
	
    
    
    ¥10,000.00
	
    
    
    ¥20,000.00

	
    
    27
	
    
    Wired
    & 
    wireless communication
	
    
    1/2
    circuit and line
	
    
    100
	
    
    
    ¥40.00
	
    
    
    ¥4,000.00

	
    
    28
	
    
    Wired
    & 
    wireless communication
	
    
    1/2
    circuit terminal
	
    
    4
	
    
    
    ¥100.00
	
    
    
    ¥400.00

	
    
    29
	
    
    Wired
    & 
    wireless communication
	
    
    10DFB
    circuit
	
    
    40
	
    
    
    ¥10.00
	
    
    
    ¥400.00

	
    
    30
	
    
    Wired
    & 
    wireless communication
	
    
    32U
    standard 19 inches cabinets
	
    
    1
	
    
    
    ¥2,000.00
	
    
    
    ¥2,000.00

	
    
    31
	
    
    Wired
    & 
    wireless communication
	
    
    Reserve UPS
    power source 2KW, 6H
	
    
    1
	
    
    
    ¥16,000.00
	
    
    
    ¥16,000.00

	
    
    32
	
    
    Wired
    & 
    wireless communication
	
    
    CWY
    exchange parameter manostat 3KVA
	
    
    1
	
    
    
    ¥6,000.00
	
    
    
    ¥6,000.00

	
    
    33
	
    
    Wired
    & 
    wireless communication
	
    
    Local
    channel machine
	
    
    1
	
    
    
    ¥70,000.00
	
    
    
    ¥70,000.00

	
    
    34
	
    
    Wired
    & 
    wireless communication
	
    
    antenna
	
    
    1
	
    
    
    ¥9,000.00
	
    
    
    ¥9,000.00

	
    
    35
	
    
    Wired
    & 
    wireless communication
	
    
    Wired & wireless control &
    Vehicle Station 
	
    
    4
	
    
    
    ¥25,000.00
	
    
    
    ¥100,000.00

	
    
    36
	
    
    Wired
    & 
    wireless communication
	
    
    PTT center
    matrix and control system
	
    
    2
	
    
    
    ¥55,000.00
	
    
    
    ¥110,000.00

	
    
    37
	
    
    Wired
    & 
    wireless communication
	
    
    Wireless
    multi-purpose server
	
    
    1
	
    
    
    ¥65,000.00
	
    
    
    ¥65,000.00

	
    
    38
	
    
    Wired
    & 
    wireless communication
	
    
    
    Calling 
    controller
	
    
    12
	
    
    
    ¥5,000.00
	
    
    
    ¥60,000.00

	
    
    39
	
    
    
    Recording system
	
    
    Recording
    server
	
    
    2
	
    
    
    ¥23,000.00
	
    
    
    ¥46,000.00

	
    
    40
	
    
    
    Recording system
	
    
    16 bit
    timer recording card
	
    
    4
	
    
    
    ¥6,000.00
	
    
    
    ¥24,000.00

	
    
    41
	
    
    
    Recording system
	
    
    Wired
    recording control module
	
    
    1
	
    
    
    ¥40,000.00
	
    
    
    ¥40,000.00

 11

	
    
    42
	
    
    
    Recording system
	
    
    Wireless
    recording control module
	
    
    1
	
    
    
    ¥40,000.00
	
    
    
    ¥40,000.00

	
    
    43
	
    
    
    Recording system
	
    
    IP
    recording module
	
    
    1
	
    
    
    ¥40,000.00
	
    
    
    ¥40,000.00

	
    
    44
	
    
    
    Recording system
	
    
    Recording
    managing
    
    software
	
    
    1
	
    
    
    ¥60,000.00
	
    
    
    ¥60,000.00

	
    
    45
	
    
    
    Recording system
	
    
    Recording
    monitoring software
	
    
    1
	
    
    
    ¥50,000.00
	
    
    
    ¥50,000.00

	
    
    46
	
    
    
    Display and  circuit switching
	
    
    
    Projector
	
    
    1
	
    
    
    ¥42,000.00
	
    
    
    ¥42,000.00

	
    
    47
	
    
    Display &
    switch
	
    
    Cut
    matrix (128X84)
	
    
    1
	
    
    
    ¥385,000.00
	
    
    
    ¥385,000.00

	
    
    48
	
    
    Display &
    switch
	
    
    RGB
    
    Switch
    board
	
    
    28
	
    
    
    ¥500.00
	
    
    
    ¥14,000.00

	
    
    49
	
    
    Display &
    switch
	
    
    Video
    frequency divider
	
    
    100
	
    
    
    ¥700.00
	
    
    
    ¥70,000.00

	
    
    50
	
    
    Display &
    switch
	
    
    Matrix
    control machine
	
    
    1
	
    
    
    ¥8,000.00
	
    
    
    ¥8,000.00

	
    
    51
	
    
    Display &
    switch
	
    
    TheΦ3.75
    monitor at lobby
	
    
    6
	
    
    
    ¥21,000.00
	
    
    
    ¥126,000.00

	
    
    52
	
    
    Display &
    switch
	
    
    TheΦ3.75
    monitor 
    at 1st
    floor
	
    
    1.5
	
    
    
    ¥21,000.00
	
    
    
    ¥31,500.00

	
    
    53
	
    
    Display &
    switch
	
    
    LED
    
    control machine
	
    
    1
	
    
    
    ¥8,000.00
	
    
    
    ¥8,000.00

	
    
    54
	
    
    Display &
    switch
	
    
    the accessory
    of installation
	
    
    1
	
    
    
    ¥8,000.00
	
    
    
    ¥8,000.00

	
    
    55
	
    
    One
    call one send
	
    
    Main 
    board
	
    
    2
	
    
    
    ¥8,000.00
	
    
    
    ¥16,000.00

	
    
    56
	
    
    One
    call one send
	
    
    The
    software of one call one send 
	
    
    1
	
    
    
    ¥120,000.00
	
    
    
    ¥120,000.00

	
    
    57
	
    
    Simple
    localization
	
    
    HP ML150
    Sever
	
    
    1
	
    
    
    ¥21,000.00
	
    
    
    ¥21,000.00

	
    
    58
	
    
    Simplified
    Location
	
    
    Controls
    software and the number passes on the broadcasting station
	
    
    1
	
    
    
    ¥100,000.00
	
    
    
    ¥100,000.00

	
    
    59
	
    
    Simplified
    Location
	
    
    the 
    location of central
    station

    	
    
    1
	
    
    
    ¥75,000.00
	
    
    
    ¥75,000.00

	
    
    60
	
    
    Simplified
    Location
	
    
    Location
    migration station
	
    
    2
	
    
    
    ¥500.00
	
    
    
    ¥1,000.00

	
    
    61
	
    
    Information
    inquiry
	
    
    Inquires
    the terminal
	
    
    16
	
    
    
    ¥8,000.00
	
    
    
    ¥128,000.00

	
    
    62
	
    
    Information
    inquiry
	
    
    Inquiry
    software integration
	
    
    1
	
    
    
    ¥30,000.00
	
    
    
    ¥30,000.00

	
    
    63
	
    
    Communication
    network

    	
    
    Special net
    switchboard S3050C
	
    
    1
	
    
    
    ¥36,000.00
	
    
    
    ¥36,000.00

	
    
    64
	
    
    
    Communication network
	
    
    LS2403H
    Public security network switchboard
	
    
    1
	
    
    
    ¥3,000.00
	
    
    
    ¥3,000.00

 12

	
    
    65
	
    
    
    Communication network
	
    
    
    Concentrator
	
    
    1
	
    
    
    ¥1,000.00
	
    
    
    ¥1,000.00

	
    
     
	
    
    
    Technical service and after-sales service fee
	
    
    
    ¥80,000.00

	
    
     
	
    
    
    Installation Labor Cost
	
    
    
    ¥70,000.00

	
    
     
	
    
    
    Transportation Charges
	
    
    
    ¥20,000.00

	
    
     
	
    
    
    Premium
	
    
    
    ¥5,000.00

	
    
    Total:
	
    
     
	
    
    
    ¥5,353,100.00

	
    
    Final
    Price: RMB Five Million Three Hundred and Fifty Thousand Only 
	
    
    (¥5,350,000.00)

 

 

 13

Appendix
II

Dehua
County Public Security Unified Command Center  

Project
Construction Requirement

	

          
 
Project
Function Requirements

  

According
to the related documents and requirements of the Ministry of Public Security and
the Department of Public Security of Fujian Province, Dehua County Public
Security Bureau will soon set up the Unified Command System, the contents of
construction is under the existing condition, to implement the Unified Command
System as soon as possible, and to implement as many functions as possible, to
make the Dehua County Unified Command System to truly becomes a qualify
construction in Fujian province.  Therefore, the construction contents and
functions are set out as follows:

A.       
Report Police System

1.       

According to the existing transaction quantities and in consideration of
the demands of the future 5 years, construct a
Call Police System 110/122/119/120.
 Supplier can rely on the earlier research and investigation information to
determine the number of seats, which shall be not less than 12, 1 General
Commander seat, 1 Leading Commander seat, 43 Remote Terminals, and reserve a
function of expansion to more than 100 seats.

2.       

Appropriately supplement the facilities based upon the existing cable
device, enabling the cable system to satisfy the needs of existing communication
transfer, and simultaneously satisfy the needs of high functioned application
software.  The modified cable system shall bear VoIP
function, and use this function to connect the police stations and the Traffic
Police, all branches of Fire Department and any joint action unit established in
the future.  To set up voice and digital synchronous control for all outer
organizations. 

3.       

Since the Unified Communication Platform of the Dehua Social Security
Centre will at later stage be extended, any modification of the existing cable
system shall take into account the re-usage of all facilities in such later
extension so as to try the best to avoid or reduce any discard of the present
facilities in the later extension.

4.       

Develop a flexible Report Police software system.  As the Report Police
System and the transferring mode may follow the reform be modified, software
should, through simple configurations, adapt and centralize the function of
reporting the police to various level such as the Report Police Center,
sub-center and the police station function.  Different reporting incidents shall
be rapidly switched to the police station interface and automatically changed to
the recorded contents.  The software must take into account the addition of any
future emergency joint action unit, so that it is convenient to adapt to such
addition.  Function of the new defined items shall be as perfect as the function
of 110/119/122/120, software function specification shall describe the progress
of addition of a new item.  Each report police record interface shall contain
the handling result information so as to enable the Report Police Department to
fill in the feedback and the Command Centre to have better and prompt control of
the handling process of the report to the Police.           
 

 14

5.       

The software 
 
functions shall
be comprehensive and
intelligent.  The Report Police System software shall adequately integrate with
the wireless communication system, recording system and one call one check
system etc.  It shall reduce the operation act of the operators as much as
possible to achieve an intelligent Report Police System.  The software shall,
for the convenience of case management, aim at setting up the function of
automatic establishment of the cases placed for investigation.

6.       

The software shall reserve convenient system interface, in particular the
interaction between the geographic information system and the report police
system. It shall especially describe the interface function in detail.

7.       

Achieve the police IVR function. Achieve the function of voice messages,
education and interaction.

8.       

The data of ''Unified Command'' shall be stored in the central data base
server of the e-government system, which has 
 
installed the Oracle 9 database system
with well-founded backup and data recovery functions.  Other servers shall be
purchased according to the supplier's product design.  Purchase a data base
server for the command centre and turn data server of the e-government centre
into a back-up server, and into account of the issue of back-up if there is any
application server.

9.       43 police stations and squadron shall achieve the remote seats.  The
computers for remote seats, which shall be purchased by the government in unity,
are not included in this contract, but IP telephones and the required seats
terminal software shall be provided by this project.

 15

10.   

The report police system shall include standard CTI software, to achieve
the convenient interaction and control of computers and communication system.
 It shall mainly achieve high intelligent functions such as the priority of 119
or the designated number and interception of blacklisted number etc.

11.   

Statistics and data reporting
are the key functions of the software, listen to the opinion from peoples in all
aspects and of different levels, and collect as many as possible the statistics
modes and data reporting specimens required by the owners so as to achieve these
statistics and data reporting functions in the software.  For example: according
to various factors such as time, police stations, towns and villages, and
particulars and types of cases etc. data to carry out statistic analysis.
 Simultaneously take into account that some of the users' 
 
statistics
methods may be changed at any time,
the flexibility of statistics and data reporting functions must be achieved.

12.   

Although this project dose not solely construct technology security
system, the function of connection between must be achieved in the software, and
integrated the existing technology security and Report Police System into the
system, such integration is included in this project.

B.       
Adjustment of Wired and Wireless

1.        

Required to achieve the interflow of wired and wireless system.

2.        

The wired adjustment system needs to be modified, as the existing system
cannot carry out certain advanced functions such as molestation interception,
which greatly limits the intelligent function of the software system.

3.      

Corresponsively handle the report police calls that are identified as
malicious calls.  It mainly includes calling control, transfer to listen the
educational recording, malicious call blocked up and blacklist function.  The
principal officer on duty shall decide to apply which way to handle.

Calling control: Set calling control to the report police calls, which
needs the support of the telecommunication company.

Educational recording: Transfer the malicious calls to education channel
of the IVR system.

Call blocked up: To screen and block up the malicious calls in a
designated period so that they cannot reach the receiving seat.

C.       
Sound and Time Recording System

1.         

Sound and Time Recording System shall record all the calls and
conversations, and simultaneously record the wireless channel if the wireless
channel connects with the wired channel.

 16

2.         

The recording storage time shall meet the requirement of public security
system (stored for 3 years).  

3.         

All recordings shall link up with the case so as to facilitate
multi-composite search and storage according to the case, time, conversation
route, person receiving the call, person reporting to the police and the
handling police station etc.

4.         

The stability of the Sound and Time Recording System must be safeguarded,
and consider to have double back up copy in the sound recording server.

D.       
Display and Signal Switching System

Construct
a leader conference room with a high sharpness and brightness projector system,
a signal switching control system, and a monitor connecting with report police
center which displays the latest report police information and some statistic
information.

1.       

A high sharpness and brightness projector in the conference room, and
construct a different signal switching system to facilitate the connection with
various signals and the switch to a large display screen, any television on the
TV wall or the projector of the conference room.

2.       

A display monitor in the Report Police Center, displays the latest report
police information and some statistic information which applies the technology
recommended by the supplier (propose multicolored LED), with a requirement of 3m
width and 2m height.

3.         

Increase a 
 
screen switching
matrix
to switch video signal
and VGA
signal
etc. to the TV wall.

4.         

Install a 1.6m X 0.8m 3-colours LED display screen beside the elevator at
1st floor.

E.       
Construct 3 sections ''one call one check'' system

When the
Command Center receives a report police call from a fixed line, in order to
ascertain the location of the report police call, it can wait until 4 sections
information, or when a call from public network (PSTN) telephone enters the
system, the system can get 4 sections information from the UTIR port provided by
the relevant telecommunication company.  The 4 sections information include:
name of the account holder, phone location, caller phone number and the
intersection box serial number. 
After receiving 4 sections information, the system shall check with the database
to verify if such record exists and if such record is the most updated. If upon
testing and comparison, same information has already been stored in the 4
sections information database of the report police system, then it is no need to
update, otherwise, the system will update or added the data in the database
automatically.

 17

F.        
Manpower Emergency

1.       

In the process of system construction, it is necessary to take into
consideration of how to maintain the emergency command system when there is a
breakdown of the network.  The smoothness of wired and wireless 
 
communication network and the
integrity
of various functions of the communication
network
must be guaranteed when there is a  breakdown of the information network.  For
instance, the main caller display
and calling parties group should be
able to
connect
to the Report Police System solely through the communication system in emergency.

2.       

In normal circumstances, all remote seats apply the IP telephone mode. 
In case of breakdown of most systems, IP telephone should not be affected.  The
IP telephone
will be
broken off if there
is a breakdown of the network channel,
therefore the command center shall have conventional
telephones to link up with the conventional telephones of all associated units,
and to command and deploy through conventional telephones in special
circumstances.

3.       

The computer application, wired and wireless communication system shall
through the CTI system interlink and inter-control with each other in normal
circumstances.  When there is a breakdown of the computer system, the system
must isolate the breakdown that influenced and restricted the wired and wireless
communication system, so as to ensure normal operation..  

4.       

An 
 
ordinary
telephone enquiry list
of all units connected with remote terminal unit must be established.  In normal
circumstances, the system shall through the specialized IP telephone and data
network of the e-government transmit data and voice, and through. ordinary (telecommunication network) telephone to
carry out the command
when the network is abnormal.

F.        
Surveillance System

1.         

On
the foundation
of the existing signal surveillance system, this project shall increase 100 routes of video frequency surveillance signal connected
to the command center
and integrated into that system,
and require all the surveillance signal connected to the Command Center be
integrated into the display system through the switching matrix of the display
system.

 18

H.       
Integrated
Information Inquiry System

1.       

The internal information system server of the Public Security Bureau
shall be moved to the command center for unified mechanical management.  The maintenance and
administration right to the
information is
retained by the relevant units.

2.       

To ensure the safety of the network of Public Security Bureau, the 
 
information
inquiry system
belongs to the network of Public Security Bureau which is separate from the
report police network.  However, an information inquiry platform with one import
interface to link up all information systems shall be set up for each report
police operation seat. The user shall use different user name and password to
enter into each information system.

3.       

Set up two computers connected to the internet in report police center to
facilitate the inquiry of external information.

 I.          Communication Network

1.       Install 3 sets of 24 (RJ45) 10/100M two-stratum ethernet switchboard
which are required to be Hua Wei's products inside the Command Center.

2.      

Although extending the Command Center to the network of all related
organization does not fall within this project, accessory facilities are needed
to be set up per the requirement arising from the process of implementation of
the project.  It is requested that the e-government 
 
engineering
construction command
center shall request the
telecommunication bureau to extend
the e-government
specialize
network to reach
all the
involved
units.  The entire ''Unified Command'' System is established on the specialized
network of the e-government system.  In order to complete the construction of
network extension on time, the Public Security Department shall as soon as
possible submit the name and the location of all branches that require to
establish terminal.

J.        
The Integration Duty

The
existing lighting control system shall be installed and the UPS is required to
be moved to the engine room for use.  Digital recording system and integration
requirement have already been installed.

 19

	

           
Organized Implementation
and Technical Support,
Specific Requirement
of After-Sales Service 

  

1.     

It is required to have a designated project manager who shall be
responsible for the coordination with subcontractors.  There should have
adequate key 
 
technicians of the subcontractor,
and staff for project development,
implementation and
maintenance,
who are experienced and capable to manage the work. 
Any replacement of key staff must be approved by main contractor and notify
Party A for record.

2.     

It is required to complete the software development from the commencement
of research and investigation until the completion of work and checking on
delivery within 3 months.

3.     

It is required to provide the formal, planned, with charge training on
site and the specified program training (excluding the original manufacturer's
training).

4.     

It is required to provide one-year free warranty period after the
completion and the check on delivery of the entire project with at least 1
person on site to provide service.

5.     

It is required to keep the system well cooperated and connected with the
Dehua e-government system during warranty period and after-sales maintenance
period, to provide support, maintenance and uphold and upgrade to this project
so as to ensure the normal operation of the entire system.

6.     

It is required to have a planned development and implementation; strictly
control the progress and quality during the construction of the entire project.

 20

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