Document:

China Expert Technology Inc.: Exhibit 10.42 - Prepared by TNT Filings
Inc.

 

The Project of 

Shishi City E-Government Planning, Design and Construction 

 

 

Main Contract 

 

 

Party A: Shishi City Information Management Co. Ltd. 

Party B: Expert Network (Shenzhen) Company Limited 

Signing Date: March 30, 2006 

 

Party A is appointed by the People's Government of Fujian
province Shishi City, upon examination and introduction of the consultant (Fujian
International Consultants Limited), to confirm that Party B shall undertake the
entire planning, feasibility analysis, system design and construction works of
the Shishi City e-government construction project. Based on the principle of
equality, voluntariness, fairness and honesty and upon negotiation, both Party A
and Party B unanimously reach the following terms and conditions of this Main
Contract for both Parties to observe. 

Clause One        
Definitions, Enactment and Regulations 

1.     Definitions 

The following words and expressions
shall have the meaning as assigned hereunder unless stated otherwise in this
Contract:- 

1.1   
"Project" means the project of Shishi City e-government construction that Party
A appoints Party B to undertake. The scope of works is embodied in Clause 2 of
this Contract. 

1.2   
"Party A" means the party undertakes the investment and appointment of
main-contractor responsibility, i.e. Shishi City Information Management Co. Ltd.

1.3   
"Party B" means the party who performs the works of the Project, i.e. "Expert
Network (Shenzhen) Company Limited", 

1.4   
"Supervisor" means a person or company who is appointed by Party A to monitor
the Project. 

1.5   
"Sub-contractors" means a person or company who performs the work of individual
items of the Project. 

2.     Laws and Regulations 

This Contract shall be governed by
and construct in accordance with the "Contract Law" and related regulations and
rules of the time being in force in the People's Republic of China. 

Clause Two        
Specifications of Project 

2 

Party A appoints Party B to undertake all the works of the
Project, including the construction works of all the individual items of the
Project, such as Project Planning, Feasibility Analysis, Training for
e-government and Hardware Platform, Security Platform, Application Platform,
E-Government Portal Website, Unified Administration Approval System, Coordinated
Office System, Information Resource Library, Geography Information System, the
Decision Support System, Emergency Commanding System, Social Medical Security
Information System, One Card Communication System and E-Commerce System, all
together thirteen items in total (hereunder collectively referred to as
"Construction Items"). Party B shall be responsible for the purchase,
installation, integration, testing, maintenance, development and training of the
materials and appliances relevant to the Construction Items (including hardware
and software), together with all the works that are required for the normal
construction, testing and operation of these Construction Items notwithstanding
that they are not expressly referred to in this Contract. However, the Hardware
Platform shall be excluded as it will be bought by Party B on Party A's behalf.

Clause Three        
Status Quo Of The Project 

1.     The
Project is situated in Shishi City, Fujian Province. 

2.    
Before the Project starts, Party B shall have full understanding of Party A's
condition and shall have taken into consideration those factors that might
affect the constriction and prepared corresponding solution. 

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

Clause Four        
Time for Completion, Progress Management and Time Adjustment 

1.     This
Contract shall be commenced in October 2006 and the overall construction period
shall last for 3 years. The actual commencement date shall begin from the date
Party A issues the certificate for commencement of works. This overall
construction period of the Project is the total period of time for the
completion of the planning and actual construction of the Project.

3 

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

3.    
The construction period encompasses the time for a probe, planning, feasibility
analysis, training, construction preparation, selection of suppliers, system
installation, development and testing, and acceptance check upon completion of
the Project. 

4.    
Once the implementation plan and schedule of the individual items of the Project
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 due to Party A's default, Party A shall coordinate
actively with Party B in consideration of the actual condition so as to ensure
that the Project is completed as scheduled. 

6.    
If Party B is unable to complete the works as scheduled for the current month
without Party A's default, then it shall take effective measures to ensure that
the remaining works are finished with those works of next month, otherwise,
Party B shall assume full liability for breach of this Contract, compensate
Party A for the resulting economic loss, and pay the penalty for breach of this
Contract. 

7.    
The schedule of the Project can be adjusted after it is approved by Party A
under any of the following circumstances: 

7.1   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 circuit) as requested by Party A. 

7.2   Force
majeure 

7.3   Other
cases as are stated in this Contract. 

Party B shall report in writing to Party A about the
detail of delay within three days of occurrence of any of the above
circumstances. Party A shall then reply within five days after it has received
Party B's reports. Otherwise Party A is deemed to have approved such delay. 

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8.     
Party B shall bear full responsibility for inability to complete the Project as
scheduled if it is not caused by Party A's default. 

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

Clause Five        
Delay of Commencement Date and Construction Suspension 

1.    
If Party A proposes to postpone the commencement date after the certificate for
the commencement of works has been issued, 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 after the certificate for
the commencement of works has been issued, it shall submit 3 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 Party B to suspend the construction works
if he/she deems necessary and provide opinion for further handling of the
Project within 48 hours of such request. Party B shall suspend the construction
works as requested by Party A and shall safeguard the already completed portion
of the Project. 

4.    
If the Project is suspended due to the default of Party B, its subcontractors or
suppliers, then Party B shall assume the responsibility. If the Project is
suspended due to the default of Party A, then Party A shall assume the
responsibilities. If neither Party A nor Party B caused the Project to be
suspended, then the responsible person(s) shall assume the corresponding
responsibilities. In such case, depending on the practical situation, either
Party A or Party B shall exercise the right to claim liabilities from the
responsible person(s). 

5 

Clause Six        
Rights and Obligations of Party A and Party B 

A. Rights and Obligations of Party A 

1.1  
Party A has the right to alter the construction design of the Project according
to the actual needs of Shishi City's development and to select or change the
hardware equipments and software systems in accordance with the altered design.
Party B shall redesign and replace the hardware equipments and software systems
in accordance with Party A's request. Party A shall bear the necessary costs
resulting from such redesign. 

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

1.3  
Party A has the right to examine and approve the construction reports and
reports related to design alteration, alteration of the Project and construction
schedule adjustments submitted by Party B and handle the matter regarding
payment of the construction money. 

1.4  
Party A has the right to examine the progress and quality of the Project at any
time it sees fit, demands Party B to provide the monthly progress report and
other related reports concerning the construction of the Project. 

1.5   In
case Party A finds that Party B's employees, its sub-contractors or suppliers
are unable to fulfill their corresponding responsibilities, Party A has the
right to request Party B to replace them and Party B shall carry out such
replacement as requested. Otherwise, Party A shall be entitled to terminate this
Contract and request Party B to assume the relevant liability for compensation.

1.6  
Party A shall make the down payment to Party B before the commencement of the
Project's construction works and shall make payment according to the progress of
the Project. 

1.7  
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. 

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1.8   Party A shall
provide Party B with the related documents of the Project. 

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

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

1.11  Party A
shall notify the selected Supervisor in writing about the authorized rights of
Party B and the duties, division of labour 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. 

1.12  Party A shall provide
office and necessary office equipments to Party B. Office expenditures are to be
paid by Party B. 

1.13  Party A shall fulfill
all the obligations stated in this Contract and is liable to compensate Party
B's economic loss when in default. 

1.14  Party A shall observe
other rights and obligations stipulated in this Contract and annexure of this
Contract. 

B. Rights and obligations of Party
B 

2.1  
Party B shall make use of its own resources, technology and personnel to develop
the detailed planning, feasibility analysis report, technology and construction
plans for all the individual items of the Project. 

2.2  
Party B shall Confirm that it has full understanding of the conditions and
circumstances of the construction site of the Project and guarantee 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. 

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

2.4  
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. 

2.5  
Party B shall select superb suppliers to provide software and hardware systems
required by the construction of the Project; Party B shall also select
enterprises with quality as sub-contractors to provide services required by the
Project. Party B shall be held responsible to Party A for the acts of the
selected suppliers, sub-contractors and other auxiliary employees. 

2.6   Party B shall be
responsible for the organization, construction, management, coordination and
implementation of the Project. 

2.7  
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. 

2.8  
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. 

2.9  
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 and be
reported in writing to Party A and the Supervisor. 

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

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

2.12  Starting
from the time when the whole of the Project is completed, acceptance check is
passed and the completed Project is delivered to Party A, the Project shall
enter the warranty period. During this warranty period, if any quality issue
arises, Party B shall be responsible for repair, replacement and return of the
goods together with the resulting expenses. 

2.13  Upon
request from Party A, 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 compilation of
information about the Project's completion. 

2.14  Party B
shall clean the construction site for trash and dismantle all temporary
facilities (upon Party A's instructions), and transport them to a place
designated by Party A so that they will be moved out of the site. 

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

2.16  Party B shall complete
all formalities and apply for all certificates in relation to the Project and
bear all the related costs. 

2.17  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. 

9 

2.18  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. 

2.19  Party B shall maintain
the system during its trial operation and guarantee period. 

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

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

Clause Seven        
Project Modifications 

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

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, otherwise they shall be deemed to have
approved such modification. 

Clause Eight        
Project Progress Verification and Confirmation 

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

Clause Nine        
Construction Safety 

10 

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 Shishi City. 

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 Ten        
Delivery of Materials, Equipments and Delivery Conditions 

1.    
Party B guarantees that all hardware equipments within the scope of this
Contract are brand new (including parts) and leading in technology in China, 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 required by 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. 

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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 take the responsibility to provide the "guarantees for repair,
replacement, or compensation for faulty product" to all the equipments supplied
by it or its suppliers. 

5.    
Destination of delivery of all hardware is Shishi City, Fujian Province. 

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. 

Clause Eleven        
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. 

12 

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. 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 Pary 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. 

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. 

13 

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. 

3.    
Developing, testing, acceptance checking, and trial running of application
software systems 

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. 

Within 5 business days after the
application system has been trial-run for 40 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. 

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. 

14 

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. 

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 Twelve        
Standards for Project Completion Acceptance Check 

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

15 

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. 

3.     The
Project shall meet the needs and requirements of Shishi City E-government
project. 

Clause Thirteen        
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 transferred to Party A after the passing of the whole Project completion
acceptance check. The warranty scope shall follow the relevant provisions of
this Contract. 

2.    
Technical support, warranty and free maintenance of the Project shall last for
one year, starting from the day of the passing of the whole Project completion
acceptance check. 

3.    
During the warranty period, if operational problem occurs to the software of the
application system, Party B shall send its staff to repair within 4 hours of
receiving notice of repair from Party A in order to maintain the normal
operation of the system. 

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 not caused by the deliberate destructive act of Party A, Party B shall
be responsible to repair such defects and to take up all the resulting
liabilities. 

6.    
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 of failure within 24 hours and
solve the problem in the quickest manner. If the system is unable to be restored
to its normal operation within 48 hours, Party B shall provide back up
equipments (systems) unconditionally to maintain the normal operation of the
system.

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

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

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

a.    
Damages due to deliberate destructive acts of Party A's personnel; 

b.    
Party A's personnel replace or repair major equipments or software without Party
B's consent; 

c.    
Services that are excluded from the scope of free warranty by laws and
regulations. 

For repairing damages in the above
situations, Party B shall be entitled to charge Party A for materials. 

10.   
The free warranty and technical support shall cover the hardware and software
products provided to Party A by Party B, its sub-contractors or suppliers as
stipulated in this Contract. 

11.   
Party B shall provide free technical support during the warranty period. 

Clause Fourteen        
Project Price, Contracting Method, and Price Adjustment 

17 

1.    
The total sum of this Contract (including project planning, feasibility
analysis, e-government training, system design, hardware, software,
installation, testing and training etc.) is RMB Three Hundred and Thirty Million
Only. ( 330,000,000.00). Pricing for each individual item is stated in the
addendum. The above price is the land price of Shishi City construction site,
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. 

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. If no mutual agreement can be reached after the consultation,
both Parties shall appoint jointly a qualified appraisal institution to conduct
appraisal, 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 15        
Payment and Settlement Methods 

1.    
5% of the total Project price shall be reserved and be settled when the whole
Project is completed and 5% of the total Project price shall be reserved as
deposit for the Project's warranty, after-sales service, training and technical
support service etc. 

2.     Payment
for the Project Price

18 

2.1   The
Project shall be constructed in separate phases. Both Parties agree that the
working capital to start the construction work of the Project shall be paid by
Party B in advance, the items that needs such payment in advance are as follows:

The planning of the Project:
RMB Two Million Only (¥2,000,000.00); The Feasibility
Report: RMB One Million and Five Hundred Thousand Only (¥1,500,000.00);
E-government Training: RMB Two Million Only (¥2,000,000.00);
Hardware Platform (including purchased equipments and system-integration) :
RMB Twenty Million Sixty Seven Thousand and Five Hundred Only (¥20,067,500.00);
Security Platform (RMB Eleven Million Nine Hundred and Forty Thousand Only.
  ¥11,940,000.00); Application Platform: RMB Seven
Million Four Hundred Sixty Five Thousand and Four Hundred Only.
  ¥7,465,400.00); Portal Website: RMB Two Million
and Five Hundred Thousand Only (¥2,500,000.00); Unified
Administration Approval System: RMB Twelve Million Eight Hundred and
Sixty Thousand Only. (¥12,860,000.00); Coordinated Office
System: RMB Eight Million and Two Hundred Thousand Only (¥8,200,000.00);
Total of the above (RMB Sixty Eight Million Five Hundred Thirty Two Thousand and
Nine Hundred Only. (¥68,532,900.00); 

Party A shall pay Party B 90% of the said total
amount (RMB Sixty Eight Million Five Hundred Thirty Two Thousand and Nine
Hundred Only
  ¥68,532,900.00), that is (RMB Sixty One Million Six
Hundred Seventy Nine Thousand Six Hundred and Ten Only
  ¥61,679,610.00) within 10 business days after the
completion of the first phase of construction of the Project and has passed the
acceptance check. 

2.2    Payment
method of price for the 2nd and 3rd phases of the Project

2.2.1        
Party A shall pay Party B 20% of the price of constructions of each phase within
5 business days after the commencement of the construction of each phase. 

2.2.2        
Party B shall submit the requirement analysis report of a commenced phase and
within 10 business days after Party A's approval of such requirement analysis
report for that phase Party A shall pay Party B 50% of the price of that phase.

19 

2.2.3         
After the installation, testing and passing of the acceptance check of the all
items in one phase, Party A shall pay Party B 20% of the price of that phase
within 10 business days. 

3.     Payment
at the completion of the Project 

Party A shall pay Party B the payment
for completion of the Project (5% of the total Project price) within 1 month
after the completion of the Whole Project and passing of the acceptance check.

4.     Payment for the Deposit of the Project's
After-sales Service 

Party A shall pay Party B the after-sales service
deposit (5% of the total Project price) within 10 business days after the date
of the warranty period has expired. 

Clause Sixteen        
Training 

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 loss, and
shall report on time the loss incurred and cost of repair. Damages to the
Project shall be borne by Party A, while personnel casualties, damages to
equipments and loss of Party B due to construction suspension shall be borne 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. If this Contract
is to be terminated, the interests already acquired by each Party shall be
returned to the other Party. 

20

Clause Eighteen        
Default Liabilities 

1.     Party B's Default Liabilities: 

1.1  
Party B shall bear the liabilities for the loss of Party A caused by Party B's,
its sub-contractors', suppliers' or auxiliary employees' default (hereunder
collectively referred to as "Party B"), and shall compensate Party A for its
loss and pay the penalty for the breach of this Contract. 

1.2   If
the construction of this 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 20% of
the total amount of the Project price. If the delay is more than 150 days, Party
B is deemed to be unable to fulfill this Contract and shall return to Party A
all the money it has received from Party A. Party B shall also pay to Party A
20% of the total amount of the Project price as breach of this Contract penalty.

1.3   
If Party B is unable to deliver any one of the systems in the Project as
required, it is deemed to be unable to deliver the whole Project. In such a
case, in addition to returning to Party A all the money that Party A has paid
for that system, Party B shall also pay as breach of this Contract penalty in an
amount equals to 10% of the total amount of the Project price. 

1.4   
If Party B is unable to satisfactorily fulfill its obligations of after-sales
service, any relevant service requirements and training services as stipulated
in the after-sales service clause under this Contract, and continue to be unable
to fulfill such obligations after receiving written notice from Party A, then
Party B shall pay to Party A as breach of this Contract penalty in an amount
equals to 5% of the total amount of the Project price. 

1.5    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 has the right to refuse accepting the equipments, and Party B is deemed to
be unable to deliver the equipments. 

21

1.6   If
Party B is unable to fulfill its obligation under this Contract or to meet the
technical requirements or system functions specified in the technical plan
appraised by experts; Nevertheless, after receiving written notice from Party A
, Party B is still fail to make amendment, or the amendment made is still fail
to be in compliance with the technical requirements or system functions as
specified in the technical plan or bidding document, then Party A has the right
to demand Party B to terminate the Project, return all the money Party A has
paid, and to pay as breach of this Contract penalty in an amount equals to 20%
of the total amount of the Project price. 

2.     Party A's Default Liabilities: 

2.1  
Party A shall bear the liability for loss of Party B caused by Party A's default
and bear the resulting costs. If such default caused the construction schedule
to be delayed, the construction period shall be extended accordingly. 

2.2   
If Party A demands returning of goods due to its own default, then Party A shall
pay to Party B as breach of this Contract penalty in an amount equals to 20% of
the value of the returned goods. 

2.3   If
the Project can not be completed as scheduled pursuant to the provision under
this Contract due to Party A's or the Supervisor's default which leads to Party
B's loss, then the defaulting party shall pay to Party B as breach of this
Contract penalty in an amount equals to 0.5% of the total amount of the Project
price for each business day of delay, but the total amount of the breach of this
Contract penalty shall not exceed 10% of the total amount of the Project price.

2.4   If
Party A demands replacement of equipments so as to improve design standards or
that it has other proper justifications such as related administration reforms
are impeded which results in the construction schedule being delay. In such
situation, neither Party shall bear the default liabilities but Party A shall
make appropriate compensations to Party B. 

22

2.5   
If Party A is unable to make payment to Party B on time as stipulated in this
Contract and material loss of Party B is resulted, then Party A shall make
compensation to Party B in accordance with the condition of loss. 

3.     Common Clause: 

3.1  Payment of breach of this
Contract penalty does not exempt the obligations of both parties to continue to
fulfill this Contract. 

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

Clause Nineteen        
Alteration and Cancellation of the contract 

Unless stipulated in this Contract, neither party can alter
or cancel this Contract unilaterally. Alteration 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 authorized representatives from
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 materially breaches this Contract and causes it to be unable to be
fulfilled further, then the non-defaulting Party may notify its counterpart to
terminate this Contract, and demand it to bear the default liabilities, to
compensate for all the resulted economic loss and to pay the penalty for breach
of this Contract. 

2.     This
Contract can be terminated upon the mutual agreement of both Parties. 

Clause Twenty-one        
Resolution of Disputes 

23 

If the two Parties have disputes over the explanation or
execution of any of the clauses in this Contract or any issues related to the
Project, then friendly consultation shall be pursued. If the consultation fails,
arbitration may be applied for or lawsuit may be constituted in a court. 

Clause Twenty-two        
Miscellaneous 

1.    
Party B shall choose qualified enterprises to be its sub-contractors. Party A
has the right to examine the qualifications of the sub-contractors and
suppliers, which Party B shall cooperate in such examination. Party B shall bear
the legal liabilities to Party A for acts of the sub-contractors and suppliers.

2.    
For any issues that this Contract does not address, both Parties shall consult
with the other to resolve. If during execution of this Contract, other
provisions or supplementary materials shall be needed, then both Parties shall
reach mutual agreement about them and execute them. The executed supplementary
provisions possess identical legal effect as this Contract. 

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

Clause Twenty-three        
Effect of this Contract 

This Contract becomes effective
immediately after the representatives from both Parties have signed and sealed
with the respective Party's chop. This Contract has four copies with Party A and
Party B each holds two copies, and all these 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 herein have been fulfilled and realized. 

Addendum "The construction fees of items of Shishi
City E-Government Project" 

 

24

Party A :                
Shishi City Information Management Company Limited 

Representative :    (signed and sealed) 

 

Party B :                
Expert Network (Shenzhen) Co. Ltd. 

Representative :   (signed and sealed) 

 

Signing Place:       Shishi City of Fujian
Province 

 

25

Addendum: 

The construction fees of items of Shishi City
E-Government 

	
    Phase
	
    Description
	
    
    Construction
    Fees

    
     (in RMB)

	
    Items of Preliminary stage
	
    Planning of the Project	
    ¥2,000,000.00
    
    

	
    Feasibility Report	
    ¥1,500,000.00
    
    

	
    E-government Training	
    ¥2,000,000.00
    
    

	
    1st 

    Phase

    	
    Hardware Platform(Purchased Part)	
    ¥17,450,000.00
    
    

	
    Hardware Platform(System Integration Part)	
    ¥2,617,500.00
    
    

	
    Security Platform	
    ¥11,940,000.00

	
    Application Platform	
    ¥7,465,400.00
    
    

	
    Unified Administration Approval System	
    ¥12,860,000.00
    
    

	
    Portal Website	
    ¥2,500,000.00
    
    

	
    Coordinated Office System	
    ¥8,200,000.00
    
    

	
    2nd  

    Phase

    	
    Geography Information System	
    ¥24,520,000.00
    
    

	
    Emergency Commending System	
    ¥18,447,100.00
    
    

	
    Auxiliary Decision System	
    ¥17,800,000.00
    
    

	
    Social Medical Security Information System	
    ¥46,000,000.00
    
    

	
    One Card Communication System	
    ¥35,600,000.00
    
    

	
    3rd 

    Phase

    	
    Information Resource Library	
    ¥6,100,000.00
    
    

	
    E-Commerce System	
    ¥113,000,000.00
    
    

	
    Total
	
    ¥330,000,000.00
    
    

 

26China Expert Technology Inc.: Exhibit 10.43 - Prepared by TNT Filings
Inc.

  

   

  
   

  
   

    
    Jinjiang Society Medical Insurance Information System Project
    
  

  
   

  
   

  
   

  Main Contract

  
   

  
   

  
   

  
   

   

   

  
  
  Contract
  Number: Jin Gong He Number 05040

  
  Appointer
  (A): Jinjiang Gongcheng Management Services Co., Ltd and

  
  Appointee
  (B): Expert Network (Shenzhen) Co., Ltd.

  
  Signing
  time: December 29, 2005

  
  Signing
  Place: Jinjiang City, Fujian Province

  

   

  
 

  
  Party B has
  been accumulated abundantly experience as a result of Jinjiang City
  e-government construction project which was awarded by Party B.  Party A
  formally appoints Party B to undertake the project of Jinjiang City Society
  Medical Insurance Information System. 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, voluntary, fairness and good faith, upon
  mutually consultation, both Parties A and B have reached the following terms
  for both parties to comply with.

  
   

  
  Clause One              
  Definitions, Enactment and Regulations

  1.          Definitions

   

  The following words and expressions
  shall have the meaning as assigned hereunder unless stated otherwise in this
  Contract:-

   

  
  (1)      ''Project'' means the
  project of Jinjiang Society Medical Insurance Information System that Party A
  appoints Party B to undertake.  

   

  
  (2)       ''Party A'' means the
  party who is appointed by Jinjiang Government and undertakes the investment
  and appointment of main-contractor responsibility, i.e. the Jinjiang Gongcheng
  Management Services Co., Ltd.

   

  
  (3)       ''Party B'' means the
  party who performs the works of the Project, i.e. ''Expert Network Development
  (Shenzhen) Company Limited'',.

   

  
  (4)       ''Supervisor'' means a
  person or company who is appointed to monitor the Project.

   

  
  (5)        ''Sub-contractors'' means
  a person or company who performs the individual work of the items of the
  Project.

  
   

  
  2.       Laws and Regulations

   

  
  This Contract shall be governed by and construct in accordance
  with the ''Contract Law'' and related regulation and rule of the time being in
  force in Peoples Republic of China.

  
   

  
  2

  

   

  
   

  
  Clause
  Two                  Specifications of Project

   

  
  Party A appoints Party B to undertake the works of the Society Medical
  Insurance Information System Project, including the research, design,
  performance and professional training of the Project.  Party B shall be
  responsible for the purchase, installation, integration, testing, maintenance,
  development and training of the materials and appliances relevant to the
  Construction Items (including hardware and software), together with all the
  works that are required for the normal construction, testing and operation of
  these Construction Items notwithstanding that they are not expressly referred
  to in this Contract.  

  
   

  
  For detail specifications of the project see the Addendum in the contract
  Party A shall appoint professional information technology supervising company
  (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 this project with due diligence and assume full
  responsibility for the completion of the entire project.

   

  
  Clause Three                 
  Project Construction Site

   

  
  1.          The Project is situated
  at Jinjiang City, Fujian Province.

  
   

  
  3

  

   

  
  2.          Beforehand, Party B has
  adequately understood the situation of Party A and laid down relevant policies
  upon taking into considerations all the factors that would affect the
  construction.

   

  
  3.          Party B shall do all
  the preparations before the commencement of the construction, including laying
  down construction implementation plans with its suppliers, organizing and
  arranging construction workers and providing basic working and living
  conditions for these workers.

  
   

  
  Clause Four             
  Time for Completion, Progress Management and Time Adjustment

   

  
  1.          This Contract shall be
  commenced on January, 2006 and the overall construction period last for 10
  months.  This construction period represents the total duration for the
  completion of the Jinjiang Society Medical Insurance Information System
  Project.  

   

  
  2.          Party B shall apply
  systematic engineering management towards the Project and assuredness that the
  Project will be completed on schedule.

   

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

   

  
  4.          Once the progress plan
  of the Project is accepted by Party A, Party B shall strictly comply with it
  and shall not make any modification at its own choice.

   

  
  5.          If the Project is
  delayed without Party B's default, Party A shall coordinate actively with
  Party B under the actual condition so as to ensure that the Project is
  completed as scheduled.  For the remaining works, Party B shall take effective
  measures to ensure that the remaining works are finished with those works.

   

  
  6.          The schedule of the
  Project can be adjusted after it is approved by Party A under any of the
  following circumstances:

   

  
  4

  

   

   

  
  (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
  routes as requested by Party A).

  
  (2)       Force majeure

  
  (3)       Other cases as are stated
  in this Contract.

  Party B shall report in writing to Party A about the detail of delay within
  three days of occurrence of the above circumstances. Party A shall then reply
  within five days after it has received the reports and ponderable.

   

  
  Clause Five                 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 examine and approve construction reports and reports regarding design
  alteration, alteration of the Project and construction schedule adjustments
  submitted by Party B and handle the matter regarding payment of the
  construction money.

   

  
  3.          Party A has the right
  to examine the progress and quality of the Project at any time, demands Party
  B to provide the monthly progress report and other related reports concerning
  the construction of the Project.

   

  
  4.          In case Party A finds
  that Party B's employees, its sub-contractors or suppliers are unable to fulfill their corresponding responsibilities, Party A has the right to request
  Party B to replace them and Party B shall carry out such replacement as
  requested. Otherwise, Party A shall be entitled to terminate this Contract and
  request Party B to assume liability for the relevant compensation.

   

  
  5.          Party A shall make the
  down payment to Party 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 reimbursement.

   

  
  6

  
 

  
  7.          Party A shall provide
  Party B with the related documents of the Project.

   

  
  8.          Party A shall provide
  decision in writing within the time agreed upon by both Parties whenever such
  decision is required 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 agreed time to communicate with Party B. Notice
  shall be given to Party B prior to the replacement of such representative.

   

  
  10.        Party A shall notify the
  selected Supervisor in writing about the authorized rights of Party B and the
  duties, division of labour 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
  obligations set in this Contract and is liable to compensate Party B's
  economic loss when in default.

   

  
  12.        Party B can request Party A
  for the damages compensation during in the construction period, if the cause
  of default is not arising from Party B.

   

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

   

  
  14.        Other rights and
  obligations stipulated in this Contract and annexure of this Contract.

   

  B.       Rights and obligations of
  Party B

   

  
  1.          Confirms that it has
  full understanding of the conditions and circumstances of the construction
  site and guarantees to complete the Project within pre-set time and meet the
  pre-set quality standards contemporaneously without additional expenditure,
  unless otherwise stated in the contract.

   

  
  2.          Propose construction
  implementation plan for the Project and implement such plan upon the approval
  of Party A and the Supervisor.

   

  
  6

  
 

  
  3.          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.          Select superb suppliers
  to provide software and hardware systems required by the construction of the
  Project.  

   

  
  5.          Be responsible for the
  organization, construction, management、coordination
  and implementation of the Project.

   

  
  6.          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.          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 records 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.          Manage construction
  safety according to requirements of the construction safety norms. Sets 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 shall be handled actively (bearing all the incident cost) and be
  reported in writing to Party A and the Supervisor.

   

  
  9.          Submit monthly
  construction schedules and monthly progress reports of the Project to Party A.

   

  
  10.        Accept monitoring and
  inspection by Party A's on-site management personnel and facilitates for such
  daily inspection.

   

  
  7

  
 

  
  11.        Starting from the time when
  the whole of the Project is completed, acceptance check is passed and the
  completed Project is delivered to Party A, the Project shall enter the
  warranty period. During this warranty period, if any quality issue arises,
  Party B shall be responsible for repairs, replacement and the returning of the
  goods together with the resulting expenses.

   

  
  12.        Upon request from Party A,
  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 compilation of information about the Project's
  completion.

   

  
  13.        Clean the construction site
  for trash (including inside building) and dismantles all temporary facilities
  (upon Party A's instructions), and transports them to a place designated by
  Party A so that they will be transported out of the site.

   

  
  14.        Coordinates with other
  professional sub-contractors.

   

  
  15.        Completes all formalities
  and apply for all certificates in relation to the Project and bears all the
  related costs.

   

  
  16.        Party B is 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 has 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.        Maintains the system during
  its trial operation and guarantee period.

   

  
  19.        Provides the entire set of
  documents mentioned in this Contract.

   

  
  20.        Provides adequate
  professional training in relation to the Project.

   

  
  21.        Party B shall satisfactory
  the project requirement and completion.

   

  
  22.        Other rights and
  obligations stipulated in this Contract and annexure of this Contract.

   

  
  8

  

   

  
  Clause Six               Project Price,
  Contracting Method, and Price Adjustment

   

  
  1.          The total sum of the
  contract (including hardware, software, installation, testing and training
  etc.) is RMB Four Six Million Yuan. (¥ 
  46,000,000.00).  Pricing for each item is stated in the addendum.

   

  The above price is Jinjiang City
  construction site price, and encompasses all fees and taxes required by the
  China and all local government authorities.

   

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

   

  
  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 take care of the increased cost. 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 stated,
  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 Seven              
  Payment and Settlement Methods

   

  1.          5% of the total Project
  price shall be reserved as retention money.

   

  2.          Payment for the Project
  Price

   

  
  9

  

   

   

   

  
  2.1       Party A shall pay Party B
  30% of the total sum of the contract, i.e. RMB Thirteen Million and Eight
  Hundred Thousand Yuan (¥13,800,000.00) within 10
  days after the contract has been signed.  

   

  
  2.2       Party A shall pay Party B
  50% of the total sum of the contract, i.e RMB Twenty Three Million Yuan (¥23,000,000.00)
  within 5 days after the delivery and successful installation of the hardware
  and equipment and software system.

   

  
  2.3        Party A shall pay Party
  B 15% of the total sum of the contract i.e. RMB Six Million and Nine Hundred
  Thousand Yuen (¥ 6,900,000.00) within 5 days after
  the passing of acceptance check.

   

  
  2.4        Party A shall make a
  lump sum payment to Party B for the construction maintenance settlement fund
  (5% of the total contract sum), i.e. RMB Two Million and Three Hundred
  Thousand Yuan Only (¥2,300,000.00), within 5 working
  days after one year free repair within the guarantee period has been expired,
  the guarantee period is counted from the date of program has been checked and
  being accepted.

  
   

  
  Clause Eight              
  Project Modifications

   

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

   

  
  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 it needs to 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 Nine    Delivery of Materials and
  Equipments and Delivery 

   

  
  10

  
 

  
  Conditions

   

  
  1.          Party B guarantees that all
  hardware equipments within the scope of this Contract are brand new (including
  parts) and leading in technology in China, 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 required by 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.

   

  
  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 take the
  responsibility to provide the ''guarantees for repair, replacement, or
  compensation for faulty product'' to all the equipments supplied by it or its
  suppliers.

   

  
  5.          Destination of delivery of
  all hardware is Jinjiang City e-administration network management center.

   

  
  6.          Party B shall deliver the
  complete sets of documents (including warranty, 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 place 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
  equipment that do not meet requirements shall be transported out of the site
  unconditionally and 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.

   

  
  11

  
 

  
  9.          If Party B uses
  substitutions for the software and hardware systems stipulated on the bid
  documents, they shall first be examined and approved by the Supervisor, and to
  be further approved in writing by Party A thereafter. The properties of those
  substitutions shall meet the requirements of the design and be better than the
  originally required software and hardware systems. However, such substitutions
  shall not mitigate any of Party B's obligations designated in this Contract.

  
   

  
   

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

   

  Party B shall provide
  ''Detailed
  Technology Plans'' and ''System Implementation Plans'' 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 acceptance check. 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 lower than those of the originally required products, and such changes
  shall first be approved in advance by Party A and the Supervisor. After the
  acceptance check, Party A, the Supervisor and Party B shall sign acceptance
  check reports for the delivered products

   

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

  

  Party B shall propose a preliminary installation plan in ten days before the
  hardware system installation of the Project and Party B shall begin the
  installation after receiving confirmation from Party A (the confirmation shall
  be issued within 5 working days).  After the installation and testing of each
  sub-system, Party B shall submit acceptance check application report to Party
  A. 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 and 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
  material, 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.

   

  
  12

  
 

  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 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
  inner inspection on the hardware system within 5 business days.

  

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

   

  
  3.          Developing, testing,
  acceptance checking, and trial running of application software systems

  

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

  

  During the developing cycle of each application system, Party B shall complete
  the developing and testing of each application system software. After the
  system has been installed, Party A shall conduct preliminary inspection of the
  system within 5 business days, and it shall be put into trial running only if
  the inspection is satisfactory. 

   

  
  13

  
 

  
   

  

  During in the trial-run period, Party A shall propose modification and
  perfection suggestions in writing to Party B. Party B shall finish such
  modification and perfection of the system software and apply to Party A for
  system inspection. Party A shall conduct the final inner inspection on the
  software system within 5 working days.

  

  Party B shall guarantee that the development, testing, trial running,
  perfection, installation, training and acceptance checking are all completed
  within the application system working cycle as agreed in the bidding document.

  
   

  
  Clause Eleven                        
  Standards for Project Completion Acceptance Check

   

  
  1.          The Project shall conform
  to relevant laws, regulations, and 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 relevant government departments.

   

  
   

  
  Clause Twelve               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 transferred to
  Party A after the passing of the whole Project completion acceptance check.
  The warranty scope shall follow the relevant provisions of 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 may have perform the repair and let
  Party B bear all the expenses as well as loss.

   

  
  14

  
 

  
  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 issues.

   

  
  5.          For quality defects of the
  Project during or before the warranty period that are caused by Party B's
  failure to comply with the provisions of the 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.

   

  
  6.          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 way. In order to restore the normal operation of the system, the
  problem must be solved or substituting products must be found within 24 hours.

   

  
  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 warranty:

  
  
  a.         Damages due to deliberate
  destructive acts of Party A's personnel;

  
  b.         Party A's personnel replace
  or repair major equipments or software 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.        The warranty and technical
  support cover hardware and software products provided to Party A by Party B.

   

  
  15

  
 

  
  11.         As request by Party A, the
  technology documents shall be in detail, easy to learn and satisfy the
  operation need of the installation and maintenance workers.

   

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

   

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

   

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

   

  
  Clause Thirteen               Training

   

  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 Fourteen           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 loss, and shall report on time the loss incurred and cost
  of repair. Damages to the Project shall be borne by Party A, while personnel
  casualties, damages to equipments and loss due to construction suspension of
  Party B shall be borne 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. If this Contract is terminated, the interests already
  acquired by each Party shall be returned to the other Party.

  
   

  
   

  
  Clause Fifteen           Default Liabilities

   

  Party B's Default Liabilities:

   

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

   

  
  2.      If the construction can not
  be proceed according to the construction schedule because of Party B's doesn't
  accord to the implementation plan to execute, then B shall pay to Party A 0.5%
  of the total amount of the contract as breach of contract damages for each
  business day of delay. The total amount of breach of contract damages shall
  not exceed 1% of the total amount of the contract.  

   

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

   

  
  4.      If Party B is unable to
  satisfactorily fulfill the after-sales service clauses as stipulated in the
  contract, relevant service requirements and training requirement, and still
  fails to fulfill the said requirements in accordance with the 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 with the requirements in the contract, then Party A has
  the right to refuse accepting the goods, and Party B is deemed as unable to
  deliver the equipments.  

   

  
  6.      If Party B is unable to
  fulfill the contract or to meet the technical requirements or system functions
  as specified in the bidding proposal, and still fails to fulfill the said
  requirements in accordance with the contract after receiving written notice
  from Party A, then Party A has the right 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 contract damages in the
  amount of 20% of the total amount of the contract together with other economic
  loss Party A suffered.

   

  A's Default Liabilities:

   

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

   

  
  2.      If 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 contract damages.

   

  
  17

  
 

   

  
  3.      If the project cannot be
  completed as scheduled in the 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 amount of the contract as
  breach of contract damages fro each business day of delay, but the total
  amount of the breach of contract damages shall not exceed 10% of the total
  amount of the contract.

   

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

   

  Common Clause:

   

  1.      Payment of breach of
  contract damages does not exempt the obligations of both parties to continue
  to fulfill 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.

   

  
  Clause Sixteen              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 authorized
  representatives of both Parties. These written records shall constitute part
  of this Contract and possess identical legal effect.

  
   

  
  Clause Seventeen              
  Termination and indemnity of Contract

   

  
  1.          If any party breaches the
  contract and causes it to be unable to be fulfilled further, then the other
  party may notice its counterpart to terminate the contract, and demand it to
  bear the default liabilities, to compensate for all the resulted economic
  loss.

  
   

  
  18

  
 

  
  2.          If Party A does not make
  any payment in accordance with the contract or compensate Party B for any loss
  suffered so that claims arise, 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 the contract and causes Party A to suffer economic loss
  or the construction scheduled being delayed and claims arise, 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.

  
   

  
  Clause Eighteen               Resolution of Disputes

   

  If the two parties have disputes on
  explanation or execution of clauses of the 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 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 issue
  quality arises, the technical unit appointed by the national and local
  government shall conduct adjudication as to the quality in dispute. The result
  of such adjudication shall be final and both parties shall accept.

  
   

  
  Clause Nineteen           Miscellaneous

   

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

   

  
  19

  
 

  2.      Addendum of the contract
  are integral part of the contract  

   

  3.      If the terms of the
  Addendum are contradictory to that of the contract, then the terms of the
  contract shall be executed.

  
   

  
  Clause Twenty              Effect and
  Termination of this Contract

   

  The contract becomes effective
  immediately after the representatives of both parties have signed and put
  official seals on it. The contract has four copies, with each party holds two,
  and all the copies possess identical legal effect.

   

  Addendum of the contract possesses
  identical legal effect as the contract.

   

  The contract is effective until
  requirements of all clauses of the contract have been fulfilled and realized.

  
   

  Addendum
  ''The tariff
  of Society Medical Insurance Information System of Jinjiang City''

   

   

  A:Jinjiang
  Gongcheng Management Service Co., Ltd.(Sealed)

   

   

  representative:  ____________(Signature)

  
                                    YY   MM   DD

   

  B:Expert
  Network (Shenzhen) Co., Ltd. (sealed)

   

   

  Representative:____________(Signature)

  
                                    YY   MM   DD

   

  
  20

  
 

  Addendum:The
  Tariff of Society Medical Insurance Information System of Jinjiang City

   

  A.     The Tariff
   

   

  	
      Items
	
      Price

	
      Network Products
	
      
      ¥1,699,400.00

	
      PC Server and
      Accessory
	
      
      ¥2,731,500.00

	
      Mini Set and
      Accessory
	
      
      ¥9,319,000.00

	
      Spare Parts
	
      
      ¥1,103,000.00

	
      Medical System
      Software
	
      
      ¥15,320,000.00

	
      Social System
      Software
	
      
      ¥15,900,000.00

	
      Total
	
      ¥46,072,900.00

	
      Final Price
	
      ¥46,000,000.00

   

  
  21

  
 

   

  B.     The breakdown
  of Society Medical Insurance Information System items

   

  	
      Items
	
      Name and Model
	
      Qty
	
      Unit Price
	
      Amount

	
      
       

      
      Network

      
      Products

      
       

      
       

      
       

      
       

      
       

      
       
	
      Intel 550T Interchange Computer
      
      
	
      2
	
      
      ¥250,000.00
	
      
      ¥500,000.00

	
      1000SX Module      ES500MSXSST
	
      2
	
      
      ¥15,000.00
	
      
      ¥30,000.00

	
      3 meter Optical cord
	
      2
	
      
      ¥8,000.00
	
      
      ¥16,000.00

	
      Intel 510T Switchboard
	
      1
	
      
      ¥18,000.00
	
      
      ¥18,000.00

	
      Intel 520T Switchboard
	
      1
	
      
      ¥21,000.00
	
      
      ¥21,000.00

	
      Cisco PIX-515UR Firewall
	
      2
	
      
      ¥88,000.00
	
      
      ¥176,000.00

	
      4Port 10/100BaseT  NIC PIX-4FE
	
      2
	
      
      ¥15,000.00
	
      
      ¥30,000.00

	
      Cisco 3660 Router
	
      1
	
      
      ¥200,000.00
	
      
      ¥200,000.00

	
      NM-1CE1U Module
	
      1
	
      
      ¥100,000.00
	
      
      ¥100,000.00

	
      Cisco 3640 Router
	
      1
	
      
      ¥180,000.00
	
      
      ¥180,000.00

	
      NM-1FE-TX Module
	
      1
	
      
      ¥120,000.00
	
      
      ¥120,000.00

	
      NM-1CE1U Module
	
      1
	
      
      ¥120,000.00
	
      
      ¥120,000.00

	
      Intel Shiva D56 Visit Server
	
      1
	
      
      ¥180,000.00
	
      
      ¥180,000.00

	
      56Kdata Modern Module
	
      24
	
      
      ¥350.00
	
      
      ¥8,400.00

	
       

      PC server &

      Accessory
	
      xSeries 360 86863RX PC Server
	
      7
	
      
      ¥250,000.00
	
      
      ¥1,750,000.00

	
      IBM xSeries 350 86825RY PC
      Server
	
      5
	
      
      ¥95,000.00
	
      
      ¥475,000.00

	
      Hardware
	
      11
	
      
      ¥6,500.00
	
      
      ¥71,500.00

	
      Rack Set
	
      5
	
      
      ¥35,000.00
	
      
      ¥175,000.00

	
      Win. 2000 Adv. Ser. Operating
      System
	
      5
	
      
      ¥42,000.00
	
      
      ¥210,000.00

	
      Win. 2000 Server Operating
      System
	
      5
	
      
      ¥10,000.00
	
      
      ¥50,000.00

	
      Notebook and accessory

       
	
      IBM P670 Notebook
       
	
      2
	
      
      ¥2,850,000.00
	
      
      ¥5,700,000.00

	
      SHARK Floppy Disk Cabinet
	
      2
	
      
      ¥1,800,000.00
	
      
      ¥3,600,000.00

	
      Oracle 9i 60 users Data base
	
      1
	
      
      ¥19,000.00
	
      
      ¥19,000.00

	
      Spare Parts
	
      DLT 2/40Library of tapes
	
      1
	
      
      ¥652,000.00
	
      
      ¥652,000.00

	
      Optical fiber Channel Card
	
      1
	
      
      ¥66,000.00
	
      
      ¥66,000.00

	
      Legato Backup Software
	
      1
	
      
      ¥385,000.00
	
      
      ¥385,000.00

	
      Medical system
      Software
	
      The Information of medical
      Insurance Center System
	
      1
	
      
      ¥4,400,000.00
	
      
      ¥4,400,000.00

	
      The Information of Medical
      Organization System
	
      42
	
      
      ¥260,000.00
	
      
      ¥10,920,000.00

	
      
       

      
       

      
       

      
      Social Security System Software

      
       
	
      The Employment & unemployment
      insurance service management System
	
      1
	
      
      ¥2,400,000.00
	
      
      ¥2,400,000.00

	
      Pension Insurance Management
      System
	
      1
	
      
      ¥2,400,000.00
	
      
      ¥2,400,000.00

	
      Medical and maternity insurance
      management system
	
      1
	
      
      ¥2,400,000.00
	
      
      ¥2,400,000.00

	
      Work-related Accident
      Management System
	
      1
	
      
      ¥2,400,000.00
	
      
      ¥2,400,000.00

	
      Salary Saving Insurance
      Management System
	
      1
	
      
      ¥2,200,000.00
	
      
      ¥2,200,000.00

	
      Labour Relationship Management
      System
	
      1
	
      
      ¥2,100,000.00
	
      
      ¥2,100,000.00

	
      Skill Development Management
      System
	
      1
	
      
      ¥2,000,000.00
	
      
      ¥2,000,000.00

	
      Total
	
      
       ¥46,072,900.00

	
      Final Price
	
      
       ¥46,000,000.00

   

  
  22

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