Document:

fs12010a2ex10vi_chinagreen.htm

Exhibit 10.6

Kangcheng Massage Centre 

Consultancy Agreement

 

CONSULTANCY AGREEMENT

 

This Agreement is made on the 19th day of June 2006 between:-

 

(1)          DAI QINGCHOU(戴麽儒), holder of the Identity Card of China number 4425271960243355 of  中国广东省东莞市长安镇乌沙同达路同和一巷14号 (the "Proprietor"); and

 

	
(2)

	
GLORIOUS PIE LIMITED, a company incorporated with limited liabilities under the laws of British Virgin Islands whose registered office is situated at Sea Meadow House, Blackburne Highway, Road Town, Tortola, British Virgin Islands (the "Consultant").

 

 

Whereas:-

 

	
(A)  

	
The Proprietor is entitled to run a massage business in the Centre (Refer to Clause 2 and Schedule 1 for details) and has obtained all the licenses required by the laws of China and the Relevant Authorities (Refer to Schedule 2 for details).

 

	
(B)  

	
To introduce an effective operating system on energy saving and cost control, the Proprietor therefore appoints the Consultant to provide consultancy services on eco-operation and interior design of the Centre.

 

	
(C)  

	
In return for the consultancy services, the Proprietor shall pay the Consultancy Fee to the Consultant in accordance with Clause 6 of this Agreement.

 

It is agreed as follows:-

 

1.             INTERPRETATION 

 

1.1           Definitions

 

"Agreement" shall mean this Consultancy Agreement, together with the Schedules hereto, in each case as from time to time amended by the parties hereto and includes all Licences and consents granted under it,

 

"Centre" shall mean the Centre in the form and structure situated on the location as described in Schedule 1 operated under the name 康城休固中心 (Healthy City)".

 

  

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Consultancy Agreement

"Centre Employee" shall mean any person employed by the Proprietor or the Centre Manager at the Centre or elsewhere (whether on a full-time or part-time basis) in connection with the operation of the Centre, including the general manager, the director of marketing and the financial controller of the Centre (or serving such functions, regardless of the specific titles given to such individuals).

 

"Centre Manager" shall mean an individual or a company engaged and to be paid by the Proprietor for providing his expert services in managing the Centre in accordance with the terms set out in this Agreement and the relevant employment contract which shall be entered into between the individual or company and the Proprietor.

 

"China" shall mean the People's Republic of China.

 

"Confidential Information" shall mean any information of a confidential nature including, without limitation, details of guests of the Centre, contractual rates, supplier details, employees' salaries and wages, managers policies and procedures, information held on the reservation system of the Centre including guest history, direct mail database of customers, accounting and statistical information and any other information produced by the Centre Manager to the Proprietor relevant to the Centre. Notwithstanding the foregoing, the Centre Manager shall be entitled to use the Confidential Information in the normal course of their business to the same extent as similar information is used for all or groups of their Centres including, but not limited to and by way of example only, for marketing and guest tracking databases, direct mailings and sales activities, inclusion on reservation systems, development of best practices, financial analysis and use by professional advisers,

 

"Consultancy Fee" shall have the meaning ascribed to it in Clause 7.1.

 

"Fiscal Year" shall mean 1st July in one year to 30th June of the following year (both days inclusive) for all purposes, except that the first fiscal year shall commence on the date of execution of this Agreement and end on 30th June of the following year {both days inclusive) and the last fiscal year shall end on the date of the expiration of the Term (both days inclusive).

 

"Government" shall mean the Central Government of China.

 

"Hong Kong" shall mean the Hong Kong Special Administrative Region of China.

 

"Legal Requirements" shall mean:

 

  (i)    any ordinance or statutory provision, proclamation, rule, regulation, code, order, resolution, notice, rule of court, bylaw or other instrument (having the force of law); and

 

  

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Consultancy Agreement

	
(ii)   

	
any rulings, directions, guidelines and/or decision of any Relevant Authorities (having the force of law) for the time being in force in China applicable to or regulating the management or operation of the Centre or this Agreement, and "Legal Requirement" shall mean any one of them.

 

"Licences" shall mean all licences, permits, approvals, certificates (statutory or otherwise) in relation to the operation of the massage centre or the performance by the parties of their respective obligations hereof as required by the Relevant Authorities or institutions under the applicable laws and regulations of each party's place of incorporation and/or the location of the Centre.

 

"Relevant Authorities" shall mean any Government departments, Government agencies, public bodies, regulatory bodies and any bodies, boards, committees or panels formed under or pursuant to any ordinance or statutory provision, rule, regulation, order, resolution, notice, bylaw or other instrument having the force of law from time to time in China and any utility providers or companies, and "Relevant Authority" shall mean any one of them.

 

"Representative" shall mean an invidiual being a China citizen or a company incorporated under the laws of China whom the Consultant has appointed to receive any payments on its behalf in relation to this Agreement.

 

"Term" shall have the meaning ascribed to it in Clause 4;

 

"Total Centre Income" shall mean all income generated from any parts of the operation of the Centre.

 

	
1.2  

	
References in this Agreement to a "person' include an individual, company, partnership, joint venture, association, organisation or trust (in each case, whether or not having separate legal personality).

 

	
1.3  

	
Words importing one gender shall include all genders and words importing the singular shall include the plural and vice versa.

 

2.            THE CENTRE

 

The Proprietor confirms that the Centre is in the form and structure situated on the location described in Schedule 1.

 

3.            SCOPE OF WORK

 

The Consultant agrees to provide the following services:-

 

  

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Consultancy Agreement

3.1          Eco-operation Consultancy

 

	
         3.1.1  

	
to advise the Proprietor and the Centre Manager on the overall management and operation strategies on energy savings and cost control of the Centre; and

 

	
         3.1.2  

	
to introduce the state-of-the-art ecologically-friendly concept into the management and operations of the Centre in order to achieve sustainable development which shall in turn reduce the cost of operations of the Centre effectively.

 

3.2          Interior Design

 

	
        3.2.1  

	
to procure suitable professions to design the interior of the Centre in an eco-friendly and sustainable manner which shall not only save costs on energy-related expenses but also contribute to a better environment of Dongguan as a whole; and

 

	
         3.2.2  

	
to assist the Proprietor to supervise the decoration works derived from its design and to realize the same. The works are to be carried out by contractors engaged by the Proprietor with the consent of the Consultant of such an engagement.

 

4.           TERM

 

The term of this Agreement shall be a period of seven (7) years commencing from the date of execution of this Agreement (the "Term") and is renewable subject to the mutual agreement of the Proprietor and the Consultant.

 

5.            OPERATION

 

	
5.1

	
The Proprietor may consult the Consultant on the Centre operations.

 

	
5.2 

	
The Consultant is not entitled to name any entity to the board of directors responsible for the management of the Centre. The Consultant shall, however, be kept well-informed of the regular meetings of the management where strategic decisions in regards of the operations and financial issues of the Centre are made. The Consultant shall receive copies of the agenda and minutes of regular meetings and monthly revenue record for its information.

 

	
5.3 

	
The Proprietor shall have the sole discretion and authority in the selection and appointment of a Centre Manager who is to act as the exclusive operator and manager of the Centre and to supervise, direct and control the management, operation and promotion of the business of the Centre during the Term.

 

  

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Consultancy Agreement

	
5.4

	
The Centre Manager is authorized by the Proprietor to have the sole discretion and authority in the selection and employment of all Centre Employees necessary for the proper operation of the Centre. All costs and expenses in relation to and in connection with the employment of Centre Employees shall be borne solely by the Proprietor.

 

6.            LICENSES

 

	
6.1 

	
The Proprietor shall comply with all relevant regulations and laws of China in running the Centre business. The Proprietor shall have applied for and used its best endeavours to obtain and maintain in its own name all licences, permits and consents required in connection with the management and operation of the businesses of the Centre with effect from the date upon which the same are required. All costs and expenses for applying, renewing and maintaining of the licences and permits shall be borne solely by the Proprietor.

 

	
6.2 

	
The Proprietor hereby warrants and confirms that to his best knowledge there is no pending litigation and/or claim alleging a breach of the Centre on this licensing issue and undertakes to do all possible legal remedial acts and fully indemnifies the Consultant if there are any instances of breach.

 

	
6.3 

	
Subject to prior appointment with the Proprietor, the Consultant and its agents shall, throughout the Term, have the right to inspect all such licences and permits, for the purpose of ensuring its interest which might be adversely affected due to any possible interruptions of the operation of the Centre which may arise as a consequence of the absence of such licences or permits.

 

	
6.4 

	
Subject to prior appointment with the Proprietor (except in case of emergency), the Consultant and its agents shall, throughout the Term, have the right of reasonable access to all parts of the Centre (save for and except those parts which have been leased, licensed or occupied by guests, tenants or licencees) to enable the Consultant to evaluate the operation, upkeep, management and control of the Centre, and to ensure that the Centre Manager has duly complied with the conditions imposed under all relavant licences and permits.

 

7.            CONSIDERATION ANDY PAYMENT

 

7.1          Consideration

 

In consideration of the consultancy services contemplated in this Agreement, the Consultant shall be entitled to a montly payment of RMB 100,000 or 35% of the Total Centre Income (whichever higher), the amount of which shall be net of any costs that the Proprietor shall be solely responsible for (the "Consultancy Fee").

 

  

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Consultancy Agreement

7.2          Payment

 

	
         7.2.1  

	
For so long as this Agreement is in subsistence, the Consultancy Fee shail be paid by the Proprietor to the Consultant on a monthly basis, i.e. within five (5) Buisness Day after the monthly revenue record is booked.

 

	
         7.2.2  

	
Payments shall be made in cash or credited directly to the bank account of the Representative by way of cash transfer, the amount of which shall be net of any cost-deductions. The details of the bank account shall be provided as and when necessary.

 

	
         7.2.3  

	
All monies payable by the Proprietor shall be paid in full, free of any restrictions or conditions and without set-offs or counterclaims or otherwise. If any payments due under this Agreement are subject to any deductions or withholdings for any present or future fees, liabilities or other charges imposed by any competent governmental authority, then an additional amount shail be paid or reimbursed to the Consultant as is necessary so that the amount actually received by the Consultant equals the full amount payable or reimbursable under this Agreement.

 

8.    BOOKS AND RECORDS

 

8.1          Books and Records

 

	
          8.1.1  

	
The Proprietor shall procure and supervise the Centre Manager to keep accurate, full and adequate books of account and other records of the operation of the Centre in accordance with generally-accepted accounting principles adopted in Hong Kong.

 

	
          8.1.2 

	
Ail such books and records regarding the revenue of the Centre shall be kept at the Centre or such other place as the parties agree and shall be available to the Consultant during the Term and its agents to inspect, audit and take copies at the Centre (or such other place as the parties agree) at all reasonable times and upon prior appointment with the Centre Manager and without disruption to or interference with the normal operations of the Centre.

 

3.2          Revenue Records

 

The Proprietor shall deliver or procure the Centre Manager to deliver to the Consultant by the 15th day following the end of each calendar month, the documentation showing the revenue and turnover of the Centre for the preceding calendar month and the Fiscal Year to date and certified as true and correct by the financial controller of the Centre.

 

  

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Consultancy Agreement

9.           COVENANTS AND WARRANTIES

 

9.1          Covenants

 

Both the Proprietor and the Consultant covenant and warrant to perform all of their respective obligations as contemplated under the terms and provisions of this Agreement.

 

9.2          Warranties and Undertakings of the Proprietor

 

	
    9.2.1  

	
The Proprietor warrants that he is in the position with all the rights and powers under relevant laws and/or regulations of Relevant Authorities of China to enter into this Agreement;

 

	
    9.2.2  

	
The Proprietor warrants that he is entitled to the ownership and the exclusive right to use and engage in activities to generate income with the the Centre as described in Schedule 1;

 

	
    9.2.3  

	
All Licences required to run the Centre businesses as contemplated under this Agreement have been acquired and shall be renewed as may be required from time to time pursuant to Clause 6 including but not limited to those listed in Schedule 2 as required;

 

	
    9.2.4  

	
The Proprietor also warrants and confirms that there is no pending litigation / claim against him which may affect the title / ownership held of the Centre by him, etc.; and

 

	
    9.2.5  

	
The Proprietor undertakes to indemnify all losses of any sorts suffered by the Consultant pursuant to this Clause 9.2.

10.          DAMAGE, DESTRUCTION AND CONDEMNATION OF THE CENTRE

 

10.1        Damage or Destruction

 

If the Centre or any portion thereof shall be damaged or destroyed at any time during the Term by fire, water, storm, wind, typhoon, defective construction, white ants, earthquake, subsidence of the ground or any calamity which is not caused by the negligent act or default of the Proprietor, the Centre Manager or any or its servants, agents, employees, contractors or licensees (excluding guests staying at the Centre or visitors of the Centre) so as to make the Centre or the relevant portion thereof inaccessible, unfit or unsuitable for the operation of the Centre in accordance with the requirements set out in this Agreement and at a reasonable operating standard, the Proprietor shall with due diligence, repair, rebuild or replace the Centre so that after such repairing, rebuilding or replacement, the Centre shall be substantially the same as prior to such damage or destruction. At the Proprietor's option, with the written approval of the Consultant, the Centre Manager (or its nominee) shall arrange for such works to be carried out for and on behalf of the Proprietor. The Proprietor shall pay for the costs and expenses of such repairing, rebuilding and replacing out of its own funds.

 

  

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Consultancy Agreement

10.2        Condemnation

 

If the whole or any part of the Centre is condemned as a dangerous structure or a demolition order or closing order shall become operative in respect of the Centre or any part thereof so as to make the Centre or the relevant portion thereof inaccessible, unfit or unsuitable for the operation of the Centre in accordance with any requirements set out by Relevant Authority, the Proprietor shall, subject to compliance with such prohibitions or restrictions (if any) imposed by the Relevant Authority concerned, with due diligence, repair, rebuild or replace the Centre so that after such repairing, rebuilding or replacement, the Centre shall be substantially the same as prior to such damage or destruction. At the Proprietor's option, with the written approval of the Consultant, the Centre Manager (or its nominee) shall arrange for such works to be carried out for and on behalf of the Proprietor. The Proprietor shall pay for the costs and expenses of such repairing, rebuilding and replacing out of its own funds.

 

10.3        Indemnity on Damage or Destruction or Condemnation

 

Shall any of the incidents pursuant to Clause 10.1 or Clause 10.2 take place during the Term regardless of the person being held responsible for the same, the Proprietor agrees to indemnify all losses suffered by the Consultant derived from such temporary or persistent interruption of operation of the Centre. The exact amount of such indemnity to be paid shall be agreed upon and determined by mutual agreement between the Proprietor and the Consultant depending on the degree and duration of the actual interruption of the operation of the Centre.

 

11.       DEFAULT AND TERMINATION 

 

11.1     Events of Termination

 

The following shall constitute events of termination:

 

	
       11.1.1  

	
persistent and material failure of the Proprietor to pay the full sum of the Consultancy Fee due to the Consultant for a continuous period of thirty (30) days after two (2) written notice has been given by the other party;

 

	
       11.1.2  

	
failure of the Proprietor to supervise the Centre Manager to manage and operate the Centre in accordance with a reasonable operating standard in any material respect;

 

	
       11.1.3  

	
the failure of a party to perform, keep or fulfil any of the other covenants, undertakings, obligations, conditions, representations or warranties set forth in this Agreement which is capable of remedy and (a) if such fai)ure(s) has or have a material adverse effect on the operation of the Centre or the rights and duties of any party hereto and (b) if such failure is not remedied within thirty (30) days after receipt by the defaulting party of a written notice giving particulars of the breach and requiring it to be remedied;

 

  

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Consultancy Agreement

	
       11.1.4  

	
the filing of a voluntary-petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy law by any party and such party is not discharged within forty-five (45) days thereafter;

 

	
       11.1.5  

	
the consent to an involuntary petition in bankruptcy or insolvency or the failure to vacate within forty-five (45) days from the date of entry thereof any order approving an involuntary petition by any party;

 

	
     11.1.6 

	
the appointment of a receiver for all or any substantial portion of the property of any party, which appointment is not discharged within forty-five (45) days thereafter;

 

	
        11.1.7  

	
the entering of an order, judgment or decree by any court of competent jurisdiction, adjudicating any party a bankrupt or insolvent, or approving a petition seeking reorganization, or appointing a receiver, trustee or liquidator of all or a substantial part of such party's assets (except any dissolution or liquidation for the purpose of and followed by a reconstruction, amalgamation, reorganisation, merger or consolidation approved by the Proprietor, and except any proposed debt financing or refinancing other than when insolvent), and such party is not relieved thereof within forty-five (45) days thereafter;

 

	
        11.1.8  

	
any party ceases, or threatens to cease, to carry on business, and such cessation, or threatened cessation, shall continue for a period of forty-five (45) days thereafter: or

 

	
        11.1.9  

	
any party is required by law or compelled by any court or any competent government authority to terminate this Agreement, and such party is not relieved of such a requirement or compulsion within forty-five (45) days thereafter.

 

11.2  Termination on Sale of the Centre

 

In the event of the direct or indirect sale, transfer, assignment or other disposal of the Centre or any part thereof by the Proprietor or any agreement or arrangement the result or net effect of which is the direct or indirect sale, transfer, assignment, divestment, agreement, arrangement or other disposal of any interest (legal, beneficial, economic or otherwise) in the Centre the Proprietor shall be entitled to terminate this Agreement by giving a three (3) months written notice of termination to the Consultant with an abundant amount of compensation to the Consultant in form of cash payment, the amount of which is to be suggested by the Consultant and to be agreed by the Proprietor. The key consideration in determining the amount shall be the duration remaining in the Term.

 

  

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Consultancy Agreement

11.3  Effects of Termination

 

	
  11.3.1  

	
The rights of termination granted under this Agreement shall be without prejudice to any other right or remedies of any party in respect of the breach concerned or any other breach.

 

	
  11.3.2  

	
Any termination of this Agreement for any reason whatsoever shall not affect any rights or obligations incurred, or arising out of circumstances which have been existed prior to such termination.

 

12.          CONFIDENTIALITY

 

12.1       Confidentiality Obligations

 

Subject to Clause 12.2, each party shall keep confidential all Confidential Information and all information received or obtained pursuant to the provisions of this Agreement and all information received or obtained as a result of entering into or performing this Agreement which relates to:

 

	
12.1.1

	
the provisions of this Agreement and any other document referred to in this Agreement;

 

	
12.1.2

	
the negotiations relating to this Agreement; and

	
12.1.3

	
the other parties.

 

12.2        Permitted Disclosures

 

Any party may disclose information which would otherwise be confidential if and to the extent:

 

	
    12.2.1

	
required by the Legal Requirements;

 

	
    12.2.2

	
required by any securities exchange or regulatory or governmental body.wherever situated;

 

	
     12.2.3

	
required to vest the full benefit of this Agreement in any party or enforce this Agreement;

 

	
     12.2.4

	
such disclosure is to the professional advisers, auditors and bankers of any party or otherwise pursuant to the terms of this Agreement on the same confidential basis;

 

  

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Consultancy Agreement

	
     12.2.5

	
the information has come into the public domain through no fault of that party; and

 

	
12.2.6

	
the other parties have given prior written approval to the disclosure.

 

13.          FORCE MAJEURE

 

13.1        Exclusion of Liability

 

Subject to Clause 13, neither the Proprietor nor the Consultant shall be liable for any failure to observe or perform, or continue observance or performance of, any of its obligations or liabilities under this Agreement during the Term to the extent that, and for so long as, such observance or performance is prevented by an event of force majeure (as defined below) provided that the affected party gives to such other party immediate written notice of the occurrence of such an event with details of the event concerned, the extent of the prevention to which it gives rise, and any information then available as to its likely duration.

 

13.2        Force Majeure

 

For the purpose of this Clause 13, an "event of force majeure" is an event beyond the reasonable control of either party and which (including the consequential damage and effect) causes the whole or a substantial part of the Centre to be or become unsuitable for operation as a Centre or which causes the prevention of observance or performance of the said obligations or liabilities which could not reasonably have been avoided by that party, which shall mean boycotts, embargoes, governmental restrictions, any epidemics, pandemics and other infectious diseases (but excluding severe acute respiratory syndrome), terrorist attacks, wars, war-like actions, civil commotion riots, uprising, revolutions, earthquakes, other natural occurrence or any other event beyond the control of that party. For the avoidance of doubt, neither the Proprietor nor the Consultant (in either case, "Notifying Party") shall be excused from a Notifying Party's observance or performance of any of its aforesaid obligations or liabilities on the ground of an event of force majeure, unless that event of force majeure affecting such Notifying Party shail be beyond the reasonable control of such notifying party.

 

13.3        Information and Action

 

The party giving the notice shall at all times thereafter keep the other party informed and at its own costs and expenses take all reasonable actions and do all things as are within its reasonable control with a view to the cessation or removai, or the reduction to the maximum extent, (in each case as soon as possible) of the prevention of observance or performance concerned. All costs and expenses reasonably incurred by the Consultant under this Clause 13.3 shall be borne soleiy by the Proprietor.

 

  

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Consultancy Agreement

13.4        Cessation

 

Immediately upon any such cessation, removal or reduction (whether or not because of action taken by the party which gave the notice), that party shall give a further written notice to such other party to that effect and forthwith thereafter, that party shall observe or perform, or resume observance or performance of, (but in the case of any such reduction only to the extent thereof) the obligation and/or liability under this Agreement whose observance or performance was previously prevented by the relevant event of force majeure.

 

13.5        Further Notice to Terminate

 

If, within three (3) months after service of a notice under Clause 13.1, further notice has not been given under Clause 13.4 to the effect that the force majeure concerned has wholly ceased to cause and/or been removed from causing such prevention, either party may at any time after expiry of the said three (3) months give to the other not less than one (1) month's written notice to terminate the Term at the end of the notice period, such notice to provide that if during the notice period the force majeure concerned has wholly ceased to cause and/or been removed from causing such prevention and appropriate notice is given under Clause 13.4 to that effect then the written notice sea-ed under this Clause 13.5 shall be withdrawn.

 

14.          GOVERNING LAW AND JURISDICTION

 

14.1        Governing law

 

This Agreement shall be governed by and construed in accordance with the laws of Hong Kong. In the event of any dispute or controversy arising out of or related to this Agreement, the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of the courts of Hong Kong.

 

14.2        Service of Process

 

Each of the parties irrevocably agree that any writ or other notice of process, judgment or order shall be effectively served on it in connection with any suit, action or proceeding before the courts of Hong Kong if addressed and delivered to its registered office. However, nothing in the foregoing shall affect the right to serve any such document in any other manner permitted by the laws of Hong Kong.

 

  

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Consultancy Agreement

15.    MISCELLANEOUS

 

15.1        Interpretation

 

	
    15.1.1

	
The headings of the Clauses of this Agreement and all of Schedules are inserted for convenience only and are not intended to affect the meaning of any of the provisions.

 

	
    15.1.2

	
Ail Schedules to this Agreement are an integral part of this Agreement and ail terms defined in this Agreement and the Schedules shall have the same meaning throughout this Agreement and its Schedules.

 

	
    15.1.3

	
References in this Agreement to "Clauses" and "Schedules" are, except the context otherwise requires, references to the clauses of and schedules to this Agreement.

 

15.2        Non-Waiver

 

The failure of either party to insist upon strict adherence to any provisions of this Agreement on any occasion shall not be considered as a waiver of any right thereafter to insist upon strict adherence to that provision or any other provision of this Agreement.

 

15.3        Severability

 

Should any of the provisions of this Agreement, or portions thereof, be found to be invalid by any court of competent jurisdiction, the remainder of this Agreement shall nonetheless remain in full force and effect.

 

15.4        Modification

 

No modification of, addition to or waiver of any of the terms and condition hereof or any of the rights, obligations or defaults under this Agreement, shall be effective unless made in writing and signed by all parties to this Agreement.

 

15.5        Approvals

 

Whenever any party is requested under this Agreement to give its approval, consent or expression of satisfaction or acceptability to any matter, such approval, consent or expression of satisfaction or acceptability shall be given in writing, and shail not be withheld or delayed unreasonably unless this Agreement otherwise expressly provides. If a party shall desire the approval, consent or expression of satisfaction or acceptability of the other party hereto to any matter, such party shall give notice to such other party that it requests such approval, consent or expression of satisfaction or acceptability, specifying in such notice the matter as to which such approval, consent or expression of satisfaction or acceptability is requested.

 

  

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Consultancy Agreement

15.6        Notice

 

Any notice, notification or other communication under or in relation to this Agreement shall:

 

	
    15.6.1

	
be given or made in writing and shall be delivered by hand to, or sent by prepaid post or by facsimile to the appropriate person, address or facsimile number previously communicated for that purpose by the parties to this Agreement, or such other address or facsimile number as the party to which it is given or made may have for the time being substituted therefore by notice in accordance with this Clause 15.6 to the party giving or making the same; and

 

	
    15.6.2

	
in the case of delivery:

 

	
  

	
(i)

	
by hand or sending by post be effectively given or made upon receipt at that address;

 

	
  

	
(ii)

	
by facsimile be deemed to be effectively given or made upon production of a transmission report by the machine from which the facsimile was sent which indicates that the facsimile was sent in its entirety to the facsimile number of the recipient and provided that a hard copy of the notice so served by facsimile was posted the same day as the notice was served by electronic means.

 

15.7        Rights of Inspection

 

The Consultant and its agents shall have the right to inspect and access the Centre during the Term upon prior appointment with the Centre Manager. Such inspections shall be conducted without disruption to or interference with the normal operations of the Centre.

 

15.8        Interpretation of Covenants

 

Any obligation on the Proprietor and/or the Consultant not to do and/or not to omit anything shall include an obligation not to permit or suffer that thing to be done or omitted.

 

15.9        Statutes

 

Any reference in this Agreement to any ordinance or any other statute, regulation, by-law, direction, guideline, recommendation or other provision (by whatever name called), or to any section, article, paragraph or other part of any of the foregoing, shall be deemed to be a reference to the same as for the time being amended, modified, added to or re-enacted.

 

 

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Exhibit 10.7

 

DATED THIS                        DAY OF                                20     

 

 

Between

 

 

GLORIOUS PIE LIMITED

 

and

                                                                      

 

	 
	 
	SUPPLIERS AGREEMENT
	 

  

1

  

 

SUPPLIERS AGREEMENT

 

THIS AGREEMENT is made on the          day of                                       

  

BETWEEN

 

	(1)	GLORIOUS PIE LIMITED (the "Company"), a company incorporated with limited liability in the British Virgin Islands having its registered office at Sea Meadow House, Blackburne Highway, Road Town, Tortola; and
	 	 
	(2)	
                                                                                                                                                                                                                                                                         

                                                                                                                                                                                                                                          (the "Supplier")

 

IT IS HEREBY AGREED as follows: 

 

WHEREAS:-

 

	
(A)  

	
The Company specializes in provision of greenery consultancy services and trading business, inter alia, trading of Materials for landscape and ecological improvement projects. The Company provides Materials from its own supply or trade the Materials as a trader by purchasing Materials from suitable suppliers for the resale to its own clients.

 

	
(B)  

	
The Supplier specializes in growing, supplying, planting and maintaining seedlings and providing materials, including soil and other physical substances to be used to carry out and complete the Projects.

 

	
(C)  

	
The Company has entered and/or shall enter into various agreements for Materials trading (the "Trading Agreement for Materials ") with various PRC companies specializing in landscape engineering and ecological improvement-related works (the "Clients") for various projects from a period of 2006 to 2016 (the "Projects" and each of them the "Project").

  

2

  

	
(D)

	
This Agreement sets out the principal terms upon and subject to which the Company agrees to trade the Materials with the Supplier for a consideration. The Supplier also provides the Materials planting and maintenance services for the Clients and with other completion arrangements to be specified in the Termsheet (as defined in Clause 1 hereunder and shown in Schedule I). Materials supplied to the Client shall be used in the Projects under the Trading Agreement for Materials.

 

	
(E)

	
Method of payment by the Company to the Suppliers are set forth in Clause 2 of this Agreement.

 

	
(F)

	
The Company shall procure the Client and the Supplier to enter into a separate agreement which shall set out the terms between the two parties in accordance with the Trading Agreement for Materials and this Agreement (the "Separate Agreement(s)") in respect of the scope of work. The Separate Agreements are governed by and executed according to the laws of the PRC and shall only come into effect when the Company is declared bankrupt or sued by any party in any legal proceedings (a "Triggering Event"). The purpose of signing the Separate Agreements is to mitigate the risks of having uncompleted Work.

 

In consideration of the mutual promises herein contained and the mutual covenants and agreements set forth herein, the parties hereto agree as follows:

 

1       DEFINITIONS AND INTERPRETATION

 

	
1.1 

	
For the purpose of this Agreement the following words and expressions shall have the respective meaning assigned to them:

 

	"Agreement"	means this agreement to trade Materials and to provide planting and maintenance services as originally executed or as it may from time to time be amended or supplemented;

  

3

  

 

	"China" or "PRC"	
means the People's Republic of China;

	 	 
	"Conditions"	
means the terms and conditions to trade Materials and to provide planting and maintenance services set out in this Agreement and any special terms and conditions agreed in writing by the Company;

	 	 
	
"Consideration"

	
means the consideration net of any tax or levy for the source and supply of Materials including packaging costs, transportation and maintenance during the Maintenance Period and which is to be paid in RMB or any other currency acceptable by the party being paid;

	 	 
	
"Delivery Date"

	
means the date specified by the Company when the Materials are to be delivered;

	 	 
	"Hong Kong"	
means Hong Kong Special Administrative Region of PRC;

	 	 
	"Maintenance Period"	
means the period month(s) after planting of the Seedlings where the Supplier carries out works which include using and spraying fertilizers and pesticides on the Seedlings as stipulated in the Termsheet free of charge and if not specified, the Maintenance Period shall be 30 days;

	 	 
	
"Materials"

	
means seedlings, young plants, soil or any physical substances to be used to carry out and complete the Projects which the Client agrees to trade from the Supplier through the Company. Quantity and description of the Materials are contained in the Termsheet set out in Schedule I of this Agreement;

	 	 
	
"Parties"

	means the Company and the Supplier;

  

4

  

 

	"Planting" and "Plant"	
means to put the Materials in the piece of ground as specified by the Company;

	 	 
	
"Representative"

	means the individual appointed by the Company to receive payment on its behalf;
	 	 
	"RMB"	means Renminbi, the lawful currency of PRC; and
	 	 
	"Termsheet"	
means the termsheet to be supplied by the Client to the Company specifying the Consideration, completion arrangements, quantity, quality and description of the Materials for each Project, in the form set out in Schedule I of this Agreement.

 

1.2       In this Agreement:

 

	
(a)  

	
All references to clauses, sub-clauses and Schedules are to clauses, sub-clauses and Schedules of this Agreement.

 

	
(b)  

	
Words importing the singular number only shall include the plural number and vice versa; words importing the masculine gender only shall include the feminine gender; and words importing persons shall include corporations, firms, partnerships, bodies corporate, corporations, associations, joint ventures, organisations and trusts (in each case whether or not incorporated and whether or not having a separate legal personality)

 

	
(c)  

	
The clause headings in this Agreement are inserted for ease of reference only and shall not affect the construction or interpretation of this Agreement.

 

	
(d)  

	
References to this Agreement or any other document include references to this Agreement, its recitals and the Schedules or such other document as varied, supplemented and/or replaced in accordance with this Agreement from time to time.

 

	
(e)  

	
References to any party shall, where relevant, be deemed to be references to or to include, as appropriate, their respective lawful successors, permitted assigns or transferees.

  

5

  

	
(f)  

	
References to "writing" include telex, e-mail and facsimile transmission legibly received except in relation to any certificate, report, notice or other document which is expressly required by this Agreement to be signed, and "written" has a corresponding meaning.

 

	
(g)  

	
In the case of conflict or ambiguity between any provision contained in the body of this Agreement and any provision contained in any Schedule, the provision in the body of this Agreement shall take precedence.

 

2       CONSIDERATION AND PAYMENT

 

	
2.1

	
In consideration of the Supplier supplying Materials and relevant services to the Company, the Company shall through the Representative to pay to the Supplier the Consideration at the time interval and the amount as stipulated in the Termsheet and reasonable out of pocket expenses if any in accordance with the commercial terms and payment terms as detailed in the Termsheet,

 

3       THE MATERIALS

 

	
3.1  

	
The Suppiier shall supply the Materials according to the specifications as set out in Schedule I and the Separate Agreement.

 

	
3.2  

	
The Company, at its reasonable endeavours, shall assist to monitor the Supplier so that the Materials shall meet the specifications as set out in Schedule I.

 

	
3.3  

	
The Company shall give no less than ten (10) days written notice to the Suppliers regarding any changes in the specifications of Materials.

  

6

  

 

4      STATUS AS THE SUPPLIER

 

	
4.1  

	
In supplying the Materials, the Supplier shall, at its own costs and expenses, conform with alt relevant laws and regulations applicable to it.

 

	
4.2  

	
The Supplier is appointed by the Company hereunder only for the purposes and to the extent stated in this Agreement.

 

	
4.3  

	
The Supplier is an independent contractor of the Company and is not the employee, agent or partner of the Company.

 

5       WARRANTIES AND LIABILITY

 

	
5.1  

	
The Supplier warrants that it shall provide Materials to replace Materials already provided in case they do not correspond to the requirements of the Client including but not limited to damaged Materiais, Materials with wilted branches and/or damaged rootballs within fourteen (14) days after receiving a written notice from the Client and/or the Company about the same.

 

	
5.2  

	
The Supplier warrants that it will mark, pack, delivery and transport the Materials in accordance with the Client's specifications for delivery.

 

6       RESTRICTED COVENANTS

 

	
6.1

	
 The Supplier shall not, during the term of this Agreement or any extensions thereof, either directly or indirectly, whether by itself or through or in conjunction with any other party or howsoever otherwise:

 

	
6.1.1  

	
divert or attempt to drive any business or customer of the Company to any competitor or any other party, or do or perform any other act injurious or prejudicial to the goodwill associated with the Company's reputation; or

 

	
6.1.2  

	
enter into any contracts or arrangements with any other party so as to directly or indirectly compete in any way with the business of the Company; or

 

6.1.3    employ or seek to employ any person who is at that time employed

  

7

  

 

            by the Company or agents or representatives of the Company, or otherwise induce such person to leave his/her employment; or

 

	
6.1.4 

	
Garry on or be involved in any other similar projects except the projects as stipulated in the Term Sheets.

 

7       DELIVERY OF THE MATERIALS

 

	
7.1  

	
The Supplier shall deliver the Materials to the designated address of the Client on the Delivery Date as set out in the Termsheet.

 

	
7.2  

	
The Company shall give at least fourteen (14) days notice to the Supplier before the Delivery Date should there be any change in the Termsheet herein.

 

	
7.3  

	
If required by the Company, the Supplier shall deliver the Materials in separate installments in accordance with the agreed delivery schedule.

 

	
7.4  

	
The failure of the Supplier to deliver any one or more of the said installments of the Materials on the due dates shall entitle the Company to treat this Agreement as repudiated.

 

	
7.5  

	
The Supplier shall be responsible for damages directly or indirectly caused by the delay in delivery of the Materials.

 

8       PACKAGING AND TRANSPORTATION OF THE MATERIALS

 

	
8.1  

	
The Supplier shall be responsible for packing and delivering of the Materials to the Client.

 

	
8.2  

	
Including but not limited to the following areas, the Supplier shall ensure that:-

 

    (a)  the rootballs are firm and packed in wooden boxes;

 

    (b)  the Materials are undamaged

 

    (c)  the Materials do not contain harmful pests;

 

    (d)  there is no broken branches; and

 

    (e)  the Materials are not damaged during transit.

  

8

  

 

9       PLANTING AND MAINTENANCE OF THE MATERIALS

 

	
9.1  

	
The Supplier shall Plant the Materials at the location as specified by the Client.

	
9.2  

	
The Supplier shall be responsible for conducting maintenance works of the Materials during the Maintenance Period that includes:-

	 	
(a)  

	
providing fertilizers, pesticides and supporting frames for the Planting and maintenance of the Materials; and

	 	
(b)  

	hiring the suitable number of gardener(s) to maintain the Materials;

	 	
(c)  

	
replacing any wilted Materials with new Materials that meet the specifications as set out in the Termsheet. The Company shall assist the Supplier to co-ordinate with the Client when the Supplier obtains approval from the Client prior to planting of new Materials in replacement of old Materials.

 

10       ACCEPTANCE OF THE MATERIALS

 

Pursuant to the terms of the Separate Agreement, the Supplier shall be discharged from its obligation unless a written notice of rejection of acceptance of the Materials is received from the Client within five (5) days after the delivery of the Materials.

 

11       REMEDIES OF THE COMPANY

 

The Supplier shall be responsible for all indirect loss and/or expense (including loss of profit) suffered by the Company arising out of a breach by the Supplier.

 

12       ASSIGNABILITY

 

Neither party may assign any of its rights or benefits, or transfer or purport to transfer any of its duties or obligations, under this Agreement to any third party without the prior written consent of the other party. Any such attempted assignment or transfer shall be null and void.

  

9

  

 

13       WAIVER

 

No single or partial exercise of, or failure or omission to exercise or delay in exercising any right, power, claim or remedy vested in any party under or pursuant to this Agreement or otherwise shall affect, prejudice or constitute a waiver by such party of such or any other right, power claim or remedy.

 

14       ENTIRE AGREEMENT

 

This Agreement sets forth the entire agreement and understanding between the Parties in relation to the transactions contemplated by this Agreement, and supersedes and cancels in all respects all previous letters of intent, correspondence, understandings, agreements and undertakings (if any) between the Parties with respect to the subject matter of this Agreement, whether such be written or oral.

 

15       AMENDMENT

 

No variation of this Agreement shall be effective unless it is in writing and signed by or on behalf of each of the parties to this Agreement.

 

16       SEVERABILITY

 

If at any time one or more of the provisions of this Agreement is or becomes invalid, illegal, unenforceable or incapable of performance in any respect, the validity, legality, enforceability or performance of the remaining provisions of this Agreement shall not thereby in any way be affected or impaired.

 

17       COUNTERPARTS

 

This Agreement may be executed in any number of counterparts and by either Party on separate counterparts, each of which when so executed and delivered shall be an original, but all the counterparts together shall

  

10

  

 

constitute one and the same instrument.

 

18.      TIME

 

Time shall be of the essence of this Agreement, both as regards the dates and periods specifically mentioned in this Agreement and as to any date and period which may by written agreement between or on behalf of the Parties be substituted for them.

 

19       COSTS AND EXPENSES

 

Each party shall bear all its own legal and professional fees, costs and expenses of and incidental to the negotiation, preparation, execution and completion of this Agreement.

 

20       NOTICES

 

	
20.1  

	
All notices, requests, demands and other communications required to be given or made under this Agreement shall be in writing and delivered or sent to the other party by hand or by registered mail (air-mail, if outside the sender's country or territory) or by facsimile or email confirmed in writing by registered mail dispatched within twenty-four (24) hours of the facsimile or email dispatch in question, and shall be addressed to the appropriate party at the address as such party hereto may from time to time designate to the others of them in writing.

 

	
20.2  

	
Any notice, request, demand or other communication given or made to the relevant party shall be deemed to have been received in the case of communications in writing and delivered by hand on the date of delivery against written receipt, in the case of written communications sent by registered mail on the date which is two (2) business days in the case of local mail or five (5) business days in the case of overseas mail after the mailing thereof, and in the case of a facsimile or e-rnail one (1) day after the date of dispatch thereof.

  

11

  

 

21       GOVERNING LAW AND JURISDICTION

 

	
21.1  

	
This Agreement shali be governed by and construed in all respects in accordance with the laws of Hong Kong.

 

	
21.2  

	
The Parties submit to the non-exclusive jurisdiction of the courts of Hong Kong.

 

IN WITNESS whereof the Parties have executed this Agreement the day and year first above written.

  

12

  

 

SCHEDULE

 

Terms Sheet

 

Name of Project:

 

Supplier:

 

Consideration:

 

Payment Date:

 

Specifications:

Species and name                                    Latin name :

 

Common name:

 

Quantity

 

Description                           Diameter of trunk:

         

                                                            Size of rootball:

 

                                                                    Crown:

 

                                                                    Height:

 

                                                                    Other specifications:

 

Delivery Schedule:

Delivery Date

 

Delivery Destination

 

Maintenance Period                            :

 

  

13

  

EXECUTION PAGE

 

IN WITNESS whereof, the parties hereto have duly executed this Agreement the day and year first above written.

 

	
SIGNED by

Tai Chi Yip

its director

for and on behalf of

GLORIOUS PIE LIMITED

 

In the presence of: -

 

  /s/ B.L.

 

	

    For and on behalf of 

 

                  

 

 

                                                                           

         Authorized Signature(s)

 

	

SIGNED by                          

                                               

                                               

 

In the presence of:-

 

  /s/ B.L.

 

	
 

 

                                                                                       

 

14

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