Document:

Exhibit
      10.2

     

    The
      following form of stock consignment agreement was entered into on December
      30,
      2005 by each of the parties listed on the following table.

     

    
      	
              Consignor

            	
              %
                of Shares of Beijing HollySys Consigned

            
	 	 
	
              Plus
                View Investments Limited

            	
              9.88%

            
	 	 
	
              Pioneer
                Sum Investments Limited

            	
              6%

            
	 	 
	
              Ace
                Lead Profits Limited

            	
              14.23%

            
	 	 
	
              Acclaimed
                Insight Investments Limited

            	
              24%

            
	 	 
	
              Allied
                Earn Investments Limited

            	
              20%

            
	 	 
	
              TOTAL

            	
              74.11%

            

    

     

    Stock
      Consignment Agreement

     

    This
      Stock Consignment Agreement (Hereinafter called the “Agreement”) is entered into
      on December 30, 2005 between the following Parties:

     

    
      
        	
                (1)

              	
                ____________________________________
                  (Hereinafter called “Party A”); and

              

      

       

    

    
      
        
          	
                  (2)

                	
                  Gifted
                    Time Holdings Limited (Hereinafter called “Party
                    B”).

                

        

         

      

    

    WHEREAS:

     

    
      	
              (1)

            	
              Party
                A and ______________________ have entered into a Shares Consignment
                Agreement (Hereinafter called “Consignment Agreement”), pursuant to which
                ________________ consigns ______________ shares, representing
                _______% of the total shares, that he holds, of Beijing Hollysys
                Co., Ltd,
                to Party A; and

            

    

     

    
      	
              (2)

            	
              Party
                A and Party B agree that under the terms of this Agreement, Party
                A
                transfers the rights he enjoys under the Consignment Agreement to
                Party
                B.

            

    

     

    Therefore,
      Party A and Party B enter into this Agreement based on the following
      terms:

     

    
      
        
          
            
              
                
                  
                    
                      	
                              1.

                            	
                              ASSIGNMENT

                            

                    

                    
                       

                      
                        
                          
                            
                              
                                	
                                        1.1

                                      	
                                        
                                          Party
                                            A agrees that under the terms of this
                                            Agreement, Party A transfers any and
                                            all the rights he enjoys under the Consignment
                                            Agreement (Hereinafter
                                            called “‘Shares Consignment Rights”) to Party B, which is set out in the
                                            terms of the Consignment Agreement in
                                            Appendix
                                            1.

                                        

                                      

                              

                               

                              
                                
                                  
                                  

                                

                                
                                  1

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                               

                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  1.2 

                                                	
                                                  
                                                    
                                                      Party
                                                        B agrees that under the terms
                                                        of this Agreement, Party
                                                        B accepts the
                                                        Shares Consignment Rights
                                                        that Party A enjoys under
                                                        the Consignment
                                                        Agreement.

                                                    

                                                  

                                                

                                        

                                         

                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      	
                                                              2.

                                                            	
                                                              
                                                                
                                                                  CONSIDERATION

                                                                

                                                              

                                                            

                                                    

                                                     

                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    	
                                                                            2.1

                                                                          	
                                                                            
                                                                              
                                                                                
                                                                                  Both
                                                                                    Parties
                                                                                    agree
                                                                                    that
                                                                                    Party
                                                                                    B
                                                                                    shall
                                                                                    pay
                                                                                    for
                                                                                    the
                                                                                    aforesaid
                                                                                    Shares
                                                                                    Consignment
                                                                                    Rights
                                                                                    by
                                                                                    issuance
                                                                                    of
                                                                                    common
                                                                                    stock
                                                                                    to
                                                                                    Party
                                                                                    A.

                                                                                

                                                                              

                                                                            

                                                                          

                                                                  

                                                                  
                                                                     

                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    	
                                                                                            2.2

                                                                                          	
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    Both
                                                                                                      Parties
                                                                                                      agree
                                                                                                      that
                                                                                                      Party
                                                                                                      B
                                                                                                      shall,
                                                                                                      on
                                                                                                      the
                                                                                                      effective
                                                                                                      date
                                                                                                      of
                                                                                                      this
                                                                                                      Agreement,
                                                                                                      issue
                                                                                                      __________ shares
                                                                                                      of
                                                                                                      common
                                                                                                      stock,
                                                                                                      representing
                                                                                                      ________%
                                                                                                      of
                                                                                                      the
                                                                                                      outstanding
                                                                                                      total
                                                                                                      capital
                                                                                                      stock.

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                  

                                                                                  
                                                                                     

                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    	
                                                                                                            3.

                                                                                                          	
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    BOTH
                                                                                                                      PARTIES’
WARRANTIES,
                                                                                                                      REPRESENTATION
                                                                                                                      AND
                                                                                                                      UNDERTAKING

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                  

                                                                                                  
                                                                                                     

                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    	
                                                                                                                            3.1

                                                                                                                          	
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      Party
                                                                                                                                        A’s
                                                                                                                                        warranties,
                                                                                                                                        representations
                                                                                                                                        and
                                                                                                                                        undertakings.

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                  

                                                                                                                   

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	3.1.1  	
              Party
                A has the authorization to sign this Agreement, and to perform the
                terms
                and provisions under this
                Agreement.

            

    

     

    
      	3.1.2  	
              Party
                A warrants that it has not signed any contracts or agreements conflicting
                with this Agreement, and will not assign the rights and obligation
                to any
                third party under this Agreement.

            

    

     

    
      	3.1.3  	
              For
                the purpose of complete implementation of this Agreement, Party A
                undertakes that it shall take all necessary further actions, acts
                and make
                and execute all documents to perform all the terms in this
                Agreement.

            

    

    
      
         

        
          
            
              
                
                  
                    
                      
                        	
                                3.2

                              	
                                
                                  
                                    
                                      
                                        
                                          
                                            Party
                                              B’s warrants, representations and
                                              undertakings:

                                          

                                        

                                      

                                    

                                  

                                

                              

                      

                       

                    

                  

                

              

            

          

        

      

    

    
      	3.2.1  	
              Party
                B has the authorization to sign this Agreement, and to perform the
                terms
                and provisions under this
                Agreement.

            

    

     

    
      	3.2.2  	
              Party
                B warrants that it has not signed any contracts or agreements conflicting
                with this Agreement, and will not assign the rights and obligation
                to any
                third party under this Agreement.

            

    

     

    
      	3.2.3  	
              For
                the purpose of complete implementation of this Agreement, Party B
                undertakes that it shall take all necessary further actions, acts
                and make
                and execute all documents to perform all the terms in this
                Agreement.

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                4.

                              	
                                
                                  
                                    
                                      
                                        
                                          
                                            FORCE
                                              MAJEURE

                                          

                                        

                                      

                                    

                                  

                                

                              

                      

                      
                         

                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    4.1

                                                  	
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  Neither
                                                                    Party shall be
                                                                    liable to the
                                                                    other for any
                                                                    delay or failure
                                                                    to perform its
                                                                    obligation under
                                                                    this Agreement,
                                                                    if such failure
                                                                    or delay is due
                                                                    to force
                                                                    majeure.

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                          

                                           

                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                	
                                                                        5.

                                                                      	
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    DEFAULT

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                              

                                                              
                                                                
                                                                   

                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      	
                                                                                              5.1

                                                                                            	
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              After
                                                                                                                the
                                                                                                                effective
                                                                                                                date
                                                                                                                of
                                                                                                                this
                                                                                                                Agreement,
                                                                                                                it
                                                                                                                may
                                                                                                                constitute
                                                                                                                default,
                                                                                                                if
                                                                                                                either
                                                                                                                Party
                                                                                                                is
                                                                                                                in
                                                                                                                breach,
                                                                                                                nonperforming,
                                                                                                                or
                                                                                                                partly
                                                                                                                performing
                                                                                                                terms
                                                                                                                of
                                                                                                                this
                                                                                                                Agreement,
                                                                                                                or
                                                                                                                is
                                                                                                                in
                                                                                                                breach
                                                                                                                of
                                                                                                                any
                                                                                                                warranties,
                                                                                                                representations
                                                                                                                and
                                                                                                                undertakings
                                                                                                                of
                                                                                                                this
                                                                                                                Agreement.
                                                                                                                The
                                                                                                                non-defaulting
                                                                                                                Party
                                                                                                                can
                                                                                                                allow
                                                                                                                the
                                                                                                                defaulting
                                                                                                                Party
                                                                                                                to
                                                                                                                cure
                                                                                                                such
                                                                                                                default
                                                                                                                in
                                                                                                                a
                                                                                                                reasonable
                                                                                                                time
                                                                                                                period.
                                                                                                                If
                                                                                                                the
                                                                                                                defaulting
                                                                                                                Party
                                                                                                                does
                                                                                                                not
                                                                                                                cure
                                                                                                                within
                                                                                                                the
                                                                                                                reasonable
                                                                                                                time
                                                                                                                period,
                                                                                                                the
                                                                                                                non-defaulting
                                                                                                                Party
                                                                                                                shall
                                                                                                                be
                                                                                                                entitled
                                                                                                                to
                                                                                                                terminate
                                                                                                                the
                                                                                                                Agreement,
                                                                                                                and
                                                                                                                hold
                                                                                                                the
                                                                                                                defaulting
                                                                                                                Party
                                                                                                                liable
                                                                                                                for
                                                                                                                all
                                                                                                                the
                                                                                                                damages
                                                                                                                and
                                                                                                                economic
                                                                                                                loss
                                                                                                                resulting
                                                                                                                from
                                                                                                                the
                                                                                                                defaulting
                                                                                                                Party’s
                                                                                                                default.
                                                                                                                The
                                                                                                                economic
                                                                                                                loss
                                                                                                                shall
                                                                                                                not
                                                                                                                exceed
                                                                                                                the
                                                                                                                amount
                                                                                                                that
                                                                                                                defaulting
                                                                                                                Party
                                                                                                                could
                                                                                                                anticipate
                                                                                                                or
                                                                                                                should
                                                                                                                anticipate
                                                                                                                as
                                                                                                                of
                                                                                                                the
                                                                                                                date
                                                                                                                of
                                                                                                                this
                                                                                                                Agreement.

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                    

                                                                                     

                                                                                    
                                                                                      
                                                                                         

                                                                                      

                                                                                      
                                                                                        2

                                                                                        
                                                                                          

                                                                                        

                                                                                      

                                                                                      
                                                                                         

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  6.

                                	
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  EFFECTIVE
                                                    DATE

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                        

                         

                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      6.1

                                                    	
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        This
                                                                          agreement
                                                                          is effective
                                                                          from the
                                                                          date of
                                                                          signing
                                                                          (if it
                                                                          is signed
                                                                          by a
                                                                          designated
                                                                          person,
                                                                          a letter
                                                                          of the
                                                                          power of
                                                                          attorney
                                                                          is
                                                                          necessary).

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                            

                                             

                                            
                                              
                                                
                                                  	
                                                          7.

                                                        	
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            GOVERNING
                                                                              LAW
                                                                              AND
                                                                              DISPUTE
                                                                              RESOLUTION

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                

                                                 

                                                
                                                  
                                                    	
                                                            7.1

                                                          	
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                The
                                                                                  effectiveness,
                                                                                  interpretation,
                                                                                  implementation
                                                                                  and
                                                                                  dispute
                                                                                  resolution
                                                                                  related
                                                                                  to
                                                                                  this
                                                                                  Agreement,
                                                                                  shall
                                                                                  be
                                                                                  governed
                                                                                  by
                                                                                  the
                                                                                  laws
                                                                                  of
                                                                                  the
                                                                                  British
                                                                                  Virgin
                                                                                  Islands.

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
                  7.2

                	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        Any
                                          dispute arising out of this Agreement,
                                          including but not limited to
                                          execution, enforcement, implementation,
                                          interpretation, default,
                                          modification, and termination, shall be
                                          resolved by both Parties through
                                          mutual negotiation. If both Parties could
                                          not reach an agreement within 30
                                          days after the dispute arises, either Party
                                          may initiate legal action in
                                          the competent jurisdiction. The recovering
                                          Party can ask the other Party
                                          to pay for all professional service (including
                                          but not limited to legal
                                          counsel service) costs in the litigation
                                          and other related
                                          costs.

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

      
         

        
          
            	
                    7.3

                  	
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          During
                                            the process of dispute resolution, both
                                            Parties shall continue to perform
                                            other terms under this Agreement, except
                                            for matters in
                                            dispute.

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

          

        

        
          
             

            
              
                	
                        8.

                      	
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              MODIFICATION,
                                                CANCELLATION,
                                                TERMINATION

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

              

               

              
                
                  	
                          8.1

                        	
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  The
                                                    modification of this Agreement
                                                    shall not be effective without
                                                    written
                                                    agreement through negotiation.
                                                    If both Parties could not reach
                                                    an
                                                    agreement, this Agreement remains
                                                    effective.

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                

              

              
                
                  
                     

                    
                      
                        	
                                8.2

                              	
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          Both
                                                            Parties may agree to
                                                            cancel this Agreement
                                                            with written
                                                            agreement.

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                      

                    

                     

                    
                      
                        	
                                9.

                              	
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      GENERAL
                                                        PROVISIONS

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                      

                       

                      
                        
                          	
                                  9.1

                                	
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              Both
                                                                Parties may sign
                                                                a supplemental agreement
                                                                regarding to related
                                                                matters of
                                                                this Agreement. The
                                                                supplemental agreement
                                                                and this Agreement
                                                                have the
                                                                same
                                                                effect.

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                        

                      

                      
                         

                        
                          
                            	
                                    9.2

                                  	
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  All
                                                                    the appendix
                                                                    hereto is an
                                                                    integral part
                                                                    of this Agreement,
                                                                    which has the
                                                                    same effect as
                                                                    this
                                                                    Agreement.

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                          

                        

                        
                           

                          
                            
                              
                                	
                                        9.3

                                      	
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        This
                                                                          agreement
                                                                          is written
                                                                          in both
                                                                          English
                                                                          and Chinese
                                                                          languages.
                                                                          If there
                                                                          is
                                                                          any discrepancy
                                                                          between
                                                                          the two
                                                                          versions,
                                                                          the Chinese
                                                                          version
                                                                          shall
                                                                          prevail.
                                                                          This Agreement
                                                                          is executed
                                                                          in two
                                                                          copies,
                                                                          one copy
                                                                          for each
                                                                          Party,
                                                                          and both
                                                                          Parties
                                                                          may execute
                                                                          the
                                                                          duplicate.

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                              

                               

                              
                                
                                   

                                

                                
                                  3

                                  
                                    

                                  

                                

                                
                                   

                                

                              

                               

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    IN
      WITNESS WHEREOF, the Parties hereto have caused their duly authorized
      representatives to executive this Agreement.

     

    For
      and
      on behalf of:

     

    
       

        
          

        

      

       

       

        
          

        

        GIFTED
          TIME HOLDINGS LIMITED

      

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have caused their duly authorized
      representatives to execute this Agreement.

     

     

    For
      and on behalf of:

    
      	 	 	 	 
	/s/ 
Luo
              An	 	 	 
	
              
PLUS
              VIEW INVESTMENTS LIMITED	 	 	
            
	 	 	 	 

    

     

    
      	 	 	 	 
	/s/ Qiao
              Li	 	 	 
	
              
GIFTED
              TIME HOLDINGS LIMITED	 	 	
            
	 	 	 	 

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have caused their duly authorized
      representatives to execute this Agreement.

     

     

    For
      and
      on behalf of:

    
      
        	 	 	 	 
	/s/ 
Mei
                Qinglin	 	 	 
	
                
PIONEER
                SUM INVESTMENTS LIMITED	 	 	
              
	 	 	 	 

      

       

      
        	 	 	 	 
	/s/ Qiao
                Li	 	 	 
	
                
GIFTED
                TIME HOLDINGS LIMITED	 	 	
              
	 	 	 	 

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have caused their duly authorized
      representatives to execute this Agreement.

     

     

    For
      and
      on behalf of:

    
      
        
          	 	 	 	 
	/s/ 
Wang
                  Changli	 	 	 
	
                  
ACE
                  LEAD PROFITS LIMITED	 	 	
                
	 	 	 	 

        

         

        
          	 	 	 	 
	/s/ Qiao
                  Li	 	 	 
	
                  
GIFTED
                  TIME HOLDINGS LIMITED	 	 	
                
	 	 	 	 

        

        
           

          
            
               

            

            
              7

              
                

              

            

            
               

            

          

           

        

      

    

    IN
      WITNESS WHEREOF, the Parties hereto have caused their duly authorized
      representatives to execute this Agreement.

     

     

    
      For
        and
        on behalf of:

      
        
          
            	 	 	 	 
	/s/ 
Xu
                    Shengheng	 	 	 
	
                    
ACCLAIMED
                    INSIGHT INVESTMENTS LIMITED	 	 	
                  
	 	 	 	 

          

           

          
            	 	 	 	 
	/s/ Qiao
                    Li	 	 	 
	
                    
GIFTED
                    TIME HOLDINGS LIMITED	 	 	
                  
	 	 	 	 

          

           

          
            
               

            

            
              8

              
                

              

            

            
               

            

          

           

        

      

    

    IN
      WITNESS WHEREOF, the Parties hereto have caused their duly authorized
      representatives to execute this Agreement.

     

     

    
      For
        and
        on behalf of:

      
        
          
            	 	 	 	 
	/s/ 
Song
                    Xuesong	 	 	 
	
                    
ALLIED
                    EARN INVESTMENTS LIMITED	 	 	
                  
	 	 	 	 

          

           

          
            	 	 	 	 
	/s/ Qiao
                    Li	 	 	 
	
                    
GIFTED
                    TIME HOLDINGS LIMITED	 	 	
                  
	 	 	 	 

          

           

          
            
               

            

            
              9SALE
      AND PURCHASE AGREEMENT

    

    IN
      RELATION TO THE OWNERSHIP INTEREST 

    

    OF

    

    HANGZHOU
      HOLLYSYS AUTOMATION CO., LTD.

    

    BETWEEN

    

    TEAM
      SPIRIT INDUSTRIAL LIMITED

     

    AND

    

    GIFTED
      TIME HOLDINGS LIMITED

    

     

    

    

    

    

    
      
        

      

    

    

    Dated:
      January 12, 2006  

     

      
        

      

    

    

    
      
        
        

      

      
        A3

        
          

        

      

      
        
        

      

    

     

    This
      SALE AND PURCHASE AGREEMENT
      (Hereinafter referred as “this Agreement”) is entered into on the 12th
      day of
      January 2006.

     

    BETWEEN:-

    

    
      	
              (1)

            	
              TEAM
                SPIRIT INDUSTRIAL LIMITED,
                (Hereinafter referred as “Party A”), a company incorporated in the British
                Virgin Islands with limited
                liability;

            

    

    

    
      	
              (2)

            	
              GIFTED
                TIME HOLDINGS LIMITED,
                (Hereinafter referred as “Party B”), a company incorporated in the British
                Virgin Islands with limited
                liability.

            

    

     

    (Party
      A
      and Party B may be called “Party A and B” or “both Parties” together, or “the
      Party” or “each Party” under this Agreement)

     

    WHEREAS:-

    
       

    

    
      	(A)  	
              As
                of the date of this Agreement,
                Party A is the registered owner of Hangzhou HollySys Automation Co.,
                Ltd.
                (Hereinafter referred as "HZ HollySys") holding 30% of the entire
                ownership interest in HZ HollySys;
                and

            

    

    
       

    

    
      	  
              (B)  	
              Party
                A agrees that Party A shall sell 30% ownership interest in HZ HollySys
                to
                Party B in accordance with the conditions set forth in this Agreement.
                Party B agrees that Party B shall purchase the 30% ownership interest
                in
                HZ HollySys.

            

    

    
       

    

    Therefore,
      Party A and Party B enter into this Agreement based on the following
      conditions:-

    

    
      	
              1.

            	
              DEFINITIONS

            

    

    

    
      	
              1.1

            	
              In
                this Agreement, unless otherwise expressed or required by context,
                the
                following words and expressions shall have the respective meanings
                set
                opposite thereto as follows:-

            

    

     

    
      	 	
              Expression

            	
              Meaning

            

    

    
      

      
        	 	
                "Agreement"

              	
                Sales
                  and Purchase Agreement dated [12th January 2006] and its appendix
                  entered
                  into between the Party A and Party
                  B

              

      

      
        

        
          	 	
                  "HZ
                    HollySys"

                	
                  Hangzhou
                    HollySys Automation Co., Ltd. Party A holds 30% of the entire
                    ownership
                    interest in HZ HollySys

                

        

        
          
            

            
              	 	
                      "Transaction"

                    	
                      the
                        transaction with respect to the sale and purchase of the
                        30% ownership
                        interest in HZ HollySys between Party A and Party B in accordance
                        with the
                        conditions set forth in this
                        Agreement

                    

            

            
              
                

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                   

                

                
                  	 	
                          "Sale
                            Share"

                        	
                          the
                            fully paid share which is legally and beneficially owned
                            by Party A,
                            representing 30% of the entire issued share capital of
                            HZ HollySys as at
                            the date of this Agreement

                        

                

                
                  
                    

                    
                      	 	
                              "Consideration"

                            	
                              the
                                agreed total consideration payable by Party B to
                                Party A for the sale and
                                purchase of the Sale Share in accordance with the
                                condition 3 set forth in
                                this Agreement

                            

                    

                    
                      
                        

                        
                          	 	
                                  "Signature
                                    Date"

                                	
                                  the
                                    official date for signature of this Agreement
                                    stated in this
                                    Agreement

                                

                        

                        
                          
                            

                            
                              	 	
                                      "Effective
                                        Date"

                                    	
                                      the
                                        date upon the fulfillment of all the conditions
                                        specified in this
                                        Agreement 

                                    

                            

                            
                              
                                

                                
                                  	 	
                                          "Business
                                            Day" 

                                        	
                                          a
                                            day on which banks are open for business
                                            other than (i) a Saturday or a
                                            Sunday; or (ii) a "general holiday"

                                        

                                

                                
                                  
                                    

                                    
                                      	 	
                                              "RMB"

                                            	
                                              Renminbi,
                                                the legal currency of the P.R.China

                                            

                                    

                                     

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	
              2.

            	
              SALE
                AND PURCHASE OF THE SALE SHARE

            

    

    

    
      	
              2.1

            	
              Party
                A agrees that Party A shall sell the Sale Share to Party B in accordance
                with the terms and conditions set forth in this Agreement. Party
                B agrees
                that Party B shall purchase the Sale Share in accordance with the
                terms
                and conditions set forth in this
                Agreement.

            

    

     

    
      	
              3.

            	
              CONSIDERATION

            

       

      
        	
                3.1

              	
                Both
                  Parties agree that the total consideration payable by Party B to
                  Party A
                  for the sale of the Sale Share shall be RMB
                  60,474,000.

              

      

       

      
        	
                3.2

              	
                Both
                  Parties agree that Party B shall pay the consideration of the Sale
                  Share
                  to Party A or any third party designated by Party A by issuing
                  common
                  stock with equivalent value of the Sale Share, representing 7,966
                  shares
                  of Party B’s common stock, which take 15.932% of its total outstanding
                  stocks. 

              

      

    

    

    
      	
              4.

            	
              PARTY
                A’S RIGHTS AND OBLIGATIONS

            

    

     

    
      	
              4.1

            	
              Party
                A has the right, power and authority to sell and transfer the Sale
                Share.

            

      

      
        	
                4.2

              	
                Party
                  A is the sole beneficial owner of the Sale Share which shall be
                  transferred and assigned to Party B pursuant to the terms of this
                  Agreement free from all claims, charges, liens, encumbrances, third
                  party
                  rights, disputes, litigations and arbitrations of any kind
                  whatsoever;

              

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  4.3

                	
                  Party
                    A has not entered into any contracts or agreements which may
                    conflict with
                    this Agreement. Party A shall not transfer any rights and obligations
                    under this Agreement to any third party.

                

          

          
            	
                    4.4

                  	
                    Party
                      A agrees to take all and any necessary actions, executes and
                      delivers any
                      legal documents (including any necessary approvals from the
                      government
                      authorities) to complete the transaction
                      hereunder.

                  

          

           

        

      

    

    
      	
              5.

            	
              PARTY
                B’S RIGHTS AND OBLIGATIONS

            

    

    

    
      	
              5.1

            	
              Party
                B is fully capable of entering into this Agreement and performing
                all
                obligations and duties hereunder;

            

    

     

    
      
        	
                5.2

              	
                Party
                  B shall fully pay the consideration to Party A in time pursuant
                  to the
                  terms in this Agreement. 

              

      

      
        

        
          	
                  5.3

                	
                  Party
                    B has not entered into any contracts or agreements which may
                    conflict with
                    this Agreement. The Purchase shall not transfer any rights and
                    obligations
                    under this Agreement to any third
                    party.

                

        

        
          

          
            	
                    5.4

                  	
                    During
                      the period from the signature date of this Agreement to the
                      completion
                      date of the transaction hereunder, Party B agrees that Party
                      B shall not
                      propose or enter into any negotiations or discussions or enter
                      into any
                      letter of intend, agreements or understandings which may conflict
                      with the
                      transaction hereunder.

                  

          

          
             

            
              	
                      6.

                    	
                      DEFAULT 

                    

            

            
               

              
                	
                        6.1

                      	
                        After
                          effective date of this Agreement, it may constitute default,
                          if either
                          Party is in breach, nonperforming, or partly performing
                          terms of this
                          Agreement, or is in breach of any warranties, representations
                          and
                          undertakings of this Agreement. The non-defaulting Party
                          can allow the
                          defaulting Party to cure such default in a reasonable time
                          period. If the
                          defaulting Party does not cure within the reasonable time
                          period, the
                          non-defaulting Party shall be entitled to terminate the
                          Agreement, and
                          hold the defaulting Party liable for all the damages and
                          economic loss
                          resulting from the defaulting Party’s default. The economic loss shall not
                          exceed the amount that defaulting Party could anticipate
                          or should
                          anticipate as of the date of this
                          Agreement.

                      

              

              
                
                   

                  
                    	
                            7.

                          	
                            
                              FORCE
                                MAJEURE 

                            

                          

                  

                  
                    
                       

                      
                        	
                                7.1

                              	
                                Neither
                                  Party shall be liable to the other for any delay
                                  or failure to perform its
                                  obligation under this Agreement, if such failure
                                  or delay is due to force
                                  majeure. 

                              

                      

                      
                        
                           

                          
                            	
                                    8.

                                  	
                                    GOVERNING
                                      LAW AND DISPUTE
                                      RESOLUTION

                                  

                          

                          
                             

                            
                              
                                
                                

                              

                              
                                
                                

                                
                                  

                                

                              

                              
                                
                                

                              

                            

                             

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	
              8.1

            	
              Any
                dispute arising out of this Agreement shall be resolved by both Parties
                through mutual negotiation. If both Parties could not reach an agreement,
                either Party may initiate legal action in the competent
                jurisdiction.

            

    

    

    
      	
              8.2

            	
              This
                Agreement shall be governed by and construed in accordance with the
                laws
                of PRC. 

            

    

     

    
      	
              9.

            	
              EFFECTIVE

            

       

      
        	
                9.1

              	
                Upon
                  and after all of the following conditions have been satisfied and
                  fulfilled, this Agreement shall come into
                  effective:

              

      

      
        
           

          
            	
                    9.1.1

                  	
                    This
                      Agreement has been signed by both Parties’ legal representatives or
                      authorized persons;

                  

          

          
            
               

              
                	
                        9.1.2

                      	
                        The
                          transaction in this Agreement has been approved by the
                          Board of HZ
                          HollySys;

                      

              

              
                
                   

                  
                    	
                            9.1.3
                              

                          	
                            This
                              Agreement has been approved by the original government
                              authorities.
                              

                          

                  

                  
                    
                       

                    

                  

                

              

            

          

        

      

    

    
      	
              10.

            	
              CONFIDENTIALITY

            

    

    

    
      	
              10.1
                

            	
              Save
                as required by any applicable law, court order or other regulatory
                requirements, none of the parties hereto shall make, any press or
                other
                announcement or release or disclose any information, document and
                data
                concerning this Agreement or the transaction herein referred to or
                disclose the identity of the other parties hereto (save disclosure
                to
                their respective professional advisers under a duty of confidentiality)
                without the prior written consent of the other parties
                hereto.

            

    

     

    
      	
              11.

            	
              MODIFICATION,
                TERMINATION, SUPPLEMENTARY

            

    

    
      

      
        	
                11.1

              	
                
                  The
                    modification of this Agreement shall not be effective without
                    written
                    agreement through negotiation. If both Parties could not reach
                    an
                    agreement, this Agreement remains effective. Any modification,
                    construction or renunciation to this Agreement shall be invalid
                    if without
                    a written agreement signed by both
                    Parties.

                

              

      

      
        

        
          	
                  11.2 

                	
                  
                    If
                      either party is in breach of this Agreement, non-default party
                      may
                      terminate this Agreement. Both Parties may agree to cancel
                      this Agreement
                      with written agreement. 

                  

                

        

        
          

          
            	
                    11.3

                  	
                    
                      This
                        Agreement may terminate in the following circumstances: (i)
                        Both Parties
                        agree to terminate this Agreement; (ii) Non-default party
                        terminates this
                        Agreement pursuant to the terms and conditions of this Agreement;
                        (iii)
                        the transaction under this Agreement has been
                        completed.

                    

                  

          

          
            

            
              	
                      11.4 

                    	
                      
                        Both
                          Parties may sign supplemental agreement regarding to related
                          matters of
                          this Agreement. Supplemental agreement and this Agreement
                          have the same
                          effect.

                      

                    

            

             

          

        

      

    

    
      	
              12.

            	
              MISCELLANEOUS

            

    

    

    This
      Agreement is executed in four copies, two copies for each Party, and both
      Parties may execute the duplicate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have caused their duly authorized
      representatives to execute this Agreement.

     

    
      	 	 	 	 
	/s/ Cheng
              Wusi	 	 	 
	
              For and on behalf of

              TEAM SPIRIT INDUSTRIAL
                LIMITED

              
                in the presence of Director

              

            	 	 	
            
	
               

            	 	 	 

       

      
        	 	 	 	 
	/s/ Qiao
                Li 	 	 	 
	
                For and on behalf of 

                GIFTED TIME HOLDINGS
                  LIMITED 

                in the presence of Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]