Contract of LPG Pipeline Installation (The 2nd. September, 2006) Party A: Zunyi Branch of Guizhou Tobacco Co. (hereafter called Party B: Zunyi Jiahong Gas Co Ltd (hereafter called “Party B” below)
Contract
of LPG Pipeline Installation
(The
2nd.
September, 2006)
Party
A: Zunyi Branch of Guizhou Tobacco Co. (hereafter called
“Party
A” below)
Party
B: Zunyi Jiahong Gas Co Ltd (hereafter called “Party B”
below)
Both
parties mentioned above have reached this agreement on the issue of installation
of LPG pipeline through friendly negotiations. To clarify either party’s
responsibilities as well as obligations for mutual observance during the
execution, relevant clauses and conditions are stipulated herewith just as
follows:
| 1) |
Contract
object
|
Party
B will provide Party A with design, installation and construction of LPG
pipeline system for Party A’ s (known as Zunyi Tobacco
Co’s)
residential
building. The LPG system referred to with this contract includes Central Gas
Station, Pipeline network, indoors-system, Indoors-appliance (excluding gas
stoves or heaters) and other necessary on-line auxiliary or supporting
facilities.
| 2) |
Quality
of the project
|
Quality
of the project will be observed as per the standards of inspection for
acceptance for LPG pipeline installation issued by certain organizations under
central government and also as per Party A’s recognized detailed shop-drawings
regarding this project. The quality of the pipes should be completely up to
the
certain regulations issued by relevant organizations under central government
and the key controllers like valves will be taken from
importation.
| 3) |
Unit
price and total amount of the
contract
|
The
unit price for the target LPG system project is RMB 2,500 per household. With
150 households in all, the total amount of this contract will be RMB 375,000.00
say: RMB Three Hundred and Seventy Five Thousand Yuan
Only.
| 4) |
Payment
terms
|
Party
A will pay 50% of the total contract amount to Party B three months before
Party
B enters into the working site. Once Party B has completed the project which
has
successfully passed the inspection for acceptance made by government officers
in
charge of gas utility affairs,
Party
A should pay Party B another 47% amount against the contract value within three
days while the rest amount of 3% has to be kept as
quality
guarantee deposit that can only be refunded to Party B from Party A within
one
week upon expiration date of quality warranty period.
| 5) |
The
project duration
|
As
soon as this contract is signed, Party A should provide Party B with the
residential complex’s construction completion plan and also duly send the
notification of Entering into the working site for installation
to
Party
B when the residential complex has already possessed readiness
For
the gas project (e.g. the buildings are covered with roofs, outdoors-main-walls
are completed and the standard height of the courtyard land are made up). Then,
Party B has to complete the entire installation and construction of the LPG
system within 60 working days after receiving the notification sent by Party
A.
| 6) |
Rights
and obligations for both parties
|
| A) |
For
Party A
|
| a) |
Pays
the due amount as per payment stipulations of the contract to Party
B.
|
| b) |
Offers
land for building up central gas station and locate it as
per
|
security
plan issued by certain government organizations. Also be responsible for
completion of water, electricity and roads linked with the said
station.
| c) |
Assists
Party B to educate the users to observe those warnings and regulations
told by “ Users’ Manual for Safe use of LPG pipeline System” and take good
care of the facilities and appliance of the
system.
|
| d) |
Cooperates
with Party B for smooth progress of installation and construction and
provide Party B with due working conditions necessarily on the spot
based
on detailed shop-drawings. In case that completion of the project is
delayed because of occurring of the working conditions, Party B is
to be
allowed to postpone the time for completion
accordingly.
|
| e) |
As
LPG pipeline system is a part of the supporting facilities attached
to
Party A’s buildings, hence, Party A has to actively assist Party B to
submit all the applications regarding the project for government’s
approval. The handling charges for such affairs are supposed to be
all
covered by Party B itself.
|
| B) |
For
Party B
|
| a) |
Sends
professional project supervisors to watch and check the whole course
of
the installation and construction as quality control
measures.
|
| b) |
Assures
timely progress of the project and good quality of the system built
up.
The final handover can only be made under the approval by the government
department in charge of urban construction strictly as per “The
Regulations of Inspection and Acceptance for Urban LPG Pipeline Project“
issued by certain government
department.
|
| c) |
Is
responsible for submitting the applications for government approving
the
installation and construction and pay for the charges
concerned.
|
| d) |
Remains
to be responsible for maintaining the facilities and appliance free
in
one-year warranty period even though the handover is made after the
network of the system is
completed
|
and
readiness under qualified conditions for supplying gas and starting ignition
is
confirmed with successfully passing through the formalities of inspection and
acceptance.
| e) |
Spread
“Users’ Manual for Safe use of LPG pipeline System” to all
|
the
users and make them be well aware of the common sense and instructive points
regarding safely using the pipeline system.
| f) |
Once
LNG enters into Zunyi City, Party B will be responsible to make the
complex’s pipeline system to be linked with the main pipeline of LNG
system free of charge.
|
| 7) |
Responsibility
of breach of the contract
|
| A) |
For
Party A
|
Once
the contract is signed, Party A, if not takes action of executing the contract
or not effects payments for those steps stipulated in the contract, will then
completely bear the economic loss caused by such breach of the contract and
additionally pays
penalty
fees amounted to that of 10% against the contract value.
Delayed
paying will arouse late-fees amounted to that of 1% against the value of the
original penalty fees per month.
| B) |
For
Party B
|
| a) |
Unless
force majeure occurs, Party B, if does not complete
the
|
project
as per the decided schedule, will then pay penalty fees amounted to RMB1,000
per
day to Party A for per-day delay.
| b) |
If
failed to pass the inspection or with loss being made because of the
problems caused by unreasonable design for the gas system or poor-quality
of the project, Party B will be held responsible for making up the
loss
except those accidents caused by users’ improper use of the gas
system.
|
| 8) |
Settlement
for disputes
|
With
dispute, if any, both parties agree, first of all, to negotiate with each other
for solution, otherwise, both also agree to go for lawsuit
locally
at People’s Court in Zunyi.
For
those matters not stipulated in this contract but practically meet with, both
parties agree to mutually work out solution to settle them
by
signing a supplementary agreement to add to this contract. The said
supplementary agreement will become a part of the contract and bear the same
lawful effectiveness with the original contract.
| 9) |
The
contract will come into force as soon as both signatures and stamps
are
put on it.
|
| 10) |
The
contract has been made into four sets, of which, either party keeps
two
for files and for execution as
well.
|
Party
A: Zunyi Branch of Guizhou Tobacco Co.
Representative:
(Signed)
Address:
Xx.00 Xxxxxx Xxxx, Xxxxxxxxxxx Xxxxxxxx, Xxxxx, Guizhou
Tel:
0852 - 0000000
Party
B: Zunyi Jiahong Gas Co Ltd
Representative:
(Signed)
Address:
The 2nd
Floor in Area Xx.0, Xxxxx Xxxxxx, Xxxxxxxxxxx Xxxxxxxx, Zunyi,
GUizhou
Tel:
0852 - 0000000
Dated
on 02 Sept., 2006
