English Summary Translation) Chongqing Guiyuan Project Liyuan Zone Construction Agreement
Exhibit
10.15
(English
Summary Translation)
Chongqing
Guiyuan Project Liyuan Zone
Employer:
Chongqing Foguang Tourism Development (Group) Co., Ltd.
Contractor:
Chongqing Hongxing Construction Co., Ltd.
In
accordance with the “Contract Law of the People’s Republic of China” and other
relevant Chinese laws and regulations, Employer will pay contractor for civil
engineering services in Liyuan Zone. Both Parties signed this “Construction
Contract” to define their rights, obligations and economic
responsibilities.
Article
One: Name of the project
The name
of the project is Civil Engineering of Chongqing Liyuan Zone for Guiyuan
Project. (The working term of Liyuan Zone is 250 days from May 20, 2010 to
January 29, 2011.)
Article
Two: Location of the project
The
location of the project is Group 6, Jiangnan Longqiao Village,
Chongqing
Article
Three: Scope of Work
The scope
of work is civil engineering services in Liyuan Zone; more detailed contents can
be located in the Xxxx of Quantities.
Article
Four: Contracting Methods and Project Cost
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1.
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Contracting
Methods: Contractor contracts the entire project. The contractor can
sublet project to sub-contractors. However, Contractor is responsible for
quality, time limit and safety.
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2.
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The
temporary total cost of Liyuan Zone project is 131,229,000.00 RMB (tax
included). The actual total project cost shall be based on actual project
quantities.
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Article
Five: Project Period
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0.
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Time
limit: The time limit for different sub-projects shall be followed up with
the written notification from the Engineering Department. Contractor must
complete all sub-projects and the entire project in accordance with the
employer’s schedule.
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1.
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The
project can be delayed, if any one of the following occurs (must be
confirmed by employer):
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1)
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Employer
modifies the design during the construction
period;
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2)
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Employer
cannot handover the construction field to contractor at the time, which
was decided by both parties.
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3)
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Some
natural disaster, or continuous water and power failure caused by the
employer.
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2.
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If
the contractor causes 10% delay in accordance with the employer’s
schedule, employer has right to terminate this contract, and contractor
has obligation to pay 10% of the total project cost as compensation for
breach of contract. If the 10% compensation is not enough for paying the
employer’s loss, the contractor shall pay for actual
loss.
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Article
Six: Construction Requirements:
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1.
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The
contractor must perform its construction activities in accordance with the
employer’s design drawings and related construction
information.
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2.
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The
contractor must set up a tight construction management, check before
acceptance and send the summary of construction and acceptance to
employer.
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3.
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After
completion of the project, the contractor shall clean the construction
site. Also, the contractor shall deliver the construction waste to the
designated place stipulated by the
employer.
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Article
Seven: Project Settlement
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1.
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The
price of the project shall be in accordance with the approved list price,
no other fees or expenses shall be
included.
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2.
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The
accounting calculation of the project shall be in accordance with the
actual project quantity list.
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3.
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The
total project price shall be in accordance with the entire cost. If more
than 10% of the entire project is subcontracted, or employer has some
special requirements (special materials), both parties shall negotiate the
new price for the project.
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Article
Eight: Payment Term
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1.
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The
contract shall report the monthly construction quantities to the employer
on the 25th
of every month (the construction quantities must be agreed by the
employer). The employer shall pay 80% of the accumulated project fund. The
employer shall keep 5% of the project fund until the project has been
completed 95% or more.
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2.
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After
the inspection and approval of the project by the employer, the contractor
shall receive 97% of the fund of the total project from the employer
within one month. The remaining 3% of the fund shall be kept as warranty.
The employer shall pay the remaining 3% of the fund to the contractor in
two years (with no interest), if the quality of the project is
satisfactory.
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3.
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The
contract shall take care of any fees accrued in this project, including
taxes.
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Article
Nine: The inspection and acceptance of the project
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1.
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After
completion of the entire project, the quality inspection and acceptance
test shall be in accordance with the “The Standard of Quality Test of
Construction”.
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2.
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If
a certain part of the project cannot pass the employer’s inspection, the
contractor must rework on it. The contractor shall be responsible for
bearing rework fees.
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3.
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If
the contract is not in accordance with the employer’s design or use poor
materials, the contractor shall be responsible for rework and bear all
expenses. If the contractor refuses to rework or the rework still cannot
pass the employer’s inspection, the employer has the right to terminate
this contract. The contractor has the obligation to pay 10% of total
project cost as compensation for breach of contract. If 10% compensation
is not enough for paying the employer’s loss, contractor shall pay for the
actual loss.
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Article
Ten: The Employer’s Obligation
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1.
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The
employer shall provide the approved construction drawings to the
contractor.
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2.
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The
employer shall coordinate the water and electricity on the construction
site and other related construction
issues.
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3.
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The
employer shall provide a qualified construction site, which needs to be
accepted by the contractor. The employer has no obligation after the
contract accepts the construction
site.
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4.
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The
employer’s representative: Guangyong He deputy manager is the only person
who is responsible for coordination, inspection, supervision of the
construction site from the employer’s
side.
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Article
Eleven: The Contractor’s Obligation
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1.
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The
contractor shall provide the qualification certificate for materials,
which is used in construction site. The quality of the materials must be
inspected by the employers.
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2.
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The
contractor shall follow the employer’s
requirements.
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3.
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The
contractor shall take care of the procedure of importation of water and
electricity in the relevant government department. Also, the contractor
shall be responsible for the safety of the construction
site.
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4.
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The
contractor shall coordinate with the
employer.
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5.
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The
contractor shall be liable for any damages as a consequence of any
accident or injury to any xxxxxxx or other person in the employment of the
contractor or any subcontractor.
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6.
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The
contractor shall be liable for any damages as a consequence of any damage
to the employer’s property.
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7.
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The
contractor shall follow up with the signature system of the
project.
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8.
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After
completion of the project, the contract shall provide inspection report to
employee within 30 days.
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9.
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The
contractor shall provide the project quality assurance to the employer
after completion of the project.
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10.
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The
contractor shall provide 2 years of warranty for this
project.
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11.
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The
contractor is responsible for any documentation or other related fees by
the local construction bureau.
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Article
Twelve: Breach of contract
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1.
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The
contractor shall pay 0.1% of the project settlement amount for any one-day
delay on project with the exception of natural
disaster.
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2.
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The
employer is responsible for compensation, if the employer cannot make the
payment on time.
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3.
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The
contractor shall pay 0.1% of the project settlement amount per day, if the
contractor cannot provide the completion report and materials on
time.
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4.
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If
a party wants to terminate this contract, it must negotiate with the other
party and get the permission from the other party. Otherwise, the party
who wants to terminate the contract shall be responsible for any expense
caused by termination of the
contract.
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Article
Thirteen: Settlement of disputes
All
disputes in connection with this contract on the execution thereof shall be
settled primarily through negotiations. In the event no settlement can be
reached, both parties have rights to submit for arbitration to the local
arbitration commission.
Article
Fourteen: Other matters
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1.
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The
contractor is responsible for fees, which are related to water and
electricity on the construction site. The employer shall deduct 1% of the
settlement amount for paying water and
electricity.
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2.
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The
employer shall deduct 0.03% of settlement amount as clean-up cost for
cleaning the construction site after the employer accepts the finished
project.
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3.
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The
employer shall pay construction payment to the third party sub-contractor
directly, if the contractor does not make the payment in accordance with
the contract.
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4.
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The
employer will mail or fax the documents to the contractor’s address and
fax listed in this contract.
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5.
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The
contractor and employer shall negotiate for any new issues or problems,
which occurs during the construction period. They can execute a
supplemental agreement if
necessary.
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6.
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The
contract is executed in two originals and two
copies.
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The
employer: Chongqing Foguang Tourism Development (Group) Co., Ltd.
Representative:
Yiyou Ran
Signature.
The
contractor: Chongqing Hongxing Construction Co., Ltd.
Signature
Date: May
20, 2010.