The Agreement Concerning Increasing the Integrated Management Fee and Enhancing Administration with Shanghai Hai Lu Kun Lun Hi-tech Engineering Co., Ltd.
The
Agreement Concerning Increasing the Integrated Management Fee and Enhancing
Administration with Shanghai Hai Lu Kun Lun Hi-tech Engineering Co.,
Ltd.
The
cooperation between Shanghai Si Fang Boiler Factory (hereinunder referred to
as
Party A) and Shanghai Hai Lu Kun Lun Hi-tech Engineering Co., Ltd. (hereinunder
referred to as Party B) has been in effect for several years and has had certain
good results. For the mutual benefits in cooperative manufacturing activities
and in order to continue execution of the original agreement, upon mutual
consultation, it is agreed by the parties to increase the integrated management
fee and enhance administration of the cooperative manufacturing.
NOW,
THEREFORE, it is agreed:
I. Integrated
Management Fee
In
order
to enhance the reputation and creditability of Si Fang's trademark and
tradename, on top of the original integrated management fee, it is to add
additional integrated management fee of 600,000 XXX (xxxxxxxxx, 000,000 XXX
per
year for 2008, and 300,000 RMB per year for 2009). The payment method should
follow the agreement dated June 25, 2007.
II. Enhancing
the Administration
1. The
administration rules for the cooperative manufacturing set forth in the appendix
to the agreement dated December 28, 2006 shall remain unchanged.
2. Supplemental
Administration Rules
(1) The
sales
contracts and manufactured products by the cooperative manufacturing enterprise
must be signed by the legal representative of the cooperative manufacturing
enterprise for acknowledgement (including the tri-party contracts for the boiler
products orders for which Party B obtains by itself).
(2) In
order
to control the product quality, the cooperative manufacturing enterprise must
select suppliers and contractors who have qualifications and satisfy the
requirements of Party A for material purchase, outsourcing, etc. Consent and
confirmation from the legal representative of the cooperative manufacturing
enterprise should be obtained in relation thereto. Further, the personnel of
the
outsourcing entities who need to work inside must have entrance documentation
and the special workers such as welders should show their qualifications to
work.
(3) When
the
cooperative manufacturing enterprise bids for projects, it should do so in
the
name of Party A, apply to Party A in writing and obtain the confirmation from
the legal representative of the cooperative manufacturing enterprise and the
vice president in charge of sales of Party A. Upon confirmation by the president
of the cooperative manufacturing enterprise, the company chop of Party A should
be applied on the bidding documentation.
(4) When
Party B needs Party A to issue manufacturer authorization for bidding purpose,
it should apply in writing and obtain the confirmation from the legal
representative of the cooperative manufacturing enterprise and the vice
president in charge of sales of Party A. Upon confirmation by the president
of
the cooperative manufacturing enterprise, the company chop of Party A should
be
applied on the bidding documentation.
(5) When
the
cooperative manufacturing enterprise needs assistance from Party A for commodity
inspection, customs declaration for its exported products, it should apply
in
writing and obtain the confirmation from the legal representative of the
cooperative manufacturing enterprise and the vice president in charge of sales
of Party A. Upon confirmation by the president of the cooperative manufacturing
enterprise, the import and export department of Party A should assist in
processing.
(6) When
the
technical documents, drawings, etc. of the cooperative manufacturing enterprise
need to be reviewed by Party A, it should apply in writing and obtain the
confirmation from the legal representative of the cooperative manufacturing
enterprise and the vice president in charge of technology of Party A.
Thereafter, the general office of Party A should assist in
processing.
(7) When
the
cooperative manufacturing enterprise needs Party A to issue the product quality
certification for its products, it should apply in writing and obtain the
confirmation from the legal representative of the cooperative manufacturing
enterprise and the management reprehensive of Party A. Upon the confirmation
by
the president of the cooperative manufacturing enterprise, the quality warranty
department of Party A should assist in processing.
III. The
clauses in the original leasing and cooperative manufacturing agreement that
are
not affected by the amendments herein should remain in full effect. Both parties
will consult with each other for any future matters.
IV. This
agreement is in five copies (Each of Party A and Party B should hold two copies
and the legal representative of the cooperative manufacturing enterprise should
hold one copy).
|
Party
A: Shanghai Si Fang Boiler Factory
|
Party
B: Shanghai
Hai Lu Kun Lun Hi-tech Engineering Co., Ltd.
|
|
/s/
President
|
/s/
Chairman of the Board
|
Date:
August 20, 2008
2
