Compensation Agreement
for Earlier-stage Work on Development of Shenyang Xita Project
Party A: Shenyang Heping District Investment Promotion Bureau (hereafter referred to as Party A)
Party B: Shenyang Maryland International Industry Co., Ltd.(hereafter referred to as Party B)
Whereas:
1. |
Party B and Heping District Government entered into a Development Agreement of Shenyang Xita Project on April 26, 2004. Pursuant to the agreement, Heping District Government assigned Party B to reconstruct Xita area of Heping District Shenyang. |
2. |
In order to complete the reconstruction of Xita area, Party B has established two new companies namely Shenyang Xinchao Property Co., Ltd. and Shenyang Yindu Property Co., Ltd. for the earlier-stage preparation of Xita Project. |
3. |
Party B won successful bid for land development right of 99,000 sq.m project on August 2005 and paid the land transfer fee of RMB 33,228,480. |
4. |
As the land cost is significantly increased and Shenyang municipal government determines to plan and develop the area as a whole, in consider of the potential risk of project Party B decides to quit the reconstruction of Xita project. |
Based on the above facts, Party A and Party B hereby agree as follows:
1. |
Party B has provided the Statement of Expenses and related receipts of earlier-stage work, and Heping District Government has designated Heping District Audit Bureau and Finance Bureau to audit such expenses. After several negotiations, Party A agrees to compensate Party B RMB 12,345,180 for the earlier-stage preparation of Xita project. |
2. |
As the land transfer fee is charged by the related department of municipal government, Party A shall actively coordinate such department to refund Party B the land transfer fee of RMB 33,228,480. |
3. |
Within 10 days after submitting the application to return Land Confirmation Letter to related department and completing the return procedure by Party B, Party A shall pay RMB 12,345,180 to Party B in one lump sum. If Party A fails to pay on time, the relevant fine and interest shall be charged. |
4. |
Anything not covered in this agreement will be discussed separately by both Parties. |
5. |
The agreement is made in four copies, each Party holds two copies. The agreement will be effective after being signed and sealed by both Parties. |
Party A: Shenyang Heping District Investment Promotion Bureau
Legal Representative: XXX Xxxxx
/s/
Party B: Shenyang Maryland International Industry Co., Ltd.
Legal Representative: XXXXX Xxxx
/s/
06/24/2007
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