Agreement Concerning the Provision of Power,
Water Supply and Welfare Facilities
(LJ102-5)
Party A: Liuzhou OVM Joint Stock Co., Ltd.
Party B: Liuzhou OVM Construction Machinery Co., Ltd.
1. Party A agrees and warrants the provision of water and power supply
facilities owned by Party A for the use of Party B is established. Party B
shall pay for the consumption of water and power according to the amount
actually consumed. The rates shall be the same as those actually payable
by Party A to the water and power supply authorities.
2. Party B shall settle its consumption of water and power to Party A to the
water and power supply authorities.
3. Party A agrees that, upon Party B request, it will transfer to Party B all
the water and power supply facilities within the factory site. The
transfer fee shall be determined through negotiations between both
parties.
4. Party A agrees that Party B and its staff and workers shall have the right
to use Party A's existing welfare facilities. Party B shall share the
expenses for the use of the welfare facilities.
5. The expenses for the welfare facilities shall be shared in the following
manner:
(1) Staff canteen meals administration fee: a monthly fee of RMB 30.00
per person based on the total number of staff and workers of Party B
who regularly dine in the canteen.
(2) Medical administration fee: a monthly fee of RMB 12.00 per person
based on the total number of the staff and workers of Party B.
(3) Dormitory rental for singles: a monthly fee of RMB 60.00 per person
based on the total number of the staff and workers of Party B who
reside in the dormitory.
(4) The compensation for the use of other welfare facilities by Party B
and its staff and workers shall be shared after mutual agreement
with reference to the rates determined above.
6. Party B shall pay Party A its previous month's share of the expenses for
the use of the welfare facilities before the 15th of each month.
7. The compensation to Party A for the use of the welfare facilities by Party
B shall be adjusted every three years. The exact rate shall be determined
through mutual negotiations with a limit of no more than 10% per
increment.
8. This Agreement shall come into effect after it is signed by the corporate
representatives of both parties and stamped with the common seal of both
parties.
For and on behalf of
Party A: Liuzhou OVM Joint Stock Co., Ltd.
------------------------------
(Xx Xxx Sen)
Corporate Representative
For and on behalf of
Party B: Liuzhou OVM Construction Machinery Co., Ltd.
--------------------------------
(Ching Lung Po)
Corporate Representative
Dated: June 5, 1995
2
January 6, 1997
OVM International Holding Corporation
x/x Xxxx Xxxxxxx Xxxxxxx
Xxxx 0000, 20/F., Universal Trade Center,
000X Xxxxxxxxx Xxxx, Xxxxxxx
Xxxx Xxxx
Attn: Xx. Xxxxx Lung Po
------------------------
Dear Sirs:
Re: English Translation of Chinese Documents
We have reviewed the Chinese versions of the following documents and the English
translations which you have provided:-
1. Articles of Association of Liuzhou OVM Construction Machinery Co., Ltd.;
2. Joint Venture Contract dated April 18, 1995 between Kolcari Investments
Limited and Liuzhou OVM Joint Stock Co., Ltd.;
3. Agreement Concerning the Commencement date of the Financial Accounts dated
January 17, 1995 between Kolcari Investments Limited and Liuzhou OVM Joint Stock
Co., Ltd.,
4. Agreement Concerning the Entrustment of the Heat Treatment Plant with
Processing Task dated June 5, 1995 between Liuzhou OVM Construction Machinery
Co., Ltd., Liuzhou OVM Joint Stock Co., Ltd. and the Heat Treatment Plant;
5. Agreement Concerning the Transfer of Intangible Assets dated June 5, 1995
between Liuzhou OVM Construction Machinery Co., Ltd. and Liuzhou Joint Stock
CO., Ltd. and the Exhibit List of Items of Technical Know-how Transferred;
6. Agreement Concerning the Provision of Power, Water Supply and Welfare
Facilities dated June 15, 1995 between Liuzhou OVM Construction Machinery Co.,
Ltd., and Liuzhou OVM Joint Stock Co., Ltd.,; and
7. Supplementary Agreement on the Transfer of Intangible Assets dated
December 18, 1995 between Liuzhou OVM Construction Machinery Co., Ltd., and
Liuzhou OVM Joint Stock Co., Ltd.
Please note that we do not hold qualification in translation but to the extent
that we have reviewed the above English translations, we believe the
translations, incorporating our suggested amendments, should be fair and correct
translations of the various corresponding Chinese documents above.
Yours faithfully,
Li Xxxx Xxxxx
Senior Lawyr
