SUPPLEMENTARY AGREEMENT CONCERNING COLLECTION OF ACCOUNTS RECEIVABLE AND
ALLOCATION OF EXPENSES INCURRED ON COLLECTION OF ACCOUNTS RECEIVABLE
(LJ504)
Party A: Liuzhou OVM Joint Stock Company Limited
Party B: Kolcari Investments Limited
Party C: Liuzhou OVM Construction Machinery Company Limited
WHEREAS, A Joint Venture Contract (the "Contract") dated April 18, 1995 was
entered into between Party A and Party B for the establishment of Liuzhou OVM
Construction Machinery Company Limited, a Sino-foreign equity joint venture.
According to Chapter Eight, Article 19.6 of the Contract, Party A shall warrant
the recoverability of accounts receivable and other receivables (collectively
the "Receivables") injected into Party C. However, the Contract did not mention
about the responsibility for collection of such Receivables and the allocation
of expenses incurred for the collection of such Receivables.
NOW THEREFORE, pursuant to friendly mutual consultations, the parties agree as
follows:
1. Commencing from the date of incorporation of Party C, Party C shall be
responsible for the collection of the Receivables.
2. Expenses incurred for the collection of the Receivables (the "Collection
Expenses") shall be borne by Party A. The annual Collection Expenses shall
be equal to 6.3% on the actual amount collected from the Receivables for
each particular year. Party A shall reimburse the Collection Expenses to
Party C by the end of each fiscal year.
Party A:
Liuzhou OVM Joint Stock Company Limited
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Representative: ( Wu Guosen)
Party B:
Kolcari Investments Limited
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Representative: (Ching Lung Po)
Party C:
Liuzhou OVM Construction Machinery Company Limited
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Representative: (Ching Lung Po)
Dated: October 18, 1996
