Exhibit 10.31
Construction Contract
In accordance with the principle of openness, impartiality and fairness, the
public bidding meeting on the Triamine Project - Refinery Workshop and Relevant
Structures and Earth Hardening Project of Shandong Bangsheng Chemical Co., Ltd.
was a full success. Through friendly negotiation, Shandong Bangsheng Chemical
Co., Ltd. and Chen Houzhi, the successful bidder, agree to establish this
contract. The parties hereby agree as follows:
Party A: Shandong Bangsheng Chemical Co., Ltd. (hereinafter referred to as
"Party A")
Party B: Chen Houzhi (hereinafter referred to as "Party B")
I. Project Name: Triamine Refinery Workshop and Relevant Structures and Earth
Hardening Project
II. Type of Contract: Contract for labor and materials
III. Projected Engineering Work Load:
Construction Cost: Construction payment shall be done in line with the
State's current construction flat rate and other related documents.
Projected construction cost of refinery workshop: RMB 455,000 (four
hundred and fifty-five thousand) yuan;
Projected construction cost of related structures: RMB10,000 (ten
thousand) yuan;
Projected construction cost of Earth Hardening Project: RMB 35,000
(thirty-five thousand) yuan.
Total: RMB 500,000 (five hundred thousand) yuan.
The final payment shall be based on the actual volume of works.
IV. Construction Period: At the request of Party A, the construction shall be
completed within 30 days after the signing of this contract
V. Mode of Payment:
30(C)++ of the total construction cost shall be paid within 10 days after
the equipment and staff of the unit in charge of construction arrive the
construction site and come into operation; 30(C)++ of the total
construction cost shall be paid after the main body of the construction is
completed; 30(C)++ of the total construction cost shall be paid after the
construction has been checked and accepted; the remaining 10(C)++ shall be
paid off at a single payment within one year after the completion of
construction, henceforward this contract shall become self-annulled.
VI. Quality Requirement and Acceptance Criterion:
1. Quality Grade Standard: superior
2. Party A provides construction site featured "three put through one
level", and a construction map. Party A is also responsible for the
joint checkup of the blueprint before starting.
3. During construction, Party B shall carry out construction strictly
in adherence to the technological requirements of the blueprint and
other related standards and make sure to clear the construction site
after finishing the work.
4. Modification of Design: Both parties shall agree on a new
construction cost based on the actual modification.
5. Acceptance inspection of this construction shall subject to the
requirements of Party A and the blueprint.
6. Party B shall be submissive to the quality supervision and
administration of the supervisor. The supervisor shall come up with
suggestions regarding the quality of construction on which the
improvement should be based and efforts should be taken to achieve
satisfactory quality.
VII. Safety Responsibility:
During construction, Party B shall work out related safety rules which
shall be strictly followed and prevent any things in the nature of
violating the basic three work safety rules. Should an injury on duty
happen, Party A should give help in immediate rescue. All responsibilities
and expenses shall be shouldered by Party B.
VIII. Rights and Obligations of both Parties:
1. This contract has legal effects. Neither Party shall deliberately
terminate or modify the contract; otherwise it is regarded as a
breach of this contract. The party in breach shall pay the other
Party 3(C)++ of the total construction cost as penalty.
2. Party A only provides Party B with the blueprint, technology
information and other main materials needed for the construction.
Other machinery, equipment and tools shall be provided by Party B
itself.
3. Party B shall guarantee the quality of construction and conduct
quality control during the construction. If some work has to be done
again as a result of quality failure, Party B shall bear all
economic losses. If some work has to be done again due to the
misplay of any of the technical instructions by Party A, Party A
shall bear the responsibility.
4. During construction, Party B shall abide by rules and regulations
and be obedient to Party A's management, and complete construction
in time. A reward/penalty of RMB 2,000 yuan is implemented for each
day ahead of / behind the deadline. The construction period could be
correspondingly prolonged in case of the force majeure or a rain or
snow lasting for over 4 hours. If the construction is suspended or
delayed because the quality failure results in the stop of the work
or the work has to be rectified and improved as the company in
charge of the supervision so demands, the construction period shall
not be prolonged.
5. After the project is contracted by Party B, it shall not subcontract
the construction to a third party in any form or by any reason.
Otherwise, it would be deemed as a breach of this contract. After
completing the contract, Party B shall hand in to Party A an
application for an acceptance inspection in written form. After the
construction got accepted, Party B shall provide an acceptance
report of construction.
IX: Settlement of Disputes:
Both parties shall conduct sincere cooperation and settle disputes of
construction through friendly negotiation. If the negotiation fails,
either Party could take the dispute(s) to the local people's court.
X: This contract shall become effective upon the signature and seal of both
Parties.
XI: This Contract has two originals, and each party shall hold one copy.
Party A: Shandong Bangsheng Chemical Co., Ltd. (seal)
Legal Representative: /s/ ▇▇ ▇▇▇▇▇▇
Party B: Chen Houzhi
Legal Representative: /s/ Chen Houzhi
Date: March 1, 2005