The Contract of LPG Pipeline installation Project
Exhibit
10.1
Party
A: Zunyi City ▇▇▇▇-▇▇▇▇▇ Real Estate Development Co. Ltd. (Hereafter
referred to as Party A)
Party
B: Zunyi Jiahong Gas Co. Ltd. (Hereafter referred to as Party
B)
In
accordance with the regulation that “No LPG cylinder can be used in high
buildings” and Government [2002] ▇▇. ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇ Price
Bureau to install pipelines through planning, Party A and Party B agree that
Party A should collect pipeline installation fees from every resident and pass
them to pay to Party B for the installation project. The details are
as follows:
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1)
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The
Contract Object
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2)
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The
ownership of the Object
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Party
B
is responsible for the maintenance and replacement to guarantee the normal
use
of the system and own the whole system. The resident has the long
term right to use the system.
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3)
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The
Quality of the Project
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The
detailed construction documents and graphs by designer and the National
Inspection Standard for LPG Pipeline Construction will be applied as the
standard of the project. The quality of the pipes should meet the GB
standard. The material used for controlling devices such as valves
should be imported. The quality standard should meet with GB ones and
should be checked by relevant government agencies before use.
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4)
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Contract
Price
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The
contract price for the installation and construction of the system is RMB 2250
per household, thus the total will be RMB______________. There are
192 households involved in the project, among them there may be 10% maximum
residents who don’t need the pipelines. If the number is greater than
10%, Party A agrees to make up the difference (The exact number of the
households will be calculated as the completion of the system). The
number of households in the lower floors (not including the above 192
households) will be determined later.
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5)
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Payment
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Upon
the
signing of this contract, Party A should pay 30% of the total project fees
to
Party B as the payments for the design and raw material. The payment
should be made no later than February 2008. Party A should pay to
Party B another 30% upon the completion of underground pipelines and the
construction of the central supply depot. Three days after the
completion of the system and the approval of government inspections, Party
A
should pay to Party B the remaining 40% of the total project fees.
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6)
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Safety
Responsibility
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Party
B
should be self responsible for the safety devices and safety controls during
the
construction.
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7)
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Project
Duration
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After
the
signing of this contract, Party A should provide Party B the schedule of the
whole buildings’ completion plan. If the buildings are ready for the
installation of the LPG system (including the completions of the roofs, exterior
decoration and roads and sidewalks among the buildings), and Party A formally
sends Party B a Notice of Readiness for Installation, Party B will complete
the
construction and installation within 100 working days from the day of the
receipt of the Notice.
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8)
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Responsibility
of Each Party
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A)
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Responsibility
of Party A
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a)
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Make
the payment on time according to this
contract.
|
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b)
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Provide
the land for the building of the central supply depot and position
it
according to the requirements of State Safety
Regulation. Provide the ready access to water and electricity
needed for the depot and measurement meters for water and electricity
when
Party A applies the installation of them for each
household. But Party B should be responsible for the
fees.
|
|
c)
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To
make it a public knowledge or to educate the households to follow
“Users’
Handbook for Safely Using LPG Pipeline” and to take care the system
facilities.
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d)
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Coordinate
for and assist Party B during the construction so as to provide Party
B an
ideal working environment and conditions. Party B will extend
the Project Duration if there are delays caused by the changes of
working
conditions.
|
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e)
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Pipeline
system is supplementary facility for Party A’s
buildings. Therefore Party A should assist Party B to apply all
kinds of approvals from authority at the expenses of Party
B.
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B)
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Responsibility
of Party B
|
|
a)
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To
assign a professional to supervise specifically from the beginning
to the
end the quality of the installation and
construction.
|
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b)
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To
guarantee the project to be done with the planned schedule and quality
requirements until the government agencies inspect and approve before
formal use. Party B should take responsibility of the
constructor.
|
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c)
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To
make all applications for licenses, permits, approvals, inspections
and
bear the costs.
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d)
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To
dispatch “Users’ Handbook for Safely Using LPG Pipeline” to all users of
the system and other safety or users’
pamphlets.
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e)
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If
natural gas is introduced into Zunyi, Party B agrees to provide natural
gas without additional charges from either Party A or the
users.
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9)
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Violation
Responsibility
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C)
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Party
A
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a)
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Once
the contract is signed, if Party refuses either to execute the contract
or
to make the payment, Party A should bear all economic losses caused
and
pay 10% of total fees as penalty for breaching the
contract. The penalty will charge 5% delay payment of the
penalty amount per month.
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D)
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Party
B
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a)
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If
Party B can’t complete the project according to the schedule, not
including cases caused by force majeure, then Party B should pay
to Party
A RMB1000 per day.
|
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b)
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If
the project can’t get the approval or get through the inspection by
government because of the problems of the master design or quality
control
during the construction, then Party B should compensate to Party
A the
costs Party A has to pay for the residents for the failure to release
the
household on time.
|
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10)
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Solution
of the Dispute
|
Party
A
and B can make additional agreements for the terms and conditions not covered
by
this contract. The new agreements have the same legal effectiveness
as this contract. If there is any dispute when executing this
contract, if negotiations can’t solve, then a lawsuit can be brought to Zunyi
People’s Court.
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11)
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This
contract will immediately take effect once signed the sealed by both
parties.
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12)
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This
contract has four original copies, each party holds two of
them.
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| Party A: Zunyi ▇▇▇▇-▇▇▇▇▇ Real Estate Development Co. Ltd. | Party B: Zunyi Jiahong Gas Co. Ltd. | |||
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Representative:
(Signed)
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Representative:
(Signed)
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Bank
Account:
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Bank
Account:
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Tel:
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Tel:
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Dated
on
October 26, 2007