Supplement Agreement on Acquisition Payment (English Translation)
Exhibit
10.1
Supplement
Agreement on Acquisition Payment
(English
Translation)
Party A:
Home System Group
Party B:
Xxxxxx Xxxx, Xxxxxxxx Xxxx
On
October 1, 2008, Party A acquired Asia Forever Investment Limited and
its wholly owned subsidiary, Zhongshan City Xxxxx Appliances Co., Ltd. The
total purchase price was 270 million RMB, which would be divided into four
installments over two years. In September 2008, Party A paid 55 million RMB to
Party B; and according to the original purchase agreement and disclosed
information, Party A has to pay party B totaling 80 million RMB by the end of
June 2009. After negotiation, both parties have agreed:
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1.
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The
cash payment part. The total cash payment is 40 million XXX,
xxxxx 00 xxxxxxx XXX was paid in April, 2009 and it came from the accounts
receivable collection from Wei’er Industrial Ltd.; 20 million RMB was paid
in June and it came from the accounts receivable collection from Wei’er
Industrial Ltd; and the remaining 10 million RMB will be paid by Zhongshan
City Xxxxx Appliances Co., Ltd in both July, 2009 and December 2009, 5
million RMB respectively.
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2.
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The
fixed asset part. Party A will transfer some land and buildings of
Zhongshan City Xxxxx Appliances Co., Ltd facilities to Party B or the
individual(s) appointed by Party B, valued at 41.58 million RMB, which
appreciated 15% from its fair market value of 36.16 million RMB based on
the appraisal report done by the third party agent on June 25, 2009. The
legal fee and tax related to this property transfer will be shared by both
parties according Chinese law and regulations, and either Party B or the
individual(s) appointed by Party B will be in charge of the transfer
process. (The appraisal report and related notarization will be provided
separately)
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3.
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Regarding
the remaining balance of the total purchase price of the acquisition, it
might be paid either through external financing or issuing new shares from
Home System Group upon further negotiation and agreement between Party A
and Party B.
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Party
A: Home System Group
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/s/
Xxxxxx Xxxx-Chief Executive Officer
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/s/
Xxxxxxxx Xx-Chief Financial
Officer
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Party
B:
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/s/Xxxxxxxx
Xxxx
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/s/Xxxxxx
Xxxx
