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Business plan for new apartment construction 2008 04

Songjung-Dong,Gwangju-Si, Kyonggi-Prpvince

2008. 04

Chung Mok CM Construction. Inc.

Business Plan Summary

New construction of Apartment in Songjung-Dong, Gwangju-Si, Kyonggi Province

1) Project : New construction of Apartment in Songjung-Dong, Gwangju-Si, Kyonggi Province

2) Address : The whole district of #153 Songjung-Dong Gwanjgu-Si Kyonggi Province

1. Outline

2) Address : The whole district of #153, Songjung-Dong, Gwanjgu-Si, Kyonggi Province3) Land Size : 32,969㎡4) Scales : Apartment –187 households (115㎡ ), 202 households (153㎡ ) and subsidiary facilities

2 The Characteristic of Gwangju-Si

☞ Located in Southeast metropolitan area, the Green City with convenient transportation – The best city to live in metropolitan area; population is continuously increasing.

☞ Home of Royal Chinaware and Namhan Mountain Fortress – Gaining attention as daily tour spot to enjoy both history and cultureboth history and culture.

☞ Regulated by various laws such as Environmental Policy Law - Harmony of development and preservation by Water Pollution Control Plan

3 Decisive Sale Price

Type Households Decisive Sale Price / ㎡ Decisive Sale Price / py Per Household

115.119㎡ 187 2,923 9,663 336,548

(Unit : $)

TOTAL

62,934,476

1. Apartment

153.166㎡ 202 3,119 10,311 477,757

Total 389

96,506,914

159,441,390

2. Shopping places

Lots Size Decisive Sale Price / ㎡ Decisive Sale Price / py TOTAL

1F 278.00㎡ 4,694 15,517 1,305,012

2F 278.00㎡ 3,130 10,347 870,008

4 Earning and Expense analysis


US$160 312 884 - =

Sum of Earning Sum of Expense Ordinary Profit

US$134 730 885 US$25 581 999

5 Requesting Initial Capital Investment : US$ 47,450,000-

US$160,312,884 US$134,730,885 US$25,581,999

q g p $ , ,

6 Loan payback plan

Total 1st year 2nd year 3rd year 4th yearTotal 1st year 2nd year 3rd year 4th year

20,696,220 15,518,312 11,235,468 47,450,000

7 Remarks7 Remarks

1) Exchange rate : Selling Rate T/T 1$ : ₩966.6 as of 8 APR 2008.2) Py : ㎡ : = 1 : 3.3058

G tiGreetings,

We are very glad and honored to offer you this investment opportunity.Hope you could take this pleasant and profitable journey to Korea with us.If h i i l d t h it t t t tIf you have any inquiry, please do not hesitate to contact us.We will be looking forward to advance our business soon.Best wishes.

contents

OverviewOverviewCHAPTERCHAPTER 11 OverviewOverviewCHAPTERCHAPTER 11.. 3p3p

Analysis on the development Analysis on the development environment of the establishmentenvironment of the establishment

CHAPTERCHAPTER 22.. 12p12penvironment of the establishmentenvironment of the establishment

Estimating warranted price and incomeEstimating warranted price and incomeCHAPTERCHAPTER 33.. 20p20p

Marketing plan and analysis Marketing plan and analysis on accountson accounts

CHAPTERCHAPTER 44.. 25p25p

ReferenceReferenceCHAPTERCHAPTER 55.. 33p33pRefe enceRefe ence 33p33p

CHAPTER. 1 OverviewOverview


1. Overview

Corporate name Chung Mok CM Construction Inc 165-3 3F Sanghwa Building Samsung-

1) Present status of the business

Corporate name Chung Mok CM Construction, Inc.

Address

165 3 3F Sanghwa Building, SamsungDong, Kangnam-Gu, Seoul

Representative Ko, Young Sun

Corporation Reg. Number 110111 - 2015504 Date of registration 2000.07.03

Business Reg Number 120 – 86 - 09430 Capital $620 733Business Reg. Number 120 86 09430 Capital $620,733

Tel. 02 – 515 - 4560 F.A.X 02 – 552 - 7268

2) The progress of business plan

Date Description Remarkp

2007.12 Reached an agreement to purchase estate

2008.01 Drafted business plan

2008.01 Requested evaluation service of estate cost to Karam Dongguk Appraiser Firm

2008.01 Concluded the construction work contract with Hyundai Development Company Inc.

2008 02 Received intentions of real estate sale with Paradise Global2008.02 Received intentions of real estate sale with Paradise Global


3) O tli3) Outline

-Address: The whole district of #153, Songjung-Dong, Gwanjgu-Si, Kyonggi Province

City Administration Plan(Based on the Law of National Land Use)

- Size : 32,969㎡

- Scales :

Apartment –187 households (115㎡ ), 202 households (153㎡ ) and subsidiary facilities

Class 1 District-level project zone, Class 2 General residential district

Included in thhe 3rd zone of Songjung CAP District

(Based on the Law of National Land Usehouseholds (153㎡ ) and subsidiary facilities (Based on the Law of National Land Use, announced as district-level project zone by April 2005; business-feasible area.)


4) Details of business site (Unit :$)

No. Address Size Purchase Price Remarks

1 153 Songjung-Dong, Gwangju-Si 31,319㎡

2 150-2 Songjung-Dong, Gwangju-Si 793 ㎡

41,382,1643 156-2 Songjung-Dong, Gwangju-Si 132 ㎡



㎡

5) The present status of business area

Total 32,969 ㎡ 41,382,164

SITE

Gwangju-Si ; Confirmed as district-level project zone by April 2005


6) The place of business area and the present status of facilities

1 Business area

6) The place of business area and the present status of facilities

2

2

3

Bus terminal

Gwangju City hall

사업장1

3

4

Gwangju City hall

Tan-bul Elementary School

G j P bli4 5

6

Gwangju PublicHealth Center

Gwangju Public Field

3 Existing apartment complex

56


7) Outline of business area plan


8) Plot plan of the facilities


9) Business schedule

CHAPTER. 2Analysis on the development Analysis on the development environment of the establishmentenvironment of the establishment


2. Analysis on the development environment of the establishment

1) The front view of Gwangju-Si

2) The characteristic of Gwangju-Si

☞ Located in Southeast metropolitan area, green city with convenient transportation – The best city to live in metropolitan area, population is continuously increasing.

☞ Home of royal chinaware and Namhan mountain fortress – Ganning attention as daily tour spot to enjoy both y g y p j yhistory and culture.

☞ Regulated by various laws such as Environmental Policy Law - Harmony of development and preservation by Water Pollution Control Plan


3) Geographical position

Kyonggi Province

Gwangju-Si

37.33’ N

Songjung-Dong

127 08’ E127 26’ E

30.26㎞

127.08 E127.26 E

27.88㎞

37.15’ N


4) Population and size of Gwangju-Si

Population per town, myeon, and dong (2008.3)Annual status of population

4) Population and size of Gwangju Si

Year PopulationGender

HouseholdsRemar

ksMale Female

2008.03 230,628 118,468 112,160 87,286

town, myeon, and dong

Population

GenderHouseholds Remarks

Male Female

Opo Town 52,213 26,699 25,514 19,675

2007.12 229,319 117,740 111,579 86,616

2006.12 222,048 113,875 108,173 83,112

2005.12 214,498 109,769 104,729 79,288

2004.12 205,641 105,212 100,429 74,568

Chowal Town 33,873 17,501 16,372 12,555

Silchon Town 23,026 11,987 11.309 9,257

Dochuk Town 8,262 4,341 3,921 3,261

Tuichon-Myeon 9,473 4,865 4,608 4,019

Namjong-Myeon 1,869 957 922 786

Joongbu-Myeon 2,652 1,398 1,254 1,092

Kyongan-Dong 34,046 17,422 16,624 12,748

S j D 33 509 16 976 16 533 12 388Songjung-Dong 33,509 16,976 16,533 12.388

Gwangnam-Dong

31,705 16,322 15,383 11,505

Total230,628 118,468

112,160 87,286

Class Total Opo Chowal Silchon Dochuk Tuichon Namjong Joongbu Kyungan Songjung Gwangnam

Size per town, myeon, and dong / number of administrative districts (Unit:㎢)

Size 430.96 46.91 55.90 76.18 52.15 60.75 48.57 33.73 6.40 21.87 28.50

dong 228 29 41 34 16 18 14 11 20 22 23

ban 1,240 204 192 138 66 54 40 33 147 179 187


5) Plan for Park development around business area

1

1

) p

Changseok Park and sports park D l t l

2

Development plan

Kyongan stream wetland development plan

3 Kyongan neighborhood park air view

“Aim at delightful residential environment by assuring inhabitants’ recreation area”

3

by assuring inhabitants’ recreation area

3

2


6) Traffic network plan

21

6) Traffic network plan

1Development plan for metropolitan area

2

metropolitan area

Traffic network plan for Metropolitan area

Seoul subway network for3

Seoul subway network for

Metropolitan area

3

Wide traffic network is almost opened; once the local subway network is completed, it will be operating as Seoul’s satellite city (Bed town)


7) C i f i G j Si ( D )7) Current possession of apartment in Gwangju-Si (per Dong)

Location Households Remarks

Kyung - an 3,045

Gwang - nam 4,751

Do - chuk 384

Song - jung 4,015

Sil - chon 3,175

O - po 7,146

Cho - wal 5,588

Total 28,104


8) Current status of admission for apartment business in Gwangju-Si 2007

Enterpriser Location Size Households AdmittedConstruction

companyRemarks

8) Current status of admission for apartment business in Gwangju Si, 2007

Everetee con Tui - chon 27,504 475 '07.8.30 Woolim con.

I & A Song - jung 28,227 450 '07.9.13 Kyungnam con

Han-sol Song - jung 25,400 374 '07.10.2 Woolim con.

Woojung con. Song - jung 28,039 350 '07.10.2 Woojung con.

K D C Song - jung 22,782 344 '07.10.2 Woojung con.

D l G 24 860 357 '07 10 12 B kDa-wol Gwang - nam 24,860 357 '07.10.12 Buksan con.

Hyunjin con. Sil - chon 27,771 376 '07.10.22 Hyunjin con.

L B C & C Kyung - an 12,865 198 '07.10.25 Sungwon con.

Jungil.con Cho - wal 6,991 59 '07.11.13 Sinchang con.

Baksong Cho - wal 27,449 234 '07.11.13 Sinchang con.

Lain Cho - wal 12 331 123 '07 11 16 Sinchang conLain Cho wal 12,331 123 07.11.16 Sinchang con.

Yongkok con. Cho - wal 4,798 80 '07.11.16 Donggang con.

Delim.con. O - po 29,533 248 '07.11.19 Delim.con.

EK con. O - po 14,343 120 '07.11.19 Kumgang con.

Total 292,893 3,788

CHAPTER. 3 Estimating warranted price and incomeEstimating warranted price and income


3. Estimating warranted price and income

1) Market condition for adjacent area

(Unit :$ ㎡ )(Unit :$.㎡ )

Lotting-out Sole size Lowest Highest Average Lotting-out Sole size

Brownstone 148 123 37 96 393 130 434 512 413 821 2 796 3 354

Item Size

12F 3Dongs(Comple

Householdstype Market Price Price per ㎡

Move-in Date

Brownstone 148 123.37 96 393,130 434,512 413,821 2,796 3,354

ISU 165 137.32 72 475,895 506,931 491,413 2,978 3,579

Paradise 79 59.50 83 175,874 227,602 201,738 2,554 3,391

Dongs(Complex) 168

Households168가구

2004.08

17 22F 4

Paradise 109 84.96 166 300,020 331,057 315,539 2,895 3,714

Global 148 126.61 30 403,476 434,512 418,994 2,831 3,309

I-PARK 112 84 96 250 300 020 331 057 315 539 2 817 3 71419-20F 4

2001.1017-22F 4

Dongs 279Households

I PARK 112 84.96 250 300,020 331,057 315,539 2,817 3,714

Hyundai Devel. 158 120.56 76 413,822 455,204 434,513 2,750 3,604

19 20F 4Dongs 326Households

2002.07

Note Due to price cap of sales based on housing law, this market condition is only a reference; the calculation of warranted price is by the circumstances of estate evaluation, building costs and incidental expenses of business area.


2) C l l i f h i ㎡

(1) Legal Requirements & Standard for sale price cap

2) Calculation of the price per ㎡

(Unit : $)

(2) Decisive Sale Price ( $)

type Households Decisive Sale Price / ㎡ Decisive Sale Price / py Per Households

115.119㎡ 187 2,923 9,663 336,548

(2) Decisive Sale Price

TOTAL

62,934,476

(Unit : $)

153.166㎡ 202 3,119 10,311 477,757

1) VAT Included2) Py : ㎡ = 1 : 3.3058

96,506,914


3) Deciding sale price per floor & purchase schedule3) Deciding sale price per floor & purchase schedule

1. Apartment (Unit :$)

2. Shopping places (Unit :$)


4) Payment schedule per round

1. Apartment(Unit :$)

2. Shopping place(Unit :$)(Unit :$)

CHAPTER. 4Marketing plan and analysis Marketing plan and analysis on accountson accountson accountson accounts


4. Marketing plan and analysis on accounts

1) Sales points

CONCEPT

- Various size and dimension for users’ demands

- Reasonable price

Brand new efficient residence for users’ satisfaction- Brand-new, efficient residence for users satisfaction

Supplied sizes • Most preferred sizes(115㎡ and153㎡) Maximize sales rateSupplied sizes Most preferred sizes(115㎡ and153㎡) Maximize sales rate

Interior.etc

• Effective design: User-oriented arrangement

• Interior / equipments : Distinctive equipments for customers’ satisfaction

• Decides price in adjunct with Government’s price cap policySupply price

Decides price in adjunct with Government s price cap policy• Minimum deposit to maximize initial sales

Ensure business stability


2) DEVELOPMENT CONCEPT

▶ Environment-friendly residence & facility

Home Network SystemHi t h it t

▶ High-technology

Secure green tractsHarmonious environment

Hi-tech security system

Well-Being Life

Luxurious residence environment

▶ Specialized arrangement ▶ Vibe Communityarrangement

Maximum efficiency3.4 Bay systemB d t f

▶ Vibe Community

Convenient facility forResidents

Distinctive common areasBrand-new concept ofspace arrangement

Distinctive common areas


3) MARKETING CONCEPT

MARKETING ENVIRONMNET MARKETING CONCEPT TARGETS

• 1: Demander for distinctive• To satisfy both existing andpossible demands

• Environment-friendly concept• Brand new development in urban area

• Positioning as tourists’spot• Distinctive images• Targeting on core customers• Semi-Prestige marketing

• 1: Demander for distinctiveresidence- Urban area end users

• 2 : Regular residents- demander for new apartment

• 3 : Investors

Ascending Values Stage 1 : Pre Marketing

Stage 2 : Main Marketing

Promotion Strategy

S l t t t f• To satisfy both existing andpossible demands

Stage 2 : Main Marketing

Stage 3 : Post Marketing

• Sales support strategy forpromoting customers’ dealmaking

100% early sales


4) M k i S4) Marketing Strategy

Outline

Continuous, appealing exposure through mass media + accurate, core-based targeting

STRATEGICAL POINT

Focus on traffic, facilities, educational environment, cultural heritage

Various advertisements to public for possible customers’ continuous interest

Highlighting the pleasant of utilized environment

Emphasis on geographical / valuable merits for salesEmphasis on geographical / valuable merits for sales

100% lRESIDENTS’

SATISFACTION

100% sales on the initial stage


5) Earning and Expense analysis


6) Annual financial management and loan payback planItem Subject Total 1st year 2nd year 3rd year 4th year Remarks

(Unit :$)

156,226 5,395,155 7,690,472

Loan 47,450,000 47,450,000

Sales 160,312,884 60,883,080 48,528,871 50,900,933

Total 207,762,884 47,450,000 60,883,080 48,528,871 50,900,933

Loan payback 47,450,000 20,696,220 15,518,312 11,235,468

L d 41 382 160 41 382 160

Receipt

Balance brought forward

Land 41,382,160 41,382,160

Tax for transfer 1,903,579 1,903,579

Cession of obligation 88,232 88,232

Total land tax 403,702 201,851 201,851

Contruction works 71,626,424 25,069,248 28,650,570 17,906,606

Removal of obstacle 696 691 696 691Removal of obstacle 696,691 696,691

Service pipe 884,011 884,011

Art piece 82,169 82,169

Design 1,009,952 504,976 504,976

Supervision 953,685 381,474 368,971 203,240

Manpower service 219,119 219,119

Approval fee 362,094 362,094

Transaction fee 103,455 103,455

Association fee 227,522 227,522

Sales trust commission 872,102 872,102

M/H building 1,314,388 1,314,388 Expense

Land rent 103,455 103,455

M/H management 248,292 248,292

Sales marketing 848,857 848,857

Sales agency commission 541,537 541,537

Preservation registration fee 2,164,349 2,164,349

Traffic expense 491 332 491 332Traffic expense 491,332 491,332

Facility expense 1,146,337 1,146,337

Water expense 482,928 482,928

Trust commission 258,225 258,225

VAT 255,353 102,141 102,141 51,071

Loan interest 3,986,677 1,423,500 1,423,500 802,613 337,064Loan interest 3,986,677 1,423,500 1,423,500 802,613 337,064

P/F commission 687,975 687,975

Office operation 869,008 248,288 248,288 248,288 124,144

Spare money 517,277 155,183 258,639 103,455

Total 182,180,885 47,293,774 55,644,151 46,233,554 33,009,407

25,581,999 156,226 5,395,155 7,690,472 25,581,999 Balance carried forward


7) Assumed sales rate & receipt of payment7) Assumed sales rate & receipt of payment

1. Assumed sales rate

Initial sales In 6 months Remarks

1. Apartment 90% 10%

2. Nearby shopping place 100%y pp g p

2. Assumed receipt of payment(U i $)

1st 2nd 3rd 4th 5th 6th Balance

D+4Months D+7Months D+10Months D+14Months D+18Months D+22Months D+26Months

10% 10% 10% 10% 10% 10% 10% 30%

Item D+28Months

3rd year1st year 2nd year

Category D+27MonthsContract fee

Total

(Unit :$)

1. Apartment 158,137,864 15,813,787 15,813,787 15,813,787 15,813,787 15,813,787 15,813,787 15,813,787 47,441,355 2. Shopping places 2,175,020 217,502 870,008 1,087,510

Total 160,312,884 15,813,787 15,813,787 15,813,787 15,813,787 15,813,787 16,031,289 16,683,795 48,528,865

1. Contract fee 15,813,787 14,232,409 790,689 790,689

2. 1st part payment 15,813,787 14,232,408 790,689 790,689

3 2nd part payment 15 813 787 14 232 408 790 689 790 689

Plan

3. 2nd part payment 15,813,787 14,232,408 790,689 790,689

4. 3rd part payment 15,813,787 14,232,408 790,689 790,689

5. 4th part payment 15,813,787 14,232,408 790,689 790,689

6. 5th part payment 16,031,289 14,449,910 790,689 790,689

7. 6th part payment 16,683,795 15,102,416 790,689 790,689

8. Balance 48,528,865 43,784,730 2,372,068 2,372,068

Receipt

Total 160,312,884 14,232,409 15,023,098 15,813,787 15,813,787 15,813,787 16,031,289 16,683,795 45,366,108 3,162,758 2,372,068

60,883,080 48,528,871 50,900,934

CHAPTER. 5 ReferenceReference


5. ReferenceReference

1) Business Resistration Certificate


2) Agreement on the Undertaking of ConstructionKo, Young Sun, the representative of the Chungmok CM Construction Inc. (“A”), and Kim, Jung Joong, the representative of the Hyundai

Development Company Inc. (“B”) agreed to conclude the Agreement on the Undertaking of Construction (“Agreement”) for the Apartment business “A” is planning and faithfully discharge the statements on the Agreement between the parties.

Article 1 (The object of construction)

2) Agreement on the Undertaking of Construction

Article 1 (The object of construction)

1. Site of the construction : the whole area of 153 Songjung-Dong, Gwangju-Si, Kyonggi Province2. Land

1) Gross area : 27,433㎡2) Purpose : Class 2 general residence area

3. Estimated business scale of the project1) Total area : 79,041㎡2) Floor space index : 199.3%3) Households : 371 (34 Py : 86 Households / 46 Py : 285 Households)4) Construction scale : 2 Basement floors, 15 Floors, 8 Dongs (Complex)

4 The business scales of Section 2 and 3 are flexible upon the final approval of the business (Includes Approval of amendment of business4. The business scales of Section 2 and 3 are flexible upon the final approval of the business (Includes Approval of amendment of business plan) and the actual blueprint; the arrangement, households per Py type, and unit household plane are based on the Agreement between “A” and “B” before the final approval.

Article 2 (Status and purpose on the Agreement)

1 “A” i th l f “th t ti ” d “B” i th b ild h i i h f ti “th t ti ”1. A is the planner of the construction and B is the builder who is in charge of operating the construction.2. “A” and “B” shall not use the Agreement for any other purpose except the construction; none of each side will put up as security, transfer, or entrust the 3rd party rights and obligations of the Agreement without written permission from the opponent.

Article 3 (Responsibility)

1.On the Agreement, “A” is the planner and “B” is the builder. 2.The roles of “A” are to,

1) Secure the sites (Includes cancellation of limited property rights, removal of obstacles) to meet the requirements of business approval; sites of roads, schools, etc.

2) Ensure the approvals needed for the business (Traffic effects evaluation/District-level plan/Approval of business/Approval of sales) and designingdesigning.

3) Bear the taxes given to the planner such as public imposts, business costs and allotments (Includes Sales guarantee commission.)4) Pay “B” the expense of construction5) Bear the expense of designing and supervising6) Meet the qualification of business approval


3. The roles of “B” are to,1) Carry out the construction work of apartments and common area facilities) ( /

3) Bear land rent and the expense for the construction of model house4) For efficient progress of the business, guarantee the payback of the loan “A” borrowed from banking agency for the required business

expenses out of the rest of land cost agreed by “B” at the initial stage. (The period of guarantee is, in principle, after the conclusion of Article 7 the amount will be compromised separately before the conclusion; the period can be compromised by deliberation between “A” and “B” )

2) Perform any related work for sales of apartments and shopping places (Marketing/Advertisement, managing contractors, appointing agency) entrusted by “A”

7, the amount will be compromised separately before the conclusion; the period can be compromised by deliberation between A and B .)

Article 4 (Sales price of apartments and shopping places).The sales price of this business will be decided by deliberation between “A” and “B” on consideration of market situation.

Article 5 (Contract price)( ) ( )1.Contract price (Excludes VAT) : ₩67,784,775,000 (₩857,584 per ㎡)

2.The price on Section 1 is to be firmly decided after the approval (Business approval, Sales approval) is attained by “A”, by the consideration of business plans, (Includes plans for engineering and construction) undertaking conditions, closing quality, rise in price index, etc.

Article 6 (Extents of construction)1.“B”’’s responsibilities are as below.1. B s responsibilities are as below.

1) Furnishing apartments and common area facilities2) Building model house

2. Constructions stated below are excluded from “B”’s responsibilities.1) Construction of business approval condition2) Removal of obstacles, complex’s external construction, specialized construction (Can be conferred later)3) Interior works of convenient facilities3) Interior works of convenient facilities4) Any construction not included in “B”’s extents of construction as stated in Section 1 1) and 2) of this article.

Article 7 (Conclusion of contract)“A” and “B” agree to transform this Agreement into the contract of undertaking construction within 1 month from the approval of business plan. If required, however, “A” and “B” can confer and change the time and date upon the execution of Sales Price Cap Policy and so on.Article 8 (Termination of Agreement)1.The Agreement can be cancelled or terminated by “B” WHEN;

1) “A” delays the business without any proper reason or proceeds the business with the 3rd party without “B”’s prior consent.2) The Agreement is abused by any reason except for the construction without “B”’s prior consent or “B” is materially or non-materially

damageddamaged.3) “A” is dishonored, bankrupt, to initiate liquidation, or to face any such reason.4) The condition is judged as become disadvantageous due to related policies, change of government policy, any problem related to

approval, or change of business condition.


5) The business is foreseen as unprofitable or unsuccessful due to insufficient estimated earnings decrease of floor space index increase5) The business is foreseen as unprofitable or unsuccessful due to insufficient estimated earnings, decrease of floor space index, increase of land expense, aggravation of market or execution of Sales Price Cap Policy.

6)The business is impossible to be proceeded due to failure of securing business or any related site’s (Entering road, sites for school, etc) ownership.

7) Failed to secure enough amount of sewage in accordance with pollution gross weight policy.2. The Agreement can be cancelled or terminated by “A” WHEN;

1) “B” d t t th t t t d i A ti l 3 ith t1) “B” does not guarantee the payment as stated in Article 3 without any proper reason.2) “B” violates the Agreement and does not response to “A”’s request to correct.3) “B” is dishonored, bankrupt, to initiate liquidation, or to face any such reason.4) The procedure has become impossible due to related policies, change of government policy or unexpected change of business condition.

3. Termination of Agreement or the effect is valid two (2) days after the written statement of termination or will to terminate the Agreement is sent to the opponent’s address stated on the Agreement. pp g4. When the Agreement is terminated or cancelled due to any reason falls in Section 1 or 2, the party who terminated or cancelled the Agreement is free from the obligation of compensation for damages of the opponent party.

Article 9 (Observance of related laws)For the Agreement, “A” and “B” adhere to regulations of related laws such as Construction Business General Law and discharge the

responsibilities required by such laws as contractor and executorresponsibilities required by such laws as contractor and executor.

Article 10 (Arbitration of dispute)1.Any dispute over the interpretation of articles of the Agreement will be settled by mutual concession.2.If any suit is instituted, competent court will be Seoul Central District Court.

( )Article 11 (Special clause)1.When “A” uses “B”’s business name or logo for sales advertisement before the conclusion of contract, “A” needs to obtain “B”’s prior consent and “A” is responsible for any damage given to “B” by using “B”’s business name or logo.

2.“B”, a probable builder of the construction, is free from any obligation of civil, criminal, or administrative affair of the 3rd party (Investor, purchaser, or oblige) or competent authorities (approval agency) upon cancellation or termination of the construction as long as the reason ispurchaser, or oblige) or competent authorities (approval agency) upon cancellation or termination of the construction as long as the reason is not occurred by “B” or the cause falls in Article 8, Section 1.

3.If “A” is unavoidably to transfer the business rights, (Includes all sorts of rights of business sites) “A” should do so with a written consent from “A.” By that, “A” will lose every profit earned through the period and will not affect any to “B”’s rights to execute the construction.4.Any further provision will be conferred upon the conclusion of the contract.To give the Agreement proof two copies of the Agreement will be written andTo give the Agreement proof, two copies of the Agreement will be written and signed and each party will keep one.

On the 28th day of January 2008


(Planner and contractor “A”)

Address : 3F Sanghwa Building, 165-3 Samsung-Dong, Kangnam-Gu, SeoulName : Ko Young SunName : Ko, Young SunRepresentative of Chungmok & CM Construction, Inc.

(110111-2015504)///////Original Signed///////

(B ild d ll t “B”)(Builder and collector B”)

Address : 160 Samsung-Dong, Kangnam-Gu, SeoulName : Kim, Jung JoongRepresentative of Hyundai Development Company, Inc.

(110111-0279433)///////Original Signed///////


2) Agreement on the Undertaking of Construction

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