Business plan for new apartment construction 2008.

2008 04
Songjung-Dong,Gwangju-Si, Kyonggi-Prpvince

Chung Mok CM Construction. Inc.

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

Business Plan Summary

1. Outline
1) 2) 3) 4) Project : New construction of Apartment in Songjung-Dong, Gwangju-Si, Kyonggi Province Address : The whole district of #153 Songjung-Dong Gwanjgu-Si, Kyonggi Province #153, Songjung-Dong, Gwanjgu-Si Land Size : 32,969 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 culture culture. Regulated by various laws such as Environmental Policy Law - Harmony of development and preservation by Water Pollution Control Plan

3 Decisive Sale Price

1. Apartment
Type 115.119 153.166 Total Households 187 202 389 Decisive Sale Price / 2,923 3,119 Decisive Sale Price / py 9,663 10,311 Per Household 336,548 477,757 (Unit : $) TOTAL 62,934,476 96,506,914 159,441,390

2. Shopping places
Lots Size
1F 2F 278.00 278.00 Decisive Sale Price / 4,694 3,130 Decisive Sale Price / py 15,517 10,347 TOTAL 1,305,012 870,008

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

4 Earning and Expense analysis

Sum of Earning US$160,312,884 US$160 312 884 Sum of Expense Ordinary Profit

US$134,730,885 US$134 730 885

US$25,581,999 US$25 581 999

5 Requesting Initial Capital Investment : US$ 47,450,000q g p $ , , 6 Loan payback plan

Total 1st year 2nd year 20,696,220 3rd year 15,518,312 4th year 11,235,468

47,450,000

7 Remarks
1) Exchange rate : Selling Rate T/T 1$ : 966.6 as of 8 APR 2008. 2) Py : : = 1 : 3.3058 Greetings, G ti 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 you h have any i inquiry, please d not h it t t contact us. i l do t hesitate to t t We will be looking forward to advance our business soon. Best wishes.

contents
CHAPTER

1. 2. 3. 4. 5.

Overview Analysis on the development environment of the establishment Estimating warranted price and income Marketing plan and analysis on accounts Reference Refe ence

3p

CHAPTER

12p

CHAPTER

20p

CHAPTER

25p

CHAPTER

33p

CHAPTER.

Overview

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

1. Overview
1) Present status of the business
Corporate name Representative
Corporation Reg. Number Chung Mok CM Construction Inc Construction, Inc. 165 3 165-3 3F Sanghwa Building SamsungBuilding, Samsung Dong, Kangnam-Gu, Seoul

Ko, Young Sun 110111 - 2015504 120 86 - 09430 02 515 - 4560

Address Date of registration Capital F.A.X

2000.07.03 $620,733 $620 733 02 552 - 7268

Business Reg Number Reg. Tel.

2) The progress of business plan

Date 2007.12 2008.01 2008.01 2008.01 2008.02 2008 02 Description p Reached an agreement to purchase estate Drafted business plan Requested evaluation service of estate cost to Karam Dongguk Appraiser Firm Concluded the construction work contract with Hyundai Development Company Inc. Received intentions of real estate sale with Paradise Global Remark

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

3) O tli Outline
-Address: The whole district of #153, SongjungDong, Gwanjgu-Si, Kyonggi Province - Size : 32,969 - Scales : Apartment 187 households (115 ), 202 households (153 ) and subsidiary facilities City Administration Plan(Based on the Law of National Land Use) 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 Use Use, announced as district-level project zone by April 2005; business-feasible area.)

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

4) Details of business site

No. 1 2 3 4 5 Address 153 Songjung-Dong, Gwangju-Si 150-2 Songjung-Dong, Gwangju-Si 156-2 Songjung-Dong, Gwangju-Si 125-2 Songjung-Dong, Gwangju-Si 209-4 Songjung-Dong, Gwangju-Si Total Size 31,319 793 132 593 132 32,969 41,382,164 41,382,164 Purchase Price

(Unit :$)

Remarks

5) The present status of business area

SITE

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

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

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

1 2 2 3 1 4 5 6 3 4 Gwangju City hall Tan-bul Elementary School Gwangju P bli G j Public Health Center Gwangju Public Field Existing apartment complex Business area Bus terminal

5 6

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

7) Outline of business area plan

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

8) Plot plan of the facilities

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

9) Business schedule

CHAPTER.

Analysis on the development environment of the establishment

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

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 y history and culture. Regulated by various laws such as Environmental Policy Law - Harmony of development and preservation by Water Pollution Control Plan

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

3) Geographical position

Kyonggi Province Gwangju-Si

37.33 N

Songjung-Dong

30.26 127.26 127 26 E 127.08 127 08 E

27.88 37.15 N

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

4) Population and size of Gwangju-Si Gwangju Si

Annual status of population

Gender Year 2008.03 2007.12 2006.12 2005.12 2004.12 Population Male 230,628 229,319 222,048 214,498 205,641 118,468 117,740 113,875 109,769 105,212 Female 112,160 111,579 108,173 104,729 100,429 87,286 86,616 83,112 79,288 74,568 Households Remar ks

Population per town, myeon, and dong

town, myeon, and dong Opo Town Chowal Town Silchon Town Dochuk Town Tuichon-Myeon Namjong-Myeon Joongbu-Myeon Kyongan-Dong Songjung-Dong S j D GwangnamDong Total Populati on 52,213 33,873 23,026 8,262 9,473 1,869 2,652 34,046 33,509 33 509 31,705 230,628 Gender

(2008.3)
Households Remarks

Male 26,699 17,501 11,987 4,341 4,865 957 1,398 17,422 16,976 16 976 16,322 118,468

Female 25,514 16,372 11.309 3,921 4,608 922 1,254 16,624 16,533 16 533 15,383 112,160 19,675 12,555 9,257 3,261 4,019 786 1,092 12,748 12.388 12 388 11,505 87,286

Size per town, myeon, and dong / number of administrative districts (Unit:)
Class Total Opo Chowal Silchon Dochuk Tuichon Namjong Joongbu Kyungan Songjung Gwangnam

Size dong ban

430.96 228 1,240

46.91 29 204

55.90 41 192

76.18 34 138

52.15 16 66

60.75 18 54

48.57 14 40

33.73 11 33

6.40 20 147

21.87 22 179

28.50 23 187

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

5) Plan for Park development around business area ) p

1 1 2 3 Changseok Park and sports park Development plan D l t l Kyongan stream wetland development plan Kyongan neighborhood park air view

Aim at delightful residential environment by assuring inhabitants recreation area area

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

6) Traffic network plan

1 2

1 2

Development plan for metropolitan area Traffic network plan for Metropolitan area
Seoul subway network for

3 Metropolitan area

3
Wide traffic network is almost opened; once the local subway network is completed, it will be operating as Seouls satellite city (Bed town)

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

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

Location Kyung - an Gwang - nam Do - chuk Song - jung Sil - chon O - po Cho - wal Total

Households 3,045 4,751 384 4,015 3,175 7,146 5,588 28,104

Remarks

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

8) Current status of admission for apartment business in Gwangju-Si 2007 Gwangju Si,
Enterpriser
Everetee con I & A Han-sol Woojung con. K D C Da-wol D l Hyunjin con. L B C & C Jungil.con Baksong Lain Yongkok con. Delim.con. EK con. Total

Location
Tui - chon Song - jung Song - jung Song - jung Song - jung Gwang - nam G Sil - chon Kyung - an Cho - wal Cho - wal Cho - wal Cho - wal O - po O - po

Size
27,504 28,227 25,400 28,039 22,782 24,860 24 860 27,771 12,865 6,991 27,449 12,331 12 331 4,798 29,533 14,343 292,893

Households
475 450 374 350 344 357 376 198 59 234 123 80 248 120 3,788

Admitted
'07.8.30 '07.9.13 '07.10.2 '07.10.2 '07.10.2 '07.10.12 '07 10 12 '07.10.22 '07.10.25 '07.11.13 '07.11.13 '07 11 16 07.11.16 '07.11.16 '07.11.19 '07.11.19

Construction company

Remarks

Woolim con. Kyungnam con Woolim con. Woojung con. Woojung con. Buksan con. B k Hyunjin con. Sungwon con. Sinchang con. Sinchang con. Sinchang con con. Donggang con. Delim.con. Kumgang con.

CHAPTER.

Estimating warranted price and income

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

3. Estimating warranted price and income

1) Market condition for adjacent area
(Unit :$ ) :$.
Item Brownstone ISU Paradise Paradise Global I PARK I-PARK Hyundai Devel. 19 20F 19-20F 4 Dongs 326 Households 17-22F 17 22F 4 Dongs 279 Households Size 12F 3 Dongs(Comple x) 168 Households 168 type Lotting-out Sole size 148 165 79 109 148 112 158 123.37 123 37 137.32 59.50 84.96 126.61 84.96 84 96 120.56 Households 96 72 83 166 30 250 76 Market Price Lowest 393,130 393 130 475,895 175,874 300,020 403,476 300,020 300 020 413,822 Highest 434,512 434 512 506,931 227,602 331,057 434,512 331,057 331 057 455,204 Price per Average Lotting-out Sole size 413,821 413 821 491,413 201,738 315,539 418,994 315,539 315 539 434,513 2,796 2 796 2,978 2,554 2,895 2,831 2,817 2 817 2,750 3,354 3 354 2004.08 3,579 3,391 3,714 3,309 3,714 3 714 2002.07 3,604 2001.10 Move-in Date

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.

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

2) C l l i of the price per Calculation f h i

(1) Legal Requirements & Standard for sale price cap
(Unit : $)

(2) Decisive Sale Price

type 115.119 153.166 Households 187 202 Decisive Sale Price / 2,923 3,119 1) VAT Included 2) Py : = 1 : 3.3058 Decisive Sale Price / py 9,663 10,311 Per Households 336,548 477,757

(Unit : $) (
TOTAL 62,934,476 96,506,914

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

3) Deciding sale price per floor & purchase schedule

1. Apartment
(Unit :$)

2. Shopping places

(Unit :$)

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

4) Payment schedule per round

1. Apartment
(Unit :$)

2. Shopping place

(Unit :$)

CHAPTER.

Marketing plan and analysis on accounts

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

4. Marketing plan and analysis on accounts

1) Sales points

- Various size and dimension for users demands

CONCEPT

- Reasonable price - Brand new efficient residence for users satisfaction Brand-new, users

Supplied sizes

Most preferred sizes(115 and153)

Maximize sales rate

Effective design: User-oriented arrangement

Interior.etc
Interior / equipments : Distinctive equipments for customers satisfaction

Supply price

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

Ensure business stability

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

2) DEVELOPMENT CONCEPT

Environment-friendly residence & facility

Secure green tracts Harmonious environment

High-technology
Home Network System Hi-tech Hi t h security system it t

Well-Being Life Luxurious residence environment Specialized arrangement

Maximum efficiency 3.4 Bay system Brand-new concept of B d t f space arrangement

Vibe Community
Convenient facility for Residents Distinctive common areas

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

3) MARKETING CONCEPT

MARKETING ENVIRONMNET

MARKETING CONCEPT

TARGETS

To satisfy both existing and possible demands Environment-friendly concept Brand new development in urban area

Positioning as touristsspot Distinctive images Targeting on core customers Semi-Prestige marketing

1: Demander for distinctive residence - Urban area end users 2 : Regular residents - demander for new apartment 3 : Investors

Ascending Values

Stage 1 : Pre Marketing Stage 2 : Main Marketing Stage 3 : Post Marketing

Promotion Strategy
S l support strategy for Sales t t t f promoting customers dealmaking

To satisfy both existing and possible demands

100% early sales

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

4) M k i S 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 sales

100% sales on l the initial stage

RESIDENTS SATISFACTION

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

5) Earning and Expense analysis

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

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

6) Annual financial management and loan payback plan

Item Subject Balance brought forward Loan Receipt Sales Total Loan payback Land L d Tax for transfer Cession of obligation Total land tax Contruction works Removal of obstacle Service pipe Art piece Design Supervision Manpower service Approval fee Transaction fee Association fee Expense Sales trust commission M/H building Land rent M/H management Sales marketing Sales agency commission Preservation registration fee Traffic expense Facility expense Water expense Trust commission VAT Loan interest P/F commission Office operation Spare money Total Total 47,450,000 160,312,884 207,762,884 47,450,000 41,382,160 41 382 160 1,903,579 88,232 403,702 71,626,424 696,691 696 691 884,011 82,169 1,009,952 953,685 219,119 362,094 103,455 227,522 872,102 1,314,388 103,455 248,292 848,857 541,537 2,164,349 491,332 491 332 1,146,337 482,928 258,225 255,353 3,986,677 687,975 869,008 517,277 182,180,885 25,581,999 47,293,774 156,226 248,288 1,423,500 258,225 102,141 1,423,500 687,975 248,288 155,183 55,644,151 5,395,155 248,288 258,639 46,233,554 7,690,472 124,144 103,455 33,009,407 25,581,999 102,141 802,613 51,071 337,064 491,332 491 332 1,146,337 482,928 103,455 248,292 848,857 541,537 2,164,349 219,119 362,094 103,455 227,522 872,102 1,314,388 504,976 504,976 381,474 368,971 203,240 82,169 696,691 696 691 884,011 41,382,160 41 382 160 1,903,579 88,232 201,851 25,069,248 201,851 28,650,570 17,906,606 47,450,000 1st year 47,450,000 60,883,080 60,883,080 20,696,220 48,528,871 48,528,871 15,518,312 50,900,933 50,900,933 11,235,468 2nd year 156,226 3rd year 5,395,155 4th year 7,690,472

(Unit :$)
Remarks

Balance carried forward

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

7) Assumed sales rate & receipt of payment

1. Assumed sales rate
Initial sales 1. Apartment 2. Nearby shopping p y pp g place 90% 100% In 6 months 10% Remarks

2. Assumed receipt of payment

(Unit $) (U i :$)
1st year
Category Item 1. Apartment Plan 2. Shopping places Total 1. Contract fee 2. 1st part payment 3. 3 2nd part payment 4. 3rd part payment Receipt 5. 4th part payment 6. 5th part payment 7. 6th part payment 8. Balance Total Total 158,137,864 2,175,020 160,312,884 15,813,787 15,813,787 15,813,787 15 813 787 15,813,787 15,813,787 16,031,289 16,683,795 48,528,865 160,312,884 14,232,409 15,023,098 15,813,787 15,813,787 60,883,080 15,813,787 16,031,289 16,683,795 48,528,871 15,813,787 14,232,409 15,813,787 790,689 14,232,408 15,813,787 790,689 790,689 14,232,408 14 232 408 790,689 790,689 790 689 14,232,408 790,689 790 689 790,689 14,232,408 790,689 790,689 14,449,910 790,689 790,689 15,102,416 790,689 790,689 43,784,730 45,366,108 790,689 2,372,068 3,162,758 2,372,068 2,372,068 50,900,934 15,813,787 15,813,787 Contract fee 10% 15,813,787 1st D+4Months 10% 15,813,787 2nd D+7Months 10% 15,813,787 3rd D+10Months 10% 15,813,787 4th D+14Months 10% 15,813,787

2nd year
5th D+18Months 10% 15,813,787 217,502 16,031,289 6th D+22Months 10% 15,813,787 870,008 16,683,795 Balance D+26Months 30% 47,441,355 1,087,510 48,528,865

3rd year
D+27Months D+28Months

CHAPTER.

Reference

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

5. Reference
1) Business Resistration Certificate

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

2) Agreement on the Undertaking of Construction

Ko, 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) 1. Site of the construction : the whole area of 153 Songjung-Dong, Gwangju-Si, Kyonggi Province 2. Land 1) Gross area : 27,433 2) Purpose : Class 2 general residence area 3. Estimated business scale of the project 1) 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. 4 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 is the l 1 A i th planner of th construction and B i th b ild who i i charge of operating th construction. f the t ti d B is the builder h is in h f ti the t ti 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 designing. designing 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 construction 5) Bear the expense of designing and supervising 6) Meet the qualification of business approval

New construction of Apartment in Songjung-Dong, Gwangju-Si, Kyonggi Province 3. The roles of B are to, 1) Carry out the construction work of apartments and common area facilities 2) Perform any related work for sales of apartments and shopping places ( ) (Marketing/Advertisement, managing contractors, appointing / agency) entrusted by A 3) Bear land rent and the expense for the construction of model house 4) 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, 7 the amount will be compromised separately before the conclusion; the period can be compromised by deliberation between A and B.) A 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 1.Bs responsibilities are as below. 1) Furnishing apartments and common area facilities 2) Building model house 2. Constructions stated below are excluded from Bs responsibilities. 1) Construction of business approval condition 2) Removal of obstacles, complexs external construction, specialized construction (Can be conferred later) 3) Interior works of convenient facilities 4) Any construction not included in Bs 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 Bs prior consent. 2) The Agreement is abused by any reason except for the construction without Bs prior consent or B is materially or non-materially damaged. damaged 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.

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

5) The business is foreseen as unprofitable or unsuccessful due to insufficient estimated earnings decrease of floor space index increase earnings, index, 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 sites (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 does not guarantee th payment as stated i A ti l 3 without any proper reason. t t the t t t d in Article ith t 2) B violates the Agreement and does not response to As 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 opponents address stated on the Agreement. pp g 4. 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 executor 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 Bs business name or logo for sales advertisement before the conclusion of contract, A needs to obtain Bs prior consent and A is responsible for any damage given to B by using Bs 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 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 Bs 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 and proof, signed and each party will keep one.

On the 28th day of January 2008

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

(Planner and contractor A) Address : 3F Sanghwa Building, 165-3 Samsung-Dong, Kangnam-Gu, Seoul Name : Ko Young Sun Ko, Representative of Chungmok & CM Construction, Inc. (110111-2015504) ///////Original Signed/////// (Builder d (B ild and collector B) ll t B) Address : 160 Samsung-Dong, Kangnam-Gu, Seoul Name : Kim, Jung Joong Representative of Hyundai Development Company, Inc. (110111-0279433) ///////Original Signed///////

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

2) Agreement on the Undertaking of Construction

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

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

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

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

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