Business planfor new apartment construction - Frantech Asia

Business plan for new apartment construction 2008 04 2008. 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 #153, Songjung-Dong Songjung-Dong, Gwanjgu-Si, Gwanjgu-Si Kyonggi Province 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 (Unit : $)

1. Apartment Type

Households

Decisive Sale Price / ㎡

Decisive Sale Price / py

Per Household

TOTAL

115.119㎡

187

2,923

9,663

336,548

62,934,476

153.166㎡

202

3,119

10,311

477,757

96,506,914

Total

389

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

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

4 Earning and Expense analysis Sum of Earning

Sum of Expense

-

US$160 312 884 US$160,312,884

Ordinary Profit

=

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

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

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

47,450,000

1st year

2nd year 20,696,220

3rd year 15,518,312

4th year 11,235,468

7 Remarks 1) Exchange rate : Selling Rate T/T 1$ : ₩966.6 as of 8 APR 2008. 2) Py : ㎡ : = 1 : 3.3058 G ti Greetings, 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 iinquiry, i please l d do nott h hesitate it t tto contact t t us. We will be looking forward to advance our business soon. Best wishes.

contents CHAPTER

1.

Overview

3p

CHAPTER

2.

Analysis on the development environment of the establishment

12p

CHAPTER

3.

Estimating warranted price and income

20p

CHAPTER

4.

Marketing plan and analysis on accounts

25p

CHAPTER

5.

Reference Refe ence

33p

CHAPTER.

1

Overview

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

1. Overview 1) Present status of the business Corporate name

Chung Mok CM Construction Construction, Inc Inc.

165-3 165 3 3F Sanghwa Building Building, SamsungSamsung Dong, Kangnam-Gu, Seoul

Representative

Ko, Young Sun

Address

Corporation Reg. Number

110111 - 2015504

Date of registration

2000.07.03

Business Reg Reg. Number

120 – 86 - 09430

Capital

$620 733 $620,733

Tel.

02 – 515 - 4560

F.A.X

02 – 552 - 7268

2) The progress of business plan Date

Description p

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 2008.02

Received intentions of real estate sale with Paradise Global

Remark

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

3) O Outline tli -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.

(Unit :$)

Address

Size

1

153 Songjung-Dong, Gwangju-Si

2

150-2 Songjung-Dong, Gwangju-Si

793 ㎡

3

156-2 Songjung-Dong, Gwangju-Si

132 ㎡

4

125-2 Songjung-Dong, Gwangju-Si

593 ㎡

5

209-4 Songjung-Dong, Gwangju-Si

132 ㎡

Purchase Price

Remarks

31,319㎡

Total

32,969 ㎡

41,382,164

41,382,164

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

Business area

2

Bus terminal

3

Gwangju City hall

4

Tan-bul Elementary School

5

Gwangju G j P Public bli Health Center

6

Gwangju Public Field

2

1 사업장 4

3

5 6

Existing apartment complex

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.

2

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 y chinaware and Namhan mountain fortress – Ganning g attention as daily y tour spot p to enjoy j y both 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’ E 127.26

127 08’ E 127.08

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

Population per town, myeon, and dong

Gender Year

Population

Households Male

Female

Remar ks

(2008.3)

Gender

town, myeon, and dong

Populati on

Male

Female

Households

2008.03

230,628

118,468

112,160

87,286

Opo Town

52,213

26,699

25,514

19,675

2007.12

229,319

117,740

111,579

86,616

Chowal Town

33,873

17,501

16,372

12,555

2006.12

222,048

113,875

108,173

83,112

Silchon Town

23,026

11,987

11.309

9,257

2005.12

214,498

109,769

104,729

79,288

Dochuk Town

8,262

4,341

3,921

3,261

2004.12

205,641

105,212

100,429

74,568

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 Songjung-Dong j D

33 509 33,509

16 976 16,976

16 533 16,533

12 388 12.388

GwangnamDong

31,705

16,322

15,383

11,505

230,628

118,468

112,160

87,286

Total

Remarks

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

Total

Opo

Size

430.96

46.91

55.90

76.18

52.15

dong

228

29

41

34

1,240

204

192

138

ban

Chowal

Silchon

Dochuk

Tuichon

Namjong

Joongbu

Kyungan

Songjung

Gwangnam

60.75

48.57

33.73

6.40

21.87

28.50

16

18

14

11

20

22

23

66

54

40

33

147

179

187

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

5)) Plan for Park development p around business area 1 1

Changseok Park and sports park D Development l t plan l

2

Kyongan stream wetland development plan

3

Kyongan neighborhood park air view

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

3

2

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

6) Traffic network plan 1

1

Development plan for metropolitan area

2

Traffic network plan for Metropolitan area

2

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 Seoul’s satellite city (Bed town)

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

7) C Current possession i off apartment iin G Gwangju-Si j Si ((per D Dong))

Location

Households

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

Remarks

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

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

Enterpriser

Location

Size

Households

Admitted

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 Da-wol l

G Gwang - nam

24 860 24,860

357

'07 10 12 '07.10.12

B k 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 12,331

123

'07 07.11.16 11 16

Sinchang con 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.

292,893

3,788

Total

Remarks

CHAPTER.

3

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

Size 12F 3 Dongs(Comple x) 168 Households 168가구

Paradise Paradise

17-22F 17 22F 4 Dongs 279 Households

Global II-PARK PARK Hyundai Devel.

Note

19 20F 4 19-20F Dongs 326 Households

type Lotting-out Sole size 148

123 37 123.37

Households 96

Market Price

Price per ㎡

Lowest

Highest

Average Lotting-out Sole size

393 130 393,130

434 512 434,512

413 821 413,821

2 796 2,796

Move-in Date

3 354 3,354 2004.08

165

137.32

72

475,895

506,931

491,413

2,978

3,579

79

59.50

83

175,874

227,602

201,738

2,554

3,391

109

84.96

166

300,020

331,057

315,539

2,895

3,714

148

126.61

30

403,476

434,512

418,994

2,831

3,309

112

84 96 84.96

250

300 020 300,020

331 057 331,057

315 539 315,539

2 817 2,817

3 714 3,714

158

120.56

76

413,822

455,204

434,513

2,750

3,604

2001.10

2002.07

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 Calculation l l i off the h price i per ㎡ (1) Legal Requirements & Standard for sale price cap

(Unit : $)

(2) Decisive Sale Price

( (Unit : $)

type

Households

Decisive Sale Price / ㎡

Decisive Sale Price / py

Per Households

TOTAL

115.119㎡

187

2,923

9,663

336,548

62,934,476

153.166㎡

202

3,119

10,311

477,757

96,506,914

1) VAT Included 2) Py : ㎡ = 1 : 3.3058

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

3) Deciding sale price per floor & purchase schedule 1. Apartment

2. Shopping places

(Unit :$)

(Unit :$)

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

4) Payment schedule per round 1. Apartment

2. Shopping place

(Unit :$)

(Unit :$)

CHAPTER.

4

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, Brand new efficient residence for users’ users satisfaction

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 Government’s Government s price cap policy • 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

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

Secure green tracts Harmonious environment

Well-Being Life Luxurious residence environment ▶ Specialized arrangement Maximum efficiency 3.4 Bay system B d Brand-new conceptt off 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

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

Ascending Values

• To satisfy both existing and possible demands

MARKETING CONCEPT

• • • •

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

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

100% early sales

TARGETS

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

Promotion Strategy • Sales S l supportt strategy t t for f promoting customers’ dealmaking

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

4) M Marketing k i S 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 l on 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

Receipt

1st year

Loan

47,450,000

Sales

160,312,884

Total

207,762,884

Loan payback

47,450,000

L d Land

41 382 160 41,382,160

41 382 160 41,382,160

Tax for transfer

2nd year

(Unit :$) 3rd year 5,395,155

7,690,472

60,883,080

48,528,871

50,900,933

60,883,080

48,528,871

50,900,933

20,696,220

15,518,312

11,235,468

47,450,000 47,450,000

1,903,579

1,903,579

88,232

88,232

Total land tax

403,702

201,851

201,851

71,626,424

25,069,248

28,650,570

Removal of obstacle

696 691 696,691

Service pipe

884,011

Art piece

82,169

Design

1,009,952

884,011 82,169 504,976

953,685

Manpower service

219,119

219,119

504,976 381,474

Approval fee

362,094

362,094

Transaction fee

103,455

103,455

Association fee

227,522

Sales trust commission

872,102

872,102

1,314,388

1,314,388

Land rent

103,455 248,292

248,292

Sales marketing

848,857

848,857

541,537

541,537

Sales agency commission

2,164,349

2,164,349

Traffic expense

491 332 491,332

491 332 491,332

1,146,337

1,146,337

Water expense

482,928

Trust commission

258,225

VAT

255,353

Loan interest

3,986,677

P/F commission

687,975

Office operation

869,008

Spare money

517,277

Balance carried forward

203,240

103,455

Facility expense

Total

368,971

227,522

M/H management

Preservation registration fee

17,906,606

696 691 696,691

Supervision

M/H building

4th year

156,226

Cession of obligation Contruction works

Expense

Total

482,928 258,225 1,423,500

102,141

102,141

51,071

1,423,500

802,613

337,064

687,975 248,288

248,288

248,288

124,144

155,183

258,639

103,455

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

Remarks

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

7) Assumed sales rate & receipt of payment 1. Assumed sales rate Initial sales

In 6 months

1. Apartment

90%

10%

2. Nearbyy shopping pp g p place

100%

Remarks

2. Assumed receipt of payment (U i :$) (Unit $) 1st year Category

Item 1. Apartment

Plan

2. Shopping places Total

Total 158,137,864

Contract fee

2nd year 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%

15,813,787

15,813,787

15,813,787

15,813,787

15,813,787

15,813,787

15,813,787

47,441,355

217,502

870,008

1,087,510

16,031,289

16,683,795

48,528,865

2,175,020 160,312,884

15,813,787 14,232,409

1. Contract fee

15,813,787

2. 1st part payment

15,813,787

3 2nd part payment 3.

15 813 787 15,813,787

4. 3rd part payment

15,813,787

Receipt 5. 4th part payment

15,813,787

6. 5th part payment

16,031,289

7. 6th part payment

16,683,795

8. Balance

48,528,865

Total

160,312,884

3rd year

1st

15,813,787

15,813,787

790,689

790,689

14,232,408

790,689 14 232 408 14,232,408

15,813,787

15,813,787

15,023,098

15,813,787

D+28Months

790,689 790 689 790,689

790 689 790,689

14,232,408

790,689 14,232,408

14,232,409

D+27Months

15,813,787 60,883,080

15,813,787

790,689 790,689

790,689

14,449,910

790,689

790,689

15,102,416

790,689

790,689

43,784,730

2,372,068

2,372,068

45,366,108

3,162,758

2,372,068 50,900,934

16,031,289

16,683,795 48,528,871

CHAPTER.

5

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 The business scales of Section 2 and 3 are flexible upon the final approval of the business (Includes Approval of amendment of business 4. 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” 1. A is i th the planner l off “th the construction t ti ” and d “B” B is i th the b builder ild who h iis iin charge h off operating ti “th the construction. 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 the amount will be compromised separately before the conclusion; the period can be compromised by deliberation between “A” 7, A and “B” 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 1) Furnishing apartments and common area facilities 2) Building model house 2. Constructions stated below are excluded from “B”’s responsibilities. 1) Construction of business approval condition 2) Removal of obstacles, complex’s external construction, specialized construction (Can be conferred later) 3) Interior works of convenient facilities 4) 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 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 earnings, decrease of floor space index 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 does nott guarantee t th the paymentt as stated t t d iin A Article ti l 3 without ith t 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 pp address stated on the Agreement. 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 “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 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 proof, two copies of the Agreement will be written and 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 Ko, Young Sun Representative of Chungmok & CM Construction, Inc. (110111-2015504) ///////Original Signed/////// (B ild and (Builder d collector ll t “B”) 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