Annual Report 2009 - Greentown China Holdings Limited

Report of the
Directors
(3) a comprehensive services
agreement dated 22 June 2006
(the “Comprehensive Services
Agreement”) with the Original
Shareholders and Greentown
Holdings Group relating to the
following transactions:
(i)
the Original Shareholders,
through their associates,
agreed to provide interior
decoration services to the
Company for property
development upon terms not
less favourable than those
they offered to any third
parties from time to time,
but the Company was not
obliged to use such services
exclusively or at all from the
Original Shareholders or
their affiliates. The Company
may terminate the interior
decoration services provided
by the Original Shareholders
or their affiliates with respect
to any projects by serving
three months’ prior written
notice. The annual fees in
respect of interior decoration
services for the three years
ended 31 December 2008
were estimated to be not
more than RMB30 million,
RMB40 million and RMB50
million respectively, which
accordingly were determined
as the annual caps of
the interior decoration
services pursuant to the
Comprehensive Services
Agreement;
(ii)
Greentown Holdings Group,
through its subsidiary,
Zhejiang Greentown Property
Management Company
(“Zhejiang Greentown
Property”), agreed to provide
pre-delivery property
management services
(including certain property
management advisory
services, security services and
other related services) to the
Company for the Company’s
property development upon
terms not less favourable than
those it offered to any third
parties from time to time,
but the Company was not
obliged to use such services
exclusively or at all from
Greentown Holdings Group.
The Company may terminate
the property management
services provided by the
Greentown Holdings Group
with respect to any projects
by serving three months’
prior written notice. The
annual expenditures
in respect of property
management services
provided by Greentown
Holdings Group for the three
years ended 31 December
2008 were estimated to be not
more than RMB11 million,
RMB12 million and RMB14
million respectively, which
accordingly were determined
as the annual caps of the
property management
services pursuant to the
Comprehensive Services
Agreement; and
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Greentown China Holdings Limited Annual Report 2009