Premises Lease Contract
Exhibit
10.15
This
Premises Lease Contract (“Contract”) is entered into by
and between:
Lessor (“Party A”):
Shishi Feiying Plastic Co., Ltd.
And
Lessee (“Party B”):
Quanzhou Sancai Garment Co., Ltd
This
Contract is made and entered into by and between Party A and Party B with
respect to the leasing of the premises hereunder in accordance with the Contract Law of the People’s
Republic of China, the Law of the People's Republic of
China on Administration of the Urban Real Estate and other relevant laws
and regulations under the principles of equal footing, free will and mutual
consultations.
Article
1 Lease of Premises
Party A
leases to Party B the 2-4th floors
of west section of apartment building A, located in Jiulongshan Development
Zone, Hanjiang, Shishi, covering an area of 2,354.67 m2 (69
rooms) and plant building C, located at the same as above, covering an area of
5,169.93 m2, for
purposes of garment-making plants, offices and dormitories of the
employees.
Article
2 Terms of Lease:
The term
of lease shall be from March 1st, 2010
to February 28th,
2013.
Article
3 Rentals, Deposits, Relevant Expenses and Payment
Method:
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1.
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The
rentals shall be RMB 5.5 Yuan/m2
(excluding taxes) calculated based on actual rental
area;
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2.
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A
deposit of 20,000 Yuan shall be paid by Party B to Party A upon the
signing of this Contract and shall be refunded after the termination of
this Contract and Party A’s acceptance of the premises and auxiliary
facilities;
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3.
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Declaration
of taxes and expenses such as housing property tax etc incurred during the
term of lease shall be made by Party B in accordance with taxation
regulations. If Party B fails to make tax declarations in time, all
economic consequences and legal liabilities shall be assumed by Party B
and are not related to Party A; the land use tax shall be borne by Party
A.
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4.
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The
rental shall be paid every four months during the contract period. The
rental for the first four months shall be paid on the day on which this
Contract is signed and rental for the next four months shall be paid 30
days prior to the expiration of the first four months, and the rest shall
be done in the same manner.
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5.
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The
lessee shall pay a wage of 1,500.00 Yuan to the security guard and share a
public distribution of 450 kwh to the
lessor.
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6.
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A
transformer for the plant shall be provided by Party A. Water and
electricity fees shall be charged based on the actual consumptions, with
the water for the dormitory being 2.20 Yuan/ton, water for the plant being
3.50 Yuan/ton and the electricity based on actual consumption and
electrical loss/same as the textile mill. The meters shall be read on the
16th
day of each month and the relevant fees shall be paid to the financial
department of Party A before 25th
day of every month and Party A shall issue an ordinary receipt to Party
B.
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Article
4 Repair and Maintenance Obligations:
If the
plant building and auxiliary facilities need examinations and repairs by Party A
during the term of lease, Party B shall show cooperation with this regard. If
the plant building suffers natural damages, the repair and maintenance fees
shall be borne by Party A; if not, the fees shall be borne by Party
B.
Article
5 Alterations:
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1.
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If
the ownership of the premises is transferred to a third party by Party A,
this Contract shall remain effective to the new owner of the premises and
Party B. If the third party fails to perform this Contract, Party A shall
pay a compensation of 500,000 Yuan to Party
B.
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2.
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If
Party A wants to put the house for sale, Party B shall be informed the 3
months in advance. In the event of all things being equal, Party B has the
preferential right to purchase the
premises.
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Article
6 Liabilities for Breach of Contract:
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1.
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If
Party A fails to deliver the premises to Party B for use in time, a
penalty of 200.00 Yuan/day per building shall be paid by Party
A;
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2.
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If
Party A fails to do the repair and maintenance to the premises upon expiry
of 30 days after receiving Party B’s written notice, Party A shall pay to
Party B 200.00 Yuan per building as the liquidated
damages;
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3.
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If
Party B delays in paying the rental for more than 7 days, Party A has the
right to cut off the electricity and water supply or even terminate this
Contract unilaterally and take all possible actions to recover all rentals
and charge an overdue fine at 0.3% of daily rentals on a daily
basis.
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4.
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If
Party B transfer the premises to a third party for use without Party A’s
prior consent or makes use of the premises to engage in any illegal
activities, Party B shall pay to Party A RMB 20,000 Yuan as the
liquidated damages and bear all legal responsibilities and economic losses
arising therefrom.
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5.
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If
Party B alters the structure of the premises without Party A’s prior
consent, Party A has the right to request Party B to restore the premises
and claim compensation from Party
B.
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Article
7 Exceptions from Liability:
If the
premises are damaged and Party B suffers losses as a result of the Force
Majeure, neither Party A nor Party B shall take any
responsibilities.
Article
8 Dispute Resolutions:
Any
dispute arising from or in the performance of this Contract shall be settled
through amicable negotiation between the parties; if such negotiation fails, any
of the parties may bring a lawsuit to the People’s Court at the location of the
premises.
Article
9 Other agreed Issues:
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1.
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Social
and legal responsibilities and obligations shall be assumed by Party B
itself in its production and operation process, and Party A shall bear no
part of the aforementioned responsibilities and
obligations.
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2.
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The
transformer and the switchboard provided by Party A for the convenience of
Party B shall be maintained and repaired by Party A, and Party B shall not
be responsible for any costs and repair fees etc arising therefrom during
the contract period; the expense for annual inspection of the lift shall
be borne by Party B during the term of
lease.
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3.
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If
Party B fails to find another appropriate plant building upon expiration
of the lease term, Party A may consider extending the contract period for
the convenience of Party B.
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4.
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If
Party B fails to perform this Contract subject to the specified time limit
and terminates this Contract earlier, the deposit shall not be refunded to
Party B and Party B shall pay to Party A a compensation equaling 3 months
of rentals.
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5.
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At
least 45 days prior to the expiration of the lease period, the parties
shall notify each other in writing if they intend to terminate this
Contract or renew the lease.
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6.
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If
Party A is aware that the premises and auxiliary facilities are damaged in
the course of acceptance upon the termination of the contract, Party B
shall be responsible for the repairs and compensate for the
damages;
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7.
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Each
party shall not hire employees who quit from the other party. Once found,
the employee shall be dismissed by the party
concerned.
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This Contract comprising of two pages
shall be made out in duplicate, each of which shall have the same force and
effect, and each party shall hold one copy respectively. This Contract shall
come into effect after it is signed by the parties.
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Lessor:
Shishi Feiying Plastic Co., Ltd
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Lessee:
Quanzhou Sancai Garment Co., Ltd
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Address:
Longshan Development Area,
Hanjiang
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Address:
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Legal
Representative: Xx
Xxxxxx
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Legal
Representative: Ding Ruixia
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Tel:
0000-00000000
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Tel:
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Signing
Place: Feiying
Company
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Signing
Place: Feiying Company
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Signing
Date: January 17,
2010
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Signing
Date: January 17, 2010
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