Property Lease Agreement
Exhibit 10.31
Xxxxxx (Party A): Xxxxxx Xxx
Tenant (Party B): Xxxxx
Xxx
According to the Contract Law of People’s Republic of China and related laws and regulations, with respect to the property to be leased by Party A to Party B, for the purpose of identifying the rights and obligations of both Parties, the Parties enter into this Property Lease Agreement (the “Agreement”) on a fair and voluntary basis upon unanimous negotiation.
| I. |
The Property to be leased (the “Property”) by Party A is in accordance with the regulation adopted by the People’s Republic of China. | |
| II. |
Location and Dimensions | |
| 1. |
The Property is located behind the playfield of Yupu Primary School, Yupu Village, Shishi City, Fujian Province. | |
| 2. |
The size of the Property is 5,950 square meters. | |
| III. |
Term and Usage | |
| 1. |
The term of this lease is collective 36 months, namely from February 1, 2009 to January 30, 2012, a three-year period. | |
| 2. |
Party B guarantees to Party A that this Property will be used as facility for production of apparels and also as dormitory. | |
| 3. |
Upon the expiration of this lease, Party A is entitled to reclaim this Property, and Party B shall duly deliver such Property to Party A. If Party B intends to renew the term of the lease, Party B shall notify Party A in written form 2 months prior to the expiration of such lease, and another new agreement shall be executed upon the consent of Party A for the renew. | |
| IV. |
Rent and Payment | |
|
The rent of this Property for a three-year term is RMB1,200,000, which will be paid in three installments: | ||
| 1. |
Upon the execution of this Agreement, the first installment, RMB400,000, shall be paid simultaneously. | |
| 2. |
The second installment, RMB400,000, shall be paid prior to January 1, 2010. | |
| 3. |
The third installment, RMB400,000, shall be paid prior to January 1, 2011. | |
| V. |
Expense and Tax During the Term of Lease | |
| 1. |
Any tax and expense, property tax, utility fee, sanitation fee, and fire control and anti-burglar measures arising out during the term of lease shall be fully assumed by Party B. | |
| 2. |
Party B shall reasonably utilize the Property and ancillary facilities. If any damage or destruction arising out from the inappropriate use, Party B shall immediately assume the maintenance and repair or economic compensation. | |
| 3. |
Party A shall keep the entrance of this Property easily accessible. | |
| 4. |
Without the consent of Party A, Party B shall not release or borrow for free such Property to any third party. |
| VI. |
If the Parties terminate this agreement in advance, the Party who claims to the termination shall indemnify the counterparty a economic compensation as much as RMB100,000 (except for the Force Majeure, such as war, catastrophe, epidemics). |
| VII. |
This Agreement has two counterparts in the same validity ,each of which held by one Party, respectively. And this Agreement will come into effect once executed by the Parties. |
| Party A: Xxxxxx Xxx | Party B: Xxxxx Xxx |
| Tel: 00000000000 | Tel: 00000000000 |
| Date: January 5, 2009 | Date: January 17, 2009 |
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