Project Construction Contract The People’s Government of Linwei District, Weinan City Tianjin Yayi Industrial Co., Ltd. July 2008
Project
Construction Contract
The
People’s Government of Linwei District, Weinan City
Tianjin
Yayi Industrial Co., Ltd.
July
2008
Party
A:
The People’s Government of Linwei District, Weinan City (addressed as party A
below)
Party
B:
Tianjin Yayi Industrial Co., Ltd. (addressed as party B below)
According
to the Contract Law of the People’s Republic of China and related statute, and
based on negotiation, both parties have agreed to signed the contract allowing
party B to invest in Weibei Industrial Park of Weinan High-Tech Industrial
Development Area to establish goat milk process project:
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A.
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Party
A agrees that party B will invest in Weibei Industrial Park of Weinan
High-Tech Industrial Development Area to establish goat milk process
project. The total investment amount will be 130M RMB, including
fixed
assets of 80M RMB. The planned construction area is 30,000 square
meters,
which will be used for deep processing of goat milk products. The
designed
production capacity of all kinds of goat milk products is 50,000
tons per
year. After the production begins, the project will bring annual
sales of
300M RMB and annual tax of 60M RMB.
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B.
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Party
A agrees to lease a piece of land with an area of about 66670 square
meters to party B at the price of 68,000 RMB per 666.7 square meters
(the
area is subject to the actual measuring and include the surrounding
roads). The address is to the east of the Gong Ye Street extension
line
and to the north of Hou Huai Road. The term of use is 50 years. The
city
construction facilities fee is exempted. Party B should pay off the
land
use right transfer price within 10 days after signing the contract.
(payment receiving unit: New Industrial Project Area of Linwei Branch
of
Weinan City State-Owned Land and Resources Bureau Account number:
2605044629200056606 Account Opening Bank: ICBC Qianjin Road Branch,
Weinan
City) Meanwhile, party A should make sure that party B may enter
the piece
of land to start construction within 30 days after it pays off the
land
use right transfer price.
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C.
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As
to the project, party B must cover the industrial and commerce
registration, tax registration and liquidation in the Wei Bei industrial
park of Linwei District. Party B must follow laws and statutes to
operate
and pay taxes.
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D.
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In
order to make sure that party B’s project construction can start and
complete as scheduled, party A must provide necessary documents for
design
and construction within ten days after the use right transfer payment
is
paid off. When party B’s investment on fixed assets reaches 1/3 of the
total investment, party A will give the Land Use Certificate of the
People’s Republic of China to party
B.
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E.
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On
the land that party A provides to party B for the project, party
B must
start the construction within 3 months after signing the agreement
and
complete the construction within 12 months. If party B can not start
the
construction on time, party A has the right to withdraw the land
and the
contract will automatically terminate. Meanwhile, party B should
compensate for all economic losses for the period it occupies the
land; if
the construction time limit is extended or party B has not invested
as
much as the agreement stated, party B must not enjoy
the
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discounted
transfer price, each 666 square meters should be valued at the average minimum
cost of RMB112,000 and the price gap should be filled up. The plan of party
B’s
project must meet party A’s general requirement.
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F.
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The
land transferred from party A to party B at a price lower than the
average
minimum cost for the construction of party B’s project must be used for
the developing the industry. Party B must not change the function
of the
land casually. If party B really needs to change the function, it
must get
party A’s approval first.
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G.
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As
to the taxes that should be paid by the construction company, party
B
should deduct them from its payment to the construction company and
pay to
the local taxation authority of party
A.
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H.
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If
the construction of party B’s project completes within the time limits,
there will be no charge on it for the first five years after the
completion of the project. That is, the company will be exempted
from all
administrative charges of or lower than province-level. After five
years,
the company will be charge only
50%.
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I.
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According
to related policies of the governmental file Xxx Xxx Xxxxx Xx (2003)
No.33, the land used by projects in the industrial park should be
facilitated with roads, electricity, water supply, drainage, communicate
and information cable. However, considering that party A’s industrial park
is in the primary state, both parties agree
that:
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1.
Environmental protection: before construction starts, party B’s project must get
environmental protection authority’s approval and related report.
2.
Party
A is responsible for introducing the running water to the outside of the plant
area of party B’s project, while party B will connect the water into the plant
to ensure the water supply for construction, production and living.
3.
Party
A should ensure party B’s electricity supply for construction, production and
living.
4.
Party
A allows party B to use coal-burning boiler whose lifespan is no shorter than
the designed one. Its exhausting standard should be up to the national
exhausting standard for coal-burning boiler.
5.
Party
A promises to make the communication cable ready before the construction starts
and will make the information cable ready as soon as possible.
6.
Party
A should ensure that the procedures required get all kinds of governmental
approval can be covered smoothly at the beginning of the project construction,
and party A will make all efforts to provide a good environment for party B’s
development.
| J. |
If
anything unsettled arises, party A and B should discuss and reach
agreement in another occasion. The supplementary agreements share
the same
legal effect with this contract.
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| K. |
There
should be four copies of the contract, with each of party A and party
B
holding two copies.
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Party
A:
The People’s Government of Linwei District of Weinan City
Legal
representative (or authorized representative) signature and seal
Date:
July 25, 2008
Party
B:
Tianjin Yayi Industrial Co., Ltd.
Legal
representative (or authorized representative): company seal
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J.
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Date:
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