Equipment Assigning Agreement
Exhibit
10.4
Party A:
▇▇▇▇ Fabrics (Shanghai) Co., Ltd.
Party B:
Lizhan Textile (Zhejiang) Co., Ltd.
Through
consultation, Party A and Party B has made the following agreement on assigning
of the long term use right of the tufted fabric production equipment and
affiliated equipment (hereinafter referred to as “equipment assigned”) listed in
the annex herein:
1. For
the list of the equipment assigned please see the annex. There are 14 sets in
total. The original value of each set is RMB 1.85 million, i.e. RMB 26 million
in total. The estimated service life is 20 years. On the signing date of this
contract, the above equipment has been used one year in the United States and is
in good condition upon assignment.
2. Party
A assigns the use right of the above equipment to Party B without consideration.
During the service life of the equipment, Party B may use the equipment for
free. Party A will teach Party B the technique of tufted fabric production using
the equipment and will assign a technician to give Party B direction until Party
B can produce independently.
3. As
compensation, the sales right of the products (tufted fabric) in the United
States produced in the first two years since Party B’s commencing the use the
above equipment shall solely belong to Party A. Without the approval of Party A,
Party B shall not sell the product to any third party within the territory of
the United States.
4. After
the assignment, the repair and maintenance costs of the equipment during the
course of its use shall be borne by Party B.
5. The
product price of the related product sold by Party B to Party A shall be set by
Party A at its sole discretion according to the production costs and the
circumstances of the market competition. Party A shall not intefere with the
pricing of Party B.
6. This
agreement has two originals. Each party shall hold one original. Both parites
shall abide by and shall not breach the agreement. In case of any disputes, they
shall be settled by Party A and Party B through consulation.
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Signature
on behalf of Party A:
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▇▇▇▇
Fabrics (Shanghai) Co., Ltd. (seal)
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June
26, 2008
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Signature
on behalf of Party B:
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Lizhan
Textile (Zhejiang) Co., Ltd. (seal)
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June
26, 2008
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