Factory Leasing
Agreement
Party A: Chen
Jin Yao (Identity card number: 440721570929731)
Party B:
江门市活思环保包装制品有限公司
(Jiangmen) Roots Biopack Company Ltd
Agreement between Party A and
Party B for Party B’s leasing of Party A’s industrial
premises and dormitory located in Duruan Tingyuan Industrial Area,
Duruan Town, Pengjian District, Jiangmen City is made on the basis
of fairness, equality and mutual benefit and in accordance with the
“Contract Law of the People’s Republic of China”.
Both parties are to abide by the terms and conditions stipulated
under the agreement.
I.
Lease Period and Conditions of the aforesaid
premises
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1.
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The lease term is 15 years
commencing from the date of signing this Contract (i.e. from 1
st March 2007 to 29 February 2022). When the lease
period expires, Party B shall have the priority to renew the
lease.
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2.
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The premises shall be handed over
to Party B15 days after the signing of this Contract. At the time
of handover, the Parties shall state and confirm the handover
checklist as an annex of this Contract. Party A shall provide all
inspection certificates of the premises and attached facilities,
ensuring all facilities are in good conditions and fulfill general
purpose of usage.
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3.
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All factories (Four blocks),
dormitories (three blocks), all first floor shops, second floor
office, entrance, toilets, garage, storing shelter and all (open)
land, substation, transformer (315kW), a set of kitchen stove are
leased to Party B. (factory areas, garage, dormitory are all
equipped with water, electricity, fire prevention and fire fighting
equipment, and thunder attack prevention facilities).
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II.
Due Date and Payment Method of Rent and Deposit
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1.
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Party B shall on the signing
hereof deposit with Party A the sum of RMB100,000.00 as partial
rental deposit. Party B shall further deposit with Party A the sum
of RMB209,000.00 before 5 March 2007 as the balance of 3
months’ rental deposit (three months’ rental deposit
equals to RMB309,000.00). The rental deposit shall be refunded to
Party B by Party A without interest upon the expiration of the
lease.
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2.
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Monthly rent shall be
RMB103,000.00. For the period from the first to the fifth year,
monthly rent shall be RMB103,000.00 (RMB One Hundred and Three
Thousand Only), total annual rent shall be RMB1,236,000.00 (RMB One
Million Two Hundred and Thirty Six Thousand Only).
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From the sixth year (1 March
2012) onward, the rent shall be increased by 5% every 3 years. i.e.
From 1 March 2012 to 30 February 2015, annual rent shall be
RMB1,297,800.00 (RMB One Million Two Hundred Ninety Seven Thousand
and Eight Hundred Only), monthly rent shall be RMB108,150.00 (RMB
One Hundred Eight Thousand One Hundred and Fifty Only).
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From 1 March 2015 to 30 February
2018, annual rent shall be RMB 1,362,690.00 (One Million Three
Hundred Sixty Two Thousand Six Hundred and Ninety Only),
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monthly rent shall be RMB
113,557.50 (RMB One Hundred Thirteen Thousand Five Hundred Fifty
Seven and Fifty Cents Only).
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From 1 March 2018 to 30 February
2022, annual rent shall be RMB1,430,824.50 (RMB One Million Four
Hundred Thirty Thousand Eight Hundred Twenty Four and Fifty Cents
Only), monthly rent shall be RMB119,235.80 (RMB One Hundred
Nineteen Thousand Two Hundred Thirty Five and Eighty Cents
Only).
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3.
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Party B shall pay Party A the
rent on or before 15 th of each month. If Party B delays
the payment of rent, in contradiction to this contract, for a
period of 15 days or more), Party B shall pay monthly rate of 5% on
the total overdue rent as penalty. If the rent is overdue for more
than 60 days, Party A shall have the right to terminate this
Contract. Tax is not included in the annual rents stated above and
Party B shall be responsible for all tax payable).
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4.
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In order to encourage investor,
Party A grants a rent-free period of 2 months for Party B to carry
out renovation. The rent-free period shall be from 1 March 2007 to
31 April 2007. Party B shall pay Party A the rent commencing from 1
May 2007.
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III.
Rights and Obligations of The Parties
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1.
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(Party A) Shall guarantee the
lawful owner
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