Exhibit 10.31
Contract No.:
FIBCDDBO8-0012
Administration Department
of
Fiberxon (Chengdu) Technology
Co., Ltd
Lease Contract
on Standard Factory Buildings in
Sichuan Chengdu Export Processing
Zone
Contract No.:
|
Party A
(Landlord):
|
Chengdu Gaoxin Construction
Development Co., Ltd.
|
|
Party B (Tenant):
|
Fiberxon (Chengdu) Technology
Co., Ltd.
|
|
Party C
(Administrator):
|
Administration Office of Sichuan
Chengdu Export Processing Zone
|
In according with the
Contract Law of the People’s Republic of China
and pertinent rules and regulations, Party A, Party B and
Party C have reached an agreement through friendly consultation
and shall be bound by the following terms and
conditions. Party A hereby appoints Party C to manage
its standard factory buildings in Sichuan Chengdu
Export Processing Zone (West Side) and lease them to Party B for
its use. Party B hereby agrees to rent the standard factory
buildings of Party A. Party A and Party C shall exercise their
rights and perform their obligations respectively according to the
terms and conditions under the Contract on Entrusted Operations of
Standard Factory Buildings and Supervised Warehouse signed by
them.
1.
Location of the Leased
Workshops:
The leased workshops are located in
the Standard Factory Building Area of Sichuan Chengdu Export
Processing Zone (West Side) and include the whole of No.2 Building
and the second floor as well as the reception hall on the first
floor of No.5 Building.
2.
Area of the Leased
Workshops:
The area of the leased workshops
leased by Party B is 17,571 square meters (among which, No.2
Building covers 13,638 square meters, the second floor and the
first floor of No.5 Building occupies 3,852 square meters and 81
square meters respectively. In case of any errors arising from the
area of the leased workshops, the actually measured area shall be
taken as valid). Plain-view drawings of the leased workshops shall
be regarded as the appendix to this Contract.
3.
Lease Term:
3.1
The lease term shall be 60 months
from January 15, 2008 to January 14, 2013.
3.2
No party shall change the terms and
conditions hereof during the terms of the lease before Parties A, B
and C reach unanimity through consultation.
4.
Current Status of the Leased
Workshops:
Party A and Party C guarantee that
Party A has all the rights and powers to lease the foregoing
factory buildings and land and has the power to sign this Contract
on behalf of any and all of the owners of the buildings (if any) or
competent authorities of housing and land administration. Party A
and Party C guarantee that there is no existing or potential
litigation, arbitration, disputes or other legal proceedings
concerning the land and buildings leased and remised by Party A.
And there is no mortgage on the land and factory buildings owed to
any banks, companies or individuals, nor any lease contract except
this one and any rights and interests of any third
parties.
5.
Purpose of the Leased
Workshops:
5.1
The leased workshops shall be
limited to the purposes of manufacturing, processing, dealing with
related business and warehousing which Party B has been approved to
undertake.
5.2
Party B shall notify Party C in
writing 60 days prior to the expiration of this Contract in the
event that it intends to extend the lease. Under the same terms
Party B shall have the priority to lease the leased workshops. In
this case, a new lease shall be concluded between the parties. In
case that Party B has already been using the leased workshops
before renewing the lease contract, the lease term shall be
calculated from the date when the leased workshops was actually put
into use by Party B. The rent for the extended lease shall not be
higher than the price level estimated by professional organizations
mutually recognized by Party A and Party B under the same
conditions of the current market.
6.
Rent, Property Management Fee and
Payment:
Rent and property management fee
shall be calculated based on the construction area.
6.1
Rent:
6.1.1 Party A and Party C shall grant Party B 90 days
of rent-free for decoration from January 15, 2008 to
April 14, 2008.
6.1.2 Monthly rent shall be 10RMB/m² from
April 15, 2008 to April 14, 2010.
6.1.3 Monthly rent shall be 15RMB/m² from
April 15, 2010 to January 14, 2013.
6.2.
Party B shall pay 0.5% of the amount
overdue as penalties every day in the event that the rent payment
is delayed over one working day.
6.3
The property management fee shall be
1.5 RMB/m² every month and shall be calculated starting from
April 15, 2008.
6.4
The rent and property management fee
shall be paid on a monthly basis. Party B shall pay rent and
property management fee for the current lease month (either in cash
or by check and check amount shall have been deposited into the
bank account). Payment shall be made before the 10
th of every month. Party C shall transfer the
non-operating receipts or invoices issued by Party A to Party B
within 15 working days after Party A’s receipt of the
payment.
Bank Account Number designated by
Party A for Party B’s payment:
51001406137050111277
Account Name: Chengdu Gaoxin
Construction Development Co., Ltd.
Issuing Bank: Gaoxin Branch of China
Construction Bank
6.5
Party A or Party C shall not charge
any parking fee for motor vehicles of Party B and its
employees.
7.
Guarantee:
7.1
Party B shall pay a lease guarantee
of RMB 80,000 (eighty thousand RMB in total) to Party A within 5
days from the date of signing this Contract. The guarantee shall be
refunded by Party A to Party B in a lump sum upon the expiration
date of this lease provided that Party C confirms, upon inspection
and acceptance, that Party B has not damaged the building
structure, changed the outside façade images and the
interior layout of the factory buildings during the lease term.
Party A shall issue a financial receipt for the
guarantee.
The bank account number, name of the
account and issuing bank designated by Party A for Party B
making
payments shall be consistent with
the provisions under Article 6.4.
7.2
Within 5 working days after the date
of the delivery of the workshops, Party B shall pay water and
electricity deposit of 5 RMB/square meter to Party C according to
the area of the workshop. This deposit shall total RMB 87,855 (RMB
eighty-seven thousand eight hundred and fifty-five). The deposit
shall be refunded by Party C to Party B in a lump sum on the
expiration date of this lease provided that Party C verifies and
confirms that Party A has not owed any water and electricity fees
and overdue fine during the lease term.
Bank Account Number designated by
Party C to Party B for payments: 511610015018001658252
Name of Account: Financial
Centralized Receipt and Payment Center of Chengdu Gaoxin District
(Export Processing Zone)
Issuing Bank: Gaoxin Branch of
Communication Bank of China
8.
Status and Delivery Time of the
Leased Workshops:
8.1
Status of the Workshops at the time
of the Delivery:
Within 90 working days from the date
of signing this Contract, Party A and Party C shall make sure that
the workshops meet the following conditions:
8.1.1 The external walls have been
re-painted;
8.1.2 The waterproof has been repaired and there
exists no water leakage;
8.1.3 The elevators are in place and ready for use.
The elevators are required as follows:
There are two elevators installed in
the Building 2 and one elevator installed at the specified position
in Building 5 by Party B. All the foresaid elevators shall be
freight elevators with a load capacity of no less than 2,800
kilograms.
8.1.4 Party A and Party C shall ensure that
electricity supply in Building 2 and Building 5 is in good
condition. Within 90 working days from Party B’s provision of
relevant technical parameters about the transformer to Party A and
Party C, Party A and Party C shall complete the configuration of
the power and make it available and Party C shall ensure power
supply during Party B’s decoration.
The requirements for power specified
by Party B are as follows:
Building 2 and Building 5 shall
receive power from different transformers.
A specific-purpose transformer
shal
