The most detailed factory leasing contract sample at present

                           SOCIALIST REPUBBLIC OF VIETNAM

                                 Independence – Freedom – Happiness 

                                                  FACTORY LEASING CONTRACT

                            No: 

 - Pursuant to Civil Law and Comercial Law of The socialist republic of Viet Nam was approved by The Vietnam National Assembly on June, 14th 2005

 - Due to demand and capability of two Parties,

Today, day/month/year , at the office of..... in : .....................  Hereinafter we signed as follows: 

I. Party A: Company name........................

Represented by    : Mr/Ms ...................

Position          : .............................

Address          : ............................

Tel                    : ..............................

Fax                   : ...........................

MST               : ............................

II. Party B: Company name........................

Represented      :  Mr ........................................                              

Position          : .....................

Address          :.....................

Code Tax        :.........................

Account             :..........................

RECITALS:

-              Party A is a enterprise having business in leasing buildings and is a landlord of factory and land using right under Article 1 of this Agreement pursuant to the certificate of land using rights , ownership of housing and land assets associated with No. [...]

-              Party B is a foreign enterprise wishing to rent factory for the implementation of investment projects and apply for investment certificates and certificates of business registration in .... province, Vietnam.

Both Party A and Party B have mutually agreed to enter into this factory leasing contract with the following terms and condition:

Article 1: Content of the contract

1. Party agreed for leasing and party B agreed with rental factory in [...]m2 located on land area of [...]m2 belong to party A’s own right at [...]

2. Rental purpose: used for business and manufacturing factory

3.The factory premises include :

e)         All of the above located as per attached.

Article 2: Duration of the factory leassing contract:

1. Duration of the factory lease: 05 (five) years, commencing on 1stMarch 2016 and ending on 1st Marrch 2021, with no break on either side , unless by mutual written agreement of both parties.

2. This contract is signed temporarily in order to modify for documents to apply the investment and  business licence, but once, the business licence is granted, we will change the company name of party B in UK into company name of party B in Vietnam

Article 3: Price – Payment method

- Factory Leasing Price :... VND/month ,( In words: ... Vietnam dong only)

- The about rental fee includes VAT 10% and all kinds of related tax that may arise under this contract; and excludes costs of electricity, telephone, fax, sanitation services inside the house and other services in the course of using those equipment/services by Party B.

- In Case such payment is made later than the stipulated date, Party B has to Party A an additional charge of ...% [... percent] per one day of such delayed payment.

- Party A will issue VAT invoice to party A before the third day each month and Party B will make a payment from 1-10th each month. 

Article 4. Security deposit and settlement of security deposit

- Party B will deposit with balance 5 rental months and ...% VAT for 6 months (due to deposit 1 month already) with amount of 3.... VND,( In words:....Vietnam dong only). This amount will be paid within 10 days after party B is granted the investment certification (or business license) at above factory address.

- Such amount of security deposit after deducting costs (if any) will be refunded to Party B within 05 [five] working days after the proper termination of this present contract.

- Các chi phí sử dụng điện, nước và dịch vụ khác trong nhà xưởng sẽ được thanh toán theo thông báo của bên B và tuần đầu hàng tháng.

- Hình thức thanh toán: Thanh toán bằng tiền VNĐ.

Article 5 . Right and Responsibility of both parties.

Party B

- To use the factory in correctly with rental purpose, when party B needs to repair as per party B’s requirement, party B must discuss with party A.

- The contents of the building and any tenants improvements such as partitioning , lighting ,  electrical wiring and equipment , made by Party B (the tenant)  during the rental term are the sole responsibility of Party B (the tenant) .  At the end of the rental term, party B may only leave in situation any such improvements with the written agreement of Party A, otherwise they will be removed and any resulting damage made good by Party B on termination of the lease.

- Party B agrees not to make any improvements to the building with the prior agreement of the party A, provided permission or none is not unreasonably withheld given the intended use of the premises.

- Payment the monthly rental is on time

- To takes responsibility for damage, lossage for tools and equipments and private furnitures of party B

- To take responsibility for all business and manufacturing activities in according to the current law and business license.

-  To settle payment all cost arising in business(besides monthly factory rental cost mentioned at article 3) such as electricity, telephone, internet, business tax… in fully and on time

- Party B  has the right to " Quiet Enjoyment" of the premises for the length of the lease term ,    7 days a week , 24 hours a day, 365 days a year,  and may fully utilise the premises for their intended purpose  without restriction, intrusion or encumbrance by party A.

- Party B agrees to pay party A) a single lump sum payment of 115,500,000 VND   provided all agreed works to the premises are completed on time ,in full ,to the agreed specification,  and that  full use and access to the premises is available to party B on the 1st of March 2016.  Payment will be made by Party B,  within 10 days of receipt of a VAT invoice from Party A.

- Party B takes responsibility to set up fire fighting system inside the factory and cost is belong to party B

- Party B will support by paying cleaning cost for toilet of workers and premise of the  factory with amount of 2,000,000 VND per month, this amount will be issued VAT invoi ce or coolection voucher  by party A.

Party A

-Party A ensures to make sure usage wholly for factory premise legally and create convenient condition in order that party B can use the premise effectively.

-  The premises will be connected to a 250 KVA dedicated power supply, on completion /handover.  Party A further agrees to upgrade the power supply at a 50/50 shared cost  with fabricant  to 350KVA should this be required at any point within the lease term, within 3 months of receiving a written request from party B.

- Party A will assembly and supply enough water source for production and living

- Party A makes sure the construction building strongly, if within using process, there happens accidents to life and assets of party B, party A must take all responsibility

- The landlord is responsible for the maintenance & structure of the building  yearly, and agrees to fix and repair freely any structural defect to the fabric of the building  ( including any leak in the roof) promptly , provided it is not as a result of any damage caused by the occupation of the tenant. Any damage to the the contentments /improvements of the building arising from a serious structural failure of the building will be the responsibility of party A and party A needs to fix within 10days at maximum. If party A delays in fixing caused the obstacles in party B’s operation, party A will compensate the loss

- Maintenance of the power supply yearly up to the entry point into  office  building ( including the main external transformer) is the responsibility of Party A.

- Party A must ensure at all times Party B can gain vehicular access to  a) the main gate of the site , and b)  4 main  doors into the factory building  , and that the paved access driveway to the 4 main doors  is maintained in good order and free from any temporary or permanent obstacles that may restrict access, except for planned essential maintenance by party A but not more than 05 working days for each door.

- Party A agrees to hand over the building at the beginning of the rental term,  Complete, secure and weathertight, with all agreed services in fully working order  I.e. Power, Water , Toilets and Drains, and agreed decoration & fit-out to the office block. Part A further agrees to have the external Fire Fighting system installed and working within 1 calendar month from handover of the building.

-  To take responsibility to settle payments to tax agency

- Assuring and committing that the above-mentioned factory belongs to Party A, and Party A has the right to lease/rent it out; that this factory is not in the state of dispute.

- Support Party B in obtaining the licenses as investment certificates, certificates of enterprise registration or other procedures related to the factory and land at the factory area.

Article 6. Settlement of contract’s breach

- The Rental Agreement is to commence form the 1st March 2016 until  the 1st March 2021, subject to completion  of all building works in full . If for any reason the building or the reparation  is not fully completed by the 1st March 2016    Party B  is not required to pay rent or balance 6 months deposit until the premises are completed , and furthermore  Party A agrees to grant Party B  a rent fee period of 1 month for each full week of delay. The rent free period will apply to the starting month(s) of the rental agreement. If after 4 weeks any part of the agreed works are still not completed , party B reserves the right to terminate the agreement and request the return of deposit payment and must pay to Party B amount equivalent to the amount of security deposit as compensation made to date within 10 days.

 - Should Party B terminate this present contract prior to its expiration without complying with this contract, Party B will lose the amount of security deposit.

- Should Party A terminate this present contract prior to its expiration without complying with this contract, Party A will refund Party B the amount of security deposit, the remaining amount of the rental fee, if any, and must pay to Party B amount equivalent to the amount of security deposit as compensation. In addition, Party A is obliged to compensate for all the expenses that Party B has invested in the  factory to cater to the production and business of Party B and compensation for all damages incurred by Party B be due to the termination of the contract before this deadline caused to Party B.

Article 7: General committment   

- Both parties commit to implement correctly all terms and articles in the contract. If there arise disputes or any party violates the contract and then both parties will negotiate mutually. In case in the fact that it’s failed, this will submit to Binh Duong court. Both of Parties agree that Vietnam Law will be chosen to adjust this contracrt. The decision from the court is finial that must be complied by both parties, every cost will be paid by the lost party

             Represented by Party A                                                                                                         Represented by Party B

           (Mr....)                                                                                                                                        (Mr....)