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Exhibit 10.31    
    

	 	 	

 
	

 	
 	

Level: 25th Floor Units: 01—04. 32
	

 	
 	

China World Tower 1
	

 	
 	

BElJlNG P. R. C

CHlNA WORLD TRADE CENTER COMPANY LlMlTED  

 AND  

  

  

TENANCY AGREEMENT

OF

CHINA WORLD TOWER 1  

 CHlNA WORLD TRADE CENTER

	 	 	Tenant: 

 
	

 	
 	

Premises: Units01-04, 32, Level 25, China World Tower 1
	

 	
 	

Commencement / Expiry: 1 September, 2004-31 August, 2007

	
Date	
 	

AN AGREEMENT made this 23rd day of August,
	
Party	
 	

Two Thousand and Four BETWEEN the party named and described as Landlord in Part 1 of the Schedule hereto ("the Landlord" which expression shall where the context admits include its successors and assignees)of the one part and the party named
and described as the Tenant in Part 1 of the Schedule hereto ("the Tenant") of the other part.
	

 	
 	

WHEREBY IT IS AGREED as follows:
	
Premises	
 	

The Landlord shall let and the Tenant shall take All That portion of the building complex situated at No. 1 Jian Guo Men Wai Avenue Beijing The People's Republic of China and known as CHINA WORLD TRADE CENTER ("the Building" described in Part
2 of the Schedule hereto and is more particularly delineated in Pink on the plan(S)annexed hereto(the external surfaces of the walls window frames and glass being excluded)Together with all those fixtures fittings furniture and appliances specified
in Part 7 of the Schedule hereto (if any)"the Premises" Together with the right to use in common with the Landlord and all others having the like right of the entrances staircases landings passages in the Building insofar as the same are
necessary for the proper use and enjoyment of the Premises and except insofar as the Landlord may from time to time restrict such use in order to carry out maintenance and/or in the case of an emergency And Together Also with the use in common as
aforesaid of any lifts serving the Premises
	
Term	
 	

whenever the same shall be operating for the term defined in Part 3 of the Schedule YIELDING AND PAYING therefor throughout the said term the rent and management charges (all of which are unless the context otherwise requires hereinafter
included under the term "rent") as is set out in Part 4 of the Schedule in
	
Rent	
 	

manner as set out in Part 5 of the Schedule.
	
Legal Costs	
 	

Each party will bear its own legal costs. Any other related costs incurred in the preparation and execution of this Agreement shall be borne and paid by the Landlord and the Tenant in equal shares.
	
Standard Conditions	
 	

This Agreement is subject to the Standard Conditions of Tenancy Agreement of China World Trade Center("the Standard Conditions")hereto annexed and shalI contain the several Landlord's and Tenant's covenants and proviso therein set forth subject
however to the amendments specified in Part 8 of the Schedule and the two shall be read together as one agreement. Any word or expression to which a specific meaning has been attached in any part of this Agreement or of the Standard Conditions shall
bear such specific meaning wherever it may occur.

 
 

THE SCHEDULE  
    

	PART 1	 	—PARTICULARS OF PARTIES
	

 	
 	

Landlord : CHINA WORLD TRADE CENTER COMPANY LIMITED
	

 	
 	

Tenant: 

 
	
PART 2	
 	

—PARTICULARS OF LAND BUILDING AND PREMISES
	

 	
 	

China World West Wing Level	
 	

: 25th Floor.
	 	 	Units	 	: 01—04, 32(inclusively).
	 	 	Net Area	 	: Approximately 287.75 square meters. (Net Floor Area).
	

 	
 	

The Tenant shall accept as final and conclusive the area of the Premises as measured by persons appointed by the Landlord.
	
PART 3	
 	

—PARTICULARS OF TERM.	
 	

 
	

 	
 	

Length	
 	

: Three(3)Years
	 	 	Date of Commencement	 	: 1 September, 2004("the Commencement Date")
	 	 	Date of Expiry	 	: 31 August, 2007("the Expiration Date")
	
PART 4	
 	

—PARTICULARS OF RENT.	
 	

 
	

 	
 	

The rent for the period from the Commencement Date to the Expiration Date 0f the said term shall be UNITED STATES DOLLARS THIRTEEN THOUSAND TWO HUNDRED AND THIRTY SIX AND CENTS FIFTY ONLY (USD 13,236,50)
Per calendar month.
	
PART 5	
 	

—PAYMENT OF RENT.	
 	

 
	

(1)	
 	

The rent shall be payable quarterly exclusive of government taxes rates and other outgoing and in advance clear of all deductions and exclusive of all bank charges on the first day of each calendar quarter when the rental falls due. The last of such
payments to be apportioned according to the number of days of the said term remaining in the quarter in respect of which such payment is due.
	

(2)	
 	

Notwithstanding 5(1)above, immediately before taking possession of the Premises, the Tenant shall pay to the Landlord three (3) months' rent for the period from 1 October, 2004 to 31 December, 2004 as an advance rental for the month
immediately after Rent Free Period (from 1 September, 2004 to 30 September, 2004) in the amount of USD 39,709.50
	

 	
 	

The Tenant shall pay management and air-conditioning charges of USD 0.17 per square meter per day during the said Rent Free Period (30days)amounting to USD 1,467.53
	

 	
 	

The total advance payment will amount to USD 41,177.03 to be paid before taking possession of the Premises, or before the Lease Commencement Date, whichever is earlier.
	
PART 6	
 	

PARTICULARS OF DEPOSIT	
 	

 
	

 	
 	

The Rental Deposit and Utilities Deposit subject to increase in accordance with Section VllI of the Standard Conditions shall be USD THlRTY NINE THOUSAND SEVEN HUNDRED AND NINE AND CENTS FIFTY ONLY(USD 39,709.50)for the Rental Deposit and USD TWO HUNDRED AND EIGHTY SEVEN AND CENTS SEVENTY FIVE ONLY(USD 287.75)for the Utilities Deposit.
	

 	
 	

The total deposits will amount to USD 39,997.25 to be paid before taking Possession of the Premises or before the Lease Commencement Date. Whichever is earlier.
	 	 	 	 	 

	
PART 7	
 	

FIXTURES & FURNISHES	
 	

 
	

 	
 	

The Landlord will provide the Tenant with the list of fixtures and furnishes within the Premises upon the delivery of possession of the Premises.

	
PART 8	
 	

SPECIAL CONDITIONS
	

 	
 	

1.	
 	

Tenant shall has an option to pay the rent in mainland China by converting USD currency into RMB according to the medium exchange rate of buying rate and selling rate for USD VS RMB as announced by the Bank of China on the date that the rent falls
due.
	

 	
 	

2.	
 	

The prospective Tenant shall have an option to early terminate the Tenancy of Rm509, China World West Wing Office without penalty under the following
conditions:
	

 	
 	

 	
 	

1).	
 	

Tenant expands its office into Units 01-04,32,Level 25,China World Tower 1 according to the terms and conditions specified in this Tenancy Agreement;
	

 	
 	

 	
 	

2).	
 	

Tenant serves an at least One (1)month prior notice in writing to the Landlord;
	

 	
 	

 	
 	

3).	
 	

The Tenant shall bear all the costs incurred within the occupancy period by the Tenant before the Date of Lease Termination of Rm509, West Wing Office. Particularly, Tenant shall pay the rent up to 31 October,
2004 and shall cooperate with the Landlord to allow other new Prospective Tenants to view the Premises during working hours via prior notice from the Landlord;
	

 	
 	

 	
 	

4).	
 	

The Tenant shall supplement the rent during the rent free period (1August,2004 ~ 21 August, 2004) in Rm 509,China World West Wing in the following amount to the Landlord:
	 	 	 	 	 	 	USD 37 * 139.45sqm/31days * 21 days * 8.28-mgt fee of RMB4,129.11 = RMB 24,811.56

	SIGNED BY MR BIAN GONG	 	)	 	 
	 	 	)	 	 
	 	 	)	 	 
	for and on behalf of the Landlord in the	 	)	 	 
	 	 	)	 	 
	Presence of:—	 	 	 	 
	 	 	 	 	    
 Company Stamp
	

SIGNED BY	
 	

)	
 	

 
	 	 	)	 	 
	 	 	)	 	 
	for and on behalf of the Tenant in the	 	)	 	 
	 	 	)	 	 
	Presence of:—	 	 	 	 
	 	 	 	 	    
 Company Stamp

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Exhibit 10.31

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Exhibit 10.32    
    

 
 

The Mayor's MEMO (Letter of Intent)    
    
    No. 194    
    

	The People's Government of Shengyang	 	August 25, 2003
	

The
key points about the projects of investments of delegation of Chinese Oversea Doctors of Philosophy Association (CODPA) 

        The
vice major of Wang Xiangkung of Shengyang city consigned by Major Chen Zhenggao chaired the major's business affair meeting on August 22, 2003. The affairs relate to the
investment of the members of CODPA in Shengyang were confirmed and assigned to relevant parties at the meeting. Secretary general of the city, Chang Ming, and the heads of relevant division of the
city also attended the meeting. The vice major of Wang Xiangkung made a final summary about the projects. 

        The
meeting confirmed the following projects: 

        (The
following are part of the memo which is relevant to CHI's acquisitions of hospital in Shengyang) 

        About
the investment project and the joint-adventure parties 

        1.     Hospital
joint-adventure project. 

        CHI
is welcomed by the city of Shengyang to invest in city's No. 1 Hospital, No. 2 Hospital, No. 4 Hospital and No. 6 Hospital as well as other hospitals. The
investment format may take the form of joint-adventure with CHI taking 70% or more. Investor: U.S.A. CHI, joint-adventure partner: bureau of health of Shengyang City, principals, the head of the
bureau: Liu Xinglie, Zhangli, the main contact person for the joint-adventure projects. 

        2.     The
detailed requirements of the investment: 

        Also
in the meeting, the vice major assigned Secretary general of the city, Chang Ming takes charge of coordinating to resolve any issue which may arise to make sure the projects will be
successful. 

        Note:
CODPA is a non-profit organization to promote its members to exchange information and networking. The members of CODPA consist of people who are originally from China
and had received their Ph.D.'s from overseas (outside of China). Dr. Frank Hu is the president of CODPA. 

1

  

 
 

Exhibit 10.32a    
    

 
 

Letter of Intent    
    

        THIS MEMO is conducted by and between the China Hospital Inc. (or CHI, hereinafter referred to as Party A), and Weifang City Bureau of Health (hereinafter
referred to as Party B). 

        WHEREAS,
Party A is a U.S. company to invest in and acquire hospitals in China. CHI has adequate capital as well as experiences on running hospital, especially advanced management
experience of hospitals of western countries. 

        WHEREAS,
Party B is in charges of the following hospitals located at Weifang in Shandong Province. Party B is familiar with the different Hygiene organizations and healthcare market in
Weifang and offers bright market prospect. 

        NOW,
THEREFORE, in order to utilize the capital and the management skill of Party A to improve the health care service of people of Weifang to benefit mutually party A and party B. in
consideration of the mutual promises exchanged by and between Party A and Party B (hereinafter referred to as the "Parties"), the Parties made a discussion on the following items: 

        Article 1:
Purpose of cooperation: Party A either acquire some hospitals under Party B or manage some of its subordinate hospitals for 50 years. Those hospitals are Weifang
City People's Hospital, Weifang City Hospital, Weifang Chinese Hospital, Weifang City Psychology Hospital, Weifang City Skin Hospital, Weifang Antiang Hospital and Qianzhou City Hosptials. 

        Article 2:
The Parties promised to work together and cooperate well to enhance the development of the project with the honest principle after signing the Letter. 

        Article 3:
The concrete items are to be further negotiated and determined by the parties. 

        The
items which have not been mentioned here will be settled by friendly negotiation between the parties. 

        The
letter of intent will take effect after the signature or seal prints of both Parties. 

        Both
Parties will have a further negotiation on the concrete cooperation. 

        The
above-mentioned items are subject to content of the formal contract. 

Party
A 

The
China Hospital Inc. 

Legal
representative (or authorized representative): Frank Hu (signature) 

Date:
Nov 2, 2003 

Party
B 

Weifang
Medical Bureau 

Legal
representative (or authorized representative): Changzhi Wang (signature) 

Date:
Nov 2, 2003 

1

  

 
 

Exhibit 10.32b    
    

 
 

LETTER OF INTENT    
    

	Party A:	 	Luoyang City Bureau of Health
	 	 	 
	Party B:	 	U.S. CHI (China Hospitals Inc.)

        WHEREAS,
Party A wants to attract the capital from outside to improve the healthcare level of Luoyang city to adopt the market economics of China and to benefit each other and create a
win-win situation for the two parties. THIS Letter of Intent is conducted by and between Luoyang City Bureau of Health (or, hereinafter referred to as Party A), and the China
Hospital Inc. (hereinafter referred to as Party B or CHI). 

        NOW,
THEREFORE, in consideration of the mutual promises exchanged by and between Party A and Party B (hereinafter referred to as the "Parties"), the Parties agree as follows: 

        Article 1:
Party B will acquire Luoyang City People's First Hospital, Luoyang City People's Second Hospital, Luoyang City People's Fourth Hospital, Luoyang City People's Fifth
Hospital, Luoyang City Women & Children Hospital, Luoyang City First Chinese Hospital, Luoyang City Second Chinese Hospital, Luoyang City Psychology Hospital as well as invest its capital to
build a new hospital in new district of Luoyang. 

        Article 2:
The details of the acquisitions are to be further negotiated and determined. 

        The
letter of intent will take effect after the signature or seal prints of both Parties. 

Party
A 

Legal
representative (or authorized representative): Baoguo Liu (signature) 

Party
B 

Legal
representative (or authorized representative): Frank Hu (signature) 

Date:
February 9, 2004 

1

  

 
 

Exhibit 10.32c    
    

 
 

LETTER OF INTENT    
    

	Party A:	 	People's Government of Sogung City

Legal representative (or authorized representative):

Daoming Zheng (signature)
	 	 	 
	Party B:	 	U.S. CHI (China Hospitals Inc.)

Legal representative (or authorized representative):

Frank Hu (signature)

        THIS
Letter of Intent is conducted by and between the People's Government of Sogung City (hereinafter referred to as Party A), and China Hospital Inc. (hereinafter referred to as
Party B), a firm located in Silicon Valley in California, U.S.A. 

        NOW,
THEREFORE, in consideration of the mutual promises exchanged by and between Party A and Party B (hereinafter referred to as the "Parties"), the Parties agree as follows: 

        Article 1.
Purpose: Party B to acquire hospitals Party A owns. 

        Article 2.
About the acquisitions. The acquisitions will be divided into two stages. Party B will acquire the first six hospitals including Sogung City People's Hospital, Sogung
City Chinese Hospital, the No. 2 Sogung City People's Hospital, the No. 3 People's Hospital of Sogung, the No. 4 People's Hospital of Sogung, and the No. 5 People's
Hospital of Sogung. 

        Article 3.
The details of the acquisitions will be discussed and negotiated between the two Parties. 

Date:
January 11, 2004 

1

  

 
 

Exhibit 10.32d    
    

 
 

Letter of Intent    
    

        THIS MEMO is conducted by and between the China Hospital Inc. (or, hereinafter referred to as CHI), and Hainan Chinese Hospital (hereinafter referred to as
Party B), a local medical institution located in Hainan. 

        WHEREAS,
CHI is a Delaware company with experience in modern hospital management and offers to provide the managerial skills and capital needed in the cooperation, and 

        WHEREAS,
Party B has a good market prospect, and offers to provide its knowledge in local patient market, 

        NOW,
THEREFORE, in consideration of the mutual promises exchanged by and between CHI and Party B(hereinafter referred to as the "Parties"), the Parties agree as follows: 

        Article 1
Purpose of Cooperation. The aim of the cooperation is to let CHI acquire Party B, converting Party B into a subsidiary of CHI 

        Article 2
CHI will invest its capital into the hospital by different stages. The total investment will be 70%~100% of the total appraised value of Party B. CHI will hold 70%~100%
shares of the new entity. 

        Article 3
Without the consent of both Parties, no dismission will be made to the current management and staff of Party B. 

        Article 4
CHI hopes that Party B will assure CHI that the new entity will continue to have contracted healthcare insurance programs with local identities. 

        Article 5
CHI hopes that Party B promises that the new entity will continue to be a non-profit medical institution (which means tax-free) for three years. 

        Article 6
Before the acquisition, Party B will assist CHI and/or the advisory company appointed by CHI to complete the necessary due diligence investigation, and assure that the
materials provided are true, complete and legitimate. 

        Article 7
The Parties promise to cooperate closely on a mutual-trust and honest basis to promote the cooperation after the Memo is signed. 

        Article 8
The Parties understand that the information the other Party provides is intended only for the purpose of the acquisition and is to be held confidential. Each Party will
undertake the obligation of confidence and will not reveal any information from the other Party to a third party without the written agreement of the other Party. 

        Article 9
The value of total assets of Party B is                        million RMB (based on the accounting statements of administrative
institutions. The actual value will be in
accordance with the appraised assets values), the value of fixed assets being                        million RMB and the value of
intangible assets                        million RMB. 

        Article 10
The concrete cooperation scheme is to be further negotiated by the Parties. 

        The
items not discussed or not pursuant to the provisions of the Memo are to be further negotiated and determined. 

        The
letter of intent will take effect after the signature or seal prints of both Parties. 

        The
validity period of the letter of intent is from 2002/11/4 to 2005/11/3. 

1

 

China
Hospital Inc. 

Legal
representative(or authorized representative): Frank Hu (signature) 

Date:
November 4, 2002 

Party
B 

Legal
representative(or authorized representative): Lin Tiandong (signature) 

Date:
November 4, 2002 

2

  

 
 

Exhibit 10.32e    
    

 
 

Letter of Intent    
    

        THIS MEMO is conducted by and between the China Hospital Inc. (or, hereinafter referred to as CHI), and Heilongjiang Surgical Hospital (hereinafter
referred to as Party B), a local medical institution located in Heilongjiang. 

        WHEREAS,
CHI is a Delaware company with experience in modern hospital management and offers to provide the managerial skills and capital needed in the cooperation, and 

        WHEREAS,
Party B has a good market prospect, and offers to provide its knowledge in local patient market, 

        NOW,
THEREFORE, in consideration of the mutual promises exchanged by and between CHI and Party B(hereinafter referred to as the "Parties"), the Parties agree as follows: 

        Article 1
Purpose of Cooperation. The aim of the cooperation is to let CHI acquire Party B, converting Party B into a subsidiary of CHI 

        Article 2
CHI will invest its capital into the hospital by different stages. The total investment will be 70%~100% of the total appraised value of Party B. CHI will hold 70%~100%
shares of the new entity. 

        Article 3
Without the consent of both Parties, no dismission will be made to the current management and staff of Party B. 

        Article 4
CHI hopes that Party B will assure CHI that the new entity will continue to have contracted healthcare insurance programs with local identities. 

        Article 5
CHI hopes that Party B promises that the new entity will continue to be a non-profit medical institution (which means tax-free) for three years. 

        Article 6
Before the acquisition, Party B will assist CHI and/or the advisory company appointed by CHI to complete the necessary due diligence investigation, and assure that the
materials provided are true, complete and legitimate. 

        Article 7
The Parties promise to cooperate closely on a mutual-trust and honest basis to promote the cooperation after the Memo is signed. 

        Article 8
The Parties understand that the information the other Party provides is intended only for the purpose of the acquisition and is to be held confidential. Each Party will
undertake the obligation of confidence and will not reveal any information from the other Party to a third party without the written agreement of the other Party. 

        Article 9
The value of total assets of Party B is                        million RMB (based on the accounting statements of administrative
institutions. The actual value will be in
accordance with the appraised assets values), the value of fixed assets being                        million RMB and the value of
intangible assets                        million RMB. 

        Article 10
The concrete cooperation scheme is to be further negotiated by the Parties. 

        The
items not discussed or not pursuant to the provisions of the Memo are to be further negotiated and determined. 

        The
letter of intent will take effect after the signature or seal prints of both Parties. 

        The
validity period of the letter of intent is from 2002/11 to 2004/11. 

1

 

China
Hospital Inc. 

Legal
representative(or authorized representative): Frank Hu (signature) 

Date:
November 12, 2002 

Party
B 

Legal
representative(or authorized representative):XuJiazeng (signature) 

Date:
November 12, 2002 

2

  

 
 

Exhibit 10.32f    
    

 
 

LETTER OF INTENT    
    

	 
	 	 

	Party A:	 	Academy of Traditional Chinese Medicine

Zhangzeng Hospital, Tianjing

Legal representative (or authorized representative):

Zhang Yuhuan (signature)
	

Party B:	
 	

China Hospitals, Inc, Legal representative (or authorized representative):

Frank Hu (signature)
	

Date:	
 	

March 25, 2004

        THIS
Letter of Intent is conducted by and between Party A and Party B for Party B to invest or acquire Zhangzheng Hospital that belongs to Party A. 

        NOW,
THEREFORE, in consideration of the mutual promises exchanged by and between Party A and Party B (hereinafter referred to as the "Parties"), the Parties agree as follows: 

        Article 1.    Purpose:    Party
B to invest money into or acquire Party A. 

        Article 2.    The
details of the cooperation will be further discussed and negotiated between the two Parties. 

1

  

 
 

Exhibit 10.32g    
    

 
 

LETTER OF INTENT    
    

	 
	 	 

	Party A:	 	State Administration of Traditional Chinese Medicine, People's Republic of China

Legal representative (or authorized representative):

Chen Luojia (signature)
	

Party B:	
 	

China Hospitals, Inc, Legal representative (or authorized representative):

Frank Hu (signature)
	

Date:	
 	

March 19, 2004

        THIS
Letter of Intent is conducted by and between Party A and Party B for Party B to invest or acquire Wangjing Hospital that belongs to Party A. 

        NOW,
THEREFORE, in consideration of the mutual promises exchanged by and between Party A and Party B (hereinafter referred to as the "Parties"), the Parties agree as follows: 

        Article 1.    Purpose:    Party
B to invest money into or acquire Party A. 

        Article 2.    The
details of the cooperation will be further discussed and negotiated between the two Parties. 

1

QuickLinks

Exhibit 10.32

The Mayor's MEMO (Letter of Intent) No. 194

Exhibit 10.32a

Letter of Intent

Exhibit 10.32b

LETTER OF INTENT

Exhibit 10.32c

LETTER OF INTENT

Exhibit 10.32d

Letter of Intent

Exhibit 10.32e

Letter of Intent

Exhibit 10.32f

LETTER OF INTENT

Exhibit 10.32g

LETTER OF INTENT

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