Sino Green Land Corp. 10-K

Item 2. PROPERTIES In China, there is no private ownership of land. Rather, the government owns all real property and issues certificates of property right, known as a land use right, which are transferable, generally have a term of 50 years and permit the holder to use the property. The holder of the land use rights may lease the space to tenants. We lease our property pursuant to leases with the holder of the land use rights, although the lease for one of the buildings in our proposed distribution hub has not yet been finalized or signed. Our headquarters occupy approximately 7,400 square feet of office space at 6/F No.947, Qiao Xing Road, Shi Qiao Town, Pan Yu District, Guangzhou, China, at a rental of approximately $2,000 per month pursuant to a five-year lease agreement between the Company and Guang LV Industrial Co., Ltd., as supplemented. The lease will expire on May 1, 2012. We have the option to extend the lease under the same terms and conditions. We have constructed and are in the process of completing a new distribution hub, consisting of two buildings in the Guangdong Yuncheng wholesale market in Guangzhou. These leases provide that we pay for the construction of the buildings and we will lease the buildings pursuant to leases with the non-affiliated land use holders. One building for our distribution hub is a 311,500 square foot building which we lease for a 216 month term, commencing August 1, 2009, at an annual rental of approximately $1.1 million. The rent is subject to escalation after five years. The lease required us to pay the cost of the building, which was approximately $19 million. The exterior of the building is completed, and we still have to construct and equip the interior. The second building for our distribution hub is a 287,870 square foot building. Our lease for this building is being negotiated. Our agreement with the building owners required us to pay the cost of the building. The cost of the building was approximately $8.4 million, which we paid by issuing the contractors a total of 40,015,084 shares. The exterior of the building is completed, and we still have to construct and equip the interior. We also lease a 130,000 square foot cold storage facility at the Guangdong Yuncheng wholesale market for apple storage pursuant to a 20-year lease which commenced on July 1, 2010 at an annual rental of approximately $470,000. The rent is subject to escalation after five years. We paid the cost of the building, which was approximately $5.5 million. The exterior of the building is completed, and we still have to construct and equip the interior. We lease approximately 2,000 square feet of space in the Beijing XinFadi Agricultural Products Wholesale Market in Beijing at an annual rental of $4,700, pursuant to a two-year lease that expires in 2011. The lease provides for a renewal option. We lease approximately 2,700 square feet of space in the Guangdong Yun Cheng Wholesale Market in Guangzhou at an annual rental of $2,000 pursuant to a ten-year lease that expires in 2017. The lease provides for a renewal options. We also lease approximately 8,600 square feet of space for vegetable deep processing in the Guangdong Yun Cheng Wholesale Market in Guangzhou at an annual rental of $24,000 pursuant to an eight-year lease that expires in 2017. The lease provides for a renewal option. 25 As of December 31, 2010, we were a party to 15 land lease and development agreements that we entered into since 2005. These agreements have terms of 25 years and expire at various dates from 2030 to 2034. We paid the rental for the 25 year at inception at a total cost of approximately $25 million. At December 31, 2010, the unamortized portion of these leases was approximately $22 million. The leases cover approximately 16,200 acres in Luochuan County, in Shaanxi, on which Fuji apples are grown, 2,860 acres in the Nanhsa District in Guangzhou, in Guangdong, where emperor bananas are grown, and approximately 1,280 acres in Rongan County, Liuzhou, in Guangxi, where tangerine oranges are grown. This land is leased to farming cooperatives. We lease a farm in Guangzhou at an annual rental of approximately $8,000 pursuant to a 209-month lease that commenced in January 2010 . We are making improvements in the farm so that it can be used as a recreation facility for our employees. As of December 30, 2010, we had made advances of approximately $113,000 for these improvements. We believe that all our properties have been adequately maintained, are generally in good condition and are suitable for our business. In order to expand our business, it will be necessary for us to lease more plantation land, and we plan to lease more plantation land. Item 3. Legal Proceedings We are not aware of any legal proceedings or claims that we believe will have a material adverse affect on our business, financial condition or operating results. Item 4. (Removed and Reserved) PART II