Land Lease Agreement
Exhibit
99.1
Party
A: (Lessor) Qingdao Sinogas General Machinery Co., Ltd
Party
B: (Xxxxxx) Qingdao Mingchen Real Estate Co., Ltd
Through
friendly consultation, Party A and Party B come to the following agreement
that
Party A leases the land located at Xx.00 Xxxxxx Xxxx, Xxxxxx Xxxxxxxx, Xxxxxxx
Xxxx to Party B:
1.
General Situation of the Land:
1.1
Location and Area: The land is located at Xx.00 Xxxxxx Xxxx, Xxxxxx District,
Qingdao City, the factory area is 35737.72m2,
and the
construction area is 14796.43m2.
1.2
Surrounding:
East:
Jinhuayuan Residential Area, Qingdao Paperboard Factory
South:
Jinhua Road
West:
Cangkou Garage, Jinhua Branch Road
North:
Dormitory of Qingdao Textile Machinery Factory
1.3
Property of the Land: Transferable Industrial Land
2.
Real
Estate Ownership Certificate:
Party
A
acquired the Real Estate Ownership Certificate issued by the People’s Government
of Qingdao City on April 9, 2007 after being approved by Land Resource and
House
Ownership Transaction Center of Qingdao City, fulfilling relevant procedures
regulated by the Temporary Rules on Urban Land Use Right Transfer of the
People’s Republic of China, and fully paying relevant taxes and
charges.
3.
Grade
and Use Term of the Land:
The
grade
of the land is Qingdao Urban Industrial Grade III, and the use term is 50
years.
4.
Lease
Term and Price:
4.1
Lease
Term: Party A agrees to lease the land to Party B for the term of 3 years from
January 2008 to December 2010.
4.2
Price: The price is CNY 40 million/year. The annual rent is divided into
quarters, and Party B pays CNY CNY 10million to Party A at the end of each
quarter.
5.
Promises:
5.1
Party
A
promises to start the move upon the first day of the lease term in January
2008,
and completely move all the equipments and attaching facilities on the land
before September 30, 2008. The concrete arrangement is that the raw material
storage and the east workshop within the south wall shall be completely moved
before March 31, 2008; the mechanical processing workshop shall be completely
moved before April 30, 2008; the gas device workshop shall be completely moved
before June 30, 2008; the technical quality building at north area, the
trailer/gas bottle assembly workshop, product inspection workshop and compressor
workshop, etc. shall be completely moved before September 30, 2008.
5.2
Party
B
promises to actively assist Party A on various affairs, and pay the stipulated
rent seasonally from January 2008.
6.
Other
Stipulations:
Through
friendly consultation, Party A and Party B stipulates that if Party A decides
to
transfer the use right of the land within the lease term, Party A shall notify
Party B at least 3 months ahead of schedule, and Party B shall have the priority
to buy the use right of the land. Party A shall assist Party B to fulfill
relevant procedures according to relevant regulations to acquire the valid
use
right of the land.
7.
Breaching Liability:
7.1
If
Party
A fails to lease the land to Party B on the stipulated date and completely
move
all the equipments and attaching facilities, which may influence the prophase
project of Party B, Party A shall pay compensations to Party B for each delayed
day according to the current banking loan interest rate, and the compensations
for more than 30 delayed days shall be doubled.
-2-
7.2
If
Party
B fails to pay the stipulated rent to Party A on schedule, Party B shall pay
compensations to Party A for each delayed day according to the current banking
loan interest rate, and the compensations for more than 30 delayed days shall
be
doubled.
8.
Settlement of Disputes:
The
disputes arising from fulfillment of this agreement shall be settled through
friendly consultation of both parties, and if no settlement can be reached,
the
following 8.1 shall be applied:
8.1
Applying
arbitration from local arbitration committee;
8.2
Applying
litigation from the People’s Court.
9.
This
agreement shall come into force after being signed and sealed by both
parties.
10.
This
agreement is in 2 original copies with the same force, and each parties shall
keep one of them.
11.
Signing
Place: Qingdao, China
-3-
(No
text on this page)
Party
A:
Qingdao Sinogas General Machinery Co., Ltd
Seal
by
Qingdao Sinogas General Machinery Co., Ltd
Legal
Representative:
Xx
Xxxxx
March
1,
2008
Party
B:
Qingdao Mingchen Real Estate Co., Ltd
Seal
by
Qingdao Mingchen Real Estate Co., Ltd
Legal
Representative:
Huaiqian
Bie
March
1,
2008
-4-
