Exhibit 10.16
Lease Agreement
This Lease is made by and between LESSOR : Lu, Tsong-Lian [ ][ ][ ][ ][ ]
(hereinafter referred to as "Party A") and LESSEE : Xxxx, Xx-Xxxx (hereinafter
referred to as "Party B") and Party B's Guarantor : (Intentionally Blank)
(hereinafter referred to as "Party C") for the lease of premises hereunder. Both
parties agree to abide by the terms and conditions set forth as follows:
1. Premises under the Lease : Party A hereby leases the premises located at
0xx Xxxxx, Xx. 000, Xxxxxxxxx Xxxx, Xxxxxxxx Xxxx, Xxxxxx Xxxxxx (the front
section of premises is about 150 pings, but the parking space of B2 is not
included) under the Lease.
2. The Term of the Lease : The term of the Lease shall be TEN years,
commencing from June 10th 1997 to June 9th, 2007.
3. The monthly rental : NT$85,000(EIGHTY-FIVE THOUSAND New Taiwan Dollars)
(with a receipt originally issued for the payment of the rental by Party A)
shall be paid by Party B without delay or rejection in any circumstances
(the aforesaid rental is exclusive of electricity and water charges).
4. The rental shall be paid before the 10th of each month. The rental shall be
paid basing on one month period, Party B shall not delay in paying any
rental due in any excuse.
5. Party B shall pay a rental deposit of NT$ 300,000 (THREE HUNDRED THOUSAND
New Taiwan Dollars) to Party A upon signing of this Lease. The said rental
deposit shall be returned to Party B without interest upon expiration of
this Lease, when Party B does not request for a lease renewal and vacates
and surrenders the Premises to Party A.
6. Upon expiration of this Lease when no renewal is agreed by Party A, Party B
shall restore the Premises to the original condition thereupon, vacate and
surrender the Premises to Party A without making any excuse or claiming any
right. In case the Premises shall be surrendered to Party A after delays,
Party B shall be liable for a default penalty equivalent to 500% of the
rental on a monthly basis until the date of surrender of the Premises, to
which Party B and Party C shall have no objection.
7. During the term of this Lease before its expiration, in the event that
Party B desires to move out of the Premises, Party B shall not request any
rental refund, moving costs or other royalties under other denominations
from Party A, and Party B shall unconditionally restore the Premises to the
original condition and return the Premises to Party A without objection.
8. Prior to consent by Party A during the term of this Lease, Party B shall
not, in whole or in part, have the Premises subleased, transferred,
mortgaged to any third party, or in any other way provided for use by any
third party.
9. Party B may make alternations of partitions and/or facilities in the
Premises as Party B deems necessary; construction work can only begin upon
consent given by Party A and shall not damage the main structure and the
facilities of the building. Upon expiration of the terms of this Lease,
Party B shall be responsible for the restoration of the Premises.
10. Party B shall not use the Premises for any illegal use, nor for storing
hazardous articles that will cause public danger.
11. Party B shall use the Premises with the degree of care of a responsible
administrator. If the damage or destruction is made by any personal
factors, Party B shall be responsible for the reparation. If the Premises
provided by Party A are damaged or destroyed due to act of God or any other
force majeure, or due to normal wear and tear, Party A shall be responsible
for the reparation.
12. In the event violations of any provisions of this Lease or the damage to
Party A are due to Party B's fault, Party B hereby shall be fully
responsible for compensating such damage or loss. Party B shall pay for
Party A's court costs and attorney's fees in the event that the court
action is instituted.
13. In the event that Party B violates any provisions of this Lease or causes
damages to the Premises, Party C shall be jointly liable for the loss Party
A shall incur and abandon the right of counteraction voluntarily.
14. Parties A, B and C shall observe and abide by the provisions of this Lease,
in the event that any provision thereof is violated, Party A may terminate
this Lease thereupon, thus Party A shall in no circumstances have any
concern with the loss to Party B.
15. Stamp duties are borne by both Parties, respectively. All taxes relating to
the Premises shall be borne by Party A; whereas the expenses involved in
the water supply, electricity and other business operations of Party B
shall be borne by Party B.
16. In the event that the house tax and income tax owing to the leased Premises
are heightened due to the leased Premises by Party B, Party B shall bear
the difference incurred therefrom without objection.
17. Any article or furniture left inside the Premises, upon expiration of this
Lease after Party B vacates the Premises, shall be deemed to be abandoned
at the disposal of Party A as waste, to which Party B shall have no
objection.
18. The rental tax payable shall be borne by Party A/Party B to the tax
collection office upon receiving tax statement(s).
19. In the event that Party B desires, during the period of this Lease, to
terminate this Lease, a written notice shall be given to Party A at least
three months in advance; otherwise Party B shall pay to Party A a penalty
equivalent to three months of rent.
20. During the term of this Lease, both Parties agree to adjust the rental by
adding NT$5,000(each month) to the rental of the preceding year from the
third year to the fifth year of the Lease term. Both Parties agree that the
rental at the seventh and the ninth period of the Lease term shall be
adjusted. Both parties further agree that the rental, effective from the
seventh year of the Lease term, shall not be adjusted if the Lease
continues over ten years.
Appendix : the rental shall be NT$90,000 at the third year of the Lease
term and the rental shall be NT$95,000 at the fifth year of the Lease term.
21. The administration fee of the Premises (for a total of 150 pings) shall be
borne by Party B.
22. Party B shall be responsible for the air-conditioning equipment
maintenance.
23. The income tax owing to the leased Premises included in the rent shall be
borne by Party B. Both parties agree that declared monthly rental shall be
NT$50,000 in total. Appendix : 1) Party B shall be transferred to Kid
Castle Internet Technology Corporation effective from December 10th, 2002;
2) The income tax owing to the leased Premises included in the rent shall
be borne by Party B. Both parties agree that declared monthly
rental shall be amended to be NT$95,000(exclusive of value added tax).
In witness whereof both Parties have hereunto signed the Lease, which is made in
duplicate; each party bears one to refer.
The Parties :
Lessor (Party A) : Lu, Tsong-Lian([ ][ ][ ])
ID No. : A102405853
Address : 0xx Xxxxx, Xx. , Xxxxxx Xxxx
Lessee (Party B) : Kid Castle Internet Technology Corporation
ID No. : (Intentionally Blank)
Address : 0xx Xxxxx, Xx. 000, Xxxx-Xxxxx Xxxx, Xxxxxxxx Xxxx,
Xxxxxx Xxxxxx
