Exhibit 10.8
BUILDING FLOOR LEASE
Lessor: Administrative Commission of Gushan Fuxing Investment Zone, Fuzhou City
("First Party")
Lessee: Fuzhou Telelight Communication Co., Ltd. ("Second Party")
First Party and Second Party on the uses of the First Party building floor
leased to Second Party for the setting up of industrial projects [SIC].
Pursuant to the ECONOMIC CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA and
applicable regulations, and in order to make clear the rights and obligations of
lessor and lessee, both parties make this contract following consultations
between them.
I. First Party leases a standard factory building--North Building, 3rd
Floor and one room of the mixed-use Building--located on Fuxing Dadao, North
Section, West Side and having 950 square meters in total building space, to
Second Party for the purpose of setting up high-technology industrial projects.
During the term of the lease, Second Party shall possess only the right to
use and the right to manage the leased building floor area and appurtenant
facilities. It may not sublet same to a third party.
II. Term of the lease: Tentatively set at eight years, i.e. from February
25, 2000 to August 29, 2007. If, upon expiration, Second Party needs to renew
the lease, Second Party shall have, where conditions are otherwise equal at the
time, priority in renewing the lease, but it must sign a contract again.
III. Calculation of rent and method of payment
1. Rent is calculated according to building floor space. The rent for each
square meter of building floor space is nine yuan exactly. Rent is calculated
beginning February 25, 2000. Beginning in the third year (i.e. February 25,
2000) , it shall be based on the price fluctuations in the Fuxing Investment
Zone factory building rental market in the current year (based on the mean
building price in the Fuxing Investment Zone). Each year's building floor rent
shall be set one month prior to the end of the previous year.
2. Rent payment method: The method that First Party employs: Second Party
first pays rent and then uses the building floor. Second Party pays rent four
times per year. Second Party pays rent by the tenth day of the first month of
each quarter each year. It pays the full amount for the current quarter on the
basis of the tax-approved rent invoice issued by First Party, with such payment
being made within seven days.
Three days [SIC] a 5% penalty is paid to First Party. If Second Party is two
months in arrears in the payment of rent, First Party has the right to
unilaterally dissolve this contract. In addition to being obligated to pay rent
due and penalties, Second Party must compensate First Party for losses equal to
three months of rent during that same year.
IV. First Party provides the existing electric power and water supply
facilities, with which the building floor is equipped, for use of Second Party.
Second Party must install water meters and electric meters especially for its
own use. Second Party shall pay electricity and city water charges according to
the collection prices that the power bureau and the water company present to
Second Party. Payment shall be made by the 20th day each month on the basis of
First Party's receipt.
V. During the term of the lease, Second Party shall make appropriate use of
and shall properly manage the building floor and appurtenant facilities that it
is leasing. It shall take care of matters relating to fire fighting and
production safety. In the event of man-made damage to the building floor or
appurtenant facilities, Second Party must restore same to the original condition
or pay compensation according to the set price. If fire fighting activity or a
production accident should occur as a result of negligence, Second Party shall
take responsibility. If the cause was building quality, First Party shall be
responsible.
During the term of the lease, Second Party, for production needs, shall
remodel and install vents and water and drain lines. If it needs to alter the
main structure of the building floor or to build other structures or other
facilities, it shall first notify First Party in writing, gain the written
consent of First Party, and make a contract. Only then may it carry out
construction in accordance with the applicable regulations. Second Party shall
be responsible for necessary expenses and the relevant formalities. Moreover,
after remodeling is completed, the work must comply with fire fighting and
safety regulations and the regulations of the urban development, environmental
protection, and other departments. Second Party shall take responsibility if the
work violates the relevant regulations.
The monthly fee for security guards in the plant and for sanitation is 800
yuan. Payment is made by the 5th day of the second month on the basis of First
Party's receipt.
VI. If Second Party leases the third floor to set up an enterprise, it
must comply with the applicable regulations of Gushan Fuxing Investment Zone.
First Party may assist Second Party in handling the relevant affairs.
VII. Breach of contract:
If, during the term of the lease, Second Party must dissolve this contract
for a particular reason, it must notify First Party in writing six months in
advance. In addition to paying rent for the actual duration of the lease, Second
Party shall pay First Party damages equal to three months rent during that same
year.
If, during the term of the lease, First Party must dissolve this contract
for a particular reason, it must notify Second Party in writing six months in
advance. Moreover, it shall refund to Second Party the balance (pro-rated
according to an eight-year period) of the entire amount of funds that Second
Party paid for finishing work. In addition, compensation to Second Party for
losses arising from relocation shall be discussed separately.
Upon expiration of the lease, Second Party must restore the leased building
floor to its original condition and return it to the possession of First Party.
VIII. After this contract is signed, the monthly rent during the first two
years shall be 10,450 yuan. Within 10 days after Second Party signs this
contract, it shall pay one quarter's rent, 31,350 yuan, to First Party.
IX. In the event of a dispute during the performance hereof, First Party
and Second Party shall promptly negotiate a solution. If the negotiations fail,
both parties may bring a lawsuit to the People's Court having jurisdiction in
Fuzhou.
X. There are five identical originals of this lease. First Party and Second
Party each possess two. The Gushan Legal Services Office puts one on file.
Lessor: Fuzhou Xxxx Xxxx Guang Telecommunications Co., Ltd.
Legal representative: /s/ illegible
March , 2000
Lessee: Fuzhou Telelight Communication Co., Ltd.
Legal representative: /s/ illegible
March , 2000
