Lease Agreement
EXHIBIT
10.22
CNo..
Lessor
(herein after referred to as Party A) : Zhejiang Fine Steel Structure Co.,
Ltd
Lessee
(hereinafter referred to as Party B) : Harbin
Mege Union Management Co., Ltd.
Under the
Contract Laws of People’s Republic of China and other regulations, Party A and
Party B entered into the agreement about house leasing on the basis of equality,
fair and honesty.
1. The
condition of the rental house
1.1
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Party
A will lease to Party B the house owned by Party A which is located at 000
Xxxxxxx Xxxx, Xxxxxx District, Harbin with 1120.63 square meters of
building area, the usable purpose of the land is for business, the
structure is mixed with brisk. Party A should provide the followings to
Party B:
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The
property certification, the ownership certification, :(certification No .
:)
1.2
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As
the owner of the property, Party A
will building the leasing relationship with Party B. Before entering the
agreement, Party A has noticed Party B that the house is not a
lien.
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2.
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Leasing
Purpose
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2.1
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Party
B promises to Party A that lease the house for the purpose of service
industry, and will comply with the national and Harbin housing using and
management regulations.
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2.2
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Party
B promises to Party A that will not change the above using purpose without
Party A’s written permission.
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3.
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Delivery
Date and Leasing Term
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3.1
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When
Party B receive the first rental amount, and deliver the house after 2
days. The leasing term of the house will be from May 20, 2007 to May 19,
2013.
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3.2
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Party
A has right to withdraw the house after the expiration date, Party B
should give the house back in time . If Party B need to renew the
agreement, should send the written application to Party A 3 months in
advance of the expiration date, and reach into the new agreement, under
the same condition, Party B has the priority chartering
right.
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4.
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Rental
amount, Payment and Term
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4.1
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The
rental amount per day is 0.7823 Yuan RMB, and the yearly rental amount is
320,000.00 Yuan. The amount will not be changed within 5 years . From the
6th
year , the rental amount will increase 10%, i.e. the yearly amount
is 352,000.00 Yuan.
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4.2
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After
5 years of effective date, Party B should pay the whole rental amount for
the first year to Party A; and from the second year, Party B should pay
the whole rental amount for the year before May 1 . If delayed to pay the
rental amount, Party B should pay the fine of 0.5% of the daily rental
amount.
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1
4.3
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Party
B should remit to Party A through the account
Bank:
Industry and Commercial Bank Shaoxing Branch
Account
: Zhejiang Fine Steel Structure Co., Ltd
No.
of account:
xxxxxxxxxxxxxxxxxx
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5.
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Performance
Bond and Other Expenses
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5.1
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When
Party A deliver the house, Party B should Pay 3,000.00 Yuan as the
performance bond to Party A. When the Party A receive the deposit, should
give Party B a receipt. At the expiration date, except the
expenses that Party B should bear, Party A should return the rest part of
performance bond to Party B without any
interest.
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5.2
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During
the leasing term, the warming cost should be borne by Party A, Party B is
responsible for the water, electricity, communication and management
fees.
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5.3
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The
calculation of sharing, payment and time of the fees borne by Party B: the
fees occurred from the delivering date to the expiration date should be
Party B’s responsibility.
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6.
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Using
Requirement and Maintenance
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6.1
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During
the leasing term, Party B should notice Party A to restore the house in
time when the house and equipments were damaged. Party A should restore
the house within 5 days of receiving the notice . Party B could restore
the house instead of Party A if the Maintenance date is delayed , all
costs should be borne by Party A.
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6.2
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During
the leasing term, Party B should use the house reasonably and take good
care of the house and property if the house and equipments damaged in the
result of Party’s incorrect use , Party B should be responsible for the
restoring, if Party B reject to restore the house , Party B could restore
it instead of Party B, all costs should be borne by Part
B.
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6.3
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During
the leasing term , Party B should insure that the house and property are
in the normal and safe stage. Party A should notice Party B 15 days in
advance of inspecting and maintaining the house . During the inspecting
and maintaining, Party B should assist Party A, but should not effect
Party B’s operation.
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6.4
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During
the leasing term, Party B could decorate the inner house , but should
comply with the decoration terms and conditions . All of the costs which
occurred because of the inner decoration should be borne by Party
B. Within a month of the expiration date, Party B could
withdraw all of the equipments which belong to Party B, and be responsible
for all of the costs , and should not effect the using condition , except
otherwise stated.
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7.
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The
stage after returning
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7.1
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Except
Party A accepts Party B to renew the agreement, Party B should give the
house back to Party A within 7 days of the expiration date . Returning the
house delayed without Party A’s permission, Party B should pay daily 1.6
Yuan/square meter to Party A for
occupation.
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7.2
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Party
B should insure that the house is still in the normal use condition after
return the house. Party A could inspect , and settle the
costs.
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2
8.
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Subleasing,
Transferring and Exchanging
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8.1
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Party
B should not release the part or all of the house to the third party
without Party’s written permission. Party B joint venturing with the third
party in the house does not be deemed as releasing, could not ask for
Party A’s permission.
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8.2
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Under
the condition, Party B should enter into the agreement with the lessee
when release the house.
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8.3
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During
the leasing term , Party B should not transfer or exchange the house with
the third party without Party B’s written permission. The transferee
should enter into a changing agreement and continue to perform the
agreement.
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8.4
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During
the leasing term, Party A should notice Party B 3 months in advance if
Party B needs to sell the house. Party B has the priority to purchase the
house under the same condition.
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9.
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The
conditions to terminate the
agreement
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9.1
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The
two parties agree to cease the agreement if the following things happened
during the leasing term.
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9.1.1
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The
land using right withdrew according to the
laws;
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9.1.2
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Expropriate
the house for the public benefit according to the
laws;
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9.1.3
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List
into the house removal for urban construction according to the
laws;
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9.1.4
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The
house is damaged, disappeared or judged to be the dangerous
house.
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If the
agreement is terminated because of the above situation , Party A should return
the rest rental amount within 5 days.
9.2
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If
the following conditions happened , one party could notice the other party
to terminate the agreement. The breaching party should pay for 3 times of
the breaching amount (daily rental amount times 30 days) to the other
party ; the breaching amount is not enough for the losses , the breaching
party should compensate the rest costs of
loss.
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9.2.1
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Party
A does not deliver the house in time , and does not deliver the house
within 15 days after Party B’s
warning.
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9.2.2
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The
house is not comply with the terms in the agreement , therefore , the
purpose of the renting could not be realized , or the house is subject to
deficiency or danger.
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9.2.3
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Party
B changed the purpose without Party A’s permission, and result to the
damages.
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9.2.4
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The
house’s main structure is damaged due to Party B’s
responsibility.
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9.2.5
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Party
B released or transferred or exchanged the house to the third party
without Party’s written permission.
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9.2.6
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Party
B does not pay the rental amount for 15
days.
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3
10
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Breaching
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10.1
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If
the house is deficient when deliver it, Party A should restore the house
within 15 days from the delivering date . Does not restore the house,
Party A should accept to reduce the rental amount and change the relevant
terms.
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10.2
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If
the house is subject to installment, and party A does not notice Party B
in the agreement, Party B is subject to economic losses in the result of
it, Party A should be compensated.
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10.3
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During
the leasing term , Party A does not perform the agreement to restore and
maintain the house in time in result of the damage, and party B or the
third Party is subject to the losses , Party A should compensate for
it.
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10.4
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During
the leasing term , Party B would like to throw the lease and the reason is
not specified the agreement , Party B should pay for the rest rental
amount according to the agreement.
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11
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Others
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11.1
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The
agreement is in effective within 5 days from the signing date . Party A is
responsible for filing in the relevant departments within 5 days , and
responsible for dealing with any matters of changing or terminating within
15 days from changing or terminating
date.
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11.2
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If
there is anything not mentioned in this agreement , the two parties could
negotiate and make an additional agreement which has the same legal
effect. The words filled in the blanks in the agreement and the additional
agreement have the same legal
effects.
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11.3
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When
signing the agreement , the two parties are clear about the each party’s
rights, obligations and duties , and are willing to perform according to
the agreement. If any party breached the agreement, the other party has
right to claim compensation.
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11.4
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If
any disputes arise , the two parties should settle it with negotiation ,
if it can’t be solved by negotiation , the two parties should choose one
of the following method to solve the
disputes:
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11.4.1 | send to the arbitration association |
11.4.2 | appeal to the people’s court |
11.5
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Since
the Party A is not in the same city with the house , Party A designate
Xxxxxxxxx
Xxx
as the agent of performing the agreement, the ID number of the
agent is 000000000000000000; Tel: 00000000000, 0000-0000000-0000. During
Performing the agreement, Party B noticed the Party A’s agent just be
deemed as noticed the Party A.
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11.6
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4
copies of the agreement, and each party holds two copies.
Party
A:
Zhejiang Fine Steel Structure
Co., Ltd (Seal)
Representative: Xxxxxxxxx
Xxx
Signature:
________________________
Company Address:1587 Jianhu Road,
Kexi Industry Zone, Zhejiang Province
Tel: 0000-0000000
Party B:
Harbin Mege Union Management Co.,
Ltd. (Seal)
Representative: Xxxx
Xxx
Signature:
________________________
Company Address: 000 Xxxxxx
Xxxxxx, Xxxxx District, Harbin
Tel: 00000000000
Signing
Date: March 30, 2007
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