EXHIBIT 4.11
TRANSLATION
TENANCY AGREEMENT
Through the sufficient negotiation of Party A and Party B and according to
the principles of equal and mutual benefit, the Parties agree to sign the
following terms and conditions: -
1. THE PARTIES
1. Shenzhen Shekou NanShui Enterprises Shareholding Co. Ltd.
(hereinafter called Party A)
Address : 2/F., NanShui Building, Shekou, Shenzhen
Tel.: 0000000
2. Jetcrown Industrial (Shenzhen) Limited
(hereinafter called Party B)
Address:
Tel:
2. HIRE OF PROPERTY
1. Party A owns the property situate at 0/X-0/X, Xxxxx X, Xxxx Xxxxxxx
Xxxxxxxxxx Xxxxxx, Shekou. The construction area is 2,160.00 square
meters. Now it is rented to Party B for use as FACTORY.
2. Tenancy Period: The terms of the tenancy shall be from May 1, 2001
to May 1, 2003.
3. The monthly rental paid by Party B to Party A is calculated at
DOLLARS FIFTEEN AND CENTS FIFTY RENMINBI (RMB 15.50). The total
monthly rental is DOLLARS THIRTY THREE THOUSAND FOUR HUNDRED EIGHTY
RENMINBI (RMB 33,480.00). Party B should pay the rental before
15th of each month, otherwise, it will be treated as breach of
contract.
4. Through negotiations between Party A and Party B, they can make
proper adjustment either upward or downward on the rental according
to the market conditions by each two years.
5. Factory area is calculated according to the construction area. After
signing the agreement by both parties, Party B should be given time
for renovation works.
6. The property can be used as processing factory. Party B can carry
out interior renovation under the condition that the construction
structure of the main body will not be affected. Party B should bear
the renovation cost. The renovation draft should get Party A's
checking and approval. If not, when Party A finds that there is any
inappropriate alterations and renovations, Party A has the right to
remove these works and such action will be treated as breach of
contract.
7. During the tenancy period, if the property right of the said
property has changed which affects the production and running
business of Party B, Party A should compensate the renovation cost
and other losses to Party B. The compensation should be agreed by
both parties or they will authorize the relevant department to
calculate and then agreed by both parties. Fee for authorization
should be borne by both parties equally. On the other hand, if Party
B will have a joint-venture with third party or he wants to sublet
part of the unused area, he should get the approval of Party A. The
rental calculation should be negotiated by both parties.
8. The water and electricity charges of the factory will be calculated
according to the standard rate in the industrial estate. Regarding
the management fee of the factory, the payment should be made
according to the relevant regulations of the management office
assigned by the Party A.
9. If there shall be an occurrence of unpredicted happenings (natural
disasters; huge loss), Party B is unable to continue the
production, and he proposed to terminate the contract, Party B
should give one month notice to Party A and he should settle all the
rentals due.
3. RESPONSIBILITIES OF BOTH PARTIES
1. Party A held responsible to provide electricity source. Party A will
transmit electricity to the ground floor electricity meter room of
the factory. Party B will be responsible to transmit the electricity
from electricity meter room to the low pressure portion of the
factory and interior circuit renovation. During the production
process, if Party B finds that the electricity supply is
insufficient, he can apply to change but he is responsible to pay
the expenses. On the other hand, Party A is responsible to provide
water supply to the factory. Regarding the water charges and water
supply facilities inside the factory should be borne by Party B.
2. During the tenancy period, Party A will provide a lift for
transporting goods for Party B and other tenants' use. The charges
for using the lift will be shared out by all the tenants according
to the method set by Party A.
3. Party B should produce its products in a civilized manner and he
should manage the factory area in clean and sanitary condition. He
should also take action to prevent pollution and comply with the
relevant management regulations of the industrial estate. During the
tenancy period, because of the production needs, Party B intends to
put some additions or alterations, which are classified as polluted
items, he should then report to Party A and the relevant management
office of the industrial estate. After getting the approval of Party
A and the management office, Party B can carry out the works and he
should take precautions so as to comply with the requirements of
pollution prevention and sewage.
4. Party B is responsible to repair or renovate the property and water
and electricity facilities, which is damaged due to Party B's use of
property. If the damage is due to the quality of the property
itself, Party A held responsible to renovate it.
5. If Party B requires to renovate or alter the property, which will
affect the property's structure, he should get the approval of Party
A before the commencement of work.
6. During the tenancy period, Party B should strictly comply with the
relevant regulations set in the "Peoples Republic of China Fire
Prevention Ordinance" announced in May 13, 1984 and the "Peoples
Republic of China Fire Prevention Practical Guidelines" announced
by Public Safety Department in March 16, 1987. Party B should take
the initiative to carry out the fire prevention works of the
property. He should be sensitive and strictly prevent the occurrence
of fire. Otherwise, all losses arising from this will be borne by
Party B.
7. During the tenancy period, Party B should make sure the fire
prevention passage is free of obstacles. If there is any
inappropriate additions, demolitions or renovations and take
possession of fire prevention passage, damage the fire prevention
facilities, Party A and the relevant department has the right to xxx
Party B to take the liabilities and they can order Party B to
renovate the same before time limit set by them. Party B should
handle the relevant insurance matters.
4. OBLIGATIONS IF BREACH OF CONTRACT
1. If either party in breach of contract, he is responsible to
compensate the loss of the other party. If Party B owes more than
one month rental, Party A has the right to stop the water and
electricity supply until Party B settle all the debts. If Party B
owes more than three month's rental will be automatically treated as
termination of the contract. Party A has the right to order Party B
to move out within five days and Party B should settle all the
overdue rentals and other water, electricity charges and management
fees.
2. Party B cannot pay the rental on time because of insufficient fund,
he should report to Party A in writing and get his agreement. If the
rental cannot be paid on time, no matter Party A agrees or not, the
delay charges will be calculated on daily basis according to the
current bank interest rate.
3. If Party B cannot pay the rental, electricity charges and management
fees on time, and after Party A requests Party B to pay, no matter
in any form, for three times and Party B still owes the payment,
Party A has the right to stop the electricity supply. Party B cannot
dispute this.
5. SURRENDER OR RENEWAL AND CLEARING
1. Upon the expiry of the contract, Party A can consider to give the
priority to rent the property to Party B under the same conditions
made by the others. If Party B wants to renew the contract, he
should notify Party A two months before the expiry of the contract
and then signed a new contract. The guarantee sum will be adjusted.
2. Upon the expiry of the contract or termination of the contract,
Party B should settle all the rental in the same month. And he
should pay the rental for the period during which he remove the
facilities both inside and outside the property. The guarantee sum
paid by Party B when signing the contract cannot be used to offset
the rental and it can be cleared only after Party B handed over the
property.
3. Party B can move out only after he paid up all the rental. All the
facilities both inside and outside the property, which belongs to
Party B should be demolished by Party B within a time limit set by
Party A and restore the property into an original state. This
includes interior facilities installation spot, such as the original
heat prevention cover around the air-conditioner on the roof; the
air-conditioning tube and opening outside the wall; the factory
board, notice board of Party B, the windows installed by Party B,
and the public use area added by Party B. Party A will check and
certify the work. If Party B moves out before settle all the debts,
Party A has the right to block the factory and lock the door.
4. Before Party B moves out and certification by Party A, Party B
should provide the receipts of water and electricity charges and the
management fees charged by the management office of the industrial
estate; and the receipt of lift use charges. Party B should handle
the matters of stop water and electricity supply.
5. After signing the contract and it takes effect, Party B wants to
terminate the contract because of some reasons, Party A has the
right to retain the guarantee sum paid by Party B.
6. Before the expiry of the contract or Party B wants to terminate the
contract in the course of the contract, Party B is responsible to
compensate Party A all the losses arising from such termination.
6. APPENDIX
1. If there is anything that is not good arising through fulfillment,
the parties can amend or make any supplement after negotiation. If
there shall be no agreement made in negotiation, it will be executed
according to the original agreement temporarily. The matter in
dispute can apply the arbitration of the Contract department of
Shekou or can be judged by the Peoples' Court of Shekou. The final
conclusion of the matter in dispute will be treated as the amendment
or additions of this contract.
2. After signing the contract, the guarantee sum paid by Party B will
remain the same.
3. This contract is made in two copies, each party will take one copy
and has the equal validity. This contract will takes effect after
signed by both parties.
Party A: Shenzhen Shekou NanShui Party B: Jetcrown Industrial
Enterprises Shareholding Co. Ltd. (Shenzhen) Limited
Signature of the Signature of the
representative: (Signed) representative: (Signed)
Chop of Shenzhen Shekou NanShui Chop of Jetcrown Industrial
Enterprises Shareholding Co. Ltd. (Shenzhen) Limited
April 25, 2001 April 25, 2001
