Lease Agreement of Nanyang Base Assets

 

Lease Agreement of Nanyang Base Assets

 

This agreement was entered into in Guangzhou between parties as follows on 24 January 2013:

 

Party A: China Southern Air Holding Company (the “Lessor”)

At:

Legal representative:

 

Party B: China Southern Airlines Company Limited (the “Lessee”)

At:

Legal representative:

 

Whereas, there are development needs of Party B, the parties hereto agree, after amicable consultations, on matters relating to leasing of properties of Party A to Party B as follows:

 

Clause 1Commitments
1.Party A is a validly existing Chinese company licensed by administrative department of business administration authorities under related requirements of laws and regulations of China and the obligation of annual inspection has been performed in compliance with related requirements.
2.Party A lawfully owns the complete legal title of the properties as listed in the annex hereto.
3.Party B is a validly existing Chinese company licensed by administrative department of business administration authorities under related requirements of laws and regulations of China and the obligation of annual inspection has been performed in compliance with related requirements.

 

Clause 2Leasing properties

Party B shall lease from Party A properties as listed in the annex hereto where rentals thereof shall be determined by the parties hereto under a equitable and fair principle not higher than average rental in the same area and lot.

 

Clause 3Term of this agreement

The parties hereto agree that term of the leasing be one year commencing from 1 January 2012 and ending on 31 December 2012 where upon expiry such parties may determine on termination or renewal thereof according to actual situations.

 

1
 

 

Clause 4Rights and obligations
(I)Rights and obligations of Party A
1.The rentals shall be collected in accordance herewith where invoice thereof shall be issued within 15 business days from the date on which rental to be paid by Party B become due;
2.The leasing properties shall be delivered to Party B for its use in a timely manner as stipulated hereunder;
3.Periodic safety inspection of and repair expenses arising from ordinary wear and tear of main structures of the properties as listed in the annex hereto shall be borne by Party A; and
4.Property tax and land use tax on properties as listed in the annex hereto shall be borne by Party A.

 

(II)Rights and obligations of Party B
1.The rentals shall be paid in a timely manner to Party A in accordance herewith quarterly where one-fourth of rentals of the year shall be paid by Party B before the 15th date of the first month of every quarter.
2.Utilities and other expenses related to property management occurring during the term hereof shall be borne by Party B;
3.Party B shall submit declaration of and pay on behalf of Party A property tax and land use tax in accordance with related requirements of local tax authorities which shall be borne and reimbursed by Party A to Party B, settled quarterly and annually respectively, within 15 business days from provision of original of tax payment proof and an asset list included in tax returns; and
4.Such properties, including their ancillary facilities, shall be utilized strictly as use thereof with care and ordinarily and no dangerous materials such as inflammable and explosive articles shall be illegally placed within such properties.

 

Clause 5Transaction cap

The parties hereto agree that rental of 2012 shall be RMB12,441,306, details of which are described in the annex hereto.

 

2
 

 

Clause 6Force majeure
1.Where the parties hereto become unable to perform this agreement due to force majeure, such parties are not liable to such non-performance and this agreement shall be terminated automatically. Where any part hereof become unable to be performed due to the same, obligations under such part on the party to whom the same occurs shall be exempted according to effect of the same, provided that such other part as not affected thereby shall be performed and that no liability of default prior to occurrence of the same shall be exempted.

Force majeure represents objective situations impossible to be foreseen, avoided or overcome, including, without limitation, wars, epidemics, strikes, earthquakes and floods.

2.Any party unable to perform this agreement due to force majeure shall inform the other party in a timely manner within 48 hours therefrom in order to minimize loss to such other party and provide proof thereof within 15 business days, provided that such time limits may be extended according to actual situations if such party fails to do so with reasonable explanation.

 

Clause 7Settlement of disputes

Any dispute arising from entering into or performing this agreement shall be resolved through amicable consultation between the parties hereto and, if cannot be so resolved, may be brought by any party to the People’s court with jurisdiction.

 

Clause 8Miscellaneous
(I)This agreement shall be effective from the date of execution;
(II)Any matter not mentioned herein shall be stipulated in a separate supplemental agreement which shall have the same effect hereas; and
(III)This agreement is of six copies of the same effect, each party shall hold three of which.

 

[seal] [seal]
Party A: China Southern Air Holding Company Party B: China Southern Airlines Company Limited
Legal representative: [s.d.] Legal representative: [s.d.]

 

3
 

 

Rent summary (Nanyang)

 

Rent (dollar)                
Location   Land   Properties   Buildings   Total
Nanyang (Rent of January to September)   2,712,150   453,380   1,710,984   4,876,514
Location   Land   Properties   Buildings   Total
Nanyang (Rent of October to December)   6,250,655   111,030   1,203,107   7,564,792
                 
Total (Rent of 2012)               12,441,306

 

4
 

 

Breakdown of land rent (January to September)

 

No.  Name of Land Parcel 

Lease area

(m2)

   Base rent
(yuan)		   Rent total of
January to
September		 
Nanyang          3,280,000    2,712,150 
1  Transmitting station  20,782.00    48,000    39,690 
2  South near station  2,301.00    5,000    4,134.375 
3  North near station  3,478.00    8,000    6,615 
4  South far station  4,323.00    9,000    7,441.875 
5  Oil truck garage  29,112.00    67,000    55,400.625 
6  Departure and air traffic control building  1,019,730.00    2,353,000    1,945,636.875 
0  Xxxxxxx xxxxxxxx Xxxx  20,962.00    48,000    39,690 
8  Apron expansion  21,308.95    49,000    40,516.875 
0  Xxxxxx xxxxxxx xxxx expansion  165,101.94    380,000    314,212.5 
00  Xxxxx Xxxxxxxx  13,113.40    148,000    122,377.5 
11  Supermarket facade room  9,304.70    105,000    86,821.875 
12  Funding raising facade room  5,450.8    60,000    49,612.5 

 

5
 

 

Breakdown of properties rent (January to September)

 

No.  Properties  Address  Lease area(m2)   Base rent
(yuan)		   Rent total
of January
to September		 
                   
              548,305.12      
1  Transmitting station  Nanyang Airport  298.42    9,638.97    7,970.220011 
2  Far station  Nanyang Airport  74.07    2,392.46    1,978.266189 
3  Lifting platform  Nanyang Airport  73.95    2,388.59    1,975.061222 
4  North near station  Nanyang Airport  89.81    2,900.86    2,398.651093 
5  South near station  Nanyang Airport  82.93    2,678.64    2,211.899623 
6  South far station  Nanyang Airport  237.17    7,660.59    6,311.651183 
7  Oil truck garage  Nanyang Airport  131.67    4,252.94    3,516.650589 
8  Oil depot – Security room  Nanyang Airport  177.19    5,723.24    4,732.401594 
9  Oil depot – Duty room  Nanyang Airport  227.82    7,358.59    6,084.630799 
10  Oil depot – Duty room  Nanyang Airport  261.63    8,450.65    6,987.630392 
11  Oil depot – Duty room  Nanyang Airport  68.34    2,207.38    1,825.228991 
12  Oil depot – Garage  Nanyang Airport  327.44    10,576.31    8,715.287985 

 

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No.  Properties  Address  Lease area(m2)   Base rent
(yuan)		   Rent total
of January
to September		 
                   
13  Oil depot – A room  Nanyang Airport  22.47    725.78    600.1301644 
14  Oil depot – Refueling room  Nanyang Airport  95.76    3,093.05    2,557.564065 
15  Oil depot – Pump room  Nanyang Airport  220.23    7,113.43    5,881.916604 
16  Oil depot – B room  Nanyang Airport  39.69    1,281.99    1,060.043001 
17  Oil depot – Pump room  Nanyang Airport  233.55    7,513.67    6,237.667997 
18  Tool  Nanyang Airport  170.4    5,503.92    4,551.05385 
19  Newly built hanger  Nanyang Airport  1,224    39,535.20    32,690.6685 
00  Xxxxxxxxx xxxxxx  Xxxxxxx Airport  59.49    1,921.53    1,588.862638 
21  Base garage  Nanyang Airport  430.24    13,896.75    11,490.87681 
22  Departure and air traffic control building  Nanyang Airport  5,240.01    169,252.32    139,950.5146 
23  Terminal security room  Nanyang Airport  20.14    650.52    537.9003788 
24  Terminal police station garage  Nanyang Airport  86.58    2,796.53    2,312.384051 
25  Terminal duty room  Nanyang Airport  294.4    9,509.12    7,862.8536 
26  Terminal living quarters  Nanyang Airport  250.5    8,091.15    6,690.369556 
27  Terminal substation  Nanyang Airport  433.56    14,003.99    11,579.54758 

 

7
 

 

No.  Properties  Address  Lease area(m2)   Base rent
(yuan)		   Rent total
of January
to September		 
                   
28  Terminal substation  Nanyang Airport  419.42    13,547.27    11,201.89557 
29  Terminal freight warehouse  Nanyang Airport  264.78    8,552.39    7,071.760789 
30  Terminal boiler room  Nanyang Airport  372.57    12,034.01    9,950.622846 
31  Terminal staff canteen  Nanyang Airport  319.7    10,326.31    8,538.567581 
32  Terminal staff hospital  Nanyang Airport  349.32    11,283.04    9,329.660393 
33  Terminal special garage  Nanyang Airport  527.72    17,045.36    14,094.37874 
34  Terminal water plant duty room  Nanyang Airport  15.8    510.34    421.9873875 
35  Terminal pumping station  Nanyang Airport  40.95    1,322.69    1,093.695159 
36  Terminal deep well pump station  Nanyang Airport  20.5    662.15    547.5152813 
37  Terminal weather building  Nanyang Airport  676.8    21,860.64    18,076.0167 
38  Terminal maintenance workshop  Nanyang Airport  153.54    4,959.34    4,100.755916 
39  Terminal maintenance building  Nanyang Airport  268.54    8,673.84    7,172.183104 
40  Terminal maintenance building  Nanyang Airport  426.4    13,772.72    11,388.31785 
41  Terminal maintenance workshop  Nanyang Airport  206.15    6,658.65    5,505.867084 
42  Terminal maintenance workshop  Nanyang Airport  37.2    1,201.56    993.539925 
43  Terminal maintenance workshop  Nanyang Airport  94.24    3,043.95    2,516.96781 
44  Terminal maintenance workshop  Nanyang Airport  214.67    6,933.84    5,733.419777 

 

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No.  Properties  Address  Lease area(m2)   Base rent
(yuan)		   Rent total
of January
to September		 
                   
45  Terminal fire services tower  Nanyang Airport  155.04    5,007.79    4,140.81801 
46  Terminal fire services dormitory and garage  Nanyang Airport  811.69    26,217.59    21,678.66725 
47  Terminal service duty room  Nanyang Airport  728.91    23,543.79    19,467.77384 

 

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Breakdown of building rent (January to September)

 

No.  Building  Address  Base rent (yuan)   Rent total of
January to
September		 
          2,069,218      
1  39186 m2 Asphalt road  Nanyang Airport   121,671    100,606.7081 
2  Drainage iron pipe  Nanyang Airport   141,494    116,977.8513 
3  Water tower  Nanyang Airport   2,215    1831.528125 
4  Apron contact road  Nanyang Airport   843,335    697,332.6281 
5  Apron electric cable  Nanyang Airport   758    626.77125 
6  Maintenance wall  Nanyang Airport   567    468.838125 
0  Xxxxxxxxxxx xxxx  Xxxxxxx Airport   1,711    1,414.783125 
8  Generating chamber installation  Nanyang Airport   2,887    2,387.188125 
9  Drainage bridge  Nanyang Airport   692    572.1975 
10  Passenger apron installation  Nanyang Airport   1,154    954.21375 
11  Y-7 Apron  Nanyang Airport   484,64    40,073.67 
12  Yun Xx Xxxx Gou  Nanyang Airport   246    203.41125 
13  Apron navigation aids light  Nanyang Airport   3,849    3,182.641875 
14  Y-5 Apron  Nanyang Airport   2,026    1,675.24875 

 

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No.  Building  Address  Base rent (yuan)   Rent total of
January to
September		 
15  Fire services pipe  Nanyang Airport   3,849    3,182.941875 
00  Xxxxxxxx xxxx xxxxx  Xxxxxxx Xxxxxxx   4,667    3,859.025625 
17  Apron expansion  Nanyang Airport   870,849    720,083.2669 
18  Gate renovation of Nanyang Airport  Nanyang Airport   18,784    15,532.02 

 

11
 

 

Breakdown of land rent (October to December)

 

No.  No. of land
title certificate		  Name of
land parcel		  Use  Nature  Area (m2)   Annual rent
(yuan/year)		   Rent of
October
to December		 
                         
Nanyang                          
1  Wan Shi Tu Xxx Xxxx
(2005) No. 02585		  Transmitting station  Civil airport  Transfer  20,782.00    367,978.00    91,994.5 
0  Xxx Xxx Xx Xxx Xxxx
(0000) Xx. 00000		  South near station  Civil airport  Transfer  2,301.00    40,739.00    10,184.75 
0  Xxx Xxx Xx Xxx Xxxx
(0000) Xx. 00000		  North near station  Civil airport  Transfer  3,478.00    61,580.00    15,395 
4  Wan Shi Tu Xxx Xxxx
(2005) No. 02581		  South far station  Civil airport  Transfer  4,323.00    76,544.00    19,136 
0  Xxx Xxx Xx Xxx Xxxx
(0000) Xx. 00000		  Oil truck garage  Civil airport  Transfer  29,112.00    515,467.00    128,866.75 
0  Xxx Xxx Xx Xxx Xxxx
(0000) Xx. 00000		  Departure andair trafficcontrol building (airport site)  Civil airport  Transfer  1,019,730.00    17,133,763.00    4,283,440.75 
7  Wan Qu Xxx Xxxx
(2003) Zi Xx. 00		  Xxxxxxx xxxxxxxx xxxx  Civil airport  Authorized operation  20,962.00    370,778.00    92,694.5 
8  Wan Qu Xxx Xxxx
(2003) Zi No. 36		  Apron expansion  Civil airport  Authorized operation  21,308.95    356,538.00    89,134.5 
9  Wan Qu Xxx Xxxx
(2003) Zi Xx. 00		  Xxxxxx xxxxxxx xxxx expansion  Civil airport  Authorized operation  165,101.94    2,762,456.00    690,614 
10  Wan Shi Tu Xxx Xxxx
(2005) No. 02587		  South terminal  Education and residentialland  Transfer  13,113.40    1,560,675.00    390,168.75 
00  Xxx Xxx Xx Xxx Xxxx
(0000) Xx. 00000		  Supermarket facade room  (Renmin Bei Road convoy area and old cadresfloor)  Office and residential  Allocate  9,304.70    1,107,382.00    276,845.5 
00  Xxx Xxx Xx Xxx Xxxx
(0000) Xx. 00000		  Funding raising facade room and old cadres floor     Allocate  5,450.80    648,720.00    162,180 
                           
Total                   25,002,620.00    6,250,655 

 

12
 

 

Breakdown of properties rent (October to December)

 

No.  Title
certificate No.		  Name of
building		  Structure  Completion
Date		  Measurement
units		  Construction
Area		   Annual rent
(yuan/year)		   Rent of
October to
December		 
                            
Nanyang                             
1  Wan Xxx Xxxx Zi Xx. 000000  Xxxxxxxx xxxx far station  Brick and concrete  1993-1-1  m2  74.07    4,126.00    1031.5 
2  Wan Xxx Xxxx Zi No. 901015  South near station  Brick and concrete  1993-1-1  m2  82.93    4,620.00    1,155 
3  Wan Xxx Xxxx Zi Xx. 000000  Xxxxx xxx xxxxxxx  Brick and concrete  1993-1-1  m2  237.17    13,212.00    3,303 
4  Wan Xxx Xxxx Zi No. 901005  New air material depot  Framework  1994-12-1  m2  1,224    100,042.00    25,010.5 
5  Wan Xxx Xxxx Zi No. 901006  Air traffic control building  Framework  1993-1-1  m2  2,083.04    194,620.00    48,655 
6  Wan Xxx Xxxx Zi No. 901006  Terminal duty room  Brick and concrete  1993-1-1  m2  294.4    15,967.00    3,991.75 
7  Wan Xxx Xxxx Zi No. 901010  Terminal water plantduty room  Brick and concrete  1993-1-1  m2  15.8    881.00    220.25 
8  Wan Xxx Xxxx Zi No. 901010  Terminal pumping station  Brick and concrete  1993-1-1  m2  40.95    2,281.00    570.25 
9  Wan Xxx Xxxx Zi No. 901010  Terminal deep well pump station  Brick and concrete  1993-1-1  m2  20.5    1,430.00    357.5 
10  Wan Xxx Xxxx Zi No. 901010  Terminal maintenance workshop  Brick and concrete  1993-1-1  m2  153.54    8,537.00    2,134.25 
00  Xxx Xxx Xxxx Xx Xx. 000000  Terminal maintenance building 2  Brick and concrete  1993-1-1  m2  426.4    23,126.00    5,781.5 
00  Xxx Xxx Xxxx Xx Xx. 000000  Terminal maintenance workshop 2  Brick and concrete  1993-1-1  m2  206.15    11,462.00    2,865.5 
00  Xxx Xxx Xxxx Xx Xx. 000000  Terminal maintenance workshop 5  Brick and concrete  1993-1-1  m2  214.67    11,936.00    2,984 
00  Xxx Xxx Xxxx Xx Xx. 000000  Terminal fire services tower  Brick and concrete  1993-1-1  m2  155.04    7,862.00    1,965.5 
00  Xxx Xxx Xxxx Xx Xx. 000000  Terminal fire services dormitory and garage  Brick and concrete  1993-1-1  m2  811.69    44,021.00    11,005.25 
Total                 6,040.35    444,123.00      

 

13
 

 

Breakdown of buildings rent (October to December)

 

No.  Name  Structure  Completion
date		  Length
(m)		   Width
(m)		   Height/
depth (m)		   Measurement
units		  Area (m2)
or Volume
(m3)		   Annual rent
(yuan/year)		   Rent of
October to
December		 
Nanyang                                      
1  Runway  Brick surface  1993-1-1  2,300   45   0.32   m2  103,500.00    3,478,787.00    869,696.75 
0  Xxxxxxx xxxx Xx. 0  Brick surface  1993-1-1  140   18   0.32   m2  2,520.00    74,794.00    18,698.50 
3  Passenger apron  Brick surface  1993-1-1  240   100   0.32   m2  24,000.00    712,327.00    178,081.75 
4  Common apron  Brick surface  1993-1-1  328   55   0.22   m2  18,040.00    535,433.00    133,858.25 
5        2004-6-30  12.7       2.55   m2  32.385    8,320.00    2,080.00 
6  Security room  Brick and concrete  2004-6-30  9.9   3.9       m2  38.61    2,767.00    691.75 
                                       
Total                               4,812,428.00    1,203,107.00 

 

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Filed: April 26th, 2013
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