Realty Lease Agreement
Party A:
Shenzhen
Baishisha Joint
Stock Co.,
Ltd.
Legal
address: Residents’
Committee Building, Fuyong Subdistrict, Bao’an District,
Shenzhen
Legal Representative: Wen
Xining
Telephone
Number: 00-000-00000000
Party B:
Feigeda Electronic
(SZ) Co., Ltd
Legal
address: __________________________________________________
Legal Representative: Bu
Xxxxx
Telephone
Number: 00-00000000000
Through
negotiation, Party A agrees to lease the following realties to Party B (together
with Party A, the “Parties”): (1) a six-storey plant located at Floor 1 to 6, Building No.
66, Longwang Temple Industrial Area, Baishisha, Fuyong Subdistrict, Bao’an
District, Shenzhen, with an area of 7,800 square meters (the “Plant”); (2) a
seven-storey dormitory located at Building No. 65, Longwang Temple Industrial
Area, Baishisha, Fuyong Subdistrict, Bao’an District, Shenzhen (“Northern
Dormitory”), with an area of 4,000 square meters (excluding the ground-floor
store); (3) a seven-storey building located at Longwang Temple Industrial Area,
Baishisha, Fuyong Subdistrict, Bao’an District, Shenzhen (“Southern Dormitory”,
together with Northern Dormitory, the “Dormitories”) with an area of 3,500
square meters (excluding the ground-floor store); (4) a storey located at a
building, in Longwang Temple Industrial Area, Baishisha, Fuyong Subdistrict,
Bao’an District, Shenzhen (“North Storey”), with an area of 680 square meters
(to be calculated by the actual projected area of the building). The
total area of the Plant and the Dormitories is 15,300 square
meters. Based on the principle of equality and mutual
benefits, the Parties agree as follows:
Article 1 Lease Term
The
lease term is 5 years, commencing from May 1, 2009 and
ending on April 30,
2014.
Article
2 Leasing Price and Other Fees
1. During
the first year, the leasing Price of the Plant and the Dormitories is RMB10 Yuan
per square
meter per
month and the leasing Price of the North Storey is RMB 14 Yuan per square
meter per
month, and the total monthly rental for the Plant, Dormitories and the North
Storey is RMB162,520.00 Yuan. From the third year, the lease price of
the Plant and Dormitories will be XXX 00 Yuan per square per month, and the
lease price of the North Storey will be XXX 00 Yuan per square per month, and
the total monthly rental for the Plant, Dormitories and the North Storey will be
RMB178,500.00 Yuan. In addition, Party B shall pay Party A the plan
management fee RMB1,500 Yuan per month.
2. Upon
the execution of this agreement, Party B shall pay Party A RMB 487,560.00 Yuan,
including deposit RMB 325,040.00 Yuan which is equal to two-month rental and the
rental for the first month RMB 162,520.00. The deposit shall be
refunded to Party B upon the expiration of the agreement; if Party B
unilaterally terminates the agreement during the lease term, the deposit shall
not be refunded to Party B.
Article
3 The Obligation Of Party A
1. Party
A shall install a transformer of 315KVA in the Plant. The cost
arising from the low voltage line(s) other than the transformer shall be borne
by Party B. Party shall pay the electricity fees to the power supply
company for its own consumption of electricity.
2. Party
A shall provide the water facilities for the Plant and the
Dormitories Party B shall pay the water charges and sewage
treatment fees to the water supply company for its own consumption of
water.
3. Party
A shall provide a 2-ton freight elevator for Party B. During the
lease term, Party B shall liable for the maintenance and the relevant fees
(Note: Party B shall repair the elevator or make compensation if there is any
man-made damage to the elevator.) When the agreement is terminated,
Party B shall return the elevator to Party A in good condition.
4. When
the agreement expires, Party B has the first refusal of renewal the agreement
under the same conditions and the Parties shall sign a new agreement for the
renewal.
5. Party
A is responsible for appointing a factory director to assist Party B with the
Plant opening process whose wage shall be paid by Party B.
6. Party
B may have a 30-day term for the decoration of the Plant and the Dormitories,
and Party B is exempted from the rental payment for the decoration
term.
7. If it
is not due to Party B, the Plant and the Dormitories is likely to impair public
security, or the Plant and the Dormitories are damaged during normal use, Party
A shall repair the Plant and the Dormitories at its own cost within seven days
when it is informed by Party B.
8. Party
A shall maintain the public order of the neighborhood of the Plant.
9. During
the lease term hereof, Party A shall not terminate this agreement for any
reason.
10. Where
there is any dispute arising from the Parties hereto, the Parties hereto shall
perform their respective obligations in accordance with this lease agreement
rather than the agreement signed at the competent realty administration
authority.
11. If
Party A decides to build additional stories on the North Storey, Party B shall
be of assistance, however, Party A shall take necessary security measures and
ensure Party B’s access is not blocked.
Article
4 The Obligation Of Party B
1. Party
B shall decorate the Plant at its own cost.
2. Party
B shall take good care of Party A’s properties. Party B shall be
liable for any damages arising from its improper use of the Plant and/or the
Dormitories.
3. Party
B shall periodically pay the authorities fees that are collected by relevant
authorities.
4. Party
B shall pay wages to factory director appointed by Party A at the rate of
RMB2,500 per month.
5. Party
B makes compensation to Party A for any damages to the housing structure due to
Party B’s misuse.
6. Party
B shall handle the Hukou registration and the employment procedures for the
nonnative-resident employees at its own costs.
7. Party
B shall strictly comply with the relevant rules and regulations provided by the
fire control authority of the District or Subdistrict regarding production
safety and escape exit in the leased Plant and Dormitories, and Party A shall
assist with Party A in the procedure. Otherwise, if Party B violates
the relevant rules and regulations, which results in accident or disaster, Party
B shall be liable for all the economic damages and take the legal
responsibility.
8. Party
B shall conduct its operation and dispose pollutants in accordance with
standards provided by local environmental protection department and pay the
sewage costs, and Party A shall assist with Party B in the
procedure.
9. Party
B shall not sublease part of or all of the leased realties to any third party
for any illegal use, otherwise, Party B Party B shall be liable for all the
economic damages and take the legal responsibility.
10. Party
B shall pay the administration fees and stamp duty in connection with the lease
agreement.
11. Party
A is entitled to reclaim the leased realities hereof and terminate this lease
agreement in the event that Party B delays paying the rental and employees’
wages for more than one month.
Article 5 The Commencement Date of Rent
Payment
The
rental payment of the Plant, the Dormitories and North Storey is calculated from
the 1th
of June,2009.
Article 6 Rental Settlement
Party B
shall make rental payments to Party A before the 10th of
every month at the teller office in the Residents' Committee Building which
includes monthly rental, property management fee and the wage of the Factory
director, with a total amount of RMB166,520.00. If Party B delays
payment for over one month, Party B shall pay a late payment charges to Party A
which is equal to 0.3% of the unpaid rental per day; if Party B delays payment
over 40 days, it is deemed that Party B has breached the agreement and Party A
has the right to terminate this agreement and reclaim the Plant and
Dormitories.
Article
7 Other Terms And Conditions
1. Party
A has priority to renew this agreement under the same conditions after the
expiration of this agreement. If Party B does not renew this
agreement, 1) Party B shall not remove the lightings, electrical wires,
distribution cabinet and distribution box installed by Party B; 2) Party B has
the right to remove the air conditioners, production equipments and
office furniture (“Facilities”), or transfer the foresaid Facilities to Party A
with certain costs; 3) the real estate invested by Party B in the
Plant shall belong to Party A; Party B shall repair the facilities in the or
around the Plant if such facilities are damaged, the lease agreement can be
terminated only if Party A has satisfactorily accepted the repair after
inspection.
2. Party
B shall pay the relevant fees every month to Party A and Party A shall provide a
receipt of standard form issued by the competent financial management
authority. If Party B requests Party A to issue invoices, Party B
shall pay the taxes.
3. Party
A has the priority to recycle the industrial waste produced by Party B under the
same conditions.
4.
Matters not mentioned herein，if any，may be
supplemented through negotiation by the Parties hereto. Any Party
hereto shall not breach the agreement upon the due execution. Where
any Party hereto breaches the agreement, the other Party is entitled to
unilaterally terminate the agreement and claim the compensation equal to
three-month rentals from the Party in breach.
5. This
agreement shall come into force upon the due execution of the
Parties. The Parties shall strictly comply with the
agreement.
6. This
agreement is made in duplicate with the same legal effects and each Party holds
one copy.
The
lessor (Party A): Shenzhen Baishisha
Joint Stock Co., Ltd.
Legal
Representative Signature: /s/
Wen Xining
Authorized
agent:
Seal:
____
The
renter (Party B): Feigeda Electronic (SZ) Co.,
Ltd
Legal
Representative Signature: /s/ Bu
Falin
Seal:
_____
Date:
April 15, 2009
