Contract No: WJ-002
EXHIBIT
4.12
Longcheng
Industrial Area Common Property Tenancy Contract
Contract No: | WJ-002 |
Lessor (Party A): | Shenzhen Land & Sun Industrial & Trade Co., Ltd. |
Lessee(Party B): | China Bao An Long Cheng Hi-Lite Electronic
Factory, Shenzhen Long
Cheng
Industrial Co., Ltd Plastic Metal Fty, Shenzhen Long Cheng Nissin
Precision
Metal Plastic Factory
|
Place: | Shenzhen City, Longhua Zhen |
Date: | 4th July, 2003 |
In
accordance with The Contract Law of the People’s Republic of China and the
relevant regulations, for the purpose of clarifying the rights and duties of
the
lessor and lessee, after negotiation, both parties have come to an agreement
and
this contract is made.
Article
One: Name
and Area (by construction floor area) of the Leased
Property:
Party
A
provides 30,524.45 square meters factory and 7,282.6 square meters dormitory,
the total construction area is 37,807.05 square meters and land 1,771.66 square
meters (refer attached sheet)
Article
Two: Payment
of Rent and Other Expenses
Party
B
shall pay the rent and management fee in the amount of Rmb418,120.98 to party
A
every month. The rent shall be settled every month. Party B shall pay the rent
of the month before the 10th
day of
the month by cash or by transferring accounts to Party A or by remittance to
Party’s account. Rental fee will be increased by 1% per year.
Article
Three: Deposit
Party
B
shall pay two month’s deposit of rent and management fee in the amount of
Rmb836,241.96 to party A. After deducting any unpaid rent and renovation fee
from the deposit, Party A shall return the balance to party B.
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Article
Four: Term
of Tenancy
The
term
of this lease is 5 years, starting March 1st,
2004 to
February 28th,
2009
with effect on March 1st,
2004.
Article
Five: Maintenance
of the leased property during the terms of the lease
During
the terms of this contract, with the approval of Party A to alter the structure
of the leased property, Party B shall be responsible the cost of the
alternation. It is the responsibility of Party A to maintain the leased property
in good condition. Party B is responsible for the maintenance cost of the leased
property due to natural damage.
The
terms
of maintaining the leased property:
1. |
The
main structure of the leased property should be kept in good conditions.
For any change of the structure of the leased property, Party B should
get
the approval from Party A.
|
2. |
The
leased property and all accessory facilities cannot be changed and
damaged.
|
3. |
The
doors and glass should be maintained in good conditions. The windows
should not be painted by any colour paint.
|
4. |
To
ensure the supply of water and electricity is sufficient for the
leased
property. The drainage system and the fire exit should not be
blocked.
|
Article
Six: Duties
for both Party A and Party B:
Party
A’s
duties:
1. |
To
deliver the factory, dormitory, apartments, and canteen to Party
B as
scheduled and be responsible for the water supply, road access, and
electricity supply .
|
2. |
To
assist Party B in handling the formalities of obtaining business
license,
tax registration (all necessary expense to be borne by Party
B)
|
3. |
During
the term of this contract, Party A shall use its best endevaours
to assist
Party B in resolving some difficulties in the actual
operations.
|
4. |
To
guarantee the safety from fire, the good hygienic condition of the
environment and deal with the complaints
promptly.
|
2
Party
B’s
Duties:
1. |
To
pay the rent and other related expense as
scheduled.
|
2. |
To
be responsible for the water, electricity and other charges for the
leased
factory, apartments, canteen and dormitory (including public facilities
such as kitchen, etc.) Party B shall also be liable to the maintenance
of
the leased factory, dormitory, apartments, canteen, kitchen and other
facilities during the period of tenancy (Party A can provide services
for
consideration)
|
3. |
Party
B shall, during the term of this lease, comply with the relevant
laws,
orders of China and the relevant regulations and shall obey the unified
management rules and regulations of the industrial area. Shall not
conduct
any activities in violation of the laws, damaging the public interests
or
changing the contents stipulated in this
contract.
|
4. |
Not
to sub-lease the leased factory, apartments, dormitory or canteen
to a
third party operator.
|
5. |
Factory
owners shall designate a person to be responsible for fire prevention
and
shall establish a fire prevention team of 5-7 persons, install fire
fighting equipment in the factory as required by the regulations.
Fire
exits of the factory and dormitory shall not be blocked and offenders
of
this rule will be dealt with as offenders of the fire prevention
regulations. The fixed fire fighting equipment, water tank, factory
owners
shall not install iron door in the leased factory or dormitory, use
the
water in the fire-fighting water tank and the fire hydrant improperly
such
as to clean the floor. Offenders shall be fined and shall be dealt
with
according to the fire prevention
regulations.
|
6. |
Party
B shall not, during the term of this lease affect the normal business
of
other factory owners and people when using the public facilities
and
common areas; and shall educate the staff to protect the public property
and pay compensation according to price if
damaged.
|
7. |
If
Party B alters the leased factory, dormitory, canteen, kitchen and
other
building structure and facilities without the prior consent of Part
A,
Party B shall pay Party A a compensation equivalent to 100% of the
value
of the altered facilities.
|
If
Party
B is seriously in breach of sub-articles 1,3,4,7, of Article Six (Party B’s
duties), Party A is entitled to dissolve this tenancy relationship, terminate
this tenancy contract, and repossess the property. Party B’s security deposit
shall be forfeited by Party A for no consideration. Party B shall bear all
the
consequences arising there from.
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If
Party
A is seriously in breach of its duties under Article Six (Part A’s duties) and
does not deal with in promptly, Party B is entitled to investigate and affix
responsibility.
Article
Seven: Liabilities
of Breach of Contract
Liabilities
of Party A for breach of this tenancy contract:
1. |
Fail
to deliver possession of the leased property to the lessee as scheduled
in
contract.
|
2. |
Fail
to provide the relevant equipment to lessee as scheduled in
contract.
|
Liabilities
of Party B for breach of this tenancy contract:
1. |
To
be responsible for the necessary repair or compensation for damage
to the
leased property due to the improper use or maintenance by the
lessee.
|
2. |
To
be responsible for the compensation of all losses arising from the
unauthorized alterations of the leased property and
equipment.
|
3. |
Fail
to return the leased property according to schedule after terminating
the
contract. Apart from the rent payable, the lessee shall pay the
contractual penalty. Penalty for every day of delay is 0.1% of the
monthly
rent with a maximum delay of 30 days.
|
4. |
Fail
to pay the rent and expenses as scheduled. Unless paid on or before
the
due date, penalty shall be calculated according to the total outstanding
amount owed by the lessee, with 0.1% of the total overdue amount
per day
as the overdue penalty.
|
Calculating
method:
Total
amount of the overdue penalty =
|
total amount of rent and expense per month x No. of days overdue x 0.1% |
Party
A
has the right to take the following actions if the Party B has breached the
contract according to the situation:
1. |
Impose
a fine of two month’s rent and expense as the penalty for breach of
contract;
|
2. |
Order
the lessee to move out and surrender the
factory;
|
3. |
If
Party B fails to pay the rent and expense for 2 months, Party A is
entitled to take legal action against Party B and claims back the
entire
unpaid fees.
|
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Article
Eight: Exemption
Provision
Party
B
shall not be liable for any repairs or compensations to Party A if the damages
or losses of the leased property are caused by the force majeure. However,
Party
B shall report and explain the situation to Party A and give the legal documents
from the relevant departments to Party A if necessary.
Article
Nine: Dispute
Resolution
If
a
dispute arises during the performance of this contract, both parties shall
resolve the dispute through consultation. If the dispute cannot be resolved
through consultation, the dispute shall be submitted to the authority in charge
of this contract for arbitration or to a People’s Court with competent
jurisdiction for adjudication.
Article
Ten: Other
matters
1. |
During
the term of this contract, if any party proposes to terminate this
contract before its expiration, that party shall give a written report
to
the other party 6 months
in advance. If both parties agree to the termination after negotiation,
this contract may be terminated. The party proposing to terminate
this
contact shall pay the other party 3 months’
rent as penalty for breach of
contract.
|
2. |
If
Party B does not extend this contract after its expiration, Party
B shall
repair and restore the leased property according to the relevant
standards
and pay all the fees. Then Party B shall return all the security
deposits
to Party B once and for all. If the repair is done by Party A, the
costs
of repair shall be deducted from the
deposits.
|
3. |
If
the lessee wishes to extend the tenancy, the lessee shall submit
a written
application to the lessor within 6 months before the expiration of
this
lease. The lessee shall have the preferential right to lease the
property
under equal conditions, but a new contract needs to be executed by
both
parties.
|
4. |
Any
matters not clearly stated in this contract will follow the relevant
regulations in the Economic Contract Law of the People’s Republic of
China. Supplementary regulations may be made by agreement between
both
parties through consultation and such supplementary regulations shall
have
the equal legal effect as this
contract.
|
5. |
The
terms of this contract is originally written in Chinese characters.
This
contract is in a form of four copies. Party A and B have two copies
respectively having the same legal effect. It comes into effect after
it
has been signed and stamped by the representative from both
parties.
|
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Lessor(stamp) | (Chop of Shenzhen Land & Sun Industrial & Trade Co., Ltd.) |
Unit
address:
|
|
Legal Representative: | (Signature) |
Agent: | |
Telephone no: | |
Bank account: | |
Number of bank account: | |
Lessee (stamp): | (Chop of Shenzhen Long
Cheng
Industrial Co., Ltd. Plastic Metal
Fty.)
(Chop
of China Bao An Long Cheng Hi-Lite Electronic Factory)
(Chop
of Shenzhen Long Cheng Nissin Precision Metal Plastic
Factory)
|
Unit Address: | |
Legal Representative: | (Signature) |
Agent: | |
Telephone no: | |
Bank account: | |
Number of bank account: |
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