Asset Lease Agreement
This agreement was entered into in Guangzhou between parties as follows on ●:
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 1 | Commitments |
| 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 1 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 2 | Leasing properties |
Party B shall lease from Party A properties as listed in the annex 1 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 3 | Term of this agreement |
The parties hereto agree that term of the leasing be three 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 4 | Rights 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 1 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 (excluding Guangzhou area) 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. | Responsible for the other routine maintenance and repair of the natural damage of the non-building main structure of the leased assets in Hengyang and Shashi during the leasing period |
| 5. | 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 5 | Transaction cap |
The parties hereto agree that annual rent shall be RMB35,924,400, details of which are described in the annex hereto.
| 2 |
| Clause 6 | Force 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 7 | Settlement 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 8 | Miscellaneous |
| (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 |
Annex 1: Rent summary table
Unit:’0000
| No. | Region | Annual rent | ||||
| 1 | Wuhan | 1,746.22 | ||||
| 2 | Shashi | 19.75 | ||||
| 3 | Changsha | 163.21 | ||||
| 4 | Seaport | 302.81 | ||||
| 5 | Zhanjiang | 48.32 | ||||
| 6 | Guangzhou | 1,296.38 | ||||
| 7 | Hengyang | 15.75 | ||||
| Total | 3,592.44 | |||||
| 4 |
Rent table of properties and buildings
| No. | Title certificate No. | Name of buildings | Structure | Completion Date |
Measurement units |
Construction area/volume |
Annual rent(yuan/year) |
Note | ||||||||
| Wuhan | ||||||||||||||||
| 1 | Maintenance hangar | Wire frame | 1994-12-1 | m2 | 5,561.00 | 697,269.00 | ||||||||||
| 2 | Maintenance plant office | Mixed | 1994-12-1 | m2 | 1,348.00 | 74,594.00 | ||||||||||
| 3 | Maintenance plant supplies building | Mixed | 1994-12-1 | m2 | 2,200.00 | 121,741.00 | ||||||||||
| 4 | Charging stations | Mixed | 1994-12-1 | m2 | 212.00 | 10,926.00 | ||||||||||
| 5 | Fire pump room | Mixed | 1994-12-1 | m2 | 142.00 | 7,319.00 | ||||||||||
| 6 | Substation | Mixed | 1994-12-1 | m2 | 222.00 | 11,443.00 | ||||||||||
| 7 | Aircraft materials building | Mixed | 1994-12-1 | m2 | 767.00 | 43,207.00 | ||||||||||
| 8 | Aircraft materials parts warehouse | Framework | 1994-12-1 | m2 | 1,600.00 | 123,732.00 | ||||||||||
| 9 | Engine warehouse | Framework | 1994-12-1 | m2 | 860.00 | 66,506.00 | ||||||||||
| 10 | Oil seal room | Mixed | 1994-12-1 | m2 | 154.00 | 7,937.00 | ||||||||||
| 11 | Rubber product warehouse | Mixed | 1994-12-1 | m2 | 216.00 | 11,133.00 | ||||||||||
| 12 | chemicals warehouse | Mixed | 1994-12-1 | m2 | 123.00 | 6,340.00 | ||||||||||
| 13 | Extinguisher cleaning and sand blowing plant | Mixed | 1994-12-1 | m2 | 167.00 | 8,608.00 |
| 5 |
| 14 | Cargo warehouse | Framework | 1994-12-1 | m2 | 1,727.00 | 133,553.00 | ||||||||||
| 15 | Outfield workplace | Mixed | 1994-12-1 | m2 | 1,335.00 | 73,399.00 | ||||||||||
| 16 | Flight dispatched Room | Mixed | 1994-12-1 | m2 | 2,575.00 | 150,433.00 | ||||||||||
| 17 | Aviation food plant | Mixed | 1994-12-1 | m2 | 1,357.00 | 74,609.00 | ||||||||||
| 18 | Special garage(level 1) | Mixed | 1994-12-1 | m2 | 2,193.00 | 113,028.00 | ||||||||||
| 19 | Gas station | Mixed | 1994-12-1 | m2 | 1,946.99 | 94,983.00 | ||||||||||
| 20 | Wuhan Xxxx Xxxxx Shì Zì No.200003249 | Activity center | Framework | 1997-10-31 | m2 | 2,044.00 | 197,437.00 |
| 6 |
| 21 | Wuhan Xxxx Xxxxx Shì Zì No.200003249 | Garage | Mixed | 1997-10-31 | m2 | 179.00 | 10,481.00 | |||||||||
| 22 | Wuhan Xxxx Xxxxx Shì Zì No.200003249 | Aircrew kitchen | Mixed | 1997-10-31 | m2 | 1,470.30 | 86,096.00 | |||||||||
| 23 | Wuhan Xxxx Xxxxx Shì Zì No.200003249 | Bank | Mixed | 1997-10-31 | m2 | 124.60 | 7,296.00 | |||||||||
| 24 | Flight building(former boiler room) | Mixed | 1997-10-31 | m2 | 1,602.00 | 93,808 | ||||||||||
| 25 | Cabin, SOC office building (former Kindergarten) | Mixed | 1997-10-31 | m2 | 2,395.00 | 140,243.00 | ||||||||||
| 26 | Repair center, Security Department | Mixed | 1997-10-31 | m2 | 507.00 | 29,688.00 | ||||||||||
| 27 | Pumping station | Mixed | 1994-12-1 | m2 | 313.00 | 16,133.00 | ||||||||||
| 28 | Ventilation station facade | Mixed | 1994-12-1 | m2 | 136.00 | 7,009.00 | ||||||||||
| Shashi | ||||||||||||||||
| 1 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301595 | South near station | Brick and wood | 1994-12-1 | m2 | 87.19 | 1,459.00 | |||||||||
| 0 | Xxxxx xxx xxxxxxx | Xxxxx xxx xxxx | 0000-0-0 | x0 | 180.00 | 4,113.00 | ||||||||||
| 3 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301605 | Ticket office | Mixed | 1999-12-1 | m2 | 326.70 | 18,678.00 | |||||||||
| 4 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301585 | North near station | Mixed | 1974-12-1 | m2 | 64.71 | 2,104.00 |
| 7 |
| 5 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301596 | North far station | Mixed | 1988-3-1 | m2 | 197.89 | 8,719.00 | |||||||||
| 6 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301606 | Airport gatehouse | Mixed | 1982-11-1 | m2 | 80.42 | 3,139.00 | |||||||||
| 7 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301606 | Base office building | Mixed | 1978-2-1 | m2 | 924.70 | 31,725.00 | |||||||||
| 8 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301586 | Communications building | Mixed | 1993-9-1 | m2 | 555.92 | 41,593.00 | |||||||||
| 9 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301606 | Office building toilet | Mixed | 1990-12-1 | m2 | 36.99 | 1,747.00 | |||||||||
| 10 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301582 | Comprehensive warehouse | Mixed | 1977-12-1 | m2 | 420.27 | 14,419.00 | |||||||||
| 11 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301584 | Convoy office | Mixed | 1989-12-1 | m2 | 236.44 | 10,910.00 | |||||||||
| 12 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301584 | Convoy carport | Mixed | 1974-12-1 | m2 | 657.10 | 20,781.00 | |||||||||
| 13 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301584 | Small garage | Mixed | 1983-3-1 | m2 | 73.98 | 2,888.00 | |||||||||
| 14 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301601 | Power station | Mixed | 1993-9-1 | m2 | 422.60 | 21,316.00 | |||||||||
| 15 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301583 | Eastern carport | Mixed | 1971-12-1 | m2 | 244.36 | 7,101.00 | |||||||||
| 16 | Jingzhou Fang Xxxx Xxxxx Sha Zi No.200301583 | Old cadres office | Mixed | 1975-12-1 | m2 | 110.35 | 3,587.00 | |||||||||
| 17 | Jingzhou Fang Xxxx Xxxxx Sha Zi No. | Staff activity room | Mixed | 1981-12-1 | m2 | 85.56 | 3,257.00 | |||||||||
| Changsha | ||||||||||||||||
| 1 | Xxxxx Xxxx Xxxx Xxxxx Xxxxx Hua Zi No.00008964 | Fire Services building | Reinforced concrete | 1990-1-1 | m2 | 1,377.54 | 100,073.00 |
| 8 |
| 2 | Xxxxx Xxxx Xxxx Xxxxx Xxxxx Xxx Xx Xx.00000000 | Xxxxxxx Xxxxxxxx Xx. 0 | Mixed | 1991-1-1 | m2 | 450.32 | 24,829.00 | |||||||||
| 3 | Xxxxx Xxxx Xxxx Xxxxx Xxxxx Hua Zi No.00008965 | Airport Building No. 11 | Mixed | 1993-1-1 | m2 | 1,273.70 | 71,748.00 | |||||||||
| 4 | Xxxxx Xxxx Xxxx Xxxxx Xxxxx Hua Zi No.00008966 | Airport Building No. 12 | Mixed | 1993-1-1 | m2 | 1,968.86 | 110,907.00 | |||||||||
| 5 | Xxxxx Xxxx Xxxx Xxxxx Xxxxx Hua Zi No.00008963 | Airport Building No. 13 | Mixed | 1993-1-1 | m2 | 1,771.83 | 99,808.00 | |||||||||
| 0 | Xxxxx Xxxx Xxxx Xxxxx Xxx Xx Xx Xx.00000000 | Local building No. 1podium building | Reinforced concrete | 2001-4-4 | m2 | 5,694.01 | 1,107,614.00 | Land rent included | ||||||||
| Xxxxxx | ||||||||||||||||
| 0 | Xxxxxx Xxx Xxxx Xxxx Xxxxx Xxx Xxxx Zi No.48076 | Former ticket office | Mixed | 1973-1-1 | m2 | 1219.08 | 2,045,160.00 | Land rent included | ||||||||
| 2 | Haikou Xxx Xxxx Xxxx Xxxxx Xxx Xxxx Zi No.40606 | Haikou Nanxing Mansion | Reinforced concrete | 1993-1-1 | m2 | 3047.5 | 782,040.00 | Land rent included | ||||||||
| 3 | Haikou Yunyan Mansion | Reinforced concrete | 1994-1-1 | m2 | 497.31 | 200,880.00 | Land rent included |
| 9 |
| Zhanjiang | ||||||||||||||||
| 1 | Xxx Xxxx Zi No.4208605 | Potou Airport office | Mixed | 1986-1-1 | m2 | 308.29 | 15,021.00 | |||||||||
| 2 | Xxx Xxxx Zi No.1385131 | Aircrew dormitory | Mixed | 1980-1-1 | m2 | 402.49 | 13,115.00 | |||||||||
| 3 | Xxx Xxxx Zi No.1385130 | Ground crew dormitory | Mixed | 1980-1-1 | m2 | 402.49 | 13,115.00 | |||||||||
| 4 | Xxx Xxxx Di Xxxxx Xx No.1509639, No.1509641, No.1509642 | 45# dormitory | Mixed | 1998-1-1 | m2 | 728.44 | 36,030.00 | |||||||||
| 5 | Xxx Xxxx Zi No.1385119 | Aircraft materials warehouse | Mixed | 1983-1-1 | m2 | 229.12 | 7,800.00 | |||||||||
| 6 | Xxx Xxxx Zi No.1385157 | Integrated warehouse | Mixed | 1983-1-1 | m2 | 229.12 | 7,800.00 | |||||||||
| 7 | Old hangar | Mixed | 1980-1-1 | m2 | 1207.00 | 42,108.00 | ||||||||||
| 8 | Xxx Xxxx Zi No.1385766 | Charging room | Mixed | 1983-1-1 | m2 | 94.87 | 3,230.00 | |||||||||
| Guangzhou | ||||||||||||||||
| 1 | Xxx Xxxx Di Xxxx Xxxxx Sui Zi No.0140045584 | Ticket office | Reinforced concrete | 1978-1-1 | m2 | 3,991.52 | 2,034,252.00 | Land rent included | ||||||||
| 2 | Air security department office | Reinforced concrete | 1988-1-1 | m2 | 914.00 | 83,221.00 | ||||||||||
| 3 | Vehicle repair plant(Flight service) | Reinforced concrete | 1980-1-1 | m2 | 800.00 | 163,200.00 | Land rent included | |||||||||
| 0 | Xxx Xxxx Xx Xxxxx Xx Xx.0000000 | Xxxxxxx Xxxx Hotel | Reinforced concrete | 1998-1-1 | m2 | 11,485.40 | 5,840,028.00 | Land rent included | ||||||||
| Hengyang | 5,700.00 | |||||||||||||||
| Total | 76,274.96 | 15,424,166.00 |
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Rent table of buildings
| No. | Name | Structure | Completion date | Length (m) | Width (m) | Height/ depth (m) | Measurement units | Area (m2) or Volume (m3) | Assessed value | Annual rent (yuan/year) | ||||||||||||||||||||||||||
| Original value | Newness rate | Net value | ||||||||||||||||||||||||||||||||||
| Wuhan | ||||||||||||||||||||||||||||||||||||
| 1 | Fire services pool | Reinforced concrete | 1994-12-1 | 20 | 10 | 2 | m2 | 400 | 140,000.00 | 58 | 81,200.00 | 7,426.00 | ||||||||||||||||||||||||
| Total | 140,000.00 | 81,200.00 | 7,426.00 | |||||||||||||||||||||||||||||||||
| 11 |
Rent table of land
| No. | No. of land title certificate | Name of land parcel |
Use | Nature | Area(m2) | Annual rent(yuan/year) |
Note | |||||||
| Wuhan | ||||||||||||||
| 1 | Wu Xxx Xxxx (2005) No.0414 | Office building | Other commercial land | Authorized operation | 34,841.65 | 13,911,230.00 | Apportioned area | |||||||
| 2 | Wu Xxx Xxxx (2003) No.666 | Bachelor quarters | Urban mixed residential land | Allocate | 3,240.63 | 1,124,551.00 | Rent reduction | |||||||
| 3 | Xxxxx Bei Xxx Xxxx (2004) No.1661 | Gas station | Industrial | Authorized operation | 9,800.00 | - | ||||||||
| Changsha | ||||||||||||||
| 1 | Xxxxx Xxx Yong (2004) No.118 | Fire Services building | Transportation land | Authorized operation | 5,228.00 | 117,143.00 | Value included in Changsha building Xx.0 | |||||||
| 0 | Xxx Xxx Xxxx (2000) No.1651 | Warehouse 1 | Warehouse | Transfer | 14.23 | Value included in Changsha building Xx.0 | ||||||||
| 0 | Xxx Xxx Xxxx (2000) No.1652 | Warehouse 2 | Warehouse | Transfer | 14.23 | Value included in Changsha building Xx.0 | ||||||||
| 0 | Xxx Xxx Xxxx (2000) No.1653 | Warehouse 3 | Warehouse | Transfer | 14.23 | Value included in Changsha building Xx.0 | ||||||||
| 0 | Xxx Xxx Xxxx (2000) No.1654 | Warehouse 4 | Warehouse | Transfer | 14.23 | Value included in Changsha building Xx.0 | ||||||||
| 0 | Xxx Xxx Xxxx (2000) No.1655 | Base building No. 1 podium building | Canteen | Transfer | 157.37 | Value included in Changsha building Xx.0 |
| 00 |
| 0 | Xxx Xxx Xxxx (2000) No.1656 | Base building basement | Other public facilities such as power distribution | Transfer | 795.86 | Value included in Changsha building Xx.0 | ||||||||
| Xxxxxx | ||||||||||||||
| 0 | Xxxxxx Xxx Xxx Xxxx (Xx) Zi No.Q2456 | Land of former box office | Commercial services land | Allocate | 216.19 | Value included in Haikou building Xx.0 | ||||||||
| 0 | Xxxxxx Xxx Xxx Xxxx (Xx) Xx Xx.X0000 | Land of Nanxing Mansion | Commodity building land | Transfer | 534.00 | Value included in Haikou building Xx.0 | ||||||||
| Xxxxxxxxx | ||||||||||||||
| 0 | Xxxx Xxx Xxxx (2004) No.40005 | Potou Heliport | Transportation | Authorized operation | 18,139.19 | 345,003.00 | ||||||||
| Guangzhou | ||||||||||||||
| 1 | Sui Fu Xxx Xxxx (2007) No.01300095 | Flight department, training Center(land parcel 14-1) | Transportation | Allocate | 31,347.300 | 1,759,722.00 |
| 13 |
| 2 | Sui Fu Xxx Xxxx (2007) No.01300086 | Aircraft materials warehouse area land (land parcel 8-1) | Transportation | Allocate | 16,382.00 | 919,636.00 | Apportioned area | |||||||
| 3 | Sui Fu Xxx Xxxx (2007) No.01300089 | Communication department garage (land parcel 12-1) | Transportation | Allocate | 4,978.00 | 280,472.00 | ||||||||
| 4 | Sui Fu Xxx Xxxx (2007) No.01300090 | Southern Airlines collective dormitory (204, 275#) (land parcel 13-1) | Transportation | Allocate | 2,306.00 | 129,928.00 | ||||||||
| 5 | Southern Airlines collective dormitory (280#) | Transportation | Allocate | 521.00 | 29,141.00 | |||||||||
| 6 | Sui Fu Xxx Xxxx (2007) No.01300093 | Company sites of Nanlian Catering (land parcel 19-1) | Transportation | Allocate | 21,749.00 | 1,216,464.00 | ||||||||
| 7 | Sui Fu Xxx Xxxx (2007) No.01300091 | Aircraft maintenance company plant | Transportation | Allocate | 9,012.30 | 507,766.00 | Apportioned area | |||||||
| 8 | Sui Fu Xxx Xxxx (2007) No.01300097 | Train station ticket office | Commercial land | Allocate | 2,634.00 | Value included in Guangzhou building No.1 | ||||||||
| Xxxx Xxxx | 151,800.00 | |||||||||||||
| Total | 20,492,856.00 |
| 14 |
