WORKSHOP LEASE
Exhibit
10.9
(English
Translation)
Lessor: Dalian Yilong Zhongkuang
Machine Manufacturing Co. Ltd
Address: Xxxxxxxx Xxxxxxx, Xxxxxx
Xxxx, Xxxxxxxxxx Xxxx.
Corporate
Representative: Zhang,
Chunmao
Lessee: Dalian Heavy
Mining Equipment Manufacturing Co., Ltd.
Address: 00 Xxxxxxx Xxxxxx,
Xxxx-Xxxx Technological and IndustrialGarden of Dalian City
Corporate
Representative: Xxxx,
Xxxxx
Under the principle of Reciprocal
Benefit, both parties have negotiated and hereby enter the following provisions,
agreeing to abide together:
Article
One: Workshop
Lessor is to let the workshop in the
area 2,500
square meters at the address of Xxxxxxxx
Xxxxxxx, Xxxxxx Xxxx, Xxxxxxxxxx Xxxx with the Deed number Liao Xxxx
Xxx Bian Di 023078 to Lessee for
commerical use. The workshop is equipped with one Bridge Crane in
capacity of 32/5 tons and one Crane Arm in capacity of 10 tons for the use of
Lessee. At the same time Lessor shall confer the right of use of land
in thirteen acres land, including all of the buildings on the ground to
Lessee.
For details of the aforementioned
buildings and equipments please see the List. For the land please see the
geographical survey.
Article
Two Term
of Lease
The term of lease is five years,
starting from November 11, 2008 to October 31, 2013. The lease
automatically is terminated at the end of the lease. Lessee shall
have right of “first refusal” when applying for renewal.
Article
Three Delivery
of Premise
1. Lessor
is agreed to deliver the workshop and the affixed equipments to Lessee before
October 1, 2008.
2. Lessee
shall not renovate or change the structure of the premise without firstly
obtaining a written approval from Lessor. Once a written approval is
grant, any cost and expense to the renovation, including the materials, labor
and the construction by the lessee shall is on its own.
Article
Four Rent
and Payment
1. the
Annual Rent is RMB 460,000,
payable semi-annually.
2. Payment:
Immediate after the day of this contract signed, Lessee shall pay RMB 100,000
as the deposit, which shall become the first semi-annual rent after lessee is in
possession of the premise. Thereafter, the semi-annual rent shall be
payable on or before the Octorber 15th and
April 15th of each
year.
3. The
lessee shall issue invoice and pay the Invoice Tax on its
own.
Article
Five Intended
Use of the Leased Workshop
The leased workshop is intended for
commercial production only. Lessee shall not change the use for any other than
the intended use. Any illegal activity is prohibited.
Article
Six Duties
of Lessee
1. Lessee
shall abide with the State policy, law, regulations and rules when operating its
business. Lessee shall legally use the premise.
2. At
the end of the lease, lessee shall maintain the workshop, the affixed equipments
and the other facilities in good condition, except for any damage resulting from
the Force Majeure.
3. The
cost and expense incurred from the maintenance, repair and inspection within
term of lease shall be bored on Lessee.
4. The
cost and expense incurred from water, electricity and the maintenance of doors
and windows within the term of lease shall be bored on Lessee.
Article
Seven Duties
of Lessor
1. Conditioning
on the Lessee’s compliance with the lease within the terms of lease, Lessor
shall provide
lessee with absolute enjoyment of occupancy for lessee’s normal use of premise.
Lessor guarantees its good title of the premise, not subject to any claim from a
third party.
2. Lessor
shall satisfy the lessee’s requirement for facilities of water and
power.
3. Lessor
shall provide certificate of inspection after the completion of workshop
(including project quality, environmental protection inspection, fire department
inspection, certificate of deed and etc.)
4. Lessor
guarantees that it will not transfer, mortgage the premise or conduct any other
transition which shall affect the Lessee’s use of premise, nor it will cause the
foreclosure or restraint to the premise or equipments as a result of its own
debts.
5. The cost
and expense incurred from the maintenance of premise shall be bore on
Lessor.
Article
Eight Breach
of Contract
1. Lessor’s
Liability
(1) For
any relocation or business transferring due to the government zoning or state
action which results in the impossibility of performance, both parties shall
rescind the lease; Lessor shall only charge the rent at daily rate for actual
use and is not liable for any other damage to Lessee. But Lessee is entitled to
any compensation from the government or the commercial developer.
(2) For
Lessor’s breach of contract by repossessing the premise prior to the end of
lease, or any other
breaches, 50% of the total rent shall be imposed as liquidated damage to Lessee.
If such is incapable of compensating the loss of Lessee, Lessor shall provide
continue to provide compensation until the loss of Lessee is fully
recovered.
(3) For
any late delivery of premise, a daily penalty equivalent to o.1% of the annual rent will
be imposed. Any late delivery exceeding 30 days is deemed fundamental breach,
which shall result in 20% of the annual rent penalty payable to
Lessee.
|
2.
|
Liability
of Lessee
|
(1) During
the term of lease, any following conducts of Lessee shall entitle Lessor for
termination the contract, repossession the premise and a fine equivalent to 50%
of the leased rent from Lessee. If such fine is incapable of compensating the
loss of Lessor, Lessee shall provide other compensation until the loss of Lessee
is fully recovered.
|
|
a)
|
Assign,
sublet or transfer the premise to third party without obtaining a written
approval from Lessor;
|
|
|
b)
|
Change
the structure of premise or damage the premise without obtaining a written
approval from Lessor;
|
|
|
c)
|
Change
the intended use of lease or conduct in any illegal
activity;
|
(2)
During the term of lease, any late payment against the provision of this
contract shall result in a daily penalty equivalent to 0.1% of such
payment.
(3) If
Lessee breaches contract by early termination, recession, or any other conducts
in violation of lease, 50% of the total rent shall be imposed as liquidated
damage to Lessor. If such is incapable of compensating the loss of Lessor,
Lessee shall continue to provide compensation until the loss of Lessor is fully
recovered.
Article
Nine
Any
disputes during the term of contract shall be resolved through parties’
negotiation, if failed, shall be resorted to the People’s court.
Article
Ten
This contract takes effect after it is
signed and sealed by the corporate representatives of each party. This contract
has four original copies, two held by each party.
Lessor:
Dalian Yilong Zhongkuang Machine Manufacture Co. Ltd
Lessee:
Dalian Heavy Mining Equipment Manufacturing Co., Ltd.
Seal in red Dalian Yilong
Zhongkuang Machine Manufacture Co. Ltd
Seal in red Dalian ZhongKuang
Equipment Manufacturing Co., Ltd
|
Signature
of Authorized Agent
|
Signature
of Authorized Agent
|
|
/s/
Wang, Yi Long
|
/s/
Wang, Yi
Sheng
|
|
September
25, 2008
|
September
25, 2008
|
