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EXHIBIT 4.17
TRANSLATION
TENANCY AGREEMENT
Party A: XxxxXxxx Xxxxxx Xxxx Xxxxxxxxx Xxxxxxxxxx Xxxxxx Committee
Party B: Jetcrown Industrial (DongGuan) Limited
Through the sufficient negotiation of Party A and Party B and according
to the principles of fairness and mutual benefit, the Parties agree to sign the
following terms and conditions:
1. THE LOCATION AND AREA OF THE FACTORY:
Party A will provide a block of industrial building with an area of
5,210 square meters at Huangguan Industrial Estate "Wai Min Chin" (a
local name); a block of dormitories with an area of 3,410 square meters,
(the total area of factory and dormitories is 8,620 square meters) to
Party B for running his manufacturing production of electronics,
plastics and metal precision etc.
2. TENANCY PERIOD AND RENTAL AMOUNT
The factory and dormitories provided by Party A will be charged at a
unit rate at DOLLARS EIGHT AND FIFTY CENTS RENMINBI (RMB8.50) per square
meter per month. The tenancy period is two years, ie. from February 16,
2000 to February 15, 2002. Rentals shall be paid in arrears and on or
before the 15th day of each month. If the rental becomes overdue, Party
A is entitled to charge a penalty (the penalty is calculated based on a
daily rate of 0.1% on the amount overdue).
At signing this agreement, Party B should pay DOLLARS TWO HUNDRED
THOUSAND RENMINBI (RMB200,000.00) to Party A as a deposit for hiring the
factory. This deposit will be used to setoff the rental during the
latter period of the agreement. If Party B cancel this agreement before
its starting date, this deposit will be used to compensate Party A's
loss and Party A will not refund it any more.
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3. RESPONSIBILITIES OF BOTH PARTIES:
1. Party A should help Party B zealously in handling all
kinds of affairs and procedures during the production
and development processes. Party B should comply with
the Government Policy, exercising the management system
of the local city and town governments. Party B should
pay all kinds of tax and other charges of the relevant
government departments. Party B should also ensure its
production are in a safe manner.
2. Before hand over the factory to Party B, Party A should
make sure the factory is clean and in good condition.
The fire-fighting system is installed properly. Party A
should provide water and electricity to the enclosing
wall of the factory. The other relating facilities will
be responsible by Party B. Party B should purchase
estate insurance for the factory and facilities
according to the country's relevant Enterprise
Management Regulation.
3. At the setting up of the new enterprise, with the Party
B's agreement, Party A will offer staff to the factory
to play a role such as plant manager, accountant and
declaration officer etc. so as to help Party B in these
areas. The amount of salary and wages will be
compromised by Party A and B and will be paid by the
latter.
4. During the process of production and running business,
if Party B wants to alter the existing factory
structure, he should negotiate with Party A first. If
the damage of the factory is due to Party B's usage, he
should be held responsible to repair it. If there is an
occurrence of any natural disasters, and as a result,
the factory was damaged, it will be solved by both
parties.
5. If Party B wants to terminate the contract before its
expiry, he should inform Party A three months before,
and they should negotiate on those relevant terms.
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4. The aforementioned agreement is certified by both parties and
agreed in consistent. The agreement takes effect from the date
they signed it. This agreement is in duplicate, Party A and B
will have one copy each which are of equal validity.
Party A : DongGuan Houjie Party B : Jetcrown Industrial (DongGuan)
Town Huangguan Limited
Industrial Estate
Committee
Representative : Wan Yui Xxxx Representative: Kam Xxx Xxx
Place of signing the agreement: Estate government of Xxxxxxxxx Xxxxxxxxxx
Xxxxxx, Xxxxxx Xxxx, Xxxxxxxx.
Date of signing the agreement : January 20, 2000