Lease Agreement
Lessor
(hereinafter referred to as Party A): Changxing Xiangyi Industrial Park
Investment Co., Ltd.
Lessee
(hereinafter referred to as Party B): Changxing Chisen Electric Co.,
Ltd.
Party
A
agrees to lease to Party B the premise, Xiangyi
Industrial Park, around 56,600 square meters which
is
located at Jing’er Road, Economic Development Zone, Changxing for the purpose of
production
of battery.
Both
Parties agree to enter into this Agreement on the following terms and
conditions:
Article
1 Lease Term Rent and Payment
1.
Duration: 5 years, from
March 30th,
2008
to March 29th,
2013
2.
The
rent is RMB 4,760,000
yuan.
Party
A
shall
bear the rental income tax.
3.
Payment shall be paid annually before March 30 each year. In case of over-due
payment, Party B shall pay
5
percent of
the
rental as overdue fine every day.
Article
2 Rights and Obligations of Party A
| 1. |
Party
A is entitled to cancel the Agreement unilaterally and cannot indemnify
Party B against damage at any of the following
conditions:
|
|
(1)
|
Party
B fails to pay the rental in accordance with the
Agreement;
|
|
(2)
|
Party
B transfer the lease of the promise or uses the promise for other
purpose
without prior approval of Party A;
|
|
(3)
|
Party
B fails to pay the cost of utilities in
time;
|
|
(4)
|
Party
B is engaged in illegal operation
or business contrary to public morality, or the lease of the promise
is
prohibited by government;
|
|
(5)
|
Party
B violates related Regulation on Realty Management.
|
| 2. |
During
the lease term, if Party B needs to decorate or rebuild the workshop,
it
shall submit the design scheme to Party A and related governmental
department for approval. Party B shall bear the expense for decoration
or
rebuild. If the design scheme may have impact on the main structure
of the
workshop, it needs the written approval from Party A and the origin
designer.
|
| 3. |
Upon
the expiration or termination of the lease term, Party B shall take
away
all removable facilities which Party B has purchased; however, Party
A
will provide no compensation or sell the facilities at a discount
rate. In
case of any damage to the surface of the inner room during the remove,
Party B shall repair and return the promise as it
were.
|
| 4. |
If
Party B needs to use the water meter or power meter of Party A, it
shall
pay to Party A deposit of 50,000
yuan(Party
A issues receipt to Party B). Party B shall pay the cost for utilities
in
time. Upon the expiration or termination of the Agreement, Party
A shall
refund the deposit if Party B clears off the cost for utilities and
keeps
water or electricity in good conditions for normal
use.
|
| 5. |
During
the lease term, in case of urban relocation, the Agreement shall
terminate
automatically. Party A will have 40%
and Party B will have 60%
of
the compensation for the inner decoration ( if
any).
|
| 6. |
Upon
the expiration or termination of the Agreement, Party B shall remove
all
its belongings within
30 days
after the expiry date and return to Party A the promise as it were.
|
| 7. |
Party
A shall be responsible for the timely check on the workshop and attached
facilities and shall bear normal maintenance fee (except for the
damage
caused by Party B’s fault). Neither party shall be liable for the damage
to the workshop or attached facilities caused by a Force Majeure
event.
|
| 8. |
Party
A provide to Party B fire protection facility at current status.
Party B
shall bear the responsibility for any
change.
|
| 9. |
Party
A provides to Party B dynamo-electricity of 6000
kilowatt for
production use. If Party B needs power supply increment, Party B
shall be
responsible for the application and the
expense.
|
Article
3 Rights and Obligations of Party B
| 1. |
During
the lease term, Party B may not change the business scope or transfer
the
lease of the promise to any third party unless with Party A’s approval and
a new supplemental agreement.
|
| 2. |
During
the lease term, if Party A needs use the workshop or lease to other,
Party
A shall compensate Party B for the decoration expense which shall
be
calculated in depreciation based on original
value.
|
| 3. |
If
Party requires canceling the Agreement due to operational difficulty,
it
shall notify Party A two months in advance and the present inner
and
out-door decoration to Party A for
free.
|
| 4. |
Within
one month before the contract expires, Party B will notify Party
A if it
cooperate well with Party A and intends to extend the leasehold.
Under the
same terms, Party B has the priority to lease the
premises.
|
| 5. |
During
the lease term, Party B shall be responsible for the damage to Party
A and
promise in neighborhood due to Party B’s
fault.
|
| 6. |
Party
B shall be responsible for its credits and debts, and Party A shall
not
take any responsibility.
|
| 7. |
Party
B shall comply with the Regulation on Realty Management.(Annex:
Regulation
on Realty Management
of Xiangyi Industrial Park)
|
| 8. |
During
the lease term, Party B shall operate the business legally complying
with
the state laws and local regulations on comprehensive management
and urban
management, and pay the taxation and fees in
time.
|
Article
4 Breach Liability
1.
If
Party B violates the Provision 4 in Article 2, Party B shall pay compensation
of
100,000 yuan to Party A.
2.
If
Party B violates the Provision 6 in Article 2, Party B shall pay compensation
of
10,000 yuan to Party A for each delayed day when it returns the premises; Party
B shall pay compensation of 100,000 yuan if it suspends the Agreement.
3.
If
Party B violates the Provision 1 in Article 3, Party B shall pay compensation
of
100,000 yuan to Party A.
4.
If
Party B violates the Provision 2 in Article 3, Party B shall pay compensation
of
100,000 yuan to Party A.
5.
If
Party B violates the Provision 7 in Article 3, Party B shall pay compensation
of
100,000 yuan to Party A.
Article
5 Others
| 1. |
When
the Agreement is signed, data of the water meter and electricity
meter
shall be kept in record.
|
| 2. |
Any
unsettled matters shall be solved by
negotiation.
|
| 3. |
The
Agreement is made in quadruple with each party holding two originals.
It
shall come into effect with signature after Party B pays the
rental.
|
Party
A:
Changxing Xiangyi Industrial Park Investment Co., Ltd.(seal)
Representative
of Party A (signature) /s/ Authorized Representative
Party
B:
Changxing Chisen Electric Co., Ltd. (seal)
Representative
of Party B (signature) /s/ Authorized Representative
Date:
March 30, 2008
