Factory Buildings Lease Agreement
Exhibit
10. 17
Party
A (Lessor):
Shenzhen Qiaotou Equity Cooperation Co.
Party
B (Lessee):
Shenzhen Ritar Power Co., Ltd.
For
the
purpose of introducing foreign capital, promoting the development and increasing
the economic income of Party A, both parties make a friendly negotiation upon
the their mutual benefit and common development. Based on the lease agreement
signed on 15 January 2003 has expired on 30 January 2006, both parties conclude
the following Agreement on 1 February 2006 for leasing Party A’s factory
buildings.
Party
B
shall use and manage the lease premises in accordance with PRC laws and
regulations.
Party
A
shall lease the completed Factory Building A4 (with area of 6,100 square meters)
at the Second Phase of Fuqiao Second Industrial Zone, Qiaotou Village, Fuyong
Town, Bao’an District, Shenzhen.
The
lease
term shall be three years from February 1, 2006 to January 30, 2009. After
the
expiration of the lease term, if Party B request for renewal of lease, both
parties shall make a negotiation on it separately.
The
lease
term of this Lease Agreement shall be deemed commenced form February 1,
2006.
The
rental shall be RMB11.8 Yuan (pretax) per square meters each month. Party B
shall pay the rent to Party A before the 20th
monthly.
Otherwise, he shall pay the surcharge upon the negotiation between both
parties.
Party
B
shall pay RMB71,980 Yuan to Party A as the lease guaranty deposit three days
after this Lease Agreement comes into effect which will be returned at the
expiration of the lease term. If Party B breaches the Agreement, Party A shall
keep the aforesaid deposit.
Party
B
shall pay the rent of the leased buildings to Party A before the 20th
each
month. In case the rental is overdue, Party B shall pay 0.05‰of monthly rental
as surcharge every day, if the rental be paid over two months overdue, Party
A
has the right to terminate the Agreement, take back the leased premises and
keep
the deposit without giving Party B any compensations.
Party
A
shall bear the duty of installing the pipes and wires for plumbing, electricity
and the fire service to the edge of the factory buildings. Party A shall
provide, apply for the approval for and install an electric transformer of
315KVA and a lift bears the weight of 2 tons for each leased building for Party
B. Other facilities and the parts of overdue of electricity except the electric
transformer shall be applied by Party B itself. The proper right of transformers
installed additionally by Party B shall belongs to Party B.
During
the lease term, Party A shall be responsible to fix any damages of the leased
buildings caused by the problems of their main structure. If the damages is
because of the over loading than 700kg per square meters performed by Party
B,
Party B shall bear the liability
of compensating the damages of leased buildings.
During
the lease term, Party B shall obtain the consent of Party A to decorate the
leased factory buildings or sublease the leased factory buildings to the third
party.
During
the lease term , Party B shall
pay
the entire operating fee including taxes, expenses cost by industry and
commerce, water and electricity on the basis of the provisions of the laws
and
regulations. Any results caused by Party B’s failure of performing the aforesaid
payment shall be borne by Party B.
Party
B
shall pay RMB1,500 Yuan as the sharing salaries for security men, cleaners
and
other water and electric workers outside the Zone of each leased building per
month. The payment shall be transferred to Party A together with the monthly
rent.
According
to the regulations of the Zone, all the waste materials resulting from the
operation of Party B shall be purchased and managed by Party A at the market
price to prevent from any security problems.
During
the lease term, Party B shall bear the management fee and the operating
fee.
When
the
lease term expires, Party B shall return the real estate facilities to Party
A
and take the chattels away, fix the broken doors and windows of the leased
buildings, clean the leased area and obtain the consent of Party A to return
the
leased premises.
During
the lease term, both parties have rights to cancel the Agreement in advance
if
it fails to be preformed because of force majeure. The issues shall be dealt
according to relevant PRC laws and regulations.
Party
A
shall assist Party B in handling
the registration formalities of industry, commerce and tax at the District
Competent Authority and the relationship between Party B and the local
governmental departments.
After
this Agreement comes into effect, if there is any confliction between the
documentations issued by either of both parties for the purpose of corresponding
relevant PRC laws and regulations and this Agreement, both parties shall submit
to this Agreement.
During
the lease term, any party who fails to fulfill any duties stipulated by the
articles of this contract and that causes losses of the other party, he shall
pay for the actual loss. If Party B fails to continue the operation of the
business and or Party A fails to continue to lease the buildings caused by
the
distressed market conditions during the term of the lease, either party shall
notify the other party in writing three months in advance. Both parties shall
resolve the issue by negotiations.
If
both
parties have disputes of performing this Lease Contract, they shall settle
the
disputes through negotiations; if they fail to consult, they may apply for
arbitration by Shenzhen Arbitration Commission.
Anything
not covered in this Agreement will be discussed separately by both parties
and
be signed in a supplement agreement. The supplement agreement has the same
effect as the original Agreement.
This
Agreement has two originals and each party holds one original. Both originals
have the same legal effect.
This
Agreement shall come into effect on the day of execution.
Party
A :
Shenzhen
Qiaotou Equity Cooperation Co.
(Corporate
Seal)
|
Party
B:
(Corporate
Seal)
|
||||
| By: | /s/ Xxxxxxx Xxxx | |||
|
Name: Xxxxxxx Xxxx |
||||
Sign
Date: March
28,
2006
