Rental Contract
EXHIBIT
4.20
Rental
Contract
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Lessor:
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Ping
Hu City Xin Xxx Xx Xxxx Xxx Economic Corporation (Party
A)
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Lesser:
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Xx.
Xxxx Xxx Xxxxx (Party B)
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Party
A
and Party B made the mutual agreement as stated below:
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1.
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Party
A shall rent to Party B the factory with area of 3,100 square meters
and
dormitory with area of 1,600 square meters in addition of 420 square
meters flat building, total area of 5,120 square meters, located
in
Xxxxxxxx X0, Xxxx Xxxxx Xxxxxxxxxx Xxxx, Ping Hu, China. Payment
Term:
RMB9.5 per square meter and total RMB48,640 per
month.
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2.
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The
rental period is ten years from 1st
April 2004 to 31st
March 2014.
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3.
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Monthly
rental fee due on the fifth day of each month and must pay in full
amount.
If rental fee is overdue, Party A resumes the right to charge 20%
of
rental fee overdue as the penalty.
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4.
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One
month deposit and one month rental fee, total of RMB48,640, shall
be paid
in advance when the contract signed. When the contract expiry, Party
A
shall refund the deposit to Party B. If Party B breach the contract
or
terminate the contract before expiry, Party A shall forfeit the
deposit.
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5.
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Decoration
period is one month and Party A shall provide water and electricity
supply
and be responsible for the wall and infrastructure
building.
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6.
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Party
A shall be responsible for initial installation of 315 thousand volt
transformers to Party B. Party B shall bear all the extra cost of
installation if needed during the contractual period. Party B shall
be
responsible for the installation of water and electricity supply
in the
dormitory.
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7.
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Rental
fee is not included the utilities charges. Party B shall be responsible
for all the fee included tax, water and electricity charges and property
tax expenses.
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8.
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The
rental property is for the usage by Party B exclusively. Without
the
permission from Party A, Party B shall not sublet the rental property
to
the third party. Otherwise, Party A resumes the right to terminate
the
rental contract and forfeit the
deposit.
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9.
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Party
B shall terminate the rental contract with three month notice and
Party B
shall compensate one-month rental fee to Party A if Party B terminates
the
contract before expiry.
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10.
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Party
B is allowed to reconstruct any building of factory under safety
rule of
fire-prevention and the main construction shall not tear down without
the
permission from Party A. Party B shall be responsible for all repairing
fee due to fire during the rental
period.
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11.
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During
the rental period, Party B shall comply with the Law of PRC and the
regulation imposed by the Provincial Government. Party B shall bear
all
the responsibility for breaching the law and regulation. Party B
shall pay
to Party A for the property damage if the property owned by Party
A during
the rental period.
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12.
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Party
B shall have priority to rent the location after expiry of the contract
and the rental fee is subject to mutual
agreement.
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13.
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This
contract is made in three copies and each party shall hold one copy.
This
contract will be effective from the date of the two parties
signed.
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Party
B: signed
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Date:
23rd
February, 2004
