Exhibit - 10.16 Agreement on Application, Construction and Transfer of Power Facilities
Exhibit
- 10.16
Party
A: Shanghai
Kaihong Electronic Co., Ltd
Address: XX.000
Xxxxxxxx Xxxx, Xxxxxxx Xxxx, Xxxxxxxxx Xxxxxxxx, Xxxxxxxx
Party
B: Shangai
Yahong Electronic Co., Ltd
Address: XX.000
Xxxxxxxx Xxxx, Xxxxxxx Xxxx, Xxxxxxxxx Xxxxxxxx, Xxxxxxxx
WHEREAS
Party A as tenant uses Party B’s factory building and is in operation in the
same area with Party B;
WHEREAS
Party A’s consumption of electricity is in excess of capacity and Party B has
the right to apply for constructing the facilities for power supply (“Power
Facilities”);
NOW
THEREFORE Both Parties enter into the following terms and conditions with regard
to the application, construction thereof and the change of name and title
thereof through amicable negotiation on the basis of equality and mutual
benefits.
| 1. |
Party
B agrees to designate, in a timely fashion, a power transformation
and
distribution institute and/or related institution in his own name
for
designing the drawings and to submit such drawings and related materials
to the electric service company for examination and approval in accordance
with the requirements of the electric service company at the request
of
Party A.
|
|
2.
|
Party
B agrees to apply, in a timely fashion, for the construction of the
Power
Facilities and to submit the required application documents and materials
to the electric service company in his own name upon the reply to
the
enquiry of electric service application by the electric service company
and approval of the construction project
applied.
|
|
3.
|
Party
B agrees that the Power Facilities are solely intended for Party
A’ s use
upon completion of construction work thereof and Party B is willing
to
change, for free of charge, the name and title of the Power Facilities
to
be under Party A in a timely fashion.
Party
B agrees to entrust, in a timely fashion, the electric service company
for
the engineering construction of electricity supply and pay for such
engineering work in accordance with the requirements of the electric
service company, provided that Party A shall furnish all service
equipment
and cover all costs incurred by Party B
thereof.
|
|
4.
|
Party
B agrees that he shall provide all necessary assistance and cooperation
at
Party A’s request so as to go through application(s) and/or procedure(s)
other than those mentioned herein, if so required, and fulfill such
application(s) and/or procedure(s) on time during the application,
construction and change-of-name of the Power Facilities. Party B
guarantees that if change-of-name of the Power Facilities can not
be
fulfilled for any reason not caused by Party B, Party A still has
exclusive right to use the facilities. Party B should protect the
above-mentioned facilities from any damage and has no right to dispose
them.
|
|
5.
|
Party
A guarantees that he shall provide all necessary assistance and
cooperation at Party B’s request, bear all relative costs and expenditures
and provide all associated service equipment during the application,
construction and change-of-name of the Power
Facilities.
|
|
6.
|
Party
A guarantees to bear and be responsible for all relative fees and
costs
for electricity use after the Power Facilities are in
operation.
|
|
7.
|
Party
A guarantees that if this Agreement cannot be effectively enforced
for any
reason not caused by Party B, Party B shall not be liable to Party
A in
this regard.
|
|
8.
|
This
Agreement comes into effect once signed and sealed by both
Parties.
|
|
9.
|
The
clauses stated in this Agreement can be amended by the Parties subject
to
their negotiation and mutual consents, according to the circumstances
arising from the actual performance of the Agreement, provided that
a
written supplementary agreement signed by the Parties shall be entered
into to cover such amendments.
|
|
10.
|
The
legal effectiveness of each clause herein is separable, which means
should
any clause be deemed as null and void the effectiveness of other
clause(s)
will not be affected.
|
|
11.
|
This
agreement is originated in two duplicated copies with equal legal
validity. Each Party holds one copy
thereof.
|
|
12.
|
Any
dispute arising from this Agreement between Party A and Party B which
cannot be settled through negotiations should be submitted to the
people’s
court with jurisdiction thereof for trial.
|
This
agreement is hereby signed by authorized representatives of parties this fifteen
of March, 2006.
Party
A:
Shanghai Kaihong Electronic Co., Ltd
Legal
representative or authorized representative:
/:/
Xxxxxx Xxx
Date:
March 15, 2006
Party
B:
Shanghai Yahong Electronic Co., Ltd
Legal
representative or authorized representative:
/:/
Jian-Ya, Xing
Date:
March 15, 2006
