LEASE AGREEMENT
Exhibit
10.16
Lessor:
(hereinafter referred to as party A) Shanghai Shenfa
Mechanical Manufacturing Company
Lessee:
(hereinafter referred
to as party B) Shanghai
JinKui Packaging Material
Co., Ltd.
Article
1. The Leased Area and Usage
The
Lessor shall lease to the Lessee
and the Lessee shall lease from the Lessor the Xx. 0000 Xxxxxxx Xxxx, Xxxxxxx
Xxxx-xxxx Xxxx, Xxxxxxxx, Xxxxx, 000000. The leased area is specified below:
The
manufacturing facility is 19,428 square feet (approximately 1,801.94
square meters) and the adjacent ground is 10,440 square feet (approximately
970
square meters). The Lessee uses the leased area to manufacture packaging
materials.
Articles
2. Lease Term
The
Lease
Agreement shall be effective for ten year (including one year before this
agreement is signed), commencing from March 10, 2004 and ending on March 9,
2014. If the leased area cannot meet the demand of production expansion before
the lease term expires, the lessee should notice the lessor half a year in
advance before terminating the lease in order to avoid penalty. If the lessee
and the lessor want to renew the lease term, both parties should negotiate
the
terms three months before expiration.
Article
3. Rent
The
daily
rents for manufacturing facility and the adjacent ground are respectively RMB
0.50 and RMB 0.10 per square meter. In total, the annual rent is $48,129
(RMB363,900) from March 2004 to February 2007. From March 2007 to February
2010,
the rent increases to $51,977 (RMB 393,000). From March 2010 to February 2012,
the rent becomes $56,712 (RMB 428,800). From March 2012 till expiration, the
rent will be $62,383 (RMB 471,680).
Articles
3. Payment of rent
Within
one week since the lease agreement takes into effect, the lessee pays the rent
for the first half year. In the sixth month since the lease commence date,
the
lessee pays the rent for the second half year.
If
the
lessee cannot pay the lessor the rent or water expense or electrical expense
on
time, the lessor has the right to terminate water and/or electrical supply.
The
lessor is not responsible for any consequence herewith.
Article
4. Other Expenses
The
lessee requests the lessor to expend the capacity of 250KV switching equipments.
The lessor prepays the fee for expansion application and related expenses for
installation. The lessee pays the lessor a one-time fee of $5,023 (RMB38,000)
to
compensate the expansion service. The lessor owns the switching equipments
and
the lessee is entitled to use the equipments till the lease
expires.
Article
5. Termination of Lease Agreement
Except
out of the act of God, neither party can terminate the agreement without the
consent of the counterpart. If the lessee delays payment of rent or other
expenses, the lessee should pay the lessor 50% of the balance as
penalty.
Article
6. Dispute Resolution
All
disputes between the Lessor and Lessee shall be settled by negotiation, if
can
not be resolved through negotiation, the dispute shall be submitted to the
authorized Arbitration Commission or the People's Court in the area where the
facility is located.
Article
7. Effectiveness
This
agreement shall be effective immediately upon signing and sealing by the Lessor
and Lessee.
Lessor:
Shanghai Shenfa Mechanical Manufacturing Company
/s/
Anliang
Shen
Date: Xxxxx
00, 0000
Xxxxxx:
Shanghai JinKui Packaging Material Co., Ltd.
/s/ Xxxx
Xxxx
Date: March
10, 2005
