Premises Lease Contract
Lessor
(hereinafter, “Party
A”): XXXXX
Xxxxxxxxx
Lessee
(hereinafter, “Party
B”): Daqing Qingkelong
Chain Commerce & Trade Co., Ltd.
In
accordance with the Contract Law of the People’s Republic of China and the
provisions of relevant laws and regulations, the Parties hereto have, on the
basis of equality and voluntariness, reached the following agreement in
connection with the leasing of the premises:
Article
1 Party A guarantees that the leased premises is
in conformity with the relevant provisions of the State concerning lease of
premises.
Article
2 Basic Information of the Premises
The
Premises is located at 0, Xxxxxxxxx Xxxxxx, Xxxxx of Dongfeng Road, Sartu
District, Daqing City, Heilongjiang Province, with a building area totaling
4,897.64 square meters. The premises is free of any mortgages.
Article
3 Property Title Status of the Premises
Party A
has the full title ownership of the premises, and shall present to Party B the
real property title ownership certificate numbered NA234677.
Article
4 Term of Lease of the Premises
The lease
term shall be valid for eight years, commencing December 20, 2010 and ending
December 20, 2018. By June 28, 2010, Party A shall vacate the premises and
deliver it to Party B for the latter’s use. The period commencing June 28, 2010
and ending December 19, 2010 is a rental-free renovation period given to Party B
by Party A.
Article
5 Use of the Leased Premises
The use
of the leased premises: the leased premises shall be used by Party B as office
and supermarket premises.
Article
6 Rental and Payment
(1) Annual
rent: RMB1,200,000.00 (One Million Two Hundred Thousand Renminbi yuan).
(2) Payment
method: Party B shall pay the rentals in installments.
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(a)
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Party
B shall pay the rental for the first three years (i.e., from December 20,
2010 to December 19, 2013) as a lump sum to Party A within 3 days of the
effectiveness of the contract. The sum totals RMB3,600,000.00 (Three
Millions Six Hundred Thousand Renminbi yuan).
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(b)
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Party
B will pay the rental to Party B on a per 18-month basis, i.e.,
RMB1,800,000.00 (One Million Eight Hundred Thousand Renminbi yuan) per 18 months,
within three months prior to the expiry of the term for which the rental
is to be paid pursuant to Item (a)
above.
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Article
7 Other Expenses
Within
the lease term, all expenses in connection with the premises as listed below
shall be borne by Party B:
(1) Water,
electricity and heating bills and property management fees; and
(2) Premises
lease taxes and fees and other taxes and fees incurred from the
premises.
Article
8 Delivery and Return of the Premises
(1) Delivery:
Party A shall deliver the premises to Party B pursuant to the agreed terms and
conditions prior to June 28, 2010. The delivery shall be deemed to have
completed subject to both Parties’ handing over and verification against, and
affixation of their signatures and seals to, the List of Auxiliary Facilities
and Equipment of the Premises. Party A shall, in the event of a ten-day delay in
delivering the premises, pay Party B an overdue payment at a rate of RMB1,000
per day. If Party B fails to receive the delivery of the premises as scheduled
for certain reasons, Party A will not be liable for the agreed overdue
payment.
(2) Return:
Upon expiry of the lease term, Party B shall return the premises and its
auxiliary facilities. During the lease term, Party B shall be entitled to use
the lightings, air conditioners and elevators in the premises, and any of which
having been removed and being no longer usable shall be returned to Party A by
Party B.
Upon
expiry of the lease term, Party B may take back any additional items provided by
its own, to the extent that no destructive removals are made.
Article
9 Title Ownership
(1) Party
A shall ensure [that he has] the right to lease the leased premises. In the
occurrence of any transfer, in full or in part, of the title ownership to the
premises, creation of any other property right thereon or any other event
prejudicing Party B’s rights and interests during the lease term, Party A shall
ensure that the ownership holder, the owner of other rights or the other third
party prejudicing Party B’s rights and interests are able to continue to comply
with all the terms and conditions of this Contract; otherwise, Party A shall be
liable for paying double compensation for any damage caused thereby to Party B’s
rights and interests.
(2) In
the event of transfer or sale of the premises by Party A during the lease term,
Party A shall give a three-month prior written notice to Party B, in which case
Party B shall have the priority to purchase over a third party under the same
condition.
(3) In
the event of any change of the title ownership to the premises during the lease
term, this Contract shall have legal force between Party B and the new ownership
holder.
Article
10 Rights and Obligations of the Parties
(1) Party
A’s rights and obligations
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(a)
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Party
A must deliver the premises and auxiliary facilities to Party B for its
use.
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(b)
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During
the lease term, Party A shall not interfere Party B’s normal use of the
premises.
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(c)
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Party
A shall, before delivering the premises to Party B, settle the payment of
the water, electricity and heating bills, property management fees and
other expenses that shall be borne by Party
A.
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(2) Party
B’s Rights and Obligations
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(a)
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Party
B has the right to renovate the premises according to its own needs to the
extent that the main structure of the premises is not
affected.
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(b)
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Party
B shall pay the rentals as scheduled and in accordance with the provisions
of this Contract. In the case of 30 day’s overdue of rent payment by Party
B, Party A has the right to terminate the
contract.
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(c)
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Party
B has the right to add extra equipment in the premises. Upon expiry of the
lease term, Party B will take the added equipment away and guarantee that
the same will not affect the completion and normal use of the
premises.
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(d)
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Party
B shall use the said premises in a reasonable manner and inspect the
safety condition of the premises and the electric circuit therein during
the lease term. If any damage is caused to the premises due to improper
use, Party B shall be liable for
compensation.
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Article
11 Termination of the Contract
(1) If
Party B needs to renew the lease after the expiration of the lease term, it
shall give a three-month prior notice to Party A. The Parties shall negotiate on
the renewal matters separately. Party B shall have the priority right to renew
the lease under the same condition.
(2) This
Contract shall become effect immediately upon affixation of the signatures and
seals of the Parties hereto, and shall not be arbitrarily terminated without
both Parties’ consent. The two Parties may otherwise negotiate on any issues
unaddressed herein.
Article
12 Liability for Breach
(1) Party
A shall not terminate the contract during the lease term. If Party A terminates
the contract arbitrarily, he shall compensate for all losses caused to Party B
due to the termination.
(2) If
any dispute arises between the two Parties from the performance of, or in
connection with, this Contract, they shall conduct friendly negotiation first.
If the negotiation fails, a suit may be filed with a people’s court having
jurisdiction.
(3) If
any force majeure event (among others, earthquakes and demolition by the
government) occurs during the performance of the contract, and as a result, the
use of said premises cannot be continued, the Parties hereto shall not be liable
for each other. The rentals shall be calculated on the basis of the actual
number of days of use. The remaining fees will be refunded to Party B by Party
A.
Article
13 Miscellaneous
(1) This
Contract is made in three copies, with Party A holding one and Party B holding
two. The copies shall have the same legal effect.
(2) After
the effectiveness of this Contract, any change or supplement to the content
hereof made by the Parties shall be in writing, and shall serve as the annexes
hereto. The annexes shall have the same legal force as this
Contract.
Party A
(Signature): /s/ XXXXX
Xxxxxxxxx
(attached
with a photocopy of his ID)
Date:
June 28, 2010
Party B: Daqing QKL Chain
Commerce & Trade Co., Ltd.
(affixed
with company seal)
Legal (or
Authorized) Representative: /s/ WANG
Zhuangyi
Date:
June 28, 2010
