Unofficial English Translation Plant Lease Agreement
Exhibit
10.9
Plant
Lease Agreement
Party A:
Management Committee of Bengbu Industrial Park of Anhui Water Resources
Development Co., Ltd
Party B:
Anhui Agritech Agriculture Development Limited
Through
the voluntary, equal and mutual negotiation, with regard to the matter that
Party A leases Party B its legally owned land and plant, both parties agree as
follows:
1.
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The
condition of the leasing plant and affiliated
facilities:
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(1)
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The
plant Party A leases to Party B is located in Xx. 0000, Xxxxxxxxxx Xxxx,
Xxxxxx Xxxxxxxx, Xxxxxx. The coverage of the plant is 1338 square meters.
The type of the plant is the light structure. It is located in the
northwest of Anhui Water Resources Industrial
Park.
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(2)
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The
coverage of the empty land located on the north side of the plant is 260
square meters. Party A shall conduct the hardening of the ground at its
own expenses, and provide it to Party B for free use during the term of
the lease.
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2.
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The
term of the lease of the plant and the affiliated
facilities:
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(1)
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Party
A shall deliver the agreed land and plant to Party B prior to June 1,
2006. The term of the lease starts from June 1, 2006 to May 31, 2016. The
term of the lease is 10 years. The rent calculation date starts from the
date that Party A delivers the land and plant to Party B, Party B accepts
them after examining and both parties sign the closing list. Upon the
closing, Party A shall present the construction plan, compliance
certificates of the fire safety from the competent agencies and other
compliance certificates to guarantee the regular use for Party B,
otherwise Party A shall compensate Party B its losses arising from the
breach.
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(2)
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Upon
the expiration of the term of the lease, Party A is entitled to take the
leasing plant back. Party B shall return the leasing plant on schedule. In
the event that Party B needs to renew the agreement, it shall submit a
written request to Party A within three months prior to the expiration.
After Party A consents to the renewal, both parties shall sign a new lease
agreement.
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3.
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Payment
of the rent:
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(1)
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Both
parties agree that the rent for the plant is RMB 10/ square meter monthly.
The actual use coverage of the plant is 1338 square meters. The yearly
rent is RMB 160,000. The monthly rent is RMB 13,300. The yearly rent of
the plant shall be started from the rent calculation date. Party B agrees
to pay Party A one-year rent in advance on the fifth business date
starting from each rental year. Party A shall provide
Party B with the tax invoice of the same amount of the paid
rent.
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(2)
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The
rent will remain the same during the first five years of the term, it
shall be adjusted according the market price in the last five years of the
term.
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(3)
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The
yearly rent is paid entirely within one month prior to the expiration date
of the rent period.
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4.
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Other
expenses
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(1)
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During
the term of the lease, the expenses of water, electricity, heating and
phone bills shall be assumed by Party B based on the actual use. The
amount assumed shall be determined according to the price Party A paid to
the relevant charged units or utility companies. All aforementioned
expenses shall be paid by Party A first, then Party A will deliver the
official receipts or tax invoices of the aforesaid expenses to Party
B. Party B shall pays
Party A within three days upon the receipt of the official receipts or tax
invoices of the aforesaid
expenses.
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5.
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The
requirements for the use of the plant and the maintenance
responsibilities:
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(1)
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During
the term of the lease, in case Party B discovers any damage or malfunction
of the plant and the affiliated facilities due to quality problems that do
not attributed to the misuse of Party B, it shall timely notify Party A to
repair them. Party A shall conduct the repair within three days upon the
receipt of the notice. In the event that Party A does not conduct the
repair within the aforesaid period, Party B may repair them on behalf of
Party A, and the relevant expenses shall be assumed by Party
A.
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(2)
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During
the term of the lease, Party B shall reasonably use and protect the plant
and its affiliated facilities. In the event that the damages and
malfunctions of the plant and its affiliated facilities are caused by the
misuse or unreasonable use of Party B, it shall be responsible for the
repair. In case Party B refuses to repair, Part A may conduct the repair
on behalf of Party B, and the relevant expenses shall be assumed by Party
B.
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(3)
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During
the term of the lease, Party A shall guarantee the plant and its
affiliated facilities remain the conditions of the ordinary use and
safety. In the event that Party A plans on inspecting, maintaining the
leasing plant, it shall send a three-day prior notice to Party B. Party B
shall cooperate with Party A with regard the
matters.
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(4)
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In
case Party B needs to improve or increase the affiliated facilities and
equipments, it shall obtain the prior written consent from Party A. In the
event that the aforesaid improvement or increase of the facilities and
equipments need approvals from the competent departments, Party A shall
file the relevant applications and such improvements and increase shall
not be conducted prior to obtaining the approvals. The expenses shall be
assumed by Party B.
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(5)
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Party
A is responsible for create a separation in the plant. The height of the
separation shall not be lower than 5.5 m, the north part of the separation
is the leasing plant of Party B. The relevant expenses shall be assumed by
Party A.
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6.
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The
sublease and return of the plant:
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(1)
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During
the term of the lease, in case Party B plans on subleasing the plant, it
shall obtain the prior written consent of Party A. In the event that Party
B subleases or transfers the plant without the prior written consent of
Party A, Party A will not return the received
rent.
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(2)
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Upon
the expiration of the lease, the plant shall be returned in its ordinary
condition.
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2
7.
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Other
covenants during the term of the
lease
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(1)
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During
the term of the lease, both parties shall comply with the laws and
regulations of the State. The business operated shall be in compliance
with the relevant laws and regulation of the State, and the plant shall
not be used to conduct illegal activities. Both parties shall comply the
relevant administrative guidelines of the management committee of Gaoxin
District, Bengbu.
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(2)
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During
the term of the lease, Party A is entitled to supervise and assist Party B
to conduct the fire protection, safety, health and security
work.
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(3)
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During
the term of the lease, in the event that the leasing plant cannot meet the
condition for performing the agreement due to the change of policies of
the city and force majeure events, either party shall not be responsible
to the other parties.
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(4)
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Upon
the expiration of the term of the lease, Party B is entitled to the first
rental right, in case Party A plans on renting the plant. In the event
that Party A does not plan on renting the plant, it shall send a written
notice to Party B within half a year prior to the expiration, otherwise it
shall be liable for any loss or damage arising from the breach. Party B
shall evacuate the leasing plant on time, upon the receipt of such notice,
otherwise it shall be liable for any loss or damage arising from the
breach.
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(5)
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During
the term of the lease, in case Party B is punished due to violating laws
and regulations of the State, Party A is not responsible for any
liability. In the event that the violation of Party B causes any economic
loss of Party A, Party B shall compensate such a loss. Party A is entitled
to seize the equipments of Party B, and return them to Party B after Party
B pays off the penalty or the compensation. In case Party A is punished
due to violating laws and regulations of the State, Party B is not
responsible for any liability. In the event that the violation of Party A
causes any economic loss of Party B, Party A shall compensate such a
loss.
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8.
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Other
provisions
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(1)
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During
the term of the lease, in case Party A breaches the agreement by early
terminating this agreement, it shall compensate Party B one-year rent and
any loss of Party B. During the term of the lease, in case Party B
breaches the agreement by early terminating this agreement, it shall
compensate Party A one-year rent and any loss of Party
B.
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(2)
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During
the term of the lease, any loss incurred by the ownership problems that
affect the ordinary operation of Party B, Party A shall take the full
responsibility and compensate any loss of Party
B.
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(3)
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After
signing the agreement, if the company name of Party is changed, both
parties can endorse the change by signing and sealing the change on the
lease agreement. The original clauses
of the lease agreement are not changed, and remain effective till the
expiration of the agreement.
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(4)
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During
the term of the lease, Party B only pays the rent of the leasing plant,
fees of water and electricity and phone bills used by Party B, it will not
be responsible for any other expenses. In the event that Party B defers to
pay the aforesaid expenses for one month, Party A is entitled to the 5% of
the penalty and to terminate the
agreement.
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3
9.
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Any
matter not specified in this agreement shall be negotiated by both parties
in accordance with laws.
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10.
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This
agreement consists four original copies, and take effect upon the signing
by both parties. Party A and Party B holds two copies
respectively.
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11.
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As
a result of the change of Party B, the former agreement signed by Party A
and Beijing Agritech Fertilizer Limited signed on May 18, 2006 is
void upon date of signing this
agreement.
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Lessor
Management
Committee of Bengbu Industrial Park of Anhui Water Resources Development Co.,
Ltd
/s/
Xxxx Xxxx
Authorized
Person: Xxxx Xxxx
Lessee
Anhui
Agritech Development Co. Ltd.
/s/
Xxxxxxx Xxxxx
Authorized
Person: Xxxxxxx Xxxxx
Location:
Date: May
18, 2006
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