Real Property Lease Agreement (English Translation)
Exhibit
10.18
(English
Translation)
Lessor
(hereinafter referred to as Party A)
Shenzhen
Qiaotou Equity Corporation Co.
Lessee
(hereinafter referred to as Party B)
Shenzhen
Ritar Power Co., Ltd.
Party
A
and Party B have reached the following agreement (the “Agreement”) in respect of
the extension of lease term through friendly negotiation.
| 1. |
Party
A will lease to Party B the Factory Building 9 (with area of 6,100
square
meters), the 1-6 floors of Dormitory Building 6 and 4th
floor of Dormitory Building 9 (with area of 3,759 square meters) at
Fuqiao
Second Industrial Zone, Qiaotou Village, Fuyong Town, Bao’an District,
Shenzhen.
|
| 2. |
The
lease term will commence on 1st May 2007 to 30th January 2009. The
rental
will be RMB 109,570 Yuan monthly (RMB 11.8 Yuan per square meter per
month
for Factory Building, not including business tax and management fee
and
XXX 00 Yuan per square meter per month for Dormitory Building, not
including business tax and management
fee).
|
| 3. |
Party
B shall pay the rent of the first month of RMB 109,570 Yuan and the
safety
deposit (the “Deposit”) which equals to one month’s rent to Party A within
3 days after the execution of this Agreement. Party A shall return
the
Deposit to Party B after the expiration of this
Agreement.
|
| 4. |
Party
B shall pay the monthly rent to Party A before the 20th
of
each month. In case the rent is overdue, it shall pay an overdue penalty
calculated as 5‰ of the unpaid rental per
day.
|
| 5. |
Party
A will continue to provide a 100KVA transformer and two elevators for
Party B’s use, and Party B shall deal with the additional facilities in
connection with the transformer. In case Party B makes extension to
the
transformer, the property right of the additional part shall belong
to
Party B.
|
Both
parties shall complete an inventory checklist on the date when the leased
property and its facilities are delivered.
| 6. |
During
the lease term, B shall be responsible the fees of water, electricity,
waster disposal and any other fees incurred from the use of the
premises.
|
1
| 7. |
Party
A shall keep and maintain the demised premises in a safe condition
at all
times in accordance with relevant law, regulations and
policies.
Party B shall make reasonable uses of the Factory and Dormitory, and
the
maximum weight that each square meter of land of the Factory is
700
kilograms. During the lease term, Party B shall responsible for repair,
maintenance and annual test of the transformer, elevators and relevant
facilities.
|
| 8. |
Party
B shall not use the Factory and Dormitory to engage in unlawful business,
and Party A shall not interfere with the normal and reasonable use
of the
Factory and Dormitory by Party B.
|
| 9. |
Caused
by Party B’s unreasonable or inappropriate use, in the event of occurrence
of deteriorations or injuries to the Factory or
Dormitory which imposes safety threats and renders it untenantable
of the
premise, Party B shall notify Party A in time and be responsible for
repairs at its own expenses. Party A may have the properties repaired
if
Party B refuses to repair. The expenses in connection with the repairs
shall be born by Party B.
|
| 10. |
During
the lease term, Party B may make improvements to the Factory or Dormitory
with prior written consent of Party A, but such improvements shall
not
affect the main structure of the Factory or
Dormitory.
|
| 11. |
During
the lease term, without prior consent of Party A, Party B shall not
sublease part or whole of the Lease Property to any third
party.
|
| 12. |
In
the event that Party A decides to transfer parts or whole of the Factory
or Dormitory to any third party, it shall notify Party B in writing
one
month before such transfer and Party B has the right of first refusal.
|
In
the
event that Party A transfers the Lease Property to a third party, it shall
be
responsible to notify such third party to continue performing this
Contract.
| 13. |
During
the lease term, this Agreement may
be terminated or amended in the event that any of the following conditions
is satisfied:
|
a)
The
Contract can not be performed in the event of force majeure;
b)
Government confiscates, purchases, or demolishes the Lease
Property;
c)
Both
parties agree to terminate or amend this Contract.
| 14. |
All
the waste materials generated from the manufacture and operation of
Party
B shall be purchased by the institute designated by Party A with the
market price.
|
2
| 15. |
Party
A is entitled to refuse to return the Deposit to Party B and terminate
this Agreement, in case any of the following conditions is
satisfied:
|
a)The
rent of any month is overdue for more than 30
days
(one month);
b)
Party
B use the Lease Property to engage in unlawful acts which violate the public
interests or other third party’s legitimate interests.
c)
Party
B alters the house’s structure or the agreed usage unilaterally;
d)
Party
B subleases parts or whole of the property to any third party without Party
A’s
consent.
e)
Without the consent of Party A, Party B sells the waste materials to any third
party.
In
addition, Party A has the right to claim for any loss incurred by Party B’s
breach of this Agreement.
| 16. |
During
the lease term, in case either party intends to terminate this Agreement,
it shall notify the other party with a 3 months notice in writing and
compensate the economic loss which equals to two months’
rent.
|
| 17. |
Party
A shall designate a manager to facilitate the use of the premises at
the
expenses of Party B. The salary for such manager shall be RMB 2,000
per
month.
|
| 18. |
Party
B is responsible for management fees regarding the security, sanitary
control, water system and staff expense in an amount of RMB 1,500 per
month per building.
|
| 19. |
Once
this Agreement expires or terminates, all the movable properties which
belong to Party B shall be removed from the premises by Party B, while
the
fixtures (including the added elevator, transformer and relevant
facilities, water and electricity facilities attached to the leased
property by Party B) shall belong to Party
A.
|
| 20. |
Party
B shall vacate the Lease Property within 10 days after the Agreement
expires or terminates and return the Lease Property and its facilities
to
Party A, and Party B shall guarantee the good status of the Lease Property
and its facilities (except normal deteriorations) and settle all the
fees
due and complete relevant transfer procedures. In the event that Party
B
fails to vacate or return the leased property to Party A, Party A shall
be
entitled to repossess the property and a double rent for the overdue
period from Party B.
|
| 21. |
If
Party
B needs to continue the use of the leased property after the Agreement
expires, it shall submit a written notice 3 months prior to the expiration
of the lease term to Party A and Party B shall have the right of first
refusal.
|
3
| 22. |
During
the lease term, any party who fails to perform any obligation defined
in
this Agreement shall be responsible for damages subject to relevant
provisions under this Agreement.
|
| 23. |
Any
dispute arising out of this Agreement shall be negotiated by both parties,
and if no agreement can be reached, either party may bring relevant
lawsuit to a court with jurisdiction.
|
| 24. |
This
Agreement would come into effect on the date of
execution.
|
| 25. |
There
are two originals of this Agreement. Each party shall keep one
original.
|
Party
A
Shenzhen
Qiaotou Equity Cooperation Co.
(Corporate
Seal)
Party
B
Shenzhen
Ritar Power Co., Ltd.
(Corporate
Seal)
Date:
24 April 2007
4
