LEASE CONTRACT
EXHIBIT
10.6
LEASE
CONTRACT
Lessor: General
Tobacco Group Corporation.
Business
License No:
Address:
Xx. 00 Xxxxxxxx Xxxx, Xxxxx
Legal
representative: Xxxxx Xxxxxx
Lessee:
Shandong Yaoyuan Pharmaceutical Company
Business
License No.:
Address:
Legal
representative: Song Yanliang
Party A
and Party B agree to conclude the contract through friendly negotiation with
regards to the lease of workshop according to the Contract Law of the People’s
Republic of China and relevant regulations.
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I.
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Status
of leased workshop
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(1)
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The
Lessor leases the workshop and relevant facilities located in Xx 00
Xxxxxxxx Xxxx, Xxxxxxx Xxxxxxxx, Xxxxx (hereinafter referred to as “The
Property”) to the Lessee.
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(2)
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The
leased area of the workshop is 15532.548 square
meters.
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(3)
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The
Lessor shall guarantee that the quality of The Property complies with the
safety conditions needed by the
Lessee.
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(4)
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The
Property is used as the warehouse and office administration of the Lessee.
If the Lessee intends to transfer the using purpose, it shall get the
written permission of the Lessor, and the transfer charges shall be
reported by the Lessee according to the relevant national regulations; the
Lessee shall assume all the charges owing the change of the functions;
besides, the Lessor will not compensate for the termination caused by any
reasons.
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(5)
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It
adopts the method of chartering for The
Property.
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(6)
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See
the detailed conditions of The Property in the attached
drawings.
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II.
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Cooperation
term
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(I)
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The
cooperation term is set as three years temporarily, and the contract shall
be signed once a year. The lease term of this contract is one year, from
July 1, 2009 to June 30, 2010. The contract covers the validity period of
one year, and it shall be continued through the negotiation of the two
parties after one year, and the rent shall be increased by 5%
annually.
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(II)
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The
Lessor has right to take back the workshop after the lease term expires,
and the Lessee shall return The Property in time and move out of workshop
in advance of two weeks; if the Lessee needs to extend the lease term, it
shall propose within two months in advance of the expiry date, and the two
parties shall resign the contract about the lease matters after approved
by the Lessor. The Lessee has the priority to lease The Property under the
same conditions.
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III.
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Delivery
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After the
effective date of the contract, the Lessor shall deliver The Property by stages
to the Lessee (see the detailed delivery plan in the attachment), and the Lessee
agrees to lease according to the status of The Property and relevant facilities.
The two parties shall sign the transfer list for the status of the
infrastructure when transferring and attach the photos.
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IV.
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Rent
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(1)
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The
deposit for lease of the contract is 200,000 Yuan (Say Two Hundred
Thousand Only).
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(2)
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Rent
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The rent
is 0.25 Yuan for each square meter one day, and is calculated by the actual
delivered area.
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(3)
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Water
& electricity fees
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The
Lessee shall pay the water & electricity fees according to the actual usage
and unified charging standard of the Lessor. The unit price of water is 3.8
Yuan/Cubic Meter, and the unit price of electricity is 1.05
Yuan/Degree.
List
of Leased Warehouse Area of Old Plant Area
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No.
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Name of building
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Usable lease area (square meter)
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1
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1/F
Finished Product Warehouse (molding workshop)
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1337.42
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2
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2/F
Finished Product Warehouse
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1543.99
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3
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3/F
Finished Product Warehouse
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1195.148
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4
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4/F
Finished Product Warehouse
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1463.828
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5
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5/F
Finished Product Warehouse
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1463.828
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6
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1-4/F
Material Warehouse
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5690.62
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7
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Wrapped
Box Workshop
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858.28
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8
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Jiuzhou
Paper Warehouse
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903.834
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9
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Bicycle
Shed
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1075.6
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10
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Total
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15532.548
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