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EXHIBIT 4.13
TRANSLATION
TENANCY AGREEMENT
Lessor (Party A) : Shenzhen Shekou East Empire Industrial Co. Ltd.
Address : 00/X, Xxxxxx Xxxxxxxx, Xxx Xxxxxx, Xxxxxx,
Shenzhen.
"Leased Property Permit" : (ShenNan)D12151-3
Representative :
Address :
Lessee (Party B) : Jetcrown Industrial (Shenzhen) Limited
Address : Block D, Wing Village Industrial Estate,
Shekou, Shenzhen.
Business Registration No. or Identity Card No.:
According to "Shenzhen Special Economic Zone Leased Property
Ordinance" and its executing regulations, and through the sufficient negotiation
of Party A and Party B, they signed this contract.
The contents of the contract are as follows:
1. Party A owns and leases the property situate at 5/F., Block H, Wing
Village Industrial Estate, Shekou, Shenzhen to Party B. The construction
area is 1,030.00 square meters in total.
2. The rental period for the said property is one year, starting from May
20, 2000 to May 19, 2001.
3. Party B can use the property for industrial purpose. Party A should make
sure the leased property can be used for the aforesaid purpose and
comply with the relevant fire prevention and security regulations of the
country. In case Party B use the property for the other purpose, the
approval of Party A should be sought. And Party B should complete all
the reporting and approval procedures in respect of the change of
property use according to the relevant legal regulations.
4. Party A should make sure the usage of the property as mentioned in Term
3 above complies with the relevant rules and regulations. On the other
hand, Party B should make sure the property usage complies with the
rules as well during the rental period.
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5. The rental for the property is calculated at DOLLARS FIFTEEN RENMINBI
(RMB15.00) per square meter of construction area per month. Total rental
is DOLLARS FIFTEEN THOUSAND FOUR HUNDRED FIFTY RENMINBI (RMB15,450.00).
Rental shall be paid on or before 15th day of each month.
6. Party A should hand over the property for Party B use. If the hand over
has been delayed, Party B is entitled to request to defer the effective
date of the agreement, both parties should provide this term in writing.
7. During the rental period, Party A shall be responsible to pay for the
property tax, landuse fees and the rental housing management fees of the
property. Party B shall be responsible for the water, electricity,
cleaning and management charges and related expenses.
8. For the first month, Party A pay on behalf of Party B for those expenses
should be borne by Party B. Party B should repay the said sum within ten
days after the first month of usage. After that, Party B should prepay
the said expenses. The amount to be prepaid equals to the actual sum for
the previous month. The prepayment will be settled in next month. Party
A should provide relevant documents to support the amount he collected.
If Party B prepays the sum less than that for the whole month, Party A
has the right to request Party B to do so. If Party B doesn't pay for a
month, Party A is entitled to stop the provision of the relevant
facilities for Party B's use. In case both parties provided otherwise,
it will follow their agreement.
9. This agreement sets out to provide the deposit guarantee. When Party A
hand over the property, he is entitled to collect a guarantee sum which
equals to two months' rental i.e. DOLLARS THIRTY THOUSAND NINE HUNDRED
RENMINBI (RMB30,900.00). After receiving the guarantee sum from Party
B, Party A should provide receipt to Party B. Both parties should take
the initiative to comply with all the terms set out in this agreement.
If either party break the contract, then he should bear the legal
responsibilities arising from this break.
10. Party A should ensure the security of the property and its internal
facilities complies to the relevant provisions of rules and regulations.
Party B should use the property in normal way and protect the internal
facilities of the property and prevent any abnormal damage. Upon the
expiry of the agreement, Party B should hand over the property on time
and ensure the property and its facilities are in good conditions
(except normal depreciation), and should settle all those expenses borne
by Party B.
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11. During the rental period, if there is an occurrence of damage or out of
order of the property and its facilities which will prevent its safe and
normal use, Party B should inform Party A in time and carry out
effective measures; Party A after receiving Party B's notice should
carry out repairs and maintenance works within fifteen days; if Party B
cannot reach Party A or Party A refuses to repair, Party B can repair it
instead after getting the certification of the agreement registration
authority. Party A should bear the expenses arising from any maintenance
(including those paid by Party B on behalf) under this term.
12. If there is an occurrence of damage or out of order of the property and
its facilities which arising from Party B's improper or unreasonable
use, Party B should bear this responsibilities and repair or provide
compensation in time. If Party B refuses to repair or compensate, Party
A can repair it on behalf of Party B after getting the certification of
the agreement registration authority. The repairs and maintenance
charges should be borne by Party B.
13. During the tenancy period, if Party A wants to alter, expand or renovate
the property because of needs, with the agreement of Party B and
approval of the relevant government department, improvement works can be
carried out then. Both parties should sign a separate written agreement
on this area. Similarly, Party B can renovate the property with the
agreement of Party A and the approval of the relevant government
department. Regarding this area, a separate written agreement is
required as well.
14. Without the written agreement of Party A, Party B is not allowed to
sublet the property to third party either partly or wholly. With Party
A's agreement to sublet the property, Party B should complete the
registration procedures with the Leasing Property Department. But the
period of sublet should not be longer than that of the original tenancy
agreement made between Party A and B. Party B should also make sure the
third party will not re-sublet the property to the fourth party.
15. During the tenancy period, Party A wants to sell the property either
wholly or partly, he should give one month notice to Party B. Party B
has the first priority to purchase the property under the same
conditions offered by the third party. If the property right has been
transferred to a third party, Party A should make sure the new owner
completed the contract as if the property right hasn't change.
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16. During the tenancy period, the contract will be terminated automatically
under either one of the following conditions:
(1) an occurrence of natural disasters or accident, and as a result
the contract cannot be completed;
(2) the government decides to make a requisition of the land on
which the aforesaid property builds and the property has to torn
down as a result;
(3) the "Leased Property Permit" of Party A becomes void.
If termination of contract is due to (3) above, Party A should indemnify
Party B for any loss incurred.
17. Party A reserves the right to terminate the contract because of either
one of the following conditions. Party B should indemnify Party A for
any loss incurred by the latter because of the termination of the
contract.
(1) Party B doesn't pay the rental for more than two months;
(2) The miscellaneous expenses should be paid by B becomes overdue;
(3) Without the permission of Party A and the relevant government
department, Party B change the use of the property;
(4) Party B in breach of the provision set out in Item (12), in
other words, he refused to bear the responsibility of repair and
maintenance or paid the related expenses and as a result, the
property becomes serious damaged;
(5) Without the written permission of Party A and the relevant
government department, Party B renovate the property;
(6) Without the permission of Party A, Party B sublet the property
to third party.
Party A terminates the contract based on the aforesaid situations, he
should order Party B to move out and take possession of the property by
giving a written notice. Any remaining balance of the prepaid amount
made by Party B should be returned to Party B. But Party B has no right
to request the refund of rental deposit.
18. Party B reserves the right to terminate the contract because of the
following conditions. Party A should compensate Party B for any loss
incurred arising from the termination.
(1) Party A delayed the handover of the property for more than two
months;
(2) Party A in breach of the contract term (4), as a result, the
property cannot be used for the purpose as stated before;
(3) Party A in breach of the contract term (11), in other words, he
refused to bear the responsibility of repair and maintenance or
paid the related expenses, and as a result, the property cannot
be used for the purpose as stated before;
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(4) Without the agreement of Party B and the approval of the
relevant government department, Party A carries out the
alteration, expansion, or renovation works.
Party B terminates the contract because of the aforesaid conditions, he
should give a written notice to Party A and he should move out at once.
In this situation, Party B has the right to request Party A to
compensate two times of the rental deposit, and refund the excess amount
of the prepayment.
19. Upon the expiry of the tenancy agreement, if Party B wants to renew the
contract, he should inform Party A one month before the expiry. If Party
A continues to rent out the property, Party B should be given a first
priority to be the lessee under the same conditions as offered by third
party. If both parties can reach an agreement on renewal, they should
sign a new contract which should be re-registered with the Contract
Registration Registry.
20. Upon the expiry of the contract, Party B should move out within fifteen
days of the expiry and then hand over the same to Party A. Party B
doesn't move out and hand over the property, Party A can xxx Party B
through Court of People.
21. If Party B doesn't pay the rental, he should pay a delay charge to Party
A. The delay charge should be number of days times 3% of the monthly
rental.
22. If Party B sublet wholly or partly of the property to third party
without getting the permission of Party A, he is then required to pay an
indemnity.
23. If either party do not comply with the terms of the contract, and any
loss of the other party arises from this, the party who break the
contract should indemnify the actual loss and expected income of the
victim party.
24. If both parties want to insert or delete terms, it can be made in the
Supplementary Clause. The provisions of Supplementary Clause and the
main contract are of equal validity. If there shall be anything that is
not provided for by this agreement, the parties can make any supplement
after negotiation, and the supplement will of equal validity with the
main contract only after the certification of the Contract Registration
Registry.
25. If there shall be any dispute arising through fulfillment, it should be
solved by the discussions and negotiations of the parties. If there
shall be no agreement made in negotiation, mediation can be made through
the Contract Registration Registry or (1) request arbitration from the
Shenzhen Arbitrating Committee (2) raise a prosecution in People's
Court. (Both parties should choose either one of the above two ways and
tick as appropriate on the contract). Parties A and B choose (2) in this
respect.
26. This contract is written in Chinese.
27. This contract is made in four copies, each party will keep one and the
remaining two will be kept in the Contract Registration Registry.
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28. This contract takes effect after signed by two parties.
Party A (Signature & Chop): Shenzhen Shekou East Empire Industrial Co.
Ltd.
Authorized Representative: (Signed)
Contact Telephone No.:
Bank Account No.:
Authorized Agent (Signature & Chop):
Party B (Signature & Chop): Jetcrown Industrial (Shenzhen) Limited
Authorized Representative: (Signed)
Contact Telephone No.:
Bank Account No.:
Authorized Agent (Signature & Chop):
August 23, 2000
Register (Signature & Chop): (Signed)
August 23, 2000
Contract Registration Registry (Signature & Chop): (Signed)
August 23, 2000
