Summary English Translation Lease Agreement
Exhibit
10.3
Summary
English Translation
Shenzhou
Building Lease Contract
Contract
serial no.: JM – C – 001
Lessee:
Shenzhou Tianchen Technology Industry Co., Ltd.
Lessor:
Forlink Technologies Co. Ltd.
Date of
contract: March 12, 2009
In
accordance with PRC Contract Law and relevant rules and regulations, the Parties
negotiated towards the following contract for Lessor’s Lease of Shenzhou
Building (“Building”):
Article I: Definitions and
Translations
Article II: Lease
Term
2.1
|
Leased
premises:
|
Shenzhou
Mansion, 9th Floor,
Ste. 902-917 (1,527 square meters)
Xx. 00
XxxxxXxxxXxx Xxxxx Xxxxxx, Xxxxxxx Xxxxxxxx, Xxxxxxx
2.2
|
Lease
term: 2 years, from March 30, 2009 to March 29,
2011.
|
2.3
|
Property
management fee is calculated starting from the date of premise
remodeling.
|
2.4
|
During
the rent-free period, property management fee is still due. Lessor shall
be responsible for any remodeling or move-in expenses
incurred.
|
Article III: Rent Amount and
Payment
3.1
|
Rent
amount: 3.6 RMB per square meter per day, 167,206 RMB per month
total.
|
3.2
|
Rent
for each month is due in full by the fifth day of such month. Rent for the
first month is due on the first day of the rent
period.
|
3.3
|
Rent
for the leased premises does not include property management
fees.
|
3.4
|
If
Lessor fails to pay rent fully and on time, 5% of the unpaid balance is
charged as a late fee each day until the amount due (including late fees)
is fully paid.
|
Article IV: Deposit and
Payment
4.1
|
For
this Contract to go into effect, Lessor shall a deposit to Lessee equal to
two months rent—RMB 293,184 (as calculated from the 2007 lease rate, and
which Lessor does not have to pay if it already paid the deposit from the
2007 contract). This represents Lessor’s guarantee for all the duties and
stipulations in this Contract.
|
4.2
|
If
Lessor does not violate any Contract stipulations during the entirety of
the Lease period, and timely pays in full all rental, management, and
other necessary fees, Lessee shall refund the full deposit amount within
15 days after the Lease period ends, without interest on the
deposit.
|
4.3
|
During
the lease, if Lessee has upheld its duty to honor the Contract, and Xxxxxx
falls behind in rent, management fees, late fees, or other fees, Lessee
has power to deduct the amount owed from the deposit without notice, or
deduct from the deposit for compensation for Xxxxxx’s losses suffered, but
with written notice to Lessor. After receiving written notice, Lessor has
15 business days to pay the amount to be deducted from the deposit;
otherwise, Lessee shall have the right to expedite deduction from the
deposit, repossess the leased premises, and charge losses to the Lessor
according to Contract
stipulations.
|
|
If
Lessor has objections to the terms of the deposit, it may negotiate with
Xxxxxx to resolve the dispute, or if negotiation fails to produce
agreement, bring the matter to a Beijing arbitrator in accordance with
paragraph 17.1 of this Contract.
|
4.4
|
Without
Lessee’s written consent, Lessor may not use the deposit to supplement
rent, management, or other fees.
|
Article V: Usage of Leased
Premises
5.1
|
Lessor
shall use the leased premises for office purposes only. If Lessor uses the
lease for any other purpose without Lessee’s consent, Lessee shall provide
written notice for Lessor to correct its conduct. If Lessor fails to do so
after a reasonable time, Lessee may terminate the Contract, repossess the
leased premises, and hold Lessor liable for compensation for all relevant
fees and incurred losses.
|
5.2
|
Lessor
shall not use or permit the use of any part of the leased premises as a
broadcast studio, for religious or any other ceremonial activities, nor
for gambling or any other illegal activity. During the lease period,
Lessor shall not cause harm or endangerment to Lessee or any other owner,
tenant, or user of the Building.
|
5.3
|
Lessor
shall not use the Building interior, exterior, nor any other portion of
the Building visible from the outside for propaganda advertisements,
lamphouse, advertising logos, decorations, flags/banners, posters, or
other items. Lessee has power to dismantle such items and hold Lessor
liable for the fees.
|
Article XVI:
Notice
16.1
|
Notices
and requirements relevant to this Contract shall be distributed in
writing, and be delivered via registered mail or personal courier to the
most recent business address on record of the recipient Party. Registered
mail shall be deemed received on the seventh day after mailing or the date
of delivery, whichever is
earlier.
|
16.2
|
Lessee
may deliver notices to Lessor at the address of the leased
premises.
|
Article XVII: Dispute
Resolution
17.1
|
If
either Party has any issue or objection with the terms of this Contract’s
signing, implementation, violation, termination, invalidity, or any other
condition, it should be promptly resolved through amicable negotiation. If
either Party refuses to negotiate or negotiation has not produced a
resolution after 30 days, either Party may bring the matter before a
Beijing arbitration committee. The arbitration decision is final and
binding on both Parties.
|
17.2
|
During
the dispute resolution process, both Parties should continue to uphold and
honor this Contract.
|
Article XVIII: Other
Matters
18.1
|
Any
Contract appendices and supplementary agreements signed by the Parties are
integral to and inseparable from the Contract. They have the same binding
force of law as the Contract. In the event contractual terms conflict, the
Parties should negotiate to address the
conflict.
|
18.2
|
Aside
from other stipulations, neither Party may request the other to relinquish
any rights, including the right to demand
compensation.
|
18.3
|
This
Contract’s contents, effectiveness, interpretation, implementation,
modification, and termination shall be governed under PRC
Law.
|
18.4
|
This
Contract shall be produced in quadruplicate, two copies for each Party.
Each copy has full legal enforceability. The Contract shall become
effective upon signature by both
Parties.
|