LEASE CONTRACT
EXHIBIT
10.4
LEASE
CONTRACT
Lessor:
Bozhou Fengyi Chinese Medicine Development and Research Institute (hereinafter
referred to as Party A)
Lessee:
Anhui Xuelingxian Pharmaceutical Co., Ltd. (hereinafter referred to as Party
B)
Party A
and Party B agree to conclude the contract according to the Contract Law of the
People’s Republic of China and relevant regulations.
Article
1. Party A leases the workshop (located at East Liuge Village, Weiwu Road,
Bozhou, with the building area of 10000 square meters and usable area of 3000
square meters) to Party B.
Article
2. Lease term
The lease
term will be from Aug 1, 2008 to July 31, 2023, covering 15 years.
Party A
has right to terminate the contract and takes back the house if one of the
following situations occurred:
(1)
|
Party
B transfers, subleases, lends, jointly operates, buys share or exchanges
the house with others;
|
(2)
|
Party
B uses the house to take illegal activities, which damages the public
interests;
|
Party B
has the priority to lease the house after the contract expires, and it can
extend the lease term with negotiation of Party A if it cannot find the house
promptly after the contract expires.
Article
3: Rent and rent paying agreement
The rent
is 1.2 million Yuan, and Party B shall pay 100000 Yuan to Party A before 15 of
each month as the monthly rent. The water & electricity fees shall be
settled separately.
Article
4: Repairing and decoration of house
Party A
takes charge of repairing of the house. Party A shall take the examination of
the facilities, and it shall guarantee that there is no leakage, and the tap
water, sewage and lighting, doors& windows are in good conditions, so as to
ensure the normal and safe use of Party B.
The
repair scope and standard shall be performed by Urban Construction Department
(87) X.X.X.X.Xx. 13 Notice.
Party B
shall positively assist when Party A repairing the house.
Through
the negotiation of the two parties, Party A will contribute for the repairing
work and organize the construction according to the maintenance
scope.
Party B
can decorate the house without affecting the house structure, but the scale,
scope, process and materials shall be approved by Party A, and then the
construction work can be carried out. The two parties shall discuss about the
materials fees and ownership of the decoration objects after the contract
expiring.
Article
5: Change of two parties
1.
|
If
Party A transfers the house ownership to the third party according to the
legal procedures, this contract continues to take effect to the new house
owner without the agreement.
|
2.
|
Party
A shall notify Party B three months in advance of selling the house in the
written form, and Party B has the priority to purchase the house under
same conditions.
|
3.
|
Party
B shall get the approval of Party A if it intends to exchange the house
with others, and Party A shall support the reasonable demand of Party
B.
|
Article
6: Responsibility for breach of contract
1.
|
If
one party doesn’t comply with the terms of Article 4, the party shall
compensate 50000 Yuan for another
party.
|
2.
|
If
Party A receives the additional fees except for the rent, Party B has
right to refuse.
|
3.
|
Party
A has right to stop transferring if Party B transfers the house to other
people independently.
|
The two
parties agree to handle the economic claim issues of above matters under the
supervision of the issuing organ of the contract.
Article
7: Conditions of disclaimer
1.
|
The
two parties take no responsibilities if the house is damaged or Party B
has loss owing to the force
majeure.
|
2.
|
The
two parties shall not take the responsibility for each other if they have
the loss that the house is removed or rebuilt owing to the demand of
municipal construction.
|
If the
contract is terminated owing to the above reasons, the rent will be calculated
by the actual using time, and it will refund the difference.
Article
8: Disputes settlement
Any
disputes resulted from the contract shall be negotiated by the two parties; if
it fails to be solved in this way, any party can apply for mediation in the
house lease management organ; and it can apply for arbitration to the
Arbitration Committee of Economic Contract of the Municipal Administration of
Industry and Commerce if the mediation is failed, and it can also take the legal
action to the People’s Court.
Article
9: The matters unmentioned herein can be signed as the supplementary agreement
by the two parties, and the supplementary agreement will have the same effect
with the contract after reporting it to the house lease management organ and
getting the approval.
This
contract is in duplicate, with Party A and Party B holding one
respectively.
Lessor:
Bozhou Fengyi Chinese Medicine Development and Research Institute
Legal
representative: Xxxx Xxxxxx
Lessee:
Anhui Xuelingxian Pharmaceutical Co., Ltd.
Legal
representative: Wang Shunli