EXHIBIT 4.8
TRANSLATION
TENANCY AGREEMENT
Lessor (Party A) : Shenzhen Shekou Yu Yi Shareholding Co. Ltd.
Address : 1/F, Yu Yi Building, Yu Yi Estate, Shekou
Shenzhen
"Leased Property Permit" : D13323
Representative :
Address :
Lessee (Party B ) : Jetcrown Industrial (Shenzhen) Limited
Address : 0/X, Xxxxx X, Xxxx Xxxxxxx Xxxxxxxxxx Xxxxxx
Shekou
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 1/F-2/F, Block A,
Wing Village Industrial Estate, Xxx Xxxx District, Shenzhen (two
floors in total) to Party B. The construction area is 2,051.00
square meters in total.
2. The rental period for the said property is three years, starting
from 1 June 2002 to 31 May 2005.
3. Party B can use the property for industrial purpose. 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. And such change
should be comply with the relevant fire prevention and security
regulations of the country.
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.
5. The rental for the property is calculated at DOLLARS TWENTY SIX
RENMINBI (RMB26.00) AND EIGHTEEN RENMINBI (RMB18.00) per square
meter of construction area per month for 1/F and 2/F respectively.
Total monthly rental is DOLLARS FORTY FIVE THOUSAND NINETY FOUR
RENMINBI (RMB45,094.00). Rentals shall be paid on or before the
15th day of each month.
6. Party A should hand over the property for Party B use before 1
June 2002. If the hand over date is later than that of the
aforementioned, 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 charges.
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, equals to three months' rental. The guarantee sum
is DOLLARS ONE HUNDRED EIGHTEEN THOUSAND SIX HUNDRED SIXTY EIGHT
RENMINBI (HKD118,668.00). 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 breaks 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.
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
three 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 properly, 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.
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;
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;
(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;
(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;
(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 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).
26. This contract is written in Chinese.
27. This contract is made in four copies, Party A gets one copy and
Party B gets one copy and one copy kept in the Contract
Registration Registry and one copy to the relevant department.
28. This contract takes effect after signed by two parties.
Party A (Signature & Chop):
Authorized Representative:
Contact Telephone No.: 0000000
Bank Account No.:
Authorized Agent (Signature & Chop):
Party B (Signature & Chop):
Authorized Representative:
Contact Telephone No.: 0000000
Bank Account No.:
Authorized Agent (Signature & Chop):
Register (Signature & Chop):
May 29, 2002
Contract Registration Registry ( Signature & Chop ):
May 29, 2002
