Lease Contract for Factory Area and Buildings
EXHIBIT
10.30
Lease
Contract for Factory Area and Buildings
Contracting
parties
Xxxxxx
(hereinafter referred to as Party A): Beijing Hantian Xinda Technology
Development Co.
Leasee
(hereinafter referred to as Party B): Beijing Wowjoint Machinery
Co.
In
accordance with the provisions of Contract Law of the People's Republic of China
and applicable laws and regulations, Party A and Party B enter into this
contract through friendly consultation regarding Party A’s lease of workshops
and buildings to Party B to define both parties' rights and
obligations.
Article 1
Party A warrants that the factory area and buildings to be leased comply with
relevant provisions regarding to land and building lease, to ensure Party B’s
normal use during lease period.
Article 2
Location, area, decoration and facilities of factory area, workshops and
buildings.
1. Party
A will lease to Party B for use as production and operation, office and staff
dormitory buildings the factory area located in Xxxxx Xxxxxxxxxx Xxxx,
Xxxxxxxxxx Xxxx, Xxxxxxxx Xxxxxxxx, Xxxxxxx, which covers an area of 17331m2, with a
construction area of about 5715m2,
including whole compound, site, roads, workshops, main office building, a
two-storey dining building on the west side, a two-storey garage on the east
side, one-storey building on the north side, southern and northern security
rooms (hereinafter referred to as xxxxxxx xxxx, xxxxxxxxx).
0. Party
A’s existing factory area and buildings cannot meet Party B’s needs for
production and staff accommodation, Party B shall have the right to make
modifications and renovations to the buildings and facilities in the workshops
and area, provided that the whole building structure is not
damaged.
Article 3
Party A shall provide industrial and commercial licenses and ownership
certificate (or agreement) of factory area and buildings and Party B shall
provide industrial and commercial license documents. After verification, both
parties may make copies for record. All copies shall be only for use of this
lease.
Article 4
Lease period and use purpose
1. The
lease period for this factory area and buildings is 5 years, commencing on
August 30, 2009 and ending on August 30, 2014.
2. Party
B undertakes to Party A that it leases the factory area and buildings for
production, processing, office, and staff board and lodging use.
3. Up
expiry of lease period, Party A shall have the right to retract the factory area
and buildings, and Party B shall return them duly.
Article 5
Rent and payment method
1. The
annual rent for the factory area and buildings is RMB900,000 (nine hundred
thousand RMB only in words).
2. The
rent will be paid in the following method:
(1) The
rent begins from August 30, 2009, and will be paid one time each year, with
RMB900,000 paid each time. In case of financial difficulty, Party B shall pay
not less than RMB450,000 for the first payment each year, and the remaining
amount shall be paid within 6 months.
(2) Party
B may reside in on the date when the contract is signed, and Party A shall
conduct key takeover. Party A should clear all non-rental articles such as
machines and equipment, sundries, stones, glass sheets from the factory area and
buildings, otherwise Party B will clear them as rubbish, then the factory area
and buildings will be handed over to Party B for full management.
(3) The
rent shall be paid on September 1 and March 1 each year.
Article 6
Relevant costs and taxes during lease period
1. Costs
to be borne by Party A: various taxes relating to buildings and lands imposed by
the government during lease period shall be paid by Party A.
2. Party
A’s existing building conditions cannot meet Party B’s needs for production,
operation, office and staff board and lodging, Party B shall have the right to
make partial modifications and renovations to the office building, dormitory,
dining room, garage, workshops and yard, and also have the right to dispose such
modifications.
3. The
added equipment and facilities invested by Party B shall be the properties of
Party B, and Party B will, upon expiry of lease period, retract all equipment
and facilities that are added and moved in during lease period. (including 4
gantry cranes, cables, slide lines, power cables, power box, telephone cables,
network optical cables in the workshop, rails)
4. On the
date when the contract is signed, both parties will check water meter and
electric meter readings, and from this date, Party B will bear water, electrical
and heating expenses. Those expenses before that date shall be at Party A’s
charge. Party A ensures that original water, electric and heating facilities are
in good condition before handover.
5. All
costs incurred and safety regarding the office building reserved by Party A in
the factory area leased by Party B shall be the responsibility of Party A, and
the personnel of Party A are required to observe Party B’s safety and guard
system, and shall not affect Party B’s normal production and office
order.
6. Party
A shall, upon receipt of payment, provide Party B with effective and formal
invoice.
Article 7
Building repair and use
1. During
lease period, Party A shall warrant use safety of the leased factory area and
buildings.
2. Repair
of buildings in the factory area shall be the responsibility of Party A. Party A
shall in a timely manner, repair the problems caused non-artificially to the
main structure of buildings (building/water proof), main power line, main water
pipes and Party A’s other original facilities. Party A shall, upon receipt of
notice from Party B, perform repair within two days. (Other repairs shall be the
responsibility of Party B)
3. Party
B shall reasonably use its leased factory area, buildings and affiliated
facilities. Should any damage occur to the buildings and facilities by virtue of
improper use, Party B shall immediately repair it or compensate for it. After
authorization of Party A, Party B may perform decoration or increase building
construction area.
Article
Alteration, rescission and termination of contract
1. Party
B shall have the right to terminate the contract if Party A has one of the
following acts:
(1) Party
A fails to perform building repair obligations, and Party B’s normal operation
and use are severely affected by Party A’ reason.
2. Party
A shall have the right to terminate the contract and retract the leased building
during lease period of factory area and buildings if Party B has one of the
following acts:
(1) lend
the leased buildings without Party A’s written consent.
(2) due
rent unpaid for more than 3 months
3. Party
B shall notify Party A in writing of lease renewal 3 months before lease period
expiry if it intends to renew the lease. If Party A still intends to continue
lease after expiry, Party B shall have preferential lease right under identical
conditions.
Article 9
Responsibilities for breach of contract by Party A
1. Party
A shall warrant Party B’s normal use of factory area and building during lease
period. If Party A fails to perform repair obligations or Party B performs
repairs in case of emergency, Party A shall pay to Party B or such repair
amounts shall be deducted from rent, provided that Party B provides effective
voucher.
2. Where
Party A breaches the contract by retracting the factory area and buildings in
advance, Party A shall pay to Party B an amount of 5% of annual rent as penalty.
If such penalty amount paid is not sufficient to cover Party B’s damages, Party
A shall also be liable for compensation.
3. Should
this contract be invalidated and Party B be prevented from performing
production, or clerical and managerial affairs, or providing accommodation for
its employees by virtue of any dispute over Party A’s ownership of the workshop,
over Party A’s illegal leasing of the factory area and workshop, or any other
dispute of financial or legal nature in which Party A is involved, Party A shall
indemnify Party B for any losses incurred because of the said invalidation of
contract.
4. Where
removal or modification of the leased factory area and buildings is required by
national policy, Party A shall compensate Party B for losses, provided that such
losses are caused to Party B.
5. In the
event of contract termination due to the above reasons, the rent shall be
calculated against actual number of days.
Article 9
Responsibilities for breach of contract by Party B
1. Party
A shall have the right to terminate the contract by retracting the factory area
and building if Party B has one of the following acts during the lease period,
and Party B shall pay to Party A an amount of 5% of total contract rent as
penalty.
(1) to
remove or modify building structure without Party A’s written consent or damage
building;
(2) to
conduct illegal activities by use of the buildings;
(3) due
rent unpaid for more than 3 months;
2. Party
B shall notify Party A of advance termination of contract if Party B intends to
do so during the lease period, otherwise Party B shall pay to Party A an amount
of 5% of annual contract rent as penalty.
Article
11 Supplementary conditions may be agreed on matters not mentioned herein,
through agreement between both parties. Such supplementary conditions and
attachments shall integral part of the contract, and shall have equal legal
effect.
Article
12 Settlement of dispute
Any
disputes arising under the contract shall be negotiated by both parties. In case
no agreement can be reached, such disputes may be referred to the court that has
the jurisdiction over the matter.
Article
13 Workshop modification requirements, as an attachment of the contract, shall
have equal legal effect.
This
contract shall come into force after it is signed (sealed) by both parties.
There are originals of this contract and its attachment and
each party holds original. All originals shall have equal legal
effect.
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