Agreement Concerning the Leasing of Land, Buildings and Motor Vehicles
(LJ102-4)
Party A: Liuzhou OVM Joint Stock Co., Ltd.
Party B: Liuzhou OVM Construction Machinery Co., Ltd.
1. Party A agrees to lease to Party B land with a gross area of 60,000 square
meters. The annual rental rate shall be Rmb 6.00 per square meter.
2. Party A agrees to lease to Party B production workshops, warehouses and
offices with a total gross area of 9,463 square meters. The annual rental
rate shall be Rmb 5.00 per square meter.
3. The term of the lease will be equivalent to the tenure of Party B.
4. The rental rate for the land, buildings and motor vehicles will be
adjusted every three years with each increment limited below 10%.
5. During the term of the lease, all government taxes on land and
buildings are borne by Party A.
6. During the term of the lease, Party B will be responsible for
repairs and maintenance of the buidlings.
7. Party A agrees to lease to Party B 22 transportation vehicles at an annual
rental of Rmb 13,500.00 per vehicle. The lease term will be for a period
of three years.
8. All taxes with respect to the ownership and use of the transporation
vehicles will be borne by Party B during the lease term.
9. All claims or disputes arising from the use of the above land, buildings
and motor vehicles at the time these land, buildings and motor vehicles
were owned by Party A and before the effective date of this Agreement will
be the sole responsibility of Party A.
10. During the term of the lease, if Party B, upon the approval by the Board
of Directors of Party B, offers to purchase the land, buildings and motor
vehicles under the lease, Party A shall agree to sell. The selling price
will be determined according to the prevailing market condition and the
relevant government regulations at the time such offer is made.
11. This Agreement shall come into effect at the date when the corporate
representatives of both parties sign and stamp the common seals on the
Agreement.
For and on behalf of
Party A: Liuzhou OVM Joint Stock Co., Ltd.
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(Xx Xxx Sen)
Corporate Representative
For an on behalf of
Party B: Liuzhou OVM Construction Machinery Co., Ltd.
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(Ching Lung Po)
Corporate Representative
Dated June 5, 1995
