Property Rental Contract
Landlord: Shanghai
▇▇▇▇▇ CNC equipment Ltd. Co,
Tenant: Zhuhai
King Glass Engineering Ltd. Co. (Shanghai)
In
accordance of “Contract law of People’s Republic of China” and “Shanghai rental
property regulations” (hereon called “Regulations”), the Landlord and the Tenant
would enter the rental contract on a mutual agreement; the contract should
be
formed on the basis of justice, trust, fairness and honesty.
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1.
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Condition
of Rental Property
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1.1 The
subjected property, which the landlord has the legal ownership of, is located
in
FENGXIN (District/ County) DAYIE RD (Road) South (TAIZHONGGANGHE) (No.).
Total
construction area of the subjected property is 8811 m2 (Total of 3 buildings;
1
is still under construction, rent payment will start upon the project completion
of the building), function of property was classified as industrial purpose.
See
attachment for plan of subjected property.
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2.
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Rental
Purpose
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2.1
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The
tenant assures the subjected rental property would be used as
a
workshop/factory for fabrication of materials for building curtain
wall
system, the tenant would comply with all regulations of national
and
Shanghai regarding of usage of property and property management.
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2.2
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The
tenant promises that within the rental period, prior to obtaining
written
permission from the Landlord and approvals from local authorities,
the
functional purpose of the subjected property would not be altered.
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3.
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Handover
Date and Leasing Period
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3.1
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According
to the mutual agreement between the Landlord and the Tenant,
the Landlord
would handover 2 buildings to the Tenant on the 8th
of
July, 2005, total construction area is 5854 m2. The third building
with a
construction area of 2927 m2, including a security room 30 m2,
would start
rental payment after completion and handover to
tenant.
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Lease
Period: The
lease
period of the subjected property is from 8th
of July,
2005, till 7th
of July,
2011
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3.2
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Upon
the end date of the lease, the Landlord has the right to reclaim
the
property and the tenant shall return the property in a timely
manner. If
the tenant has to provide a written document to the Landlord
3 months
prior to the expiry date of the current contract if the tenant
wishes to
continue the lease; a separate rental agreement should be reached
between
Landlord and the Tenant, cost of rent should renegotiate.
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4.
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Cost
of Rent, Payment Method and Time
Limits
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4.1
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The
Landlord and the tenant agreed that the subjected property per
day, per m2
for the first three years (from 8th
of
July, 2005 to 6th
of
July, 2008) of the leasing period is $0.37 RMB/m2/day, (rent
payment)
Total monthly rent payment (3 buildings) is RMB 99160.46, (NINTY
NINE
THOUSAND ONE HUNDRED AND SIXTY YUAN AND FOUR ▇▇▇▇ ▇▇▇ FEN). Before
the
handover of the third building, the total rent payment is RMB
65881.89,
(SIXTY FIVE THOUSAND EIGHT HNDRED AND EIGHTY ONE YUAN AND EIGHT
JIAO JIU
FEN). Security room monthly rent is RMB 337.63/m2, last three
years of the
lease, the rent is RMB 0.4/m2/day, total monthly rent payment
is RMB
107200.50 (ONE HUNDRED THOUSAND AND SEVENTY TWO HUNDRED AND FIVE
JIAO).
Prior to the handover of the third building, total monthly payment
is RMB
71223.67 (SEVENTY ONE THOUSAND TWO HUNDRED AND TWEENTY THREE
▇▇▇▇ AND SIX
JIAO AND SEVEN FEN). Security room monthly rent is RMB
365/m2
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4.2
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The
tenant should pay the rent 10 days in advance of the payment
due date for
next month, paid before use. If overdue, the penalty of 2% of
daily rent
per day will be imposed.
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4.3
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Payment
method for tenant: Telegram Transfer or Check, Quarterly payment.
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5.
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Rental
Bond and Other Expenses
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5.1
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According
to the agreement between the Landlord and tenant, upon the handover
of the
property, the tenant should provide a rental bond, equivalent
to 1 month
rent, amount to RMB 99160.46 to the Landlord. Prior to the handover
of the
third building, the rental bond is RMB 65881.89. The Landlord
should
provide a receipt or equivalent document to the Tenant after
receiving the
rental bond from the Tenant.
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Upon
the
termination of the rental contract, the Landlord should deducted all necessary
expenses which stated in the contract the tenant should be responsible
for, from
the rental bond and return the rest of the amount to the Tenant free of
interest.
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5.2
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During
the rental period, the Tenant should be responsible for all operational
expenses, such as electricity, water, gas, telephone, etc. All
other
expenses occurred from the property should be the Landlord’s
responsibility.
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6.
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Property
Usage Requirement and Maintenance
Responsibilities
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6.1
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During
the rental period, the tenant should inform the Landlord immediately
when
damages or building faults was found on the property: The Landlord
should
fix the damages/faults within 3 days after received the complaint
from the
tenant. If the Landlord fail to fix the damages/faults within
the period
stated above, the tenant could fix the problems on its own, costs
can be
deducted from the monthly rent payment.
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6.2
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During
the rental period, the Tenant should care for the property at
a reasonable
level. Any damages or faults caused by the in proper conduct
or use by the
Tenant, the Tenant should be responsible for the repair of such
damages,
if the Tenant failed to comply, the Landlord could repair instead
and all
costs would be paid by the Tenant.
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6.3
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During
the rental period, the Landlord should ensure the property is
at a fair
condition, which is safe and operable. 3 day notice should be
served if
any inspection or maintenance to the property would be carry
out by the
Landlord. The Landlord should try to minimized the effect of
the Tenant
during such activities.
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6.4
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Aside
from the appendix 3 of this contract, the Tenant should need
any other
maintenance or require any extra equipment from the Landlord,
a written
permission from the Landlord and approvals form local authorities
is
required.
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7.
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Property
Conditions Upon the Termination of
Contract
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| 7.1 |
Unless
the Landlord agreed to extend rental contract with Tenant, the
Tenant
should return the property to the Landlord within 10 days of
the expiry of
the rental period. Per day of overdue without the consensus of
the
Landlord, penalties of double the rent /m2/day would be imposed
upon the
Tenant.
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8.
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Sub-letting,
Transfer of lease and exchange
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8.1
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Unless
the Landlord agreed within this contract’s supplementary, during the lease
period, the Tenant should seek written approvals from the Landlord
before
sub-letting part or all of the property to
others.
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8.2
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During
the rental period, if the Landlord has the need to sale the subjected
property, the Tenant should received a notice 3 months prior
to the sale,
and the Tenant has the priority to purchase the property under
equivalent
terms.
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9.
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Termination
of Contract
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9.1
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The
Landlord and the Tenant agreed that under the circumstances listed
below,
the contract can be terminated without any responsibilities on
either
parties:
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1.
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The
usage right of the land, which the property is situated, was
recalled by
the local authorities according to the laws of
P.R.China
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2.
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The
property was recalled due to public
interest
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3.
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The
property is included in the demolition zone for city
rebuilding
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| 9.2 |
The
Landlord and the Tenant agreed that under the circumstances
listed below,
one party can terminated the contract by issue a written notice
to the
other party. The party which did not comply with the contact
should pay
the other party double the monthly rental payment as a penalty;
if there
is damages occurred, and the penalty can not cover the full
amount of the
damages caused, the difference between the penalty and the
full damage
amount should be paid by the party that caused the
damages:
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1.
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10
days after the Landlord can not handover the property in time
and the
tenant has informed the Landlord
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2.
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The
property did not meet the property requirement stated in the
contract ; or
the property has faults that might affect the safety of the
Tenant
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3.
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The
Tenant changed the function of the property without the consensus
of the
Landlord, which caused damages to the
property
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4.
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Structural
damages caused by the Tenant
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5.
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The
Tenant sub-let or sale the leasing right of the property without
the
consensus of the Landlord
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6.
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The
Tenant fails to pay the rental payment more than 1 month
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10.
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Responsibilities
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10.1
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The
Landlord should repair any damages or structural faults at the
time of
handover within 7 days of the handover date. If the reparation
fail to
occur after the 7 day, the Landlord should agree to lower the
rental cost
and amend the clause for rent payments
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10.2
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The
Landlord is responsible for any damages or lose the Tenant suffered
due to
the Landlord failed to inform the Tenant on restrictions on Mortgages
and
ownership of property prior to the
lease
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10.3
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The
Landlord is responsible if during the rental period, the Landlord
fail to
comply with the contract in terms of maintenance responsibilities
and
caused damages to the property and Tenant’s personal or property
damages
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10.4
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During
the rental period, if the Landlord one-sidedly terminated the
contract
without any condition stated in this contract, the Landlord should
pay the
Tenant double the monthly rental payment as penalty. If the penalty
cannot
cover loses of suffered by the Tenant, the difference should
be paid by
the Landlord as well.
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10.5
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The
Landlord has the right to request the Tenant to revert the properties
to
original status if the Tenant has removed, increased or renovated
the
facilities or decoration without the permission from Landlord
or overrun
the formal approval from Landlord.
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10.6
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If
the Tenantry ceases the Lease Contract under the contract period,
and this
action is not according to any clause of this contract, the Tenantry
should pay to the Landlord extra One Month rent as fell back
penalty. If
that fell back penalty cannot countervail the lost of the Landlord,
the
Tenantry should take the responsibility to compensate the rest
to the
Landlord. The Landlord can deduct the deposit to compensate the
lost, if
the deposit is not enough to countervail the lost of the Landlord,
the
Tenantry should take the responsibility to compensate the rest
to the
Landlord. The Tenantry cannot remove any access, goods or machinery
until
he has paid the fell back penalty to the
Landlord.
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10.7
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If
the Tenant cannot pay the rent after Ten Days from maturity,
the Tenant
will be count as ceasing the Lease Contract and causing the fell
back
action. The Landlord has the right to take back the properties.
If any
material or goods remain in the properties, then all of these
will count
as the abjuration from the Tenantry, the Landlord has the right
to treat
these materials in his way and the Tenantry cannot object the
action taken
by the Landlord. The Tenantry should bear the cost and the result
for such
action, and the Landlord has the right to seek the legal action
to the
Tenantry.
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11.
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Other
Clause
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11.1
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Supplementary
clause can be added to this contract with the agreement between
the
Landlord and the Tenant. The attachments and supplementary clauses
of this
contract are indescribable. Any words or print characters on
the
attachments, supplementary clauses or contracts will have the
same force
and effect.
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| 11.2 |
The
Landlord and the Tenant should understand his right, obligation
and
responsibilities before signing of this Lease Contract and they
should
strictly follow the clauses state in this Contract. Any party
who offends
this contract, another party has the right to claim for
compensation.
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11.2
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If
any disputes rise between the Landlord and Tenant during the
carry out oft
this Lease Contract, they should settle the disputes under negotiation,
and if they cannot settle the problem themselves, they can settle
the
disputes by the local court.
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| 11.4 |
The
Lease contracts are signed with 4 copies, each party take 2 copies
for
reference.
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Attachment
1: Supplementary Clauses
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1
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The
landlord should provide not less than at least 1 number 5 tons
gantry for
each workshop of each building, and One workshop should have
2 numbers of
gantry.
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2
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The
TWO completed workshop should capable of lifting gantry and with
safe
working permit.
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3
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The
Landlord should provide the blue print of the building layout
and
structural drawings to the
Tenantry.
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4
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The
third building should not have any partition wall at the ground
floor, and
the 1/F and 2/F should capable to use for office, life purpose.
The rent
will be paid after the completion of decoration and has supply
of water
and power.
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5
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The
1/F of the building is for office purpose, and the Landlord should
provide
assistant to the Tenantry to make 1 opening on the side wall
and install
aluminum window for weather proof.
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6
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The
Landlord should build a fence wall to the circumference of the
building
boundary and provide access and door for main entry, and he should
provide
a security room and reception
lobby.
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7
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The
Landlord should provide green zone to beauty the environment
within the
building boundary.
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8
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The
Landlord should warranty for the supply of electric power, water
for the
buildings. He should provide water drainage system and sanitary
system in
the building and roads.
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9
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The
wall of 1/F at the north side of Building 2 should be blocked,
the wall of
1/F at the south side of the building 4 (prepare to build) should
be
blocked.
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10
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The
Landlord should provide a canopy at the entrance of workshop
at each
building.
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11
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If
the Landlord could not complete and provide the facilities as
the
supplementary clause 1~10 before 8/July/2005, the payment for
rental will
be delay until completion of these
clauses.
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Landlord:
Shanghai
▇▇▇▇▇ CNC equipment Ltd. Co,
Date:
Tenant:
Zhuhai
King Glass Engineering Ltd. Co. (Shanghai)
Date: