Lease Agreement Beijing ZhongshidongshengCulture Media Co., Ltd. Harbin Zhong He Li Da Education Technology,Inc. 8 Gaojing Culture Park Road,Chaoyang District, Beijing April, 2014
Exhibit 10.5
Lease Agreement
Beijing Zhongshidongsheng Culture Media Co., Ltd.
Harbin Zhong He Li Da Education Technology, Inc.
8 Gaojing Culture Park Road, Chaoyang District, Beijing
April, 2014
The Contract was signed by the two parties in Beijing on April 11, 2014.
Parties to the Contract:
Lessor (hereinafter referred to as Party A): Beijing Zhongshidongsheng Culture Media Co., Ltd.
Tenant ((hereinafter referred to as Party B): Harbin Zhong He Li Da Education Technology, Inc.
Having reached unanimity through friendly consultant and negotiation, Party A and Party B, hereby agree to enter into the Lease Agreement to be abided by both party.
| 1. | Property Basic Information |
| 1.1 | Property location: 8 Gaojing Culture Park Road, Chaoyang District, Beijing, area of premises is 1,325 square meters; |
| 1.2 | Property is currently basic decorate. |
| 2. | Lease Term |
| 2.1 | The lease term shall be from April 11, 2014 to April 10, 2019, as 5 years in total. |
| 2.2 | Agreed housing delivery date is April 11, 2014, and the rental day is the date of delivery. Party B shall start house renovations upon the delivery, Party A shall be responsible for water and electricity supplies upon the delivery.
The rent-free period: from the agreed housing delivery date until June 10, 2014.
|
| 2.3 | Party A has rights to take back the house upon the lease expiration. When the lease term expires, if Party B requires a renewal of the lease, Party B shall notice Party A 90 days before the expiration of this agreement. |
| 3 | The Rental, Property Management and Other Fees: |
| 3.1 | Rental standard:
For the period from April 11, 2014 to April 10, 2016, the daily rental of per square meter is ¥4.6 ,so the total amount of yearly rental agreed upon both parties shall be .¥2,224,675.
For the period from April 11, 2016 to April 10, 2017, the daily rental of per square meter is ¥4.92 ,so the total amount of yearly rental agreed upon both parties shall be .¥2,379,435.
For the period from April 11, 2017 to April 10, 2018, the daily rental of per square meter is ¥5.26 ,so the total amount of yearly rental agreed upon both parties shall be .¥2,543,867.5.
| |
| For the period from April 11, 2018 to April 10, 2019, the daily rental of per square meter is ¥5.63 ,so the total amount of yearly rental agreed upon both parties shall be .¥2,722,808.8. |
| 3.2 | The first payment: |
The first payment shall be the rental from June 11, 2011 to October 10, 2014, which shall be ¥741,558.3. The first payment shall be made upon the signature of this agreement.
| NO. | PAYMENT DAY | LEASE TERM | MONTHS | PRICE (yuan / m² * day) | EACH PERIOD RENT(RMB) |
| 1 | YEAR/MONTH/DATE | April 11, 2014 to June 10, 2014 | 2 | 4.6 | Decoration-free period |
| 2 | Contract date | June 11, 2014 to October 10, 2014 | 4 | 4.6 | 741,558.30 |
| 3 | 11-Sep-14 | October 11, 2014 to February 10, 2015 | 4 | 4.6 | 741,558.30 |
| 4 | 11-Jan-15 | February 11, 2015 to June 10, 2015 | 4 | 4.6 | 741,558.30 |
| 5 | 11-May-15 | June 11, 2015 to October 10, 2015 | 4 | 4.6 | 741,558.30 |
| 6 | 11-Sep-15 | October 11, 2015 to February 10, 2016 | 4 | 4.6 | 741,558.30 |
| 7 | 11-Jan-16 | February 11, 2016 to April 10, 2016 | 2 | 4.6 | 370,779.20 |
| 8 | 11-Mar-16 | April 11, 2016 to August 10, 2016 | 4 | 4.92 | 793,145.00 |
| 9 | 11-Jul-16 | August 11, 2016 to December 10, 2016 | 4 | 4.92 | 793,145.00 |
| 10 | 11-Nov-16 | December 11, 2016 to April 10, 2017 | 4 | 4.92 | 793,145.00 |
| 11 | 11-Mar-17 | April 11, 2017 to August 10, 2017 | 4 | 5.26 | 847,955.50 |
| 12 | 11-Jul-17 | August 11, 2017 to December 10, 2017 | 4 | 5.26 | 847,955.50 |
| 13 | 11-Nov-17 | December 11, 2017 to August 10, 2018 | 4 | 5.26 | 847,955.50 |
| 14 | 11-Mar-18 | April 11, 2018 to August 10, 2018 | 4 | 5.63 | 907,602.90 |
| 15 | 11-Jul-18 | August 11, 2018 to December 10, 2018 | 4 | 5.63 | 907,602.90 |
| 16 | 11-Nov-18 | December 11, 2018 to April 10, 2019 | 4 | 5.63 | 907,602.90 |
| 17 | Total | 60 | / | 11,724,681.80 |
Interest of 0.5% per day will be charged upon the late payment.
| 3.3 | Security deposit: on the date of signing this contract, Party B shall pay 2 months rental and property costs as a rental security deposit ,which shall be ¥370.779.2 as to guarantee the contractual obligation of Party B under this contract. |
| 3.4 | Party A designated bank account: | |
| Opening Bank Account: Bank of Beijing Beichen Road Branch
Beneficiary: Beijing Zhongshidongsheng Culture Media Co., Ltd.
Bank Account: 01090516600120102197117
|
| 3.5 | All payments include security deposit and rental payments shall be made by cash, bank transfer or bank cheques. |
| 4. | Management Fee and Other Fees: |
| 4.1 | The management fee is ¥5.9 per month per square meters. Party B shall make the management fee prior relevant period start. |
| 4.2 | Central air-condition usage fee is ¥76 per year per square meters(2 quarters shall be charges for this fee per year), Party B shall make the payment prior relevant period start, i.e. ¥50,350 shall be made by May 15 each year, and¥50,350 shall be made by October 15, each year. |
| 4.3 | The water usage fee is ¥6.5 per ton. And electricity fee is ¥1.25 per unit.Party B shall make the management fee within 7 days upon the payment notice delivery. |
| 4.4 | Party A provides parking space for Party B to use, all motor vehicle parking shall obtain parking permit from the onsite management. |
| 4.5 | All other special maintenance, renovation deposit, or other chargeable services fees shall refer to onsite management fees and charges standards. |
| 4.6 | Unless otherwise agreed in this contract, Party A and Party B shall send the written notice. |
| 4.7 | Onsite Management designated bank account: Opening Bank Account: Beijing Rural Commercial Bank Jingliang Branch Beneficiary: Beijing Dongyifangyuan Property Management Co., Ltd. Bank Account: 0122000103000003045 |
| 5 | Housing and restrictions |
| 5.1 | Party B wants to rent the China Overseas Plaza for the need of business expansion. |
| 5.2 | Party B shall not let the house to other parties without notify Party A. |
| 5.3 | Unless otherwise agreed in this agreement, Party B shall not change or modify any of house structures, fire control systems, electrical systems, sewage systems, etc. |
| 5.4 | Party B shall not change, modify, extend or demolish the house out of relevant government policies, any penalty or fine occurs, shall be responsible by Party B. |
| 5.2 | Without written consent, Party B shall not build extra property outside the agreed area. |
| 6 | House use and damages |
| 6.1 | During the lease term, Party B shall strictly abide by the laws, regulations and administrative provisions of the state. Party B shall take all effective measures to prevent the occurrence of various fire, and security incidents. Party B shall take responsibility for its visitors, employees, students, agents, and other others accident and compensation for all losses third party suffered. | |
| 6.2 | Party B shall take care of equipment and facilities within the premises in the lease term. Party B shall be responsible for equipment or facility damages caused by its visitors, employees, students, agents, and others unreasonable use. Party B shall be responsible for the equipment repairs or facilities maintenance. If Party B refuses to repair Party A can repair or replace the damages, and the cost is responsible by Party B. | |
| 6.3 | Party A is responsible for any damages to housing facilities and equipment caused by reasonable use, Party A shall take inspection and repair within 48 hours upon Party B’s report. If Party A refuses to repair, Party B can repair or replace the damages, and the cost is responsible by Party A. | |
| 6.4 | For the renovation, and improvement done by Party B, Party A has no obligation to repair or maintain. |
| 7 | Breach of the agreement |
| 7.1 | the occurrence of the following circumstances: |
| a. | The house shall be includ in the urban planning, or demolition range by local government; |
| b. | Due to earthquakes, fires and other force, houses damaged, lost, or destoried. |
When above circumstances occurs the agreement shall be terminate, both party shall not responsible.
| 7.2 | If one of the following situations occurs, |
| a. | Party B does not execute the payment term within 30 days from the due date, |
| b. | Party B not use the house for business operating purpose, or change the house’s structure, or build illegal extension buildings, or sublet this property to a third party. |
| c. | Party B shall be responsible for any damages caused by unreasonable use; |
| d. | Party B use houses engage in illegal activities, harm the public interest or interfere with others' normal working life. |
Party A shall have the right to terminate this agreement, and will get the secure deposit as liquidated damages
| 8 | Breach of the agreement |
| 8.1 | Party B fall to make payment according to the term within this agreement, Party A shall have right to terminate the agreement; | |
| 8.2 | Any delay in house transfer procedure caused by Party B, Party A shall have the right to terminate this agreement. If Party B has not fulfill the agreement terms with 30 days upon the signature of this agreement, Party A can terminate the agreement and will get the secure deposit as liquidated damage. | |
| 8.3 | If Party A wants to execute the agreement during the lease term, Party A shall give Party B 60 day notice, with amount of 200% of current rental payment as compensation to Party B. | |
| 8.4 | If Party B wants to execute the agreement during the lease term, Party B shall give Party A 60 day notice, with amount of 200% of current rental payment as compensation to Party A. |
| 9 | House return |
| 9.1 | If Party A wants to terminate the agreement based on any of terms in clause 7 occurs during the lease term, Party B shall be move out of the house within 5 day notice sent by Party A, Party B shall ensure all equipment and facility is under good condition when house return to Party A. |
| 9.2 | Upon the expiry of the lease term, both parties shall check equipment and facility’s conditions, clear debts balance. Any damages caused by Party B during its lease shall be responsible by Party B, otherwise Party A can deduct amount for repair if Party B refuse to pay. |
| 9.3 | Upon the expiry of the lease term, Party B continue to stay in the house without renew the agreement, Party B shall be responsible to amount of 200% of first year rental payment as compensation to Party A. |
| 10 | Others |
| 9.1 | Both parties at the time of the signing of this contract shall well understand and accept all terms and conditions within the agreement. |
| 9.2 | Agreement is written in Chinese, currency is Renminbi. |
| 9.3 | Both parties shall firstly negotiate in private when debate happen during lease term, if debate cannot settle, then may take legal action in the court. |
| 9.4 | There are four copies of the Contract with same legal effect. Each party shall keep two copies. |
Party A: Beijing Zhongshidongsheng Culture Media Co., Ltd.
Legal representative or authorized representative:
Party B: Harbin Zhong He Li Da Education Technology, Inc
Legal representative or authorized representative:
