Shenzhen Municipality House Lease Contract Made by Shenzhen Municipality House Lease Management Office House Lease Contract

Lessor (Party A): 

Galaxy Industrial (Shenzhen) Co., Ltd.

Mailing Add: 

19F Xinghe Centre, No. 5 Zhongxin Fifth Road, Futian District, Shenzhen

 

1.1

The term for Party B to rent the house aforesaid is between April 16, 2011 and April 30, 2016. Party A hereby permits Party B, in consideration of Party B’s operating activities, to decorate the whole lease house, for which, the decoration period is 76 days(from April 16, 2011, to June 30, 2011) and Party B will not be asked to pay the rental in respect of such period. Property management fee and maintenance cost for the house body shall be calculated from the initial date of the lease contract, and rental shall be calculated from July 1, 2011.

 

2.1

The unit rental as per building area of and for the property, addressed at Room 01B, 02/F, Podium Building, Guodu Golf Garden(Luzhi Xuan, Luyi Xuan and Lutao Xuan) is RMB 45 Yuan/m2 per month, and thus the total rental per month therefor is RMB 93,673 Yuan(in words: SAY RMB NINETY-THREE THOUSAND SIX HUNDRED AND SEVENTY FOUR YUAN ONLY). Relevant invoice hereto shall be issued by Party A.

 

2.2

The unit rental abovementioned shall be increased by 5 % per year progressively, from the third year(i.e., May 1, 2013) during the lease term, upon negotiations between Party A and Party B; under this condition, the total rental per month during the period from May 1, 2013 and April 30, 2014 is RMB 98,357 Yuan; the total rental per month during the period from May 1, 2014 and April 30, 2015 is RMB 103,257 Yuan; the total rental per month during the period from May 1, 2015 and April 30, 2016 is RMB 108,439 Yuan; the total rental herein shall be rounded to Yuan.

 

2.3

The property management fee and maintenance cost for the house body, of the podium building of Guodu Golf Garden, calculated according to the building area hereof, is RMB 5.55 Yuan/m2 per month in total; in addition, electricity charge is RMB _____ Yuan per kilowatt hour and water charge is RMB ____ Yuan per ton(water and electricity charges shall be subject to charge standards stipulated by relevant authorities of Shenzhen municipal government). All fees, mentioned herein, shall be paid by Party B directly to the Property Management Company.

 

2.4

Party B must make a payment, equivalent to RMB 35,000 Yuan, as a deposit of water and electricity charge, to Party A, upon signing this House Lease Contract and Party A shall issue corresponding documents hereto.

 

2.5

In the event that Party B is willing to renew this Contract, after this Contract expires, the new rental shall be reached by Party A and Party B upon negotiations. Party B has the priority to rent the house, under equal conditions.

 

3.1

Party B shall, during the lease term under this Contract, assist the property management center as required in a cooperative way to do work in connection with the overall management including greening, security administration and parking within the property community, according to provisions of Regulations of Shenzhen Special Economic Zone on Property Management and Regulations of Shenzhen Special Economic Zone on House Lease.

 

3.2

Party B shall guarantee to decorate the lease house herein regarding its business operation and store signboard, without prejudice to major structure of the lease house and installing requirements for store signboard (the signboard size is __________and its location is within________________, as agreed by Party A and Party B). The mobilization for construction shall be proceeded with, only after the secondary decoration programs (drawings) for the store are reported to Party A, the property management center and fire departments and approved subsequently, before construction and erection, for which, Party A shall provide assistance to Party B to handle relevant formalities; the store shall not be operated until it is accepted satisfactorily by relevant fire departments. In case Party fails to conform to such terms and conditions, Party A has the right to take any measures (inclusive of suspension of water and electricity supplies), for purposes of asking Party B to stop the construction of decorations and make compensation for any losses incurred hereby to Party A, as a result of which, any and all consequences arising out shall be undertaken by Party B.

 

3.3

Party B shall guarantee, during the lease term, the safety of such installed or suspended store signboard, external wall billboard and propaganda scroll; in case any injuries are incurred hereby to any persons and/or any damages are incurred hereby to any properties, any and all such legal liabilities shall be undertaken by Party B.

 

3.4

Party A permits Party B to use the public area at the entrance of the first floor during the lease term, through negotiations between bother parties hereto, Party B, in exchange for the permit, agrees to be responsible for the design and decoration of the public area (for specific location, please see Plan View) and the building construction of the stairs at the public area, between the first floor and the second floor, at the same time of decorating the lease house hereunder on the second floor. Design and construction programs hereof shall be determined by both parties through negotiations and costs for design and construction programs of the same shall be responsible for and paid by Party B.

 

3.5

Party B must, subject to relevant regulations, take measures to protect environmental hygiene with respect to noise, pollution discharge and cooking fumes, etc., and corresponding formalities shall be handled at governmental authorities. In case of impossibility for operation, caused by the violation of environmental protection regulations with respect to noise, cooking fumes and pollution discharge, any and all liabilities arising out thereof shall be undertaken by Party B unilaterally.

 

3.6

Party B shall try not to make noise during working time to disturb the work and rest of residents within the community and it is forbidden for Party B to, in public areas, do any work that may make noise, failing which, any and all liabilities shall be undertaken by Party B unilaterally, in case of any complaints from other property owners against Party B and/or its normal operation is affected.

 

3.7

Party B enjoys the same right with other residents, of using the parking lots in the community. In case a foreign customer of Party B parks his vehicle in the community over 30 minutes, temporary parking fees for parking the vehicle shall be charged as per relevant municipal governmental provisions. As to Party B’s vehicles(inclusive of distribution vehicles of commercial products), monthly tickets shall be purchased by Party B for such vehicles according to municipal governmental provisions. Party B must abide by regulations of the parking lots, by parking its vehicles at proper places, under the direction of the property management center, without parking everywhere.

 

3.8

Party A shall, under the requirement of Party B, set up a power source switch board room, in the elevator hoistway, on the second floor, to the east of middle tower building, to provide Party B with batteries with electric capacity of 100 KVA.

 

3.9

During the lease term, water and electricity lines outside the lease house shall be maintained by Party A, while Party B shall be responsible for the maintenance of lines behind water and electricity meters within the lease house. Security, fire control, environmental protection and cleaning inside the lease house shall be responsible for, by Party B, unilaterally.

 

3.10

Use of the lease house: commercial use. Business licenses and other legal formalities stipulated by relevant authorities of the government shall be handled by Party B, and, under such conditions, Party B shall do business according to laws, failing which, Party A has the right to terminate this lease contract and any and all liabilities for breach of contract caused hereby, shall be undertaken by Party B. Copies of such business licenses, upon issuance of such business licenses, must be turned in to Party A and the property management center for filing.

 

4.1

In accordance with provisions of Regulations of Shenzhen Special Economic Zone on House Lease, Party B shall, in each month during the lease term, make a payment to party A, for rental at current month, and associated fees of previous month including management fees, water and electricity fees, before the fifth day of the current month; in case Party B fails to pay the same, late fees shall be paid by Party B, calculated at the rate of 3 ‰ of the total amount due and payable to Party A, for each day after the due date. In case that Party B, upon the receipt of a notice hereof from Party A, fails to pay such fees, Party A has the right to receive such late fees and terminate this Contract.

 

4.2

In case Party B fails to pay a rental payable for more than 30 days, it shall be deemed as a breach committed by Party B, as a result of which, Party A has the right to terminate this Contract and confiscate the security deposit provided by Party B. In the event that it is not possible to notify Party B hereof, due to unknown presence of Party B, Party A may give such notices in a newspaper. In case of terminating this Contract, Party A may send relevant notices by mail in written forms to Party B or publish such notices in a newspaper, and it shall be deemed as delivered, two days after the notice is sent by mail or the same day when the notice is published in a newspaper; subsequently, Party A has the right to take measures to re-possess the leased house and dispose of any and all items inside the house; Party A has the right to cancel the registration (filing) of this Contract and lease the house to any other persons; Party A has the right to ask Party B to make compensations for any direct economic losses incurred hereby to Party A. Party A has the obligations of maintaining the major building structure, and Party B may ask Party A to perform such obligations by issuing an written notice to Party A, provided that Party A fails. Provided that Party A, upon the receipt of the written notice, fails to perform such obligations within a reasonable period, Party B has the right to employ any other professional maintenance companies, at expenses of Party A, to do such maintenance work.

 

4.3

Termination before this Contract expires by any party unilaterally shall be construed as a breach, unless occurrence of any conditions falls into conditions of Article 17, Article 18 and Article 19, under the House Lease Contract. Any economic losses incurred to the innocent party shall be compensated by the party in breach(such conditions shall be subject to Article 18 and Article 19).

 

4.4

The transfer of the ownership of the property hereunder by Party A, during this Contract, shall be conducted on the premise of the transfer of this lease contract therewith, failing which, it shall be deemed as a breach and any economic losses incurred hereby to Party B shall be compensated by Party A. Party B shall have the priority to purchase the property, under the same conditions.

 

5.1

Provided that Party B does not renew this Contract upon its expiry, Party B shall move out of the leased property within 5 days; the house, to be handed over back to Party A shall be, in normal operating conditions, with internal and external decorations as they are (i.e., attached real properties to the house: facilities and equipments invested by Party A; decorated by Party B, floor, ceiling, door, wall and column surfaces, partition and lights, etc.); such internal and external decorations of Party B shall be handed over to Party A without any additional charge.

 

5.2

Party B shall guarantee that equipments from Party A shall be operated normally. In case of any damages to such equipments or any damages to the leased house due to the move of such equipments, Party B shall, at its own expenses, be responsible for restoration of such damages. Party B may remove and take away, its own and moveable equipments and articles.

 

5.3

Provided that Party B is not to renew this Contract upon its expiry and has paid all water charges and electricity charges as well as other charges payable, Party A shall return the security deposit and deposit for water and electricity charge, etc., to Party B within five days after this Contract expires. In case Party A fails to return to Party B the same herein, liquidated damages shall be paid by Party A, in accordance with coterminous rate of banks. Under conditions that Party B fails to move out of or fails to handover back to Party A, the leased house, the security deposit will not be returned to Party B and Party A has the right to take measures to re-possess the leased house, meanwhile; as a result, any economic losses suffered from by Party A due to such causes shall be compensated by Party B.

 

6.1

Any other matters that are not stipulated hereunder shall be handled by both parties upon friendly negotiations, failing which any party may apply at Shenzhen Arbitration Commission for arbitration.

 

6.2

The Supplementary Provisions, having the same legal forces with the House Lease Contract, shall come into upon signature and will lose effectiveness after economic and legal obligations of both parties hereunder are performed respectively and the lease term expires.

 

6.3

The Supplementary Provisions shall be in four(4) copies, of which, Party A and Party B shall receive one(1) copy respectively, the contract registration organ shall receive one(1) copy and relevant authority shall keep one(1) copy.