House Lease Contract

The Leased Property is used for breeding and planting as well as office administration of the Lessee, if it intends to change its purpose, it shall get the written permission of the Lessor, and all the relevant procedures shall be reported by the Lessee according to national regulations; all the fees payable shall be assumed by the Lessee; the Lessor shall not be responsible for the compensation of dissolution and termination of the contract owing to any reasons.

The lease term is three years from July.1 2009 to June 30, 2010. The contract covers the validity period of one year, and it shall be continued through the negotiation of the two parties after one year, and the rent shall be increased by 5% annually.

After the lease term expires, the Lessor has right to take back the Leased Property, and the Lessee shall return the Property and move out of the house in advance of two weeks; if the Lessee needs to extend the lease term, it shall propose within two months in advance of the expiry date; after the agreement of the Lessor, the two parties shall sign a new contract. The Lessee has the priority to lease the Property under the same conditions.

The Lessor shall be responsible for the repair and maintenance of relevant facilities in the Property or entrust the Lessee to maintain, and the maintenance fees shall be assumed by the Lessor. The Lessor shall guarantee that the Property can meet the use purpose in the Contract of the Lessee. If Lessor intends to examine and maintain the Property, it shall notify the Lessee in advance of three days. The Lessee shall coordinate the inspection and maintenance works, and the Lessor shall try its best to reduce the probability to affect the use of the Lessee.

During the lease term, if there are natural damage or roof leakage, etc. which affect the normal use of the Lessee, the Lessee shall notify the Lessor promptly in the written form, and adopt necessary measures, to avoid the loss, otherwise, the Lessee shall assume the responsibility itself; the Lessor has no responsibility for the loss formed before notifying of the Lessee.

During the lease term, if there are risks like house collapse, or water pipe breakage, or electricity leakage, or other matters that prevent the normal use of the Lessee, or threaten the safety of Lessee’s life and assets, the Lessee shall promptly notify the Lessor in the written form and adopt necessary measures to avoid the losses, otherwise, the Lessee shall assume the responsibility itself; the Lessor has no responsibility for the loss formed before notifying of the Lessee.

The Lessee shall rationally use and be care for the Leased Property during the lease term, and it shall be responsible for repairing for its improper use of the properties, if the Lessee refuses to repair, the Lessor can take the repair works, and the Lessee shall assume the relevant fees.

If the Lessee intends to decorate or increase the attached facilities and equipment, it shall get the permission of the Lessor and submit to the relevant department for approval, which shall not damage the main structure of the Leased Property as well as damage the Property substantially; and it shall not damage other building and facilities of the Lessor. Otherwise, the Lessee shall assume the responsibility for compensation.

During the lease term, if the Lessee needs to decorate or rebuild the Leased Property, it shall submit the relevant plans to the Lessor and get the approval; meanwhile, it shall report to the relevant government department for approval. If the decoration and rebuilding plans may affect the public building or other adjacent users, the Lessor can propose the disputes on these plans, and the Lessee shall revise promptly. The rebuilding and decoration fees shall be assumed by the Lessee.

After permitted by the Lessor in the written form, the Lessee can sublease part of the Property, and it shall not transfer the entire property to be leased by other party. The Lessee shall take charge of managing the subleased part, including receiving the rent from the sublessee. The responsibility and rights of the two parties in the Contract shall not be changed owing to the subleasing.

The Lessee shall request the sublessee to sign the guarantee letter, to perform the regulations with regards to the sublease issues in the Contract of Lessor and Lessee, and the sublessee shall guarantee to assume the associated responsibilities with the Lessee. When the Lessee terminates the Contract, the sublease contract is also terminated, and the sublessee shall move out of the property without conditions.

During the lease term, if the Lessee owes the rent or water & electricity fees over one month, and the Lessee doesn’t pay the relevant items within five days after receiving the notice of the Lessor, the Lessor has right to prevent the Lessee from using of relevant facilities. The Lessee shall assume all the losses caused by this (including but not limited in the losses of Lessee and Sublessee).

If the Lessee owes the rent or water & electricity fees for two months, the Lessor has right to terminate the contract in advance and execute in accordance with the contract regulations. Since the date that the Lessor notifying the Lessee by fax or letter, this Contact shall terminate automatically. The Lessor has right to retain the assets of the Lessee in the property, and make auction legally of the retained assets, for compensating all the fees resulted from the lease behaviors of the Lessee, after five days of issuing the written termination contract.

If the contract terminates in advance or expires, and the two parties don’t continue the agreements, the Lessee shall move out of the Property at the termination date or expiry date, and return the Property to the Lessor. If the Lessee doesn’t move out of the Property or return the Property in time, it shall pay the doubled rent to the Lessor; while the Lessor has right to notify for refusing the doubled rent in the written form, and it has right to take back the Leased Property and remove the properties forcibly; and it has no responsibility to keep the properties. If there are still the properties of Lessee within five days after moving, and the two parties have no agreements, it will be deemed as wavier of the ownership, and the Lessor will dispose these properties. If the Lessee has difficulties to find the workshop or there are other special reasons, the Lessor shall allow for delaying the term for 20 days, but the Lessee shall pay off the rent and relevant fees at one time according to the agreed rent in the contract.

After the lease term expires, if the Lessee intends to continue the contract, it shall notify the Lessor in advance of 30 working days, and the Lessor shall propose the disputes or negotiate to continue the agreements with the Lessee within 30 working days since receiving the notice; if it doesn’t reply within 30 working days since receiving the notice, it will be deemed as agreeing the reletting; the contract will extend for half a year, which will be calculated since the expiry date. After the lease term expires, if the Lessor intends to continue leasing the Property, the Lessee has the priority to lease the Property based on the same rent.

After receiving the written notice for the details of breach of contract of one party, any party shall confirm or propose the written disputes or supplementary notes within 15 working days. If it doesn’t reply in the written form within 15 working days, it will be deemed as acceptance of the contents; in this case, the two parties shall negotiate the issue; if it fails to be solved in this way, it shall be handled according to the clauses in this agreement. The default party shall assume the economic losses of the observant party caused by its breach of the contract.

If the contract cannot be performed owing to illegal reasons of the Lessor, it shall return the overpayments and deposits of the Lessee, and it will give the Lessee 15 days for moving out of the Leased Property for free.

If the contract cannot be performed owing to illegal reasons of the Lessee, the Lessee shall pay the relevant rent in lump sum within 7 days since the invalid date agreed in the contract as the compensations, which will be deemed as the indirect compensation for the Lessor; otherwise, the Lessor has right to detain the paid rent and deposit of the Lessee; meanwhile, the Lessor will not make any compensations for all the fees invested by the Lessee based on the trust at the beginning.

If the disputes aroused from the contract cannot be solved through negotiation, the default party shall assume the expenses of the observant party for maintaining its rights, including but not limited in the travel fees, lawsuit fees, investigation fees and lawyer’s fees.

After signing the contract, if the enterprise name is changed, the change party shall provide the registration materials of industry and commerce related to the change to the other party, if the change doesn’t comply with the contract, this contract clauses will not be changed, and it will continue to be performed until the contract expires.

The unsettled matters herein shall be negotiated by the two parties to sign the supplementary agreement; this contract had six copies, with each party holding three.

This contract will take effect after signing and sealing of the two parties as well as receiving the deposit paid by the Lessee.