AGREEMENT OF LEASE
THIS AGREEMENT OF LEASE is made between Dongsuh Securities Co., Ltd.,
with offices at 00-0 Xxxxx-Xxxx, Xxxxxxxxxxxx-Xx, Xxxxx, represented by Xxxx
Xxxx Xxx, its Representative Director (hereinafter referred to as the
"Landlord") and Dongsuh Finance Co., Ltd., with offices at 000-00 Xxxxxx-Xxxx,
Xxxxxxx-Xx, Xxxxx, represented by Hyun Xx Xxxx, its Representative Director
(hereinafter referred to as the "Tenant") for the premises consisting of part of
the Dongsuh Securities Building.
Article 1 (Leasing of Premises)
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1. Landlord hereby leases to Tenant and Tenant hereby hires from
Landlord the premises as described below (the "Premises"):
Entire first floor (693.65 sq. m) and entire second floor (693.65 sq.
m), total 1,368.12 sq. m, in the building known as 000-00, 00
Xxxxxx-Xxxx, Xxxxxxx-Xx, Xxxxx, inclusive of common areas, but
exclusive of parking Lot.
2. Tenant shall not be granted any other property rights on the
Premises by virtue of this Lease other than the rights specifically set forth in
this Agreement of Lease.
3. Tenant shall use and occupy the Premises for offices and for no
other purpose.
Article 2 (Term)
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1. The term of this Lease shall be from the 1st day of July,
1996 to the 30th day of June, 2000.
2. In the event the Tenant fails to take possession of the Premises
within one (1) month of the commencement of the lease term or to deposit the
entire amount of security on or before the commencement of the lease term, this
Agreement of Lease shall automatically become null and void and any monies paid
to the Landlord shall belong to the Landlord.
3. This Agreement of Lease shall be renewed automatically for an
additional period of six (6) months on the same terms and conditions unless, at
least one (1) month prior to the expiration of the lease term, either party
notifies the other party in writing of its intention to modify the terms of the
Lease.
4. Either party may terminate this Lease by giving a two (2) months
written notice to the other party, in which event this Agreement of Lease shall
terminate upon the passage of two (2) months after receipt of such a notice.
Article 3 (Security)
--------------------
1. Upon the execution of this Agreement of Lease, Tenant shall deposit
the sum of 148,000,000 Won with the Landlord.
2. In the event of renewal of this Lease, Tenant shall make additional
deposit in proportion to the increase of rent on or before the previous day of
the expiration of this Lease. Tenant agrees to pay interest at the prevailing
default interest rate in the event of Tenant's failure to make the additional
deposit in a timely manner.
3. Tenant may not apply the Security to rent payment. Tenant further
covenants that it will not assign or encumber or attempt to assign or encumber
the monies deposited herein as security.
4. The Security shall be returned to the Tenant within 15 days after
the expiration of this Lease or earlier termination and after the delivery of
entire possession of the Premises to Landlord in accordance with the provision
of Article 16 hereof. Landlord shall have the right to deduct from the Security
any and all costs, expenses, obligations or liabilities which the Tenant is
obligated to pay.
Article 4 (Rent)
----------------
1. Tenant agrees to pay the Landlord the sum of 14,800,000 Won as
monthly rent on or before the 5th day of each month at a place as the Landlord
may designate. Value added taxes shall be the responsibility of the Tenant.
2. In the event the monthly rent is not paid on or before the 5th day
of each month, a late charge shall be assessed at the rate as set forth in
Article 3 (2) above.
Article 5 (Maintenance Charges)
------------------------------
1. Tenant agrees to pay the Landlord each month the sum of 5,870,200
Won for maintenance of the Premises including salaries for maintenance
personnel, electricity, water and cleaning. Value added taxes shall be the
responsibility of the Tenant.
2. Further, Tenant agrees to pay all costs and expenses, electricity
and taxes and assessments for maintaining facilities and appurtenances installed
by the Tenant for its own use.
3. Landlord will submit to the Tenant monthly statement for maintenance
charges at the beginning of each month. Tenant agrees to make the necessary
payment on or before the 5th day of each month at a place as the Landlord may
designate. In the event of late payment, a late charge shall be assessed at the
rate as set forth in Article 3 (2) above.
4. In the event the lease term commences or terminates in the middle of
a month, the monthly maintenance charges shall be prorated for that month.
5. In the event of substantial increases of taxes, assessments or other
prices or change of economic circumstances, the monthly maintenance charges may
be increased accordingly after consultation between the Landlord and the Tenant.
Article 6 (Requirements of Law, Rules and Regulations)
-----------------------------------------------------
Tenant shall comply with all applicable laws, orders and regulations in
conducting its businesses operations. Tenant and its employees shall observe
faithfully and comply strictly with the Rules and Regulations as Landlord or
Landlord's agent may from time to time adopt concerning the use of the Premises
and other facilities and equipment.
Article 7 (Assignment or Sublease)
---------------------------------
1. Tenant shall not assign this Agreement nor sublet the Premises or
part thereof to others.
2. Other than the employees of the Tenant, Tenant shall not permit
others to occupy the Premises or part thereof nor post signs of others.
Article 8 (Prohibition of Residential Occupancy)
-----------------------------------------------
1. Tenant is strictly prohibited from using the Premises for
residential purposes. Only the Tenant's night watchmen, to the extent permitted
by the Landlord in writing, may stay on the Premises overnight.
2. Landlord may prohibit or restrict the use of elevators or other
facilities on legal holidays or Sundays or prior to 8:00 a.m. or after 7:00 p.m.
on business days.
3. In the event the Tenant decides to work on holidays or beyond 7:00
p.m. on business days, Tenant shall pay additional maintenance charges based on
the additional maintenance services provided by the Landlord.
Article 9 (Indemnity of Landlord)
---------------------------------
Landlord shall not be liable for any damage to property of Tenant
(including vehicles parked in the parking lot) resulting from any cause of
whatsoever nature. Landlord shall only be required to assign and manage a guard
or guards to protect the common areas of the building.
Article 10 (Prohibited Activities)
---------------------------------
Tenant agrees not to engage in the following activities on the
Premises:
1. Installation of signs or advertisement materials which will cause
nuisance to the general public.
2. Delivery or storage of explosives or other materials dangerous to
persons or property of others.
3. Unauthorized use of heating equipment or fuel such as xxxxx, coal,
oil or gas.
4. Unauthorized use of heating or air conditioning equipment.
5. Keeping animals or pets other than fish bowls.
6. Damaging the Landlord's structures, equipment or facilities; making
alterations to the structures of the building without the Landlord's consent; or
installation of signs or advertisement materials without the Landlord's consent
or approval.
7. Manufacturing or selling contraband goods.
8. Use of the Premises for purposes otherwise unauthorized under this
Lease Agreement.
Article 11 (Improvements and Installations)
------------------------------------------
Tenant is prohibited from doing the following improvements or
installations without the Landlord's prior written consent. All the improvements
and installations shall be done under the supervision of the Landlord at the
expense of the Tenant.
1. Alterations of the Premises; partitioning; or installation or change
of windows, etc.
2. Installation or transfer of electrical outlets; installation of
telephone system; or installation, addition, transfer or change of water supply
or gas supply facilities.
3. Posting trade name, trademark, etc. on the exterior walls or plate
glass of the building.
4. Installation of safe or other heavy equipment.
5. Installation of signs or advertisement materials.
Article 12 (Repairs)
-------------------
1. Tenant shall be responsible for all the repairs of walls, ceiling
and floors including painting. However, Landlord will do the regular painting of
ceilings and walls.
2. If the Landlord's repairs are needed, Tenant shall immediately
notify the Landlord. Tenant's repairs shall be done in consultation with the
Landlord.
Article 13 (Damages)
--------------------
1. In the event of damages to the Premises or the facilities in the
Building caused by the Tenant, its employees, agents or invitees, Tenant shall
immediately notify the Landlord and pay the necessary damages.
2. Tenant shall be liable for any damages of which the Tenant fails to
notify the Landlord.
3. The amount of damages shall be determined by the Landlord based on
the fair market value. Landlord's determination herein shall be conclusive and
final.
Article 14 (Access)
------------------
Landlord or its agents shall have access to the Premises at all times
during the term of this Lease for the purpose of necessary inspection, emergency
measures for sanitation, fire prevention and crime prevention and to show the
Premises to future tenants.
Article 15 (Landlord's Termination)
----------------------------------
1. Landlord shall have the right to terminate this Lease upon
occurrence of the Tenant's defaults as follows:
a. Failure to pay rents and additional rents or two (2) or
more months beyond the due dates as provided for in Article 4 and Article 5.
b. Encumbrance or attachment of the monies deposited as
security.
c. Other defaults of the Tenant.
2. In the event of the Tenant's default, Landlord shall have the right
to terminate this Lease, to refuse the renewal or extension of the term of this
Lease and to demand immediate surrender of the Premises. Further, Landlord may
take any and all other actions it deems appropriate to enforce its rights under
this Lease.
Article 16 (Surrender and Restoration)
-------------------------------------
1. Tenant shall remove all its property and assets and return to the
Landlord the keys and other property belongings to the Landlord on or prior to
the expiration of the term of this Lease.
2. At the end of the term of this Lease, Tenant shall remove all the
partitions or other facilities installed by the Tenant and restore the Premises
to its original condition.
Article 17 (Force Majeure)
-------------------------
Landlord shall not be responsible for damages to Tenant's equipment and
other property caused by fire theft, natural disaster, earthquake and other acts
of god. Tenant shall be responsible for installation of facilities and
instruments necessary for prevention of fire and other damages to the property
to its own.
Article 18 (Interpretation)
--------------------------
Any disputes arising under this Lease Agreement shall be resolved in
accordance with the laws of the Republic of Korea.
Article 19 ( Jurisdiction)
-------------------------
Any legal actions concerning this Lease Agreement shall be subject to
the jurisdiction of Seoul Civil District Court.
Article 20 (Management regulations)
----------------------------------
Tenant agrees to observe the regulations which the Landlord may from
time to time establish in order to protect the property of the Tenant and to
manage the Premises.
IN WITNESS WHEREOF, the parties have executed two (2) counterparts of
this Lease Agreement.
Dated: May 21, 1998
Landlord: Dongsuh Securities, Co., Ltd.
00-0 Xxxxx-Xxxx
Xxxxxxxxxxxx-Xx, Xxxxx
By: Xxxx Xxxx Xxx
Representative Director
Tenant: Dongsuh Finance Co., Ltd.
000-00 Xxxxxx-Xxxx
Xxxxxxx-Xx, Xxxxx
By: Hyun Xx Xxxx
Representative Director
