Floor Lease Agreement
Exhibit
10.6
Lessor
(hereinafter referred to as “Party A”): Shunkang Store ▇▇▇▇ ▇▇▇
Lessee
(hereinafter referred to as “Party B”): HYUNDAI Light & Electric (HZ)
Company Limited
With
respect to Party B’s lease of the third floor of Block A, Zhenxing Road,
Jiaosha, Gusan Village from Party A for use of factory, the parties hereby
agree upon the following terms:
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1.
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Area
for lease: Around 1200㎡to be used
by Party B at the rent of RMB7.2/㎡per month.
Party B shall be responsible for the water and power
charges.
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2.
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The
term of the lease shall be two years, commencing from April 15, 2009
to April 14, 2010. Upon expiry of the term of the lease, Party A
shall have the right to take back the leased area and Party B shall return
the leased area on time. If party B intends to extend the lease, it shall
inform Party A of its intention in writing one month prior to the expiry
of the term of the lease and the parties will negotiate the rents by
then.
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3.
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The
annual rent shall be ONE HUNDRED THREE THOUSAND SIX HUNDRED AND
EIGHTY Renminbi only
(RMB103,680.00), which can be divided to the monthly rents of EIGHT
THOUSAND SIX HUNDRED AND FORTY Renminbi (RMB8,640.00) (to
be paid in cash).
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4.
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Security
deposit and payment of the
rents:
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(1)
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On
the date of execution of this Agreement, Party B shall pay Party A with
TEN THOUSAND Renminbi (￥10,000.00)
as the security deposit, and the rent shall be payable by Party B to Party
A on a quarterly basis. Party B shall pay Party A with the rent of each
quarter 10 days prior to the commencement of such quarter, i.e. the rent
shall be settled prior to Party B’s use of the leased area. The water and
power charges shall be paid by Party B to Party A on a monthly
basis.
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(2)
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Upon
the expiry of the term of the lease, if Party B does not renew the lease,
Party A shall return the security deposit to Party B without interest
provided that Party B shall settle all the rents, water and power charges,
telephone charges, gas fees, etc and maintain the good condition of the
leased area. The security deposit cannot be used to settle the rent during
the term of the lease.
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(3)
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If
Party B terminates this Agreement prior to the expiry of the term of the
lease, the security deposit will not be returned to Party
B.
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(4)
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In
case that Party B breaches the provisions of this Agreement which
results in Party A’s failure to collect the rent on time or in
any additional costs and expenses, Party A shall have the right to use
part or all of the security deposit to offset the outstanding rent or to
settle those additional costs and
expenses.
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5.
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Use
of the building and area: Factory and warehouse. This building shall
be only used for the operation of factory and
warehouse.
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6.
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During
the term of the lease, Party B shall be responsible for the maintenance
and repair of the leased area. Party B shall share the elevator with
the user of the second floor and be jointly responsible for the repair and
power charges. Party A shall be responsible for the repair of fair wear
and tear on the facilities attached to the leased
area.
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7.
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During
the term of the lease, Party B shall be responsible for all the economic,
political and legal liabilities, liabilities incurred from fire and safety
accident, and all the
fees, taxes, certificates decorations, etc. in relation to
its operation. Party A will not take any responsibilities therefrom. Party
B is not allowed to mortgage or sublease the leased area. No storage
of dangerous, inflammable and explosive materials or illegal
activities in the leased area is
allowed.
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8.
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During
the term of the lease, if Party B wants to decorate the leased area, it
must take care of the safety of the building and should not cause any
damages to the main structure of the building. Upon expiry of this
Agreement, if Party A continues to let the leased area without changing
the use of the building, Party B shall have the pre-emptive right on equal
condition of rent. If Party A doesn’t continue to let the leased area,
Party B shall remove all the commodities and goods from the leased area on
the expiry date and return the leased area to Party A for inspection on
time. Party B shall not remove or destroy the floor, wall, ceiling,
electric wires and other decoration which is fixed in the construction
structure or walls of the building. Party A will acquire such items
without any additional payment. Party A shall return the security
deposit without interest to Party B within two days after Party B’s return
and Party A’s inspection and acceptance of the leased area in its original
status. If there is any damage to the leased area, Party B shall
be responsible to repair or compensate Party A according to the market
price.
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9.
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Liabilities
for breach of agreement
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(1)
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Party
A shall not take back the leased area during the term of lease without
reasonable cases. If Party A commits a breach, it shall compensate Party B
with an amount equal to double of the security
deposit.
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(2)
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In
case of early termination by Party B, it shall not remove all the
decoration and materials, which shall be deemed as belong to Party A.
Party A shall be entitled to confiscate the security deposit and
request Party B to settle all the unpaid rents, water and power
charges before it can take its commodities and goods out of the
leased area.
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(3)
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If
Party B fails to pay the rent on time, Party A shall be entitled to a
default payment equal to 1% of the outstanding amount for each day of
delay. The delay of or more than 15 days will be viewed as Party B’s
breach of this Agreement, which shall be subject to Clause 9.(2)
above and Party A shall have the right to take back the leased
area.
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10.
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For
anything not specified in this Agreement, the parties may enter into
supplemental agreements, which shall have the same effect with this
Agreement.
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11.
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This
Agreement is prepared in two original copies, each party holding one
copy. This agreement will come into effect upon the execution of the
parties.
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12.
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Party
A should provide Party B with a written consent from the
owner.
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Lessor(Party
A): Shunkang Store
Representative:
Contact
No.
Lessee(representative
of Party B):HYUNDAI Light & Electric (HZ) Company Limited
Address:
Contact
No.
Date of
execution: 8 April 2009