Exhibit 10.23
Equipment Lease Agreement
This Agreement is made and entered into on February (2?), 2005 in Tai'an City,
People's Republic of China (hereinafter referred to as "China"), by and
between
the following parties:
Lessor: Shandong
Shengda Technology Co., Ltd (hereinafter referred to as "Party
A")
Legal address: North Tip of the Economy & Trade Corridor,
Xintai City.
Shandong
Province
Legal representative: Chen Xiangzhi
Lessee: Shandong
Bangsheng Chemical Co., Ltd (hereinafter referred to as "Party
B")
Legal address: No. 342, Lingshan Street, Tai'an City
Legal representative: Xu Xiqing
WHEREAS:
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(1) Party A is a
company limited duly organized, validly existing and in good
standing under the laws of the P.R.C;
(2) Party B is a
company duly organized, validly existing and in good
standing
as a
wholly foreign funded enterprise under the laws of the P.R.C;
(3) Party B intends
to lease the
Equipment owned by Party A from Party A
for
its
industrial production
and operation,
and Party A agrees to
lease the
relevant Equipment to Party B.
After friendly negotiation, in light of Party B's intention of
leasing Equipment
owned by Party A referred to in Article 1 of this Agreement (hereinafter
referred to as "the Leased Equipment"), the parties enter into an
agreement as
follows:
Article 1 Name
and Quantity of the Leased Equipment
For the detailed
information of the Leased Equipment, see Attachment 1 of this
Agreement for the
Evaluation
Report for the
Leased Equipment of Shangdong
Shengda Technology
Co., Ltd issued by Tai'an Zhongcheng Limited Liability CPA
Firm on November 9, 2005.
Article 2 Lease
Term
1. The lease
term is three years from the effective date of this Agreement.
Both
parties irrevocably agree that, after the expiration date of the
leasing term,
Party B has the right
to choose to extend the leasing term
for 3 more years,
within which the
renting fee shall be
determined by the
1
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two
parties according to the Rental Evaluation Report provided by an
independent certified
public accountants' firm entrusted by the two
parties. However, the renting fee during the extended leasing term
shall be
maximumly 5% higher than that during the previous 3-year leasing
term.
2. Be that as it
may otherwise
stipulated, the two
parties irrevocably agree
that
Party B has the
right to terminate this Agreement at any time;
however, Party B
should notify Party A in writing with a three-month
advanced notice.
Article 3
Rental, Time and Mode of Rental Payment
1. According to
Attachment 1 of this Agreement, the parties hereby agree that,
the
rental under this Agreement is RMB one million six hundred and
nineteen
thousand and two
hundred (1,619,200)
yuan per year.
If the actual
lease
term
is less than one year,
Party B shall pay the
rental proportionally
according to the actual lease term to Party A.
2. The rental
shall be transferred to the account appointed by Party A within
the
first ten days of each quarter starting from the year when this
Agreement comes into effect.
Article 4 Rights
and Obligations of Party A
1. Party A
warrants handing over all the Leased Equipment to Party B that
have
not
been delivered at the time and place according to this Agreement, and
that
the Leased Equipment
are in good
condition and can be used for the
purposes agreed in
