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Factory Building Lease Agreement

Lease Agreement

Factory Building Lease Agreement | Document Parties: SHANGHAI KAI HONG TECHNOLOGY CO, LTD | SHANGHAI YUAN HAO ELECTRONIC CO., LTD. You are currently viewing:
This Lease Agreement involves

SHANGHAI KAI HONG TECHNOLOGY CO, LTD | SHANGHAI YUAN HAO ELECTRONIC CO., LTD.

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Title: Factory Building Lease Agreement
Date: 8/11/2008
Industry: Semiconductors     Sector: Technology

Factory Building Lease Agreement, Parties: shanghai kai hong technology co  ltd , shanghai yuan hao electronic co.  ltd.
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EXHIBIT 10.6

Factory Building Lease Agreement

This Factory Building Lease Agreement (the “Lease Agreement”) is entered into as of March 1, 2008 (“Effective Date”) in the city of Shanghai, by and between SHANGHAI KAI HONG TECHNOLOGY CO., LTD. (hereinafter referred to as “DSH”) with its registered office at No.1 Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China and SHANGHAI YUAN HAO ELECTRONIC CO., LTD. (hereinafter referred to as “Yuan Hao”) with its registered office at No.8 Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China

DSH and Yuan Hao are collectively referred to as the “Parties” and individually as a “Party”.

WHEREAS,

The Parties agree on the lease of a portion of the first floor of the Factory Building (as defined below) and a portion of the second floor of the Factory Building. Yuan Hao represents that it is the lawful owner of the Factory Building.

1. Definitions

Unless otherwise defined in this Lease Agreement, the terms used herein shall have the following meanings:

1.1 “Factory Building” shall mean the three-story building located at No.8 Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China.

1.2 “First Floor” shall mean the portion of the first floor of the Factory Building that is to be leased (Exhibit 1, first floor layout of the Factory Building).

1.3 “Second Floor” shall mean the portion of the second floor of the Factory Building that is to be leased (Exhibit 1, second floor layout of the Factory Building).

1.4 “Lease Floors” shall mean First Floor and Second Floor of the Factory Building.

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1.5 “Lease Term” shall mean the period of time in which DSH is entitled to use the Lease Floors, and Yuan Hao is entitled to receive rent from DSH in accordance with the terms and conditions of the Lease Agreement.

1.6 “DSH #2 Building” shall mean the building in construction located at No.2 Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China.

2. The Standard of the Factory Building

2.1 Yuan Hao shall provide minimum quality standards for the Factory Building and shall guarantee that ancillary facilities of the Factory Building and supports for the Lease Floors (such as the Factory Building elevators) are in compliance with all the relevant quality standards and meet DSH’s demands and requirements.

3. Lease Term

3.1For the Lease Floors, the Parties agree that the Lease Term shall begin on March 1, 2008 until the time when DSH #2 Building is leased by DSH.

3.2 DSH shall decide the initial lease date of DSH #2 Building and shall notify such initial lease date of DSH #2 Building not less than thirty (30) days before the expiration of the Lease Term.

3.3 The Parties agree that the Lease Term for the Lease Floors shall be terminated without further extension unless DSH gives written notice of a request to extend such Lease Term not less than thirty (30) days before the expiration of the Lease Term. Yuan Hao shall not terminate this Lease Agreement without DSH’s written approval. During the Lease Term extension period, the items relating to the rental set forth in Article 5 of the Lease Agreement shall be adjusted on the basis of the market prices at the time of the Lease Term extension and after consultation between the Parties.

3.4 If during the Lease Term or the Lease Term extension period, Yuan Hao receives from a third party a bona fide, legally binding offer to lease the portion of the Fourth Floor not already leased by DSH, Yuan Hao shall notify DSH of this fact. The notice shall specify all the terms of the bona fide third party offer. DSH shall then have thirty (30) days to lease that portion of the Lease Floors specified in the third party’s bona fide

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offer for the rent and related details set forth in Articles 4 and 5. Yuan Hao shall not lease any portion of the Lease Floors to any third party until the thirty (30) days has expired without DSH exercising its right of first refusal. Any other terms not specified in this Lease Agreement regarding the Lease Floors, both Parties shall negotiate and sign a supplemental agreement for these unspecified terms. Such signed supplemental agreement shall constitute a part of the entire Lease Agreement and shall have the same effectiveness as the entire Lease Agreement.

4. Total Lease Area of the Lease Floors

4.1 First Floor has a total lease area of 998 square meters.

4.2 Second Floor has a total lease area of 1,292 square meters.

4.3 Lease Floors has a total lease area of 2,280 square meters.

5. Rental

5.1 The Parties agree that the monthly rent per square meter for the First Floor shall be Renminbi (“RMB”) 26.07 per square meter. The total monthly rent for the First Floor shall be RMB 25,757.16 .

5.2 The Parties agree that the monthly rent per square meter for the Second Floor shall be RMB 26.07 per square meter. The total monthly rent for the Second Floor shall be RMB 33,682.44 .

5.3 The Parties agree that the total monthly rent for the Lease Floors shall be RMB 59,439.60 .

6. Deposit

DSH shall pay Yuan Hao a deposit amount of RMB 59,439.60 within ninty (90) days of the Effective Date of the Lease Agreement.

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7. Method of Payment

For the Fourth Floor, DSH shall pay the Rental in RMB to the RMB bank account as designated by Yuan Hao before the first day of every month.

8. Termination of the Lease Agreement

If either Party terminates the Lease Agreement prior to the expiration of the Lease Term without the consent from the other Party, the Party that terminates the Lease Agreement shall pay damages to the other Party to compensate for such Party’s actual loss. The amount of damages shall include, but not be limited to, the reasonable profits, out-of-pocket costs, legal service fees, Court fees, arbitration fees, accounting fees


 
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