Lease Agreement
This Lease
Agreement (“this Agreement”) is entered on the basis of
mutual benefit through friendly consultation by and among the
following Parties:
Leaser:
Shanghai Changlong Industry Co.
Address: 588
Liannong Rd., Qunli Village, Zhuanqiao Town, Minxing
District.
Legal
representative: Xiangdong Yan
Bank
account:
Shanghai Rural
Commercial Bank, Zhuanqiao Branch
324484-08010074304
Lessee:
Perfectenergy Solar-Tech (Shanghai) Ltd.
Address:
Legal
representative:
Whereas:
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The Leaser has
the right to provide the lease of the factory building No. 1
located at 569 Zhuansheng Rd., Xinzhuang Industry District,
Shanghai to the Lessee.
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As agreed, the
Parties shall act in accordance with the terms and conditions of
this Agreement.
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Article 1
Leased Property
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The Leaser
agrees to provide the lease of the factory building No. 1 located
at 569 Zhuansheng Rd., Xinzhuang Industry District, Shanghai to the
Lessee.
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The Lessee has
full knowledge of the condition of the property (including factory
building, offices and spaces) and agrees to take the
lease.
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Constructional
area: 1,943.16 m 2
Total size of
land: 2,943.16 m 2
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Due to
historical reasons, the property has not been granted with title
certificate.
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Article 2
Conditions of Property and Utilities
2.1 The Leaser
shall ensure the electricity and water supply of the property no
less than the following amount of supply:
Electricity:
300 KVA
Water:
10t/day
2.2 The Lessee
shall notify the Leaser in writing 5 days before executing this
Agreement and assist the Leaser with facilitation of the utilities
in 2.1.
2.3 Upon
Leaser’s fulfillment of 2.2, the Lessee shall pay the
relevant fees and charges of the utilities. See the method of
payment and calculation in the Schedule 1 attached
hereto.
2.4 If
necessary, the Lessee can apply for international and domestic
telephone service with the Shanghai Bureau of Telephone Service and
undertake the relevant expense.
Article 3 The
Term of the Lease and the Rent
3.1 The term of
the lease is two years, from March 15, 2008 to March 14, 2010. The
rent is exempted for the period from March 15, 2008 to May 14,
2008. The rent shall be paid from May 15, 2008.
3.2 The rent
shall be 480,000 RMB per year, i.e. 40,000 RMB per month,
including:
Factory
workshop: 1,943.16m 2 x
0.65 RMB/m 2
/day x 365 days = 461,014.71
RMB
Property
Management: 1,943.16 m 2 x0.82 RMB/ m 2 /month x 12 months=19,120.70 RMB
Upon the
expiration of this Agreement, if the Parties agree to renew the
lease, the rent shall be adjusted within 5% every three years
starting the fourth year according to the index of national market
price.
3.3 Method of
payment
Within 10 days
upon the execution of this Agreement, the Lessee shall pay the
Leaser an amount of four months’ rent, among which an amount
of one-month rent is the deposit.
The Lessee
shall pay the rent on a quarterly basis. The quarterly rent shall
be paid 10 days before the quarter.
3.4
Deposit
Upon the
expiration of this Agreement, the Leaser shall refund all the
deposit to the Lessee. Before the expiration of this Agreement, if
the Lessee ends the lease partially, the deposit remains the same
until the one-off full amount of deposit is refunded when the
Lessee ends the entire lease. In any circumstance if the
Lessee fails to pay the rent, the Leaser has the right to deduct
the unpaid rent from the deposit. The Leaser also has the right to
recover the balance of the payment if the deposit is insufficient
to cover the unpaid rent. With regard to any damage
caused to the Leaser by the Lessee, the Leaser has the right to
deduct the amount of the damage from the deposit.
Article 4 The
Renew of the Lease and the Priority of Lessee
4.1 No Party
shall terminate this Agreement without a legitimate reason.
However, in case of housing removal under city planning scheme, the
Lessee shall, unconditionally, assist and coordinate with the
Leaser with respect of the moving and undertake all the expenses
generated thereof. The Leaser is not subject to the compensation of
such moving. The Lessee shall apply with the Leaser in writing at
least three months before the expiration of the lease if the Lessee
wants to renew the lease. Under the same condition as stated in
3.2, the Lessee has the priority to continue the lease. Upon the
consultation of both Parties, a new leasing agreement shall be
signed and executed for renewed lease.
4.2 Upon the
expiration of this Agreement, if no agreement has been reached to
continue the lease, this Agreement shall terminate automatically.
In that case, the Lessee shall move out of the property safely and
entirely.
Article 5
Property Management
5.1 The Leaser
shall periodically inspect and maintain the property and its
auxiliary facilities. However, in case of any damage caused by the
Lessee, the Leaser is not subject to this section.
5.2 The Leaser
shall be responsible for the cleaning, landscaping and safety
outside of the factory building while the Lessee shall be
responsible for the cleaning and safety of the interior of the
building.
5.3 The Lessee
shall assist and coordinate with the Leaser with respect to regular
inspection and maintenance of the property.
Article
