Exhibit 10.6
Lease Agreement
Party A: Dalian
Wanbao Industrial Co.,LTD (the “Lessor”)
Party B: Dalian
Befut Wire & Cable Manufacturing Co., LTD
(“Lessee”)
Under the
principles of equal rights and mutual benefit, lessor and lessee
enter into a lease agreement whereby lessor leases to lessee a
plant site that was originally owned by Dalian Grain Drying Co.,
Ltd. The lease terms are as follow:
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Lessor leases
to lessee the plant site with properties that was originally owned
by Dalian Baolihang Grain Drying Co., LTD for the purpose of lessee
establishing a cable manufacturing plant. The said land with
properties are located in Qipan Village with valid land use
certificate. Details of the land and properties are as
follows:
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1. An office
building of 170 square meters
2. A boiler
room of 450 square meters
3. An
employee dormitory of 300 square meters
4. Power
facilities with power load of 400KW
5. Water
supply facilities
7. A land
area of 15 thousand square meters (All hardened surface)
II. The lease is
valid for 50 years starting from October 1, 2001 through October 1,
2051.
III. Lease amount and
payment method: Total lease amount is RMB 2.5 million
Payment method:
A security deposit of RMB 100 thousand will be paid within five
days of the execution of the lease agreement; another
RBM 900 thousand will be paid when approvals for design and
construction are secured. The remaining balance of RMB1.5 million
will be paid evenly over three years starting from the third year
of the lease. Payments should be made by November 30 of each
year.
IV. Responsibilities and
Obligations of Each Party
1. Lessor bears
the responsibility and cost for securing land use certificate and
land planning and construction permits.
2. With
lessor’s assistance, lessee bears the responsibility and cost
for securing construction design and construction permit. Both
lessor and lessee share the responsibility but lessee bears the
cost for obtaining certificate of building.
3. With
lessor’s active assistance, lessee bears the responsibility
and cost for securing permits needed for operations, such as
business license , environmental protection certificate and fire
safety certificate.
4. Lessor bears
the responsibility but lessee bears the cost for securing
governmental a
