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Lease
Contract of Premises
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Leaser:
Tianjin Milk Goat Dairy Co., Ltd.
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Lessee:
Tianjin Yayi Industrial Co., Ltd.
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Business
license No.: 120193000005194
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Business
license No.: 120193000003231
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Address:
6-2-801, Tianfa Technology Park,
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Address:
C Unit, 4
th floor,
D1, Xinmao
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Huayuan
Industrial Park
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Technology
Park, Huayuan Industrial Park
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Postal
code: 300384
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Postal
code: 300384
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Tel:
58691665
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Tel:
88239888
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In
accordance with related laws and regulations, both parties
have reached agreement on the following:
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1.
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The
premises to be leased
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The
leaser leases a leasehold with a total area of about 30,165
square meters to the lessee, including a three-story building
of milk powder and milk tablet workshops with an area of
13,365 square meters, a two-story building of liquid milk
workshop with an area of 6,360 square meters, and a
three-story building of warehouses with an area of 10,440
square meters.
The
function of the leasehold is to be used as workshops and
warehouses, all of which will be leased to the lessee for use.
If the lessee needs to change the function, it must have the
leaser’s written consent. All the procedures required
for changing the function should be covered by the lessee as
per related regulation of the government. All expenses
required for changing the function should be paid by the
lessee.
The
leasehold is leased as a whole, which the lessee should manage
on its own. The premises and warehouse involved should be
constructed in accordance with the standards requested by the
lessee.
The
lease term is 21 years, starting from September 1, 2008 till
August 30, 2029.
Twelve
months before the end of the term, with the lessee’s
proposal and the leaser’s consent, both parties will
sign a new lease contract about the leasehold. Under the same
leasing conditions, the lessee has the priority.
During
the construction, the lessee has the right to stop the
construction action which is not up to the requirement of the
attachment. Only after the leaser has corrected its action
according to the construction standard stated in the
attachment of the contract, can the construction be resumed.
The loss brought by the delay should be undertaken by the
leaser. Meanwhile, the leaser should follow related laws,
regulations and the construction industry requirement of
People’s Republic of China. Party A should strictly
follow the charts provided by party B to construct. The charts
will be attachment of this agreement.
Within
10 months after the contract is effective, the leaser should
transfer the leasehold to the lessee for use as it is, and the
lessee agrees to rent the leasehold and facilities as they
are. During the transfer, both parties should make a list and
sign on the list to confirm the condition of basic facilities.
Photographs can be attached. For those transferred by
installation, they should be confirmed at each
installation.
Rent
security
As
the leaser has promised not to raise the lease price of the
completely new premises, which are
built
as per the lessee’s requirement in the contract, within
three years, the leaser needs to prepay the
security.
The
amount of the security under this contract is twice the amount
of the rent of the first season, which is
RMB4,404,000.00.
(In
Chinese characters: RMB4,404,000.00)
Rent
From
the first year to the third year, the rent is RMB0.8 per day
per square meter, which is the basic rent. From the forth
year, the annual increase of the rent should not exceed 10% of
the basic rent. From the third year on, additional agreement
should be signed on each last month of a year about the annual
rent of the next year.
House-Keeping
Administration Expense
The
house-keeping administration fee is RMB1.00 per month per
square meter.
Power
Supply Volume Increasing Expense
The
procedures to increase the volume of power supply should be
covered by the leaser, while all the expenses (subject to the
actual expenses) caused by increasing the volume of power
supply should be undertaken by the lessee.
Before
signing this contract, the lessee should pay part of the rent
security, which is RMB2,000,000.00 to the leaser, and the
balance of the rent security should be paid off at one time
before September 1, 2008. By the end of the lease term, within
60 days after the lessee has paid off all the rent,
house-keeping administration expense and all the expenses
caused by the lease action, and after the lessee has returned
all the leasehold according to the contract, the leaser will
return the rent security to the lessee
unconditionally.
The
lessee should pay for the monthly rent on or before the
3
rd of
each month by remitting the rent to the account number appointed by
the leaser, or by other payment term agreed by both parties in
written form.
Accounting
Opening Bank of the Leaser: ___________________
Account
number: ______________________________________
If
the lessee pays the rent late, it should pay for late fee to
the leaser, with the amount of: the number of days delayed
times 3% of the rent payable.
The
lessee should pay to the leaser for the house-keeping
administration fee on or before the 3
rd of
each month or as stated in Clause4.3. If the house-keeping
administration fee is paid late, the lessee should pay for late fee
to the leaser with the amount of the number of days delayed times
3% of the house-keeping administration fee payable.
After
the contract is effective, the leaser should start to cover
procedures related to increasing the volume of power supply.
The expense caused by increasing the volume of power supply,
including but not limited to increasing the volume, should be
undertaken by the lessee. The lessee should pay to the leaser
for the related expenses during the procedure-covering
period.
During
the lease term, if the leaser transfers part of or all of the
property rights of the leasehold, the leaser should make sure
that the receiver of the property rights will continue to
implement the contract. Under the same condition, the lessee
has the priority to purchase the leasehold.
During
the lease term, the lessee has exclusive right of use to the
facilities of the leasehold. The lessee should be responsible
for the maintenance and annual survey of the facilities, and
should ensure that by the end of the contract term, the
facilities can be returned to the leaser in a reliable
condition together with the leasehold. The leaser has the
right to inspect and supervise on its condition.
The
lessee is responsible for properly using and maintaining the
leasehold and the facilities. The lessee should clear all the
malfunctions and risks in time, so as to avoid possibilities
to cause accidents.
During
the lease term, the lessee should take good care of the
leasehold. If the leasehold is damaged because of the
lessee’s misuse, the lessee should be responsible for
the repair and undertake the expense.
During
the lease term, the lessee must stric
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