Supplementary Agreement
to Lease Agreement dated on 28th June 2004 ——
0701-01
This
Supplementary Agreement (hereinafter referred to as "the
Supplementary Agreement") is entered into on December 31,
2007, in the city of Shanghai, by and between Shanghai Kai
Hong Technology Co., Ltd. (hereinafter referred to as "Party
A") with
its registered office at
No.1, Lane 18, SanZhuang Road
Songjiang Export Processing Zone Shanghai, China
and
Shanghai Yuan Hao Electronic Co., Ltd. (hereinafter referred to as
"Party B") with its registered office at
No.1, Lane 18, SanZhuang Road
Songjiang Export Processing Zone, Shanghai, China.
Party
A and Party B are collectively referred to as the
“Parties” and each as a
“Party”.
WHEREAS,
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1.
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Party
A and Party B, on June 28th, 2004, entered into the Lease Agreement
(hereinafter referred to as “the Lease Agreement”) of
the First Floor and Second Floor of the building located at
No.1 Lane 18, SanZhuang Road Songjiang Export Processing Zone,
Shanghai, China (“New Building”)
that Party B is the owner representative and has the legal right
for leasing the New Building and relevant facilities, including
Distribution building, Power Building, Lobby (hereinafter referred
to as “the Original Lease Areas”)
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2.
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Now
through amicable discussion, Party B agrees to lease out and Party
A agrees to lease in the Fourth and Fifth Floor of the New Building
and relevant facilities, including Power Building and Lobby (see
attachment) (hereinafter referred to as “the New Lease
Areas”).
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The
Parties enter into the Supplementary Agreement as
follows:
1. Gross Area of the New Lease Areas
1.1
The gross area of the Fourth Floor of the New Building
(“Fourth Floor”) is
3,243.4 square
meters.
1.2
The gross area of the Fifth Floor of the New Building
(“Fifth Floor”) is
3,243.4 square
meters.
1.3
The gross area of the Lobby of the New Building
(“Lobby”) is
128 square
meters, and Party A will share 40% of the Lobby, which is
51.2 square
meters as a consequence of leasing the new area. The total gross
area of the lease area (“Total Lease Area”) is
6,538 square
meters.
1.4
The gross area of the three-story Power Building that will be
built to support the Fourth and Fifth Floor of the New
Building is
960 square
meters with 320 square meters for each story. Party A will lease
the three-story Power Building with a total area of
960 square
meters.
1.5
Party B shall locate an empty land lot outside the New
Building and appoint a construction operator with relevant
qualification to build the Power Building and shall deliver
the said Power Building to Party A for Party A’s use
subsequent to the completion of such
construction.
1.6
Party B agrees to install a new elevator for the New Building
at its own expenses.
2. Lease Term
For
the above New Lease Areas, the initial lease term is hereby
from the date of 1 March 2007 to the date of 28 February 2012.
The lease term shall be automatically renewed for successive
five (5) year terms when the initial lease term expires unless
Party A gives termination notice not less than 30 days before
the expiration of any lease term. In its operating period,
Party A has the priority to the New Lease Areas defined in
this Supplementary Agreement and Party B shall not terminate
this Supplementary Agreement without reasonable cause and
Party A's consent in writing.
For
the renewal period, the items relating to the rental
stipulated in Section 3 of the Supplementary Agreement shall
be adjusted on the basis of the market price at that renewal
time.
3.
Rental and Other Fees
Party
A agrees to pay Party B rental fee, Building Management Fee
and Ground Lease Fee as follows:
3.1
Rental
The
Parties agree that the monthly rental fee of the above New
Lease Areas shall be as follows:
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(1)
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The
gross area of the Fourth and Fifth floor of the New Building
is
6,486.80 square
meters, monthly rental fee is US$
3.15 per
square meter and the total monthly rental fee shall be US$
20,433.42.
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(2)
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The
gross area of the Lobby of the New Building is
128 square
meters, and Party A will share 40% of which is
51.2 square
meters as a consequence of leasing the new area, monthly rental fee
is US$
3.15 per
square meter and the total monthly rental fee shall be US$
161.28.
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| (3) |
The
gross area of the Power Building of the New Building for the Fourth
and Fifth Floor is
960 square
meters, monthly rental fee is US$
3.15 per
square meter and the total monthly rental fee shall be US
$3,024.
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The
total rental fee for the lease area shall be
US$
23,618.70 .
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3.2
Building Management Fee
Party
A agrees to pay Party B the Building Management Fee based
on
5 %
of the monthly rental fee (US$
23,618.70 )
referred in above Section 3.1. The total monthly Building
Management Fee is
US$
1,180.94 .
Party
B shall provide Party A the management service as
below:
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(1)
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the
Guard service for the public area outside of the Original Lease
Areas and the New Lease Areas.
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(2)
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the
maintenance and repairs of the buildings and facilities of the
lease area.
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(3)
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the
maintenance and repairs of the public facilities of the public
factory area and buildings.
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(4)
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the
cleanliness and sanitation of the lease area and public
area.
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(5)
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the
landscaping of the lease area and public area, including the
planting and maintenance.
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(6)
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other
building management service to be provided by Party B.
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3.3
Ground Lease Fee
As
the ground outside of the New Building is reduced to
5,906.5 square
meters due to the construction of the Power Building for the Fourth
and Fifth Floor as set forth in the Sections 1.4 of this
Supplementary Agreement, both Parties agree to modify the Section
4.3 of the Lease Agreement regarding the Ground Lease Fee upon the
execution of this Supplementary Agreement into “Party A
agrees to pay Ground Lease Fee on the
100% of
the gross area of
5,906.5 square
meters as of 1 May 2007 (i.e. calculated at US$
0.5 per
square meter, Party A shall pay monthly Ground Lease Fee of
US$
2,953.25 ,
for Party A pays a monthly Ground Lease Fee of US$
1,867.95 under
the Lease Agreement dated 1 March 2006, so the incremental Ground
Lease Fee is
US$
1,085.30 ).”
3.4
Subject to the above figures in Section 1 and Section 3, Party
A shall pay a total monthly fee of
US$
25,884.94 to
Party B under this Supplementary Agreement from 1 March
2007.
3.5
Rental-free Period
3.5.1
In consideration of Party A’s decoration projects for
the Fourth and Fifth Floor of the New Building, Party B hereby
grants Party A and Party A is entitled to a 60-days
r
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