Attached files
Exhibit
10.7
BUILDING
LEASE AGREEMENT
THIS
AGREEMENT is made between the Leaser, _Mr. Wu Shuigen___ (hereinafter referred
to as “Party A”) and the Lessee, Jiangsu Taicheng Plastic
Products Co., Ltd. (hereinafter referred to as “Party B).
Whereas
in accordance with pertinent laws and regulations and through amiable
consultation, both Parties have reached the following premises and office
buildings lease agreement for compliance.
ARTICLE
1 LOCATION, AREA, FUNCTIONS AND USE OF THE LEASED PROPERTIES
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1.1
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Party
A shall lease its office buildings, premises, warehouses, dining rooms and
dormitories located at No. 80 Baohua Town
Development Zone (hereinafter referred to as “the Leased
Properties”) to Party B for Party B’s use. The area covered by the Leased
Properties amounts to 8,500 square
meters.
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1.2
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The
Lease hereunder shall take the form of charter and the Leased Properties
shall be managed by Party B itself.
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ARTICLE
2 TERM OF THE LEASE
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2.1
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The
term of the lease shall be three (3)
years, from April 1, 2009
to April 1,
2012.
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2.2
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If
required three (3) months prior to the expiry of the lease term and with
Party A’s consent, both Parties will conclude a new agreement on matters
relating to the Lease. Under the same terms and conditions of lease, Party
B shall be entitled to the right of
priority.
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ARTICLE
3 RENT-FREE PERIOD AND THE DELIVERY OF LEASED PROPERTIES
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3.1
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The
Leases Properties shall be free from rent for one (1) month,
from April 1,
2009 to April 30, 2012.
The commencement date shall be the day next to the expiry of lease-free
period and rents shall be charged from the commencement date
on.
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3.2
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Party
A shall, within fifteen (15)
days as of the effectuation date of this Agreement, deliver the Leased
Properties in the current condition and Party B agrees to rent the Leased
Properties and facilities in the present
conditions.
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ARTICLE
4 BUILDING RENTS AND EXPENSES
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4.1
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RentsThe
rents shall be charged as RMB 6.00 per square
meter per month. In case of any change to the rents, the amount mutually
negotiated and agreed by both Parties shall
prevail.
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1
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4.2
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Fees
for Power Capacity Expansion It is agreed by both Parties that the
formalities for power capacity expansion shall be applied and completed by
Party A and all the costs and expenses required for the power capacity
expansion shall be assumed by Party
B.
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4.3
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Any
and all building taxes and land use taxes shall be paid by Party B. Such
taxes shall be deducted from the
rents.
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ARTICLE
5 PAYMENT
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5.1
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Party
B shall, prior to or on the first day of every
September pay Party A the rents of that period. Such rents shall be
remitted by Party B to the account designated by Party A or be paid by any
other method agreed by both Parties in
writing.
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ARTICLE
6 TRANSFER OF THE LEASED PROPERTIES
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6.1
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During
the lease term, if Party A will transfer all or part of the ownership of
the Leased Properties, Party A shall ensure that the transferred shall
perform this Agreement. Under the same terms and conditions for transfer,
Party B shall be entitled to the right of priority to purchase the Leased
Properties.
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ARTILCE
7 REPAIRE AND MAINTENANCE OF SPECIAL FACILITIES AND SITES
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7.1
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During
the lease term, Party B shall be entitled to the exclusive use of the
facilities attached to the Leased Properties. Party B shall be responsible
for the maintenance, annual review, and shall ensure that it return these
special facilities in reliable operational condition together with the
Leased Properties. Party A shall be entitled to check and supervise
thereon.
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7.2
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Party
B shall be responsible for the safe sue and maintenance of the fixtures of
the Leased Properties. Any possible breakdown or risk shall be eliminated
promptly so as to avoid possible potential
danger.
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7.3
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During
the lease term, Party B shall take good care of the Leased Properties. In
case of any damage to the Leased Properties due to Party B’s improper use,
Party B shall repair at Party B’s own
expenses.
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ARTICLE
8 PROPERTY MANAGEMENT
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8.1
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In
case of expiry of the lease term or early termination of the Agreement,
Party B shall, prior to or on the date of expiry or the date of early
termination, clean up the Leased Properties and return them to Party A
upon the completion of the move. If Party B fails to tide up the
miscellaneous articles, costs and expenses resulting from Party A’s tiding
up such miscellaneous articles shall be borne by Party
B.
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2
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8.2
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Party
B shall observe the laws of the People’s Republic of China, regulations of
this municipality and Party A’s property management rules on the Leased
Properties in its use of the Leased Properties. Otherwise, Party B shall
assume corresponding liabilities. In case that Party B’s violation of the
abovementioned provisions affects the normal operation of other users
around the buildings, Party B shall indemnify the losses resulting
therefrom.
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ARTICLE
9 TERMINATION
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9.1
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During
the lease term, without Party A’s consent, Party B shall not terminate
this Agreement in advance. If it is necessary for Party B to have an early
termination of this Agreement, the Agreement may be discharged prior to
the expiry of the lease term if Party B gives notice to Party B three (3)
months in advance and goes through the following procedures: a. to return
the Leased Properties to Party A; b. to pay off the rents for the leased
period and other expenses arising from and with connection to this
Agreement.
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ARTICLE
10 EXEMPTION
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10.1
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In
the event that it is impossible for Party A to continue to perform this
Agreement due to any change to the government’s laws and regulations on
lease, Item 2 of this Article 10 shall be
implemented.
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10.2
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In
the event that it is impossible for either Party to perform this Agreement
due to serious natural disaster, war or any other unforeseeable,
unpreventable and inevitable force majeure event, the Party suffering the
foregoing force majeure event shall promptly notify the other Party by
post or fax, and shall, within thirty (30) days, provide details of the
force majeure event and supporting documents proving that it is impossible
to perform all or part of the Agreement, or proving the causes for delayed
performance. The supporting documents must be those issued by the notary
agency at the place where the force majeure event arises. If it is
impossible to obtain the supporting document issued by the notary agency,
other effective evidence must be provided. In such case, the Party
suffering the force majeure event shall be exempted from liability
accordingly.
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ARTICLE
11 TERMINATION
Where
this Agreement is terminated prior to or on the expiry of the effective lease
term and there is no lease renewal agreement reached by both Parties, Party B
shall move out of the Leased Properties and return the Leased Properties to
Party A. If Party B fails to move out of the Leased Properties and return the
Leased Properties within the stipulated time, Party B’s rents payable to Party A
shall be doubled, provided that Party A shall be entitled to notify Party B in
writing that Party A will not accepted the doubled rents and shall have the
right to recover the Leased Properties and compulsorily move the articles inside
the leased site out of the Leased Properties without assuming any liability for
custody.
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ARTICLE
12 RELEVANT TAXES AND DUTIES
In
accordance with state and municipal provisions concerned, stamp duties,
registration fees and notary fees and other taxes and duties shall be
respectively borne by Party A as the Leaser and Party B as the lessee pursuant
to provisions concerned. Procedure formalities shall be completed by Party
A。
ARTICLE
13 GOVERNING LAW
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13.1
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Any
dispute arising from the performance of this Agreement shall be solved
through consultation by both Parties. If there is no agreement reached
through consultation, the case may be settled through arbitral proceeding.
It is agreed by both Parties that the arbitral institution for the dispute
shall be Shenzhen Branch of China International Economic and Trade
Arbitration Commission (CIETAC).
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13.2
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This
Agreement shall be governed and construed by the laws of the People’s
Republic of China.
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ARTICLE
14 OTHER PROVISIONS
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14.1
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In
case of anything uncovered by this Agreement, a supplementary agreement
may be separately concluded through consultation by both
Parties.
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14.2
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This
Agreement is in four (4) copies with each Party holding two (2)
copies.
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ARTICLE
15 VALIDITY
This
Agreement shall become effective when this Agreement is signed and sealed by
both Parties and Party A receives the initial lease premium from Party
B.
Party A
(Seal): _____________________________
Authorized
Representative：__________________
Party B
(Seal): _____________________________
Authorized
Representative: ___________________
Date:
_____________
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