EXHIBIT 4.7
Longcheng Industrial Area Common Property Tenancy Contract
Contract No: HTHT-006
Lessor (Party A): Shenzhen Land & Sun Industrial & Trade Co., Ltd.
Lessee(Party B): China Bao An Long Cheng Hi-Lite Electronic Factory, Shenzhen
Long Cheng Industrial Co., Ltd Plastic Metal Fty, Shenzhen
Long Cheng Nissin Precision Metal Plastic Factory
Place: Shenzhen City, Longhua Zhen
Date: 12th December, 2003
In accordance with The Contract Law of the People's Republic of China and
the relevant regulations, for the purpose of clarifying the rights and duties of
the lessor and lessee, after negotiation, both parties have come to an agreement
and this contract is made.
ARTICLE ONE: NAME AND AREA (BY CONSTRUCTION FLOOR AREA) OF THE LEASED PROPERTY:
Party A provides third to fifth floor of factory building number seven,
the total construction area is 3,180 square meters.
ARTICLE TWO: PAYMENT OF RENT AND OTHER EXPENSES
Party B shall pay the rent and management fee in the amount of
Rmb36,570--(equivalent to Rmb11.5 per square meter) to party A every month. The
rent shall be settled every month. Party B shall pay the rent of the month
before the 10th day of the month by cash or by transferring accounts to Party A
or by remittance to Party's account. Rental fee will be increased by 1% per
year.
ARTICLE THREE: DEPOSIT
Party B shall pay two month's deposit of rent and management fee in the
amount of Rmb73,140---- to party A. After deducting any unpaid rent and
renovation fee from the deposit, Party A shall return the balance to party B.
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ARTICLE FOUR: TERM OF TENANCY
The term of this lease is starting from February 1st, 2004 to February
28th, 2009 with effect on February 1st, 2004.
ARTICLE FIVE: MAINTENANCE OF THE LEASED PROPERTY DURING THE TERMS OF THE LEASE
During the terms of this contract, with the approval of Party A to alter
the structure of the leased property, Party B shall be responsible the cost of
the alternation. It is the responsibility of Party A to maintain the leased
property in good condition. Party B is responsible for the maintenance cost of
the leased property due to natural damage.
The terms of maintaining the leased property:
1. The main structure of the leased property should be kept in good
conditions. For any change of the structure of the leased property, Party
B should get the approval from Party A.
2. The leased property and all accessory facilities cannot be changed and
damaged.
3. The doors and glass should be maintained in good conditions. The windows
should not be painted by any colour paint.
4. To ensure the supply of water and electricity is sufficient for the leased
property. The drainage system and the fire exit should not be blocked.
ARTICLE SIX: DUTIES FOR BOTH PARTY A AND PARTY B:
Party A's duties:
1. To deliver the factory, dormitory, apartments, and canteen to Party B as
scheduled and be responsible for the water supply, road access, and
electricity supply .
2. To assist Party B in handling the formalities of obtaining business
license, tax registration (all necessary expense to be borne by Party B)
3. During the term of this contract, Party A shall use its best endevaours to
assist Party B in resolving some difficulties in the actual operations.
4. To guarantee the safety from fire, the good hygienic condition of the
environment and deal with the complaints promptly.
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Party B's Duties:
1. To pay the rent and other related expense as scheduled.
2. To be responsible for the water, electricity and other charges for the
leased factory, apartments, canteen and dormitory (including public
facilities such as kitchen, etc.) Party B shall also be liable to the
maintenance of the leased factory, dormitory, apartments, canteen, kitchen
and other facilities during the period of tenancy (Party A can provide
services for consideration)
3. Party B shall, during the term of this lease, comply with the relevant
laws, orders of China and the relevant regulations and shall obey the
unified management rules and regulations of the industrial area. Shall not
conduct any activities in violation of the laws, damaging the public
interests or changing the contents stipulated in this contract.
4. Not to sub-lease the leased factory, apartments, dormitory or canteen to a
third party operator.
5. Factory owners shall designate a person to be responsible for fire
prevention and shall establish a fire prevention team of 5-7 persons,
install fire fighting equipment in the factory as required by the
regulations. Fire exits of the factory and dormitory shall not be blocked
and offenders of this rule will be dealt with as offenders of the fire
prevention regulations. The fixed fire fighting equipment, water tank,
factory owners shall not install iron door in the leased factory or
dormitory, use the water in the fire-fighting water tank and the fire
hydrant improperly such as to clean the floor. Offenders shall be fined
and shall be dealt with according to the fire prevention regulations.
6. Party B shall not, during the term of this lease affect the normal
business of other factory owners and people when using the public
facilities and common areas; and shall educate the staff to protect the
public property and pay compensation according to price if damaged.
7. If Party B alters the leased factory, dormitory, canteen, kitchen and
other building structure and facilities without the prior consent of Part
A, Party B shall pay Party A a compensation equivalent to 100% of the
value of the altered facilities.
If Party B is seriously in breach of sub-articles 1,3,4,7, of Article Six
(Party B's duties), Party A is entitled to dissolve this tenancy
relationship, terminate this tenancy contract, and repossess the property.
Party B's security deposit shall be forfeited by Party A for no
consideration. Party B shall bear all the consequences arising there from.
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If Party A is seriously in breach of its duties under Article Six (Part
A's duties) and does not deal with in promptly, Party B is entitled to
investigate and affix responsibility.
ARTICLE SEVEN: LIABILITIES OF BREACH OF CONTRACT
Liabilities of Party A for breach of this tenancy contract:
1. Fail to deliver possession of the leased property to the lessee as
scheduled in contract.
2. Fail to provide the relevant equipment to lessee as scheduled in contract.
Liabilities of Party B for breach of this tenancy contract:
1. To be responsible for the necessary repair or compensation for damage to
the leased property due to the improper use or maintenance by the lessee.
2. To be responsible for the compensation of all losses arising from the
unauthorized alterations of the leased property and equipment.
3. Fail to return the leased property according to schedule after terminating
the contract. Apart from the rent payable, the lessee shall pay the
contractual penalty. Penalty for every day of delay is 0.1% of the monthly
rent with a maximum delay of 30 days.
4. Fail to pay the rent and expenses as scheduled. Unless paid on or before
the due date, penalty shall be calculated according to the total
outstanding amount owed by the lessee, with 0.1% of the total overdue
amount per day as the overdue penalty.
Calculating method:
Total amount of the overdue penalty = total amount of rent and expense per
month x No. of days overdue x 0.1%
Party A has the right to take the following actions if the Party B has breached
the contract according to the situation:
1. Impose a fine of two month's rent and expense as the penalty for breach of
contract;
2. Order the lessee to move out and surrender the factory;
3. If Party B fails to pay the rent and expense for 2 months, Party A is
entitled to take legal action against Party B and claims back the entire
unpaid fees.
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ARTICLE EIGHT: EXEMPTION PROVISION
Party B shall not be liable for any repairs or compensations to Party A if
the damages or losses of the leased property are caused by the force majeure.
However, Party B shall report and explain the situation to Party A and give the
legal documents from the relevant departments to Party A if necessary.
ARTICLE NINE: DISPUTE RESOLUTION
If a dispute arises during the performance of this contract, both parties
shall resolve the dispute through consultation. If the dispute cannot be
resolved through consultation, the dispute shall be submitted to the authority
in charge of this contract for arbitration or to a People's Court with competent
jurisdiction for adjudication.
ARTICLE TEN: OTHER MATTERS
1. During the term of this contract, if any party proposes to terminate this
contract before its expiration, that party shall give a written report to
the other party 6 months in advance. If both parties agree to the
termination after negotiation, this contract may be terminated. The party
proposing to terminate this contact shall pay the other party 3 months'
rent as penalty for breach of contract.
2. If Party B does not extend this contract after its expiration, Party B
shall repair and restore the leased property according to the relevant
standards and pay all the fees. Then Party B shall return all the security
deposits to Party B once and for all. If the repair is done by Party A,
the costs of repair shall be deducted from the deposits.
3. If the lessee wishes to extend the tenancy, the lessee shall submit a
written application to the lessor within 6 months before the expiration of
this lease. The lessee shall have the preferential right to lease the
property under equal conditions, but a new contract needs to be executed
by both parties.
4. Any matters not clearly stated in this contract will follow the relevant
regulations in the Economic Contract Law of the People's Republic of
China. Supplementary regulations may be made by agreement between both
parties through consultation and such supplementary regulations shall have
the equal legal effect as this contract.
5. The terms of this contract is originally written in Chinese characters.
This contract is in a form of four copies. Party A and B have two copies
respectively having the same legal effect. It comes into effect after it
has been signed and stamped by the representative from both parties.
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Lessor(stamp)
(Chop of Shenzhen Land & Sun Industrial &
Trade Co., Ltd.)
Unit address:
Legal Representative: (Signature)
Agent:
Telephone no:
Bank account:
Number of bank account:
Lessee (stamp):
(Chop of Shenzhen Long Cheng Industrial Co.,
Ltd. Plastic Metal Fty.)
(Chop of China Bao An Long Cheng Hi-Lite
Electronic Factory)
(Chop of Shenzhen Long Cheng Nissin
Precision Metal Plastic Factory)
Unit Address:
Legal Representative: (Signature)
Agent:
Telephone no:
Bank account:
Number of bank account:
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