EXHIBIT 4.32
No TD0154
Lease Agreement
LESSOR: BEIJING GAOLING ESTATE DEVELOPMENT CO. LTD.
LESSEE: BEIJING AIRINBOX INFORMATION TECHNOLOGIES CO., LTD.
The lessor is the owner of the Tenda Building, which the lessor agrees to
let and the lessee agrees to lease. Pursuant to the Contract Law of the
People's Republic of China and other relevant laws and regulations, two
parties come into a lease agreement as follows to stipulate the rights and
obligations of the lessor and lessee.
Article 1 Rental, Property Management Cost and Deposit
1.1 The lessor agrees to let the rooms of 01/02/03/09/10/11 in 7th Floor of
Tenda Building to the lessee as office. The lease area of the rooms
(hereinafter referred to as "Leased Rooms"), mutually confirmed by the two
parties, is 1090 square meters in total. (Appendix 1 of this Agreement is
the surface area drawing of the Leased Rooms, which is used exclusively to
confirm the location.)
1.2 The lease term is 1 year 3 months and 7 days, commencing from
21 February 2005 to 27 May 2006.
1.3 The rent is USD 13.4/Month/Sq.M. (RMB 3.71 Yuan/Day/Sq.M) while the
Property Management Fee is USD 3.6/Month/Sq.M (RMB1 Yuan/Day/Sq.M).
Therefore the total fee for each month (including the property management
fee) is USD 18,530.00 (RMB 153,799.00 Yuan). Every month is calculated as
30 days in this agreement. The rent and property management fee shall be
paid monthly and prepaid every month; that means the lessee shall pay the
rent and property management fee of next month before 21st of each previous
month in RMB. The aforesaid fee will not be regarded as having been made
unless the lessor has received the payment. The lessor shall issue
corresponding legal receipts to the lessee once the lessee has made the
payment.
1.4 The lessor is entitled to adjust the rent and property management fee
in the case that the lease term is more than 2 years.
1.5 The lessee shall give three months' rent and property management fee to
the lessor as the guaranty of performing this Agreement (hereinafter
referred to as "deposit"), which amount to USD 55,590.00 (RMB 461,397.00
Yuan, in words: four hundred sixty one thousand three hundred and ninety
seven Yuan)
1.6 The lessee may terminate this Agreement by written notice to the
lessor, in the case that the lessor fails to deliver the Leased Rooms to
the lessee without any fault or negligence. Under such circumstances, the
lessor shall return the deposit, rent and property management fee, which
have been collected, to the lessee (without charging any interest of the
aforesaid fees).
1.7 The rent and property management fee shall be paid monthly and prepaid
every month within 10 days commencing from each lease term begins, that
means the lessee shall pay the rent and property management fee of next
month before the 21st of each previous month (including 21st of each
month). The aforesaid fee will not be regarded as having been made unless
the lessor has received the payment. The lessee shall pay the lessor a late
fee, which is two per ten thousand of the delayed payment per day, provided
that the lessee failed to make the payment pursuant to the period
stipulated in the Agreement.
1.8 The lessor is entitled to deduct the deposit in compensating lessor's
losses and the delayed payment in case that the lessee violates the
Agreement (including delaying the payment of rent, property management fee,
compensating lessor's damages due to lessee's failure in performance of the
agreement). When the amount of the deposit kept by the lessor after the
deduction of rent therefrom is less than the amount prescribed herein in
clause 5, the lessee shall replenish it within three days after receipt of
a written notice from the lessor. Otherwise, the lessor has the right to
take such measures as cutting the telephone line or power until the
agreement is terminated by lessor. The lessee shall compensate lessor's
economic losses result from deposit deficiency.
1.9 In case the lessee fully performs this Agreement, the lessor shall
return the whole deposit (without interest) to the lessee within 30 days
from the day when this agreement is expired, the lessee returns the Leased
Rooms and pays up relevant fees to lessor.
1.10 Without the permission of the lessor, the lessee cannot assign the
right of claim for the return of the deposit to any third party or use it
as a guaranty for lessor's debt.
Article 2. Termination by the lessee during the valid period of this Agreement
With written notice to the lessor and paying the whole deposit, this
Agreement can be terminated by the lessee during the valid period.
Article 3. The Equipments and Reconstruction of the Leased Rooms
3.1 The lessor shall furnish the house with the following equipments:
1. central air-conditioner, ceiling(including intake, automatic
smoke sensor, gushing machine, daylight lamp and head lamp, etc.)
2. 220 v electrical plug, communication circuitry, antenna plug for
satellite TV.
3.2 In needs of making any fitments or reconstruction of the Leased Rooms,
the lessee shall provide the lessor with blueprint and scheme of the
fitments and reconstruction as well as the introduction of the construction
enterprise and its personnel in advance. The construction enterprise is
obligated to pay management fee RMB 7,106.80 Yuan (in words: RMB SEVEN
THOUSAND ONE HUNDRED AND SIX YUAN EIGHTY JIAO) to the lessor. The
construction can be commenced, provided that the payment of construction
guaranty fee and management fee is paid by the construction enterprise. The
lessor shall refund the construction fee to the lessee, in case that,
through lessor's checking and accepting, the lessor confirms the
construction is completed based on the blueprint and scheme approved by the
lessor and no damages has been made to equipments or facilities of the
Leased Rooms. The lessee shall bear the taxes of the additional fitments
and equipments, regardless the account name on the bill or what kind of fee
item the tax shown on the bill.
3.3 In case that the lessee rents a direct telephone number (the account is
opened under the name of the lessor in the telecom company) from the
lessor, who will bear the telephone fee instead of the lessee, the lessee
shall pay RMB
5000Yuan/each line (in words: RMB FIVE THOUSAND YUAN each line) as deposit
of the telephone fee and RMB 300 Yuan /Year/Line (in words:RMB THREE
HUNDRED YUAN every year for each line) as circuitry maintenance fee. After
paying the deposit of telephone fee and circuitry maintenance fee, the
lessee may choose telephone number and the lessor is responsible for
installing the telephone. The lessee shall pay each month's telephone bill
within 7 days after receiving the notice from the lessor. The lessor shall
refund the deposit of telephone fee without interest to lessee when the
Agreement is expired; In case that the lessee brings the direct telephone
number itself or open an account under the name of itself in the telecom
company, it shall pay the following fees in lump sum: circuitry occupation
fee of RMB 200Yuan/each line (in words: RMB TWO HUNDRED YUAN each line),
transfer fee of RMB 5 Yuan/each line (in words: RMB FIVE HUNDRED each line)
and circuitry maintenance fee of RMB 100Yuan/each line (in words: RMB ONE
HUNDRED YUAN each line). The lessor shall assist lessee in installing the
telephone.
Article 4. Re-leasing
After the expiry of the lease, the lessee has the right of priority to
extend the term of the agreement under the same circumstances, provided
that the lessee notifies the lessor in writing three months before the
expiry of the agreement. The terms and conditions of re-leasing shall be
negotiated by both parties (the range for the adjustments of the price
shall be made according to the rise or drop of the real estate index and
the general leasing price of the whole building). If the lessee does not
notify lessor in the aforesaid period, it will be regarded that lessee will
not re-lease the Leased Rooms and shall move out of the Leased Rooms before
the termination date of the Agreement.
Article 5. The Return of the Leased Rooms
5.1 After the expiry of the agreement, the lessee shall return the Leased
Rooms according to the time notified by the lessor. If the Leased Rooms
cannot be returned on time for the reason on the part of the lessee and
there is a new lessee, the lessor in entitled to request the lessee to
leave the Leased Rooms in 3 days and deduct part of or entire deposit in
compensating lessor's losses suffered from lessee's delaying in returning
the Lease Rooms. In case the deposit is not sufficient for compensating
lessor's losses, the lessor is entitled to claiming for
the insufficient part. If the Leased Rooms have not been rented to other
lessees, it will be deemed by the lessor that the lessee will re-lease the
Leased Rooms. In such circumstances, the lessee shall re-lease the Leased
Rooms. If lessee refuses to re-lease, the lessor will have the right to
request the lessee to move out of the Lease Rooms and deduct part of or
entire deposit in compensating lessor's losses suffered from lessee's
delaying in moving out..
5.2 When the lessee return the Lease Rooms after expiration, the Leased
Rooms shall be in good status(excluding reasonable wear and tear);the
lessor has right to deduct the deposit to compensate corresponding
reasonable losses when it finds that the rooms and equipments is damaged
from the reason on part of the lessee. In case the deposit is not
sufficient enough to compensate lessor's losses, the lessee shall replenish
the margin in case that the deposit is insufficient for the losses within 3
days after receiving lessor's written notice.
5.3 As to accession made by the lessee to the Leased Rooms (shall be
approved by the lessor), the lessor is not certainly to request the lessee
to restore it to the original conditions. The lessor shall not pay the
expenses back for the accession even if the lessee does not make the
restoration.
Article 6. The Obligations of the Lessee
The lessee agrees to abide by the following provisions:
6.1 The lessee shall abide by all the rules and regulations stipulated by
the lessor and its authorized agent. The detail content is in Appendix two
"Client Handbook". The lessee shall strictly abide by the rules and
regulations and can not reject without reasonable causes if lessor notifies
lessee of all reasonable alteration it made on the rules and regulations
(adding or reducing clauses or revising). If inconsistency occurs between
the Client Handbook and this Agreement as well as other appendixes, the
concluded Agreement and appendixes shall prevail.
6.2 The lessee shall not or allow others to take any actions, which will
make the insurance of the Lease Rooms and the building invalid or possibly
invalid, or result in an increase of the insurance premium. Otherwise, the
lessee shall bear the corresponding increase of the insurance premium and
other related expenses
for repurchase of the insurance by the lessor due to lessee's violation of
this clause. The lessee shall pay the aforesaid fees according to the
period asked by lessor after the occurrence of lessee's violation.
6.3 The lessee shall not take the following activities
1. To use the Leased Rooms to conduct illegal activities.
2. To assign the rights of lessee under the agreement to others or
use it as security.
3. To lease part of or entire Leased Rooms to others or let others
use the Leased Rooms.
4. To use the Leased Rooms with a third party (not including
affiliated enterprises of the lessee which means the parent
company, subsidiary, branch company of the lessee or the company
which shares the common investment party and legal representative
with the lessee) or show other's name as the lessee of the Leased
Rooms.
5. To transfer the ownerships of the ornaments, equipments and
articles in the Leased Rooms to any third party or use them as
security.
6.4 The lessor shall take charge of the safety during the lease term and be
responsible for theft or damages of the articles in the Leased Rooms. In
case of fire, the lessee shall make compensation to lessor if the fire is
occurred due to lessee's reason.
Article 7. The Obligations of the Lessor
The lessor agrees to abide by the following provisions:
7.1 The lessor shall guaranty the public facilities (including
illumination, air-conditioner, automatic smoke sensor, shower, WC and
elevator, etc.) are in good status. The repairs shall be made in time after
receiving trouble report from the lessee.
7.2 Implementing twenty-four hours' security measures to ensure the
security of the mansion.
7.3 The lessor shall bear the corresponding losses suffered by the lessee
due to quality problems of the Leased Rooms. (excluding the matters
stipulated in article 9 of this Agreement and the losses incurred due to
the quality resulting from lessee's reconstruction)
Article 8. Damages and Breaching Liabilities
8.1 The lessee shall compensate the lessor for losses due to intentional
actions or negligence of lessee or its agent, employee. On the contrary,
the lessor shall compensate lessee for losses due to intentional actions or
negligence of lessor or its agent, employee.
8.2 If the lessee breaches the agreement as well as appendixes and
supplementary agreement and fails to make rectification measures within 7
days since receiving the lessor's written notice, the agreement is
automatically terminated within 14 days since the written notice is issued.
The lessee shall leave the house within 5 days since the issues of the
written notice after the agreement is automatically terminated; at the same
time, the lessor is entitled to claim for damages with the amount of three
months' renting fees and management fees; the lessee also agrees to bear
losses and expenses incurred. The lessor shall deduct the guaranty money
for the compensation if the amount of the guaranty money the lessee has
paid is the same as the damages. Otherwise, the lessee is obligated to make
up the margin. The measures prescribed here are not the solitary measures.
The lessor is entitled to take other measures in case of the breach.
Article 9. Exemption From Liabilities
The lessor is exempted from liabilities in the following cases:
1. The temporary cease for the utilization of the public
establishments for the necessary maintenance of the building or
not for the reason of the lessor.
2. The losses the lessee suffers is incurred in the event of
earthquake, typhoon and other events which belongs to Force
Majeure.
3. The lessee suffers the losses for the reason of other lessees or
the third parties (but the lessor is responsible to assist the
lessee for reimbursement from the infringers).
Article 10. Abandonment of the Rights
The abandonment of any right stipulated by the agreement shall be based on
the written signature of the lessor. The facts that the renting fee or
other items the lessee paid is insufficient to the amounts stipulated by
the agreement, or with the consent of the lessor, do not have any influence
on the right of the lessor to claim for the arrearage and the rights to
take other measures according to the agreement or laws and regulations.
Article 11. The Service of the Notice
All the notices required by the agreement shall be issued in written form.
The invoices, bill of documents and other notices issued by the lessor to
the lessee shall be marked with the lessee as addressee. The written notice
is regarded as having served if it is delivered to the leased house, sent
by the registered mail or delivered to the address of the lessee in
Beijing. The notice issued by the lessee to the lessor will be regarded as
having served if it is delivered to the following address and accepted with
signature: Beijing Gao Ling Real Estate Development Co. Ltd., No.168, Xi
Zhi Men Wai Avenue, Haidian District, Beijing, China
Article 12. Disputes
The agreement shall be governed and explained by the law of PRC. Any party
may file the action to the people's court in the jurisdiction if the lessor
and lessee cannot settle the disputes which arise from the agreement with
negotiation.
Article 13. Business License and Language
The lessee shall produce business license and the authorization letter for
the authorized representative to sign the agreement on behalf of the
lessee. The copy of the duplicate of the business license and the original
authorization letter will be enclosed of the agreement. As an important
part of the agreement, the appendix will be effected at the same time and
have the same legal effect with the agreement.
The agreement and its appendix shall be written in Chinese or English with
the same legal effect. The agreement has two original copies while the
lessor and lessee will hold one of them.
Article 14. Supplementary Agreement
The parties of the agreement can conclude supplementary agreement through
negotiation on other related matters. The supplementary agreement with the
same legal effect of the agreement will be annexed to the agreement as an
important part of the agreement.
The agreement is effective on the date of the subscription as well as the
guaranty The agreement is effective on the date of the subscription as well
as the guaranty is fully paid.
Appendix One: Surface area drawing of the Leased Rooms
Appendix Two: <Clients Handbook>
Appendix Three: Supplementary Agreement
(Signature Page)
LESSOR: BEIJING GAOLING ESTATE DEVELOPMENT CO. LTD
ADDRESS: NO.168, XI ZHI MEN WAI AVENUE, HAIDIAN DISTRICT, BEIJING, CHINA
POST CODE: 100044
LEGAL REPRESENTATIVE (SIGNATURE): _________________________
TEL: 8838.3388
ACCOUNTING BANK: ______________
DATE: 2005-2-25
LEASEE: BEIJING AIRINBOX INFORMATION TECHNOLOGIES CO. LTD.
ADDRESS: __________________________________
POST CODE: ________________________________
LEGAL REPRESENTATIVE (SIGNATURE): ________________________
TEL: _______________
ACCOUNTING BANK: ______________________
DATE: 2005-2-25
SUPPLEMENTARY AGREEMENT FOR <THE LEASE AGREEMENT>. NUM. TD 0154
LESSOR: BEIJING GAO LING ESTATE DEVELOPMENT CO. LTD.
LESSEE: BEIJING AIRINBOX INFORMATION TECHNOLOGIES CO. LTD.
The lessor and lessee reach the following supplementary agreement as
to < the Lease Agreement >. Num. TD 0154(hereafter simplified as <the
Agreement>):
1 Free Leasing Period: 66 days, in the following period.
(1) February 21, 2005 to April 7, 2005
(2) May 8, 2006 to May 27, 2006
During the free leasing period, the lessee shall only pay RMB 1.00
Yuan/day/Sq.M as the management fee and other related fees. If <the
Agreement >is terminated before the expiration, the free period after
the termination date will not come into effect any more and the lessor
shall not make compensation to the lessee. The lessee shall make up
for all the renting fee according to the stipulated rental of <the
Agreement> if <the Agreement> is terminated by the lessee before the
expiration of the renting term.
2 One clause is added to the article one as clause 1.11: The renting fee
and management fee should be calculated in USD and received in RMB.
The exchange rate between the USD and RMB is fixed at 1:8.3.
3 The lessor agrees to add roof-inhaled air-condition while the specific
construction method should be approved by the lessor. The expenses of
the reconstruction for the air-conditioning shall be borne by the
lessee. When the lessee removes the ceiling and air-condition at the
time of the termination of <the Agreement> and returns the Leased
Rooms, the lessee shall restore the ceiling and air-condition system
back to the original status while the expenses shall be borne by the
lessee.
4 The lessee shall produce blueprints in advance to the lessor and get
the consent from the lessor and the fire control department for
carrying out the construction if the lessee plans to make secondary
fitments and reconstructions to the Leased Rooms. The lessee should
not tie up the fire control channels and alter the fire control
sub-area of the Leased Rooms. The modification for the liquid,
ventilation and fire control system shall be carried out by the
construction company appointed by the lessor, while related expenses
shall be borne by the lessee.. The fitments and modification to the
common area of the building should be restored to the original status
at the time of its departure. All the expenses should be borne by the
lessee.
5 The lessor shall increase the electric power. The modification for
electric power in the rented area shall be organized by the lessor.
The lessee shall bear the related expenses which will be paid by the
lessor before the modification is carried out.
6 The lessee shall lease the room 05/06/07/08 on the 7th floor from July
2005. Both parties confirm the following information that the total
leased area is 458 square meters, the lease term is not shorter than
one year, the rental and property management fee is USD 17.00/per
square meters/per day, free leasing period is 30 days. The lease
agreement will be concluded later. The lessee shall pay the lessor a
deposit amounting at USD 23,358.00 YUAN (RMB 193,871.40 YUAN, in
words: ONE HUNDRED NINETY THREE
THOUSAND EIGHT HUNDRED AND SEVENTY ONE YUAN FORTY JIAO), which is
three months' rental and property management fee of the aforesaid
leased area within 5 working days from the execution of <the
Agreement>. The lessor is entitled to detain the aforesaid deposit for
losses suffered from reserving the purposed rooms for lessee, if
lessee fails to lease the rooms before July 31st 2005. The lessee is
entitled to claim double amount of the deposit from the lessor if the
lessor fails to reserve the rooms for lessee, which results in the
impossibility of lessee in leasing the rooms before July 31st 2005.
The aforesaid deposit can be transferred into deposit of the rooms in
case of lessee succeeds in leasing the rooms before July 31st 2005.
This clause shall be null and invalid in case that the lessee fails to
pay lessor the deposit within 5 working days from the execution of
<the Agreement>.
7 The lessee shall pay RMB 615,196.00 Yuan, as the "Deposit three and
Pay one" Clause in <the Agreement>, which shall be paid to lessor, by
the end of February 21st 2005. (in words: RMB SIX HUNDRED FIFTEEN
THOUSAND ONE HUNDRED AND NINETY SIX YUAN)
8 The supplementary agreement is the supplements and alteration for <the
Agreement> and has the same legal effect with <the Agreement>. This
agreement will prevail as to any conflict between the supplementary
agreement and <the Agreement>. Others will be executed by <the
Agreement>.
9 The agreement has two original copies while the lessor and lessee will
hold one of them. The agreement is effective on the date of the
subscription.
LESSOR: BEIJING GAOLING ESTATE DEVELOPMENT CO. LTD.
LEGAL REPRESENTATIVE OR CONSIGNER (SIGNATURE): ______________________
DATE: FEBRUARY 25, 2005
LEASEE: ___________________________________________
LEGAL REPRESENTATIVE OR CONSIGNER (SIGNATURE): ______________________
DATE: FEBRUARY 25, 2005