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Shanghai Housing Lease ContractBetween Party Aand Party BSpecial NoticeI. This Contract is applicable to the lease of house for which Shanghai Liyuan Real Estate Consulting Co., Ltd. provides intermediation and agency services; Shanghai Liyuan Real Estate Consulting Co., Ltd., as a third party, only assumes the obligation to assist Party A and Party B in concluding the lease contract; and the liability of mediation and proof after disputes arise between Party A and Party B.II. The text of this Contract is a sample formulated by Shanghai Liyuan Real Estate Consulting Co., Ltd. according to Shanghai Housing Lease Contract (Commercial Housing Pre-lease Contract) 2000 of Shanghai Housing, Land and Resources Administration and Shanghai Administration of Industry and Commerce (deleting the content concerning the pre-lease of commercial houses). The clauses of this Contract are all suggestive clauses which may be adopted by the two parties to the lease contract upon agreement. The matters not mentioned in this Contract may be specified by concluding supplementary clauses through negotiation of Party A and Party B.III. Prior to the signing of this Contract, the lessor shall furnish the Certificate of Ownership of House and Land or other certificate of property to the lessee, and both parties shall present their relevant ID certificates to the other party for verification. If the house is leased to migrants, the lessor shall show House Lease Security License issued by the public security department as well.IV. Party A and Party B shall go through contract registration within 15 days after signing this Contract according to the relevant regulations. In the event of house lease, registration shall be handled with the real estate trading center or the farm system acceptance division in the place where the house is located to obtain the certificate of registration of lease contract for record; after the registration of the lease contract, a third party can be defended against in case of repeated pre-lease, lease, transfer of the house during the lease term or disposal of after mortgage and etc.V. Where one party requests registration, while the other party refuses to cooperate, the party requesting registration may go through registration with the relevant documents such as this Contract and valid ID certificates.VI. House lease deposit is a measure ensuring the performance of the contract. When the house is leased, the lessor and the lessee may agree a house lease deposit to be collected in the contract. The amount of the lease deposit may be agreed by the two parties to the lease contract. When the leasehold relationship terminates, except for the sum deducted for payment of the expenses payable by the lessee as agreed in the contract, the remainder of the deposit shall be returned to the lessee in time (without interest).VII. Taxes such as stamp tax and individual income tax and etc. as well as other costs of this Contract will be paid by Party A and Party B respectively.VIII. The text of this Contract has been registered with Shanghai Administration of Industry and Commerce, Party A and Party B may choose the text of Shanghai Housing Lease Contract (Commercial Housing Pre-lease Contract) 2005 printed by Shanghai Housing, Land and Resources Administration and Shanghai Administration of Industry and Commerce or the Shanghai Housing Lease Contract provided and selected by Shanghai Liyuan Real Estate Consulting Co., Ltd. at their discretion according to the situation. Shanghai Housing Lease Contract(Contract No.: 2008066)Both parties to this Contract:The Lessor (Party A): The Lessee (Party B): For the leasing of the legally rentable premises by Party B from Party A, in accordance with the Contract Law of the Peoples Republic of China and Shanghai Housing Lease Regulations (hereinafter referred to as the Regulations), Party A and Party B, through negotiation and on the basis of equality, willingness, fairness, honest and good faith, conclude this Contract.(I) Condition of the Leased Premises1-1 The premises (named Huaihai Zhonghua Tower), which Party A leases to Party B, is located at Room 1906, 885 Renmin Road, Huangpu District (hereinafter referred to as “Premises”) and covers an actual floor space of 100.07 square meters. Party A has shown to Party B the Certificate of Ownership of the House and the Land Use Right Certificate hu fang di huang zi (2004) No. 002473 .1-2 Party A concludes this lease contract with party B as the owner of the house Before conclusion of this contract, Party A has informed Party B that the Premises is free of any mortgages, and has obtained the written confirmation from other co-owners to sign this Contract.1-3 In Annex I to this Contract, Party A and Party B have listed the Premises current decorations, facilities, equipment, as well as the attached facilities which Party A agrees Party B to decorate and add together with the facilities standard, and any other matters needs to be agreed. Both Party A and Party B agree to take this Annex as the basis for acceptance at the time of delivery of the Premises by Party A to Party B and redelivery of the Premises by Party B to Party A upon termination of this Contract. (II) Purpose of the lease2-1 Party B undertakes to Party A that the Premises will be used as an office according to the relevant regulations of the State and Shanghai on house using and property management.2-2 Party B warrants that during the lease period, it will not change the purpose of the Premises as agreed above unless it is agreed by Party A in writing and is approved by the relevant authorities (if necessary according to law).(III) Delivery Date and Leasing Period3-1 Both Party A and Party B agree that Party A shall deliver the Premises to Party B within three days upon the conclusion of this Contract and Party As receipt of the lease deposit, and a Confirmation on Delivery of House and Land shall be signed. The leasing period of the Premises shall be from 15 October 2008 till 14 October 2010.3-2 Rental free period for Decoration: from the delivery of the Premises by Party A to 14 October 2008.3-3 Upon expiry of the leasing period, Party A is entitled to take back the Premises, and Party B should return the Premises in due time. If Party B intends to renew the leasehold, it should notify Party A in writing two months before the expiry of this Contract. A new lease contract shall be executed upon Party As consent. Party B shall enjoy the priority to lease the Premises under the same conditions. (IV) Rental, Payment and Time Limit4-1 Both Party A and Party B agree that the monthly rental of the Premises shall be RMB12, 000.00(or USD of equivalent value ) (In words: RMB Twelve Thousand Only), exclusive of property management fee. The rental for the Premises shall remain unchanged for two years. From the third year, both parties may adjust the rental through negotiation. The matters on adjustment may be agreed by Party A and Party B in supplementary clauses.4-2 Party B should pay Party A the next installment rental before the 10th day every payment month. Party A shall issue a receipt to Party B after it receives the rental. In case of overdue payment, Party B shall pay an overdue fine at the rate of 2% of the daily rental per day.4-3 The first installment of payment is RMB36, 000.00 (or USD of equivalent value ) (including two months lease deposit and a months rental), which shall be made in single installment in USD as per the Official Exchange Rate of the payment date upon conclusion of this contract. 4-4 The rental and the lease deposit shall be paid in USD as per the Official Exchange Rate of the payment date by telegraphic transfer or bank account transfer to Party As following bank account:Bank: Industrial and Commercial Bank of China, Shanghai Municipal BranchBeneficiary name: Jiang JieAccount No.: 622208 1001 001867724Swift: ICBKCNBJSHI(V) Deposit and Other Expenses5-1 Both Party A and Party B agree that when Party A delivers the Premises, Party B should pay two-month rental, namely RMB24, 000.00(or USD of equivalent value ) to Party A as a lease deposit. Party A shall issue a receipt to Party B after it receives the deposit.Upon termination of the leasehold, the deposit collected by Party A, except for the sum deducted for payment of the expenses payable by Party B as agreed in this Contract, shall be returned to Party B free of interest within 3 days upon settlement of all the costs incurred for the Premises by Party B. 5-2 During the leasing period, Party B should bear the fees of water, electricity, gas, communications, facilities, property management and so on incurred during its use of the Premises.5-3 Party B shall be responsible for the payment of the above expenses. The above expenses shall be paid to the relevant units on time. VI. Requirement for use and repair responsibility6-1 Before entry of Party B and during the lease term, if damages or failures are found by Party B in the Premises and its attached facility, Party B shall promptly notify Party A for repair; Party A shall repair it within 5 days after its receipt of the notice from Party B. If Party A fails to repair it within the time limit, Party B may repair it on Party As behalf and the expenses should be born by Party A, which Party B is entitled to deduct from the next installment of the rental.6-2 During the lease term, Party B shall reasonably use the Premises and its attached facility and take good care of the same. Otherwise, Party B shall assume the liability for repairing the damages or failures of the Premises and its attached facility caused by improper or unreasonable use of Party B. If Party B refuses to repair, Party A may repair it on Party Bs behalf and the relevant expenses should be born by Party B.6-3 During the lease term, Party A shall ensure that the Premises and its attached facility are all in normal, usable and safe condition. If Party A plans to examine or maintain the Premises, Party A shall give a notice to Party B 5 days in advance. And Party B shall render cooperate during examination and maintenance. Party A shall minimize the influence on Party Bs use of the Premises.6.4 Except as provided in Attachment 1 hereto, if Party B would decorate or install additional attached facilities or equipments for the Premises, written consent of Party A must be obtained in advance; in case of examination and approval of relevant government agencies needed pursuant to Regulations, the said work can proceed only after Party A report to and get approval from the relevant government agencies. The additional attached facilities or equipments installed by Party B shall be owned by Party B and shall be repaired by Party B himself.VII. Condition of the Premises returned7-1 Unless Party A agrees to extend the leasehold with Party B, Party B shall return the Premises examined qualified by Party A for acceptance on the day of expiry of the lease term. In case of delay in return of the Premises without Party As consent, Party B shall pay double daily rental to Party A for occupancy expenses.7-2 The Premises returned by Party B shall be in a condition after normal use. The Premises when returned shall be examined by Party A for acceptance, and both parties shall settle up the costs that they should bear respectively.VIII. Sublease, transfer or exchange 8-1 Unless Party A agrees on Party Bs sublease in the supplementary clause of this Contract, during the lease term, Party B shall be subject to Party As prior written consent to sublease part or all the Premises with others. As to the same living Premises, however, Party B shall not sublease part the Premises or sublease simultaneously to two or more than two lessees.8-2 During the lease term, if Party A plans to sell the Premises, then it shall send a notice to Party B three months in advance. Party B shall have the preemption under the same conditions. If Party B waives the preemption, Party A shall assure that the transferee would keep performance of this Lease Contract. IX. Conditions to terminate this Contract9-1 Both Party A and Party B agree that in case of one of the following conditions during the lease term, this Contract shall be terminated, while either party shall be free from responsibilities:1) The Premises is legally confiscated for social and public interests or city construction;2) The Premises is damaged, lost, or authenticated as dangerous premises;9-2 Both Party A and Party B agree that either party can terminate this contract by giving a written notice to the other party in case of one of the following conditions; the party who breaches this contract shall pay to the other party as much as double monthly rental for penalty, and shall also compensate the balance between the losses so incurred and the penalty in case the penalty so paid is not sufficient to offset the losses to the other party:1) Party A fails to deliver the Premises on time, and within 10 days since it has been urged by Party B, Party A still fails to deliver it;2) The Premises delivered by Party A fails to accord with the terms of this Contract, consequently leading to a failure to realize the purpose of lease; or there exists faults in the Premises delivered by Party A which endangers Party Bs safety;3) Party B changes the purpose of the Premises without Party As written permit, and consequently leading to serious damage to the Premises;4) Due to Party B, the main structure of the Premises is damaged;5) Party B, without authorization, subleases the Premises, transfers the lease of the Premises or exchanges with others the Premises;6) Party B delays payment of rental without justifiable reasons for more than 15 days as accumulated, or deliberately not pay the relevant expenses during the lease term adding up to amount in excess of the deposit amounts;7) Party B conducts activities against the laws and regulations of the state in the Premises and is consequently penalized.X. Responsibilities for Breach of Contract10-1 During the lease term, in case of damages to the Premises due to Party As failure to perform its obligations of repair and maintenance as agreed in this contract, consequently leading to property losses or personal injury of Party B, Party A shall bear the responsibility for compensation.10-2 In case that Party B decorates the Premises or adds some facilities into it without Party As written permit or beyond Party As written permit and requirement, Party A shall have the right to demand Party B to resume the Premises to its original condition (resume the Premises to its original condition/claim for compensation).10-3 During the lease term, in case that Party B unilaterally terminates this Contract without Party As written permit, Party A can confiscate Party Bs deposit, and in case the deposit cannot offset Party As losses, Party B shall also be liable for compensation.10-4 During the lease term, in case that Party A unilaterally terminates this Contract without Party Bs written permit and takes back the Premises, Party A shall pay double monthly rental to Party A as a penalty. In case of insufficient penalty as to offset Party Bs losses, Party A shall also be liable for compensation.10-5 Within the lease term, if Party A plans to sell the Premises while the transferee refuses to keep performance of this Contract, Party A shall pay double monthly rental to Party B as a penalty, and in case of insufficient penalty to offset the losses to Party B, Party A shall also be liable for compensation. XI. Miscellaneous11-1 During the lease term, in case that Party A needs to mortgage this Premise, a written notice shall be given to Party B, and Party A shall make commitment to party B that after mortgage and sale of this Premise, when 20 days before the Parties concerned to negotiate to dispose of this Premise in way of converting into money or sell-off, it will inquire Party B of its purchasing ideas in writing. 11-2 As to the matters not provided in this Contract, supplementary agreements may be concluded after negotiation by Party A and Party B. Both supplementary agreements and annexes to this Contract are the integral parts of this Contract, and the texts filled in the blanks on this Contract together with its supplementary agreements and annexes have the same effectiveness as that of the printed texts.11-3 When signing this Contract, both Party A and Party B definitely understand their respective rights and obligations, and they agree to implement strictly according to this Contract. In case either party breaches this Contract, the other party is entitled to claim for compensation according to terms of this Contract.11-4 In case of any disputes arising from performance of this Contract by Party A and Party B, both parties should settle the disputes through negotiation; in case of failure to settle through negotiation, both parties shall lodge a lawsuit before the court of jurisdiction at the place where the Premises locate.11-5 This Contract, together with its annexes, shall be in tripartite with Party A and Party B respectively holding one, and the intermediate company, Shanghai Liyuan Real Estate & Consulting Co., Ltd., holding one, all having t
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