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SHANGHAI PREMISES LEASE CONTRACTFORMULATED BYSHANGHAI MUNICIPAL HOUSING, LAND AND RESOURCES ADMINISTRATIONSHANGHAI ADMINISTRATION FOR INDUSTRY AND COMMERCEPRINTED IN NOVEMBER, 2000SPECIAL NOTESI.This Contract applies to the pre-lease of commercial housing situated within the administrative jurisdiction of Shanghai, as well as the lease of premises whose rent is determined by the related parties through negotiations according to reasonable market principles, exclusive of the lease of any publicly-owned residence premises at the rent ratio specified by Shanghai Municipal Government, of the public non-residence premises administratively allocated and invested by Shanghai Municipal Government, and of the private premises leased at the rent ratio specified by Shanghai Municipal Government prior to the implementation of the Regulations of Shanghai Municipal government on Premises Lease(hereinafter “the Regulations”).II. The pre-lease hereunder is only restricted to such commercial housings as built by related real estate developers who has obtained the pre-sale permit, except for any commercial housing which has been pre-sold by related real estate developers; and no pre-lease may be made by any pre-buyer of commercial housing. III. Both the terms 【For Lease】 and 【For Pre-Lease】mentioned herein are for indicative purposes, denoting that related provisions or clauses marked with such terms apply to lease or pre-lease, as indicated respectively. When this Contract is used as a premises lease agreement, only those provisions marked with the word 【Lease】 will be included and adopted as integral part of such lease agreement; likewise, when used as a commercial housing pre-lease contract, only those provisions marked with the【Pre-lease】,as well as the provisions entitled “Pre-lease Related Issues” as set out in the Supplemental Provisions, and other provisions not marked 【】 may be included as the general terms and conditions, regardless of pre-lease or lease. IV.In case this Contract is to be used for intended pre-lease of commercial housing, both parties to such pre-lease shall, upon the completion of the commercial housing, enter into the handover letter of commercial housing after related property developer has followed the required initial registration of real estate and acquired the real estate ownership certificate, for that purposes, that contract shall become the premises lease contract, and the original terms and conditions contained therein shall have been fully fulfilled. V.This Contract is the tentative template prepared by Shanghai Administration of Property and Land Recourses in collaborations with Shanghai Municipal Bureau for Industry and Commerce, in accordance with the Regulations of Shanghai Municipal Government on Premises Lease, all terms and conditions contained herein are only for indicative purposes to be mutually agreed between the Parties hereto. Any issues not covered or defined herein may be resolved by entering into supplementary provisions by Party A and Party B through amicable negotiations.VI.Prior to execution of this Contract, the lessor is required to present to the prospective lessee its real estate ownership and land use right certificate or other related ownership certificate, and appropriate property developer shall show the pre-lessee the pre-sales permit as duly obtained. Each party to an intended lease or prelease shall verify the identity certificate of others and deliver to others its own identity certificate. Where the intended lessee is an itinerant person from outside Shanghai, the lessor is also required to present the Permit of Premises Leasing security issued by related police authority. VII.Related parties concerned shall, within fifteen (15) days upon execution of this Contract, follow related formalities of contract registration. Specifically, in the event of premises lease, register, and apply for the certificate of contract registration with the local appropriate real estate exchange center or farm system duly established at the place where such leased premises are located; in the event of pre-lease of commercial housings, the pre-lease of foreign-oriented commercial housings shall be registered with Shanghai Municipal Real Estate Exchange Center; the pre-lease of local-oriented commercial housing shall be registered with the real estate exchange center duly established at the place where such pre-leased premises is located. The property ownership certificate will be granted if the commercial housings under pre-lease mechanism are completed, and the related parties shall register, and apply for the certificate of contract registration with the local appropriate real estate exchange center or farm system duly established at the place where such leased premises are located, upon the execution of handover letter of commercial housings under pre-lease mechanism. Once duly registering with the above authority, the lessee has the right to claim against the third party in relation to any purported repeated pre-leases, transfer or discretional disposal of mortgaged premises during lease period, etc. VIII.In the event one party requires to register while the other refuses to render necessary coordination, former may go through related formalities for registration by presenting this lease contract, valid identification certificate, as well as other supporting instruments. IX. The security deposit serves as the safeguard to ensure the due performance of the lease contract. During the course of premises lease, the lessor and the lessee may stipulate the security deposit in the lease contract, and the specific amount shall be determined by both parties. Upon termination of the lease, the security deposit, after deducting the relevant costs and expenses payable by lessor as specified in the contract, shall be refunded to the Lessee. X. This Contract is available from the Shanghai real estate exchange center or farm system filing office or its divisions in its district or, county where the related premises are located. Both parties are advised to read thoroughly each provision contained herein and make a sound understanding thereof.XIThis Contract serves only as a Model Text for reference by related parties. XIIWhere the leasehold hereunder is established under the help of agency or brokerage, related parties to a lease shall require such brokerage or broker to sign on the last signature page hereof. SHANGHAIPREMISES PRE-LEASECONTRACT (Contract No.: )BETWEEN: Lessor (hereinafter “Party A”):【For Lease】Lessee (hereinafter “Party B”)Pre-lessor (hereinafter “Party A”):【For Pre-Lease】Pre-lessee (hereinafter “Party B”):THIS CONTRACT is made and entered into by and between Party A and Party B, through mutual friendly negotiation based on the principles of equality, voluntariness, fairness, as well as good faith, in respect of issues concerning the lease by Party A to Party B of the (Premises/Commercial Housing )which Party A is entitled to (lease/pre-lease), in accordance with the Contract Law of the Peoples Republic of China and the Regulation of Shanghai Municipal Government on Premises Lease (hereinafter “the Regulations”), subject to the terms and conditions as hereof: I.Profile of Leased/Pre-leased Premises 1-1The Premises ( For Lease/Pre-lease) by Party A to Party B hereunder is situated at room , floor, (No. /building) (Lane/New Village) Road (district/county), Shanghai (hereinafter “the Premises”). The measured building area of such Premises _ (For Lease/Pre-lease) is square meters, and the Premises are allowed for , with a type of and structure of . The plan or layout of such Premises is as provided in Appendix A attached hereto. It is acknowledged that Party A has presented to Party B: (i)【For Lease】The real estate ownership and land-use right certificate/house ownership certificate_, numbered as (ii)【For Pre-Lease】Pre-sale permit, numbered as (Refer to Article 2.1 and Article 2.2 of the Supplemental Provisions for details)1-2 The leasehold is established between Party A, as (Real Estate Owner/Administrator/Other Right Holders under the Applicable Laws), and Party B hereunder. Party A has informed Party B that the Premises (have/have not) been mortgaged, prior to the execution of this lease contract. 1-3Space, Conditions and Requirements for Use of Public or Shared Areas of this Premises: The existing Decoration, ancillary facilities, conditions of equipment, as well as the information and standards of, the ancillary facilities decorated and added by Party B, upon consent of Party A, shall be determined as per Appendix B, attached hereto, respectively. Both Parties agree that these two Appendices as mentioned above shall be the standards or basis for acceptance of the Premises when it is returned by Party B to Party A upon termination hereof and when it is by Party A to Party B as of the effective date hereof. (Refer to Article 2.3 of the Supplemental Provisions for details)II.Purposes of Lease 2-1Party B undertakes with Party A that the Premises are leased hereunder to be used as , and will comply with any and all related applicable provisions concerning the premises use and property management of the State and Shanghai. 2-2 Party B warrants to Party A that during the lease term hereof no change will be made to the purposes mentioned in Article 2-1 above in the absence of prior written consent of Party A and approval from related competent authorities after due process of examination in accordance with related provisions. III.Handover Date and Lease Term 3-1Both Parties hereto agree that Party A will hand over Party B the said Premises by yyyy/mm/dd.【For Lease】The lease term hereof shall commence from and end on 【 For Pre-Lease】The lease term shall commence from the date when the Pre-leased Commercial Housing Handover Letter is signed and end on the date of _. (Refer to Article 3 of the Supplemental Provisions for details)3-2Upon expiry of the agreed to lease term, Party A shall have the right to recover the Premises leased hereunder, and Party B is required to return the same as scheduled. Party B shall deliver a written notice to Party A requesting renewal of this Contract six (6) months prior to the expiry date, which renewal hereof shall be subject to express consent of Party A. IV. Rent, Terms of Payment and Period4-1 It is agreed by both Parties hereto that the agreed-upon rent for each square meter of building area/per day is Yuan (Currency). 【For Lease】The monthly rent in total is_Yuan (Currency) (In words: THOUSAND _ HUNDRED _ YUAN ONLY). 【For Pre-Lease】The monthly rent shall expressly stipulated by both Parties in the Handover Letter of Commercial Housing as per the actually measured building area space. (Refer to Article 4.1 of the Supplemental Provisions for details)The aforesaid rate of rent remains unchanged for a period of (Year/Month), which may be subject to adjustment from time to time by both parties hereto from (year/Month) through mutual friendly negotiation, matters concerning such adjustment to be contracted between both parties in the Supplemental Provisions hereto. 4.2 The said rent shall be payable by Party B to Party A prior to the day of each month. Party B is obliged to pay a penalty to Party A at the rate of % of unpaid rent for each delayed day. (Refer to Article 4.1 and Article 14.2 of the Supplemental Provisions for details)4-3 The rent shall be paid by Party B according to the following payment schedules: (Refer to Article 4.1 of the Supplemental Provisions for details)V.Cash Deposit and Other Fees5-1 Both Parties hereto acknowledge that upon handover by Party A to Party B of the Premises, Party B shall pay to Party A security deposit in the sum of rent for months, i.e. Yuan (RMB). Upon receiving the said security deposit, Party A shall issue to Party B a receipt thereof. Upon termination or expiration of this Contract, the security deposit, as paid by Party B hereunder, after deducting related fees which are to be paid by Party B as stipulated herein, shall be refunded to Party B without interest (if any amount remaining). (Refer to Article 5 of the Supplemental Provisions for details)5-2 Any and all fees and expenses incurred during the lease term, in respect of the water, electricity, gas, communications, equipment, property management, and other related fees or expenses shall be borne by (Party A/Party B). All other fees and expenses shall be borne by (Party A/Party B). (Refer to Article 4.2 and Article 4.3 of the Supplemental Provisions for details)5-3 The means for calculating or apportioning the aforesaid fees and expenses to be paid by (Party A/Party B ), the terms as well as time of payment thereof shall be as follows: (Refer to Article 4.2 and Article 4.3 of the Supplemental Provisions for details)VI.Requirements for Use of Premises and Maintenance Liabilities6-1 During the lease term hereof, Party B shall promptly inform Party A to repair or make good any damage or failure occurred to the Premises or its ancillary facilities whenever such damage or failure comes to his attention; Party A shall, within fifteen (15) days upon receipt of such notice from Party B, make appropriate correction or repair, otherwise, Party B may make such necessary repair at the cost of Party A.6-2 During the lease term, Party B shall reasonably use and take proper care of the Premises and its ancillary facilities. Party B shall be held liable for making proper repair or correction of any damage or failure to the Premises or its ancillary facilities as result of misuse or unreasonable use by Party B. In case Party B refuses to make proper repair upon request from Party A, Party A may make such repair at the cost of Party B. 6-3 Party A warrants that the Premises and its ancillary facilities are in good condition and safe manner, suitable for use, during the lease term. Party A shall notify Party B of any planned inspection and/or maintenance on the Premises three (3) days in advance, in this case, Party B shall provide reasonable and necessary cooperation for that purpose, provided, however Party A is required to minimize to the possible extent the impact on the use by Party B of this Premises, caused by such inspection and/or maintenance. (Refer to Article 7 of the Supplemental Provisions for details)6-4 Except for Appendix hereto, any intended Decoration or addition of ancillary facilities and equipments by Party B shall be subject to prior written consents of Party A and required approvals, for which (Party A /Party B entrusted by Party A )shall apply, from appropriate competent authorities in accordance with applicable provisions, if such approval is required by applicable laws as necessary for such intended Decoration and addition of ancillary facilities and equipments. The ownership of such Decoration and addition of ancillary facilities and equipments, made by Party B, as well as maintenance responsibilities therefore shall be agreed by both Party A and Party B separately in writing. (Refer to Article 6 and Article 7 of the Supplemental Provisions for details)VII.Conditions of Premises at the Time of Return7-1 Unless Party A consents Party B to renew this Contract, Party B shall return the Premises within _ day(s) upon expiration of the lease term. If Party B delays to return the Premises without consent of Party A, for each delayed day, Party B shall pay to Party A an occupational fee at (_ currency) _ /m2 (equal to two times of the daily rent) during the period when the Premises are occupied by Party B. (Refer to Article 8 of the Supplemental Provisions for details)7-2 The Premises returned by Party B shall be in the condition or state left after a period of normal use. The intended return of the Premises shall be subject to due inspection and acceptance of Party A, in the event of acceptance by Party A of intended return, each party shall pay up any and all amounts that should be charged to his account. VIII.Sublease, Assignment and Exchange 8-1 Except as Party A has consented Party B to sublease the Premises as provided for in the Supplemental Provisions hereto, Party B, during the entire lease term hereof, may not sublease the Premises in whole or in part to any third party without a prior written consent of Party A, provided, however, Party B shall not sublease the internally-divided Premises to more than one sublessees. (Refer to Article 9 of the Supplemental Provisions for details)8-2 For any intended sublease of the Premises, a sublease contract shall be concluded between Party B and related sub-lessee in writing, and the sublease contract is required to be registered with the Real Estate Exchange Center or Farm System Filing Office established at the place where such Premises are located. (Refer to Article 9 of the Supplemental Provisions for details)8-3 During the lease term hereof, any assignment intended by Party B of the leasehold of the Premises to any third party, or any exchange of the Premises hereunder with any third party shall be subject to a prior written consent of Party A. Upon completion of such assignment or exchange, the assignee or the person with whom Party B exchanges premises shall enter into a novation agreement with Party A, and to perform the terms and conditions contained herein. (Refer to Article 9 of the Supplemental Provisions for details)8-4 If Party A intends to sell the Premises during the lease term, it shall send a three-month notice to Party B. Party B shall have the right of first refusal to purchase the Premises under equal terms and conditions. (Refer to Article 11.8 of the Supplemental Provisions for details)IX.Conditions for Termination of this Contract 9-1 Party A and Party B agree that during the lease term hereof, this contract shall be terminated under any of the following circumstances without any liabilities imposed on either party hereto: (i)The right to use the land which is totally or partly occupied by the Premises is revoked in accordance with applicable laws; (ii)The Premises are confiscated in accordance with applicable laws for social public interest; (iii) The Premises are to be dismantled and relocated according to law for the needs of urban construction;(iv) The Premises are damaged, destroyed or assessed as dangerous properties; (v) Party B was informed of any and all mortgage over the Premises prior to such lease, which is exercised now by the concerned parties;(vi) (Refer to Article 13 of the Supplemental Provisions for details)9-2 It is agreed that under any of the following circumstances either party may notify the other in writing to terminate this Contract. Either party in breach of this contract shall pay appropriate penalty in the sum of times of one monthly rent; In case such penalty is insufficient to cover the loss incurred by the other party as a result of such breach, the default party shall pay the difference. (i) Party A fails to hand over the Premises as scheduled and the failure continues for a period of days upon the request of Party B; (ii)The Premises handed over by Party A is inconsistent with stipulations contained herein, thus frustrating the lease purposes; or the Premises handed over by Party A is defective, threatening the safety of Party B; (iii)Party B changes the purposes of the Premises without prior written consent from Part A, thus causing any damage to the Premises; (iv)The main body of the Premises is damag
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