Document:

ex10_15.htm

EXHIBIT 10.15

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (hereinafter "this Agreement") is made effective as of July 31, 2009 (the “Contract Date”), between Mediware Information Systems, Inc., (hereinafter "the Company") and Alan Wittmer (hereinafter the “Executive").  The Executive’s employment with the Company shall begin on September
1, 2009 (the “Effective Date”).

WHEREAS, the Company and the Executive desire that the Executive become the Company’s Senior Vice President of Corporate Development.

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements herein set forth, the Company and the Executive hereby agree as follows:

1. Employment. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to serve as the Company’s Senior Vice President of Corporate Development, or in such other capacity as the parties may mutually agree. The Executive agrees to perform such
services customary to such office as shall from time to time be assigned to him by the Chief Executive Officer or his designee.  The Executive further agrees to use his best efforts to promote the interests of the Company and to devote his full energies to the business and affairs of the Company.

2. Term of Employment. The employment hereunder shall be for a term of thirty-six months commencing on the Effective Date hereof and ending thirty-six months after the Effective Date hereof (the "'Expiration Date"), unless terminated earlier pursuant to Paragraph 4 of this
Agreement (the "Term of Employment"). This Agreement shall automatically renew for successive terms of one (1) year (each a "Renewal Term") commencing on the first day immediately following the Expiration Date, unless such renewal is objected to by either the Company or the Executive by giving at least 90 days prior written notice prior to the scheduled Expiration Date. In the event of such renewal, the last day of each successive Renewal Term shall be deemed the Expiration Date.

3. Compensation and Other Related Matters.

(a) Salary. As compensation for services rendered hereunder, the Executive shall receive an Annual Base Salary of two hundred thousand dollars ($200,000), which salary shall be paid in accordance with the Company's then prevailing payroll practices for its executives
and shall be subject to review annually by the Chief Executive Officer of the Board of Directors.

  

  

  

(b) Bonus.  For the period from the Effective Date through June 30, 2010, the Executive shall be eligible to receive an annual cash bonus of up to [$100,000*(N/366)] where N equals the number of days from the Effective Date through June 30, 2010 (the “First Annual Bonus”).  Fifty
(50%) of the First Annual Bonus shall be paid to the Executive after the Company completes its annual audit.  Up to the remaining fifty percent (50%) of the First Annual Bonus shall be payable to the Executive in the same payroll period if the Executive achieves objectives established by the Company, subject to the discretion of the Chief Executive Officer and Board of Directors.  For each fiscal year, thereafter, the Executive shall be eligible to receive an Annual Bonus of up to 50% of Executive’s
Annual Base Salary for achieving objectives established by the Company, subject to the discretion of the Chief Executive Officer and the Board of Directors.  The bonus, if any, would be payable after the conclusion of the annual audit. Executive shall only earn the bonus if he is an active employee as of the date the bonus is to be paid.

(c) Signing Bonus.  As compensation for joining Mediware, the Company shall pay to Executive $10,000 if Executive is employed by Mediware thirty days after the Effective Date.  The Company will make the payment during the first pay period after such date.

 

(d) Stock Options. Subject to the approval of the Company's Board of Directors, the Executive shall be granted 30,000 non-qualified options (the "Options") to purchase shares of the Company's Common Stock,
par value $.10 per share (the "Stock"), under a Company stock option plan. The Options shall be subject to the terms of the applicable Company stock option plan and the Executive's Stock Option Agreement (the "Option Agreement"), attached hereto as Exhibit "A". In addition to the terms set forth in the Option Agreement (provided that this Agreement shall govern the Options in the event of any conflict between this Agreement and the Option Agreement), the Company and the Executive agree as follows:

 

	
  
	
(i)
	
Vesting. Subject to continued employment of the Executive, the Options shall vest and become exercisable as follows: Seven thousand five hundred (7,500) Options shall become exercisable on each of the first, second, third and fourth anniversary of the Effective Date.

 

	
  
	
(ii)
	
Exercise. Subject to the terms of the Option Agreement and Plan, the Options shall be exercisable at a price equal to Fair Market Value (as defined in the Plan) on the Effective Date of this Agreement. The Options shall be exercisable (after vesting) for five years from the Effective Date.

 

(d) Performance Options.  Subject to the approval of the Company's Board of Directors, the Executive shall be granted 25,000 non-qualified performance options (the "Performance Options") to purchase shares
of the Company's Common Stock, par value $.10 per share (the "Stock"), under a Company stock option plan. The Options shall be subject to the terms of the applicable Company stock option plan and the Executive's Stock Option Agreement (the "Option Agreement 2"), attached hereto as Exhibit "B". In addition to the terms set forth in the Option Agreement 2 (provided that this Agreement shall govern the Options in the event of any conflict between this Agreement and the Option Agreement), the Company and the Executive
agree as follows:

  

  

  

 

	
  
	
(i)
	
Vesting.  Subject to the continued employment of the Executive, the Performance Options shall vest and become exercisable as follows:

	
  
	
a.
	
Up to 8,333 options (or a pro rata portion thereof) shall vest on the first anniversary of the Effective Date if, but only if, the Executive achieves performance objectives as established by the Chief Executive Officer and the Board of Directors;

	
  
	
b.
	
Up to 8,333 options (or a pro rata portion thereof) shall vest on the second anniversary of  Effective Date if, but only if, the Executive achieves performance objectives as established by the Chief Executive Officer and the Board of Directors; and

	
  
	
c.
	
Up to 8,334 options (or a pro rata portion thereof) shall vest on the third anniversary of the Effective Date if, but only if, the Executive achieves performance objectives as established by the Chief Executive Officer and the Board of Directors.

	
  
	
(ii)
	
Exercise. Subject to the terms of the Option Agreement and Plan, the Performance Options shall be exercisable at a price equal to Fair Market Value (as defined in the Plan) on the Effective Date of this Agreement. The Performance Options shall be exercisable (after vesting) for five years from the Effective Date.

	
  
	
(iii)
	
Forfeiture.  The Performance Options that are to vest pursuant to the terms of this Paragraph 3 shall vest upon approval by the Chief Executive and the Board of Directors of the performance objectives.  All Performance Options that do not vest as provided in subsections (i) a., (i) b. and (i) c above shall be forfeit.

(e) Other Benefits. The fringe benefits, perquisites and other benefits of employment, including four (4) weeks vacation each year, to be provided to the Executive shall be equivalent to such benefits and perquisites as are provided to other employees of the Company as amended
from time to time.

(f) Reimbursement. Subject to policies and limits established from time to time by the Company, the Company shall reimburse Executive for the reasonable expenses incurred by him in connection with the performance of his duties hereunder, including but not limited to, travel
expenses, home office expenses and entertainment expenses, for which the Executive shall account to the Company in a manner sufficient to conform to Company policy and Internal Revenue Service requirements.

  

  

  

 

(g) Office Location. Except as otherwise agreed by Executive, the Executive will be permitted to work from his home office in North Carolina; provided that Executive shall do all necessary and requested travel in accordance with the Company’s travel policies.

4. Termination.

(a) Disability. If, as a result of the incapacity of the Executive due to physical or mental illness, the Executive is unable to perform substantially and continuously the duties assigned to him hereunder for a period of three (3) consecutive months or for a non-consecutive
period of nine (9) months during the Term of Employment, the Company may terminate his employment for "Disability" upon thirty (30) days prior written notice to the Executive.

(b) Death. The Executive's employment shall terminate immediately upon the death of the Executive.

(c) Cause. The Company shall be entitled to terminate the Executive's employment for "Cause." Termination by the Company of the employment of the Executive for "Cause" shall mean termination based upon (i) the willful failure by the Executive to follow directions communicated
to him by the Chief Executive Officer or his designee; (ii) the willful engaging by the Executive in conduct which is materially injurious to the Company, monetarily or otherwise; (iii) a conviction of, a plea of nolo contendere, a guilty plea or confession by the Executive to an act of fraud, misappropriation or embezzlement or to a felony; (iv) the Executive's habitual drunkenness or use of illegal substances; (v) a material breach by the Executive of
this Agreement; or (vi) an act of gross neglect or gross misconduct which the Company deems in good faith to be good and sufficient cause.  Executive hereby represents and warrants that he has never been convicted of an act of fraud, misappropriation, embezzlement or a felony, and Executive further warrants that during the Term of this Agreement, he will give the Company immediate notice of any charge against the Executive relating to any of the foregoing.

(d) Termination Without Cause. The Executive shall have the right to terminate the Executive's employment without cause at any time upon one month written notice.  The Company shall have the right to terminate the Executive’s employment without cause at any
time upon written notice.  The giving of notice by either party pursuant to Paragraph 2 to prevent the renewal of this Agreement shall not be deemed a termination of Executive’s employment without cause.

  

  

  

5. Compensation Upon Termination or During Disability

(a) Disability. During any period that the Executive fails to perform his full-time duties with the Company for a three-month period as a result of incapacity due to physical or mental illness (the "Disability Period"), the Executive shall continue to receive his Annual
Base Salary at the rate set forth in Paragraph 3(a) of this Agreement, less any compensation payable to the Executive under the applicable disability insurance plan of the Company during the Disability Period, until this Agreement is terminated pursuant to Paragraph 4(a) hereof. Thereafter, or in the event the Executive's employment shall be terminated by reason of his death, the Executive's benefits shall be determined under the Company's insurance and other compensation programs then in effect in accordance
with the terms of such programs and the Company shall have no further obligation to the Executive under this Agreement.

(b) Death. In the event of the Executive's death, the Executive's beneficiary shall be entitled to receive the Executive's Annual Base Salary at the rate set forth in Paragraph 3(a) of this Agreement until the date of his death. Thereafter, the Company shall have no further
obligation to the Executive or the Executive's beneficiary under this Agreement.

(c) Cause. If the Executive's employment shall be terminated by the Company for "Cause" as defined in Paragraph 4(c) of this Agreement, the Company shall continue to pay the Executive his Annual Base Salary at the rate set forth in Paragraph 3(a) of this Agreement through
the date of termination of the Executive's employment. Thereafter, the Company shall have no further obligation to the Executive under this Agreement.

(d) Termination Without Cause. If the Executive terminates his employment pursuant to Paragraph 4(d), the Executive shall be entitled to receive Executive’s Annual Base Salary at the rate set forth in Paragraph 3(a) of this Agreement until the date Executive’s
employment ends.  Thereafter the Company shall have no obligation to Executive.  If the Company voluntarily terminates the Executive's employment with the Company pursuant to Paragraph 4(d) of this Agreement, the Company shall until the earlier of the three month anniversary of the termination of employment or the commencement of Executive’s employment at a successor employer, pay the Executive an amount equal to three months of the Executive's then current Annual Salary, payable in
three equal monthly installments (or, if mutually agreed, in a more tax efficient manner). Additionally, until the earlier of the three month anniversary of the termination of employment, or the commencement of the provision of health benefits to the Executive by a successor employer, the Executive will continue to receive the same coverage of health insurance as immediately before the date of the termination, at the expense of the Company. Thereafter, the Executive acknowledges that the Company shall have no
further obligation to the Executive under this Agreement.  Notwithstanding the foregoing, the Company shall only be obligated to make the payments set forth in this section after the Executive delivers to the Company an executed Release and Severance Agreement, which shall be substantially in the form of Employer’s standard Release and Severance Agreement for all employees, with such changes therein or additions thereto as needed under then applicable law to give effect to its intent and purpose.  After
the Executive is no longer receiving benefits from Mediware, the Executive shall be eligible for COBRA at Executive’s own expense in accordance with applicable law.

  

  

  

(e) Acquisition or Sale of Company. If a third party described in Paragraph 5(f) of this Agreement terminates the Executive due to "an acquisition or sale of the Company", as described in Paragraph 5(f) below, the Company shall pay the Executive
an amount equal to six months of Executive's Annual Base Salary at the rate in effect at the date of termination of the Executive's employment during the period of the Executive's employment, payable in six equal monthly installments. Until the earlier of the six months after the termination of employment, or the commencement of the provision of health benefits to the Executive by a successor employer, the Executive will continue to receive the same coverage of health insurance as immediately before the date
of the termination, at the expense of the Company. Thereafter, the Executive acknowledges that the Company shall have no further obligation to the Executive under this Agreement.  Notwithstanding the foregoing, the Company shall only be obligated to make the payments set forth in this section after the Executive delivers to the Company an executed Release and Severance Agreement, which shall be substantially in the form of Employer’s standard Release and Severance Agreement for all employees,
with such changes therein or additions thereto as needed under then applicable law to give effect to its intent and purpose; and after delivery to the Company of a resignation from all offices, directorships and fiduciary positions with the Company, its affiliates and employee benefit plans.

(f) Definition. For purposes hereof, "an acquisition or sale of the Company" to or by "a third party" shall mean the occurrence of any transaction or series of transactions which within a six (6) month period result in (i) greater than fifty percent (50%) of
the then outstanding shares of Common Stock of the Company (for cash, property including, without limitation, stock in any corporation or other third party legal entity, indebtedness or any combination thereof) have been redeemed by the Company or purchased by a third party not previously affiliated with the Company, or exchanged for shares in any other corporation or other third party legal entity not previously affiliated with the Company, or any combination of such redemption, purchase or exchange, (ii) greater
than fifty percent (50%) in book value of the Company's gross assets are acquired by a third party not previously affiliated with the Company (for cash, property including, without limitation, stock in any corporation whether or not unaffiliated with the Company, indebtedness of any person or any combination thereof), or (iii) the Company is merged or consolidated with another private or public corporation or other third party legal entity and the former holders of shares of Common Stock of the Company own less
than 25% of the voting power of the acquiring, resulting or surviving corporation or other third party legal entity. For the purposes hereof a director or officer of the Company shall be considered "affiliated with the Company."

6. Confidentiality and Restrictive Covenants.

(a) The Executive acknowledges that:

(i) the business in which the Company is engaged is intensely competitive and his employment by the Company will require that he have continual access to and knowledge of confidential information of the Company, including, but not limited to, the nature and scope of its products, the object and source code offered, marketed or under development
by the Company or under consideration by the Company for development, acquisition, or marketing by the Company and the documentation prepared or to be prepared for use by the Company (and the phrase "by the Company" shall include other vendors, licensees or and resellers and value-added resellers of the Company's products or proposed product) and the Company's plans for creation, acquisition, improvement or disposition of products or software, expansion plans, financial status and plans, products, improvements,
formulas, designs or styles, method of distribution, lists of remarketing and value-added and other resellers customer lists and contact lists, product development plans, rules and regulations, personnel information and trade secrets of the Company, all of which are of vital importance to the success of the Company's business, provided that Confidential Information will not include information which has become publicly known otherwise than through a breach by Executive of the provisions of this Agreement (collectively,
"Confidential Information");

 

 

 

 

 

(ii)  the direct or indirect disclosure of any Confidential Information would place the Company at a serious competitive disadvantage and would do serious damage, financial and otherwise, to the Company's business;

(iii)  by his training, experience and expertise, the Executive's services to the Company will be special and unique; and

(iv)  if the Executive leaves the Company's employ to work for a competitive business, in any capacity, it would cause the Company irreparable harm.

(b)  Covenant Against Disclosure. The Executive therefore covenants and agrees that all Confidential Information relating to the business products and services of the Company, any subsidiary, affiliate, seller or reseller, value-added vendor or customer shall be
and remain the sole property and confidential business information of the Company, free of any rights of the Executive. The Executive further agrees not to make any use of the confidential information except in the performance of his duties hereunder and not to disclose the information to third parties, without the prior written consent of the Company. The obligations of the Executive under this Paragraph 6 shall survive any termination of this Agreement. The Executive agrees that, upon any termination of his
employment with the Company, all Confidential Information in his possession, directly or indirectly, that is in written or other tangible or readable form (together with all duplicates thereof) will forthwith be returned to the Company and will not be retained by the Executive or furnished to any third party, either by sample, facsimile, film, audio or video cassette, electronic data, verbal communication or any other means of communication.

(c)  Non-competition. The Executive agrees that, during the Term of Employment and for a period of one (1) year following the date of termination of the Executive's employment with the Company, the Executive will not own, manage,  or be connected as an
officer, employee or director with, or aid or assist anyone else in the conduct of, any entity or business which competes with the Company by selling or licensing products or modules that compete with any products or modules licensed or sold by the Company or any of its subsidiaries or affiliates, in the United States, Canada and the UK and any other area where such business is being conducted on the date the Executive's employment is terminated hereunder. Notwithstanding the foregoing the Executive's ownership
of securities of a public company engaged in competition with the Company not in excess of five (5%) percent of any class of such securities shall not be considered a breach of the covenants set forth in this Paragraph 6.

  

  

  

(d)  Further Covenant. Until the date which is one (1) year after the date of the termination of the Executive's employment hereunder for any reason, the Executive will not, directly or indirectly, take any of the following actions, and, to the extent the Executive owns, manages, operates, controls,
is employed by or participates in the ownership, management, operation or control of, or is connected in any manner with, any business of the type and character engaged in and competitive with that conducted by the Company or any of its subsidiaries or affiliates during the period of the Executive's employment, the Executive will  not encourage or participate in any of the following actions on behalf of such business:

(i) persuade or attempt to persuade any customer of the Company or any seller, reseller or value-added vendor of the Company or of its products to cease doing business with the Company or any of its subsidiaries or affiliates, or to reduce the amount of business it does with the Company or any of its subsidiaries or affiliates;

(ii) solicit for himself or any entity the business of (A) any customer of the Company or any of its subsidiaries or affiliates, or (B) any seller, reseller or-value-added vendor of the Company, or of its products, or (C) solicit any business from a customer which was a customer of the Company or any of its subsidiaries or affiliates within
six months prior to the termination of the Executive's employment; and

(iii) persuade or attempt to persuade any employee of the Company or any of its subsidiaries or affiliates or any individual who was an employee of the Company or any of its subsidiaries or affiliates, at any time during the six-month period prior to the Executive's termination of employment, to leave the employ of the Company or any of
its subsidiaries or affiliates.

7. Intellectual Property. The Executive hereby agrees that any and all (i) software, object code, source code, and documentation, (ii) any improvements, inventions, discoveries, formulae, processes, methods, know-how, confidential data, patents, trade secrets, (iii) Food and
Drug Administrative ("FDA") applications seeking approval by the FDA, information contained in the Forms 510-k of the FDA and approvals from FDA, and (iv) other proprietary information made, developed or created by the Executive (whether at the request or suggestion of the Company or otherwise, whether alone or in conjunction with others, and whether during regular working hours of work or otherwise) during the period of his employment with the Company, which may be directly or indirectly useful in, or relate
to, the business being carried out by the Company or any of its subsidiaries or affiliates, shall be promptly and fully disclosed by the Executive to the Board of Directors and shall be the Company's exclusive property as against the Executive, and the Executive shall promptly deliver to the Board of Directors of the Company all papers, drawings, models, data and other material relating to any invention made, developed or created by him as aforesaid.

  

  

  

The Executive shall, upon the Company's request and without any payment therefor, execute any documents necessary or advisable in the opinion of the Company's counsel to direct issuance of patents, copyrights and FDA applications or approvals of the Company with respect to such inventions or work product or improvements or enhancements as are to be the Company's exclusive
property as against the Executive under this Paragraph 7 or to vest in the Company title to such inventions as against the Executive, the expense of securing any such patent or copyright, to be borne by the Company.

8. Breach by Employee. Both parties recognize that the services to be rendered under this Agreement by the Executive are special, unique and extraordinary in character, and that in the event of a breach by Employee of the terms and conditions of the Agreement to be performed
by him, then the Company shall be entitled, if it so elects, to institute and prosecute proceedings in any court of competent jurisdiction, either in law or in equity, to enforce the specific performance thereof by the Executive. Without limiting the generality of the foregoing, the parties acknowledge that a breach by the Executive of his obligations under Paragraphs 6 or 7 would cause the Company irreparable harm, that no adequate remedy at law would be available in respect thereof and that therefore the Company
would be entitled to seek injunctive relief with respect thereto.

9. Arbitration. Without precluding acting to obtain specific performance and/or injunctive relief pursuant to Paragraph 9 above, in the event of any dispute between the parties hereto arising out of or relating to this Agreement or the employment relationship, including, without
limitation, any statutory claims of discrimination, between the Company and the Executive (except any dispute with respect to Paragraphs 6 and 7 hereof), such dispute shall be settled by arbitration in the City of Kansas City, State of Kansas, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association. The parties hereto agree that the arbitral panel shall also be empowered to grant injunctive relief to a party, which may be included
in any award. Judgment upon the award rendered, including injunctive relief, may be entered in any court having jurisdiction thereof. Notwithstanding anything herein to the contrary, if any dispute arises between the parties under Paragraphs 6 or 7, neither the Executive nor the Company shall be required to arbitrate such dispute or claim, but each party shall have the right to institute judicial proceedings the courts located in the City of Kansas City and the state of Kansas. If such judicial proceedings are
instituted, the parties agree that such proceedings shall not be stayed or delayed pending the outcome of any arbitration proceeding hereunder.

  

  

  

10. Miscellaneous.

(a) Successors; Binding Agreement. This Agreement and the obligations of the Company hereunder and all rights of the Executive hereunder shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns, provided,
however, that the duties of the Executive hereunder are personal to the Executive and may not be delegated or assigned by him.  By entering into this Agreement, the Executive’s prior employment agreement with the company is hereby terminated.

(b) Notice. All notices of termination and other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand, delivered by an express delivery (one day service), delivered by telefax and confirmed by
express mail or one day express delivery service, or mailed by United States registered mail, return receipt requested, addressed as follows:

	  	
If to the Company:

	  	
Mediware Information Systems, Inc.

	  	
11711 West 79th Street

	  	
Lenexa, KS  66214

	  	  
	  	
If to the Executive:

	  	
Alan Wittmer

or to such other address as either party may designate by notice to the other, which notice shall be deemed to have been given upon receipt.

(c) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Kansas without regard to the conflict of law rules thereof.

(d) Waivers. The waiver of either party hereto of any right hereunder or of any failure to perform or breach by the other party hereto shall not be deemed a waiver of any other right hereunder or of any other failure or breach by the other party hereto, whether of the same
or a similar nature or otherwise. No waiver shall be deemed to have occurred unless set forth in writing executed by or on behalf of the waiving party. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

(e) Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall otherwise remain in full force and effect. Moreover, if any one or more of the provisions
contained in this Agreement is held to be excessively broad as to duration, scope or activity, such provisions shall be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable law.

(f) Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

 

 

 

 

 

(g) Entire Agreement. This Agreement (including the applicable restricted stock agreements) sets forth the entire agreement and understanding of the parties in respect of the subject matter contained herein, and supersedes all prior agreements (including the prior employment agreements), promises, covenants,
arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of either party in respect of said subject matter.

(i) Headings Descriptive. The headings of the several paragraphs of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any of this Agreement.

(j) Capacity. The Executive represents and warrants that he is not a party to any agreement that would prohibit him from entering into this Agreement or performing fully his obligations hereunder.

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date first written above.

	
EXECUTIVE:
	  	
MEDIWARE INFORMATION SYSTEMS, INC:

	 	 	 	 
	 	 	 	 
	  	  	
By:
	
/s/ T. Kelly Mann

	
/s/Alan Wittmer
	  	
Name:
	
T. Kelly Mann

	
Alan Wittmer
	  	
Title:
	
President & Chief Executive OfficerExhibit 10.18

    Yeqing
Building Lease Agreement

    Part A:
Beijing Yeshi Enterprise Group Co., Ltd

    Part B:
Lakeland (Beijing) SafetyProducts Limited

    

    June 2,
2009

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Lessor:
Beijing Yeshi Enterprise Group Co., Ltd (Hereinafter referred to as Part
A)

    Lessee:
Lakeland (Beijing) Safety Products Limited (Hereinafter to as Part
B)

    

    Beijing
Yeshi Enterprise Group Co., Ltd (Hereinafter referred to as Part A), which is a
company established in accordance with Laws of the People’s Republic of China
with the registered address of NO.9  Wangjing Bei Lu Chaoyang
District, Beijing , China  having independent property rights of
Yeqing Building totally A,B,C,D four buildings( Hereinafter referred to as
Building) and Lakeland (Beijing) Safety Products Limited hereby reach the
Agreement as follows and sign the contract on       (date)

    

    Article 1
Room to Lease

    

    1. The
Lessor agree to lease Room 412 on four floor of building C totally 107 m2
architectural space (room location is red highlighted in the Appendix
1)

     2.
The room leased to Lessee shall only be utilized for office of company and shall
not be used as residence or workshop. Part B agrees to lease the room in the
current situation.

    

    Article 2
Lease, Rent and other Expense

    
      	
              1.

            	
              the
      lease period of this contract is from June 11,2009 to June 30,
      2011

            

    

    
      	
              2.

            	
              Rent:
      the rent of this contract includes lease of room and management fees
      (RMB1.5/day/ architectural m2
      )

            

    

    
      	
              3.

            	
              The
      rent of the room to lease of building A, B and C is RMB4.5/ architectural
      m2
      during the lease period.

            

    

    
      	
              4.

            	
              Part
      A agrees that lease Part B the room at favorable price during the
      favorable duration. The favorable price is RMB3.1/ architectural m2
      totally RMB245351. the favorable rent-free period is 20 days(
      the rent-free period refer to Article 4. paragraph one
    )

            

    

    
      	
              5.

            	
              The
      rent should be calculated according to the foreign exchange rate middle
      rate of the State Administration of Exchange Control when Part B pays the
      rent by foreign currency.

            

    

    
      	
              6.

            	
              Electricity
      fee: Part B pays Part A the electricity fee within five work days from 25
      of every month according to the actual use of electricity (the number of
      the ammeter). It starts from the day when Part B moves in as the first
      time to charge the electricity. The current electricity price is RMB1 per
      kilowatt hour which is subject to the price adjustment of the power supply
      section.

            

    

    
      	
              7.

            	
              Water
      fee: Part B pays Part A within five work days from 25 of each month
      according to the actual use of water, and it starts from the day when Part
      B move in as the first time to charge the water. The current water price
      is RMB6.1 per ton which is subject to the price of the water supply
      section.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              Parking
      fee: monthly parking fee for each seven and less than seven seats car
      includes RMB250 (RMB150 as monthly flat rate and RMB100 as overhead
      expense of Contractor), fixed parking lot RMB500 (RMB210 as monthly flat
      rate and RMB290 as overhead expense of Contractor) and underground parking
      lot RMB800; monthly parking fee for each more than seven seats car is RMB
      500 (RMB210 as monthly flat rate and RMB290 as overhead expense of
      Contractor). Part B pays the parking fee of next month within five work
      day. Charge the parking fee according to the actual days if park less than
      one month. Parking lot number is one. Part A offer the parking place of
      bicycle but have no responsibility of
  management.

            

    

    

    Article 3
Security Deposit

    

    
      	
              1.

            	
              Part
      B pays Part A three months rent totally RMB29853 as the guarantee to
      perform the contract when the two parties sign the contract. The security
      deposit has no interest.

            

    

    
      	
              2.

            	
              When
      the contract expires, Part A refund the full amount security deposit to
      Part B without any interest or compensate within one month after Part B
      change its registered address to be not Yeqing Building, provided the
      latter performs all the obligation stipulated in the contract and pay off
      all the payable expense. If Part B needs not change its registered address
      Part A refund the full amount security deposit to Part B within one month
      after Part B pay off all the expense provided the latter performs all the
      obligation stipulated in the
contract.

            

    

    
      	
              3.

            	
              It
      applies to Article 10 paragraph ten if Part B terminates the contract
      without the consent of Part A during the lease
  period.

            

    

    
      	
              4.

            	
              Part
      B should not use the security deposit to countervail the rent or the other
      expense.

            

    

    
      	
              5.

            	
              Part
      B should not transfer the creditor’s right to the third part or pledge for
      the others and should not use the security deposit as the other expense
      except the performance of the
contract.

            

    

    
      	
              6.

            	
              The
      contract terminated automatically if the security deposit of Part B do not
      arrive the account of Part A within three days after the contract
      signed.

            

    

    

    Article 4
Payment of Rent

    

    
      	
              1.

            	
              The
      rent-free period of Part B is from 11 June, 2009 to 30 June, 2009. Part B
      need no pay Part A the lease of the room, but should pay the management
      fee stipulated in the contract (RMB1.5/day/architectural m2),
      public service fee (include electricity rate and water rate) and the other
      expense. The management fee should pay with the security deposit during
      the rent-free period. During the rent-free period, Part B should perform
      the entire obligation and abide all the regulation stipulated in the
      contract except need not pay lease of room. Part B should pay the
      telephone bill and internet fee to China
  Telecom.

            

    

    
      	
              2.

            	
              Part
      B pays Part A the rent every one month. The first time to pay the rent is
      before 01 July and the total amount is RMB10282.7. The
      second time to pay the rent is within five work days from 25 July, 2009
      and from then on the date to pay the rent is within five work days from 25
      of every month according the actual number of days of each
      month.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3.

            	
              Payment
      of Part B shall be made in check or cash or remit to the bank appointed by
      Part A if pay by bill of exchange. The date of remitting the bill of
      exchange shall be the date of
payment.

            

    

    
      	
              4.

            	
              Part
      B should pay the rent according to the date stipulated in the
      contract.

            

    

    
      	
              5.

            	
              When
      receive the rent and the other expense Part A should make legal equal
      amount invoice to Part B with Part A as the issuer of the
      invoice.

            

    

    

    Article 5
Decoration and Remedy

    

    
      	
              1.

            	
              Part
      B should abide the regulation established by Part A and the agreement
      signed by the two parties.

            

    

    
      	
              2.

            	
              Part
      B should not rebuild or decorate any public area or public part, should
      not mark, scrawl or drill on the public part, and should not change the
      appearance of the building without the written consent of Part
      A.

            

    

    
      	
              3.

            	
              After
      getting the decoration permit, Part B should paste the decorate permit on
      the door or the other conspicuous place of the lease room so Part A can
      inspect the decoration.

            

    

    
      	
              4.

            	
              Part
      B should insure the decoration have no damage to the instruction and
      facility of the lease room and the building and have no effect on the
      other lessee to use the building and the room they
  lease.

            

    

    
      	
              5.

            	
              During
      the lease period, Part B should support Part A when the latter need remedy
      or rebuild the building and should not restrict or disturb the builder
      employed by Part A. But Part A should give written notice to Part B and
      made the utmost possible efforts to insure Part B can work
      normally.

            

    

    
      	
              6.

            	
              Part
      A can enter the lease room of Part B to inspect and maintain after giving
      logical notice in advance. Part A can enter the lease room of Part B
      without notice in an emergency and take down the window and door to get in
      when necessary and inform Part B within 24 hours after the
      fact.

            

    

    
      	
              7.

            	
              Part
      B should keep the lease room and the facility of the room in good, clear,
      tenantable and maintained condition (not include natural abrasion). Part B
      should not repair any damage or flaw of the room, but should inform Part A
      of that. Part B must assume the responsibility of any personal injury or
      property lose to Part B or anyone others caused by the lease of the room
      and the disrepair or damage of the
facility.

            

    

    
      	
              8.

            	
              Part
      B should take all reasonable precaution to protect the interior of the
      room against damages from fire, water, wind and the like, and ensure close
      all the windows under the threaten of atrocious
  weather.

            

    

    
      	
              9.

            	
              Part
      B should not claim for compensation to Part A when remedy or rebuild of
      the lease room or the whole building which make Part B cannot use the room
      normally are caused by Force
Majeure.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Article 6
Entry and Exit of the Lease Room

    

    
      	
              1.

            	
              Part
      B should presents the basic information of the company and the employ to
      the administrative personnel of Part A and should equip its stuff Security
      Access Control card (detail refer to Appendix Four Article 3 paragraph
      five). Stuff of Part B should not stay in the room overnight. Part A stops
      the normal property and personal service after 18:00 on work
      day.

            

    

    
      	
              2.

            	
              Part
      A or the worker hired by Part A should inform Part B in advance when they
      need enter the lease room because of the reason of maintain, inspect,
      security, fireproofing, installation and the like. Part A can enter the
      room directly in emergency when Part A is not able to inform Part B in
      advance, but get in touch with Part B within 24 hours after the
      fact.

            

    

    

    Article 7
Rights and Obligation of Part A

    

    
      	
              1.

            	
              Part
      A should not announce unilaterally raise the rent without the consent of
      Part B. but the rent price should be readjusted when renew the expired
      contract, otherwise the contract cannot be
  extended.

            

    

    
      	
              2.

            	
              Part
      A should provide Part B the use of central
    air-conditioning:

            

    

    
      	
                 
      1)

            	
              Free
      of charge cooling time and standard: 8:00-18: from Monday to Friday. No
      heating on legal holiday.

            

    

    
      	
                 
      2)

            	
              Free
      of charge heating time and standard: heating period is 15 November every
      year to 15 March of the next year. During this period 8:00 to 18:00 is
      normal heating time and 18:00 to 8:00 is low temperature heating
      time.

            

    

    
      	
                 
      3)

            	
              It
      charges 930 per hour (limited to D building) outside the time stipulated
      above from Monday to Friday. If the central air-conditioning is used for
      heating or cooling on the other holidays the using time of should not less
      (it should be a mistake of the contract which should be “more” I think)
      than 4 hour, and the excess time will be charged according to the above
      charge regulation.

            

    

    
      	
              3.

            	
              To
      be responsible for the security, fireproofing, environmental hygiene and
      the like of the public area and public
facility.

            

    

    
      	
              4.

            	
              Inspect
      and maintain the public area and facilities to ensure them in good usable
      condition and repair in time in the event of any damage malfunction or
      receiving the written notice from Part B of damage and
      malfunction.

            

    

    
      	
              5.

            	
              Part
      A provide Part B with the other paid service (details refers to Appendix
      Four Article 3 Paragraph four)

            

    

    
      	
              6.

            	
              Part
      A can amend the Appendixes of the contract Property Management Agreement,
      Fire Control Safety Responsibility Pledge and Security Responsibility
      Pledge according to the relevant government document and regulation and
      the actual position of the company. The amended version should be sent to
      Part B in time and come to force upon the arrival to Part
    B.

            

    

    
      	
              7.

            	
              Part
      A should keep the circuitry, equipment, water pipe, drainage system and
      the other public facilities in good and rentable condition. Part A have no
      responsibility for the failure to function normally of the public
      facilities or the intermission of the water, air-condition and the like
      caused by emergent maintaining, Force Majeure, or have notified Part B in
      advance.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Article 8
Rights and Obligation of Part B

    

    
      	
            	
              1.

            	
              Part
      B should be a legal company registered in China, or legal office in
      Beijing of foreign company registered legally, or legal entity, operating
      unit, the other social organization registered in the relevant
      administrative organ. Part B should submit the duplicate of Corporate
      Business License (with the seal of the company) to Part A as the appendix
      of the contract. If Part B is a newly established company, the appointed
      corporate executive of Part B sign the contract with Part A, and submit
      the relevant legal document to Part A within 10 days after the
      establishment of the company. The two parties should change the contract
      in the form of complementary
agreement.

            

    

    
      	
            	
              2.

            	
              Part
      B has the right to use the lease room but have not the ownership. No
      sublease, relet, transfer, pledge or borrow are allowed. The above
      regulation applied to the entire article in the lease room provided by
      Part A.

            

    

    
      	
            	
              3.

            	
              The
      room leased to Lessee shall only be utilized for office of company. Part B
      should not use the lease room as other application, should not change the
      room or any part of the room to broadcasting studio, should not hold any
      religion ritual or any other rite and should not use the room for
      gambling, prostitution, or any other illegal and immoral purpose. Part B
      should not use the lease room for any activity that endanger State
      security, should not perform or allow any auction or sale activity of any
      article or any property, should not lease the room by any way that may
      that will harm or endanger Part A or the other lessee such as noise,
      disarrangement smell and the like.

            

    

    
      	
            	
              4.

            	
              Part
      B should not operate business under the name of Part
  A.

            

    

    
      	
            	
              5.

            	
              Part
      B should not jam, incise, damage, change or disarrange any public area or
      fixed equipment of the building and should not influence the supply and
      usage of the water, electricity, gas and the like of the
      building.

            

    

    
      	
            	
              6.

            	
              Part
      B should not move or change the facilities of the lease room during the
      decoration without the consent of Part A; otherwise, Part B should assume
      total responsibility.

            

    

    
      	
            	
              7.

            	
              Part
      B should restore the lease room to the original state or bear the expense
      to restore the lease room, except otherwise agreed by the
      parties.

            

    

    
      	
            	
              8.

            	
              Part
      B should abide the contract and the management system of Part
      A.

            

    

    
      	
            	
              9.

            	
              Part
      B is liable to the security,anti-epidemic and the
      fireproofing of the lease room. Office and business activities should
      confirm to the regulation of Beijing fire and health and anti-epidemic
      department and the Fire Control Safety Responsibility Pledge (refer to
      Appendix Two).

            

    

    
      	
            	
              10.

            	
              Part
      B should report the power load condition of the lease room to Part A
      before decoration for the later to audit in advance. Register and file the
      number and power load of the large and irregular electric equipment to
      Part A and obtain the consent of Part A before increasing new large and
      irregular electric equipment. Equipment inside the room such as computer
      should be equipped with UPS.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              11.

            	
              Part
      B should not put any article that beyond the design load of the lease room
      floor in the room. Part A reserves the right to stipulate the weight and
      location of the coffer of Part B.

            

    

    
      	
            	
              12.

            	
              Part
      B should not move any heavy machine and large equipment into the building.
      Notifying Part A in advance before move out large number of office
      electricity equipment and establishment, and move out with the consent of
      Part A and out certificate. It’s considered as breach of the contract and
      Part A have the right to penalize Part B if Part B moving our without
      consent of Part A seriously badly. Part B should follow the direction of
      Part A people.

            

    

    
      	
            	
              13.

            	
              Part
      B should not use the lease room as manufacture and storage purpose except
      sample and item for display. Prohibit any flammable, explosive, virulent,
      radioactive dangerous article.

            

    

    
      	
            	
              14.

            	
              Part
      B should not place article or garbage in the lobby, corridor or the other
      public area of the building.

            

    

    
      	
            	
              15.

            	
              Part
      B should pay the agreed rent of the contract, the water and electricity
      fee and the other relevant fee, and should not delay the payment by any
      reason or refuse the payment.

            

    

    
      	
            	
              16.

            	
              Part
      B should keep the inside of the lease room clean and in good condition,
      including but not limited to floor, wall, floor board, ceiling and the
      estate like window, door, line of power and gas. Keeping the facilities,
      furniture and sanitary utensils clean and in good condition. Part B pays
      the expense to when Part A remedy the damage of the lease room, the damage
      of the public area caused by Part B or the guest of Part
  B.

            

    

    
      	
            	
              17.

            	
              Except
      the sign and nameplate provided by Part A, Part B should not put any
      advertise sign, light box, signboard, decoration, flag, poster or the
      other articles inside or outside of the lease and the public area which is
      visible from outside of the
building.

            

    

    
      	
            	
              18.

            	
              During
      the lease period, Part B should submit the duplicate of its Corporate
      Business License (with seal of the company) which passed the annual audit
      to Part A to keep in a file.

            

    

    

    Article 9
Renewal

    

    
      	
            	
              1.

            	
              Part
      B should negotiate the new rent and the other terms with Part A within two
      month before the contract becomes expire if Part B desire a renewal, and
      sign the official Lease Agreement with Part A within one month before the
      contract becomes expires. If the two parties do not sign official Lease
      Agreement within one month before the contract becomes to expires, Part A
      have the rights to take potential lessee to the lease room and show them
      around provided not disturb the normal work of Part
  B.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Article
10 Liability for Breach of Agreement

    

    
      	
              1.

            	
              The
      parties should strictly comply with provisions hereof. In case of any
      breach of the Lease Agreement the not-defaulting party has the right to
      seek the liability for breaching the agreement according to what the two
      parties agreed and require the defaulting party bear all the economic lose
      and pay penalty. The economic loss includes but not limited to the direct
      lose and the foreseeable indirect lose, court fee, attorney fee and other
      expenses incurred.

            

    

    
      	
              2.

            	
              When
      Part B violates Article 5 paragraph one of the Lease Agreement, Part A has
      the right to requires Part B stop the instruction immediately and punish
      Part B according to the Decoration
Agreement.

            

    

    
      	
              3.

            	
              Part
      B should bear all the remedy cost and the loss of Part A, when Part B
      violate Article 5 paragraph two and Article 8 paragraph five, and damage
      the reflection glass curtain wall, inside instruction or the central
      air-condition system due to the behavior and
  misfeasance.

            

    

    
      	
              4.

            	
              Part
      B should bear all the loss and compensation when Part violates any
      paragraph of Article 5 paragraph three, paragraph four, paragraph seven,
      paragraph eight and paragraph
sixteen.

            

    

    
      	
              5.

            	
              Part
      B should bear all the maintenance cost when Part B violates Article 5
      paragraph eight and is liable to the damage of the lease room or the
      inside of the building entirely or partly caused by the breach which
      includes the damage to the decoration, the fixed facilities and
      equipment.

            

    

    
      	
              6.

            	
              Part
      A will finish the work substitute Part B with all the cost charge to the
      latter, when the latter violates Article 8 paragraph seven or paragraph
      fourteen.

            

    

    
      	
              7.

            	
              Part
      B is liable to all the loss and compensation in case of breach of Article
      8 paragraph nine or paragraph thirteen or Appendix Two Fire Control Safety
      Responsibility Pledge. Responsibility person of the fire accident is
      liable to compensate the economic loss and the one cause serious
      consequences should be investigated for criminal responsibility by the
      justice department.

            

    

    
      	
              8.

            	
              Part
      B is liable to the compensation for the loss which includes the damage of
      the building, elevator and personal injury caused by the activity of Part
      B in case of the breach of Article 8 paragraph twelve. If Part B moves out
      large number of article without the consent of Part A, the latter have the
      right to increase equal amount of security deposit according to Article 3
      paragraph one. It applies to Article 10 paragraph one in case of the
      breach of the agreement.

            

    

    
      	
              9.

            	
              Part
      A have the right to require Part B pay penalty due to breach of contract
      which is one percent of the total expense when the latter violate Article
      8 paragraph fifteen and fail to pay the rent including electricity fee,
      parking fee, cleaning fee and the like. The penalty calculation starts
      from 1st
      of each month. Part A have the right to intermit the supply of water,
      electricity until Part B pay off all the payable expense when the latter
      delay the payment up to ten days. Part A have the right to terminate the
      Lease Agreement unilaterally assuming Part B breach the Lease Agreement
      when the latter delay the rent more than one month or delay the
      electricity fee more than three months. Part B should move out
      unconditionally after receive the notice of Part A and pay the rent,
      electricity fee, cleaning fee, parking fee and the like according to the
      actually number of days till retrocede the lease room, at the same time
      Part A have the right to claim for penalty which is two times of the rent.
      In addition, Part B should bear all the expense when Part A obtains the
      rent and penalty through litigant means of course (including but not
      limited to legal fare, appraisal cost and retaining fee and the
      like).

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              10.

            	
              If
      Part B terminates the Lease Agreement before the prescribed time, Part B
      should pay off the rent of the number of the days during the lease period
      and the cost to restore the lease room and get the security deposit back
      or waive the security deposit and the favorable polices which includes
      rent-free period, favorable rent.

            

    

    
      	
              11.

            	
              Part
      A have the right to dismantle the advertise, light box, signboard,
      decoration, flag, poster or the other articles Part B installed or
      exhibited against Article 8 paragraph seventeen with all the cost borne by
      Part B.

            

    

    
      	
              12.

            	
              if
      Part B breach the Lease Agreement and cost loss to Part A, the latter have
      the right to require correct according to the breach and the consequence
      or put forward the termination of the Lease Agreement. In case of
      termination of Part A, Part B should move out of the lease room within one
      month after receiving the notice of Part A and pay the rent till the date
      retroceding the room. In case of deferred payment, Part A is entitled of
      the double of rent as compensation besides the rent and will not return
      the security deposit.

            

    

    
      	
              13.

            	
              It
      breaches the Lease Agreement if Part A fails to hand the lease room to
      Part B on schedule and is liable to one percent of the month rent penalty
      per day beyond the time limit.

            

    

    
      	
              14.

            	
              If
      Part A is liable to all the cost caused by the breach of Article 7
      paragraph one of Part A and return full amount of the security deposit to
      Part B.

            

    

    

    Article
11 Rescission and Termination of the Lease Agreement

    

    
      	
              1.

            	
              Part
      A is entitled to terminate the Lease Agreement unilaterally in case of the
      illegal operation identified by relevant government
  bodies.

            

    

    
      	
              2.

            	
              Part
      A is entitled to terminate the contract and do not return the security
      deposit in case of the breach of Article 8 paragraph two or three or
      paragraph two of Security and Safety Responsibility Pledge with all the
      loss and compensation borne by Part
B.

            

    

    
      	
              3.

            	
              The
      contract terminates automatically when the building is entirely or partly
      unavailable or the lease room is unavailable or not allowed to use because
      of the Force Majeure, and two parties should not claim compensation to
      each other.

            

    

    
      	
              4.

            	
              Part
      A have the right to terminate the contract unilaterally when Part B
      violate the Property Management Agreement or the relevant accidental
      contract and appendix, fail to correct immediately after receiving the
      notice of Part A and cause loss to Part A with serious circumstance and
      consequence. Part A do not refund the security deposit in case of this
      kind of termination of the
contract.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              5.

            	
              Part
      B should notify Part A 60 days in advance if Part B need terminate the
      contract before the expiration of the contract. The contract can be
      terminated with the consent of Part A, and the security is not refunded.
      It is deemed to breach the contract if Part B consist terminate the
      contract without the consent of Part A and  Article 10 paragraph
      ten is execute at the same time.

            

    

    
      	
              6.

            	
              Part
      A should notify Part B three month in advance if Part A have to terminate
      the contract to rebuild, overhaul renovate the building because of Force
      Majeure. The Contract terminates automatically after three
      month.

            

    

    
      	
              7.

            	
              Part
      B should not claim any expense such as transfer fee, remove fee, business
      compensation fee, decoration fee and the like when the contract expire or
      terminated with the consent of the two parties or recriminated because of
      default of Part B.

            

    

    
      	
              8.

            	
              Part
      B should retrocede the lease room to Part A in due time. Part B should
      obtain the consent of Part A to delay the restoration of the lease room
      and be responsible for the liability for breach of contract. The penalty
      is double rent of breach of contract period. If Part B delay the
      restoration without the consent of Part A, the latter is entitled to
      execute Article 10 paragraph ten which stipulate Part B has no access to
      the rent-free period and favorable
rent.

            

    

    

    Article
12 Major Change

    

    
      	
              1.

            	
              Part
      B should notify Part A in writing immediately if there is any change of
      the company name, address, seat of head office, legal representative and
      major representative, or the other significant issue of Part B. the notice
      sent by Part A according to the address and name before changed is valid
      if Part A does not receive the written
notice.

            

    

    
      	
              2.

            	
              Part
      B should notify Part A when Part B change the legal representative, the
      assignee to sign the contract and the liaison person to Part A. Part A is
      entitled to require Part B to provide relevant documentation when Part A
      think the changes are detrimental for Part A to exercise the rights and
      obligations stipulated in the contract. Part A has the right to terminate
      the contract unilaterally in case of the failure of Part B in providing
      the documentation.

            

    

    
      	
              3.

            	
              during
      the lease period, Part A is entitled to change the name of the entire or
      part of the building and is not responsible for the cost of Part B caused
      by the change. Part A should notify Part B one month before the change of
      the name become effective.

            

    

    

    Article
13 Dispute Resolution

    

    The
contract applies to the laws of China, and any part can bring a suit before the
law court where the lease room is located in case of any dissension that cannot
solved through consultations when the two parts execute the
contract.

    

    Article
14 Other Terms

    

    
      	
              1.

            	
              Before
      Part A signs the contract, Part B should present the relevant procedure
      and the authorization letter that authorize the tenant representative to
      sign the contract, and the documentations mentioned above are the
      appendixes of the contract.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              According
      to the contract, the two parties should sign for all the announcement and
      documentation present to each other by people of the two parties. If the
      announcement and document are not present to each other by people of the
      two parties, it’s deemed to be presented when they are sent out by
      MES.

            

    

    
      	
              3.

            	
              Part
      A authorizes           (signature)
      to be the assignee in charge of the management of the building and the
      lease room stipulated in the contract, especially the execution of the
      contract including collect the rent and the other relevant
      expenses.

            

    

    
      	
              4.

            	
              Part
      B authorizes  (signature)
      to be the assignee in charge of sign the contract and sign for the
      document such as regulations and announcements from Part A which come into
      force upon signature.

            

    

    
      	
              5.

            	
              Letter
      of Authorization from the legal representative should be presented if the
      Lease Agreement is signed by the
assignees.

            

    

    
      	
              6.

            	
              The
      appendixes of the contract are components of the contract which have the
      same validity with this contract.

            

    

    
      	
              7.

            	
              The
      contract takes effect when the parties sign and stamp on it hereunto. The
      contract is made in quadruplicate, two for each
  party.

            

    

    

    Part B should accomplish the
enterprise business license within one month from the date leasing the
room.

    Appendix
One: Plan of the Lease Room and the Storey the Lease room Located

    Appendix
Two: Fire Control Safety Responsibility Pledge

    Appendix
Three: Security and Safety Responsibility Pledge

    Appendix
Four: Property Management Agreement

    Appendix
Five: Duplication of the enterprise business license counterpart

    

    PART A:
BEIJING YESHI ENTERPRISE GROUP CO.,LTD

    LEAGAL
REPRESENTATICE OR ASSIGNEE (SIGNATURE AND LEAL)

    

    PART B:
LAKELAND (BEIJING) SAFETY PRODUCTS LIMITED

    LEAGAL
REPRESENTATICE OR ASSIGNEE (SIGNATURE AND LEAL)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    APPENDIX
TWO:

    

    Fire
Control Safety Responsibility Pledge

    

    Part A: Beijing Yeshi
Enterprise Group Co., Ltd

    Part B: Lakeland (Beijing)
Safety Products Limited

    

    The Fire
Control Safety Responsibility Pledge is signed in the purpose of executing the
policy of devoting major efforts into prevention and combining fire prevention
with fire fighting of Fire Control Law of the People’s Republic of China,
ensuring the safety of the building and protecting the rights of Part
B.

    
      	
              1.

            	
              Part
      B should establish fire control safety management and assign the fire
      control principal to ensure no fire accident occurs in the lease
      place.

            

    

    
      	
              2.

            	
              Part
      B should strictly enforce the regulation and requirement of the electrical
      appliances usage to eliminate hidden fire
  danger.

            

    

    
      	
              3.

            	
              Part
      B should not hold dangerous articles such as those are virulent,
      flammable, and explosive to prevent
accident.

            

    

    
      	
              4.

            	
              Part
      B should furnish the fire control equipment ( 2 fire extinguishers for
      less than 200m2; 3
      fire extinguishers for 200-500 m2; 6
      fire extinguishers for 500-1000m2
      and 10 fire extinguishers fore 1000 and up) and be acquainted with the use
      and location of the equipment and the Fire Control Evacuation Road Map of
      the Building.

            

    

    
      	
              5.

            	
              The
      independent rooms of Part B such as warehouse and facility house should be
      equipped with fire control devices.

            

    

    
      	
              6.

            	
              Control
      the kindling strictly. Smoking in the room, corridor, service area is
      strictly forbidden. Stub should not be littered. Smoking should be in the
      smoking section. Open-flame is forbidden. The use of electric cooker and
      dangerous electric heater is strictly
  prohibited.

            

    

    
      	
              7.

            	
              Part
      B should presents decoration scheme to Part B if decoration is necessary
      before moving in and construct after obtaining the consent of Part A. Part
      B should pay attention to the safety of electric appliance, should not use
      open-flame and comply with the management of the fire control safety
      personnel of the building. Part B should be punished in case of breach of
      the decoration agreement.

            

    

    
      	
              8.

            	
              Part
      B should not install temporary electrical wire. if electrical wire is to
      be installed, Part B should submit the application the property project
      department and install the electrical wire with the approval, abide the
      relevant fire control regulation and ensure turn off the power after
      worker.

            

    

    
      	
              9.

            	
              Part
      B should check the fire extinguisher frequently to ensure the validity.
      It’s forbidden to stack sundries in front of fire control equipment and
      fireplug. Reasonable precaution should be taking to ensure the fire
      control equipment in good condition. Remove and damage to the fire control
      equipment are prohibited.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              10.

            	
              Responsibility
      person of the fire accident caused by breach of the above regulation is
      liable to compensate the economic loss and the one cause serious
      consequences should be investigated for criminal responsibility by the
      justice department.

            

    

    

    Beijing
Yeshi Enterprise Group Co., Ltd

    Signature
of Representative and Company Seal __________

    2 June,
2009

    

    Manager
of Part B

    Signature
and Seal of Company Seal __________

    2 June,
2009

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    APPENDIX
THREE:

    

    Security
and Safety Responsibility Pledge

    

    Part A: Beijing Yeshi
Enterprise Group Co., Ltd

    Part B: Lakeland (Beijing)
Safety Products Limited

    

    Security
and Safety Responsibility Pledge is signed in the purpose of executing Beijing
Enterprise Security Responsibility System, Law of the People’s Republic of China
on Control of the Entry and Exit of Aliens, further clarifying the inside safety
responsibility, maintain the normal office order and protect the right s Part
B.

    
      	
              1.

            	
              Tenant
      should abide all the laws and regulations of China and register the
      company and the staff of the company legally to the relevant
      organizations.

            

    

    
      	
              2.

            	
              Part
      B should no engaging in illegal activities such as gambling, prostitution,
      Falun Gong, rabble, fight and affects the office order of the
      building.

            

    

    
      	
              3.

            	
              Staying
      in the building overnight is not allowed and those who breach the
      regulation should be pursued the responsibility according to the relevant
      security regulation.

            

    

    
      	
              4.

            	
              The
      staff of Part B should go the business center of the building to handle
      Door Access Control card by valid document (foreign personnel use passport
      and Chinese personnel use ID card and employee form) and letter of
      instruction from the company. The Security Access Control card is the
      valid certificate to enter the
building.

            

    

    
      	
              5.

            	
              Establish
      and improve all kinds of safety and security regulations and reinforce the
      security and law-abiding education to the
staff.

            

    

    
      	
              6.

            	
              Part
      B should take reasonable preventative measurements, abide the financial
      management regulations, properly keep the property of the company and the
      money of the staff to prevent theft
case.

            

    

    
      	
              7.

            	
              Part
      B should abide the receipt system and conform to the property management
      of Part A.

            

    

    

    Beijing
Yeshi Enterprise Group Co., Ltd

    Signature
of Representative and Company Seal 

    2 June,
2009

    

    Manager
of Part B

    Signature
and Seal of Company Seal 

    2 June,
2009

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    APPENDIX
FOUR:

    

    Property
Management Agreement

    Part A: Beijing Yeshi
Enterprise Group Co., Ltd

    Part B: Lakeland (Beijing)
Safety Products Limited

    

    Article 1
Use, Management and Maintenance of the Lease Room

    

    
      	
              1.

            	
              Part
      B should observe the relevant laws, statutes and regulations and handle
      the relation properly between the water supply, pollution discharge,
      traffic, ventilation,  lighting, maintenance, decoration,
      environment sanitation and environment protection in light of helping
      maintain the appearance and safety for use of the
  property.

            

    

    
      	
              2.

            	
              following
      acts are prohibited in property management
area:

            

    

    
      	
            	
              2.1

            	
              Changing
      the instruction, appearance and use of the room without authorization of
      relevant government departments and consent of Part
  A.

            

    

    
      	
            	
              2.2

            	
              Encroaching
      the public area such as public staircase, banister, corridor, basement,
      platform and roof or removing public
equipment.

            

    

    
      	
            	
              2.3

            	
              Setting
      up building or stacking articles in the courtyard, platform, green land,
      road and the other public area.

            

    

    
      	
            	
              2.4

            	
              Encroaching
      or damaging road, green land, flowers and trees, art landscape,
      recreational and sports facilities.

            

    

    
      	
            	
              2.5

            	
              Dumping
      or littering garbage randomly.

            

    

    
      	
            	
              2.6

            	
              Holding
      flammable, explosive, virulent, radioactive dangerous articles in the
      room, discharging deleterious substance and making noise beyond standard
      level are strictly prohibited.

            

    

    
      	
            	
              2.7

            	
              Constructing
      windows or doors in the building without permit and hanging, posting,
      scrawling and carving in the building
  arbitrarily.

            

    

    
      	
            	
              2.8

            	
              Using
      the property for activities that jeopardizing public
      interests.

            

    

    
      	
            	
              2.9

            	
              The
      other activities forbidden by laws, statutes and
    regulations

            

    

    
      	
              3.

            	
              Part
      B should presents decoration scheme to Part A in advance, decorate the
      room with the consent of Part A and sign decoration agreement with Part
      A.

            

    

    
      	
              4.

            	
              Part
      B is strictly prohibited to bring pets into the
  building.

            

    

    

    Article 2
Instructions for Yeqing Building

    

    
      	
              1.

            	
              Conformation
      of the Room

            

    

    
      	
              1.1

            	
              All
      the building of Part B is case-in-place reinforced concrete frame concrete
      wall structure. The seismic fortification intensity of the building is 8
      and the anti-seismic rating is 2.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.2

            	
              Load
      capacity per unit area: 250kg/m2

            

    

    
      	
              1.3

            	
              Height
      of the floors: 2.5-2.8m

            

    

    

    
      	
              2.

            	
              Instruction
      of Equipment and Facilities

            

    

    
      	
              2.1

            	
              Elevator:
      it’s Hitachi elevator for the first phase and Mitsubishi elevator for the
      second phase.

            

    

    
      	
              2.2

            	
              Fire
      control system: the public area of each floor is furnished with fire alarm
      and emergency broadcast system. There are emergency lighting system in all
      public area and fire control
passageway.

            

    

    
      	
              2.3

            	
              Security
      service: the public area of each floor is furnished with fire alarm and
      emergency broadcast system. There are emergency lighting system in all
      public area and fire control
passageway.

            

    

    
      	
              2.4

            	
              Central
      air-conditioning system: Shuangliang central air-conditioning
      system

            

    

    
      	
              2.5

            	
              Building:
      the building has various kinds of services such as catering, post office
      and business center.

            

    

    
      	
              2.6

            	
              Parking
      place: underground garage and parking place in the courtyard. One parking
      place per 150m2.

            

    

    
      	
              2.7

            	
              Postal
      system: there are stainless steel individual big capacity letterboxes for
      each tenant. The post office staff distribute the newspapers and
      periodicals to all the customers. There are two keys for the letterbox,
      one for the customer and one for the post office
  person.

            

    

    

    
      	
              3.

            	
              Power
      Supply and Distribution System

            

    

    
      	
              3.1

            	
              Instruction
      of Power Distribution and Lighting
System

            

    

    
      	
              3.1.1

            	
              Customer
      Ammeter

            

    

    That to
secure the physical and property safety of the customer, the socket branch
inside of the ammeter are equipped with electric leakage switch which will cut
off the branch power in case of electric leakage.

    There are
special ammeters in the lease area of the customers. The property management
personnel read the ammeter every 20th and
send the electricity bill to the room of the customer every 25th.

    
      	
              3.1.2

            	
              Lighting
      System

            

    

    The
lighting system is composed of three BV wires of different colors which lead the
electricity to the lamps from the power distribution box by several loops, and
the three wires are control line, neutral line, earth line. It’s prohibited to
install electric wire without permit because the pressure of the lamps is non
safety pressure. Notify the property people in case of electric wire
requirement.

    

    
      	
              4.

            	
              Instruction
      of the Intellectualized System

            

    

    
      	
              4.1

            	
              Visible
      Interphone System

            

    

    4.1.1 The
visitor of Part B can call Part B by the outdoor interphone. Part B can talk
with the visitor through the indoor interphone and see the picture of the
visitor.

    4.1.2
Part B can press the relevant button to open the door when Part B allow the
visitor to enter.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.1.3
Part B can notify Part A for help in case of indoor accident.

    

    
      4.2  
Door
Access Management Subsystem

    

    

    
      	
              4.3

            	
              The
      entry of Building A, C, D and the elevator entry of each building from the
      garage are all equipped with door bans. Put the Door Access Control card
      close to the card reader to enter, otherwise the entry will be denied. The
      visitor can input the room number to visit and get enter with the consent
      of the one to be visited.

            

    

    

    Article 3
Management System

    

    
      	
              1.

            	
              Decoration
      Process and Requirement

            

    

    
      	
              1.1

            	
              Declaration

            

    

    
      	
              1.1.1

            	
              When
      Part B need decorate the lease room, Part B should present a written
      application to Part A which includes the
  following:

            

    

    1.1.1.1  The
design plan including the reconstruct of the original room. Part B should obtain
the consent of Part A in case of reconstruct of the wires. Part B should obtain
the inspect report of the electricity inspect department (state-certified and
appointed by Part B) after finishing the reconstruction before moving in the
room.

    1.1.1.2
the duplication of the corporate business license (with company seal),
qualification certificate, letter of attorney (with company seal), professional
certificate for electricity, fire control and electric welding
operation.

    1.1.1.3
Construction drawing, smoking detecting system location drawing (original
location and reconstructive location), list of the material used in the
construction (environment friendly) and construction period.

    1.1.1.4
number of construction people, liaison person and contact method.

    1.1.2
Part B should re-declare and get examination and approval newly in case of
change of the design and construct with the relevant consent. The project will
not be inspected and accepted if Part B does not declare the
change.

    1.1.3
Part A audit the construction plan and decide whether grant the approval or not
within 3 days from the date of receiving the declaration.

    1.1.4
with the approval of the construction plan, Part A organize a meeting before the
decoration to handle related procedures and sign Decoration Agreement, Safe
Decoration Guarantee with the customer.

    

    1.2
Expense Standard

    1.2.1
Construction Deposit: RMB30/M2,
charging according to the construction area of the room leased by Part
B

    1.2.2 One
time construction management fee: charging according to the number of
construction days stipulated by the Decoration Construction Agreement, 12 hours
as a construction period, RMB120 within 8 hours (including 8 hours), RMB15
during 8-12 hours, what beyond 12 hours will be calculated in next construction
period, less than one hour will be calculated as one hour.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2.3
Second time construction management fee: the management fee is RMB120 per day,
less than one day will be calculated as one day.

    1.2.4
Calculation of number of construction days: it calculates starts from record
time when the security persons open the door and stop to record the time when
the security persons lock the door. The two parties Settle accounts every day
and the construction people sign for confirmation.

    

    
      	
              1.3

            	
              Construction

            

    

    
      	
              1.3.1

            	
              Construction
      time: during 18:00-7:00 of Monday to Friday, Saturday and Sunday can
      construct with noise, and construct without noise during the other time.
      Constructions with stimulating odour such as painting, gluing, pasting
      wallpaper, laying carpet, paving floor are allowed to construct during
      18:00-6:00 of Friday to Sunday.

            

    

    
      	
              1.3.2

            	
              Part
      B should protect the equipment and facilities inside the room and equip
      with fire extinguisher.

            

    

    
      	
              1.3.3

            	
              The
      construction people should not stay in the construction site overnight,
      and should not

            

    

    
      	
              1.3.4

            	
              The
      decoration garbage and the construction material should be bought into the
      site after 18:00 every day. The garbage should be packed by garbage bags
      and dispose by the customer. Stacking and dumping randomly are not
      allowed.

            

    

    
      	
              1.3.5

            	
              Decoration
      company should assign one responsible person to supervise the
      construction, manage the workers, contact with Part A in time and ensure
      the management of the construction site comply with the regulation of Part
      A.

            

    

    
      	
              1.3.6

            	
              The
      construction should within the room and should not impropriate or block
      public passage.

            

    

    
      	
              1.3.7

            	
              The
      construction unit should ensure the neatness of the construction site
      without any pollution during the construction
  period.

            

    

    
      	
              1.3.8

            	
              The
      following are considered as noise and should conduct during the assigned
      time, otherwise, Part A have the right to expropriate the tools and stop
      the construction:

            

    

    
      	
            	
              (1)

            	
              drilling
      wall

            

    

    
      	
            	
              (2)

            	
              drilling
      or cutting metal

            

    

    
      	
            	
              (3)

            	
              construction
      with power saw

            

    

    
      	
            	
              (4)

            	
              the
      other construction with noise

            

    

    
      	
              1.3.9

            	
              Part
      B is not allowed to use carpet adhesive. Part B should declare for
      approval to Part A and use the assigned product by Part A if Part B have
      to use carpet adhesive.

            

    

    
      	
              1.3.10

            	
              The
      other relevant matters refer to Decoration Construction Agreement and
      Construction Decoration Fire Control Safe Agreement for
      detail.

            

    

    

    
      	
              1.4

            	
              Inspection
      and Approval

            

    

    
      	
              1.4.1

            	
              In
      case of violation behavior of Part B during the decoration, Part A will
      not inspect and approve before Part B correct
  it.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.4.2

            	
              The
      decoration is inspected and approved by phrase. It should be applied for
      inspecting and approving in advance in case of secluded
      project.

            

    

    
      	
              1.4.3

            	
              Part
      B should notify Part A for inspection and approval immediately after the
      decoration of the room finished. Part B should correct the unqualified
      decoration within allotted time.

            

    

    
      	
              1.4.4

            	
              Part
      A handles the lease procedures for Part B according to the qualified sheet
      of inspection and approval.

            

    

    

    
      	
              2.

            	
              Vehicle
      Management System

            

    

    
      	
              2.1

            	
              Handling
      long-distance identity induction parking card to park in the courtyard.
      The deposit is RMB50 per card.

            

    

    
      	
              2.2

            	
              Each
      company handles the ID card and parking permit uniformly and registers the
      number and style of the car. Copy of vehicle license must be provided when
      handle the parking permit.

            

    

    
      	
              2.3

            	
              Put
      the new ID card and parking card behind the front windshield of the
      vehicle and keep the “Activate the Window” forward to ensure the sensitive
      effect of the induction.

            

    

    
      	
              2.4

            	
              The
      vehicle should move lowly when enter or exit the park and move normally
      after the barrier of the induction system raising
      automatically

            

    

    
      	
              2.5

            	
              Driving
      in and out of the park in order. The next car should move in (or out)
      after the preceding car moving in (or out) and the barrier lowering
      completely. More than one vehicle move in (or out) of the park is
      prohibited. The vehicle will be declined to move in the park in case of
      rushing through the barrier.

            

    

    
      	
              2.6

            	
              Vehicle
      should enter the park once again after one entry and one
    exit.

            

    

    
      	
              2.7

            	
              The
      term of validity of the ID card is based on the payment period. It’s
      required to go and pay the parking fee in time to the business center. The
      ultimate activate time of the next month is with the ending date of the
      payment period in the payment notification of each month. The vehicle will
      be declined to enter when the payment is
  overdue.

            

    

    
      	
              2.8

            	
              Please
      go to the business center report the loss and handle the card again in
      case of the loss of the ID card.

            

    

    
      	
              2.9

            	
              Company
      certificate and ID card number of the vehicle are required when report the
      loss of the ID card and handle the new
card.

            

    

    
      	
              2.10

            	
              Deposit
      will not be refunded in case of loss and damage of the
    card.

            

    

    
      	
              2.11

            	
              Each
      company should have a copy of the ID card number of all the vehicle of the
      company for the affairs such as payment and
  activation.

            

    

    
      	
              2.12

            	
              The
      ID card is allowed for subtenancy of the ID card is allowed, but limited
      to the same models (between compact cars or full-sized cars). Sbutenancy
      is not allowed between different models, and parding place will be
      canceled in case of subtenancy between different
  models.

            

    

    
      	
              2.13

            	
              System
      do not allowed overground parking user drive into underground parking
      garage, therefore, subtenancy is not allowed between overground ID card
      and underground ID card.

            

    

    
      	
              2.14

            	
              When
      the vehicles that transfer people or goods for Part B enter the courtyard
      for short time, Part A distribute temporary charging IC card to the
      vehicle, withdraw the IC card when the vehicle leave and charge the
      vehicle according to the parking charging standard of Beijing
      city.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.15

            	
              Vehicle
      of Part B should obey the direction of Part A people when enter or leave
      the building, and blocking the door hostilely is strictly prohibited.
      Vehicle inside of the park should move following the traffic sign
      strictly, and going in a direction not allowed by traffic regulation is
      strictly prohibited. Parking the vehicle according to the management
      system of the park, taking care of the park equipment, paying attention to
      the vehicle around. Part A have the right to disqualify those who breach
      preceding regulation deliberately or hostilely from parking and even
      terminate the contract.

            

    

    
      	
              2.16

            	
              Taking
      flammable and explosive article to the park, refilling, repairing cars,
      washing cars and littering inside of the park is strictly
      prohibited.

            

    

    
      	
              2.17

            	
              Please
      not hold valuables in the vehicles. Part B is responsible for the loss in
      case of miss.

            

    

    
      	
              2.18

            	
              Part
      A has no responsibility for the management of bicycle. If Part B should
      put the bicycles in the bicycle parking place in west of Yeqing Building,
      building C. put the bicycle in order and lock it after parking. Part B is
      responsible for the losing in case of loss. The bicycle should be wheeled
      in or out of the building and riding bicycle is not allowed inside the
      courtyard.

            

    

    

    
      	
              3.

            	
              Management
      System for Moving and conveying Article of
  Customer

            

    

    
      	
              3.1

            	
              Part
      B should notify Part A one week in advance before moving out and move out
      after obtain the consent of Part A. Part A has to right to forbid the
      moving of Part B in case of the non-conformance of Part B and Part B is
      responsible for the loss arising therefrom. The moving time is after 18:00
      from Monday to Friday, Saturday and Sunday the whole day. The customer of
      building D can move article by cargo-lifts in other time excepting moving
      out or moving a large amount of
articles.

            

    

    
      	
              3.2

            	
              Part
      B is responsible for all the loss in case of problems such as crash and
      damage during the course of moving.

            

    

    
      	
              3.3

            	
              Part
      B should notify Part A by person assigned by Part B and move out the
      articles with the out certificate.

            

    

    

    
      	
              4.

            	
              External
      Cleaning Management System

            

    

    
      	
              4.1

            	
              The
      property department decides one day of the first week of every month to
      hold the cleaning people meeting which all the cleaning people are
      supposed to attend. The customer assigns one person to attend the meeting
      for those who are off duty at the day and convey the spirit of the meeting
      to the cleaning people timely.

            

    

    
      	
              4.2

            	
              The
      two parties should communicate in time and deal with it properly in case
      of problem during of the routine.

            

    

    
      	
              4.3

            	
              Abide
      the management of the building and study the management system of the
      building.

            

    

    
      	
              4.4

            	
              Dress
      neatly and ensure no unpleasant smell of the clothing. It’s suggested to
      use perfume regularly.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              4.5

            	
              Showering
      and washing hair regularly, and ensure no unpleasant smell of the
      body.

            

    

    
      	
              4.6

            	
              Workplace
      is limited to the inside of the room of each customer. boiled water room
      should be used as the place to wash cleaning appliance merely. It’s not
      allowed to rest and stroll there.

            

    

    
      	
              4.7

            	
              Yield
      to the customer when walking in public area and being civilized and
      polite.

            

    

    
      	
              4.8

            	
              It’s
      not allowed to take guest elevator, go to the other floor and enter the
      room of the other customer
casualty.

            

    

    
      	
              4.9

            	
              Use
      the cleaning appliance and article properly. Economized
    water.

            

    

    
      	
              4.10

            	
              It’s
      not allowed to use the cleaning appliance and easy-consumable articles of
      the building.

            

    

    
      	
              4.11

            	
              It
      should be cleaned timely in case of pollution to
  cleanness.

            

    

    
      	
              4.12

            	
              The
      everyday small garbage should be packed by bags and sealed properly and
      put into the garbage can in the toilet for building A, B,C and put into
      the garbage can in the water room. It’s not allowed to drop garbage when
      dump it. It’s supposed to go through the east stair and put the garbage
      into the external garbage room for building A, B, C and carry by
      cargo-lifts or go through the west stair and put the garbage into the
      external garbage room for building
D.

            

    

    
      	
              4.13

            	
              The
      remains of meal should be sent to the garbage room immediately after being
      packed by bag and sealed properly. It’s not allowed to dump into the
      internal garbage can of the
building.

            

    

    
      	
              4.14

            	
              Washing
      the cleaning appliance in the mob sink, economize water and avoid water
      splash down to the floor.

            

    

    
      	
              4.15

            	
              It’s
      not allowed to wash appliance such as cups, canteen in the face basin. Put
      above mentioned appliance into the basin to wash them when it’s necessary.
      Clean the stage after washing.

            

    

    
      	
              4.16

            	
              Washing
      the mob in the mob sink. Washing mob in urinal is not
    allowed.

            

    

    
      	
              4.17

            	
              Dumping
      of tea-leaf: dump the tea-leaf into the tea box in the toilet for building
      A, B, C and tea box in the boiled water room for building
    D.

            

    

    
      	
              4.18

            	
              Breaching
      any one of the terms mention above will be fine RMB 20. The building has
      the right to forbid those who violate more than three times (including
      three times) or repeat the same
mistake.

            

    

    
      	
              4.19

            	
              Those
      who damage public facility and equipment or the other damage to the
      building caused by improper use of the cleaning appliance should
      compensate according to the actual
price.

            

    

    

    5. Other
Management Regulations

    

    5.1. All
those, who are permitted to go into the building, should wear neatly and
decently.

    5.2 When
Party B retrocedes the rented house, things left can be seen as deserted. Party
A has all the rights to handle them and expense arising from handling those
things should be on Party B.

    5.3 When
damages, floods, ripoff, etc. occur, Party B should inform Party A immediately
and assist Party A handle these accidents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.4  Part
B has no right to install more locks on the door or change the original lock,
except it gets Party A’s approval. Keys of every working area in the house
should have spare keys supervised by Party A. Damages caused by failing to give
spare keys to Party A should be on Party B’s responsibility and Party B have to
pay repair fees and make compensation.

    5.5 The
post station is located in the building C hall of the Yeqing Building, dealing
in internal and international letters, Expresses, and parcels, etc. business.
Party B may subscribe to the post station for newspapers and magazines. If you
have already subscribed to other organizations, please give the post officers
your copies of the orders.

    5.6
Repair Requirements: If Party B needs Repair service, please dial the phone
number of the engineering department: 6439 2966-8061 or 6439 2966-8062, or
contact the Floor Supervisor. Please try to tell in details of the trouble to
help the engineers make correct decision and solve the problems in
time.

    5.7 Part
B should not speak aloud, quarrel, argue in the office area and in working time
to help maintain the business in order.

    5.8. If
the salesman enters your company and disturbs your work, please notify Party A
in time:

    Security
Department: 6439 2966-8069  the property server: 6439
2966-8052/8.53

    5.9.
Please close the windows and doors after work to protect your property from
being destroyed by the weather changes. Party A has no responsibility for the
loss caused by your failure in closing the windows and doors.

    5.10.
Party A has no duty to open or lock doors for Party B. Please make sure that
Party B takes keys and FR cards to enter and come out the building.

    5.11.
Party B should inform Party A to wash the in-house carpets and pay for the
cleaning at the business center.

    5.12.
Party A can provide paid service:

    In-house
cleaning: RMB3/m2 construction area each month and please refer to the cleaning
agreement for more details:

    Cleaning
chemical fibre carpets: RMB4/m2 (construction area)

    House
renewing: RMB80/ m2 construction area for decorated or rebuilt
houses

                                   RMB70/
m2 construction area for not decorated or rebuilt houses

    5.13. To
install metal security doors to inside door or change the outer windows and
doors are not permitted.

    5.14.
Every floor of the building has wastebins. Party B should put the work or life
wastes into bags sealed properly to throw them into the wastebins. Please inform
Party A for big wastes to avoid polluting the air of each floor.

    5.15.
Party B should assist Party A during epidemic situations and execute according
to the Sanitation and anti-epidemic regulations.

    5.16.
Party B should install roll curtains, which are light green, on its own fees to
make sure the unified appearance of the building.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    6.
All-in-one Card Instruction

    
      	
              6.1

            	
              This
      is a kind of “RF card” having an integrated function of allowing people go
      in and out the building, having dinner and
  consuming.

            

    

    
      	
              6.2

            	
              This
      is a kind of pre-paid Card, which can not be overdrawed and should be
      pre-paid timely when its remaining money is not enough. When pre-paid for
      the first time, Party B should buy them by unit. Thereafter pre-paid
      should be made by the company or it’s owner, bringing the card and cash,
      going to the Business Center to pre-pay for it. After paid, please check
      the amount to the clerk’s face. Any mistake afterwards should be on the
      owner’s own responsibility.

            

    

    
      	
              6.3

            	
              To
      assure the accuracy of reporting the loss or eliminating the card, the
      provided name when opening the account should be the same with the owner’s
      ID card, or any reporting of it’s loss will not be
    accepted.

            

    

    
      	
              6.4

            	
              Please
      remember your card number. If lose the card, please report the loss or buy
      a new card from the Business Center. Any losing before reporting loss
      should be on the owner’s responsibility and please buy the new card after
      14:30 pm. of the same day.

            

    

    
      	
              6.5

            	
              This
      card can be used in “Coffee House” and the “Qingqing Xiaomei Noshery” of
      the building.

            

    

    
      	
              6.6

            	
              This
      card has the function of “door access”. Please take this card along with
      you. Any inconvenience caused by failing to take the card should be on the
      owner’s responsibility.

            

    

    
      	
              6.7

            	
              Please
      do not bend the card or make it contact the high
    temperature.

            

    

    
      	
              6.8

            	
              This
      card can only be used by the owner and should not transfer to the others,
      otherwise, the consequence should be on the owner’s
      responsibility.

            

    

    
      	
              6.9

            	
              The
      cost of this card is high, and the deposit of each card is 50 RMB. The
      deposit will not be refunded in case of loss or damage of the
      card.

            

    

    
      	
              6.10

            	
              Buying
      the RF Card or pre-paid it with Check, the check can be retroceded when
      withdraw the card. Buying the RF Card or pre-paid it with cash, the owner
      will get the cash back when withdraw the
card.

            

    

    

    Beijing
Yeshi Enterprise Group Co., Ltd

    Signature
of Representative and Company Seal _________

    2 June,
2009

    

    Manager
of Part B

    Signature
and Seal of Company Seal _________

    2 June,
2009

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