Land Lease Contract
Lessor (hereinafter referred to as Party A):
Lessee (hereinafter referred to as Party B):
Party A leases the land use right legally owned by itself to Party B for operation use. According to the relevant laws and regulations of Nepal, and upon the consensus by both Party A and Party B, the following contractual terms are reached to be mutually followed by both parties.
Article 1 Basic Conditions of the Land
Area: (attached with valid land formalities)
Article 2 Lease Term
Rental period is years, from (MM/DD/YY) to (MM/DD/YY).
Article 3 Rent and Mode of Payment
The annual rent is Rupiah Rs and the rent is paid once every five years in the payment mode of cash or transfer. The first rent shall be paid off within days from the date of signing the contract. The second payment of rent shall be on the date of (MM/DD//YY). The payment amount floats upwards 20% of the total rent, ieRs
Article 4 Rights and Obligations of Both Parties
(I) Rights and Obligations of Party A
1. Party A has the right to collect rent on time according to the contract.
2. Party A guarantees that the land leased to Party B has a legitimate tenure relationship. In the event that the land leased to Party B has the ownership disputes (such as the rights claimed by the third party), Party A shall have the obligation to clear and remove the obstruction, etc.
3. During the contract period, Party A shall not recover the leased land without authorization.
4. During the contract period, Party A shall not increase the rent without authorization.
5. Party A shall ensure that the water, electricity and other basic facilities of this land are complete, and assist Party B in coordinating the related matters of water and electricity providers, and the costs of which shall be borne by Party B.
6. Party A shall transfer the leased land to Party B on the day of (MM/DD/YY).
7. During the contract period, Party A shall not be responsible for the safety accidents of Party B during the course of business.
(II) Rights and Obligations of Party B
1. Party B shall enjoy the right to independently operate, manage and use the leased land without Party A's interference. Party B shall be responsible for handling of the relevant procedures, and Party A shall offer the assistance, and the resulted costs shall be borne by the Party B.
2. In case of ownership dispute of the leased land, Party B has the right to request Party A to clear such dispute.
3. Party B has the rights and obligations to have the reasonable use and management of land in accordance with the land management laws and regulations.
4. Party B has the obligation to pay rent to Party A on time.
5. Upon expiration of the contract, if Party A's land continues to be leased out, Party B shall enjoy the preferential lease right under the same conditions.
6. In the event that Party A collects fees other than liquidated damages from Party B, Party B has the right to refuse to pay.
7. During the contract period, Party B shall be responsible for the safety of itself and its staff, and shall be responsible for fire prevention and anti-theft work.
Article 5 Party B shall conduct the reconstruction on its own for the unreasonable positions, and Party B shall, upon the opening of the water and electricity routes, install by Party B itself (including water and electricity meters).
Article 6 Party B shall be responsible for the costs of water and electricity facilities, water meter transformation and water and electricity use during the period of land lease.
Article 7 During the period of performance of the contract, if the buildings rented by Party B need to be demolished due to the governmental and municipal construction, Party B shall cooperate with the demolition, and Party A shall deduct the rent of the occupied part.
Article 8 During the period of performance of the contract, in the event of the occurrence of an irresistible natural disaster or the government leases or occupation of the leased factory building and its land, which leads to the inability to perform the contract normally, it shall not be deemed as the breach of contract. The compensation by the government and belonging to Party B's investment shall be owned by the Party B.
Article 9 Party B shall handle land use procedures in accordance with the laws and regulations of the State, and make reasonable use of land; otherwise Party B shall bear the legal responsibility arising therefrom.
Article 10 Upon the expiration of the lease, if Party B does not renew the lease, then the real estates and water and electricity routes invested by Party B shall be owned by Party A. The movable property shall be disposed by Party B on its own.
Article 12 During the execution of the contract, any party shall not arbitrarily alter or cancel the contract.
Article 13 Termination or Cancellation of Contract
(I) The contract shall be terminated upon the expiration of the contract performance period;
(II) The leased land is expropriated or occupied by the state, then both parties shall negotiate for the dissolution or the termination of the lease;
(III) In case of the force majeure, both parties shall negotiate for the dissolution or the termination of the lease;
(IV) The conditions stipulated in this contract or the laws and regulations of the contract dissolution or termination shall be established.
Article 14 Liability for Breach of Contract
(I) Party A and B shall not terminate the contract arbitrarily, such as Party B’s in-house business for special circumstances, then the contract shall be terminated by both parties upon negotiation, and such case shall not be deemed as a breach of contract.
(II) If Party A terminates the contract without reason, in addition to the compensation stipulated in the contract, it shall pay Party B the liquidated damage of 20% of the total rent.
(III) If Party B terminates the contract without reason, Party B shall pay off the rent within the contract period on time and pay the liquidated damages of 20% of the total rental amount.
(IV) If party B fails to enter timely due to Party A’s reasons, Party A shall pay Party B the liquidated damages of per thousand of the total rent per day; if the overdue has exceeded days, Party B has the right to terminate the contract, and Party A shall pay Party B the liquidated damages of percent of the total rent.
Article 15 For any matters not covered in the contract herein, supplementary agreement can be made by both parties upon the consensus. The supplemental agreement shall have the same effect as the contract.
Article 16 Dispute resolution method: If there is a dispute between both parties, it shall be settled through negotiation.
Article 17 Supplementary Agreement
Article 18 This contract shall come into force after being signed, sealed and notarized by both parties. The contract shall be made in triplicate, with one copy for both parties respectively, and one copy kept by the lawyer.
Contract Signing Time: Date (MM/DD/YY)
Contract Signing Location