TENANCY AGREEMENT

AN AGREEMENT made on the

BETWEEN

TSAI KHO KONG (WN.KP. 640319-13-5405) of No. 92, KM 19, Jalan Datuk Mohd Musa, 94300
Kota Samarahan, Sarawak (hereinafter called “the Landlord”) of the one part;

AND

3517 RUBBER (MALAYSIA) SDN. BHD. (Company No. 202001016782 (1373102-T)), a

company incorporated and registered under the Companies Act, in Malaysia and having a business
address at Ground Floor, No. 2, Lot 1621, Quap Light Industrial, Jalan Quop, Batu 10, 94300 Kota
Samarahan, Sarawak (hereinafter called “the Tenant”) of the other part.

WHEREAS:-

(a) The Landlord is the registered proprietor of all that parcel of land together with a unit of 2-
Storey Semi-Detached Industrial Lot erected thereon and appurtenances thereof situate
at 10th Mile, Penrissen Road, Samarahan containing an area approximately 544.4 sq
metres, more or less, and described as Lot 1621 Block 43 Muara Tuang Land District
(hereinafter referred to as “the said Property”).

(b) The Tenant has inspected the said Property and is satisfied with the conditions therein.

(c) The Landlord is desirous of letting to the Tenant and the Tenant is desirous of taking a
tenancy of the Ground Floor of the said Property (hereinafter referred to as “the Demised
Premises”) on an “as is where is” basis subject to the conditions, restrictions, charges or
other registered interests (if any) stated in the issue document of title thereto and the terms
and conditions hereinafter contained.

NOW THEREFORE IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:-

1. THE TENANCY

The Landlord shall let and the Tenant shall take the Demised Premises on an “as is where is”
basis for a term of one (1) year commencing from the 1st day of August 2020 and ending
on the 31st day of July 2021 at the monthly rental of RINGGIT MALAYSIA ONE
THOUSAND ONLY (RM1,000.00) payable in advance on or before the 7th day of each
calendar month.

The monthly rental shall be payable in advance on or before the 7th day of each calendar
month.

2. THE TENANT HEREBY COVENANTS WITH THE LANDLORD AS FOLLOWS:-

(1) RENTAL PAYMENT

To pay to the Landlord the monthly rent at the time and in the manner aforesaid
without any deduction whatsoever.

(2) DEPOSIT

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 Upon the signing of this Tenancy Agreement, to deposit with the Landlord a sum of
RINGGIT MALAYSIA TWO THOUSAND ONLY (RM2,000.00) (hereinafter
referred to as “the Security Deposit”) which said deposit subject to the other
terms of this Agreement, shall be refunded to the Tenant free of interest at the
expiration of the term hereby granted PROVIDED that there shall not then be any
existing breach or non-observance or non-performance of the covenants on the
Tenant’s part herein contained AND PROVIDED FURTHER that in the event of the
Tenant failing to make good any damage caused to the demised premises, the
Landlord shall be at liberty to employ workmen to execute the same and for that
purpose be entitled to deduct all reasonable cost expended from the Security Deposit.
The said deposit shall not at any time be used to set off any rental of the term hereby
granted.

(3) UTILITY CHARGES

(i) To punctually pay for the electricity and water charges and the telephone
rentals and metered/trunk calls used in the Demised Premises during the
currency of this Tenancy and before the refund of the Deposit is made as
aforesaid, to produce the receipts of up to date payments of electricity, water
and telephone bills to the Landlord.
(ii) In the event that any of the electricity, water or telephone bills shall remain
unpaid for a continuous period of three (3) months or more, the Landlord,
without prejudice to the rights herein provided, shall be entitled to instruct the
relevant authorities to disconnect and cut off the electricity, water and/or
telephone line to the Demised Premises AND the Landlord shall not be
responsible for any loss or damage thereby incurred.
(iii) Not to alter the electrical system (electricity wiring) in the Demised Premises
or make any extension and/or additions thereto without the prior approval of
SESCO and any additional development charges payable for such approval
alterations extensions and/or addition shall be paid by the Tenant.
(iv) In the event of any illegal extension or tampering with Syarikat Sesco Berhad
(SESCO) electricity meter of the Demised Premises, the Tenant shall be solely
responsible and answerable to SESCO and shall pay whatever penalty or fines
imposed thereby. The Tenant shall indemnify and keep the Landlord
indemnified against and from all such penalty, fine or sanction, such indemnity
to include any compensation to the Landlord for any monies paid out to
authority concerned and/or other government bodies arising from such
tampering or other illegal activities.

(4) USE OF DEMISED PREMISES IN COMPLIANCE WITH LAWS

(i) To use the Demised Premises for the purpose of Industrial use (hereinafter
referred to as “the said business”) provided that the Tenant shall apply for
or cause application to be made to all the relevant authorities at its own costs
and expenses and obtain the necessary licences or approvals from all relevant
authorities for operating the said business and for using the Demised
Premises for carrying out the said business. In the event the Tenant requires
to use the Demised Premises for purpose other than the purpose
hereinbefore mentioned, the Tenant shall obtain the prior written consent
from the Landlord.
(ii) Not to use or cause or permit to be used in the Demised Premises or any part
thereof for gambling, drug activities and/or the carrying on of any activities
which is illegal, unlawful or immoral.

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 (iii) Not to store in or bring upon any part of the Demised Premises any arms
ammunition or unlawful goods or any explosive, toxic or combustible
substance or any substance of a dangerous nature or to permit any auction
sale to take place therein or thereat.
(iv) For the avoidance of doubt, the Landlord shall be entitled to immediately
terminate this tenancy and demand for the delivery of vacant possession of
the Demised Premises in the event of breach of any of these covenants

(5) SIGNBOARD

(i) Not to affix or exhibit upon any part of the exterior of the Demised Premises
any name plate, signboard, notices, logos, poster, advertisement or sign of
any size and description save and except the name of the Tenant’s business
and nature of the trade or business carried on thereof by the Tenant
provided that before affixation of the Tenant’s signboard, prior consent of the
Landlord is obtained.
(ii) The Tenant shall apply and obtain all necessary consents from the relevant
authorities for the affixation or exhibition of any name plate, business
signboard, notices or logos and shall ensure that the same are in compliance
with the standard set down by the relevant authorities.
(iii) The Tenant shall remove, at its own costs and expenses, any signboard
affixed on the Demised Premises upon expiration or sooner determination of
this tenancy.

(6) UPKEEP OF DEMISED PREMISES

(i) To keep the Demised Premises in a clean sanitary condition and to repair and
keep the Demised Premises including (but not limited to) the windows,
shutter doors, locks, latches, sanitary wares, pipes, floor tiles thereof and the
Landlord’s fixture and fitting therein in good and Tenantable repair.
(ii) During the term of this Tenancy Agreement, to do such repairs to the
Demised Premises as may be necessary (fair wear and tear excepted).
(iii) To make good any stoppage or damage to the drains, water pipes and
sanitary systems in the Demised Premises.

(7) NUISANCE

Not to do or permit or suffer anything to be done in or upon the Demised Premises,

which may be or become nuisance or annoyance to or in any way interfere with the
quiet enjoyment or comfort of the occupants of neighbouring premises.

(8) RENOVATION

Not to make or permit or suffer to be made any alteration or renovation to the

Demised Premises without the prior consent in writing of the Landlord and the
approval of the relevant competent authorities in respect of such alteration and/or
renovation PROVIDED ALWAYS THAT:-

(a) such renovation or alteration shall be done at the Tenant’s own costs and
expense;
(b) such renovation or alteration shall not alter the structural beams of the
Demised Premises;
(c) such renovation or alteration must complied with the Laws and By-Laws set
by the relevant governmental authorities;

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 (d) the Tenant having first obtained all and any licences permission or consent
from the relevant governmental or statutory authorities required for the said
alteration or renovation;
(e) the Tenant shall keep the Landlord indemnified against all proceedings,
claims, expenses and liabilities whatsoever which may be taken or made
against or incurred by the Landlord due to the Tenant's alteration or
renovation;
(f) unless so required by the Landlord, the Tenant shall not remove the electrical
wiring, ceiling, doors and other fixture in the Demised Premises upon
expiration or sooner determination of the Tenancy eventhough the same is
installed by the Tenant; and
(g) the Tenant shall not claim from the Landlord any renovation costs or other
improvement charges expended by the Tenant on the Demised Premises
upon expiration or sooner determination of this Tenancy.

(9) ASSIGNMENT OF SUB-LEASE WITHOUT CONSENT

Not to sub-let, assign or transfer this Tenancy or part with possession of the Demised
Premises or any part thereof without the Landlord’s consent in writing.

(10) LANDLORD’S RIGHTS TO VIEW DEMISED PREMISES

The Tenant shall permit the Landlord, his agents or workmen to enter into the
Demised Premises at all reasonable times of the day after giving twenty-four (24)
hours' prior notice to the Tenant to enter upon and examine the condition of the
Demised Premises and thereupon the Landlord or their authorised agents may serve
upon the Tenant notice in writing specifying any repair or works necessary to be done
which is caused by the Tenant's breach of the covenants in this Tenancy Agreement
and require the Tenant forthwith to execute the same and if the Tenant shall not
within fourteen (14) days after the service of such notice proceed diligently with the
execution of such repair or works therein to permit the Landlord, his workmen or
agents to enter upon the Demised Premises and execute such repairs or works and
the costs thereof shall be a debt due from the Tenant to the Landlord and shall be
recoverable by action.

(11) NO INFRINGEMENT OF LAW

Not to do or permit to be done on the said Demised Premises anything which will or
may infringe any of the laws, directives, rules, by-laws or regulations made by the
Government, the Municipal or Local Council or any other competent Authority
affecting the said Demised Premises.

(12) INDEMNITY

To indemnify and keep the Landlord indemnified against all loss, damage and
expenses howsoever caused to the Landlord and the Demised Premises or
neighbouring premises or to any adjacent properties or injury or death to any person,
where such loss damage expenses and/or injury is occasioned or caused by any act,
default or negligence on the part of the Tenant, its servants or agents, and against
any payment by the Landlord in respect of demands, actions, claim and/or
proceedings so arising therefrom.

(13) DELIVERY OF VACANT POSSESSION

At the determination of this Tenancy:-

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 (i) to yield up to the Landlord possession of the Demised Premises in clean and
good tenantable condition and in such good and substantial repair as shall be
in accordance with the covenants of the Tenant herein contained;
(ii) unless so require by the Landlord, the Tenant shall not remove from the
Demised Premises grills, lightings, plaster ceiling/ceiling boards, floor tiles,
wall tiles, water pipes, sanitary wares, electrical fittings;
(iii) the Tenant shall remove at their own costs and expenses signboards
belonging to the Tenant, the partition walls and other fixtures as may be
required by the Landlord to be removed and to make good any damage or
defacement occasioned to any part of the Demised Premises caused whether
by such removal or otherwise;
(iv) to clean and remove any debris, rubbish etc in the Demised Premises;
(v) to settle all the electricity and water bills for the Demised Premises; and
(vi) the Tenant shall not and are not entitled to be reimbursed or to be
compensated for the whole or any part of the costs and expenses incurred by
them in the Demised Premises.

3. THE LANDLORD HEREBY COVENANTS WITH THE TENANT AS FOLLOWS:-

(1) PAYMENT OF QUIT RENTS AND OTHER DUES

To bear and pay quit rents assessment rates and taxes levies by the Government and
other relevant authority in respect of the Demised Premises.

(2) QUIET AND PEACEFUL ENJOYMENT

That so long as the Tenant shall pay the rent hereby reserved and perform and
observe the several agreements and covenants on his part herein contained the
Tenant shall be entitled to peaceably hold and enjoy the Demised Premises during
the Tenancy Period without any interruption or disturbance by the Landlord or any
persons lawfully claiming through or under the Landlord.

(3) REFUND OF DEPOSITS

To refund to the Tenant the Security Deposit at the expiration of this Tenancy
provided that there shall not then be any existing breach or non-observance or non-
performance of the covenants on the Tenant’s part herein contained.

(4) SALE SUBJECT TO TENANCY

If the Landlord wishes to sell, assign, transfer or dispose of the Demised Premises,
such sale, assignment, transfer or disposal shall be SUBJECT to this Tenancy and the
Landlord shall assign all their rights, title, interest and obligations under this
Agreement to the buyer, assignee, transferee or acquirer of the Demised Premises.

(5) MAINTAIN AND REPAIR

To repair and keep the exterior of the Demised Premises and the roof in good and
substantial repair and to do such structural repairs to the Demised Premises as may
be necessary.

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4. THE PARTIES HERETO FURTHER AGREE AS FOLLOWS: -

(1) DEFAULT BY THE TENANT

If the rent hereby reserved or any part thereof shall be unpaid for fourteen (14)
days after becoming payable whether formally demanded or not or if any of the
covenants on the Tenant’s part herein contained shall not be performed or observed
or if the Tenant shall commit an act of bankruptcy or suffer the presentation of a
petition for liquidation or winding up of the Tenant as the case may be or enter into
any arrangement or composition for the benefit of its creditors or suffer any distress
or execution to be levied upon the Tenant’s goods, then in any of the said cases it
shall be lawful for the Landlord at any time thereafter to re-enter the Demised
Premises or any part thereof in the name of the whole and thereupon this tenancy
shall absolutely determine and the Security Deposit shall be forfeited to the Landlord
but without prejudice to the right of action of the Landlord in respect of any breach of
the Tenant's covenants herein contained.

Upon termination of the Tenancy, the Landlord shall be at liberty to re-enter the
Demised Premises and to evict the Tenant and all other occupiers of the Demised
Premises as well as to remove all the Tenant’s properties therefrom. In effecting re-
entry into the Demised Premises, the Landlord may break open any part of the
Demised Premises or to lock up the same. The Landlord shall not be held liable for
any loss or damage whatsoever caused to the Tenant’s properties as a result of the
Landlord exercising their rights of re-entry as aforesaid.

(2) PRE-DETERMINATION

That if the Tenant shall desire to determine this Tenancy before the expiration of the
term hereby granted and of such their desire shall give to the Landlord at least one
(1) month’s prior notice in writing and shall up to the time of such determination
pay the rent and reasonably perform and observe all the covenants on their part
herein contained then immediately on the expiration of the said one (1) months’
notice the term hereby granted shall thereupon cease and the said deposit of
RINGGIT MALAYSIA TWO THOUSAND ONLY (RM2,000.00) shall be forfeited
to the Tenant but without prejudice to the claim of either party against the other in
respect of any antecedent breach of the terms and conditions herein contained.

Subject to the Tenant’s complying with all the terms and conditions provided in this
Agreement, the Landlord shall not pre-determine this Tenancy prior to its expiry.

(3) SUSPENSION OF RENTAL AND DETERMINATION OF TENANCY

(i) Subject to Clause 4(3)(ii) hereinbelow provided, in case the Demised

Premises or any part thereof shall at any time during the term of this Tenancy
be destroyed or damaged by fire lightning riot tempest or other unforeseen
causes so as to become unfit for occupation and use then the Tenant shall
have an option either to terminate this Agreement or to continue with this
Tenancy if the Landlord rebuilding or reinstating the Demised Premise. In the
event of the Landlord deciding to rebuild or reinstate the Demised Premises
then the rent hereby reserved or a fair and just proportion thereof according
to the nature and extent of the damage sustained shall be suspended and
ceased to be payable until the Demised Premises shall have again been
rendered fit for occupation and use. In the event of the Landlord deciding
not to or unable to rebuild or reinstate the Demised Premises then the rent
hereby reserved shall cease to be payable and the term of Tenancy hereby
granted shall be deemed to be determined from the happening of such
destruction or damage as aforesaid and the Tenant shall peaceably and
quietly leave surrender and yield up to the Landlord possession of so much of

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 the Demised Premises as shall not have been destroyed or damaged
whereupon the Security Deposit shall be refunded to the Tenant in
accordance with the terms and conditions of this Agreement.
(ii) In the event the Demised Premises or any part thereof is destroyed or
damaged by fire due to the act or omission of the Tenant, the Tenant shall
reinstate and rebuild the Demised Premises at his own costs and expenses as
speedily as possible while continuing to pay the monthly rental until
completion of such reinstatement.

(4) RIGHT OF DISTRESS

At the expiration or sooner determination of this Tenancy if the Tenant fails or

refuses to yield up or deliver vacant possession of the Demised Premises, the
Landlord shall give fourteen (14) days notice in writing to the Tenant to deliver
vacant possession of the Demised Premises and if the Tenant fails to yield up or
deliver vacant possession of the Demised Premises within the said fourteen (14) days’
period, it shall be lawful for the Landlord to lock up the Demised Premises and
remove, sell or dispose off the Tenant’s goods and any other fixture or fittings of the
Tenant from the Demised Premises at their sole discretion without prior notice to the
Tenant and the Tenant shall bear all the costs of such removal or sale incurred by the
Landlord. The Landlord may apply the proceeds of sale, if any, of the same against
the costs and expenses incurred and/or arrears of rental and any payments due and
payable to the Landlord herein but without prejudice to the right of action of the
Landlord in respect of any antecedent breach of the Tenant's covenants herein
contained.

(5) EXEMPTION FROM LIABILITIES

The Landlord shall not be held liable in damages or otherwise to the Tenant, his
servants, agents, invitees, or licencees or any other person for any damage injury or
loss which may at any time during the Tenancy Period be caused to or suffered by
the Tenant his servants agents invitees or licencees or any of them or to any
Demised Premises or goods of the Tenant or such persons as aforesaid in or about
the Demised Premises or any part thereof occasioned by or arising from but not
limited to fire water storm tempest earthquake insect theft burglary or explosion riots
or civil commotion enemy action or by reason of the defective working stoppage theft
or breakage of any appliances pipes cables apparatus or air-conditioning plant or
other machinery in or used for the purpose of the Demised Premises or any part of
the Property or failure of supply of electricity or other supplies or in any way owing to
the overflow of water from any other part of the Demised Premises or the Property or
owing to the negligence of the Tenant or any of such other persons as aforesaid.

(6) TIME OF THE ESSENCE

Time wherever mentioned herein shall be of the essence of this Tenancy.

(7) NO WAIVER OR ACQUIESCENCE

No failure or delay on the part of the Landlord in exercising nor any omission to
exercise any right, power, privilege or remedy accruing to the Landlord upon any
default on the part of the Tenant shall impair any such right, power, privilege or
remedy or be construed as a waiver thereof or any acquiescence to such default; nor
shall any action by the Landlord in respect of any default or acquiescence in any such
default, affect or impair any right, power, privilege or remedy of the Landlord in
respect of any other or subsequent default.

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(8) NOTICES

Any notice under this Tenancy shall be in writing and any notice to the Tenant shall
be deemed to have been sufficiently served if left or sent by registered post
addressed to it at the Demised Premises or send to it by registered post at the
address herein before stated or the last known address of the Tenant and any notice
to the Landlord shall be deemed to be sufficiently served if left delivered or send by
registered post to the Landlord at the address herein before stated or the last known
address of the Landlord. If service is by registered post, the service shall be deemed
to have been made on the day of posting notwithstanding that the notice might be
returned unclaimed.

(9) IMPOSITION OF TAX ON PAYMENT

In the event that any Appropriate Authority imposes sales and service or any similar
tax upon any payments payable by the Tenant to the Landlord then such sales and
service or similar tax shall be paid by the Tenant in addition to any payments payable
under this Tenancy.

(10) NON-LOGMENT OF CAVEAT

The parties hereto agree that this Tenancy shall not create any interest in the
Demised Premises and the Tenant is not entitled to lodge caveat on the Demised
Premises or any part thereof under and by virtue of this Tenancy Agreement. Any
breach of this term shall be deemed to be a fundamental breach of the terms and
conditions of this Agreement.

(11) COSTS AND STAMP DUTY

The legal fee, stamping fees and other expenses respecting this Tenancy shall be
borne by the Landlord solely.

(12) MISCELLANEOUS

(a) In this Agreement words importing the masculine gender shall include the
feminine and neuter genders and words applicable to natural persons shall
include any body of persons firm or partnership corporate or unincorporated
and words in the singular shall include the plural and vice versa;
(b) Each of the parties hereto warrant to the other their power to enter into this
Agreement;
(c) If at any time during the continuance of this Agreement any provision, term,
condition, stipulation, covenant or undertaking of this Agreement is or
becomes illegal, void, invalid, prohibited or unenforceable in any respect the
same shall be ineffective to the extent of such illegality, voidness, invalidity,
prohibition or unenforceable without invalidating in any manner whatsoever
the remaining provisions hereof; and
(d) Headings in capital letters in this Agreement are for reference purposes only
and should not be incorporated into this agreement and shall not be deemed
to be any indication of the meaning of the provisions to which they relate.

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IN WITNESS WHEREOF the parties hereto have hereunto set their hands and/or seal the day and
year first above written.

SIGNED by ]
TSAI KHO KONG ]
(the Landlord) in the presence of:- ] …………………………………………

Name of Witness:
Occupation:
Address:

SIGNED by the ]
VOON KOK CHOON ]
(WN.KP. 770422-13-5759) ]
for and on behalf of ]
3517 RUBBER (MALAYSIA) SDN. BHD. ]
(Company No. 202001016782 (1373102-T)) ] …………………………………………
(the Tenant) in the presence of:- ] ALT DIRECTOR

Name of Witness:
Occupation:
Address:

Instrument prepared by:-

MESSRS. CHONG BROTHERS ADVOCATES
No. 68, Lot 131 (1st Floor), Jalan Petanak,
93100 Kuching Sarawak.
Tel: 082-243 742, 247 507, 414 195, 258 752 & 523 079
Fax: 082-425 799
E-mail: chongbrothersadv@gmail.com
[Ref: HYY-lau/20/113/TAGR/69]