Document:

flgt-ex1023_164.htm

 

Exhibit 10.23

COMMERCIAL LEASE

This Lease is made and entered into between E & E Plaza, LLC, herein called Lessor, and Fulgent Therapeutics, LLC. herein called Lessee. 

Lessee hereby offers to lease from Lessor the premises situated in the City of  Temple City County of Los Angeles, State of California, described as 4978 Santa Anita Ave. #101,#102,#103,#104,#105,#201,#202,#203,#204&,#205, Temple City, CA 91780 , with approximate 12,095 square feet upon the following TERMS and CONDITIONS:

	
1.
	
Term and Rent. Lessor demises the above premises for a term of Three (3) years, commencing on February 1, 2018 and terminating on January 31, 2021 or sooner as provided herein at the annual rental Two Hundred Sixty-eight Thousand Five Hundred Nine Dollars ( $268,509.00 ) payable in equal monthly installments of $22,375.75 in advance on the first day of each month for that month's rent during the term of this lease. All rental payments shall be made to E & E Plaza, LLC at the following address: Ideal Property at 625 East Main Street Alhambra CA 91801

	
2.
	
Late Charge. In the event Tenant is more than Five (5) days late in paying any installment of Rent due under this Lease, Tenant shall pay landlord a late charge equal to 5% of the delinquent Installment of rent.

	
3.
	
Security Deposit. Lessee shall deposit with Lessor on the signing of this lease the sum of Twenty Thousand Nine Hundred Fifty-Four Dollars and 37 Cents ( $20,954.37 ) which is transferred from existing lease agreement as security for the performance of Lessee's obligations under this lease, including without limitation the surrender of possession of the premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of Lessee, Lessee shall on demand deposit with Lessor the amount so applied so that Lessor shall have the full deposit on hand at all times during the term of this lease.

	
4.
	
Adjustment to the Rent. The monthly rent of $22,375.75 ($1.85/sq.ft.) specified herein shall be fixed and no adjustment in this three years lease.

	
5.
	
Use. Lessee shall use and occupy the premises for Lab and Pharmaceutical Business. The premises shall be used for no other purpose. Lessor represents that the premises may lawfully be used for such purpose.

	
6.
	
Care and Maintenance of Premises. Lessee acknowledges that the premises are generally in good order and repair, unless otherwise indicated herein. Lessee shall, at his own expenses and at all times, maintain the premises in good and safe condition, including plate glass, flooring, painting, interior walls, electrical wiring & lights, plumbing, HVAC system, front iron sliding gate and any other system or equipment exclusively used for that premises and shall surrender the same, at termination hereof, in as good condition as received, normal wear and tear excepted. Lessee shall be responsible for all repairs required, except the roof, exterior walls, and structural foundations, which shall be maintained and repaired by Lessor.

	
7.
	
Alterations. Lessee shall not, without first obtaining the written consent of Lessor, make any alterations, additions, or improvements, in, to or about the premises.

	
8.
	
Ordinances and Statutes. Lessee shall comply with all statutes, ordinances and requirements of all municipal, state and federal authorities now in force, or which may hereafter be in force, pertaining to the premises, occasioned by or affecting the use thereof by Lessee.

	
9.
	
Assignment and Subletting. Lessee shall not assign this lease or sublet any portion of the premises without prior written consent of the Lessor, which shall not be unreasonably withheld. Any such assignment or subletting without consent shall be void and Lessor, at his/her option, may terminate this lease.

	
10.
	
Utilities. All applications and connections for necessary utility services on the demised premises shall be made in the name of Lessee only, and Lessee shall be solely liable for utility charges as they become due, including but not limited, those for electricity, and telephone services. Lessor shall be responsible for water, trash pick-up (two trash bin with 2 times each per week) and gardening service.

1

 

	
11.
	
Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter upon the premises at reasonable times and upon reasonable notice, for the purpose of inspecting the same, and will permit Lessor at any time within sixty (60) days prior to the expiration of this lease, to place upon the premises any usual "To Let" or "For Lease" signs, and permit persons desiring to lease the same to inspect the premises thereafter.

	
12.
	
Possession. If Lessor is unable to deliver possession of the premises at the commencement hereof, Lessor shall not be liable for any damage caused thereby, nor shall this lease be void or voidable, but Lessee shall not be liable for any rent until possession is delivered. Lessee may terminate this lease if possession is not delivered within 30 days of the commencement of the term hereof.

	
13.
	
Indemnification of Lessor. Lessor shall not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on the demised premises or any part thereof, and Lessee agrees to hold Lessor harmless from any claims for damages, no matter how caused.

	
14.
	
Insurance. Lessee, at his expense, shall maintain plate glass and public liability insurance including bodily injury and property damage insuring Lessee and Lessor with minimum coverage as follows:

$ 1,000,000 for general liability insurance.

Lessee shall provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The Certificate shall provide for a ten-day written notice to Lessor in the event of Cancellation or material change of coverage. To the maximum extent permitted by insurance policies, which may be owned by Lessor or Lessee, Lessee and Lessor, for the benefit of each other, waive any and all rights of subrogation, which might otherwise exist.

Tenant shall indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the premises or from the conduct of its business or from any activity, work, or things which may be permitted or suffered by tenant in or about the premises including all damages, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising there from. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property or injury to person in or about the premises from any cause, and Tenant hereby waives all claims in respect thereof against Landlord.

Except for Landlord's willful or grossly negligent conduct, Tenant hereby agrees that Landlord shall not be liable for any injury to Tenant's business or loss of income there from or for damage to the goods, wares, merchandise, or other property of Tenant. Tenant's employees, invitees, customers or any other person in or about the premises: nor shall Landlord be liable for injury to the person of Tenant, Tenant's employees, agents, contractors, or invitees, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air-conditioning, or lighting fixtures, or from any other cause, weather such damage results from conditions arising upon the premises or upon other portions of the building in which the premises are a part, or from any other sources or places. Landlord shall not be liable to Tenant for any damages arising from any act or neglect of any other tenant, if any, of the building in which the premises are located.

	
15.
	
Eminent Domain. If the premises or any part thereof or any estate therein, or any other part of the building materially affecting Lessee's use of the premises, shall be taken by eminent domain, this lease shall terminate on the date when title vests pursuant to such taking. The rent, and any additional rent, shall be apportioned as of the termination date, and any rent paid for any period beyond that date shall be repaid to Lessee. Lessee shall not be entitled to any part of the award for such taking or any payment in lieu thereof, but Lessee may file a claim for any taking of fixtures and improvements owned by Lessee, and for moving expense.

	
16.
	
Destruction of Premises. In the event of a partial destruction of the premises during the term hereof, from any cause, Lessor shall forthwith repair the same, provided that such repairs can be made within sixty (60) days under existing governmental laws and regulations, but such partial destruction shall not terminate this lease, except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made, based upon the extent to which the making of such repairs shall interfere with the business of Lessee on the premises. If such repairs cannot be made within said sixty (60) days, Lessor, at his option, may make the same within a reasonable time, this lease continuing in effect with the rent proportionately abated as aforesaid, and in the event that Lessor shall not elect to make such repairs which cannot be made within sixty (60) days, this lease may be terminated at the option of either party. In the event that the building in which the demised premises may be situated is destroyed to an extent of not less than one-third of the replacement costs, thereof, Lessor may elect to terminate this lease whether the demised premises be injured or not. A total destruction of the building in which the premises may be situated shall terminate this lease.

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17
	
Lessor's Remedies on Default. If Lessee shall default in the payment when due of any installment of rent herein or in the performance of any other convenant or obligation of Lessee herein, Lessor shall forward written notice, as provided herein, of such default to Lessee, and failure of Lessee to cure such default within Three (3) days after the date of receipt of such notice with respect to a default in the payment of rent or within Thirty (30) days after the date of receipt of such notice with respect to any other default of Lessee (or, if such other default cannot be cured within such Thirty(30) day period, within such reasonable additional time as is necessary to cure such other default, provided that Lessee pursues cure diligently and in good faith), shall thereafter allow Lessor to pursue all remedies provided to Lessor pursuant to state law applicable.

	
18
	
Tax Increase. In the event there is any increase during any year of the term of this lease in the City, County or State real estate taxes over and above the amount of such taxes assessed for the tax year during which the term of this lease commences, whether because of increased rate or valuation, Lessee shall pay to Lessor upon presentation of paid tax bills an amount equal to 0% of the increase in taxes upon the year extending beyond the term of the lease, the obligation of Lessee shall be proportionate to the portion of the lease term included in such year. (N/A)

	
19
	
Common Area Expense. In the event the demised premises are situated in a shopping center or in commercial building in which there are common areas, Lessee agrees to pay his pro-rata share of maintenance, taxes, and insurance for the common area. (N/A)

	
20
	
Attorney's Fees. In case lawsuit should be brought for recovery of the premises, or for any sum due hereunder, or because of any act which may arise out of the possession of the premises, by either party, the prevailing party shall be entitled to all costs incurred in connection with such action, including a reasonable attorney's fee.

	
21
	
Notices. Any notice which either party may or is required to give, shall be given by mailing the same, postage prepaid, to Lessee at the premises, or Lessor at the address shown below, or at such other places as may be designated by the parties from time to time.

	
22
	
Heirs, Assigns, Successors. This lease is binding upon and insures to the benefit of the heirs, assigns and successors in interest to the parties.

	
23
	
Options to Renew. Provided that Lessee is not in default in the performance of this lease, Lessee shall have one option to renew the lease for additional Three (3) years commencing at the expiration of the initial lease term. All of the terms and conditions of the lease shall apply during the renewal term. The option shall be exercised by written notice given to Lessor not less than 60 days prior to the expiration of the initial lease term. If notice is not given in the manner provided herein within the time specified, this option shall expire.

	
24
	
Subordination. This lease is and shall be subordinated to all existing and future liens and encumbrances against the property.

	
25
	
Estoppels Certificate. Each party, within (10) days after notice from the other party, shall execute and deliver to the other party a certificate stating that this Lease is unmodified and in full force and effect, or in full force and effect as modified, and stating the modification. The certificate shall also state the amount of minimum monthly rent, the dates to which the rent has been paid in advance, and the amount of any security deposit or prepaid rent, if any, as well as acknowledging that there are not, to that party's knowledge, any uncured defaults on the part of the other party, or specifying such defaults, if any, which are claimed. Failure to deliver such a certificate within the ten (10) day period shall be conclusive upon the party failing to deliver the certificate to the benefit of the party requesting the certificate that this Lease is in full force and effect, that there are no uncured defaults hereunder, and has not been modified except as may be represented by the party requesting the certificate.

	
26
	
Covenants and conditions. Each provision of this lease performable by Tenant shall be deemed both a covenant and a condition.

	
27
	
Choice of Law. The parties hereto agree that the laws of the State of California shall govern this Lease.

	
28
	
Tenant Improvement. Lessee takes all existing units in it's as-is condition and no improvements required now.

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29
	
Miscellaneous. The detailed square footage and security deposit for each unit are as following:

 

	
#101 & #102
	
 
	
1350 sq.ft.
	
 
	
$1,998.00

	
#103
	
 
	
948 sq.ft.
	
 
	
$1,516.80

	
#104
	
 
	
1260 sq.ft.
	
 
	
$1,864.80

	
#105
	
 
	
1200 sq.ft.
	
 
	
$1,776.00

	
#201
	
 
	
1002 sq.ft.
	
 
	
$1,603.20

	
#202
	
 
	
729 sq.ft.
	
 
	
$911.25

	
#203
	
 
	
2500 sq.ft.
	
 
	
$3,996.00

	
#204
	
 
	
1118 sq.ft.
	
 
	
$2,873.28

	
#205
	
 
	
1988 sq.ft.
	
 
	
$4,415.04

	
Total
	
 
	
12095 sq.ft.
	
 
	
$20,954.37

 

Entire Agreement. The foregoing constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties.

Signed this 31st Day of January, 2018

 

	
By
	
 
	
/s/ James Xie
	
 
	
By
	
 
	
/s/ Marlene Xu

	
Lessee:
	
 
	
Fulgent Therapeutics, LLC
	
 
	
Lessor:
	
 
	
E&E Plaza, LLC

	
 
	
 
	
 
	
 
	
 

	
COO
	
 
	
MEMBER

	
Title:
	
 
	
 
	
Title:
	
 

 

4Exhibit 10.1

 

COSG Car APP
Promotion and Membership Management Collaboration  Agreement 

 

Party A: 佛山天元喜越汽车租赁有限公司
“Party A”

Contact Person: PENG, Huanting

Address: 佛山市三水區西南街道碧堤
8號雅怡居五座 104 商鋪 2

 

Party B: Foshan
Shen Fan Technology Limited 佛山申帆科技有限公司 “Party B”

Contact Person: YU, Guanwu

Address: 佛山市南海大沥镇桂江路兴美有色金属有限公司
1 号办公楼

 

Collectively referred to as the
“Parties” or individually as a “Party”.

 

Pursuant to the “Contract Law of
the People's Republic of China” and after friendly consultation between the two parties and in accordance with the principles
of equality, mutual benefit and good will, the parties to this agreement wish to collaborate in carrying out“COSG Car APP
Promotion and Membership Management” and establish a framework to govern their respective rights and obligations in relation
to the collaboration. This Agreement sets out the terms and conditions upon which the Parties have agreed to collaborate.

 

A. The Scope and Content of Collaboration

 

		1.	COSG Car APP (hereinafter referred to as “the APP”) is entirely owned by Party A. This
mobile app is specifically designed for the use by its own members. The right of interpretation of terms of the membership exclusive
right is belonged to Party A and Party A is obligated to provide the illustration and relevant information of the COSG Car APP.

		2.	Party B is entitled to promote the registration and sales of membership with the marketing materials.
It shall include but not limited to the use of any current resources, e.g. the member registration promotion on any internet platforms,
the sales of membership and its exclusive membership service.

		3.	Within the authorized scope by Party A, Party B shall provide the APP operation services, promote
the member registration and the sales of membership.

 

B. Rights and Obligation

 

		1.	Party B shall formulate its own business strategy and organize marketing team to provide the operation
service.

 

 

 

    	 	1	 

     

    

 

		2.	Party B shall ensure that it uses employees or agents in performing its obligations
of membership registration and sales promotion, under this Agreement who are suitably qualified and experienced or where a Party
is a natural person, he/she himself/herself is suitably qualified and experienced, or where a Party is a (including but not limited
to television, radio, major newspaper websites, offline publicity meetings, outdoor big names, LED electronic screens, etc.).

		3.	Party A shall provide Party B with support and convenience not limited to
business promotion, training materials, marketing support, and relevant operations for the COSG Car App promotion, in order for
Party B to achieve better and more effective promotion.

		4.	Party A shall be responsible for operating the product ecosystem and shall provide stable and high-quality membership and relevant
membership services. Party A shall guarantee an ‘after-app’ operating environment, provide high quality customer experience,
and improve the local service supporting system.

 

C.
Duration of Collaboration

 

The collaboration for the Business
shall commence on the date when this Agreement has been signed by both Parties (the “Commencement Date” on Date,
Month, 2018) and shall continue unless and until terminated on Date, Month, 2019.

 

D.
Invoicing and Payment

 

Within the collaboration
period under the authorized scope of Party A, Party A's payment to Party B is based on the number of COSG Car APP member registrations
according to below service charges.

 

Payment Item:

 

	 	1.	Promotion Fee

 

		a.	Successful registration of COSG Car APP member via various channels: ¥ 3/ member, tax excluded, (based on the number
of members retrieved at the back end of the APP).

		b.	Successful installation of COSG Car APP and member registration: ¥15/ member, tax excluded.

		c.	Target within the collaboration period: 100,000,000 registered COSG Car APP members.

 

	 	2.	Payment Settlement

 

	 	a.	Monthly payment: Party B shall issue an invoice to Party A at or around the end of each calendar month setting
out the amount of payment regarding 80% of the promotional fee and commission fee to be paid by Party A to Party B, the calculation
of which shall be in accordance with the Schedule. Party A shall settle payment of the invoiced amount by 15th of the
following month by way of bank transfer to the designated account of Party B.

 

 

 

    	 	2	 

     

    

 

	 	b.	The
remaining fee should be calculated to the quarterly performance of promotion:
	 	 	Remaining fee of quarterly promotion
performance – (The sum of quarterly promotion fee * Promotion performance rate) – settled sum of quarterly promotion
fee.
	 	 	 
	 	 	Fee Reference Schedule

   

	Revenue Promotion (Millions)	of	Promotion Performance Rate	Revenue Promotion (Million)	of	Operation Performance Rate
	Less than 30	 	80%	Less than 30	 	80%
	30 - 80	 	90%	30 - 80	 	90%
	80 - 100	 	100%	80 - 100	 	100%
	Above 100	 	110%	Above 100	 	110%

 

	Promotion Period	Revenue of Sales from Membership (Million)
	First Quarter	2 - 5
	Second Quarter	2.1	- 2.6
	Third Quarter	2.2	- 2.7
	Fourth Quarter	23	- 28

 

	 	3. 	 6% additional charges for the issue of VAT Invoice.

 

E.
Intellectual Property Ownership

 

Party A shall ensure that the trademarks
or materials and information provided within this project will not result in any legal disputes raised from the third party's infringement
of its patents, trademark rights or other intellectual property rights. Party A should bear the legal liability if such disputes
raised.

 

F.
Confidentiality

 

	 	(a)	The confidential information in this agreement refers to the
information that the unpublished technical information and raw material disclosed to other party during the project negotiation
and project development.

 

 

 

 

    	 	3	 

     

    

 

	 	(b)	Necessary Protective Measure against the Confidential Information

 

		(i)	Obligation to Take Necessary Protective Measures against the Confidential Information

The parties relate to this agreement
shall take the reasonable security measures to prevent the disclosure of confidential information in any way, including but not
limited to the establishment of a technical confidentiality system to train relevant personnel, to keep the other party’s
technical confidential information properly, etc.

		(ii)	Obligation to Prevent any Copying and Unauthorized Use of confidential information and intellectual
property at the outside of the project
	 	 	Except for proper replication
within the enterprise for the purposes of this project, neither party is able to duplicate the technical confidential information
or technical confidential information carrier in any way.

		(iii)	Comply with Party B's Technical Confidentiality System
	 	 	Party B formulates a related
technology confidentiality system based on its own corporate characteristics. This technical confidentiality system constitutes
part of this agreement. Party A and its participator in this project must comply the system.
	 	 	All materials used by Party
B for this project are adopted for this project only. Party A shall not adopt any methods to extract the project's materials for
other purpose which is in violation with this agreement.

 

	 	(c)	Statements, Warranties and Commitments
	 	 	Party A shall promise to use
the technical confidential information only for the purpose of completion of this project. Party A shall not use the confidential
information for any other purpose and does not disclose the confidential information and the information carrier to any third party
in any way.
	 	 	 
	 	(d)	Compensation for damages
	 	 	If economic losses are caused
to the any party due to the violation of the technical confidentiality commitment, the defaulting party shall bear all direct and
indirect losses arising therefrom.

 

 

 

    	 	4	 

     

    

 

G. Force Majeure

 

When any party fails to execute
this agreement due to force majeure, it shall notify the other party within three days after the occurrence of the event of force
majeure in order to reduce the damage that may be caused to the other party. After obtaining the force majeure certificate of the
relevant institution or mutual understanding and confirmation, it is allowed to postpone or amend this agreement, and depending
on the circumstances may be partially or completely free from liability for breach of this agreement.

 

H. Others

 

		(a)	The attachment forms part of this Agreement and shall have effect as if set out in full in the
body of this Agreement. Any reference to this Agreement includes the attachment.

		(b)	All documents signed by the parties (including meeting minutes, supplementary meetings, correspondence)
will be an integral part of this agreement.

		(c)	The contact address mentioned above is the contact information designated by both parties. If there
is a change in the address, telephone number, or fax number of the party, the party shall notify the other party in writing within
the same day of the change. Otherwise, it shall bear the corresponding responsibility.

		(d)	Party B is not allowed to transfer partial or all of its obligations under this agreement.

		(e)	If the parties are unable to resolve dispute arising from the execution of this agreement through
friendly negotiation, they can have lawsuit in the People's Court of Nanhai District.

 

I.
Agreement Effectiveness

 

		(a)	This agreement takes effect upon the date of signing and stamping of the authorized representatives
of party A and B.

		(b)	This agreement is made in two copies, with each party holding one of it.

 

 

 

 

    	 	5	 

     

    

 

 

	佛山天元喜越汽车租赁有限公司	 	佛山申帆科技有限公司
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Authorized representatives signature	 	Authorized representatives signature
	Signing location:	 	Signing location:
	Signing date:	 	Signing date:

 

 

 

 

 

 

 

 

 

    	 	6

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