Document:

Exhibit 10.20

 

Contract No.: [·]

 

Kunshan Fuchan Warehousing Services Co., Ltd.

 

AND

 

Yao Fang Information Technology (Shanghai) Co., Ltd.

 

 

PROPERTY LEASE CONTRACT

 

 

February 2016

 

 

Table of Contents

 

	
Part I: Basic   Business Terms
    	
3
    
	
 
    	
 
    
	
Part II:   General Terms of the Contract
    	
8
    
	
 
    	
 
    
	
Part III:   Delivery Procedure
    	
28
    

 

2

 

Property Lease Contract

 

The Property Lease Contract (hereinafter referred to as “the Contract”) was signed by the following parties on [February] [5], [2016]:

 

	
Lessor
    	
:
    	
Kunshan   Fuchan Warehousing Services Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Mailing Address
    	
:
    	
[26/F, Block B,   No. 391, Guiping Road, Xuhui District, Shanghai]
    
	
 
    	
 
    	
 
    
	
Tel
    	
:
    	
[021-24099566]
    
	
 
    	
 
    	
 
    
	
Fax
    	
:
    	
[021-54179635]
    
	
 
    	
 
    	
 
    
	
Lessee
    	
:
    	
Yao Fang Information   Technology (Shanghai) Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Mailing Address
    	
:
    	
[Building 10,   No. 115, Lane 572, Bibo Road, Pudong New Area, Shanghai]
    
	
 
    	
 
    	
 
    
	
Tel
    	
:
    	
[021-20536666]
    

 

Pursuant to the Contract Law of the People’s Republic of China and other applicable laws and regulations, the lessor and the lessee reached this agreement through friendly consultation:

 

Part I: Basic Business Terms

 

The Lessor is willing to lease the property under the Contract to the Lessee, and the Lessee is willing to Rental the property under the Contract provided by the Lessor in accordance with the terms and conditions stipulated in the Contract.

 

	
1. Property:
    	
 
    	
Located on the   west of Liming Road and the south of Fengxing Road of Huaqiao Town, Kunshan,   Jiangsu Province, China. Specially, it is situated at the east side of   Building 3 at No. 88, Liming Road (hereinafter referred to as “Park Area” or “Project”)   with a total area of 16,369.03 square meters (“Property”).   Please refer to the general layout plan of the Logistics Park and the plan of   the Property in Annex I for details.
    
	
 
    	
 
    	
 
    
	
2.   Rental and Property & Facility Management Fees:
    	
 
    	
The basic   management fee for the first year of the First Lease Term (as defined in   Article 3 below) is RMB 0.1 per square meter per day (tax included). The   second year’s Rental and Property & Facility Management Fee is RMB   1.03 per square meter per day (tax included), of which RMB 0.515 per square   meter per day is the Rental, and RMB 0.515 per square meter per day is the   Property & Facility Management Fee. From the third year to the due   date (as defined in Article 3 below), the Rental and property   facility &management fees are increased by 3% on the basis of the   preceding year.
    

 

3

 

	
 
    	
 
    	
 
    	
 
    	
Duration
    	
 
    	
Standards   for Rental/basic
   management fees/Property &
   Facility Management Fees
    
	
 
    	
 
    	
The   first lease term
    	
 
    	
March 1,   2016 ~ February 28, 2017

 

(Rental-free)
    	
 
    	
Basic   management fee

 

RMB 0.1/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   second lease term
    	
 
    	
March 1,   2017 ~ February 28, 2018
    	
 
    	
Rental

 

RMB 0.515/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.515/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   third lease term
    	
 
    	
March 1,   2018 ~ February 28, 2019
    	
 
    	
Rental

 

RMB 0.5305/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.5305/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   fourth lease term
    	
 
    	
March 1,   2019 ~ February 29, 2020
    	
 
    	
Rental

 

RMB 0.5464/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.5464/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   fifth lease term
    	
 
    	
March 1,   2020 ~ February 28, 2021
    	
 
    	
Rental

 

RMB 0.5628/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.5628/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   sixth lease term
    	
 
    	
March 1,   2021 ~ February 28, 2022
    	
 
    	
Rental

 

RMB 0.5796/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.5796/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   seventh lease term
    	
 
    	
March 1,   2022 ~ February 28, 2023
    	
 
    	
Rental

 

RMB 0.597/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.597/ square   meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   eighth lease term
    	
 
    	
March 1,   2023 ~ February 29, 2024
    	
 
    	
Rental

 

RMB 0.6149/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.6149/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   ninth lease term
    	
 
    	
March 1,   2024 ~ February 28, 2025
    	
 
    	
Rental

 

RMB 0.6334/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.6334/   square meter / day
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   tenth lease term
    	
 
    	
March 1,   2025 ~ February 28, 2026
    	
 
    	
Rental

 

RMB 0.6524/   square meter / day

 

Property &   Facility Management Fee

 

RMB 0.6524/   square meter / day
    

 

4

 

	
 
    	
 
    	
Daily Rental and   Property & Facility Management Fee = Rental and Property &   Facility Management Fee Standard × Property Area

 

Monthly Rental and   Property Facility Management Fee = Daily Rental and Property Facility   Management Fee × Actual days of use of the property in the month

 

Note: The unit   price per square meter per day is calculated according to the actual amount   without rounding. Round when calculate the monthly actual payment and round   it to the yuan level.
    
	
 
    	
 
    	
 
    
	
3.   Lease Term:
    	
 
    	
The actual   Delivery Date of the Property is [March] [1], [2016].
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The First Lease   Term is ten (10) years from   the date of delivery until the expiry of the maturity date (the “First Lease Term”). The deadline for the   First Lease Term is February 28, 2026   (“Expiration Date”). After the   expiration of the First Lease Term, the Lessee may renew the lease for [1] time   in accordance with the provision of the Contract, and the lease extension   period is [5] years (“Renewal Lease Period”).   The commercial conditions for the renewal period are detailed in the   provision of Article 4.2 of Part II of the Contract.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Delivery Date of   the Property (“Delivery Date”):
    	
 
    	
March 1, 2016
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The starting date   of the Rental (“Lease Commencement Date”):
    	
 
    	
March 1, 2017
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Due date   (“Maturity Date”):
    	
 
    	
February 28,   2026
    

 

5

 

	
4. Margin:
    	
 
    	
The amount of the   margin paid by the Lessee to the Lessor shall be calculated based on the sum   of the second-year Rental and the property management fee (RMB 1.03 /square   meter/day) for [three] months, i.e., RMB 1,538,484.21.
    
	
 
    	
 
    	
 
    
	
5.   Day, month, quarter and year
    	
 
    	
Except otherwise   stipulated in the Contract, the day, month, quarter and year referred to in   the Contract are calendar day, calendar month, calendar quarter and calendar   year respectively.
    
	
 
    	
 
    	
 
    
	
6. Annex:
    	
 
    	
Annex I: Basic   Information of the Property

 

·                      General Layout Plan of the Logistics Park

 

·                      Property Plan

 

·                      State-owned Land Use Right Certificate Of Land Parcel Where The   Property Is Located

 

·                      Ownership Certificate of the Property

 

·                      Construction Specifications and Facilities of the Property

 

·                      List of Rebuilding

 

Annex II: Notice   of Admission

 

Annex III:   Property Delivery Letter

 

Annex IV: Letter   of Mortgage Information
    

 

	
7.   Miscellaneous
    
	
 
    	
 
    
	
7.1
    	
In case that there   is any conflict between the Part I of the Contract - The Basic Business   Terms and Part II - General Terms of the Contract, the provisions of the   former shall prevail.
    
	
 
    	
 
    
	
7.2
    	
Part I,   Part II, Part III and the annexes of the Contract constitute the   entire Contract between the Lessor and the Lessee, and replace any previous   understandings, agreements or representations between both parties regarding   the subject matter hereof .
    
	
 
    	
 
    
	
7.3
    	
Any terms of the   Contract are enforceable and independent of each other, and their   effectiveness is not affected by the invalidation of any other terms. In the   event that there are any terms that are invalid but become valid after   deleting partial contents, such terms shall still apply after making   necessary amendments.
    

 

6

 

	
7.4
    	
Failure by any   party to exercise or delay the exercise of any right, power or privilege   under the Contract or its annexes shall not be deemed a waiver of that right,   power or privilege; nor shall any exercise of that right, power or privilege   independently or in part impede the further exercise of that right, power or   privilege in the future.
    
	
 
    	
 
    
	
7.5
    	
The Contract takes   legal effect after the parties sign it. The Contract is made in four   (4) copies, with each party holding two of them which shall have the   same legal force and effect.
    
	
 
    	
 
    
	
7.6
    	
To fully and   effectively perform the Contract, each of the Lessor and the Lessee hereby   make the representations and warranties as follows (hereinafter referred to   as “Representations and Warranties”):
    
	
 
    	
 
    
	
 
    	
(1)
    	
It has full   rights, powers and authority to sign the Contract and will obtain all   necessary government and company approvals for the performance of the   Contract;
    
	
 
    	
 
    	
 
    
	
 
    	
(2)
    	
The Contract   constitutes its legal, effective and binding obligations, which can be   enforced in accordance with the terms of the Contract;
    
	
 
    	
 
    	
 
    
	
 
    	
(3)
    	
It currently does   not have any involved or ongoing litigation, arbitration or administrative   procedures or those threatened to be involved exerting material adverse   effects on its assets or the assets under the Contract, or on the ability of   signing, completing and performing the Contract or performing the obligations   under the Contract.
    

 

7

 

Part II: General Terms of the Contract

 

1.                        Property Lease

 

With the premise that the Lessee fulfills its obligations under the Contract, the Lessor agrees that the Property will be possessed and used by the Lessee in accordance with the provisions of the Contract, and the Lessee agrees to possess and use the Property from the Lessor within the lease period specified in the Contract and pay Rental and property management fees.

 

2.                        Delivery of the Property

 

2.1                 The Lessor and the Lessee shall send representatives to examine the site on the Delivery Date of the Property and sign the Property Delivery Letter of Annex III after passing the acceptance. The completion of these steps means that the Lessee has fully understood and checked the actual conditions of the Property, facilities and equipment, and acknowledged that the Property is delivered “as is”. In case that there are defects in the delivered property, both parties shall list the defects, and the Lessor shall rectify and complete the acceptance within the time agreed upon by both parties. In the event that the rectification is unable to be completed on time and both parties have jointly confirmed the substantial impact on the use by the Lessee, the Lessee has the right to entrust a third party to rectify the defects after confirmation. The reasonable costs incurred therefrom shall be borne by the Lessor, but the Lessee shall provide the Lessor with the corresponding Contract and relevant vouchers. If the Lessee fails to go through the acceptance and handover procedures of the Property and sign the Property Delivery Letter at the location designated by Lessor before the date of delivery of the Property agreed in the Contract, it shall be deemed that the Lessor has fulfilled all obligations for the qualified delivery of the Property to the Lessee. The Lessor has the right to require the Lessee to pay the Rental, property management fee, other expenses and the compensation (if any) prescribed by the Contract that shall be paid by the Lessee since the Property is deemed to have been delivered.

 

With the prior written consent of the Lessor, the Lessee may, after the date of delivery, make necessary decoration, and move in furniture and equipment support for the Property in accordance with the needs of future use. If the Lessee causes any damage to the Property (including all ancillary equipment and facilities at the time of delivery of the Property) during the decoration and moving in and installation of any furniture and equipment, the Lessee shall immediately inform the Lessor of the damage and take any necessary remedial measures that will restore the damaged facilities to their original condition at the time of delivery at its own cost. For the avoidance of doubt, unless the Lessor’s prior written consent is obtained, the decoration, furniture and equipment acquired and installed by the Lessee for the Property shall be restored and removed before it returns the Property to the Lessor; and the Property shall be restored to the original condition at the time of delivery and returned to the Lessor at the cost of the Lessee.

 

8

 

3.                        Area and Use

 

3.1                 The floor area of the Property to be used by the Lessee is 16,369.03 square meters (“Area for Use”). The Lessee can also enjoy equal access to the surrounding public access corridors and venues inside the enclosure wall of the park with other lessees (if any) of the park.

 

3.2                 The Property shall only be used for [the storage, distribution, and loading and unloading of items belonging to Category C (2) of the storage category specified in the Code for Fire Protection Design of Buildings jointly promulgated by the Ministry of Construction of the People’s Republic of China and the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China, as well as vehicle parking]. The Lessee shall have an independent judgment on whether the Property is suitable for its business before signing the Contract. Except as otherwise agreed in the Contract, The Lessor does not guarantee that the Property is suitable for the specific purpose specified by the Lessee, nor may it be required to make any rebuilding to the Property to satisfy any licensing requirements, if any. The Lessee shall guarantee that its use of the Property does not violate the provisions of relevant laws and regulations and industry standards. The Lessee shall comply with and keep its business license valid at all times. The Lessee shall not engage in any auction within the Property (such as: activities of clearance or sale at a reduced price) or issue notice of the aforementioned activities. The Lessee shall use the Property in a prudent, safe and appropriate manner. In addition, the Lessee shall not store toxic goods and dangerous goods such as flammable and explosive materials, and shall not engage in any activity that may adversely affect the value of the Property and land use rights, may make the floor or structure of the Property overloaded or may damage the Property. The Lessor shall not engage in acts that may cause harm or damage to others when using the Property. Without the prior written consent of the Lessor, the Lessee is prohibited from storing items outside the Property, including but not limited to parked vehicles in non-parking areas. The Lessee shall comply with the laws, orders, judgments, ordinances, regulations, codes, instructions, permits, licenses, provisions and restrictions relating to the use and possession of the Property, including the fire protection code (collectively called “statutory requirements”). In case the Property needs renovating or decorating and other projects according to statutory requirements (including but not limited to fire protection regulations that the Lessee shall comply with for the use of the Property) due to the Lessee’s reasons (including but not limited to the use of the Property, the manner in which the business operates, the nature of the Lessee’s use or storage of the goods or other properties, or due to the Lessee’s other requirements), the costs incurred therefrom shall be borne by the Lessee and such rebuilding and renovation must obtain the Lessor’s prior written consent. The Lessee shall not engage in or allow anyone else to engage in any act that may result in invalidation of the Lessee’s or Lessor’s insurance or increased insurance risk. If, due to the Lessee’s reason, the Lessor’s insurance costs increase, the Lessee shall assume full responsibility and compensate the Lessor for all losses. In the event that the Lessee has occupied the Property in full or in part before the Delivery Date, the Lessee shall comply with all of its obligations under the Contract. The Lessee shall bear the risk of damage or loss of any goods, products or other inventories stored in the Property by itself.

 

3.3                 The Lessee promises to the Lessor that the Property shall only be used for the purposes specified in Article 3.2 of the Contract. During the First Lease Term and lease renewal period, the agreed purposes stated above shall not be changed before the Lessor’s prior written consent and approval by the relevant government authority are obtained (if necessary).

 

9

 

4.                        Lease Period, Lease Renewal, and Rental-free Period

 

4.1                 The lease period for the First Lease Term is ten (10) years, and will be calculated from the actual Delivery Date. The deadline is February 28, 2026. Subject to compliance with the terms of the Contract, the Lessee has the right to possess and/or use the Property from the date of delivery to the date of maturity.

 

4.2                 If the Lessee intends to continue to occupy the Property after the expiration of the First Lease Term, it has the right to extend the lease term of the Contract for [1] time no later than [six] months prior to the expiration of the First Lease Term for the lease renewal of 5 years. Both parties agree that, except when both the Lessor and the Lessee agree to adjust the lease area, the Lessee shall not reduce the use area of the Property while renewing the lease, and the Rental and property management fee for the Property during the renewal period shall increase by [5.5%] % for each year (for the purpose of this article, 365 days from the first day of the renewal term is one year) from the previous year since the date of the renewal of the lease, and only the Rental and property management fee adjustments during the renewal period caused by the land-related or property-related adjustments to taxation that occurred in the lease period as stipulated in Article 9.2 are not included in the increase. If the Lessee does not submit a renewal request in writing within the time limit stipulated in Article 4.2, or the Lessee does not reach an agreement with Lessor regarding the amount and area specified in Article 4.2 within [four] months prior to the expiry of the First Lease Term after proposing the renewal request and fails to sign a legally binding written document, the Lessor has the right to refuse the Lessee’s request to exercise the renewal of the right, which shall not to be deem as a violation of the Contract.

 

4.3                 In case that the Lessee does not exercise the right to renew in accordance with the provisions under Article 4.2 stated above or exercises the right to renew but does not comply with the provisions of Article 4.2, the Lessor shall then have the right to:

 

(1)                   Issue advertisements about the Property that may be provided to any third party and post such advertisements in the park and its premises or the surfaces of these places under the premise of not affecting the use of the Property by the Lessee; and

 

(2)                   Notify the Lessee in writing in advance of reasonable time. Without affecting the normal operations of the lessee, the Lessor may bring along with any prospective lessee or related person of the Property to visit the Property before the expiration of the First Lease Term or within [six] months before the termination in advance, and the Lessee shall cooperate with it.

 

4.4                 The Lessor agrees to provide the Lessee with a [12]-month Rental free period cumulatively during the First Lease Term, commencing on the Delivery Date, during which time, the Lessee is not required to any Rental or Property & Facility Management Fees, but shall pay the basic management fees at RMB [0.10] per square meter per day. For avoidance of any doubt, both parties agree that, if the Lessee fails to carry out the inspection and handover formalities at the place designated by the Lessor, the foregoing Rental-free period will not be adjusted and shall still start on the Delivery Date specified herein. If this Contract is terminated by or for any reason attributable to the Lessee during the First Lease Term, then, without any prejudice to other rights of the Lessor hereunder, the Lessee shall be deemed to have no Rental-free period ab initio, and shall forthwith make up and pay to the Lessor all the Rental and Property & Facility Management Fees for the period between the effective date of this Contract and the date of early termination of this Contract (minus the basic management fees already paid by the Lessee).

 

10

 

5.                        Rental and Property & Facility Management Fees

 

5.1                 The Lessee shall pay the Rental and Property & Facility Management Fees in the amount specified in the Basic Business Terms.

 

5.2                 The Rental and Property & Facility Management Fees shall be paid on the monthly basis. The Lessor shall provide the invoice indicating the corresponding amount before the 5th day of each month, which shall be paid by the Lessee within 5 working days after receiving the invoice without any deduction or offset (except for the deduction or offset expressly set out herein or agreed by the two parties in writing). In case the days of the last month when the First Lease Term expires or is terminated are insufficient for a full month, the Rental and Property & Facility Management Fees shall be settled proportionally, that is, the Rental and Property & Facility Management Fees of such period shall be the product of the number of actual days of lease of the month divided by the total number of days of that month and multiplied by the Rental and Property & Facility Management Fees of that month. The Rental and Property & Facility Management Fees of the renewed lease term (if any) shall be paid in the same manner as those of the First Lease Term.

 

5.3                 The obligations of the Lessee to pay to the Lessor the Rental, Property & Facility Management Fees and other amount hereunder shall be independent of the obligations of the Lessor hereunder. Unless otherwise expressly provided herein, at no time shall the Lessee have any right to cancel, deduct or offset any Rental, Property & Facility Management Fees or any other amount due hereunder. In case of delay of the Lessee to pay to the Lessor the Rental, Property & Facility Management Fees or any other amount for more than 5 days, the Lessee shall pay a late fee to the Lessor at the daily rate of 0.5% of the overdue amount for the period from the day when such amount becomes due (including) to the day when all such amounts are satisfied by the Lessee. The collection by the Lessor of such late fee shall not preclude the Lessor from exercise other rights and remedies available to it at law or under this Contract. If the Margin is insufficient to pay the foregoing amounts, obligations and liabilities, the Lessee shall remain liable for payment until all the outstanding amounts are paid off. In case of delay of the Lessee to pay the foregoing amounts (including the late fee) for more than one month, the Lessor may terminate this Contract.

 

5.4                 The Rental shall be deposited into the following bank account designated by the Lessor in RMB by T/T or bank transfer:

 

Deposit Bank: [Huaqiao Sub-branch of BOC]

 

Account Name: [Kunshan Fuchan Warehousing Services Co., Ltd.]

 

Account No.: [************]

 

Address of the Deposit Bank: [No. 382, Huaxi Road, Huaqiao Town]

 

11

 

6.                        Margin

 

6.1                 The Lessee shall pay the Margin the Lessor [10] days prior to the actual Delivery Date, the amount of which shall be equal to the [3]-month Rental and property management fees hereunder of the second year of lease, i.e. RMB [1,538,484.21], and upon the receipt of which, the Lessor shall issue a receipt thereof to the Lessee. Unless the Lessor and the Lessee otherwise agrees in writing as regards the amount and Delivery Date of the Margin, if the Lessee fails to pay the Margin as per the provision of this Article 6.1 on its term and amount, the Lessor may extend the Delivery Date accordingly without postponing the commencement date, and the Lessee shall, for each day of delay of payment of the Margin, pay liquidated damages equal to the aggregation of the renal and Property & Facility Management Fees of such day. If such delay exceeds thirty (30) days or more, the Lessor may terminate this Contract.

 

6.2                 The Margin is not prepaid Rental or Property & Facility Management Fees, or any damages payable by the Lessee to the Lessor in case of any default hereunder by the Lessee. In case of any breach or nonperformance of or noncompliance with any its obligations or liabilities under this Contract or any applicable laws, subject to a notice sent by the Lessor to the Lessee in a reasonable time in advance, the Lessor may deduct all or part of the Margin to pay any outstanding and mature amount, late fee, liquidated damages payable by the Lessee, or other obligations supposed to be assumed by the Lessee, or any damage (personal or otherwise), expense or debts thus incurred by the Lessor. The foregoing provisions on Margin shall not affect any other rights or remedies available to the Lessor at law or under this Contract.

 

6.3                 After the Lessor make the deduction from the Margin according to the above Article 6.2, the Lessee shall, within [3] days after receiving a writing notice from the Lessor, promptly make up the difference thus caused so that the Margin can be restored to its original amount. The Margin will not bear interest during the period when it is held by the Lessor. After the Lessee fulfills all its obligations and liabilities hereunder, the Lessor shall refund to the Lessee all or the post-deduction balance (if any) of the Margin, without any interest thereon.

 

7.                        Management Fees

 

7.1                 The Lessee shall pay to the Lessor the basic management fees (at the rate of RMB [0.10] per square meter per day) for the period between the Delivery Date and the Lease Commencement Date [10] days prior to the Delivery Date. The basic management beyond the Rental-free period has been included in the Rental and Property & Facility Management Fees.

 

7.2                 The Lessee shall pay the Property & Facility Management Fees of each term as per the schedule and amount set out herein. For avoidance of any doubt, the management fee under this agreement refers to the basic costs related to the facilities, equipment and related services provided by the Lessor for the lessee (including provision of such facilities and equipment services as water supply systems, power supply systems, fire protection systems and vehicle parking services, and other services agreed herein, such as cleaning and security).

 

12

 

8.                        Utilities

 

The Lessee shall pay the costs of water, electric power (including power capacity expansion), heat, telecommunication, garbage (other than the garbage generated in the office) collection and other similar utilities expenses related to the Property, as well as any taxes, fines, additional charges and other expenses payable to the governmental organs or public utilities providers that the Lessee shall hold accountable for. The Lessee also shall bear any relevant taxes or duties that the Lessor incurs for paying such utilities expenses on behalf. Any loss from electricity expense allocation and the cost of public lighting in the Park shall be apportioned according to the actual consumption of the Lessee. The Lessee shall pay such expenses in line with the prescribed payment terms within [3] days after receiving the notice from the Lessor. The Lessee shall pay the utilities expenses pursuant to the Weighted Apportionment of Utilities Expenses in Logistics Park and the receipt affixed with financial seal. The interruption or service suspension of the utilities shall neither terminate this Contract, nor decrease the rental and Property & Facility Management Fees. The Lessee agrees that, the water supply or drainage system shall be used only for the normal washing or cleaning of the Property. Where the Lessor pays the costs of water, electricity or gas on behalf, the Lessee shall pay the costs within 10 working days after receiving the related vouchers from the Lessor.

 

9.                        Taxes

 

9.1                 The Lessee shall be responsible for paying the taxes and government fee (collectively referred to as the “taxes”) related to the Property and the use right of the land where the Property locates, calculated from the Delivery Date to the Expiration Date; however, all taxes or fees related to any properties or attachments used or placed in the Property, whether such tax or fee is collected from the Lessor or against the storage of goods, shall be at the expense of the Lessee.

 

9.2                 The rental and Property & facility management fees stipulated in Part I:”Basic Business Terms” herein only include the taxes listed as below, in case that the government or relevant department imposes any new tax or raise the taxes related to the land or the Property, or starts to impose any tax which is suspended or not imposed actually but has been stipulated in the laws related to the land or the Property, and the Lessor shall pay the additional taxes or fees thereby, the Lessee shall agree the Lessor to adjust the rental or Property & facility management fees accordingly. The current taxes imposed on the Lessor include:

 

	
Item of taxes
    	
 
    	
Tariff
    
	
 
    	
 
    	
 
    
	
Land use tax
    	
 
    	
Land area *RMB 4   Yuan/Square Meter/Year
    
	
 
    	
 
    	
 
    
	
Rental,   Property & facility management fees and basic management fee

 

Business tax and   surcharge
    	
 
    	
5.50% of invoice value
    
	
 
    	
 
    	
 
    
	
Housing Tax
    	
 
    	
Rental *12%
    

 

13

 

10.                 Insurance

 

10.1          The Lessor shall buy the Property All Risks insurance against the Property on the basis of replacement value, and the insurance policy shall remain in full and effective from the Delivery Date to the Expiration Date and during the renewal term (if any). The Lessor can cover the Property-related insurances in its comprehensive policy.

 

10.2          The Lessee shall buy, at its own expense, the following insurances and keep it full and effective from the Delivery Date to the Expiration Date and during the renewal term (if any): the property all insurance (the insured shall include all properties, goods and installations in the Property, and on the basis of replacement value) [Note: determine the deductibles and indemnity limit], work injury insurance (the indemnity limit per person shall not be less than the minimum stipulated by laws), and public liability insurance. The public liability insurance policy shall list the Lessor as an additional insured (with the agreement of insurer), upon the basis of claims, and the maximum indemnity amount for each accident shall not be less than RMB 8,000,000. Where the Lessee insures or not, it shall assume the indemnity liability for all properties, goods, and installations in the Property, any duty-related personal injury of workers, and the losses of third party due to the Lessee.

 

10.3          The insurance policy of property all risks respectively bought by the Lessor and the Lessee shall indicate that the insurer has agreed to waive its right of subrogation and other rights based upon the assignment of the insured. Any party or its director, employee, agent, invitee or contractor shall assume no liability for the losses or damages caused by the risks included in the coverage of the insurance of property all risks, and each party shall waive the right to claim or demand against the other party or its director, employee, agent, invitee or contractor for such losses or damages. Even if one party fails to buy or keep in full force the insurance of Property All Risks that it shall buy in accordance with the requirements in this Article, such failure shall not void the above waiver. However, the insurer shall reserve the right to claims the losses caused by the intentional acts of insured listed in the policy (e.g. arson, theft upon collusion). In case that one party fails to include in the Property All Risk Insurance any provision related to the insurer’s waiver of its subrogation, and the insurer demands any liabilities against the other party or its employee, visitor, or contractor for any loss or damage that the insurance covers, the other party is entitled to request such party to indemnify such losses that it suffers therefrom.

 

10.4          Both parties shall provide the other party with the photocopy of the policy of property all risk insurance within thirty (30) days after the actually Delivery Date, for proving that such policy is subject to the requirements herein, where the policy does not conform to the agreement herein, such party shall amend the policy till it fulfills the requirements herein.

 

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11.                 Repair by the Lessor

 

11.1          During the lease term, the Lessor shall, at its own expense, maintain the roof and the foundation of the Property, as well as the facilities and equipment constructed by the Lessor (including but not limited to the lifting platform, the bumper block of the lifting platform, the lifting door of the Property, the roller shutter door of the Property, the pipeline to the public connection, the doors, the ceilings, the windows, the inner walls, glass, or the entrance of office area), ensure the firm structure of the outer walls, and keep it in good conditions, in addition to, it shall repair the facilities and systems including the fire fighting system which it shall provide in accordance with the Building Specification, Facilities and Equipment, in Annex I. The Lessor shall also be liable for repair the construction flaws that could not be found on the Delivery Date. But the Lessor shall not be liable for any loss or damage caused by the Lessee and its agent, invitee and contract. Where the Property requires being repaired by the Lessor as this Article 11 stipulates, the Lessee shall give written notice promptly to the Lessor in advance, and the Property shall be repaired as soon as possible without influence to the normal use by the Lessee. However, in all cases, the Lessor shall be liable for any economic losses that the Lessee suffers from the fault of the Lessor and its agent, the invitee and the builder. Where the Lessor fails to perform the repair obligation stipulated in this Article, 30 days after the appointed date (or the necessary and reasonable period expires if such repair or maintenance lasts for over 30 days due to the nature of such obligation), the Lessee shall have the right to employ the third party with the corresponding qualification to carry out such repair or maintenance after it give the written notice to the Lessor, and the actual and reasonable expenses arising therefrom shall be borne by the Lessor after being confirmed by the Lessor. But in all cases, the Lessee shall borne all expenses and costs where the Lessor has to perform the repair obligation under this Article due to the fault, misconduct, intentional act or negligence of the Lessee and its agent, invitee and contractor.

 

11.2          The Lessor shall repair and maintain in good condition the parking area and the other public area outside the House (including but not limited to the driveway, corridor, greening and the ground surrounding the House).

 

11.3          Except in an emergency, for the purpose of providing the services including the property management, inspection, maintenance and repair stipulated herein, the Lessor can enter into the Property for inspection, daily maintenance and repair, upon prior notice to the Lessee.

 

11.4          During the lease term, where any mandatory provisions including laws and regulations, or any government department demands the addition, improvement or change of the building system or fire fighting device, the Lessor shall improve or change without material prejudice to the basic function of the Property, and the Lessee shall provide assistance.

 

11.5          Upon the prior written notice from the Lessor, the Lessee shall assume all liabilities for any property loss or personal injury of the Lessee or any third party arising from the failure of the Lessor to promptly repair and maintain the Property or any attachments or other facilities in the Property due to the interference by the Lessee (whether caused by intentional act, misconduct or negligence).

 

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11.6          To the extent permitted by the laws or regulations in China, except any material fault or willful and improper act by the Lessor, the Lessor shall assume no liability against the Lessee. The Lessor shall assume no liability for any damages caused by any action, no action or negligence, fault or intentional act of the Lessee and its agent, employee, contractor, invitee or other third party in the Property or surroundings, nor for the damages arising from the failure of the Lessor to enforce any other lease contract (if any) related to the Property. Even if the Lessor has any negligence or breaches this Contract, and causes any losses to the Lessee, to the extent permitted by the laws and regulations in China, the Lessor shall assume no liability for the business loss or damage, business income or profit loss, or any indirect or punitive loss of the Lessee.

 

12.                 Repair by the Lessee

 

Except the obligations of the Lessor under Article 11, and subject to Article 10, the Lessee shall borne the expenses and costs for repair, replacement and maintenance of the facilities and equipment that the Lessee decorates or installs, the improvement of such facilities and keeping it in good condition, other than the damage caused by the fault of the Lessor. Where lessee cause the damage to the facilities provided by the Lessor, including the lifting platform, bumper block of the lifting platform, loading and unloading area, lifting door, roller shutter door, pipeline to the public connection, doors, ceilings, windows, inner walls, glass or entrance of office area, such damage shall be repaired by the Lessor or the service provider that it appoints, and the expenses or any losses to the Lessor (if any) shall be borne fully by the Lessee, or such damages can be repaired by the Lessee at its expense, upon the prior written consent of the Lessor. Where the consumable locks, lights or bulbs are damages, the Lessee shall bear the expenses and costs for repair or replacement. The above articles repaired and replaced by the Lessee shall be in normal service after the lease term or renewal term (if any) expires. The Lessee shall maintain and repair, at its expense, the heating (if any), ventilation, office refrigeration, air conditioning system(if any) and other machinery and building systems in the Property, except the damage directly caused by the Lessor after both parties sign the Delivery Letter. Where the Lessee employs third party contractor to perform its repair obligation hereunder, such third contractor and its service scope shall be confirmed with the prior written approval o the Lessor. Where the Lessee fails to perform its repair or replacement obligations, the Lessor can repair or replace upon the written notice, provided that the Lessor shall inform the Lessee of the repair or replacement costs in writing, the Lessee shall pay in full to the Lessor within 10 days after the Lessee requests the compensation of such repair or replacement costs. Subject to Article 10, the Lessee shall bear all expenses and costs for the repair or replacement of any part of the Property or premises damaged by its agent, contractor or invitee.

 

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13.                 Rebuilding and Business Facility Made by the Lessee

 

13.1          Any change, addition, attachment or improvement of the Property by or in the name of the Lessee (hereinafter referred to as “Lessee’s Rebuilding”) shall be made only with the prior written consent of the Lessor. The Lessee shall ensure that the Lessee’s Rebuilding fulfills the insurance requirements and the Statutory Requirements, and bear all the expenses incurred therefrom. Lessee’s Rebuilding shall be made only with the prior consent of the Lessor, and the Lessee shall ensure the civilized and safe construction, the main construction materials shall also be acknowledged by the Lessor. Lessee’s Rebuilding might affects or involves the roof, wall, foundation, ground, instrument system, electronic system, power system, fire fighting system, ventilation system or other system, the materials related to such rebuilding, including but not limited to the design drawing, structure statement, material brand and technical specification, construction solution, and the name and qualification of the builder, shall be submitted to the Lessor in advance for approval (in all cases, the approval of the Lessor shall not be taken as the approval of the government). The Lessor could supervise the Rebuilding Made by the Lessee. Where the Lessor pays to any third party for the Lessee’s Rebuilding (including but not limited to review of design drawing or instructions or construction supervision), the Lessee shall make full compensation to the Lessor, provided that the Lessor give written notice to the Lessee before signing any contract for expense collection (if any) with the third party. The Lessor will review the design drawings and instructions as well as supervise the construction only for its own benefits. The Lessor is not be obliged to ensure the conformity of such design drawings and instructions or the constructions with the insurance requirements and Statutory Requirements. The Lessee shall buy and maintain the work injury insurance, engineering insurance and third party liability for the Rebuilding, and ensure that, the amount and the coverage of the work injury insurance, engineering insurance and third party liability insurance for the Rebuilding fulfill the requirements of the Lessor, and the Lessee shall provide the copy of the insurance policy upon the request of the Lessor, so as to protect the Lessor from any compensation for any personal injuries and property damages during the construction. The amount and the insurer of such insurance shall fulfill the requirements of the Lessor. The Lessee shall pay promptly all expenses and costs to the contractor and the subcontractor who contract the Rebuilding, and ensure that the contractor and the subcontractor do not have any priority or other privileges against such Rebuilding. In case that the Lessor suffers any losses due to the demand of the contractor or the subcontractor for any rights, the Lessee shall indemnify in full.

 

14.                 Marks

 

Where the Lessee requires placing any marks outside the Property, the installation, size and the location of such marks shall be confirmed with the prior written consent of the Lessor. Where the Lessee installs the marks with the consent of the Lessor, the Lessee shall remove all marks at its own expense, and repair, paint and/or replace the surface where the marks are attached when returning or emptying the Property, till the installed place is recovered to the original condition. The Lessee shall obtain the approval and permit from the government for the installation, use and repair, among others, of the marks and the outer decorations, and keep such marks and outer decorations beautiful and safe. The Lessee shall assume all liabilities (including but not limited to the compensation liability) for any losses arising, directly or indirectly from the placement, use or removal of marks, or the inner factors of the marks (including but not limited to the design or installation defect) or the negligent maintenance. Where such marks infringe any rights and interests of the Lessor or any third party, the Lessee shall assume the compensation liability and promptly correct such infringement. The marks, decorations, advertisements, shutters, curtains and other traceries or fences or any other safety facilities, which can be seen outside the Property, shall be installed only with the consent the Lessor, the approval and permit of the competent government authorities, upon the fulfillment of the Lessor’s requirements and the statutory requirements in all the aspects.

 

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15.                 Parking

 

The Lessee and other lessees in the Property are entitled to park in the unpreserved parking place in the Park. Where the Lessor considers the insufficient parking lots, it can temporarily assign the parking lots for the Lessee and other lessees in the Park. The Lessor shall assume no liability for protecting the lessee’s parking rights against any third party, unless the lessee and the Lessor otherwise reach the written agreement.

 

16.                 Recovery to Original Conditions

 

16.1          Where the House or its substantial part has been damaged by the fire or any other major accidents at any time during the period from the Delivery Date and the Expiration Date, the lessee shall, at its own expense, repair the part which the lessee is obligated to repair hereunder, including Lessee’s Rebuilding, business facilities and the parts that are rebuilt by the Lessor but paid by the lessee, and promptly enter into and use the Property promptly.

 

16.2          Notwithstanding the above provisions, where the Property is damaged due to the force majeure and cannot be used in the last year of the lease term, and the repair duration is estimated reasonably by the Lessor as over six months, either party could decide to terminate this Contract. Where either party terminates this Contract pursuant to this Article, the rental or the property & facility management fees shall be calculated to the termination date of this Contract, and neither party assume any default liability against the other party.

 

17.                 Requisition

 

Where any part of the Property or its Project is reclaimed by the laws, orders or ordinances, or the exercise of the state requisition right (hereinafter referred to as the “Reclaim”), and such reclaim causes the Lessee’s failure to use normally the Property or its substantial part or seriously affects the Lessee’s normal use of the Property, or upon the judgment by the Lessor, such reclaim will seriously affect or prejudice to its ownership of the Property or its any part, or the operation of the Project, the Lessor shall give written notice to the Lessee forthwith after it knows such Reclaim, and this Contract will be terminated on the date stated on the written notice given by the government department (“reclaim date”), the rental and the property & facility management fees shall be calculated to the reclaim date. If part of the Property is reclaimed, and the Lessee agrees to continue occupying the remaining part, the rental and the property & facility management fees for the remaining lease term shall be decreased to reflect the reduction of the area. In case of such claim, the Lessee hereby irrevocably decides, at its own discretion, whether it authorizes the Lessor to discuss independently on its behalf or jointly with the relevant government department for any possible indemnity for such claim (if the relevant government department accepts the independent discussion, the Lessee is entitled to discuss independently with the relevant government department), however, the Lessor is not obligated to guarantee any indemnity for the Lessee. The Lessee is entitled to independently claim from the department of requisition (not the Lessor) (such claim shall not decrease the indemnification that the Lessor may obtain). Whether the Lessee reaches the indemnification agreement with the department of requisition, the Lessor shall have the right to remove the Property beforehand, and the Lessee shall assist the Lessor in emptying and returning the Property before the date stipulated on the official notice of reclaim issued by the department of requisition. The termination under this Article shall not be deemed as the early termination, neither party is obligated to pay compensation to the other party in accordance with Article 19 herein.

 

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18.                 Sublease

 

18.1          Except as otherwise stipulated herein, without the prior written consent of the Lessor, the Lessee shall not sublease the Property or its any part to any third party or authorize it to use, nor dispose any or all rights and benefits hereunder, otherwise, the sublease or disposal shall be void and invalid. Notwithstanding the above provisions, the Lessee can sublease to any entity controlling it or it controls or under common control with it (hereinafter referred to as the “Lessee’s Affiliate”) or authorize it to use, upon prior notice to the Lessor, and it shall ensure that such Affiliate comply with any and all provisions hereunder, and the Lessee shall assume the joint and several guarantee for the obligation and liability of such Affiliate. Where the lessee intends to sublease the Property, it shall submit the written application to the Lessor for such sublease.

 

18.2          Whether the Lessor has approved such sublease or not, the Lessee and the guarantor (if any) shall still assume all their liabilities and obligations hereunder. Where the Lessee sublease the Property upon the prior written notice of the Lessor, the Lessee shall request and ensure the subleasee to perform the liabilities and obligations as same as the Lessee’s obligations hereunder (except the rental and the property & Facility Management Fees, but, regardless the agreement between the Lessee and the subleasee such fees, the Lessee shall ensure that the fund received by the Lessor is no less than the amount stipulated hereunder).

 

18.3          Where the Property is subleased or the Lessee’s rights and interests hereunder is pledged, mortgaged or collateralized, or the Property is wholly or partly occupied by any third person other than the Lessee, the Lessor could request the sublessee, the pledgee, the mortgagee or any other party who occupies the Property to directly perform such obligations, in the case that the Lessee has any default hereunder. The Lessor shall have the right to directly issue the invoice to the sublessee, the pledgee, the mortgagee or any other party who occupies the Property. Where the Lessee has received such rental and Property & facility management fees before it performs its relevant payment obligation hereunder, the Lessee shall hold such rental on behalf for the benefits of the Lessor, and promptly transfer to the Lessor. However, the Lessor’s request on direct performance of obligation by the sublessee, the pledgee, the mortgagee or any other party who occupies the Property, or collection of the rental and Property & Facility Management Fees, issuance of the invoice or the use of the rental and Property & facility management fees shall not be deemed as the Lessor’s consent on the Lessee’s assignment of this Contract, or waive on such clauses or rights, or release of Lessee’s further performance of its promises, duties or obligations hereunder.

 

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19.                 Early Termination and Compensation

 

19.1          In the first lease term, except as agreed by the Lessor and the Lessee, in all cases, the Lessee shall not request the entire or part termination of this Contract. Where the Lessee request the entire or part termination of this Contract in the first lease term, the Lessee shall give official written notice to the Lessor 6 months in advance. In addition to the rental and Property & facility management fees exempted for such terminated lease area for the rent-fee period (RMB 0.9 Yuan/day/square meter), the Lessee shall pay the rental and Property & facility management fees once off for 2 years from the date of early termination, then the Lessor will return the deposit to the Lessee. At that time, this Contract or the corresponding part shall be terminated immediately, and the Lessor shall have the right to provide the Property or such part to any third party.

 

19.2          Without prejudice to the Lessor’s other rights vested by laws, regulations, and provisions herein including Article 19.1, the Lessor is entitled terminate this Contract and assume no liability against the Lessee in any of the following circumstances in which the Lessee cannot eliminate such circumstance within 60 days after occurrence:

 

(1)                   The Lessee or the guarantor (if any) applies for dissolution, bankruptcy, is taken over or liquidated, or stops the operation or business, or suspended or revoked its business license, or the approval, consent or grant related to its business or operation, or suffers any other circumstance that might affects the existence of its legal entity or the main capacity of business and operation (hereinafter collectively referred to as “the Adverse Circumstances”);

 

(2)                   The Adverse Circumstances occurs due to the application by any third party, and is not be revoked within 60 days after it occurs or starts;

 

(3)                   The Property or any Lessee’s properties in the Property is/are seized, detained, frozen or enforced by court due to the Lessee; or

 

(4)                   Any event or lawsuit might occur in the region where the Lessee is subject to its jurisdiction, which is same or similar to any circumstance listed in above Paragraphs (1) to (3).

 

19.3          Unless otherwise stipulated herein, where any third party claims against the Lessor for its losses suffered from the conducts of the Lessee or its employee, sublessee, contractor, agent or invitee or the occupancy or use of the Property, the Lessee shall settle and hold the Lessor harmless from any losses, except the losses arising from the negligence or willful conducts of the Lessor or its agent, employee or contractor. Where the Lessor compensates any third party due to the liability of the Lessee, the Lessee shall make full compensation to the Lessor (including but not limited to the attorney’s fee), provided that the Lessor informs the Lessee of the amount of compensation in advance and obtains the consent of the Lessee before signing the compensation agreement with third party. However, where the compensation affects the operation of the Park or the legal organ gives the judgment, the Lessor will only informs the Lessee of such compensation in advance, the Lessee shall make the full compensation (including but not limited to the attorney’s fee).

 

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19.4          In the first lease term, except as agreed by the Lessor and the Lessee or stipulated by this Contract, or any law or regulation, the Lessor shall not request the entire or part termination of this Contract in all cases. However, the Lessor requests the entire or part termination of this Contract in the first lease term, the Lessor shall give formal written notice to the Lessee 3 months in advance, and the Lessor shall return the deposit to the Lessee, both parties shall settle the relevant expenses including the rental and Property & Facility Management Fees, the Lessor shall also pay the liquidated damages to the Lessee at the amount equal to the monthly rental and Property & facility management fees of 6 months in the year of early termination, at that time, this Contract or the corresponding part shall be terminated immediately, and the Lessee shall return the Property to the Lessor in accordance with this Contract.

 

19.5          Both parties agree specially that, in the first lease term, upon no default by the Lessee, where the Lessee fails to properly use the Property due to the enforcement of the pledge of the Property, the Lessee might terminate this Contract upon prior written notice, the Lessor shall return the deposit to the Lessee, both parties shall settle the relevant expenses including the rental and Property & Facility Management Fees, the Lessor shall also pay the liquidated damages to the Lessee at the amount equal to the monthly rental and Property & facility management fees of 3 months in the year of early termination, and the Lessee shall return the Property to the Lessor in accordance with this Contract.

 

20.                 Inspection and Entrance

 

Upon prior notice, the Lessor and its agent, representative or contractor could enter into the Property at the reasonable time, and inspect the safety of the Property or make repairs (however, in an emergency, the Lessor and its agent, representative or contractor could enter into the Property at any time without notice).Upon prior notice, the Lessor and its representative could enter into the Property during the working hours and show the Property to any potential buyer, and the Lessee shall agree. In the last year of the first lease term or renewal term (if applicable), the Lessor and its representative enters into the Property during the non-working hours for presenting and introducing the Property to any potential client. The Lessor could create the easement on or surrounding the Property, set up the public marks, appoint the public area and set the limitation, provided that such easement, marks, appointment or limitation does not materially affects the Lessee’s use or occupancy of the Property. Upon the request of the Lessor, the Lessee shall sign the documents necessary for such easement, appointment or limitation.

 

21.                 Assignment of Ownership of the Property

 

Without prejudice to the Lessee’s rights and interests hereunder, at any time in the first lease term and/or renewal term (if applicable), the Lessor is entitled to, at its own discretion, sell or pledge such Property; to the extent permitted by the state laws or regulations, in case that the Property can be sold partly, the Lessee has the preemptive right to buy the part that it leases, on the same commercial conditions during the lease term; in addition to the above circumstances, the Lessor is entitled to, at its own discretion, discuss with the pledgee to dispose such Property in discount, realization or other form, without prior written notice to, or prior consent of the Lessee. The Lessee hereby undertake that, it irrevocably and unconditionally waives its right to receive notice on such pledge or otherwise disposal of such Property as stipulated above, and its preemptive right to buy such Property. The Lessor shall give written notice to the Lessee within ten (10) days after the formal sale contract is concluded. This Contract shall be succeeded by the new owner, and the Lessor shall ensure that the new owner fully succeeds, assumes the obligations against the Lessee, the liabilities for indemnifying and compensating the Lessee, and paying for the relevant losses.

 

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22.                 Return

 

22.1          Upon the expiration or early termination of this Contract, the Lessee shall clean the property and return it to the Lessee in original conditions before the Expiration Date or the date of early termination, except the requisition referred in Article 17; the Lessee shall remove all business facilities, its Rebuilding and any improvements or rebuilding made by the Lessor or the Lessee from the Delivery Date to the Expiration Date and all properties and articles placed by the Lessee in the Property, except those agreed by both parties, or the nonconforming removal; where the Lessee fails to remove as stipulated above, the Lessor can remove or dispose, at the expense of the Lessee; where both parties agree not to remove, the Lessor shall own and have the right to dispose, at its own discretion, such retained business facilities, the Lessee’s Rebuilding, improvements or any properties or other articles left in the Property. Except as agreed in writing by the Lessor, the Lessee shall not request the Lessor to buy any Lessee’s decoration or facility by any reason.

 

22.2          Where the Lessee fails to remove as stipulated above, the Lessee will be deemed as waiving irrevocably all rights, including ownership, use right, possession right, of the articles left in the Property, and meanwhile, the Lessor obtains automatically all rights, including ownership, use right, possession right, of such articles. However, in any case, the Lessor is not obligated to pay or compensate the Lessee for such articles.  The Lessee hereby undertake and guarantee against the Lessor irrevocably that, on the Expiration Date or the date of early termination, no third party will have any rights and interests (including but not limited to; ownership, use right, possession right, preemptive right, pledge right, hypotheque, lien, lease right, contracting right, judicial attachment and judicial freezing)of the articles left in the Property, therefore, the Lessor will not consider any possible influence by such rights and interests while disposing such articles. For avoiding doubts, the Lessee hereby undertake and guarantee irrevocably that, the Lessor will assume no liability against any third party for disposing such articles, and it will compensate the Lessor for any possible losses arising thereby.

 

22.3          When the first lease term and/or renewal term (if applicable) expires, the Lessee shall still perform any obligations and liabilities that it does not fully perform (such obligations and liabilities include but not limited to the compensation obligation, the payment obligations related to the rental and the property & Facility Management Fees, and the obligations related to the repair and recovery).

 

23.                 Prolongation of Occupancy

 

Unless otherwise stipulated in writing, where the Lessee prolongs its occupancy of the Property after the first lease term and/or renewal term expires or this Contract is terminated in advance, the Lessor could terminate such occupancy at any time, remove all articles and decorations, among others, placed by the Lessee in the Property, recover the Property to the original conditions and provide to third party for use, but the Lessees shall bear all expenses and costs related to the removal and recovery, and still perform its obligations and liabilities hereunder during the occupancy of the Property; meanwhile, the Lessee shall pay, upon the Lessor’s request, the rental and Property & facility management fees for the prolonged occupancy at the amount two times the rental and Property & facility management fees applicable on the Expiration Date or the date of early termination. Besides, the Lessee shall assume the liability for the losses that the Lessor suffers due to such prolongation of occupancy (including but not limited to the enforceability of the lease agreement or preservation agreement with any third party). Unless otherwise stipulated expressly by both parties at that time, the Lessee’s prolongation of occupancy, the Lessor’s collection of rental and Property & facility management fees for such prolongation of occupancy, and the Lessor’s failure to exercise the rights hereunder shall not be interpreted as the renewal or extension of this Contract, and this Article 23 shall not be interpreted as the consent on the lessee’s prolongation of occupancy of the Property.

 

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24.                 Default

 

Any of the following events shall constitute the Lessee’s default hereunder (hereinafter referred to as the “Default”):

 

(1)                   Due to its own fault, the Lessee fails to properly sign the Delivery Letter and send it to the Lessor within [30] days from the Delivery Date;

 

(2)                   The Lessee fails to pay any due rental, Property & facility management fees and other due payables in any installment as per this Contract, and remains it unpaid even after 30 days from the due date (inclusive of such due date);

 

(3)                   Unless otherwise permitted herein, without the prior written consent of the Lessor, the Lessee assigns this Contract or the Property or its part to any third party, or mortgages, pledges or otherwise disposes its rights and related interests hereunder;

 

(4)                   The Lessee changes the purpose of the Property stipulated herein;

 

(5)                   Any insurance bought by the Lessee hereunder is not bought by the Lessee, or is cancelled, terminated in advance, is not renewed upon expiration, or the insurance amount is decreased, or the nature is changed, except any circumstance permitted herein;

 

(6)                   The Lessee beaches this Contract and leads to the creation of priority of compensation or debts against the Property, and the priority of compensation or debts are not be eliminated within 10 days after the creation of priority of compensation or debts against the Property; or

 

(7)                   The lessee fails to comply with any other provisions than this Article 24 (1) to (6), and remains uncorrected within 30 days after the Lessor gives the written notice of correction for such default, unless otherwise expressly stipulated herein.

 

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25.                 Lessor’s Remedies

 

25.1          In case that any default occurs and the Lessee fails to eliminate such circumstance within 60 days after occurrence, the Lessor might choose to: (1) request the lessee continuing fully performing its obligations hereunder; and/or (2) suspend Lessee’s use of the Property, its part or any facility; and/or (3) terminate this Contract or any part leased hereunder and promptly recover the Property or the corresponding part. Besides, the Lessor shall have the right to seek other remedies in law.

 

25.2          The Lessee agrees that, where this Contract or any part of the Property is terminated by the Lessor as per Article 25, the Lessor shall have the right to reoccupy the Property and the corresponding part in any way it deems as proper, to remove the Lessee and all the persons and their properties, and it has the right to use and keep in original conditions all the furniture, devices and equipments in the Property, or to remove and store such articles, and request the Lessee to indemnify the Lessor for: (i)the due, unpaid and accumulated rental, Property & facility management fees and other payables hereunder through such date of termination; and (ii) the expenses incurred due to the otherwise lease of the Property or its part (including but not limited to the intermediary agent charges and/or commission paid by the Lessor); and (iii) costs incurred due to removal and storage of the properties of the Lessee and any other persons; (iv) costs for the recovery of the Property to the original conditions; and (v) all the reasonable expenses incurred to the Lessor for seeking the remedies (including the reasonable attorney’s fee and the expenses related to the arbitration and/or court).

 

25.3          Where the Lessor terminates this Contract for any default as per Article 25.1, in additional to the compensation stipulated in Article 25.2, the Lessee shall pay the liquidated damages to the Lessor at the amount equal to the rental and Property & facility management fees for 6 months in the year of termination.

 

25.4          The Lessor’s failure to demand its rights hereunder at any time shall not be interpreted as its waiver or change of such rights or creation of such customary practice. Unless otherwise confirmed by the Lessor in writing, the Lessor’s failure to exercise the rights shall not be deemed as its waiver of any provision herein. The Lessee and the Lessor further agree that, the Lessor’s deferral or waiver of exercise of its rights hereunder shall not be deemed as its waiver of recourse against the Lessee’s default in future. Where the Lessor knows the Lessee’s default when accepting the rental, Property & facility management fees and other payment, such acceptance shall not be deemed as the Lessor’s waiver of prosecution against such default.

 

26.                 Environmental Requirements

 

26.1          Without the prior written consent of the Lessor, the lessee shall not allow or make any party to bring any harmful substances into the Property, or transport, store, use, cultivate, produce or release any harmful substances in or surrounding the Property, except the harmful substances contained in the products which are used by the Lessee for the normal cleaning or for office purpose, and provided that, such substances are subject to the state safety standard. The Lessee shall strictly comply with, at its own expense, all the environmental requirements when operating the business in the Property, and remedy any released harmful substances for other lessee, its agent, employee, contract, sublessee or invitee, to the satisfaction of the Lessor. The Lessee shall complete and prove, from time to time, the disclosure statement related to the Lessee’s transport, storage, use, cultivation, production or release of the harmful substance in the Property.”Environmental Requirements” refer to all current and future laws, regulations, orders, rules, acts, awards, directions, or any other environment conditions on health, safety or related to the Property or its surroundings, or the statutes promulgated by the governmental institutions or all corresponding state and local organs, and all relative state and local regulations, or any regulations and policies promulgated or issued under the above laws and regulations. “Harmful substance” refers to any substances, materials, wastes, pollutants or contaminant, asbestos and petroleum that are listed or defined as harmful or toxic in the environmental requirements, including the crude oil and its components, natural gas liquid, LPG, or the manufacture gas that could be used as the fuel (or the mixture of the natural gas and such manufacture gas). As the definition in the environmental requirements, the Lessee shall be deemed as the operator of the facilities that are used by the Lessee and the owner of all the harmful substance brought by the Lessee, its agent, employee, contractor or invitee into the Property, as well as the waste, byproduct or residues cultivated, produced or manufactured by the Lessee.

 

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26.2          The Lessee shall indemnify, protect and hold the Lessor harmless from any request or claim against the Lessor, under environmental requirements, or the release of the harmful substance that the Lessee is obliged to remedy pursuant to the above provisions, or the losses (including but not limited to the depreciation of the Property or the Project, and the income losses related to storage fee), right demand, request, arbitration, lawsuit, damages, expenditure (including but not limited to the expenses related to remedy, transfer, repair, correction or cleaning) and expenses (including but not limited to the actual attorney’s fee, consultant’s fee and expert’s fee, and including but limited to the expenses related to removal or administration of the harmful substances, including asbestos, which are messed up or brought into the Property in violation of this Article 26, whether the laws requires such removal and administration or not) caused by the Lessee, its agent, employee, contractor, sublessee, or invitee in violation of this Article 26 (whether the Lessee knows such violation or not). The Lessee’s obligations under this Article 26 shall remain in force after this Contact is terminated.

 

26.3          Upon prior notice, for the purpose of this Article, the Lessor can enter into the Property, and has the right to inspect and test the Property for determining whether the Lessee comply with the environmental requirements, its obligations under this Article 26 or the environmental conditions for the Property.  Once the Lessor gives the prior notice, the Lessor shall be granted the right to enter into the House, when entering into the House, the Lessor shall not interrupt the business of the lessee as possible to a reasonable extent. The Lessor shall bear such costs and expenses related to such inspection and test, unless the result indicates that the Lessee fails to comply with any of the environmental requirement, and the Lessee shall compensate the Lessor for any reasonable expenses related to such inspection and test. The Lessor’s acceptance of any environmental evaluation or satisfaction on any environmental evaluation shall not be deemed as waiving its rights against the Lessee in any aspects.

 

25

 

27.                 Rules and Regulations

 

From the Delivery Date to the Expiration Date and during the renewal term(if any), the Lessee shall comply with, at any time, the rules and provisions established or amended by the Lessor from time to time, including the rules for using the Property and the Project. In case of any conflicts between the above rules and the other provisions herein, the other terms and provisions herein shall prevail. The Lessor shall assume no obligation or liability for the violation of any rules and provisions by the other lessees in the Project.

 

28.                 Public Order

 

The Lessee shall accept and obey the direction and arrangement by the Lessor on the public order in the Project. The Lessee acknowledges and agrees that, it shall manage and keep goods, vehicles and other properties in its connection in the Property and the Project. The Lessor will not arrange security service for the Property or the Project, the Lessee shall be liable for the safety of the goods, vehicles and other properties in its connection in the Property and the Project.

 

29.                 Force Majeure

 

Except the payment obligation hereunder, where any force majeure causes the failure or delay of any party to perform its obligations hereunder, such affected party will assume no liability for such delay or defect. For avoidance of doubt, the force majeure referred in this Article shall include (but not limited to):

 

(1)                   It is influenced by the policy or any regulations of the competent government department or government authority, and the affected party shows the certificate issued by the relevant competent department or authority;

 

(2)                   It is delayed or influenced by the approval or installation of municipal supporting infrastructures controlled by relevant department or authority, and the affected party shows the certificate issued by the relevant competent department or authority;

 

(3)                   The construction is affected by extremely severe weather, the discovery of cultural relics and historic sites, the large-scale outbreak and prevalence of epidemic(infectious disease), and the affected party shows the certificate issued by the relevant competent department or authority;

 

(4)                   There is abnormal social event, natural disaster (typhoon, fire, floor, earthquake etc.), ware and other irresistible forces; or

 

(5)                   There is other irresistible force which cannot be predicted, avoid or conquered.

 

30.                 Entire Agreement

 

This Contract constitutes the entire agreement between the Lessor and the Lessee with respect to the subject matter of this Contract. This Contract shall supersede any oral or written statement, explanation, promises or agreement made by the Lessor, Lessee or their representatives but not included herein, as well as any prior agreements, promises, negotiations or statements. This Contract shall not be changed, unless both parties hereto sign the written legal documents.

 

26

 

31.                 Severability

 

Where any article or provision herein becomes illegal, void or enforceable under the current or future laws, both parties intend to keep the remaining part of this Contract unaffected. Both parties also expect to add a legal, effective and enforceable provision, similar to such illegal, void and unenforceable article or provision as possible, to substitute the illegal, void and unenforceable article or provision (if possible).

 

32.                 Miscellaneous

 

32.1          Where the number of person, company or association concerning the Lessee herein is more than one, all such persons, companies or associations shall assume the joint and several liabilities for the Lessee’s obligations.

 

32.2          The notice requested or given hereunder shall be made in writing and sent by fax, e-mail, personal service, express mail or registered mail. By giving the notice in above way, either party could change its address for receiving all the future notice. Except as otherwise stipulated to the contrary, the notice is served on the exact time indicated on the sending record of the fax machine if by fax, or on the date when it enters into the email system appointed by the addressee if by email, or on the date when the addressee signs for receipt if by personal service or express mail, or seven days after sending upon the sending instrument issued by the post office if by registered mail.

 

32.3          The general interpretive rules, which stipulate that any ambiguous rules are adverse to the drafter, shall not be applicable to interpret this Contract or interpret any annexes or amendments to this Contract.

 

32.4          Before signing this Contract, the contractual text delivered by the Lessor to the Lessee shall neither bear any binding force or effect, nor constitute any option against the Lease of the Property, nor vest any party any rights or impose any obligations against any party.

 

32.5          The headings herein are for convenience only, does not define, limit or otherwise describe the scope or intention of the Contract or other provisions herein in any aspect, or affect the interpretation of this Contract in any aspect.

 

32.6          This Contract is made in Chinese. The interpretation of this Contract shall be governed by the laws of the People’s Republic of China, without the principle of conflict of laws.

 

32.7          All annexes and attachments hereto are incorporated herein, and become the integral part of this Contract. In case of any conflict between this Contract and these annex and attachments, this Contract shall prevail.

 

32.8          Any dispute or right demand arising from or related to this Contract (hereinafter referred to as the “dispute”), including the issue related to the existence, effectiveness or termination of this Contract, shall be first discussed friendly by both parties under the principle of friendly settlement. If no agreement is reached through discussion, such dispute shall be submitted to China International Economic and Trade Arbitration Commission (Shanghai) for arbitration. The arbitration shall be held under the prevailing arbitration rules of the Commission at that time in Shanghai. The arbitration tribunal consists of three arbitrators, each party appoints one. The chief arbitrator shall be jointly appointed by both parties, where both parties fails to agree on within 30 days, the chief arbitrator shall be appointed by the arbitration tribunal. The arbitration shall be made in Chinese. The hearing of arbitration shall be recorded in writing for reference by both parties. The arbitration award shall be final and binding upon both parties.

 

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Part III: Delivery Procedure

 

1.                            The Lessor shall arrange the acceptance of the Property, and promptly give the Notice of Entrance in the form stated in Annex II to the Lessee after the Property is qualified in the quality inspection and the fire prevention inspection, and inform the Lessee of the preparation of the Property for delivery.

 

2.                            On the Delivery Date or the other reasonable date otherwise informed by the Lessor, the lessee shall dispatch personnel to handle the formalities for the delivery with the Lessor. Where the Lessee does not dispatch any personnel to participate in the delivery on the Delivery Date or the other reasonable date otherwise informed by the Lessor, the Lessee could be considered as accepting the Property. When delivering, the Lessor and the Lessee shall jointly inspect the Property and sign Delivery Letter.

 

3.                            When delivering, in case of any issues listed as building defect under Article 2, Part II herein, the Lessee is entitled to state in the Property Delivery Letter, and the Lessor shall correct and finish the acceptance in the stipulated period. Where the Lessor fails to correct in the stipulated period, Article 11.1 herein shall be applicable.

 

In witness thereof, the Lessor and the Lessee sign this Contract on the date indicated at the beginning of this Contract.

 

 

Lessor: Kunshan Fuchan Warehousing Services Co., Ltd. (seal)

 

 

Authorized representative:

 

 

	
Signature:
    	
 
    	
 
    

Seal: /s/ Seal of Kunshan Fuchan Warehousing Services Co., Ltd.

 

 

Lessee: Yao Fang Information Technology (Shanghai) Co., Ltd. (seal)

 

 

Authorized representative:

 

 

	
Signature:
    	
 
    	
 
    

Seal: /s/ Seal of Yao Fang Information Technology (Shanghai) Co., Ltd.

 

28Exhibit 10.21

 

Shanghai Zhangjiang Hi-tech Park

 

Property Lease/Pre-lease Contract

 

(Version 2016)

 

 

[                                                    ] Property Lease/Pre-lease Contract

 

	
 
    	
Contract No.:
    
	
 
    	
 
    
	
 
    	
Place of Execution:
    

 

Landlord: Shanghai Zhangjiang Hi-tech Park Development Co., Ltd.  (hereinafter referred to as “Party A”)

 

Tenant: Yao Fang Information Technology (Shanghai) Co., Ltd.  (hereinafter referred to as “Party B”)

 

In accordance with the Contract Law of the People’s Republic of China, Shanghai Property Lease Regulations and other applicable laws and regulations, Party A and Party B, on the basis of equality, free will, fairness and good faith, reach a consensus through consultation and make and enter into this Contract as follows on November 28, 2017:

 

 

Contents

 

	
1. Definitions
    	
4
    
	
2. Leased/Preleased Premises
    	
4
    
	
3. Purpose of Lease
    	
5
    
	
4. Date of Handover
    	
6
    
	
5. Handover Conditions
    	
7
    
	
6. Lease Term
    	
7
    
	
7. Rent and Other Charges
    	
8
    
	
8. Payment Terms
    	
8
    
	
9. Performance Bond
    	
9
    
	
10.Property Management
    	
10
    
	
11.Fit-out, Use and Maintenance
    	
10
    
	
12.Return of the   Leased/Preleased Premises
    	
12
    
	
13.Sublease and Lease Expansion
    	
13
    
	
14.Party A’s Obligations
    	
13
    
	
15.Party B’s Obligations
    	
14
    
	
16.Contract Termination and   Liability Exemption
    	
14
    
	
17.Rescission of Contract and   Liabilities for Breach of Contract
    	
16
    
	
18.Force Majeure
    	
18
    
	
19.Notice
    	
19
    
	
20.Governing Law and Dispute   Resolution
    	
20
    
	
21.Miscellaneous
    	
20
    
	
22.Annexes
    	
21
    

 

 

1. Definitions

 

Unless otherwise required by the context, the following terms shall have the meanings set opposite to the same:

 

“Property” means the property located at 295 of Zuchongzhi Road and the facilities therein, thereon and thereof.

 

“Leased/Preleased Premise” means the corresponding premise in the Property mentioned in Article 2 hereof and leased by Party B from Party A.

 

“Lease Term” or “Term of Lease” means the period specified in Article 6.1 hereof starts on the lease commencement date and ends on the lease termination date.

 

“Rent” means the rent for lease/pre-lease paid by Party B to Party A during the Lease Term in such amount and for such period as stipulated herein, excluding Other Charges payable by Party B pursuant to provisions hereof to Party A or competent government, relevant utilities, property management office, etc.

 

“Other Charges” mean all charges, save and except rent, that shall be paid by Party B to Party A or the property manager pursuant hereto for use of Leased/Preleased Premises or all charges advanced by Party A or the property manager on behalf of Party B, including but not limited to property management fee, gas charge, water charge, electricity charge, communication fee and parking charge.

 

“Performance Bond” means the deposit paid, for fully performance of the obligations hereunder, by Party B to Party A pursuant to the stipulations hereof when this Contract takes effect, or within the payment period specified herein and in no case later than the handover of the Leased/Preleased Premises.

 

“Sublease” means that Party B subleases the Premises in whole or in part to a third party after obtaining the written consent of Party A; such third party is referred to herein as the “Subtenant”. Party B shall take joint and several liabilities for the acts of the Subtenant, and the sublease of Party B will not diminish or affect the obligations and liabilities of Party B hereunder.

 

2. Leased/Preleased Premises

 

2.1 According to the provisions hereof and the conditions stipulated herein, Party A agrees to lease out and Party B agrees to lease/pre-lease in the Premises located at Rooms 301, 302, 401 and 402, 295 of Zuchongzhi Road, Zhangjiang Hi-tech Zone, Shanghai and the facilities in, on and of such Premises.

 

2.2 Before lease, Party B has inspected in detail the certificate of title to the Leased/Preleased Premises and the Leased/Preleased Premises, and confirms such certificates of title to and corresponding parts and areas of such Premises. Before signing this Contract, Party A has informed Party B that mortgage [has not](has/has not) been created on the Leased/Preleased Premises and has also informed Party B of other existing encumbrances thereon; Party B raised no objection to the fact that the Leased/Preleased Premises meet the requirements of Party B on lease and use.

 

2.3 The Parties confirm that the leasable area of the Leased/Preleased Premises is [3131.41] square meters, including 1351.52 square meters for room 301, 213. 75 square meters for room 302, 1352. 40 square meters for room 401 and 213. 74 square meters for room 402 (the specific location thereof is shown in Annex I hereto, the specific part demonstrated on the floor plan for the [3rd-4th] floors of the Property, which is for identification only).

 

 

3. Purpose of Lease

 

3.1 Party B may use the Leased/Preleased Premises only as a [workshop] and may not use the same for other purposes. Party B fully understands and holds no objection to the planned purpose and nature of the land on which the Leased/Preleased Premises are located. Party B shall use the Leased/Preleased Premises reasonably based on the nature thereof, and shall abide by the national and local regulations on house use and property management. If Party B needs to change the use of the Leased/Preleased Premises, it shall obtain the consent of Party A in writing and, if such change shall be subject to government approval according to laws, Party B shall be responsible for reporting such change to competent department for approval, and Party A shall give cooperation in handling related formalities.

 

3.2 Without the written consent of Party A, Party B may not do the following acts:

 

3.2.1Distributing or placing any notices or advertising or written publicity materials in other places of the Property than the Leased/Preleased Premises, or placing any light box advertising in the Property and Leased/Preleased Premises that face the curtain wall;

 

3.2.2Seting up any additional building (structure) in the Leased/Preleased Premises or on the outer wall and roof of the Property;

 

3.2.3 Bringing overweight, inflammable, explosive, corrosive, or toxic articles and other hazardous articles and/or any forbidden articles in the Leased/Preleased Premises and the Property or carrying out any other activities that harm the safety of the Leased/Preleased Premises and the Property (the risk control measures related to the hazardous articles and forbidden articles have been included in the fit-out plan of Party B, save and except those for which Party B has held special fire approval document, obtained the consent of Party A, and taken necessary measures to guarantee safety);

 

3.2.4Using the Leased/Preleased Premises or any part thereof for residential or living;

 

3.2.5 Making too much noise or otherwise causing actual annoyance to other owners or tenants of the Property;

 

3.2.6 Carrying out any program in the Leased/Preleased Premises that causes any pollution to the surroundings or park environment;

 

3.2.7 Damaging or permitting to be damaged the Leased/Preleased Premises and the Property;

 

3.2.8Keeping animals or conducting other acts obstructing management in the Leased/Preleased Premises;

 

3.2.9 Carrying out commercial or non-commercial activities in the name of Party A;

 

3.2.10Subleasing the Leased/Preleased Premises without authorization or transferring the lease right hereunder in disguised forms or using such right as collateral;

 

 

3.2.11Permitting any third party to use or to jointly use the Leased/Preleased Premises;

 

3.2.12Using the Leased/Preleased Premises for illegal activities or activities that go against the local public order and good customs; and

 

3.2.13Doing any other acts that may possibly cause hindrance or interference to the rights of Party A, other owners or tenants, or any Party, and any other acts that may damage the Leased/Preleased Premises and the Property.

 

3.3 Party B undertakes that at any time during the Lease Term it, including but not limited to its agents, employees, labors, contractors, clients and visitors, will abide by all existing and future laws, regulations, ordinances, government regulations or management rules on such Property and Leased/Preleased Premises or on the use of the Property by Party B.

 

3.4 Party B undertakes that it is essential to protect the reputation of Party A and the Property and to maintain the prestige of Party A and the Property in the heart of Party A’s tenants, clients, guests and invitees, and that any adverse effects caused to such reputation and prestige will result in heavy losses to Party A. Consequently, Party B hereby undertakes and agrees to use the Leased/Preleased Premises in good faith of high level and according to the provisions hereof to protect and improve the good reputation of Party A and the Property. In order to reach such standards, Party B shall make all its reasonable efforts to supervise, manage and guide the acts of its agents, employees, labors, contractors, clients and visitors in the Leased/Preleased Premises.

 

4. Date of Handover

 

4.1 Party A and Party B agree that Party A will, before [December][1][2017]and after Party B has paid the Performance Bond and Other Charges hereunder, hand over the Leased/Preleased Premises to Party B. Party B shall sign for related certificates for the Leased/Preleased Premises when Party A or the property management office entrusted thereby hands over the Leased/Preleased Premises. The receipt by Party B of related certificates on the Leased/Preleased Premises shall be deemed that Party A has completely and property performed the Leased/Preleased Premises handover obligations hereunder.

 

4.2  If any fault not attributable to Party A causes it impossible for Party A to deliver the Leased/Preleased Premises as agreed, Party B agrees to grant a 7-day grace period to Party A, during which Party A assumes no liability for breach of contract, provided that the lease commencement date shall be changed to the actual delivery date of the Premises by Party A, that the Lease Term shall remain unchanged and that the Lease Termination date shall be postponed accordingly; should Party A still fail to deliver the Leased/Preleased Premises upon the expiry of the grace period, Party B shall have the right to choose to give a written notice to Party A to rescind this Contract, and Party A shall pay compensation to Party B equal to the amount of the Performance Bond.

 

4.3 Should Party A fails to deliver the Leased/Preleased Premises on the specified date of handover due to reasons attributable to Party B, the Leased/Preleased Premises shall be deemed delivered on schedule, the lease commencement date will not be changed, and the Lease Term shall commence on the lease commencement date set forth herein.

 

 

4.4 Should Party B fail to handle the takeover formalities within 10 working days after Party A sends a written notice with respect thereto, Party A shall have the right to promptly terminate this Contract unilaterally and to take possession of the Leased/Preleased Premises after giving a written notice to Party B, in which case the Performance Bond paid by Party B will be deemed as liquidated damages and will not be refunded, and Party A shall have the right to lease the Leased/Preleased Premises to a third party on conditions as it deems appropriate.

 

5. Handover Conditions

 

5.1 As to the handover standards, the existing fit-outs, ancillary facilities and equipment, and other matters to be agreed, the use scope, conditions and requirements for the public or common areas (if any) of the Leased/Preleased Premises, applicable provisions shall be set forth by Party A and Party B respectively in Annex II hereto Handover Standards and List of Existing Fit-outs Ancillary Facilities and Equipment and Annex III Scope, Conditions and Requirements for Use of Common Parts. Party A and Party B agree to take Annex II and Annex III as the handover (return) standards and inspection basis for the handover of the Leased/Preleased Premises by Party A to Party B and for the return of the Leased/Preleased Premises by Party B to Party A upon the expiry, rescission or early termination hereof.

 

5.2 If Party B has any objection to the Leased/Preleased Premises handed over and quality thereof, it shall raise such objection to Party A in writing within 10 working days after the handover, and Party A shall, after giving a written confirmation, be responsible to resolve such objection; if Party A, upon inspection, deems that the basis of such objection is not existed, the Leased/Preleased Premises shall be deemed compliant with the handover standards; should Party B fail to raise any objection within the aforesaid period, it shall be deemed to have no objection.

 

6. Lease Term

 

6.1 The Lease Term of the Leased/Preleased Premises by Party B is: with respect to the [Lease], from [December][1][2017]to [November][30][2020]; with respect to the [prelease], commencing on the date when Party B signs for related certificates of the Preleased Premises, and automatically converting to lease as of the date on which Party A duly obtains the certificate of title to the Leased/Preleased Premises; the Lease Term thereof shall end on [/](month)[/](date)[/](year).

 

6.2 Upon the expiry of the Lease Term, Party A shall have the right to take possession of the entire Leased/Preleased Premises, and Party B shall return the same on schedule. If Party B requires renewing the lease, it must make such request explicitly in writing to Party A three months before the date of expiry and shall, upon the consent of Party A, sign a new lease contract or lease renewal agreement with Party A at least two months before the expiry of the Lease Term.

 

6.3 If Party B fails to express its intention to renew the lease three months before the expiry of the Lease Term or the Parties fail to reach a consensus on the Rent for the renewed lease, renewed term and other renewal-related matters as later as of two months before the expiry of the Lease Term, Party A shall have the right to make preparations for lease to others, including but not limited to taking any future potential tenants to visit the Leased/Preleased Premises or conducting reasonable and necessary inspection and making maintenance of the Leased/Preleased Premises at the time agreed with Party B. Party B shall give cooperation thereto, provided that such visit or inspection or maintenance shall not affect the normal work of Party B.

 

 

7. Rent and Other Charges

 

7.1 The Parties confirm that the rent-free period is two months, from [December][1][2017]to [January][31][2018], during which Party B is exempted from the payment of rent.

 

7.2 From [February][1][2018], the base Rent for the Leased/Preleased Premises shall be RMB[4.8]each square meter each day and the monthly Rent totals up to RMB [457185.86. The monthly Rent equals to the base Rent*leasable area described in Article 2.3 hereof *365/12; if the leasable days of the first calendar month and the last calendar month during the Lease Term is less than the total calendar days of such months respectively, the Rent of such months respectively shall be (monthly rent/ total calendar days of such month)* actual lease days of such month.

 

7.3 Unless otherwise agreed, the Rent hereunder shall be tax-inclusive.

 

7.4 All charges incurred by reason of the lease and use of the Leased/Preleased Premises during the Lease Term (including the rent-free period) and the occupation period, including property management fee, gas charge, water charge, electricity charge, communication fee, parking charge and Other Charges (if any), shall be borne by Party B.

 

8. Payment Terms

 

8.1 All rents and Performance Bond hereunder shall be paid to the bank account of Party B.

 

i. Payee: Shanghai Zhangjiang Hi-tech Park Development Co., Ltd.

 

ii. Bank: China Construction Bank, Shanghai Zhangjiang Sub-branch

 

iii.Account number: ******************

 

8.2 Party B shall pay the Rent due on schedule and shall bear all charges incurred in relation to the payment hereunder. If the payment is made by check or other non-cash methods, such payment shall be deemed received only when it is received by the RMB bank account designated by Party A. If the amount actually received by Party A’s bank account is inconsistent with the amount stated on the check and other bank payment vouchers submitted by Party B, the amount actually received by the bank account of Party A shall be deemed as final.

 

8.3 Any payments hereunder shall be made in RMB, unless Party A gives prior written consent to the payment by other currencies than RMB.

 

8.4 The Rent shall be paid on the following schedule and in the following methods:

 

8.4.1                              The Rent shall be paid on a [quarterly](monthly/quarterly)basis. Party B shall, [B](A. before the 10th day of each calendar month/B. before the 10th day of the first month of each quarter) during the Lease Term, pay the Rent for such calendar [quarter](month/quarter), except for the payment of the rent for the first period, which shall be made by Party B pursuant to Article 8.4.2. Party A does not need to give a separate notice on the payment of any rent.

 

8.4.2                            Rent For the First Period. Party B shall, before [January][1][2018], pay the Rent of RMB [914371.72]for the first period, namely, from [February][1][2018] to [March][31][2018].

 

 

8.4.3                              Party A shall, within seven working days after receiving the Rent paid by Party B, issue corresponding tax invoice [A](A. special VAT invoice/B. regular VAT invoice) to Party B and shall advice Party B to pick up such invoice within seven working days.

 

If Party B subleases the Leased/Preleased Premises upon the written consent of Party A, it shall issue invoice to and collect Rent from the Subtenant by law.

 

8.4.4 The invoicing information of Party B is as follows:

 

i. Company name: Yao Fang Information Technology (Shanghai) Co. Ltd.

 

ii. Address: building 10, 115 of Lane 572, Bibo Road, Pudong New area, Shanghai

 

iii.Telephone: 021-20536666

 

iv.Bank account number: China Merchants Bank Co., Ltd., Shanghai Dongfang Sub-branch ***************

 

v.Tax Identification No.: ******************

 

vi.Other information:  /

 

8.4.5  If there is any change in the invoicing information of Party B during the term hereof, Party B shall give a written and stamped notice to Party A in the month of such change, and Party A shall issue invoice to Party B pursuant to the provisions of Article 8.4.3.

 

8.4.6  Party B shall designate a specific assignee to pick up the invoices and shall assume the liaiblites and losses resulting from the failure in pickup or lost after pickup. If Party B needs a credit note and meets the requirements of tax administration for issuance of such credit note, it shall make such request within 180 days after the date of invoice issuance; otherwise it shall bear all losses arising therefrom.

 

8.5 The property management fee and Other Charges shall be paid within such period and in such method as required by the property manager.

 

9. Performance Bond

 

9.1 Party A and Party B agree that Party B shall, within five working days after the signature of the Contract and before the handover of the Leased/Preleased Premises, pay the performance bond in full to Party A in an amount equal to three months’ rent, i.e. RMB [1371557.58]. After receiving the Performance Bond, Party A shall issue corresponding receipt to Party B. No interest shall be accured on the Performance Bond.

 

9.2 Should Party B fails to pay the aforesaid Performance Bond in full for more than [5] days, Party A may deem that Party B give up the lease of the Leased/Preleased Premises, and shall also have the right to, after giving a written notice, rescind this Contract pursuant to Article 17 hereof and lease the Leased/Preleased Premises to a third party.

 

 

9.3 Party A shall, under all circumstances, have right but is not obliged to apply the Performance Bond against various payments that shall be made by Party B (including but not limited to rent, interest on delayed payment, liquidated damages, compensation, etc.) and may also require Party B to directly pay all payables. If Party A uses the Performance Bond for offset and the after-offset Performance Bond is less than the amount specified in Article 9.1, Party B shall, within five working days after receiving the written notice of Party A, promptly bring the Performance Bond to its full amount.

 

9.4 When the leasehold relation terminates, Party A shall return the remaining ( if any) of the Performance Bond to Party B in RMB without interest after setting off the charges that are stipulated herein or incurred in the course of lease and shall be borne by Party B. Such remaining shall be returned within 15 days after the occurrence of the following three events, whichever comes latest:

 

9.4.1 Party B reinstates the Leased/Preleased Premises according to the provisions hereof, completes the change or cancellation of any administrative registration with the Leased/Preleased Premises as the registered address (including but not limited to business registration and tax registration) and returns the Leased/Preleased Premises to Party A.

 

9.4.2 Party B has paid all payable rents, Other Charges and the compensations/liquidated damages to be borne by it due to violation or non-performance of any provisions hereof.

 

9.4.3 Party B has completed the cancellation of registration and filing of this Contract (including but not limited to lease registration and filing) with related government departments.

 

10. Property Management

 

10.1                               During the Lease Term, Party A or a third party entrusted by it shall be responsible for management and normal maintenance of the Property.

 

10.2                               The present manager of the Property is [Shanghai Zhangjiang Property Management Co., Ltd.] and Party A shall have the right to replace such property manager at any time. If Party A changes the property manager, it shall notify Party B in writing of such change.

 

10.3                               During the Lease Term, the charges (including but not limited to property management fee, fit-out deposit (if any), etc.) that shall be paid by Party B to the property manager according to the Property Management Contract and/or the Property Management Convention shall be borne and paid by Party B according to related stipulations or provisions.

 

11. Fit-out, Use and Maintenance

 

11.1              After leasing the Leased/Preleased Premises, if Party B intends to fit out the Premises as required for its use, it shall send all fit-out construction drawings 30 days in advance to Party A or the property management office designated by it for review and may not carry out such fit-out before obtaining the written consent from Party A or the property management office designated by it and the approval of competent government department(s).

 

 

11.2     Party B shall warrant to Party A that the contractors selected by it for fit-out work has qualification certificates and government permits as required by corresponding fit-out work.If Party B carries out construciton without authorization, Party A shall have the right to take such meausres, including but not limtied to, rejecting the entry of the construciton team of Party B, water cutoff and power cutoff, all legal consequences arising from which shall be borne by Party B.If the fit-out of the Leased/Preleased Premises causes any economic loss to Party A , Party A shall have the right to recover such loss from Party B.

 

11.3     Party B warrants that its fit-out shall comply with the regulations and rules of the State and Shanghai Municipality on architecture, firefighting, environmental protection, sanitation and other aspects and may not obstruct or interfere with the normal use by the owners and tenants of the neighboring premises. Party B shall be responsible for resolving all legal liabilities and disputes over neighboring relations arising from the fit-out and shall assume such legal liabilities, which are irrelevant to Party A.

 

11.4     Unless otherwise provided herein, Party A does not make compensation in any form to Party B for the fit-out and additions when Party B returning the Leased/Preleased Premises.

 

11.5     In case of fire or other accidents, Party B shall also, apart from immediately calling the police and taking necessary measures, notify Party A and the property management company promptly.

 

11.6     During the Lease Term, Party A shall provide water supply and power supply at the capacity as set forth in the handover standards. Party A shall make its best efforts to accqurie normal power supply to the Leased/Preleased Premises. Party B may not use overload electricity or use electricity in violation of regulations; otherwise, it shall assume corresponding liabilities.  In case any force majeure, or due to reasons attributable to the power supply bureau, or the normal maintenance of systems, lines, facilities and equipment, or any reason not attributable to Party A gives rise to interruption in power supply, Party A shall not be held liable.

 

11.7     During the Lease Term, Party B shall reasonably use and protect the Leased/Preleased Premises and auxiliary facilities thereof. Unless otherwise agreed hereto, Party A shall be responsible for the repair and maintenance of facilities, equipment and property structure provided by Party A according to the handover standards or facilities, equipment and property structure of the public/common places, and Party B shall be responsible for repair and maintenance  of related facilities and equipment installed by itself. If the aforesaid part for which Party A assumes repair and maintenance obligations is damaged or has broken down due to the improper management or use by Party B, Party B shall be responsible for repair and maintenance.

 

11.8     The Party assuming the repair and maintenance obligations shall, within three working days after learning of the damage, arrange for such maintenance; should the maintenance fail to be conducted within such period, the other Party shall have the right to repair and to require the responsible Party to bear corresponding maintenance fee.

 

11.9     During the Lease Term, Party A shall give a three days’ notice to Party B for any inspection or maintenance of the Leased/Preleased Premises. Party B shall give cooperation in such inspection and maintenance. Party A shall minimize the effect of such repair or maintenance on the use of the Leased/Preleased Premises by Party B.

 

 

11.10  If Party A needs to work on supporting facility in the Leased/Preleased Premises, it shall give a prior notice to Party B and shall, in its construction work, try to avoid affect on the normal use by Party B of the Leased/Preleased Premises. The supporting facilities of the Leased/Preleased Premises include but not limited to the connection points of power supply, water supply, telecommunication facilities, water drainage pipelines, sewage discharge pipelines as well as parking spaces, internal roads, elevators, stairs, etc.

 

11.11  Party A may carry out maintenance, reconstruction, repair and fit-out engineering as required outside the Leased/Preleased Premises. If the public passages are required to be closed or changed due to the aforesaid engineering, Party A shall inform Party B of such requirement 10 days in advance by making announcement in the park or in written form and shall provide backup passages with appropriate traffic capacity, and shall avoid, to the largest extent possible, interfering or causing inconvenience to Party B by such engineering and consequences thereof.

 

12. Return of the Leased/Preleased Premises

 

12.1          Upon the expiry or rescission or early termination hereof, Party B shall, according to the handover (return) standards stipulated in Annex II and Annex III hereto, reinstate the Leased/Preleased Premises to its original state and, upon the written confirmation of the property management office entrusted by Party A, deliver the Leased/Preleased Premises to Party A (unless otherwise provided hereunder and save for normal wear and tear) and shall complete, within 10 days before the expiry of the Lease Term or within 20 days after the date of rescission or termination hereof, formalities for change or cancellation of all administrative registration/filing in relation to the Leased/Preleased Premises (if any, including but not limited to the cancellation of business and tax registrations with the Leased/Preleased Premises as the registered address and the cancellation of lease contract registration and filing); before the expiry of the stipulated period for delivery of the Leased/Preleased Premises, Party B shall still pay Rent. Should Party B fail to deliver the Leased/Preleased Premises after the specified deadline, it shall bear an occupation & use fee in an amount equal to twice of the current daily Rent for each day of delay, accrued from the date following the expiry date.

 

12.2          After the Leased/Preleased Premises are returned to Party A, all articles, facilities and equipment (if any) left behind by Party B in the Leased/Preleased Premises shall be kept by Party A for three working days; if Party B fails to pick up such articles after such three working days, it shall be deemed that Party B abandons such articles and automatically waives the ownership of and use right in and to such articles, facilities and equipment, which may be disposed of by Party A at its free discretion; any loss caused by such disposal to Party B or any third party shall be borne by Party B. Party B may not recover such loss from Party A.

 

12.3          Upon the expiry or rescission or early termination hereof, if Party B is unable to deliver the Leased/Preleased Premises to Party A and to complete formalities for change or cancellation of all administrative registration/filing in relation to the Leased/Preleased Premises (if any, including but not limited to the cancellation of the business and tax registrations with the Leased/Preleased Premises as the registered address and the cancellation of lease contract registration and filing) before the deadline specified in Article 12.1 hereof, Party B shall pay an occupation & use fee to Party A in an amount equal to twice of the current daily Rent for each day of delay during the period from the date following the expiry or rescission or early termination hereof to the date on which Party B delivers the Leased/Preleased Premises, completes the formalities for change or cancellation of all administrative registration/filing in relation to the Leased/Preleased Premises pursuant to the aforesaid stipulations. (For the avoidance of doubt, the Parties confirm that the occupation & use fee stipulated in this Article and the occupation & use fee in Article 12.1 are not in addition to each other.) Notwithstanding of the foregoing, during this period, Party A shall have the right to shut off the supply of water, electricity, gas and communication to and all other property management services for the Leased/Preleased Premises and also have the right to specify a deadline for the delivery of the Leased/Preleased Premises by Party B. If, during such period, Party B is still unable to deliver the Leased/Preleased Premises, any article left behind by Party B in the Leased/Preleased Premises shall be deemed abandoned by Party B, and Party A shall have the right to take possession of the Leased/Preleased Premises.

 

 

12.4          When this Contract is rescinded or terminated ahead of schedule due to any breach of Party A, Party B does not need to reinstate the Leased/Preleased Premises, but shall complete formalities for change or cancellation of all administrative registration/filing in relation to the Leased/Preleased Premises within the period stipulated in Article 12.1.

 

13. Sublease and Lease Expansion

 

13.1 Upon the written consent of Party A, Party B may sublease the Leased/Preleased Premises during the Lease Term to a third party designated by it, and shall furnish to Party A the sublease contract signed with such third party. The term of the sublease may not be longer than the then remaining Lease Term.

 

13.2 Party B undertakes to abide by the provisions of Shanghai Property Lease Regulations  and may not sublease the Premises under the following circumstances;

 

13.2.1 Party B defaults in the payment of Rent to Party A;

 

13.2.2 Party B builds in the Premises without authorization; and

 

13.2.3 The Premises are still in the prelease state.

 

13.3 All legal risks arising from the sublease made by Party B, including but not limited to division, dispute resolution, compensation for default, etc., shall be borne by Party B. All claims made against Party A therefor shall be compensated in full by Party B.

 

13.4 Upon the expiry of the Lease Term, if the Subtenant fails to move out of the Premises on schedule, Party A shall have the right to dispose of any articles left behind. All legal liabilities arising therefrom h shall be borne by Party B and the Subtenant.

 

13.5 During the Lease Term fixed herein, if Party B requires expanding the lease, it shall send a three months’ written notice to Party A, and such notice shall be given three months before the lease expiry date specified herein. The conditions for expanded lease shall be determined by Party A and Party B through consultation.

 

14. Party A’s Obligations

 

14.1 Party A shall provide the Premises in its normal, usable and safe state according to the provisions hereof and shall deliver the same to Party B for use on time.

 

 

14.2 Party A shall warrant that the roofs, main structure, walls, water pipelines and cables & wires, etc. of the Premises are in a normal and usable state.

 

14.3 Party A shall provide services and facilities stipulated herein to Party B.

 

15. Party B’s Obligations

 

15.1 Party B shall, pursuant to the provisions hereof, pay Rent and Performance Bond in full to Party A on time and shall, pursuant to the Property Management Contract and/or the Property Management Convention, pay, including but not limited to, property management fee, fit-out deposit (if any) and Other Charges to the Property manager on time and in full.

 

15.2 Party B shall, pursuant to this Contract, the Property Management Contract and the Property Management Convention, use the Leased/Preleased Premises and the Property, and shall abide by all provisions of this Contract, the Property Management Contract and the Property Management Convention.

 

15.3 Party B shall operate business by law and in compliance with the regulations of the State, shall pay to competent government departments various taxes and charges incurred in connection with the business operation of Party B, and shall assume credits, debts and legal liabilities independently.

 

15.4 Party B shall abide by applicable laws of the State and Shanghai Municipality and the stipulations hereof and shall, if its violation of provisions of any law or stipulations hereof causes any loss to Party A, be responsible for compensation.

 

15.5 Party B hereby agrees and confirms to waive the right of first refusal to the Premises.

 

16. Contract Termination and Liability Exemption

 

16.1     Party A and Party B agree that this Contract shall terminate during the Lease Term under any of the following circumstances and the Parties shall not assume any liability to each other:

 

16.1.1 The right to use the land within the scope of the Leased/Preleased Premises is taken back by the State by law;

 

16.1.2 The Leased/Preleased Premises are requisitioned under law for social and public interests;

 

16.1.3 The Leased/Preleased Premises are listed in the permitted house demolition scope by law as required by urban construction;

 

16.1.4 If, due to reasons not attributable to the Parties, the Leased/Preleased Premises are damaged, lost or are identified as dangerous Property and cannot be reinstated to the leasable state upon repair; or

 

16.1.5 Party A has informed Party B before lease that the Leased/Preleased Premises have been mortgaged and then the Leased/Preleased Premises have to be disposed of.

 

16.2     The demolition that has been approved by government or that has gone through normal and legal approval procedures shall be carried out according to national demolition regulations and applicable local demolition rules.

 

 

16.3     Party B acknowledges that Party A does not need to make compensation and assume other legal liabilities to Party B (including its employees, agents, labors, contractors, visitors, etc.) and any third party, including the Subtenant, for any consequences arising from any event, including the following, caused by reasons not attributable to Party A:

 

16.3.1 Necessary maintenance and repair work to the building as well as service disablement of public facilities caused by reasons not attributable to Party A (including unexpected facilities failure, including but not limited to with air-conditioning, electricity, gas, etc.);

 

16.3.2 Any economic loss caused to Party B or any other third parties and any damage, interruption or inconvenience caused by or through any defect in or breakdown of any of elevators, escalators, and air-conditioning equipment;

 

16.3.3 Any economic loss or damage caused to Party B or any other third parties by or through the failure, breakdown, or suspension of power supply, water supply and gas supply;

 

 

16.3.4 Any economic loss or damage caused to Party B or any other third parties by or through overflow, leakage, smoke, fire or escape of any other substances or things in any place due to reasons not attributable to the quality of the Premises;

 

16.3.5 Any economic loss or damage caused to Party B or any other third parties by or through the influx of rain water or other water into any part of the Leased/Preleased Premises due to reasons not attributable to the quality of the Premises;

 

16.3.6 Any economic loss or damage caused to Party B or any other third parties by or through the breeding of rats, termites, cockroaches and other insects;

 

16.3.7 Any economic loss or damage caused to Party B or any other third parties by or through stealth or robbery; and

 

16.3.8 Any loss or injury or death caused by accidents beyond the purview of Party A or beyond the reasonable operation, control, precautionary measures of Party A.

 

16.4     Party B may not, on the ground of any security-related issues, reduce Rent or suspend the payment of Rent or Other Charges payable hereunder.

 

17. Rescission of Contract and Liabilities for Breach of Contract

 

17.1     If Party B delays in paying any Rent, Performance Bond or Other Charges, it shall, from the date following the due date, pay an interest on overdue payment equal to 0.05% of the total payable yet unpaid amount for each day of delay, until Party B makes the payment in full.

 

17.2     Party A and Party B agree that, under any of the following circumstances, a Party may rescind this Contract by notifying the other Party in writing. The breaching Party shall pay the non-breaching Party liquidated damages equal to three times of the monthly Rent; if any loss is caused to the non-breaching Party, and the paid liquidated damages are insufficient to make up for such loss, the breaching Party shall also pay the difference between the loss and the liquidated damages:

 

17.2.1 Party A fails to deliver the Leased/Preleased Premises on schedule and still fails to do so within seven days after the specified date of delivery;

 

17.2.2 The Leased/Preleased Premises handed over by Party A have defects that may endanger the safety of Party B;

 

17.2.3 Party B changes the usage of the Leased/Preleased Premises without the consent of Party A;

 

17.2.4 The main structure of the Leased/Preleased Premises is damaged due to causes attributable to Party B;

 

17.2.5 Party B subleases the Leased/Preleased Premises or transfers the right to lease the Leased/Preleased Premises to others, or exchanges the Leased/Preleased Premises with others without approval;

 

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17.2.6 Party B delays in paying any Rent and/or Other Charges consecutively for more than 30 days and still fails to do so within three days after being so demanded by Party A in writing;

 

17.2.7 Party B fails to pay the Performance Bond during the period specified herein and such delay exceeds [5] days;

 

17.2.8 Party B delays, for more than 30 days accumulatively, in brining the amount of Performance Bond to its full amount after Rent adjustment or deduction of the Performance Bond and still fails to do so within three days after being so demanded by Party A in writing;

 

17.2.9 The project carried out by Party B in the Leased/Preleased Premises has caused serious pollution of the surrounding and park environment;

 

17.2.10 Party B occupies the part beyond the Leased/Preleased Premises without the consent of Party A and fails to make corrections after the written notice given by Party A.

 

17.2.11 Party B stores inflammable, explosive, toxic and other hazardous articles in the Leased/Preleased Premises without special fire approval document for hazardous articles and the consent of Party A;

 

17.2.12 Party B is subject to liquidation or dissolution or enters the bankruptcy proceedings;

 

17.2.13 Unless otherwise provided herein, Party B fails to fulfill any obligations hereunder and/or contravenes any representation, undertaking, warranty or declaration hereunder and fails to make corrections within 30 days after so being pointed out by Party A in writing.

 

17.3     If Party A exercises the right to unilaterally rescind the Contract or if Party B delays in paying any Rent and/or Other Charges consecutively for more than 30 days, Party A shall have the right to suspend the supply of water, electricity, gas, communications, etc. to the Leased/Preleased Premises as well as other property management services and take possession of the Leased/Preleased Premises, in which case any loss caused to Party B or Party B’s Subtenant by such acts of Party A shall be borne by Party B. Before the expiry of the time limit required by Party A for the delivery of the Leased/Preleased Premises by Party B, Party B shall still pay Rent. Should Party B fail to deliver the Leased/Preleased Premises after the deadline designated by Party A, it shall bear an occupation & use fee in an amount equal to twice of the current daily Rent for each day of delay, commencing on the date following the expiry date.

 

17.4     If Party B breaches the Contract, Party A shall have the right to pursuit for liablities of Party B for such breach, regardless whether Party A has received Rent or not. The failure on the part of Party B to pay Rent or Other Charges in full pursuant to the provisions hereof or the receipt by Party A of insufficient Rent or Other Charges shall not be deemed that Party A accepts such breach or insufficiency, nor shall it affect the right of Party A to recover such insufficiency, or affect the right of Party A to take other measures according to provisions of this Contract and applicable law.

 

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17.5 Unless otherwise provided herein, if Party A fails to fulfill any obligations hereunder and/or breaches any representation, undertaking, warranty or declaration hereunder and fails to make corrections within 30 days after being pointed out by Party B in writing, Party B shall have the right to correct the breach of Party A on its behalf and to require Party A to bear the expenses actually incurred.

 

17.6 If this Contract is held to be invalid/revocable due to reasons attributable to Party B, Party A shall forfeit the Performance Bond paid by Party B and, if the Performance Bond is insufficient to cover the losses of Party A, shall also compensate for the difference between the caused loss and the Performance Bond. If this Contract is held to be invalid/revocable due to reasons attributable to Party A, Party A shall return the Performance Bond received to Party B and pay liquated damages to Party B in an amount equal to the then three months’ Rent for the Leased/Preleased Premises; if the compensation is insufficient to cover the losses of Party B, Party A shall also compensate for the difference between the caused loss and the compensation.

 

17.7 Party A and Party B agree that, except for the circumstances set forth herein, if Party A or Party B requires unilaterally rescinding this Contract or rescinds this Contract without authorization, it shall assume the liabilities for default to the other Party, and the Parties agree to deal with such default according to the standards for default liabilities set forth in Article 17.2.

 

18. Force Majeure

 

18.1    Force majeure events include but not limited to disabled service or interruption of public facilities arising from war, civil commotion, terrorist acts, fire, flood or government regulation or restriction, and extremely adverse weather.

 

18.2    During the Lease Term, if any force majeure event makes it impossible to perform this Contract on specified conditions, the Party encountering force majeure shall promptly notify the other Party and shall, within 10 days, provide valid proof on details of force majeure and on reasons for impossibility of performance, impossibility of full performance, or delay in performance. If any Party is prevented from performing its obligations due to force majeure event, the time for such performance shall be correspondingly postponed for the duration of the force majeure.

 

18.3    Party A and Party B shall decide through consultation whether to rescind the Contract, or to partially exempt the performance of the Contract, or to delay the performance of the Contract according to the influence exerted by force majeure on the performance hereof. Where the force majeure event causes any Party to delay the performance of related obligations herein or prevents such Party from the performance, for more than 10 days, either Party may give a one month’s written notice to the other Party, and terminate this Contract.

 

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18.4    When this Contract terminates by reason of a force majeure event, it shall be deemed terminated upon expiry, provided that the liabilities assumed by any Party for default committed before the termination hereof may not be exempted. Party B shall, within 10 working days from the termination date hereof, settle all actually incurred Rents and Other Charges with Party A, and Party A shall return Party B’s Performance Bond (if any) within 15 days after this Contract terminates and after Party A receives the aforesaid Rent and charges and after all conditions mentioned in Article 9.4 hereof are satisfied. Thereafter no Party shall assume any compensation liability for any damage caused to the other Party by force majeure.

 

18.5    Both Parties shall be obligated to take measures to prevent further losses. If the intentional act or omission by one Party causes any further loss, the other Party may require such Party to assume corresponding compensation liability.

 

19. Notice

 

19.1     All notices and communications made hereunder shall take the written form and shall be deemed effectively given under the following circumstances:

 

(1)        When such notice is sent to the receiving Party if by personal delivery;

 

(2)        When it is sent during normal business hours to the receiving Party if by confirmed e-mail or fax or on the working day following the date of transmission if it is sent during non-normal business hours;

 

(3)        Seven days after it is sent if by registered mail or certified mail, with return receipt required in both cases; or

 

(4)        Three days after it is handed over to courier service if via courier, which has been supported by a written receipt.

 

19.2     The following addresses of the Parties shall be taken as the addresses for the purpose of notice:

 

i. Party A: Shanghai Zhangjiang Hi-tech Park Development Co., Ltd.

 

ii. Address: Tower B, 8/F, Zhangjiang Mansion, 560 of Songtao Road

 

iii. Fax number: 50800492

 

iv. Telephone number: 38959000

 

v. Addressee: Shen Zhong

 

vi. E-mail: shenz@600895.com

 

vii. Party B: Yao Fang Information Technology (Shanghai) Co. Ltd.

 

viii. Address: Building 10, 115 of Lane 572, Bibo Road, Pudong New area, Shanghai

 

ix. Fax number: 20536666

 

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iv. Telephone number: 20536666

 

xi. Addressee: Cui Chenyuan

 

xii. E-mail: cuichenyuan@l11 .com.cn

 

19.6           If a Party changes its name, address, e-mail, addressee and other aforesaid contact information, such Party shall give a written notice to the other Party in a timely manner and such notice shall be affixed with the official seal.

 

20. Governing Law and Dispute Resolution

 

20.1     The formation, effectiveness, construction and performance of this Contract shall be governed by applicable laws and regulations of China in force.

 

20.2     Any dispute or claim arising from or in connection with this Contract shall be resolved by the Parties through friendly consultation. If the consultation fails, any Party may file a lawsuit before the competent people’s court in the place where the Property is located. The Parties agree that such people’s court has exclusive jurisdiction.

 

20.3     In the course of resolution of any dispute under this Contract, any Party shall be obligated to continue performing the other undisputed obligations herein.

 

21. Miscellaneous

 

21.1     Party A has signed an Entrusted Operation Agreement with [/] Co., Ltd, whereby Party A authorizes and entrusts such Company to take charge of the collection of Rent for the Property and other matters related to lease, operation and management.

 

21.2     The Parties hereto shall strictly abide by all provisions hereof, obey the contractual spirit, and strictly maintain the confidentiality of business secrets and do not disclose any provisions (including but not limited to the provisions on Rent, Performance Bond, etc.) hereof to any third party[excluding directors, employees and professional advisers (including legal and financial advisers) that may be required to assess the provisions or contents hereof and government departments that accept filing and registration applications, provided that the Party shall ensure that the aforesaid excluded personnel abide by the confidentiality obligation applicable to itself hereunder].

 

21.3     If Party B hereto is an investor or the representative authorized by the investor of a company that has not been officially established, it shall assume liabilities and obligations of the Tenant hereof before the establishment of the company. After the company officially becomes a legal entity, Party B warrants that the company will sign tripartite agreement for change of leasing entities with Party A and Party B in a timely manner. During the performance hereof, Party B shall assume joint and several warranty liabilities for the performance by the company based on the Contract.

 

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21.4     This Contract shall take effect after being signed and sealed by the Parties. Within 15 days after the Contract takes effect, Party A shall cooperate with Party B in handling the registration and filing with the office of the real estate trade center at the place where the Property is located and obtaining a certificate on property lease registration; If this Contract is amended or terminated after the registration and filing hereof, Party A shall give cooperation to Party B in handling the formalities for change and cancellation of registration and filing with the original registration authority,

 

21.5     Any matter not stated herein shall be determined by Party A and Party B through consultation by concluding a supplementary agreement. The supplementary agreement and annexes hereto shall form an integral part of this Contract.

 

21.6     This Contract and its annexes are made in three copies, with Party A holding one copy and Party B holding two copies, and all of these counterparts shall have the same legal effect.

 

21.7     Other supplementation: none.

 

22. Annexes

 

The following annexes attached hereto shall constitute an integral part of this Contract and shall have the same legal effect as of this Contract. If there is any discrepancy between the provisions hereof and that of any annex hereto, the provisions hereof shall prevail. All annexes will terminate upon the termination hereof.

 

 

Annex I: Floor Plan of the Leased/Preleased Premises

 

Annex II: Handover Standards and List of Existing Fit-outs, Ancillary Facilities and Equipment

 

Annex III: Scope, Conditions and Requirements for Use of Common Area

 

Annex IV: Fire Safety Undertakings

 

Annex V: Production Safety Undertakings

 

 

Lessor (Party A):

 

Shanghai Zhangjiang Hi-tech Park Development Co., Ltd.

 

(seal)

 

/s/Special seal for contract purposes of Shanghai Zhangjiang Hi-tech Park Development Co., Ltd.

 

Representative (Signature):

 

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Lessee (Party B):

 

Yao Fang Information Technology (Shanghai) Co., Ltd.

 

(seal)

 

/s/Seal of Yao Fang Information Technology (Shanghai) Co., Ltd.

 

Representative (Signature):

 

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Annex I: Floor Plan for Leased/Preleased Premises

 

 

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Annex II: Handover Standards and List of Existing Decoration, Ancillary Facilities and Equipment

 

In view of Party B’s willingness to accept all redecoration of the former tenant Shanghai Yuanmai Trade Co., Ltd. for Room 301, 302, and 401, Party B agrees that Party A shall hand over such rooms to Party B on “as is” basis. The leased premises shall be restored to meet the property handover standard (except for natural wear and tear) on the date of expiration or early termination (irrespective of reason) of the lease contract, and the leased premises shall be returned to Party A in accordance with Article 12.1.

 

The above-mentioned standard for the handover y of the rooms shall mean the standard for Party A to hand over the leased rooms (including ancillary facilities and equipment), as set forth in the House Transfer & Acceptance Certificate or similar house handover documents. It means that Party B is obliged to dismantle all the redecoration made by Shanghai Yuanmai Trade Co., Ltd. with respect to Room 301, 302, and 401 and restore those rooms according to the standard applicable to Party A’s handover of the leased rooms (including ancillary facilities and equipment). Party A shall not be obligated to repair any defects in the secondary decoration.

 

Among the rooms, Room 402 shall be delivered according to the property handover standard. Party B shall return the leased room to its original condition (except for natural wear and tear) on the expiration date of the lease period or on the date of early termination of the contract irrespective of reason, and shall return the leased room to Party A according to Article 12.1.

 

If there is any inconsistency between the above provisions and other provisions of this contract, the above provisions shall prevail.

 

Annex III: Scope, Conditions and Requirements for Use of Common Area

 

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Annex IV: Fire Safety Undertakings

 

To: Shanghai Zhangjiang Hi-Tech Park Development Co., Ltd.

 

To ensure fire safety and prevent fire accidents, we now solemnly makes the following undertakings:

 

1.                  We will earnestly implement the fire safety responsibility system, clarify responsible persons and managers for fire safety, and their duties, strengthen fire safety management, and resolutely prevent the occurrence of fire accidents.

 

2.                  If we intend to reconstruct, expand or redecorate the leaseed rooms, it can only be carried out with the permission of the firefighting authority, you and the property management company.

 

3.                  We will regularly carry out fire inspections, remove hidden fire dangers in a timely manner, and guarantee a fire inspection on every day.

 

4.                  There is no use of open fire and no fire-related construction in the leaseed rooms. We will strictly implement the operating license management regulations, and operation license shall be obtained in strict accordance with applicable procedures and related measures shall be taken for the use of fire, confined space, temporary electricity, high place operations, groundbreaking and other special operations. Operating is forbidden without such license.

 

5.                  We will not use the leased rooms as staff dormitory and will not allow staff to stay there overnight.

 

6.                  Fire facilities, equipment and evacuation signs will be set strictly in accordance with national regulations, and maintenance will be made regularly to ensure soundness and effectiveness; and fire-fighting facilities and equipment will not be damaged, or used, dismantled or deactivated without approval. In case of failure of fire hydrant or fire extinguishing appliances, and damage of automatic fire extinguishing and automatic alarm systems, we will immediately repair or report to you and the property management company you engages.

 

7.                  We will resolutely not take up and block evacuation routes, not lock emergency exits, and maintain evacuation routes and emergency exits unblocked. We will not install glass, mirrors or otherwise that may mislead evacuation in the evacuation passages and emergency exits.

 

8.                  We will strengthen the management of use of fire, electricity, oil and gas, and not add any wire without permission. We will not use, store and operate any kind of inflammable and explosive dangerous chemicals in the leased rooms, and set off fireworks and firecrackers in the leased rooms and the public areas in which such rooms located.

 

9.                  We will not use flammable materials such as polyurethane foam or soft packs, carpets, sofas, curtains or otherwise that are not fire-retardant to decorate the leaseed rooms.

 

25

 

10. We will formulate and continuously improve our firefighting and emergency evacuation & rescue plan, and regularly carry out fire prevention education and fire evacuation drills. We will constantly raise employees’ awareness of fire prevention and common sense of self-protection and self-rescue, and strengthen their skills to guide visitors to evacuate.

 

11. We will seriously participate in the safety-related activities and trainings organized by you, and accept and cooperate with the safety inspections organized by you.

 

12. We will proactively invest funds and manpower and materials to eliminate and correct strictly as required any hidden fire danger discovered in the inspection of applicable public security organs and fire protection agencies, your safety inspections, and our self-inspections.

 

13. In the event of a fire, we will immediately start rescue work and take the responsibility to protect the post-fire site and assist the fire authority in investigating the cause of the fire.

 

14. If we fail to fulfill the above commitments, we will accept the punishment imposed by the fire authority and undertake default liability unconditionally in accordance with the lease contract signed with you. If there is a fire accident, we will voluntarily undertake relevant legal responsibilities and consequences, and actively compensate for the losses cased to you and any third parties.

 

Signature (seal):

 

/s/ Seal of Yao Fang Information Technology (Shanghai) Co., Ltd.

 

Date:

 

26

 

Annex V: Production Safety Undertakings

 

To: Shanghai Zhangjiang Hi-Tech Park Development Co, Ltd.

 

To ensure safe production and prevent accidents involving safety responsibility, we now solemnly make the following undertakings:

 

1.                  We will carefully implement national guidelines, policies, laws and regulations as well as rules and regulations on work and production safety.

 

2.                  We will carry out in-depth safety and integrity development activities, and establish and improve our security and integrity mechanism.

 

3.                  We will strictly implement our non-delegable and independent responsibility for corporate safety production and the safety responsibility system at all levels, and improve safety production rules and regulations.

 

4.                  We will establish hidden danger investigation and management mechanism, realize systematic, standardized and regular hidden danger investigation and management, and eliminate all kinds of hidden dangers in a timely manner.

 

5.                  We will vigorously promote the standardization of safety and quality, and actively create intrinsic safety.

 

6.                  We will not use techniques and equipment that have been abandoned, and will not use the facilities having poor safety reliability (no security protection).

 

7.                  We will strengthen team construction, reinforce on-site management, and deploy safety management personnel as required.

 

8.                  We will not violate applicable rules to give direction or carry out operation.

 

9.                  We will not use, store, operate or produce hazardous chemicals in violation of regulations.

 

10.           We will provide employees with daily safety trainings and new workers with three-level safety education in accordance with applicable regulations to improve the staff awareness of safety.

 

11.           We will strictly implement the operating license management regulations, and operation license shall be obtained in strict accordance with applicable procedures and related measures shall be taken for the use of fire, confined space, temporary electricity, high place operations, groundbreaking and other special operations. Operating is forbidden without such license.

 

12.           We will strengthen prevention of occupational hazards and prevent occurrence of occupational hazards.

 

13.           We will strictly implement the “Three Simultaneous lease (simultaneous design, construction and use)” provisions in relation to construction projects, and will not make  any illegal construction during the lease term.

 

27

 

14.           We will participate in the safety activities and trainings organized by you.

 

15.           We will accept any safety inspections organized by you, and promptly implement corrective actions to correct the problems identified.

 

We sincerely invite  you to supervise our compliance with the above commitments. If we fail to fulfill the above commitments, we will voluntarily and unconditionally accept the punishment imposed by the safety management authority, and bear default liability in accordance with the contract signed with you. If there is a security incident, we will voluntarily undertake relevant legal responsibilities and consequences, and actively compensate for the losses caused to you and any third parties.

 

Signature (seal):

 

/s/ Yao Fang Information Technology (Shanghai) Co., Ltd.

 

Date:

 

28

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