Document:

Exhibit 10.22

 

Premise Lease Agreement

 

Lessor: Gangji Logistics (Shenzhen) Co., Ltd. (hereinafter referred to as Party A)

 

Lessee: Shenzhen Yungang EDC Technology Co., Ltd. (hereinafter referred to as Party B)

 

Party A and Party B enter into this Contract by consensus through friendly negotiation according to the Contract Law of the People’s Republic of China and other relevant national regulations to clarify the rights and obligations of the lessor and the lessee.

 

Article 1: Leased object and purpose

 

1.                          Party A agrees to rent out its property located at No.51-5, Hongliu Road, Futian Free Trade Zone, Shenzhen (hereinafter referred as the leased housing) to Party B. The housing, with the construction area of 8431.6m2, is leased by Party B as status quo. Party B has fully understood the current status and use of the leased housing. The leased house ownership certificate is shown in the appendixes. The house ownership certificate number is [REDACTED]1.

 

2.                          Party B uses the leased housing as the data center for data processing, data center site services, cloud services, disaster recovery services and other IT outsourcing services.

 

Article 2: Lease term

 

1.                          The housing lease period is fifty years from November 2, 2015 to November 1, 2030.

 

2.                          The rent-free period is 3 months. Party A gives a rent-free period of three months to Party B from the housing delivery.

 

3.                          Both parties shall negotiate on the contract renewal 6 months prior to the expiry of the Contract term. Party B enjoys the priority right to lease under equal conditions. If both parties fail to reach a consensus 3 months prior to expiry of the Contract term, Party B is deemed to give up renewal and the Contract is automatically terminated at expiry.

 

Article 3: Special terms

 

1.                          According to Party B’s requirements for the power supply capacity and the lines, both parties declare the power supply capacity increase project jointly and the power supply capacity is 2*6300KVA (subject to final technical scheme. Party B provides the final technical scheme for

 

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power utilization within 15 days after signing of the Contract).  Party A provides necessary evidential documents and handling procedures and provides necessary assistance in construction process. Party B is responsible for providing technology, providing the materials, drawings and documents required by the power supply department and bearing all relevant costs.

 

2.                          If the power utilization scheme proposed by Party B fails to be effectively replied by the power supply department not for Party A’s reasons, both parties agree to terminate the Contract without bearing the liability for breach of contract, but the lease deposit is not returned. In this period, Party B shall not use or dismantle the leasehold and supporting equipment and facilities; otherwise, Party B shall reinstate after termination of the Contract; in case of failure to reinstate, Party B shall reimburse the estimated price

 

3.                          If the power utilization scheme proposed by Party B fails to be effectively replied by the power supply department and Party B requires terminating the lease contract in advance, Party B must notify Party A of the reasons for failure to perform the agreement in writing before December 31, 2015, the Contract is terminated automatically and both parties do not bear the liability for breach of contract, but the lease deposit is not returned. In case of failure to perform or delay in performance of the written notice obligations herein, the lease deposit is not returned and Party B shall still bear the corresponding liability for breach of Contract.

 

Article 4: Delivery of leased housing

 

1.                          Both parties agree that the leased housing is delivered on November 2, 2015.

 

2.                          The leased housing is delivered in status quo and both parties shall handle the leased housing handover procedures on the delivery date. When both parties accept the leased housing and sign the house handover sheet (as shown in Appendix 4), Party A is deemed to have fulfilled the delivery obligations of the leased housing. The house handover sheet is used as the acceptance basis for Party A to deliver the leased housing to Party B and for Party B to return the leased housing to Party A at the termination of the Contract.

 

3.                          If Party A fails to deliver the leased housing on the delivery date without justified reasons or Party B fails to receive the leased housing from Party A on the delivery date without justified reasons, the default party shall pay the liquidated damages of RMB[REDACTED]2 for each day overdue.

 

Article 5: House rent

 

1.                          The rent of the leased housing is charged according to the construction area (8431. 6m2) and the

 

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rent standard is shown in Appendix 8.

 

2.                          Payment account: Party B shall pay all rents and lease deposits of the leased housing under the Contract to the following account of Party A

 

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Account name:      [REDACTED]3Account No.: [REDACTED]4

 

Account name:      [REDACTED]5

 

Article 6: Lease deposit

 

1.                          After signing of the Contract, Party B shall pay the lease deposit RMB[REDACTED]6 equivalent to [REDACTED]7 month rent. In case of failure to pay the lease deposit to Party A in full within [REDACTED]8days after signing, Party B is deemed to refuse performance of the Contract and the Contract is terminated automatically.

 

2.                          As the guarantee for Party B to commit to implement relevant contract terms, the lease deposit may be used for breach compensation and for charge against the accounts payable upon expiry of the Contract; if Party B is confirmed to have fully fulfilled the obligations or responsibilities, the lease deposit is returned by Party A fully free of interest.

 

3.                          Party B shall complement the lease deposit to the amount equivalent to [REDACTED]9 month rent in the [REDACTED]10th year and [REDACTED]11th year before October 31 in the two years. That is, Party B shall complement the lease deposit to ¥[REDACTED]12before October 31, 2021 and to ¥[REDACTED]13 before October 31, 2026 (i.e. complement the balance on the basis of the deposit for previous year).

 

Article 7: Utilities and other costs

 

1.                          The utilities arising from Party B’s use of the leased housing is charged according to the charging standards of the water supply and power supply departments in the premises of the leased housing. Party A agrees Party b to apply for power supply and water supply and open an account independently and the utilities are directly checked with the water supply and power

 

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supply departments independently.

 

2.                          The installation procedures and the costs arising from installation of digital optical fiber, broadband network, telefacsimile and other communication equipment by Party B for business requirements are borne by Party B, but Party A shall coordinating in opening the tube wells and channels.

 

Article 8: Rent and cost payment and settlement method

 

1.                          Party B shall pay the rent to Party A with the payment cycle of month (natural month).Party B shall pay the monthly rent before the [REDACTED]14th day each month and Party A shall provide a compliance invoice of equal amount within [REDACTED]15days upon receipt of the rent.

 

2.                          All costs receivable by Party A involved in implementation of the Contract shall be paid by Party B according to the period stipulated in the Contract. In case of legal holidays, the period is postponed. In case of overdue payment, the liquidated damages shall be charged at [REDACTED]16‰ of the accounts payable for each day overdue.

 

Article 9: Leased housing management

 

1.                          The ownership nature of the leased housing shall not be changed as a result of signing and performance of the Contract.

 

2.                          Party A may be entrusted by Party B to provide indoor decoration, business affairs, indoor cleaning and other services at the cost of Party B;

 

3.                          Party B may make secondary decoration of the leased housing upon approval of Party A.If required, Party B must handle relevant application procedures according to relevant national provisions at its own cost;

 

4.                          Any operation affecting the building structure of the leased housing shall be performed with the consent of Party A;

 

5.                          Any person of either party may enter the area of the other party with effective documents approved or recorded by the other party;

 

6.                          The property maintenance (except major structure) incurred in Party B’s leased area is borne by Party B;

 

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7.                          Party B is responsible for management in the leased housing;

 

8.                          Party B shall not engage in the behavior violating the national regulations in the leased housing;

 

9.                          Neither party may, in any name, place the inflammable, explosive or corrosive and other hazardous articles in the building of the leased housing as warehouse. Either party concealing the cargo nature and bringing in such cargo shall bear all resulting personal and property losses;

 

10.                   Party B shall move out of the leased housing and move out all equipment, furniture, documents and sundries and obtain Party A’s written certificate to get back the lease deposit within 15 days after expiry of the Contract. For the articles not moved out overdue, Party B is deemed to give up their ownership and Party A has the right to dispose of independently; for each day overdue, Party B shall pay the amount [REDACTED]17 times the rent payable on the day.

 

11.                   The movable articles acquired by Party B in the lease term are recovered by Party B. The part set up, transformed and decorated by Party B, except that not treated by Party B with the written consent of Party A (including generator set and other equipment), shall be recovered by Party B; if Party B entrusts Party A to recover, the costs incurred are borne by Party B.

 

12.                   Both parties apply for power supply stop jointly to the power supply department one month before surrender of tenancy by Party B and the power supply department stops power supply for the leased housing since the surrender date at the cost of Party B. If Party B does not have any account payable or default and compensation costs after settling the electricity charges of the month with the power supply department, Party A shall return the lease deposit to Party B. Party A shall make a written request to Party B to reserve the power supply for the leased housing and both parties handle the change procedures in the power supply department and sign a power supply transfer related contract.

 

13.                   Party B, with a prior written application to Party A, has the right to independently or allow its affiliated companies to set up signs in the project land use scope and the house building and has the right to name the building. The earnings, if any, are fully owned by Party B. Party A shall make positive coordination and shall not interfere in any form.

 

Article 10: Sublease and inheritance of lease right

 

Party B may sublease the leased housing under the Contract to a third party within the lease term and shall not be relieved from the obligations undertaken for Party A, including but not limited to rent payment for the sublease.

 

In case of merger, division, liquidation and bankruptcy of Party B, Party A agrees the organization or individual inheriting the rights to continue to perform the Contract and the Contract

 

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responsibilities are not exempted therefore.

 

Article 11: Rights and obligations of both parties

 

I. Rights and obligations of Party A

 

1.                          The ownership of the leased housing is not changed due to signing of the Contract;

 

2.                          Strictly comply with various contract provisions;

 

3.                          Collect rent and other service charges according to the contract terms;

 

4.                          Party A shall provide active coordination during decoration and transformation by Party B;

 

5.                          Party A shall coordinate in the report of power supply capacity increase, fire transformation, energy consumption evaluation and environmental evaluation at relevant costs of Party B;

 

6.                          Party A is responsible for covering the building insurance for the housing provided in the insurance company at the cost of Party A;

 

7.                          For operation in Party B’s leased housing within the lease term, Party A shall notify in advance and obtain the consent of Party B and comply with Party B’s rules and regulations under the guidance of Party B except emergencies.

 

II. Rights and obligations of Party B

 

1.                          Enjoy the right to use and earnings of the leased housing within the lease term;

 

2.                          Properly use the leased housing, actively maintain the housing, immediately take remedial measures and timely notify Party A in case of housing damage;

 

3.                          Make security management and fire check for the leased housing according to the requirements in the national laws, regulations and rules to ensure safety and use safety of the leased housing. Party B shall bear the compensation liability and other legal responsibilities for the damage and loss to the leased housing and the damage to the third party as a result of improper management, maintenance and use by Party B;

 

4.                          Strictly comply with various contract provisions;

 

5.                          Pay the rents and various costs according to the provisions herein;

 

6.                          Party B is responsible for transformation of the leased housing data center, commits to perform all transformations and construction of the leased housing according to national provisions and standards and submits the transformation scheme to Party A for approval before transformation. If required, Party B must handle relevant application procedures according to relevant national provisions;

 

7.                          Party B buys insurance for its equipment, property and business interests in an insurance company at the cost of Party B.

 

8.                          Party B bears the management right and responsibilities of the housing property in the agreement term and is responsible for management, maintenance and repair of the properties including but not limited to power distribution room, generator room, health, water, electricity and fire pipe network (including transformer), elevators and fire control room at the cost of Party B.

 

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Article 12: Commitment and guarantee

 

The commitment and guarantee of Party A to Party B are as follows:

 

1.                          Party A guarantees that it is the legal owner of the leased housing and that the leased housing meets the requirements herein. Party A provides the ownership certificates (land use certificate and project completion acceptance registration form) of the leased housing and provides the copy of the leased housing title deed (as shown in Appendix 1) for Party B when signing the Contract;

 

2.                          Party A’s housing was mortgaged to Shanghai Commercial Bank Co., Ltd. on July 17, 2013 without impact on the signing, effect and performance of the Contract.

 

In case of failure to pay off the debts under the Contract during performance of the mortgage contract signed by and between Party A and Shanghai Commercial Bank Co., Ltd. on the leased housing, Party A shall give a written notice to Party B three months in advance and may sell the leased housing to Party B at a discount. Both parties reach a house sales and purchase contract. Party A pays off the debts of Shanghai Commercial Bank Co., Ltd. with some house purchase price paid by Party B and transfers the ownership of the housing to Party B.

 

If the leased contract cannot continue to be performed since the leased housing mortgagee exercises the mortgage right, Party A is deemed as fundamental breach of contract and shall bear the liability for breach of contract according to the consequences of early termination of the Contract in paragraph 2 of Article 14 herein.

 

3.                          Any change in the ownership of the leased housing in the lease term does not affect performance of the Contract. Party A shall guarantee the transferee to confirm the rights of Party B under the Contract and bear the obligations herein;

 

4.                          If intentionally selling the leased housing in the lease term, Party A shall give a written to Party B one month in advance. Party B has the priority to purchase under equal conditions.

 

5.                          Party A guarantees that signing and performance of the Contract have been subject to necessary consent, approval and authorization;

 

6.                          Party A guarantees that Party B will not be subject to relevant improper interference from Party A within the lease term;

 

7.                          Party A guarantees the qualification related to the housing lease services.

 

Article 13: Unilateral discharge and termination of contract

 

1.                          In case of any of the following behaviors of either party, the other party has the right to unilaterally terminate the Contract and reserve the right to claim:

 

(1)                     Make overdue payment of the rent for more than 30 days (including 30 days);

 

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(2)                     Delay in delivery of the housing for more than 30 days (including 30 days);

 

(3)                     The leased housing does not meet the contract agreement, resulting in failure to achieve the contract purpose;

 

(4)                     Serious violation of the Contract provisions, causing major losses to the other party;

 

(5)                     Either party seriously violates relevant national regulations, resulting the operation stop of the other party for 30 days;

 

(6)                     Violate the commitment and guarantee under the Contract.

 

2.                          Early termination of contract

 

Unless otherwise stipulated herein, neither party may terminate the Contract in advance;

 

Article 14: Liability for breach of contract

 

I. Loss compensation and additional punishment

 

1.                          If violating relevant provisions herein or causing losses to the other party directly for the reasons of the default party, the default party shall compensate for the resulting direct losses to the other party.

 

2.                          Unless otherwise agreed herein, the grave breach party shall compensate the other loss for the other party and pay the liquidated damages equivalent to the [REDACTED]18-month rent.

 

The following behaviors are deemed as grave breach of contract:

 

(1)                     Party A delays in delivery of the housing for more than 30 days (including 30 days);

 

(2)                     Party B delays in payment of the house rent for more than 30 days (including 30 days);

 

(3)                     The leased housing cannot be used normally for more than 30 days (including 30 days) for Party A’s reasons;

 

(4)                     Party B stores the dangerous goods in the leased housing, resulting in major loss; or Party B fails to rectify effectively after Party A makes written opinions;

 

(5)                     Party B violates national regulations, causing that the whole housing area of Party A is restricted for operation or the lessees other than Party B cannot work normally for more than 15 days (including 15 days);

 

(6)                     Other behaviors resulting in serious damage to the leased housing without the consent of Party A;

 

(7)                     Other behaviors violating national regulations or contract provisions and causing major personal, property or reputation damage to the other party.

 

II. Consequences of early termination of contract

 

If the observant party exercises the right to terminate the Contract in advance for breach of the default party, the default party shall pay the liquidated damages at [REDACTED]19% of the

 

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corresponding rent for the remaining lease term to the observant party. If the liquidated damages are insufficient to make up for the resulting losses to the other party, the default party shall continue to bear the compensation liability. Meanwhile,

 

A. In case of default by Party B, the lease deposit is not returned.

 

B. In case of default by Party A, Party A shall return the deposit within 10 days. The losses to Party B include but are not limited to decoration compensation fees, secondary relocation fees, rent loss caused by relocation and loss from early termination of Party B’s customer; Party A shall assist Party B to find an appropriate relocation place. Before signing a formal lease contract with a third party on the relocation place, Party B has the right to refuse to move out from the leased housing.

 

Article 15: Exemption clause

 

1.                          In case of leased housing damage or failure to perform the Contract due to force majeure, both parties do not assume responsibilities. However, both parties may perform the executable part until expiry of the Contract at the request of the obligee in case of elimination of the reasons affecting the contract performance or failure to perform in part in the contract term;

 

2.                          Either party does not assume liability for breach of contract for failure to perform the Contract according to the agreed conditions due to leased housing damage for force majeure; however, the party encountering force majeure shall immediately notify the other party and, within ten days, provide the details of the force majeure and the reasons and effective evidential documents for failure to perform the Contract in whole or in part and the need for delay in the performance. The property loss to Party A and Party B for force majeure within the lease term is handled by respective party.

 

3.                          If the Contract cannot continue to be performed in case of requisition and demolition by government in the lease term, both parties may terminate the Contract without bearing the liability for breach of contract. The compensation obtained by Party B from requisition and demolition is implemented according to the provisions of the land requisition and demolition and relevant laws and regulations.

 

Article 16: Notice

 

Any notice or liaison issued by both parties based on this Contract shall be delivered by registered mail or express delivery in writing to the following address:

 

Party A: Gangji Logistics (Shenzhen) Co., Ltd.()

Address: Room 303, Building 3, Hongji Warehouse, No.2, Yong’an Road, Yantian District, Shenzhen City

 

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Contact:[REDACTED]20

Tel: [REDACTED]21

 

Party B: Shenzhen Yungang EDC Technology Co., Ltd.

Address: Room 1008, Borui Building, No.A26, East Third Ring North Road, Chaoyang District, Beijing City

Contact: Xu Chao

Tel: 010-53228000

 

In case of change in the contact information, either party shall give a written notice to the other party; otherwise, such party shall bear the consequences for failure to notify.

 

Article 17: Confidentiality

 

1.                          The parties to the Contract shall strictly keep the trade secrets (except public information) classified by proper confidential measures and take all reasonable measures to prevent their received materials from being distributed, disseminated, disclosed, copied, misused or contacted by irrelevant personnel. Without permission of the obligee, neither party may provide for the third party or independently use the trade secrets obtained during signing and performance of the Contract;

 

2.                          The confidentiality period finishes 3 years after termination of the Contract;

 

3.                          The trade secrets herein include but are not limited to the Contracts and its appendixes, any cost, operating procedure and other information of either party to the Contract or the information obtained by one party on the commercial activities of the other party.

 

Article 18: Special agreement on subject change

 

Party B intends to establish a new legal entity in the premises of the leased housing for business needs. After industrial and commercial registration of the legal entity, Party A and Party B agree to change the lessee (Party B) of the lease contract to the new legal entity by consensus. Party A shall coordinate in signing relevant subject change agreement.

 

Article 19: Dispute resolution

 

Any dispute arising from or related to the Contract is resolved by both parties through negotiation; if the negotiation fails, either party may apply for arbitration to Shenzhen Arbitration Commission.

 

Article 22: Appendixes to contract

 

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1.                          Party A and Party B provide one copy of the business license for enterprise’s legal person, organization code certificate, tax registration certificate and other qualification certificates required for enterprises respectively (as shown in Appendix 3);

 

2.                          After execution of the Contract, both parties may change or supplement the contract content in writing as the appendixes to the Contract;

 

3.                          The appendixes have equal legal effect with the Contract.

 

Article 21: Execution of contract

 

The Contract is made out in quadruplicate with equal legal effect and takes effect immediately after being signed and sealed by both parties. Party A and Party B hold two copies respectively.

 

 

(No text below)

 

	
Lessor (Party A): Gangji Logistics (Shenzhen)   Co., Ltd.
    	
 
    	
Lessee (Party B): Shenzhen Yungang
    
	
 
    	
 
    	
EDC Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of legal representative of lessor (Party   A):
    	
 
    	
Signature of legal representative of lessee (Party   B):
    

 

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Company (seal):
    	
 
    	
Company (seal):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date of signing: July 6, 2015
    	
 
    	
Date of signing: July 6, 2015
    

 

12Exhibit 10.23

 

 

Contract No.:

 

Tenement Lease Agreement

 

Lessor (hereinafter referred to as “Party A”): Guangzhou South China Advanced Materials Innovation Park Co., Ltd.

 

Lessee (hereinafter referred to as “Party B”): Guangzhou Weiteng Construction Co., Ltd.

 

As a private high-tech business incubator operated and managed by Party A, South China Advanced Materials Innovation Park, with the service objects of scientific and technological enterprises in the new material industry and relevant industries, provides the resident enterprises with office, R&D, pilot plant test, production and business sites, shared facilities as well as marketing, technology R&D, investment and financing, business incubation, application of science and technology projects and other entrepreneur services to reduce the entrepreneurial risks and initial costs and cultivate successful science and technology enterprises. Party A and Party B reach the following contract terms on the matter that Party B leases Party A’s property on the basis of equality, voluntariness and consensus.

 

Article 1: Leased property

 

Party A agrees to rent out the property of G6 building in South China Advanced Materials Innovation Park, No.3 Kefeng Road, Science City, Guangzhou High-Tech Industrial Development Zone (the specific position is shown in Appendix 1: Property Use Plan) to Party B.

 

Party B confirms to have made due diligence for the ownership and supporting facilities of above property and made field investigation and measurement of the property status and actual use area before signing the Contract; if Party A is not obliged to take any action to meet such requirements, Party B will complete relevant matters independently (including but not limited to completing relevant works and handling relevant procedures) to meet such requirements.Party B hereby agrees to lease above property according to its current status.

 

Both parties confirm that the leasable area of the property is 15531m2, including the inner construction area and shared common construction area and shall be used as the basis for any cost measured by area (including but not limited to rent, property management fee and shared utilities) within the leasehold relation between both parties; any other measurement, surveying and mapping and registration results for above property do not affect confirmation of the leasable area by both parties. Even if there is discrepancy between the results and the leasable area, Party A may not return and Party B may not pay additional costs (including but not limited to rent, property management fee

 

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and shared utilities).

 

Article 2: Lease term

 

The lease term is 14 years and 101 days (from April 1, 2015 to July 14, 2029).

 

Article 3: Property use

 

The property is only used for production, R&D and office of Party B. Party B’s business operation scope is in the lease term. Party B guarantees not to change the use and business operation scope of the property without prior written consent of Party A and audit and approval of relevant departments according to the provisions.

 

Article 4: Property delivery

 

Both parties shall check the leased property on the delivery date of the property and sign the Leased Property Receiving List. The delivery date of the property is the initial day of utilities in the lease term.

 

Article 5: Costs and payment method (as shown in Appendix 2 Schedule of Costs)

 

1. Prepaid costs: contract deposit and utilities deposit

 

(1)                     The contract deposit of RMB [REDACTED]1 is paid by Party B to Party A within 5 days after signing of the Contract.

 

(2)                     The utilities deposit of RMB [REDACTED]2 is paid by Party B to Party A within 5 days after signing of the Contract.

 

(3)                     Party A shall refund the contract deposit and utilities deposit one time to Party B in full free of interest within [REDACTED]3 days after Party B settles all costs (including liquidated damages and overdue fine), changes/moves out of the registered address (if registered in the park), delivers the leased property and its facilities to Party A in intact situation and passes the audit of Party A upon expiry of the lease term or after discharge or termination of the Contract.

 

2. Charge costs: rent, property management fee and utilities by area by month

 

(1)                     The rent is RMB [REDACTED]4/m2/month, totaling RMB [REDACTED]5/month. From

 

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the second year after execution of the Contract, the rent is progressively increased by [REDACTED]6% each year.

 

(2)                     The property management fee is RMB [REDACTED]7/m2/month, totaling RMB[REDACTED]8/month. From the second year after execution of the Contract, the property management fee is progressively increased by [REDACTED]9% each year.

 

(3)                     The shared utilities are [REDACTED]10/m2/month, totaling RMB[REDACTED]11/month. From the second year after execution of the Contract, the shared utilities are progressively increased by [REDACTED]12% each year.

 

(Both parties confirm to charge the shared utilities by month according to “constant unit price*leasable area” in line with the principle of “overcharge not returned and shortage not supplemented.)

 

Note: Progressive increase by [REDACTED]13% means: monthly accounts payable = monthly accounts payable in previous year × (1+[REDACTED]14%).

 

(4)                     Payment (rent, property management fee and shared utilities) provisions:

 

a)                         Payment principle: make payment before use. The payment (billing) cycle is each natural month and the payment deadline is before the [REDACTED]15th day each month, that is the costs of the month (from the first day to last day of the month) are paid off before the [REDACTED]16th day each month.

 

b)                         First payment: Party B pays the contract deposit, utilities deposit and rent-free period costs (if any) one time in full to Party A within [REDACTED]17 working days after signing of the Contract.

 

c)                          If otherwise agreed on the costs in the “rent-free period” and “rent-free vacation period”, such agreement shall prevail.

 

3. Charge the utilities according to actual amount incurred in the month

 

The utilities used by Party B in the lease term are paid to Party A according to the actual consumption of Party B and the charging standards of the water supply and power supply

 

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departments before the [REDACTED]18th day each month.

 

The unit price (standard) reference of the utilities is as follows: (unit: RMB)

 

(1)                     Water charge: RMB[REDACTED]19/t (including the sewage charge RMB[REDACTED]20t for domestic sewage); if discharging industrial sewage in the production or operation, Party B must pay the industrial sewage charge of RMB[REDACTED]21/t (m3) separately to Party A; if the industrial sewage discharged by Party B exceeds Party A’s sewage treatment requirements (capacity), Party B shall be responsible for handling to meet national, provincial and Luogang discharge standards.

 

(2)                     Electricity charge: including kilowatt-hour charges and initial meter charges, with the charging standards as follows:

 

A: Kilowatt-hour charges = electricity price × electricity consumption;

 

(1)                     Charged as RMB[REDACTED]22/KWH for G1 and G2 buildings; charged by peak, flat and valley periods for G3-G12 buildings (RMB[REDACTED]23/KWH for peak period, RMB[REDACTED]24/KWH for flat period and RMB[REDACTED]25/KWH for valley period, unless otherwise stipulated herein) and increased with the initial meter charges of RMB[REDACTED]26/KVA/month installed capacity on such basis;

 

(2)                     Charged by RMB[REDACTED]27/KWH for the well-decorated laboratory on the six floor in G5 building and increased with the shared fees of the exhaust fan on such basis (charged according to the facts);

 

(3)                     Charged by RMB[REDACTED]28/KWH for the blank laboratories on the third floor and fourth floor in G5 building and the first floor in G7 building;

 

B: Initial meter charges = declared amount of electricity utilization capacity × RMB [REDACTED]29/KVA/month; the initial meter charges are collected by month from the lease commencement date of the Contract (from the next day after termination of the rent-free period agreed in the Contract).x The “declared amount” refers to the electricity utilization capacity declared by Party B to Party A according to Party A’s electricity consumption standard (160KVA/1000m2); if

 

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the electricity capacity used actually by Party B after settlement exceeds the standard capacity stipulated by Party A, Party B shall undertake all costs for capacity increase for beyond the above standard capacity.

 

In view of above agreement, the electric capacity declared by Party B to Party A is confirmed as:

 

KVA.

 

Special note: the unit price of above utilities shall be adjusted accordingly according to the adjustment amplitude of relevant departments in case of unit price adjustment by the water supply and power supply departments.

 

4. Cost payment method

 

(1)                     Party B shall remit above costs to the following account designated by Party A:

 

Bank name: [REDACTED]30;

Account name: [REDACTED]31
 Account No.: [REDACTED]32

 

(2)                     Upon receipt of the costs paid by Party B, Party A shall issue corresponding invoices or receipts within [REDACTED]33 working days. Party B shall propose any objection to the total amount of the monthly costs payable to Party A in payment and Party A shall check with Party B within [REDACTED]34 working days.

 

Article 6: Rights and obligations of Party A

 

1                             Charge various costs from Party B according to the Contract.

 

2                             Transform the park environment.

 

3                             Supervise Party B to use the leased property (including but not limited to use of leased property according to the use and decoration according to the agreement) and punish Party B for its misconducts (including but not limited to fire prevention, safety and property management) impairing the property use.

 

4                             Guarantee the rentable property of the leased property, take charge of the management, repair, security, sanitation and hygiene of the public facilities and the environment greening services and guarantee normal water supply and drainage and power supply for Party B. However, Party A is exempted from liability for the matters affecting the property use caused by the water supply and power supply departments, or repair and maintenance deemed necessary by Party A,

 

30  Confidential treatment requested

31  Confidential treatment requested

32  Confidential treatment requested

33  Confidential treatment requested

34  Confidential treatment requested

 

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or emergencies or force majeure.

 

5                             Party A may enter the leased property for emergency rescue and disaster relief, safety maintenance, inspection of facilities and equipment, fire safety inspection, sanitation and hygiene, cost settlement, industrial and commercial inspection and other just causes.

 

Article 7: Rights and obligations of Party B

 

1.                    Require Party A to guarantee the rentable property of the leased property. However, in case of any matter affecting the rentable property and safety of the leased property, Party B shall timely notify Party A and shall not eliminate such matter without the consent of Party A.

 

2.                     Comply with national and government laws and regulations, operate according to law, timely handle the industrial and commercial and tax registration and pay the taxes according to the rules.

 

3.                    Pay the costs to Party A in full and on time, including but not limited to rent, property fee, shared utilities, utilities and various costs agreed in other agreements between both parties (if any).

 

4.                    Use the leased property according to the agreed purpose of the leased property and do not occupy the public areas without permission or affect the other persons to use the public areas.

 

5.                    Do not dismantle or decorate the leased property without permission. Party B shall handle the application procedures according to Party A’s provisions and obtain the written approval of Party A before decorating the property and perform corresponding approval (such as fire prevention, environmental protection and health) according to relevant national and provisional laws and regulations.

 

6.                    Make safety protection according to Party A’s requirements and make rectification according to Party A’s safety guidelines. Party B shall bear all safety accidents for the fault of Party B and Party B’s reasons and resulting losses to Party B, Party A or any third party.

 

7.                    Party B’s pollutants shall be discharged according to relevant national, provincial and municipal standards.

 

8.                    When using the leased property, Party B shall not place the equipment or cargo exceeding the corresponding load on the floors. The stipulated load bearing capacity for Party A’s building is 500 kq/m2.

 

9.                    Party B shall strengthen the education and supervision for its employees and guarantee that Party B’s employees are not engaged in unlawful and criminal activities in the leased property; otherwise, Party B shall bear the resulting losses.

 

10.             Party B shall not sublease the leased property without written consent of Party A.

 

11.             Party B fills in relevant statistical statements regularly on time according to the provisions of

 

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tax, statistics, technology, industry and commerce and other departments.

 

12.             Party B shall timely and accurately fill in relevant statements (such as “conditions of incubated (graduated) enterprises in high-tech business incubator”) according to relevant national, provisional, municipal and local requirements for incubated enterprises in the incubator and has the right to require Party B to keep technical and trade secrets.

 

Article 8: Property decoration, maintenance and safety management

 

1                             The free-rent period of Party B is 181 days from April 1, 2015 to August 31, 2015. The rent is free in this period and Party A only charges the property management fees and shared utilities (i.e. RMB [REDACTED]35/m2 · month) and utilities (charged according to actual consumption of Party B) from Party B.

 

2                             Party A charges the rent, property management fees, shared utilities, utilities and other relevant costs from Party B.

 

3                             Before decoration of the leased property, Party B shall submit the decoration plan and scheme to Party A for recording and make decoration under the supervision of Party A after audit and consent of Party A.

 

4                             Without prior written consent of Party A, Party B and its employees shall not set up advertising boards in and around the leasehold, or use or install the water and electricity exceeding the water meter and ammeter capacity of the leased property arbitrarily.

 

5                             All embedded ancillary facilities increased by Party B in the housing walls shall not be removed in principle when relocating upon expiry of the lease term or after discharge or termination of the lease contract. Party A does not make compensation for above ancillary facilities; otherwise, Party B shall recover the leased housing to the original status before lease and bear all costs before getting back the contract deposit.

 

Article 9: Modification, discharge and termination of contract

 

1                             Modification of contract: The rights and obligations in the Contract may be modified in case of illegal contract content due to changes in national laws and regulations or policies during performance of the Contract or by consensus between both parties. If negotiation fails, both parties agree to handle according to the article of dispute resolution in this agreement.

 

2                             Discharge of contract:

 

(1)                     The Contract meets the stipulated discharge circumstances or is discharged through negotiation by both parties.

 

35  Confidential treatment requested

 

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(2)                     The fundamental objectives of the Contract cannot be realized due to force majeure or situation changes (including but not limited to the changes in laws, regulations or government policies).

 

3                             Termination of Contract:

 

(1)                     The Contract expires or is terminated by consensus between both parties.

 

(2)                     Both parties form an unity of credits and debts due to mutual merger, acquisition and combination.

 

(3)                     The corporate capacity of either party is canceled due to dissolving and liquidation, bankruptcy liquidation and revocation.

 

(4)                     Either party shall notify the other party in writing 60 days in advance to terminate this agreement in advance and the other party shall give a reply within 5 working days upon receipt of notice. Both parties sign a termination confirmation letter on termination of this agreement after consensus on the unfinished matters. Before signing of the confirmation letter, this agreement is still valid.

 

Article 10: Property return

 

1                             Party B shall settle all costs with Party A, vacate the leased property and handle relevant procedures in Party A within 10 days upon expiry of the lease term or after discharge or termination of the Contract (“rent-free vacancy period”). If Party B vacates the property within the 10-day rent-free vacancy period, Party A only charges the property management fees and shared utilities (i.e. RMB [REDACTED]36/m2 · month) and utilities (charged according to actual consumption of Party B) from Party B and the rent is not charged in the 10 days.

 

2                             In property return, Party A will check, verify and confirm the current status of the property. In case of damage to relevant facilities and equipment in the leased property, Party B shall assume compensation liability.

 

Article 11: Liability for breach of contract

 

1                             If Party B fails to pay off the costs overdue in violation of paragraph 3 in Article 7, Party A will make the breach treatment for Party B according to the following provisions:

 

(1)                     Party B shall pay the overdue fine to Party A: overdue fine = costs not paid off overdue × overdue days × 1%;

 

(2)                     Party A has the right to make interpellation and water and power supply stop warning to Party B on the 10th day overdue and has the right to stop water and power supplies of

 

36  Confidential treatment requested

 

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Party B on the 5th day overdue;

 

(3)                     In case of over 20 days overdue, Party A has the right to cancel the Contract independently and require Party B to vacate the property within a time limit.

 

2                             If Party B vacates the property overdue (beyond the rent-free vacancy period) in violation of paragraph 1 in Article 10, Party A will make the breach treatment for Party B according to the following provisions:

 

(1)                     Party B shall pay the liquidated damages to Party A: liquidated damages = contract deposit × overdue days (calculated from next day after expiry of the rent-free vacancy period, i.e. the 11th day upon expiry of the lease term or after discharge of termination of the Contract) ×1%;

 

(2)                     Party A has the right to make interpellation and water and power supply stop warning to Party B on the 2nd day overdue and has the right to stop water and power supplies of Party B on the 3rd day overdue.

 

(3)                     Party B does no longer enjoy the 10-day free-rent privilege agreed in paragraph 1 in Article 10 and shall settle the rent in the vacancy period according to practical fees.

 

(4)                     If Party B fails to vacate the leased property and handle relevant procedures in Party A for 15 days overdue, Party A has the right to locally seal or independently transfer all articles in the leased plant of Party B and Party B shall bear all resulting losses (including but not limited to missing, stolen and damage) and costs (including but not limited to dismantling costs, freight, storage charges and custodian fees).

 

3                             If violating the agreement in item (4) of paragraph 3 in Article 9 herein and unilaterally terminate the Contract in advance, either party of the Contract shall pay the liquidated damages to the observant party and the liquidated damages are calculated as remaining lease term (number of months) of the Contract × amount payable by month × 50%. Less than a month is calculated as a month.

 

Article 12: Renewal of contract

 

1                             Party B may propose renewal to Party A in writing 60 days prior to expiry of the contract term and Party A gives official reply to Party B 10 days prior to expiry of the contract term. If Party A agrees, Party B enjoys the lease priority under equal conditions.

 

2                             Party A has the right to take the new lessee or future user to explore the leased unit 60 days prior to the expiry of the lease term.

 

3                              Both parties shall sign a property lease contract separately on the renewal matters and the rent is implemented according to the price re-agreed by both parties from the lease commencement date.

 

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Article 13: Dispute resolution

 

Any dispute arising from implementation of the Contract shall be resolved by both parties through friendly negotiation; in case of negotiation fails, either party may take a legal action to the people’s court in Party A’s premises.

 

Article 14

 

The Contract takes effect after being signed and sealed by both parties. This agreement is made out in quadruplicate (duplicate), with each party holding two copies (one copy) respectively.

 

Article 15

 

As an inseparable part of the Contract, the appendixes to the Contract have equal legal effect with the Contract.

 

Article 16

 

The unaccomplished matters of the Contract are stipulated by both parties through separate agreement. Any modification, change and supplement to the Contract shall be determined in writing and become an inseparable part of the Contract and have equal legal effect with the Contract after being signed and confirmed valid by the legal representatives or authorized representatives of both parties.

 

(No text below)

 

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Party A: Guangzhou South China Advanced Materials Innovation Park Co., Ltd.

Legal representative (or authorized signatory)

Contact information:

Date of signing:

 

Party A: Guangzhou Weiteng Construction Co., Ltd.

Legal representative (or authorized signatory)

Contact information:

Date of signing:

 

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