Document:

Exhibit 10.17

 

	
Customer’s   No.:
    	
 
    
	
 
    	
 
    
	
GDS’ No.:
    	
 
    

 

Data Center Outsourcing Service Agreement

 

By and between

 

[Customer]

 

And

BEIJING WANGUO CHANG’AN SCIENCE & TECHNOLOGY CO., LTD

北京万国长安科技有限公司

 

Date:                             [    ] China

 

 

	
Customer’s   No.:
    	
 
    
	
 
    	
 
    
	
GDS’ No.:
    	
 
    

 

Data Center Outsourcing Service Agreement

 

Content

 

	
1.
    	
Term of Agreement
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
Terms and Service   Levels
    	
1
    
	
 
    	
 
    	
 
    
	
3.
    	
Price and Payment
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
Report
    	
3
    
	
 
    	
 
    	
 
    
	
5.
    	
Data Center Security   and Management
    	
3
    
	
 
    	
 
    	
 
    
	
6.
    	
Change Control
    	
3
    
	
 
    	
 
    	
 
    
	
7.
    	
Management
    	
4
    
	
 
    	
 
    	
 
    
	
8.
    	
Customer’s   Responsibility
    	
4
    
	
 
    	
 
    	
 
    
	
9.
    	
GDS’ Responsibility
    	
5
    
	
 
    	
 
    	
 
    
	
10.
    	
Guarantees
    	
5
    
	
 
    	
 
    	
 
    
	
11.
    	
Intellectual Property
    	
6
    
	
 
    	
 
    	
 
    
	
12.
    	
Infringement of Intellectual   Property and Compensation
    	
6
    
	
 
    	
 
    	
 
    
	
13.
    	
Liability for Indemnity   and Liability for Breach
    	
7
    
	
 
    	
 
    	
 
    
	
14.
    	
Data of Customer
    	
9
    
	
 
    	
 
    	
 
    
	
15.
    	
Confidentiality
    	
10
    
	
 
    	
 
    	
 
    
	
16.
    	
Termination
    	
11
    
	
 
    	
 
    	
 
    
	
17.
    	
Consequence of   Termination or Expiration
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
Settlement of Disputes
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
Relationships
    	
13
    
	
 
    	
 
    	
 
    
	
20.
    	
Audit
    	
13
    
	
 
    	
 
    	
 
    
	
21.
    	
General Provisions
    	
14
    

 

 

Data Center Outsourcing Service Agreement

 

This Data Center Outsourcing Service Agreement (“Agreement”) is made and entered into in [PLACE], China, as of the date [DD MM YY], by and between the parties as follows:

 

The parties:

 

1.              [  COMPANY NAME  ] ( “Customer”)

 

2.              BEIJING WANGUO CHANG’AN SCIENCE & TECHNOLOGY CO., LTD 北京万国长安科技有限公司( “GDS” )

 

Whereas, Customer needs data center to operate company information system, and desires to engage the data center outsourcing service of GDS; and

 

Whereas, GDS has the capacity and resources to provide data center outsourcing service desired by Customer.

 

THEREFORE, for and in consideration of the agreements set forth below, the Customer and GDS agree as follows:

 

1.              Term of Agreement

 

1.1       This Agreement shall come into effect from the date of the execution by the last one of the parties. The term of Agreement (“Term”) shall be [  ] years, commencing from [DD MM YY] and terminating on [DD MM YY]. The parties shall start negotiations on the extension 60 (sixty) days prior to the expiration date, if the parties cannot reach a consensus, the term shall expire automatically on the expiration date.

 

1.2       Either party shall, subject to Clause 16, be entitled to terminate this Agreement at any time prior to expiration date.

 

2.              Terms and Service Levels

 

2.1       GDS shall provide the services outlined in Appendix 1 “Service of Work” (“SOW”) pursuant to the service level specified in Appendix 2 “Service Level Agreement” (“SLA”).

 

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2.2       GDS shall excise due diligence, perform and manage the service in a professional and skillful way.

 

2.3       GDS shall provide specialized personnel with adequate competence to render service to meet the specified service levels.

 

2.4       GDS constitutes a breach of agreement only if GDS fails to provide the service stipulated in SLA due to GDS’ reasons. In this case, GDS shall conduct an investigation promptly and take all proper measures to prevent the breach occurring again. Besides, GDS shall render a written report on the breach with the corresponding solutions to Customer every week.

 

2.5       GDS shall not be liable for the breach of this Agreement if GDS fails to perform the Agreement as required( including fail to render service specified in SLA) as a result of:

 

·                  Customer fails to fulfill the duties of this Agreement, which are prerequisites for GDS to perform the relevant obligations.

 

·                  Acts of any person from Customer, unless otherwise instructed by GDS.

 

·                  The malfunction or incorrect operation of equipment owned by Customer, unless otherwise caused by GDS. The equipment owned by Customer hereby refers to “The Equipment List” as well as the equipment added by Customer from time to time during the term.

 

·                  Any malfunction of Customer’s software or third party’s software used by Customer, unless otherwise caused by GDS.

 

·                  Force majeure.

 

If GDS fails to perform the obligations as a result of the above reasons, GDS still needs to take necessary and appropriate measures, to the extent possible, to fulfill the duties.

 

3.              Price and Payment

 

3.1       Price-The total price of this Agreement for [  ]-year service is RMB [  ] (SAY RMB [     ] ONLY).

 

3.2       The price details and payment methods for this Agreement refer to the Appendix 3.

 

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4.              Report

 

GDS shall provide the service report specified in SOW of Appendix 1 for Customer.

 

5.              Data Center Security and Management

 

5.1       In order to supervise GDS’ service, the representative of Customer can visit the data center located in [   ] provided Customer gives 1 (one) business day written notice in advance.

 

5.2       To any employee from Customer (including Customer’s representative and any other aid workers) who does not abide by the informed reasonable safety or security rules or regulations or any reasonable requirements, GDS may refuse its visit to the data center.

 

5.3       At the request of GDS, Customer shall inform GDS of the identity of the person who is performing the above duties without delay.

 

6.              Change Control

 

6.1       If Customer wishes to change the services during the term of this Agreement, Customer shall issue a request to GDS. GDS shall submit a statement about the influence on GDS arising from the proposed service change and make an offer for cost change (if any) within 10 (ten) working days after receipt of Customer’s request. If the request is infeasible, GDS shall make an explanation to Customer in the statement to clarify the reasons.

 

6.2       If GDS wishes to change the services during the term of this Agreement, GDS shall issue a request to Customer, including a statement about the influence on GDS arising from the proposed change and the offer for cost change (if any).

 

6.3       After receipt of the statement specified in Clause 6.1 and 6.2, Customer can,

 

1)             Object the statement and/or the offer;

 

2)             Accept the statement and/or the offer and confirm the change to any service as well as the corresponding change to SLA and/or fees; or

 

3)             Terminate or refuse the request for service change.

 

6.4       The request for service change will be deemed to be refused if Customer does not give any response within 20 (twenty) working days after receipt of the request set in Clause 6.2 from GDS.

 

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6.5       If Customer files a challenge to the statement and/or the offer on the grounds of the regulations set in Clause 6.3, the parties shall conduct consultations based on the principle of good faith. Customer can accept or refuse GDS’ statement and/or offer according to the final negotiated outcome.

 

6.6       Any reasonable fees borne by GDS arising from the Customer’s request of service change shall be paid to GDS by Customer within 10 (ten) working days after receipt of the concerning invoice, unless otherwise agreed by the parties.

 

7.              Management

 

7.1       Unless otherwise informed by one party, for this Agreement, the representative of each party shall be regarded as the contact person of this party, and each party shall provide all address information for receiving notice to the designated person of the other party according to this provision.

 

7.2       The parties shall authorize their representatives to:

 

a)             Perform the party’s obligations hereunder on behalf of the party;

 

b)             Act on behalf of the party to handle all matters hereof;

 

c)              Send and receive notifications according to the Agreement;

 

d)             Exercise the rights and give approval according to the Agreement.

 

7.3       If one party wishes to change the designated representative listed in Clause 7.1, the party shall notify the other party in writing at least 5 (five) working days in advance. Then, both parties can meet each other to discuss their opinions on the proposed substitute person.

 

8.              Customer’s Responsibility

 

8.1       Customer shall:

 

1)             Provide necessary help and assistance with the spirit of cooperation for GDS to perform the service, as long as the help and assistance are connected with Customer’s obligations hereunder;

 

2)             Ensure all approval and permission for the business entrusted by Customer have been obtained and remain effective during the term of this Agreement;

 

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3)             Ensure all license, permission and approval for operating Customer’s equipment required by law have been obtained and will remain effective during the term of this Agreement;

 

4)             At its sole cost and risk, undertake the disassembling of the equipment from its original location and packing, transportation and installation of the same in GDS’ data center (GDS shall provide reasonable assistance);

 

5)             Procure insurance in accordance with business practice with respect to all Customers’ equipment trusted and kept in GDS’ data center, and ensure such insurance policies will remain in effect during the term of this Agreement.

 

9.              GDS’ Responsibility

 

9.1       GDS shall:

 

1)             Provide Customer with high-quality data center outsourcing service according to this Agreement to satisfy Customer’s normal business requirements;

 

2)             Safekeep and maintain the equipment trusted and kept in GDS’ data center by Customer;GDS shall be liable for the damages to Customer’s equipment caused by GDS’ equipment defect or GDS’ improper operation or maintenance;

 

3)             Ensure Customer’s equipment can operate well. If any fault or problem is found in the operation process, GDS shall notify Customer without delay and assist Customer to remove the faults timely;

 

4)             Take all justifiable measures to prevent GDS’ creditor from claiming any right to Customer’s equipment.

 

10.       Guarantees

 

10.1                       Each party hereby guarantees to the other party that as of the effective date as follows :

 

1)             The execution and delivery of this Agreement have been duly and effectively authorized;

 

2)             Each Party has all legal capacity, power and authority to execute, deliver and perform its obligations hereunder;

 

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3)             This Agreement does not and will not violate any substantive provisions or regulations of the articles, laws or provisions for or binding upon the parties, nor will it lead to or constitute a breach of the preceding normative documents;

 

4)             No filed, pending or potential litigation, claim, procedure or investigation will have a substantial impact against the object hereof.

 

5)             To fulfill the obligations hereunder, each party has obtained all permits, authorization, consent, permission and approval required by relevant laws and legislations, or conformed with all provisions of laws and regulations applied to these obligations.

 

11.       Intellectual Property

 

11.1                       The parties confirm and agree that:

 

1)             All intellectual property rights of the software owned by Customer or authorized to Customer for use by a third party will remain in full force and effect during the term of this Agreement.

 

2)             All intellectual property rights of the software owned by GDS or authorized to GDS for use will remain in full force and effect during the term of this Agreement.

 

3)             Customer owns all intellectual property rights on Customer’s updated or modified software arising from the use of GDS’ services.

 

4)             Customer or a third party owns all intellectual property rights of Customer’s data.

 

11.2                       Either party shall not infringe any legitimate rights, qualifications or interests contained in each other’s intellectual property rights in any way.

 

11.3                       No provision hereunder shall be interpreted or construed that one party transfers its own or third party’s intellectual property rights to the other party.

 

11.4                       All terms and conditions under Clause 11 shall remain in force and effect after the expiration or termination of this Agreement.

 

12.       Infringement of Intellectual Property and Compensation

 

12.1                       Customer shall indemnify, defend and hold harmless GDS from and against any damages, liabilities, costs and expenses (including reasonable attorneys’ fees

 

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and expenses) arising out of, or relating to any civil, criminal, administrative, arbitral or investigative action, suit or proceeding alleged by any third party against GDS in connection with the use of any software, equipment (whether the same is owned or leased by Customer), information, materials and/or any other resources owned or provided by Customer in GDS’ data center.

 

12.2                       GDS shall indemnify, defend and hold harmless Customer from and against any damages, liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) arising out of, or relating to any civil, criminal, administrative, arbitral or investigative action, suit or proceeding alleged by any third party against Customer in connection with the use of any software, equipment (whether the same is owned or leased by Customer), information, materials and/or any other resources owned or provided by GDS, unless otherwise provided by GDS in accordance with Customer’s instructions or recommendations.

 

13.       Liability for Indemnity and Liability for Breach

 

13.1                       Liability for Indemnity

 

1)             Indemnity for personal injury and property damage—Each party should indemnify the other party for personal injury to any person or losses of any property (excluding the following compensation for infringement) arising out of wilful act or gross negligence of such party during the period of providing or accepting service

 

2)             GDS’ Indemnity for Infringement—In the event that any other third party claims indemnity for infringement against Customer (no matter claimed as the main or secondary infringer) as result of using the software according to the Agreement or acquiring software owned or provided by GDS, GDS shall indemnify Customer for the losses or damages caused by the third party’s claim for infringement indemnity, including the indemnity amount paid to the third party by Customer or reasonable legal costs affirmed by a final and unappealable court judgment or verdict.

 

3)             Customer’s indemnity for infringement—In the event that any other third party claims indemnity for infringement against GDS (no matter claimed as the main or secondary infringer) as a result of using the software

 

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according to the Agreement or acquiring software owned or provided by Customer or storing or processing or using data or information or other materials provided by Customer, Customer shall indemnify GDS for the losses or damages caused by the third party’s claim for infringement indemnity, including the indemnity amount paid to the third party by GDS or reasonable legal costs affirmed by a final and unappealable court judgment or verdict.

 

4)             As for infringement indemnity described in this Clause, the indemnitor shall be given notice timely and granted full rights of defense and reconciliation on liability of indemnity.

 

13.2                       Liability

 

1)             Each party shall indemnify the other party any direct losses or damages arising out of or in relation to indemnitor’s breach of any term of this Agreement.

 

2)             The direct losses or damages in this Clause shall not include: i) the party’s loss of business, loss of profits, loss of sales revenues or loss of goodwill resulted from the other’s breach, no matter existing or anticipated, and ii) any direct losses and additional damages caused by the party who should but fail to take reasonable remedial measures to mitigate the losses after the other’s breach.

 

3)             In the event that Customer terminates the Agreement prior to the expiration of the Agreement (apart from Clause 16), Customer shall give GDS a written notice 3 (three) months in advance and shall pay GDS a termination fee in an amount equal to 100% of the remaining total contract amount.

 

Both parties shall settle the service fees and relevant expenses at the time of the termination. When Customer terminates the Agreement in advance, it shall pay GDS for the services already completed (including the fees  for one-time set-up charge, the initial costs invested by GDS and the fees for the service already provided up to the date of termination). GDS shall refund Customer the fees which have been paid but without service provided.

 

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4)             If either party delays in payment, the party shall pay the other party 0.5% of the sum payable per day from the first day of such breach to the date of payment fully received by the other party.

 

13.3                       Limitation of liability

 

The limitation of liability—the maximum aggregate limitation of liability of either party hereunder (regardless of indemnity caused by default, tort, or any other form) shall not exceed the aggregate amount equal to one month’ service fee.

 

The aggregate limitation of liability above shall not be applicable to the following claims:

 

1)             The liability of indemnity provided by Clause 13.1;

 

2)             Any payment obligations hereunder;

 

3)             One party violates the duties of confidentiality specified by Clause 15;

 

4)             The willful act or gross negligence of one party.

 

13.4                       Consequential damages

 

In no event shall any party be responsible for any consequential damages suffered by the other party arising in providing or accepting the services hereunder, no matter whether the consequential damages can be reasonably foreseen or not when the Agreement comes into force.

 

14.       Data of Customer

 

14.1                       Nothing in this Agreement is aimed to grant GDS intellectual property rights or any other rights for the data of Customer.

 

14.2                       GDS undertakes to comply with all the laws and regulations relating to the storage and use of Customer’s data, including but not limited to the requirement of keeping confidentiality and protecting individual privacy, and comply with any other published, effective and applicable laws and regulations required at any time by Customer in writing.

 

14.3                       Subject to Clause 15.1 e), GDS may disclose Customer’s data within the limitation of the order, requirement or judgment issued by duly authorized law enforcement official or governmental representative or official, or the final and unappealable court judgment; provided that GDS shall notify such officials or their agents, the related governmental institution or the court of the

 

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confidentiality of Customer’s data and notify Customer with respect of the aforesaid.

 

15.       Confidentiality

 

15.1                       Both parties acknowledge and agree that:

 

a)             All confidential information of the disclosing party shall remain as its sole and exclusive property.

 

b)             Each party shall receive the other party’s confidential information with the state of confidentiality. Its employees who access the confidential information shall be limited to those authorized ones who have an absolute need to know the confidential information in order to perform the obligations hereunder. Furthermore, the authorized employees shall be informed with the confidentiality and ownership of such information.

 

c)              Unless otherwise pursuant to Clause 14.3 or with special written consent of the disclosing party, neither party shall or shall authorize any others to disclose, expose or divulge any confidential information of the disclosing party. For the avoidance of doubt, Customer’s express authorization on the disclosure of such information shall be limited only to other operators for the purpose of providing service.

 

d)             One party can only utilize the other party’s confidential information for the purpose of performing the obligations hereunder and other purposes permitted by written agreement signed by both parties.

 

e)              In the event that one party receives any requirement from any third party or entity in respect of disclosing any confidential information (no matter it is in the form of subpoenas or orders issued by a court with jurisdiction or any other governmental department or other forms), and the disclosure of the confidential information is in compliance with the requirements of the applicable law, statute or Stock Exchange regulations, the party may disclose such information but shall be subject to the two conditions bellow: 1) the required disclosing party shall notify this requirement to the other party before disclosure; 2) the required disclosing party shall endeavor to apply for a protection order or seek for other credible

 

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guarantee to ensure the confidential information to be disclosed will be treated as confidentiality.

 

f)               The duty of confidentiality for the confidential information shall survive the termination of this Agreement.

 

g)              No provision herein shall be construed as approval or permission to make, utilize or sell the confidential information or products derived from such confidential information.

 

15.2                       Insofar as it is within the scope of responsibility of GDS’ authorized employees, GDS may disclose Customer’s confidential information to its authorized employees (and permit its authorized employees to access to such information), provided that GDS shall ensure everyone to be disclosed:

 

a)                 Has been informed of GDS’ duty of confidentiality;

 

b)                 Will abide by these obligations just as they are bound.

 

15.3                       Insofar as it is within the scope of responsibility of Customer’s authorized employees, Customer may disclose GDS’ confidential information to its authorized employees (and permit its authorized employees to access to such information), provided that Customer shall ensure everyone to be disclosed:

 

a)             Has been informed of Customer’s duty of confidentiality;

 

b)             Will abide by these obligations just as they are bound.

 

15.4                       Neither party shall disclose any confidential information of the disclosing party to any other persons, except as disclosed to employees or counselors who need to know the information as per their duties.

 

16.       Termination

 

16.1                       GDS may terminate this Agreement through notice to Customer in writing under the following conditions:

 

a)             Customer commits a material breach or default in any of the terms or conditions hereof and fails to remedy the breach or default within 20 (twenty) working days after receipt of written notice of that breach from GDS;

 

b)             Customer is subject to bankruptcy restrictions;

 

c)              Customer fails to pay GDS and the total outstanding amount exceeds one-month service fee.

 

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16.2                       Customer may terminate this Agreement through notice to GDS in writing under the following conditions:

 

a)             GDS commits a material breach or default in any terms or conditions hereof and fails to remedy the breach or the default within 20 (twenty) working days after receipt of written notice of that breach from Customer;

 

b)             GDS is subject to bankruptcy restrictions;

 

c)              GDS breaches the duty of confidentiality specified in Clause 14 and Clause 15, whereupon Customer may terminate the Agreement forthwith.

 

17.       Consequence of Termination or Expiration

 

17.1                       Termination of this Agreement shall not affect or prejudice any other rights incurred prior to the date of termination or the right to take remedial measures.

 

17.2                       Except for the termination specified in Clause 16.1 b) or 16.1 c) hereof, upon the termination of this Agreement, Customer may require GDS to provide reasonable assistance to change the service provider from GDS to Customer itself or to its designated third-party provider. Customer shall compensate GDS all of the reasonable costs and expenses resulted from providing assistance by GDS.

 

17.3                       Clause10, 11, 12, 13, 15, 17, 18 and 21, which by their nature are intended to survive the termination or expiration of this Agreement, shall remain in full force and effect after the expiration or termination of this Agreement.

 

17.4                       In the event that transfer is in need upon the termination of this Agreement, GDS shall accomplish all necessary work reasonably required by Customer after the date of termination and transfer Customer’s equipment, data and system to Customer. Customer may take these over on its own or through its designated third party. Risks associated with Customer’s equipment, data and system shall be transferred to Customer upon the transfer from GDS to Customer (or the third provider designated by Customer). The transfer shall be conducted in the data center of GDS.

 

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18.       Settlement of Disputes

 

18.1                       Before resorting to external dispute settlement authorities for a solution, the parties shall endeavor to resolve disputes arising from this Agreement through friendly consultations, except as resorted to urgent or temporary relief by one party.

 

18.2                       Where the parties fail to reach an agreement on the dispute through negotiations, either party is entitled to submit such dispute to [name of Arbitration Commission] in accordance with arbitration rules then in force. The arbitral award shall be final and binding upon both parties.

 

19.       Relationships

 

19.1                       Nothing in this Agreement shall constitute or be deemed to constitute employer-employee relationship, principal-agent relationship, partnership, joint venture relationship or any other combined relationship through which one party shall be responsible for the act or omission of the other party.

 

19.2                       Neither party shall have the right to:

 

a)             Bind the other party by this Agreement or laws unless otherwise provided herein; or

 

b)             Represent the other party for foreseeable definite purposes not specified herein.

 

20.       Audit

 

20.1                       Providing convenience

 

a)             Both parties agree to facilitate and assist with the other party’s audits (including external audits);

 

b)             GDS agrees to provide all files, books and any other necessary information relating to this Agreement for Customer to conduct audits and reasonably evaluate the contract performance of GDS. GDS agrees that the result of the audit conducted by Customer pursuant to Appendix 1”Service of Work”(SOW) and Appendix 2 “Service Level Agreement”(SLA) of this Agreement can be used as the basis for Customer to evaluate GDS’ performance status hereof;

 

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c)              Neither party has obligations to provide information not reasonably needed in the audits while assisting the other party in audit process (including commercial confidentiality, financial information and intellectual property rights and etc.).

 

20.2                       Notification and Cost

 

Each party shall give the other party at least 10 (ten)-working day prior written notice requesting assistance with audits. Each party shall bear and pay all costs arising out of the audits on its own.

 

20.3                       External audit

 

In the event that one party entrusts or appoints a third institution to conduct audits, the written notice requesting assistance with audits issued to the other party shall cover the appointment of such third institution and defined scope of authorization.

 

21.       General Provisions

 

21.1                       Waiver of rights

 

The failure of one party at any time to exercise the right under this Agreement or take any action against the breach of the other party shall not be regarded or construed as a waiver of such right or such breach against the default party. The specific waiver by one party to the defaulted party’s breach of any provision or breach or default in performance shall not be deemed as a waiver of other provisions or breaches or defaults of the other party. All of these waivers shall be in written form.

 

21.2                       Compensation

 

All compensations provided hereunder are persistent in nature once occur, and shall be separate and independent from other responsibilities of each party and shall survive the expiration or termination of this Agreement.

 

21.3                       Force Majeure

 

a)             Force majeure refers to unforeseeable, unavoidable and insurmountable objective conditions. Where one party fails to perform the Agreement due to force majeure, liability shall be exempted partly or wholly according to the impact of force majeure. A party who fails to fulfill the Agreement due to force majeure shall promptly notify the other party in order to reduce

 

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possible losses to the other party. The party suffering from force majeure shall provide the other party with certifications of relevant departments within 10 (ten) working days from the date when force majeure occurs.

 

b)             The party suffering from force majeure shall take all reasonable measures to reduce the adverse consequences caused by force majeure.

 

21.4                       Non-solicit

 

During the service period of this Agreement and 12 (twelve) months following the expiration or termination of this Agreement, neither party shall directly or indirectly employ the other party’s employees who participate in the performance of this Agreement or are aware of the contents of this Agreement (including the employees who leave office during the above period) unless agreed by the other party; otherwise the party shall indemnify the other party the direct economic losses caused thereby.

 

21.5                       Notice

 

Any notice, consent, request or any other communications hereunder shall be delivered in written form to, or mailed to the following designated recipient address via prepaid postage (or airmails, if sent from or to locations other than the following addresses,), or by fax to the following designated fax number or any other address, fax number or E-mail address designated by recipient.

 

Customer:

Address:

Contact person:

Fax No.:

 

GDS:

Address:

Contact person:

Fax No.:

 

21.6                       Entire Agreement

 

This Agreement together with its appendixes attached hereto shall constitute the entire Agreement between the parties with respect of the subject matter and shall supersede all previous negotiations, oral and written commitments,

 

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agreements, memoranda and communications between the parties relating to the subject matter hereof.

 

21.7                       Originals and Appendixes

 

This Agreement is made in six originals, three for each party. Each original shall have the same legal effect. This Agreement shall become effective since being signed and affixed with company seals by authorized representatives of both parties.

 

The appendixes hereof are: Appendix 1 “Service of Work” (SOW) and Appendix 2 “Service Level Agreement” (SLA). Both appendixes are effective parts of this Agreement.

 

21.8                       Modification

 

This Agreement can only be modified upon written agreement between the parties.

 

21.9                       Application of Law

 

This Agreement shall be governed by and construed in accordance with the laws of the People’s Republic of China.

 

IN WITNESS WHEREOF, the authorized representatives of both parties sign this Agreement as follows:

 

 

	
Representative 

Customer (seal)
    	
Representative 

BEIJING WANGUO CHANG’AN   SCIENCE & TECHNOLOGY CO., LTD北京万国长安科技有限公司

(seal):
    
	
 
    	
 
    
	
 
    	
 
    
	
Authorized   Representative (signature)
    	
Authorized   Representative (signature)
    
	
 
    	
 
    
	
 
    	
 
    
	
Name (Printed)
    	
Name (Printed)
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
Date:
    

 

16Exhibit 10.1

 

MODIFICATION OF LOAN DOCUMENTS

 

THIS MODIFICATION OF LOAN
DOCUMENTS (this "Agreement") is made as of September 30, 2016 by and among IRESI FREDERICK MARKET SQUARE, L.L.C.,
a Delaware limited liability company (“Borrower”), INLAND REAL ESTATE INVESTMENT CORPORATION, a Delaware corporation
(“Initial Term Guarantor”), INLAND RESIDENTIAL PROPERTIES TRUST, INC., a Maryland corporation (“Substitute
Guarantor”, and together with Initial Term Guarantor, “Guarantors”) and PARKWAY BANK AND TRUST COMPANY,
an Illinois banking corporation, its successors and assigns ("Lender").

 

R E C I T A L S:

 

A.             
Lender has previously made a loan to Borrower (the “Loan”) in the principal amount of Forty-Five Million
Seven Hundred Fifty Thousand and 00/100 Dollars ($45,750,000.00) evidenced by that Secured Promissory Note (the “Initial
Note”) dated September 30, 2015 made by Borrower payable to the Lender, pursuant to the terms and conditions of that
Loan Agreement (the “Loan Agreement”) dated as of September 30, 2015 by and between Borrower and Bank and secured
by, among other things, that certain Purchase Money Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture
Filing (the “Deed of Trust”) dated as of September 30, 2015 executed by Borrower to and for the benefit of Lender
and recorded with the Frederick County, Maryland Recorder’s Office on October 6, 2015 in Book 10795, Page 0060, encumbering
the property commonly known as 300 Cormorant Place, Frederick, Maryland 21701 and legally described therein (the “Property”).

C.       The
Loan is further secured by a Guaranty (the "Initial Term Guaranty") dated as of September 30, 2015 from Initial
Term Guarantor to Lender.

 

D.       The
Loan Agreement, the Note (defined below), the Mortgage, the Assignment of Leases, the Initial Term Guaranty, the Substitute Guaranty
(as defined below) and the other documents evidencing, securing and guarantying the Loan, in their original form and as amended,
are sometimes referred to herein as the "Loan Documents").

 

E.       Borrower
has timely and duly exercised the Extension Option described in the Initial Note and desires to amend the Loan Documents in order
to, among other things, (i) document the new reduced Interest Rate, (ii) release the Initial Term Guarantor, (iii) deliver the
Guaranty (“Substitute Guaranty”) of even date herewith from Substitute Guarantor, pursuant to the terms and
conditions of the Loan Agreement to Lender, and (iv) amend the Note to reflect the reduced principal balance of the Loan.

    1 

     

    

AGREEMENTS:

 

NOW, THEREFORE, in consideration
of (i) the facts set forth hereinabove (which are hereby incorporated into and made a part of this Agreement), (ii) the
agreements by Lender to modify the Loan Documents, as provided herein, (iii) the covenants and agreements contained herein,
and (iv) for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

1.              
Maturity Date. The Maturity Date of the Note is extended
to September 30, 2023. Any reference in the Note, the Loan Agreement or any other Loan Document to the Maturity Date shall mean
September 30, 2023. 

2.              
Principal and Interest. 

(a) 
Borrower has previously made certain principal prepayments which
result in a new outstanding principal balance of $27,450,000.00. Borrower shall execute and deliver to Lender that First Amended
and Restated Secured Promissory Note (the “First Amended Note” and together with the Initial Note, the “Note”)
of even date herewith made by Borrower payable to Lender in the reduced principal balance of $27,450,000.00

(b) 
Principal and interest shall be due and payable as set forth in
the First Amended Note.

3.              
Representations and Warranties of Borrower. Borrower hereby
represents, covenants and warrants to Lender as follows:

(a)           
The representations and warranties in the Loan Agreement, the Deed
of Trust and the other Loan Documents are true and correct as of the date hereof. 

(b)           
There is currently no Event of Default (as defined in the Loan Agreement)
under the Loan Agreement, the Note, the Deed of Trust or the other Loan Documents and Borrower does not know of any event or circumstance
which with the giving of notice or passing of time, or both, would constitute an Event of Default under the Loan Agreement, the
Note, the Deed of Trust or the other Loan Documents. 

(c)           
The Loan Documents are in full force and effect and, following the
execution and delivery of this Agreement, they continue to be the legal, valid and binding obligations of Borrower enforceable
in accordance with their respective terms, subject to limitations imposed by general principles of equity.

    2 

     

    

(d)           
There has been no material adverse change in the financial condition
of Borrower, Initial Guarantor, Substitute Guarantor or any other party whose financial statement has been delivered to Lender
in connection with the Loan from the date of the most recent financial statement received by Lender.

(e)           
As of the date hereof, Borrower has no claims, counterclaims, defenses,
or set-offs with respect to the Loan or the Loan Documents as modified herein.

(f)             
Borrower is validly existing under the laws of the State of its
formation or organization and has the requisite power and authority to execute and deliver this Agreement and to perform the Loan
Documents as modified herein. The execution and delivery of this Agreement and the performance of the Loan Documents as modified
herein have been duly authorized by all requisite action by or on behalf of Borrower. This Agreement has been duly executed and
delivered on behalf of Borrower.

4.              
Extension Option Conditions Precedent.
As a conditions precedent to Borrower’s exercise of the Extension Option, Lender’s agreeing to modify the Loan Documents
in connection therewith, and Lender’s acceptance of the First Amended Note, Borrower has agreed and, as applicable, provided
or caused to be provided, the following:

(a)       Lender
shall have received duly executed originals of this Agreement, the First Amended Note, the Substitute Guaranty, which is
in substantially the form attached to the Loan Agreement as Exhibit A, and such other certificates and other documents as Lender
requires (this Agreement, the First Amended Note and the Substitute Guaranty are referred to collectively as the “Modification
Documents”).

(b)       As
of the date hereof and for the term of the Loan, Substitute Guarantor agrees to comply with the following financial reporting requirements:

Substitute
Guarantor is an entity that files a Form 10-K report with the Securities and Exchange Commission. In lieu of the financial reporting
requirements in Section 5.1 of the Loan Agreement, Substitute Guarantor shall provide to Lender within one hundred twenty (120)
days after the end of each of Substitute Guarantor’s fiscal years, Substitute Guarantor’s Form 10-K report filed with
the Securities and Exchange Commission. Provided the Substitute Guarantor’s Form 10-K is filed timely and is available for
viewing on a web site maintained by the Securities and Exchange Commission, then Substitute Guarantor will have been deemed to
satisfy this reporting requirement. Notwithstanding the foregoing, Substitute Guarantor shall at all times be responsible for delivering
such Form 10-K report to Lender within said 120 day time period whether as an electronic file or as a hyperlink to an electronic
file.

    3 

     

    

(c)       Borrower
shall have made principal reduction payments to the Loan to bring the current principal balance to $27,450,000.

(d)       Borrower
shall have provided such information and documents as required by Lender to show a Debt Service Coverage of at least 2.45 to 1.00.

(e)       Lender
has waived the requirement for a new appraisal of the Property.

5.              
Release of Initial Term Guarantor. Upon the execution and delivery
of the Modification Documents, Lender agrees that the Initial Term Guaranty shall be of no further force and effect and Initial
Term Guarantor shall be released from the obligations thereunder.

6.              
Expenses. As a condition precedent to the agreements contained
herein, Borrower shall pay all out-of-pocket costs and expenses incurred by Lender in connection with this Agreement, including,
without limitation, title charges, recording fees, appraisal fees and attorneys' fees and expenses.

7.              
Miscellaneous.

(a)           
This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois.

(b)           
This Agreement shall not be construed more strictly against Lender
than against Borrower or Guarantors merely by virtue of the fact that the same has been prepared by counsel for Lender, it being
recognized that Borrower, Guarantors and Lender have contributed substantially and materially to the preparation of this Agreement,
and Borrower, Guarantors and Lender each acknowledges and waives any claim contesting the existence and the adequacy of the consideration
given by the other in entering into this Agreement. Each of the parties to this Agreement represents that it has been advised by
its respective counsel of the legal and practical effect of this Agreement, and recognizes that it is executing and delivering
this Agreement, intending thereby to be legally bound by the terms and provisions thereof, of its own free will, without promises
or threats or the exertion of duress upon it. The signatories hereto state that they have read and understand this Agreement, that
they intend to be legally bound by it and that they expressly warrant and represent that they are duly authorized and empowered
to execute it.

(c)           
Notwithstanding the execution of this Agreement by Lender, the same
shall not be deemed to constitute Lender a venturer or partner of or in any way associated with Borrower or Guarantors nor shall
privity of contract be presumed to have been established with any third party.

    4 

     

    

(d)           
Borrower, Guarantors and Lender each acknowledges that there are
no other understandings, agreements or representations, either oral or written, express or implied, that are not embodied in the
Loan Documents and this Agreement, which collectively represent a complete integration of all prior and contemporaneous agreements
and understandings of Borrower, Guarantors and Lender; and that all such prior understandings, agreements and representations are
hereby modified as set forth in this Agreement. Except as expressly modified hereby, the terms of the Loan Documents are and remain
unmodified and in full force and effect.

(e)           
This Agreement shall bind and inure to the benefit of the parties
hereto and their respective heirs, executors, administrators, successors and assigns.

(f)             
Any references to the “Loan Agreement”, the "Note",
the "Deed of Trust" or the "Loan Documents" contained in any of the Loan Documents shall be deemed to refer
to the Loan Agreement, the Note, the Deed of Trust and the other Loan Documents as amended hereby. The paragraph and section headings
used herein are for convenience only and shall not limit the substantive provisions hereof. All words herein which are expressed
in the neuter gender shall be deemed to include the masculine, feminine and neuter genders. Any word herein which is expressed
in the singular or plural shall be deemed, whenever appropriate in the context, to include the plural and the singular.

(g)           
This Agreement may be executed in one or more counterparts, all
of which, when taken together, shall constitute one original Agreement.

(h)           
Time is of the essence of each of Borrower's obligations under this
Agreement.

    5 

     

    

IN WITNESS WHEREOF, the
parties hereto have executed this First Modification of Loan Documents as of the day and year first above written.

 

	
        LENDER:

         

        PARKWAY BANK AND TRUST

        COMPANY, an Illinois banking corporation
	 	
        BORROWER:

         

        IRESI FREDERICK MARKET SQUARE,

        L.L.C., a Delaware limited liability company

	 	 	 	 	 
	By:	/s/ Marianne L. Wagener	 	By:	
        Inland Residential Operating

        Partnership, L.P., a Delaware limited

        partnership, its sole member

	Name:	Marianne L. Wagener	 	 	 
	Title:	Senior Vice President	 	By:	Inland Residential Properties Trust,
	 	 	 	 	
        Inc., a Maryland corporation,

        its general partner

	 	 	 	 	 
	 	 	 	By:	/s/ David Z. Lichterman
	 	 	 	Name:	David Z. Lichterman
	 	 	 	Title:	
        V.P., Treasurer &

        Chief Accounting Officer

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	GUARANTORS:

         

        INLAND REAL ESTATE INVESTMENT

        CORPORATION, a Delaware corporation

	 	 	 	 	 
	 	 	 	By:	/s/ Gail P. Gress
	 	 	 	Name:	Gail P. Gress
	 	 	 	Title:	Senior Vice President
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
        INLAND RESIDENTIAL PROPERTIES

        TRUST, INC., a Maryland corporation

	 	 	 	 	 
	 	 	 	By:	/s/ David Z. Lichterman
	 	 	 	Name:	David Z. Lichterman
	 	 	 	Title:	
        V.P., Treasurer &

        Chief Accounting Officer

 

6

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